GST 2025 Simplified: The Goods and Services Tax (GST) Council has announced a major restructuring of India’s indirect tax system, effective September 22. The earlier four-tier structure of 5%, 12%, 18% and 28% has been rationalised into two primary slabs — 5% and 18%. Additionally, a 0% tax bracket for essentials and a 40% slab for luxury or sin goods have been introduced.
This move is expected to provide relief to lower and middle-income groups, while placing heavier levies on luxury and harmful products.
Items exempted from GST under the new structure include:
This reduction directly benefits households and patients, easing the burden on day-to-day living and healthcare.
The 5% category includes:
This adjustment ensures wider affordability of essentials and healthcare materials.
The 18% tax bracket now covers a wide range of items, including vehicles, electronics, and textiles.
Vehicles:
Electronics:
Industrial Goods:
Also Read: GST Benefit for Customers: Amul Reduces Prices on 700 Products
Textiles and Apparel:
Appliances:
This restructured 18% slab brings many items down from the earlier 28%, especially electronics and vehicles, giving relief to consumers.
| Type of Item | Previous Rate | New Rate
| Food staples | 12–18% | 5%
| Electronics | 28% | 18%
| Medicines & insurance | 5–18% | 0–5%
| Sugary drinks | 28%+cess | 40%
| Luxury cars/bikes | 28%+cess | 40%
The highest slab of 40% applies to items categorised as luxury or harmful to health.
Tobacco and Related Products:
Beverages:
Luxury Vehicles and Goods:
Others:
This category ensures that high-end luxury and harmful goods face stricter taxation, discouraging over-consumption and increasing government revenue.
The simplified GST structure benefits common households, students, and patients by making essentials more affordable. It reduces the burden on middle-class families through lower taxes on everyday products and electronics, while maintaining strict taxation on luxury items and sin goods.
This balanced approach is expected to stabilise inflationary pressure, encourage fair consumption, and improve compliance in the GST regime.
India’s GST reform marks a decisive shift toward a simpler, more inclusive taxation model. By reducing the four earlier slabs to two practical ones, along with a zero-tax category and a high-value 40% slab, the government has struck a balance between affordability and accountability.
Essentials like food, stationery, and life-saving drugs have been relieved of tax, directly impacting daily lives. Meanwhile, luxury items, sin goods, and high-end vehicles bear the cost of heavy taxation. This policy reflects a people-first approach while ensuring sustainable revenue for the nation.
Just as the government uses GST reforms to provide financial relief and ease the burden on citizens, Tatvdarshi Saint Rampal Ji Maharaj Ji is offering unparalleled support to the needy through the Annapurna Muhim initiative.
Under this program, He provides food, clothing, education, healthcare, and housing to those in need, while also offering aid to villages affected by floods. So far, the total assistance provided by Saint Rampal Ji Maharaj Ji has exceeded ₹3 crore, reaching numerous villages not only in Haryana but also in Punjab, Uttarakhand, Delhi, and other regions.
For more details about the ongoing humanitarian and spiritual initiatives, visit www.jagatgururampalji.org.
The new GST structure has two main slabs — 5% and 18%, with a 0% slab for essentials and a 40% slab for luxury or sin goods. This simplification replaces the earlier four-tier system of 5%, 12%, 18%, and 28%.
Essential items like stationery (exercise books, pencils, crayons), UHT milk, daily food items (butter, ghee, cheese, dry fruits), and 33 life-saving medicines are exempt from GST.
The 18% slab covers vehicles (small cars, three-wheelers, motorcycles ≤350cc), electronics (air conditioners, TVs >32 inches, monitors, projectors), cement types, coal, and textile items above ₹2,500 per piece.
Luxury and sin goods are taxed at 40%, including pan masala, tobacco products, aerated and caffeinated drinks, luxury cars, motorcycles >350cc, yachts, private vessels, and personal-use aircraft.
The reform makes daily essentials, healthcare products, and household items more affordable, while luxury items and sin goods face higher taxation. This balanced approach benefits lower- and middle-income groups, encourages fair consumption, and supports government revenue.
The Reserve Bank of India (RBI) has released the official list of bank holidays for November 2025, confirming that both… Read More
November 1 turned into a vibrant celebration across India as eight states and the national capital marked their Foundation Day… Read More
As 31 October 2025 approached, the festival of Halloween was set to captivate millions around the globe, not just with… Read More
The West Bengal Council of Higher Secondary Education (WBCHSE) has officially declared the Higher Secondary (HS) 3rd Semester Result 2025-26… Read More
Indira Gandhi Death Anniversary 2025: On 31 October 2025, India marks the 41st death anniversary of Indira Gandhi , the… Read More
Friday morning turned out to be a nightmare for thousands of commuters on the Delhi Metro Red Line, as a… Read More
This website uses cookies.