One crucial tax reform in India is the Goods and Services Tax (GST), introduced to simplify indirect taxes. The GST Council reviews and updates the rules annually to align with the needs of the economy, industry, and government policies. In 2025, several GST updates have been announced, including changes to tax slabs, compliance regulations, and exemptions.
As an entrepreneur, professional, or customer, it is essential to stay informed about these changes. In this blog, we will discuss the new GST rules, the 2025 updates, and provide a complete list of the updated GST rates.
Key Highlights of the New GST Rules 2025
Category |
Item |
Old GST Rate |
New GST Rate |
🛒 Daily Essentials |
Hair Oil, Shampoo, Soap, Toothpaste, Shaving Cream |
18% |
5% |
Butter, Ghee, Cheese, Dairy Spreads |
12% |
5% |
|
Namkeens, Bhujia & Mixtures |
12% |
5% |
|
Utensils |
12% |
5% |
|
Feeding Bottles, Baby Napkins & Diapers |
12% |
5% |
|
Sewing Machines & Parts |
12% |
5% |
|
🌾 Agriculture |
Tractor Tyres & Parts |
18% |
5% |
Tractors |
12% |
5% |
|
Bio-Pesticides & Micro-Nutrients |
12% |
5% |
|
Drip Irrigation & Sprinklers |
12% |
5% |
|
Soil Prep & Harvesting Machines |
12% |
5% |
|
🏥 Healthcare |
Health & Life Insurance |
18% |
Nil |
Thermometers |
12% |
Nil |
|
Medical Oxygen |
12% |
5% |
|
Diagnostic Kits & Reagents |
12% |
5% |
|
Glucometers & Test Strips |
12% |
5% |
|
Corrective Spectacles |
12% |
5% |
|
📚 Education |
Maps, Charts & Globes |
12% |
Nil |
Pencils, Crayons, Sharpeners, Pastels |
12% |
Nil |
|
Notebooks & Exercise Books |
12% |
Nil |
|
Erasers |
5% |
Nil |
|
🚗 Automobiles |
Petrol & Diesel Hybrid Cars (within limits) |
28% |
18% |
3-Wheelers |
28% |
18% |
|
Motorcycles (up to 350cc) |
28% |
18% |
|
Goods Transport Vehicles |
28% |
18% |
|
💻 Electronics |
Air Conditioners |
28% |
18% |
Televisions (above 32”) |
28% |
18% |
|
Monitors & Projectors |
28% |
18% |
|
Dishwashing Machines |
28% |
18% |
Business Process Reforms.
The new GST rules come with new rates and some advantages in the process.
- Registration of GST is automatic within three working days.
- Streamlined refund system and zero-rated supplies.
- Greater protection against fake invoicing and misuse of input tax credit.
Why These New GST Updates are Important.
Such a change in the new GST rate structure implies:
- Reduced the domestic costs of living.
- Low-cost healthcare and education.
- Better assistance to farmers and small businesses.
- Economic growth and an increase in consumer demand.
Final Thoughts
The new GST updates for 2025 signify that the government has attempted to simplify the taxation system, making it fair and beneficial to all spheres of society. The list of new GST rates makes certain items more affordable and industries more competitive, thereby guaranteeing economic development. A complete and comprehensive list of new GST rates by sector can be viewed at the official GST portal.