GST 2.0 Rate Structure — Effective September 22, 2025
India's Goods and Services Tax (GST) underwent its most significant reform since 2017 through the 56th GST Council Meeting on September 3, 2025. The revised structure — popularly called GST 2.0 — simplified four slabs (5%, 12%, 18%, 28%) into three primary slabs: 0%, 5%, 18%, and a new 40% rate for luxury and sin goods. All changes are effective from September 22, 2025.
GST Rate Slabs 2025 — Quick Reference
| GST Rate | Category | Examples |
|---|---|---|
| 0% (NIL) | Exempt Essentials | Fresh vegetables, milk, eggs, bread, life-saving medicines, sanitary napkins, education services, individual health & life insurance |
| 5% | Daily-use & Essential Goods | Packaged food, tea, coffee, sugar, medicines, bicycles, solar panels, electric vehicles, economy air travel, soaps, toothpaste |
| 18% | Standard Goods & Services | Mobile phones, laptops, AC, refrigerator, TV, cement, steel, cars (small), restaurants (AC), telecom, banking, software |
| 40% | Luxury & Sin Goods | Cigarettes, pan masala, aerated drinks, luxury cars, high-end SUVs, motorcycles above 350cc, yachts, private jets |
| 3% | Special — Precious Metals | Gold jewellery, silver, platinum, imitation jewellery |
| 0.25% | Special — Gems | Rough & cut diamonds, precious stones |
Key Changes Under GST 2.0 (September 2025)
| Item / Category | Old GST Rate | New GST Rate (w.e.f. 22 Sep 2025) |
|---|---|---|
| Individual Health & Life Insurance | 18% | 0% (Exempt) |
| Air Conditioner (AC) | 28% | 18% |
| Refrigerator / Washing Machine | 28% | 18% |
| LED TV (above 32 inch) | 28% | 18% |
| Cement | 28% | 18% |
| Small Car (petrol <1200cc, <4m) | 28% | 18% |
| Medicines & Drugs (general) | 12% | 5% |
| Soaps, Toothpaste, Shampoo | 18% | 5% |
| Biscuits & Chocolates | 18% | 5% |
| Aerated / Carbonated Drinks | 28% + cess | 40% |
| Luxury Cars / High-end SUVs | 28% + cess | 40% |
| Agricultural Machinery | 12–18% | 5% |
| Group Health Insurance | 18% | 5% |
| Bicycle | 12% | 5% |
| Footwear (≤ ₹1,000) | 12% | 5% |
Frequently Asked Questions — GST Rates India 2025
What are the GST rates in India in 2025?
Under GST 2.0 (effective September 22, 2025), India has four main slabs: 0% for exempt essentials, 5% for daily-use goods, 18% for most standard goods and services, and 40% for luxury/sin goods. Special rates of 3% apply to gold, and 0.25% to rough diamonds.
What is GST on mobile phones in India 2025?
GST on mobile phones (smartphones and feature phones) is 18% under HSN code 8517. This rate is unchanged under GST 2.0.
What is GST on health insurance?
Individual health insurance policies are now fully exempt (0% GST) under GST 2.0 from September 22, 2025. Previously they were taxed at 18%. Group health insurance policies now attract 5% GST.
What is GST on gold jewellery?
GST on gold jewellery, gold bars and coins is 3% under HSN Chapter 71. This special rate is unchanged under GST 2.0.
What is GST on AC / refrigerator in 2025?
GST on air conditioners and refrigerators has been reduced from 28% to 18% under GST 2.0 from September 22, 2025.
What is GST on restaurant food?
5% GST applies on non-AC standalone restaurants and food delivery (Swiggy, Zomato). 18% GST applies on AC restaurants or those with a liquor licence.
Is GST applicable on petrol and diesel?
No. Petrol and diesel are outside the GST framework in India. They are taxed under central excise duty and state VAT separately.