Revised GST Slab Rates in India F.Y. 2025-26 by Council
Revised GST Slabs in IndiaGST is the most significant tax reform in the country. It unified the taxation structure and replaced the multiple indirect taxes of the previous regime. The GST Council meets regularly to review and revise GST rates on various goods and services.
In the 56th GST Council meeting held on September 3, 2025, a major overhaul was approved. The Council simplified the structure by reducing it to two main slabs, 5% and 18% along with a new 40% slab for luxury and sin goods. This move aims to bring clarity, reduce complexity, and ease compliance for businesses and consumers.
The finance minister, Nirmala Sitharaman, along with the panel of ministers, also emphasised merging overlapping slabs and ensuring affordability for essential items
56th GST Council Meeting Update
In the 56th GST Council meeting, the central government announced the removal of 12% and 28% GST rates and shifted several goods to the 5% and 18% slabs to provide relief to consumers.
Next-gen GST Reforms
Effective from September 22, 2025, the new GST structure will make several essential items cheaper for households and rationalise rates on automobiles, appliances, and other consumer goods. Under the revised structure:
5% slab will cover essentials like food products, medicines, milk-based items, EVs, and insurance. 18% slab will apply to standard goods like electronics, cement, vehicles, and apparel. 40% slab will be imposed on luxury and sin goods such as aerated drinks, and premium cars.
Key ItemsCurrent GST RateGST Rate From 22nd September 2025Business Class Travel12%5%Hotel Below INR 7,00012%5%Petrol/Diesel Cars (<1200cc)28% + 1-3% Cess18%Motorcycle Below <350cc28%18%Auto Components18-28%18%Footwear Below INR 100012%5%Clothes Above INR 100012%5%Ghee12%5%Health Insurance18%5% or NilLife Insurance18%5% or NilMedical Equipment12%5%Cement28%18%Tractor12%5%Water Sprinkler12%5%Air-conditioning machines28%12%TVs~32 inch28%12%Ultra-High Temperature (UHT) milk5%NilPrepackaged and labelled chena or paneer5%NilHandicrafts12%5%Other drugs and medicines12%5%Buses, Trucks and Ambulances28%18%Gyms, Salons, Barbers, Yoga Centres, etc18%5%All Auto Parts28%18%