The Ministry of Finance has announced revised Integrated Goods and Services Tax (IGST) slabs for inter-state supplies of goods, effective from 22nd September 2025. These changes replace the previous rates and introduce new categories for taxation. Essential items like medicines and food staples will remain at 5%, while processed foods and manufactured goods will generally fall under the 18% slab. Luxury and non-essential items will continue to face higher rates of 28% and above, with specific goods taxed at 40% or concessional rates.
The Ministry of Finance has issued Notification No. 9/2025-Integrated Tax (Rate), revising the Integrated Goods and Services Tax (IGST) rates applicable on inter-State supplies of goods across India. The changes, notified on September 17, 2025, replace the earlier framework set under Notification No. 01/2017-Integrated Tax (Rate) dated June 28, 2017.
Key Highlights of the New IGST Structure
According to the notification, different categories of goods will now attract tax under the following
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FAQ :
The revised IGST rates for inter-state supplies of goods come into effect on 22nd September 2025.
Essential commodities such as live horses, dairy products, dried legumes, rice, wheat, spices, edible oils, medicines, and renewable energy devices will attract a 5% IGST.
Processed food items, packaged consumer goods, industrial chemicals, electrical appliances, textiles beyond the basic threshold, and most manufactured products will be taxed at 18% IGST.
Luxury goods and items deemed non-essential will be taxed at 28% IGST. Specific goods under Schedule III, primarily sin goods, will be taxed at 40% IGST.
Yes, other concessional rates include 3% for precious metals, 0.25% for rough diamonds, and 1.5% for specified goods under Schedule VI.
The revised rates aim to simplify the indirect tax structure, balance government revenue, and ensure affordability for consumers, particularly for essential goods.