GST Reduction List : The GST Council of India has approved a major GST rate cut in its latest meeting held on September 4, 2025. The revised GST slabs will come into effect from September 22, 2025. The previous four-slab structure of 5%, 12%, 18 %, and 28% has been simplified to just two slabs – 5% and 18%. A special 40% GST slab will apply only to luxury and harmful goods.
GST Reduction List 2025 - Items That Will Become Cheaper
Here is the complete new GST reduction list of all goods and services that will become cheaper after the new GST rates are applied.
Food & Beverages
| Item Category | Old GST Rate | New GST Rate |
| Chapati, Paranthas | 5% | 0% (Nil) |
| UHT Milk, Paneer, Pizza Bread, Khakra | 5% | 0% (Nil) |
| Butter, Ghee, Dry Nuts, Jam, Ice Cream, Corn Flakes etc. | 18% | 5% |
| Cheese, Other Fats | 12% | 5% |
| Plant based and Soya Milk Drinks | 12-18% | 5% |
| Namkeen, Condensed Milk and Biscuits | 18% | 5% |
Household & Personal Care Items
| Item Category | Old GST Rate | New GST Rate |
| Toothpaste, Tooth Powder, Shampoo | 18% | 5% |
| Soap, Hair Oil, Face Powder | 18% | 5% |
| Feeding Bottles, Utensils, Combs | 18% | 5% |
| Kitchenware, Tableware, Umbrellas | 18% | 5% |
Stationery Items GST Reduction List
| Item | Old GST | New GST |
| Maps, Charts, Globes | 12% | Nil |
| Pencils, Crayons, Sharpeners, Erasers | 5-12% | Nil |
| Exercise Books | 12% | Nil |
Healthcare & Medicines
| Item Name | Old GST | New GST |
| Life-saving Drugs, Medical Equipment | 12–18% | 5% or Nil |
| Thermometers, Diagnostic Kits, Oxygen | 18% | 5% |
| Spectacles, Glucometer, Test Strips | 12% | 5% |
Vehicles & Auto Components New GST Rate List
| Vehicles Category | Old GST | New GST |
| Motorcycles ≤ 350cc | 28% | 18% |
| Small Hybrid Cars | 28% | 18% |
| Electric Vehicles (EVs) | 5% | 5% (No Change) |
| Auto Components | 28% | 18% |
| Petrol/Diesel/CNG Vehicles < 1200cc or < 4000 mm Length | 28% | 18% |
Construction & Appliances
| Item Category | Old GST Rate | New GST Rate |
| Cement | 28% | 18% |
| Air Conditioners, Dishwashers, TVs | 28% | 18% |
| Sewing Machines & Parts | 12% | 5% |
Footwear & Textiles GST Reduction New List
| Item | Old GST | New GST |
| Footwear & Garments | 12% | 5% |
Agriculture & Fertilizers New GST Rate List
| Item Category | Old GST Rate | New GST Rate |
| Tractors (below 1800cc), Agricultural Machinery | 12-18% | 5% |
| Fertiliser Inputs (e.g., Sulphuric Acid) | 18% | 5% |
| Biopesticides & Neem-Based Pesticides | 12% | 5% |
| Tractor Components | 18% | 5% |
Insurance & Hotel Industry
| Item Category | Old GST Rate | New GST Rate |
| Individual Life & Health Insurance | 18% | 0% |
| Goods Carriage Insurance (Third Party) | 12% (with ITC) | 5% (with ITC) |
| Hotel Rooms ≤ ₹7,500 | 12% (with ITC) | 5% (No ITC) |
| Economy Class Air Tickets | 5% | 5% (No Change) |
Beauty & Wellness Services
The GST rate for services like salons, gyms, yoga centres, and barbershops has been reduced from 18% to 5%, but input tax credit (ITC) will not be available under the new rate.
High-Tax Items (40% GST Slab)
Aerated, caffeinated & carbonated drinks (Pepsi, Coke, etc.)
All sugary/flavoured beverages
High-end cars (above 1,200cc and 4,000mm)
Motorcycles above 350cc
Yachts and private jets
Race cars, IPL tickets
Gambling, betting, casinos, race clubs
Tobacco & related products (after COVID-cess ends)
GST Reduction List PDF
Download Complete New GST Rate List PDF from Below link.
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155151&ModuleId=3
Read: GST State Code List
