The GST is one of India’s biggest tax successes whose primary objective is to combine the markets by eliminating most of the indirect taxes with one common structure. The tax since its introduction in 2017 has been reviewed numerous times to meet the evolving economic needs and to reduce burdens on industries.
This paper seeks to analyse the various amendments that have been made in GST regulations bringing it in line with the industry needs and government policies by 2025. These changes relate to improving the standard of taxation, adjusting and improving the slabs, and generally trying to improve the business environment. This blog is a GST rate chart 2025, which shows the GST rates, GST slabs, and GST revised rates to understand how these changes affect commodity prices for sellers and buyers.
GST Structure in India
GST is categorized into four key components:
- Central GST (CGST)
- Levied by the Central Government on the intra-state supply of goods and services.
- The revenue generated is collected by the central government.
- State GST (SGST)
- Levied by State Governments on intra-state transactions.
- The revenue generated is retained by the respective state government.
- Integrated GST (IGST)
- Levied on inter-state transactions and imports.
- Ensures that the central government collects the tax and later apportions the revenue to the concerned states.
- Also applicable to transactions involving imports into India.
- Union Territory GST (UTGST)
- Applicable in Union Territories like Delhi, Chandigarh, Andaman and Nicobar Islands, and others.
- Levied by the respective Union Territory government alongside CGST for intra-UT transactions.
The tax is further divided into the following slabs:
- 0%: Essential goods and services.
- 5%: Items of mass consumption.
- 12%: Standard-rated goods and services.
- 18%: Most goods and services fall under this category.
- 28%: Luxury and demerit goods.
GST Rates and Slabs for 2025
Below is the updated list of goods and services under different GST slabs:
0% GST (Exempted Items)
Here’s the updated table with the additional items you mentioned:
Category | GST Rate |
Essential Food Items | 0% |
Fresh fruits and vegetables | 0% |
Milk, curd, and other dairy products (unbranded) | 0% |
Healthcare | 0% |
Healthcare services | 0% |
Education | 0% |
Educational services | 0% |
Books and Publications | 0% |
Books and printed material | 0% |
Public Transport | 0% |
Agriculture | 0% |
Charitable Activities | 0% |
Cultural Events | 0% |
Funeral Services | 0% |
Livestock | 0% |
Pension and Social Security | 0% |
This now includes your additional items and keeps the 0% GST rate consistent across the table.
5% GST
Here’s an extended list of items under the 5% GST slab:
Here’s an extended list of items under the 5% GST slab:
Category | GST Rate |
Edible Oils | 5% |
Packed Food Grains | 5% |
Coal | 5% |
Life-saving Drugs | 5% |
Small Restaurants (Annual turnover below ₹20 lakhs) | 5% |
Sugar | 5% |
Tea and Coffee (Other than instant) | 5% |
Butter and Ghee (Non-branded) | 5% |
Vegetables (Frozen or canned) | 5% |
Jute Bags | 5% |
Spices | 5% |
Public Transport (Bus fare, etc.) | 5% |
Water Supply (except packaged drinking water) | 5% |
Ayurvedic medicines (non-branded) | 5% |
Footwear (Below ₹500) | 5% |
These items are subject to 5% GST, typically aimed at essential products and services that are widely consumed by the public.
12% GST
Here’s an extended list for the 12% GST slab:
Category | GST Rate |
Processed Food Items | 12% |
Cooking Appliances | 12% |
Butter, Cheese, and Other Dairy Products | 12% |
Apparel Priced Between ₹1,000 and ₹2,500 | 12% |
Hotel Rooms with Tariffs Between ₹1,000 and ₹7,500 | 12% |
Ice Cream and Other Dairy Products | 12% |
Sweets and Confectionery | 12% |
Footwear Priced Between ₹500 and ₹1,000 | 12% |
Cosmetics and Toiletries | 12% |
Electronics (like laptops, mobile phones, etc.) | 12% |
Furniture and Furnishings | 12% |
Health Supplements | 12% |
Gym Services | 12% |
Packaged Snacks | 12% |
These items fall under the 12% GST slab, which includes many essential consumer goods and services that are widely consumed and used by the middle class.
