GST Rate-Cut: The 56th Goods and Services Tax (GST) Council meeting, led by Finance Minister Nirmala Sitharaman on Wednesday, approved significant changes to the GST rate structure. The new GST rates, aimed at offering relief to the middle class, households, and businesses, will be implemented from September 22, 2025.
After the meeting, the Union Finance Minister said, “In common man and middle class items, there is a complete reduction.” There will now be only three GST slabs — 5%, 18% and 40%. The 12% and 28% slabs have been abolished. Among the key decisions was the reduction of GST on key household items like Ultra-high temperature milk, chena, all Indian bread, and paneer, from 5% to nil. Individual Health & Life Insurance, maps, charts, globes, pencils, exercise books, erasers, notebooks, sharpeners, crayons, and pastels will see 0% GST.
Hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles will now attract a 5% GST. On the other hand, items on which GST has been reduced from 12% or from 18% to 5% are Namkeen, bujjiya, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, and ghee.
Reduction of GST from 12 to 5% on renewable energy devices and parts for their manufacture, such as biogas plants, windmills, wind-operated electricity generators, waste-to-energy plants, devices, PV cells, whether or not assembled in modules or made up in panels, solar cookers, solar water heaters, and systems, and so on.
Electronic goods which will see a reduction from 28% to 18% are Air conditioning machines, TVs (over 32 inches), Dishwashing machines, small cars, and motorcycles equal to or less than 350 cc. Buses, trucks, three-wheelers, and ambulances will also attract an 18% GST.
The GST Council has approved significant reforms today. These reforms have a multi-sectoral and multi-thematic focus, aimed at ensuring ease of living for all citizens and ease of doing business for all: Office of Finance Minister Nirmala Sitharaman pic.twitter.com/7yg9zELOvs
— ANI (@ANI) September 3, 2025
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