The Government of India has confirmed a major round of GST rate reductions across several goods and services, following the recommendations of the 56th GST Council meeting held on 3 September 2025. As per the official reply in Lok Sabha, GST rates have been slashed from 28% to 18%, 18% to 12% or 5%, and 12% to 5% or even Nil for various categories of items, marking one of the most significant rationalisations since the GST regime began.
The Ministry of Finance stated that these changes stem from a long-running review of India's GST structure. A Group of Ministers (GoM) on Rate Rationalisation, formed after the GST Council's 45th meeting in 2021, examined issues such as inverted duty structures, classification disputes, and the need for simpler compliance. Another GoM, constituted in September 2024, reviewed the tax structure for life and medical insurance, where high GST rates had been a persistent industry concern. Both groups submitted their reports to the Council earlier this year.
According to the government, the 2025 GST rate cuts have a multi-sectoral and citizen-focused approach. They are aimed at easing the cost burden on households, boosting demand, and improving the ease of doing business, particularly for small traders and MSMEs. The government also highlighted that this rationalisation is expected to lower disputes, simplify classification, and ultimately enhance GST revenue by supporting economic activity.
Official copy of the data has been attached
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