18% GST
Here’s an extended list with more items under the 18% GST slab:
Category | GST Rate |
Electronics (Refrigerators, Washing Machines) | 18% |
Smartphones and Laptops | 18% |
Banking Services | 18% |
Restaurant Services (Non-AC and AC, except luxury hotels) | 18% |
Apparel Priced Above ₹2,500 | 18% |
Cosmetic Surgery | 18% |
Private Healthcare Services (non-essential) | 18% |
Toys and Games | 18% |
Sports Equipment | 18% |
Airline Services (Economy Class) | 18% |
Construction Materials | 18% |
Electrical Appliances (Ceiling Fans, Lights) | 18% |
Luxury Watches and Jewelry | 18% |
Business Consulting Services | 18% |
Entertainment and Theme Park Services | 18% |
Hotel Rooms with Tariffs Above ₹7,500 | 18% |
Books (Other than those exempted) | 18% |
Movie Tickets | 18% |
Legal and Professional Services | 18% |
Tobacco and Tobacco Products | 18% |
These items are subject to 18% GST, which applies to a broad range of goods and services, including consumer electronics, professional services, entertainment, and construction-related products.
28% GST
Here’s an extended list for the 28% GST slab:
Category | GST Rate |
Luxury Cars | 28% |
Tobacco and Related Products | 28% |
Aerated Drinks | 28% |
Hotel Rooms with Tariffs Exceeding ₹7,500 | 28% |
High-end Electronics (Large-screen Televisions) | 28% |
Perfumes and Deodorants | 28% |
Jewelry and Precious Stones | 28% |
Luxury Watches | 28% |
Private Jets and Helicopters | 28% |
Cigars and Cigarettes | 28% |
Catering Services (Luxury Hotels) | 28% |
Marmalade, Jams, and Preserves (Premium Brands) | 28% |
Branded Clothing and Accessories (Luxury) | 28% |
High-end Furniture | 28% |
These items fall under the 28% GST slab, which generally applies to luxury goods, demerit goods, and certain high-end products and services.
Recent GST Revisions in 2025
- Increase in GST for Online Gaming: Online gaming services are now taxed at 28% under the demerit category, considering its addictive nature and social implications.
- Reduction in GST for EV Components: To promote electric mobility, GST on electric vehicle (EV) batteries has been reduced from 18% to 5%.
- Healthcare Relief: Exemption extended to diagnostic kits and specialized medical devices.
- Hospitality Adjustments: GST on mid-segment hotel rooms reduced from 18% to 12% to boost tourism.
Impact of GST Revisions
The revised GST rates aim to strike a balance between revenue generation and economic growth. Some key impacts include:
- Improved Compliance: Multi-factor authentication for portal access and stricter checks will reduce fraud and enhance security across all industries.
- Tax Rate Revisions: GST changes on luxury goods and tobacco could raise prices, while revisions in agriculture and small businesses provide relief, making these sectors more efficient.
- Healthcare: The exemption of gene therapy treatments from GST will increase accessibility to life-saving treatments.
- E-Commerce: Exemptions for payment aggregators will lower compliance costs and simplify digital transactions.
- Luxury Goods: Increased taxes on luxury cars and high-end electronics could decrease demand in these segments.
- Consumer Goods: Price hikes in processed foods and apparel could affect consumer budgets, while reductions in agricultural products will benefit producers.
- Administrative Efficiency: New rules on E-Way Bills and document tracking will enhance tax collection and logistics efficiency.
GST Compliance in 2025
With technology-driven reforms, GST compliance has become more streamlined:
- Increased Digitalization
- Impact: With the push for digital invoices and the integration of e-invoicing systems, businesses will be required to generate invoices electronically, streamlining the process and reducing errors.
- Sector Affected: All sectors, particularly those with high transaction volumes.
- Multi-Factor Authentication (MFA)
- Impact: The introduction of multi-factor authentication for accessing GST portals will enhance security, preventing unauthorized access and fraud.
- Sector Affected: All businesses filing GST returns.
- E-Way Bill System
- Impact: The E-Way Bill system will be more stringent, with rules for validity periods and required documents becoming more rigid to track the movement of goods and prevent evasion.
