On 22 September 2025, India moved to GST 2.0. The GST Council (56th meeting, 3 September 2025) replaced the old four-slab system — 5%, 12%, 18% and 28% — with a simpler structure. This guide lists the main changes, item by item, so you can bill at the right rate.
Source: GST Council press release on the 56th meeting, 3 September 2025. This is a category-level summary — the exact rate always depends on the product's HSN code or the service's SAC code, so confirm it before billing.
The new GST slabs at a glance
| Slab | What it is for |
|---|---|
| 0% (Nil) | Basic essentials, life-saving drugs, individual insurance |
| 3% | Gold, silver and jewellery (unchanged) |
| 5% | "Merit" rate — everyday essentials |
| 18% | Standard rate — most goods and services |
| 40% | "De-merit" rate — luxury and sin goods |
The 12% and 28% slabs were removed for almost all goods. Most 12% items moved down to 5%, and most 28% items moved down to 18%.
What got cheaper
| Item | Old GST | New GST |
|---|---|---|
| Televisions (all sizes), air conditioners, dishwashers | 28% | 18% |
| Cement | 28% | 18% |
| Small cars (petrol ≤1200cc / diesel ≤1500cc, up to 4 m) | 28% | 18% |
| Motorcycles and scooters up to 350cc | 28% | 18% |
| Auto parts | up to 28% | 18% (uniform) |
| Buses, trucks, ambulances, three-wheelers | 28% | 18% |
| Packaged namkeen, bhujia, sauces, pasta, instant noodles | 12% / 18% | 5% |
| Butter, ghee, chocolates, coffee, cornflakes | 12% / 18% | 5% |
| Most medicines | 12% | 5% |
| 33 life-saving drugs | 12% | Nil |
| Hair oil, shampoo, toothpaste, toilet soap | 18% | 5% |
| Apparel and footwear up to ₹2,500 | 5% / 12% | 5% |
| Hotel rooms up to ₹7,500 per night | 12% | 5% |
| Gyms, salons, barbers, yoga centres | 18% | 5% |
| Tractors and farm machinery | 12% | 5% |
| Individual life and health insurance | 18% | Nil |
What got costlier
| Item | Old GST | New GST |
|---|---|---|
| Apparel above ₹2,500 per piece | 12% | 18% |
| Larger cars and SUVs | 28% + cess | 40% |
| Motorcycles above 350cc | 28% + cess | 40% |
| Sugary and aerated drinks | 28% + cess | 40% |
Pan masala, gutkha and cigarettes move to the new structure from a date notified separately, so they continue under the old system until then.
What did not change
- Gold, silver and jewellery stay at 3%.
- Restaurant food (non-AC / standalone) stays at 5%.
- Footwear above ₹2,500, mobile phones, laptops and refrigerators and washing machines stay at 18%.
- Hotel rooms above ₹7,500 a night stay at 18%.
How to calculate GST at the new rates
The formula is the same as before — only the rate changes:
GST = price × rate ÷ 100
Price without GST = inclusive price × 100 ÷ (100 + rate)
Example: a TV priced at ₹40,000 before tax.
- Old (28%): GST ₹11,200, total ₹51,200
- New (18%): GST ₹7,200, total ₹47,200 — ₹4,000 cheaper
Use the free GST Calculator to add or remove GST at any rate, with the CGST/SGST split. There is a calculator for each slab too: 5%, 18%, 40% and 3% for gold. For old invoices, the 12% and 28% calculators are still available.
GST 2.0 mein kya badla? (Hinglish)
22 September 2025 se GST mein ab do mukhya slab hain — 5% (zaroori cheezein) aur 18% (standard). Luxury aur nashe wali cheezon par naya 40% slab hai. Gold par 3% pehle jaisa hai. 12% aur 28% wale slab lagbhag khatam ho gaye:
- TV, AC, cement, chhoti car aur 350cc tak ki bike ab 18% par (pehle 28%).
- Namkeen, ghee, makkhan, zyadatar dawaiyan, sabun, toothpaste aur shampoo ab 5% par.
- ₹2,500 tak ke kapde aur joote 5%, uske upar ke kapde 18%.
- Life aur health insurance par ab koi GST nahi.
- Badi car, 350cc se badi bike aur cold drinks ab 40% par.
Frequently asked questions
When did GST 2.0 come into force? On 22 September 2025, for all goods and services except pan masala, gutkha and cigarettes, which move from a separately notified date.
Is there still a 12% or 28% GST slab? For almost all goods, no. Most 12% items moved to 5% and most 28% items moved to 18%, while luxury and sin goods moved to 40%. Invoices issued before 22 September 2025 still show the old rates.
What is the GST on a TV now? 18% for all sizes. Earlier, TVs above 32 inches were taxed at 28%.
What is the GST on cement now? 18%, down from 28%.
What is taxed at 40%? Luxury and sin goods such as sugary and aerated drinks, larger cars and SUVs, and motorcycles above 350cc.
Do I need to change my old invoices? No. GST applies at the rate in force on the date of supply. Supplies made before 22 September 2025 keep the old rate; new supplies use the GST 2.0 rate.
Important: this guide summarises category-level changes for quick reference. Always confirm the rate for your exact HSN/SAC code with the official notification or your tax adviser before billing or filing.