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Next-generation GST reforms, as announced by Prime Minister Shri Narendra Modi from the ramparts of Red Fort on 15th August 2025, represent a strategic, principled, and citizen-centric evolution of a landmark tax framework, which will enhance the quality of life of every last citizen GST Council ap
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The changes in GST rates on services will be implemented from 22nd September 2025. Most goods will also see revised rates from this date, with some exceptions like pan masala and tobacco products.
The GST Council has recommended a shift from the current four-tier structure to a more citizen-friendly two-rate structure. This includes a Standard Rate of 18% and a Merit Rate of 5%, with a special de-merit rate of 40% for a select few goods and services.
GST will be reduced to 5% on many common items such as hair oil, toilet soap, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles. Several food items like packaged namkeens, sauces, pasta, instant noodles, chocolates, and coffee will also see a reduction to 5%.
Yes, GST has been exempted on all individual life insurance policies (term life, ULIP, endowment) and their reinsurance. Similarly, GST is now exempted on all individual health insurance policies, including family floater and senior citizen policies, and their reinsurance.
GST on Ultra-High Temperature (UHT) milk, pre-packaged and labelled chena or paneer will be reduced to NIL. All Indian breads, including chapati, roti, paratha, and parotta, will also have NIL GST rates.
The GST Council recommends that the GSTAT will be operational for accepting appeals before the end of September 2025 and will commence hearings before the end of December 2025.
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