- Sector Affected: Logistics, transport, and businesses involved in the movement of goods.
- Revised GST Filing Deadlines
- Impact: GST filing deadlines will be strictly enforced, with penalties for late submissions. This aims to ensure timely tax collection and compliance.
- Sector Affected: All businesses.
- Penalty for Non-Compliance
- Impact: Stricter penalties will be imposed for non-compliance, including higher fines for incorrect returns or failure to provide accurate details, which will encourage better adherence.
- Sector Affected: All businesses, especially small enterprises.
- Mandatory HSN Codes for All Goods and Services
- Impact: Businesses will be required to use HSN codes for better categorization of products and services, ensuring accurate tax rates are applied and compliance is easier.
- Sector Affected: Retail, wholesale, manufacturing.
- Automated GST Returns
- Impact: Automation in return filing (including GST-3B and GST-1) will be implemented, reducing manual errors and increasing the efficiency of the process.
- Sector Affected: All businesses, especially those with a large volume of transactions.
- GST Audit and Scrutiny
- Impact: The GST audit process will be more thorough, with businesses facing stricter scrutiny and verification of their returns and financial statements.
- Sector Affected: Large enterprises, high-risk industries.
- Advanced Data Analytics
- Impact: The GST network will incorporate advanced data analytics to detect discrepancies and potential tax fraud, leading to more efficient compliance monitoring.
- Sector Affected: All businesses, especially those with complex transactions.
- GST Simplification for Small Businesses
- Impact: Simplified GST return formats and exemptions for small businesses with turnovers below ₹20 lakhs will reduce the compliance burden for smaller players.
- Sector Affected: Small and medium-sized enterprises (SMEs).
Conclusion
The structure of the goods and services tax or GST in India is dynamic, and has continued to adapt to needs of development of the country economy. The proposed changes for 2025 are the result of its socio-energetic policy aimed to accommodate business development, sustainability improvement, and tax regulation simplification. These updates are all in a bid to make the complex tax system easier and more clear to firms as well as the user end.
One of the key ingredients in running any venture currently is to remain updated on any revised measures on GST; this is due to the fact that non-compliance is punishable by law and secondly because new regulations may open up for new opportunities for the business. By learning and updating these new areas in GST rates it is probable to adjust the business processes to minimize any complications that may rise from the taxes.
For all your GST issues which include rates, changes or revisions and other compliance issues, you can consult The Legal Dost today!
GST Composition Scheme (FAQ’s)
GST is an abbreviation for Goods and Services Tax and is actually a singular tax system that has replaced multiple indirect taxes in India. Through it, taxation becomes easy, there are few layers of taxation and it enhances business viability.
GST in 2025 is categorized into five main slabs:
0%: Necessities: food products particularly fresh fruits and vegetables, unprocessed dairy products, health and education.
5%: Basic need products that are H booked products and includes products such as edible oil, food grains in packed forms and life saving pharmacy products.
12%: Soft drinks, juices, canned goods, cooking utensils, kettles, tins and pots, and two-star to three-star hotel accommodations.
18%: Namely consumer electronics, legal services, and restaurant services.
28%: They include branded gadgets such as electronics, luxury vehicles as well as branded clothing.
Key changes include: Many especially web based games: It is now 28% because it is a luxury/demerit good.
EV Batteries: They subjected the GST from 18% down to 5% in order to promote sustainability.
Healthcare Relief: Medical diagnostic kits and all the medical instruments which fall under a special category of medical devices have been kept out of the GST ambit. Tourism Boost: Prices for mid-segmented hotel rooms were lowered by lowering the GST tax from 18% to 12%.
Small businesses benefit from:
Easy return forms that were easy to fill.
Small business turnover below ₹20 lakhs out of the purview of new norms.
Reduced compliance costs due to the participants’ adherence to plain language and fewer legal jargons.
Businesses can stay compliant by: Compliance to GST returns filing on time depending on the adopted GST filing solutions. HSN codes for proper classification of products and services are being incorporated. Laying down steps towards making less use of paper and avoiding muddled processes through e-invoicing
Commission noncompliance results in severe sanctions:
Higher penalties for filing errors and extended filing deadlines.
Extra attention paid on whether they pass during audit exercise.