Quick Summary
Key Takeaways GST simplified to a two-slab structure (5% 18%) GST reforms cut taxes on household essentials (soaps, toothpaste, Indian breads) to 5% or Nil boosting affordability Life-saving drugs, medicines reduced from 12% to Nil or 5% making healthcare affordable Two-wheelers, small cars, TVs, ACs, cement cut from 28% to 18% bringing relief to middle-class. Farm machinery, irrigation equipment cut from 12% to 5%, reducing farming costs Tobacco, pan masala, aerated drinks, and luxury
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FAQ :
The revised GST rates and exemptions will come into effect from 22nd September 2025.
The GST will be simplified into a two-slab structure: 5% and 18%. The previous 12% and 28% slabs are being removed, except for specific items like cigarettes and tobacco products.
Taxes on household essentials like soaps, toothpaste, and Indian breads will be reduced to 5% or Nil. Life-saving drugs will be Nil or 5%, and items like two-wheelers, small cars, TVs, ACs, and cement will see rates cut from 28% to 18%, making them more affordable.
Tobacco, pan masala, aerated drinks, and other luxury goods will be taxed at a higher rate of 40%.
GST on farm machinery, irrigation equipment, and bio-pesticides will be reduced from 12% to 5%, helping to lower farming costs.
Yes, GST exemptions will be applied to premiums for individual life and health insurance, including floater plans and senior citizen policies.
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