Table of Contents
- Introduction
- GST Rate Structure in India (2025)
- Recent Updates in GST Rates (2025)
- GST Slab-Wise List of Items (2025)
- Worked Examples (with Explanation)
- Purpose of GST Rates in India
- Conclusion
- Frequently Asked Questions (FAQs)
Introduction
GST India 2025: The Goods and Services Tax (GST) is India’s unified indirect tax system, replacing multiple earlier taxes like VAT, excise duty, and service tax. Introduced to simplify taxation and improve compliance, GST has become the backbone of India’s indirect tax structure.
In 2025, the GST Council refined several slab rates to balance revenue needs with consumer affordability. This guide provides the latest slab-wise GST rates, recent increases and reductions, and an easy breakdown of items under each tax rate.
GST Rate Structure in India (2025)
| GST Rate (Slab) | Examples of Items | Explanation |
|---|---|---|
| 0% (Nil GST) | Milk, curd, fresh fruits, unbranded flour, children’s books, salt | Essential goods/services kept tax-free to ensure affordability for daily needs. |
| 5% | Sugar, tea, edible oils, domestic LPG, footwear (< ₹500), life-saving medicines, packaged paneer, sweets, agarbatti | Basic necessities taxed at a low rate to stay affordable while generating some revenue. |
| 12% | Butter, ghee, mobile phones, packed coconut water, processed foods (jams, pickles, sauces), umbrellas | Non-essentials with wide consumption; moderate rate balances affordability and revenue. |
| 18% (Standard) | Soap, toothpaste, hair oil, capital goods, computers, pasta, ice cream, soups, toiletries | Standard rate for most goods/services; supports stable revenue collection. |
| 28% (Luxury & Sin) | Luxury cars, premium bikes, ACs, refrigerators, washing machines, cigarettes, aerated drinks | High-end/harmful products; highest slab with possible additional cess to discourage consumption. |
| 3% (Precious Metals) | Gold, silver, pearls, imitation jewellery, polished diamonds, semi-precious stones | Concessional rate to support jewellery trade while ensuring traceability. |
| 0.25% (Precious Stones) | Rough diamonds, uncut semi-precious stones, synthetic gemstones | Ultra-low rate to formalize invoicing in traditionally informal segments. |
Note: Certain goods in the 28% slab may also attract a Compensation Cess as notified (e.g., luxury cars, tobacco, aerated beverages).
Recent Updates in GST Rates (2025)
Items with Increased GST Rates
- Scrap and polyurethanes: 5% → 18%
- Pens: 12% → 18%
- Metal concentrates and ores: 5% → 18%
- Recorded media, reproduction, and print: 12% → 18%
- Packing containers and boxes: 12% → 18%
- Broadcasting, sound recordings, licensing: 12% → 18%
- Printed materials: 12% → 18%
- Railway goods and parts (Chapter 86): 12% → 18%
Items with Reduced GST Rates
- Vehicles with retrofitting kits for disabled individuals: 5%
- Cancer treatment drug (Keytruda): 12% → 5%
- Goods sold at Indo-Bangladesh border (as notified): NIL IGST
GST Slab-Wise List of Items (2025 Update)
✅ GST at 0% (Nil Rate)
Examples: Milk, eggs, curd, lassi; educational and health services; fresh vegetables and unpacked food grains; unbranded atta/maida, paneer, natural honey; children’s drawing and colouring books; salt, jaggery, prasad; traditional broom (phool bhari jhadoo).
✅ GST at 5%
Examples: Sugar, packed paneer, tea, edible oils; domestic LPG, PDS kerosene; coal, raisins, skimmed milk powder; footwear (below ₹500), infant milk food; apparel (below ₹1,000), fabrics, coir mats; life-saving medicines; Indian sweets (mithai), agarbatti.
✅ GST at 12%
Examples: Butter, ghee, packaged food items; almonds, fruit juice, coconut water (packed); mobile phones; ready-to-eat vegetable preparations; processed fruits, jams, jellies, chutneys, pickles; umbrellas.
✅ GST at 18% (Standard Rate)
Examples: Hair oil, toothpaste, soap; capital goods and industrial intermediaries; ice cream, pasta, soups, corn flakes; toiletries, printers, computers.
✅ GST at 28% (Luxury & Sin Goods)
Examples: Small cars (with 1–3% cess); premium motorcycles (with 15% cess); consumer durables like ACs, refrigerators, washing machines; luxury cars; cigarettes and aerated drinks (often with additional cess).
✅ GST at 3% (Precious Metals)
Examples: Gold, silver, pearls; diamonds (worked, not mounted or set); imitation jewellery; precious and semi-precious stones.
✅ GST at 0.25% (Precious Stones)
Examples: Non-industrial diamonds; unprocessed semi-precious stones; synthetic/reconstructed precious stones.
Worked Examples (with Explanation)
| Scenario | Applicable GST Slab | Explanation |
|---|---|---|
| Buyer purchases 10 kg of unbranded wheat flour. | 0% (Nil) | Unbranded/unpacked staples are exempt to keep essentials affordable. |
| Family orders a 14.2 kg domestic LPG cylinder. | 5% | Domestic LPG is a basic necessity and taxed at a concessional rate. |
| Customer buys a mid-range mobile phone. | 12% | Mobile phones are taxed at 12% to balance mass consumption and revenue. |
| Firm purchases office computers and printers. | 18% | Most IT hardware and peripherals fall under the standard rate. |
| Buyer purchases a luxury car. | 28% + Cess (as notified) | High-end vehicles attract the highest slab plus compensation cess. |
| Jeweller sells gold jewellery. | 3% | Precious metals carry a special concessional rate to support the trade. |
| Exporter trades rough diamonds. | 0.25% | Uncut/rough stones are taxed minimally to formalize invoicing and trade. |
| Purchase of pens (2025 rate revision). | 18% | Rate moved from 12% to 18% as per latest revisions. |
| Hospital procures Keytruda (cancer drug). | 5% | Rate reduced from 12% to 5% to improve affordability for critical treatment. |
Purpose of GST Rates in India
- 0% Slab: Safeguards the affordability of essential goods/services.
- 5% Slab: Promotes access to basic necessities and life-saving products.
- 12% Slab: Balances consumer need and revenue generation.
- 18% Slab: Standard rate covering most supplies for stable collections.
- 28% Slab: Targets luxury and sin goods with higher taxation and possible cess.
Conclusion
The GST rates in India (2025) aim to balance affordability with efficient revenue mobilization. Essentials remain tax-free or low-taxed, while luxury and sin goods face higher rates. Businesses should stay updated on slab changes for accurate pricing, invoicing, and ITC compliance; consumers can use this guide to make informed purchase decisions.
Frequently Asked Questions (FAQs) on GST Rates in India (2025)
Q1. What are the current GST rates in India (2025)?GST slabs are 0% (Nil), 5%, 12%, 18%, and 28%, with special rates of 3% (precious metals) and 0.25% (precious stones).
Q2. Which items are exempt from GST in 2025?Essentials like milk, curd, fresh vegetables, food grains, many educational and healthcare services, and certain children’s books are exempt.
Q3. Which items fall under the 5% GST slab?Sugar, tea, edible oils, domestic LPG, footwear (below ₹500), packaged paneer, and many life-saving medicines are in the 5% category.
Q4. What is the highest GST rate in India?28%, typically on luxury/sin goods like cars, ACs, refrigerators, and cigarettes (often with additional compensation cess).
Q5. What is the GST rate on gold and jewellery in 2025?Gold and silver attract 3% GST; diamonds and semi-precious stones in rough/unprocessed form are taxed at 0.25%.
Q6. Has GST increased for any items in 2025?Yes. Items such as pens, scrap, metal concentrates, packing materials, printed media, and certain broadcasting/licensing services moved to 18%.
Q7. Has GST been reduced for any items in 2025?Yes. Keytruda (cancer drug) is at 5%; vehicles retrofitted for persons with disabilities are at 5%; specific Indo-Bangladesh border supplies may be NIL IGST as notified.
Q8. Why are GST slabs different for different items?Slabs reflect necessity and social impact: essentials have lower/zero GST; luxury/sin goods have higher GST to deter overconsumption and fund revenue.
Q9. What is the GST rate on mobile phones in 2025?12% on mobile phones.
Q10. Where can I find the complete GST item list for 2025?Refer to official notifications on the GST Council/CBIC portals. This article summarises the slabs and typical items for quick reference.
