The Government has reduced GST on several items across different categories. GST reducing rate will be effective from 22th September 2025.
On 3 september 2025, In a press conference held in New Delhi, Finance Minister Nirmala Sitharaman said that GST on articles consumed by common persons and the middle class has been decreased from 18 or 12 percent to 5 percent. The Finance Minister said that hair oil, toilet soap, bath soap, shampoo, toothbrushes, toothpaste, bicycles, crockery, kitchenware, and other household consumables will now have only 5 percent GST. Furthermore, she reported that GST on ultra-high temperature milk, chena and paneer has been reduced from 5 percent to zero, and the all-Indian breads will now have a zero rate. Ms. Sitharaman also reported that food items such as namkeen, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter and ghee have been cut from 12 or 18 percent GST to only 5 percent.
Next-Gen GST Reform (Government of India)
1. Save Big on Daily Essentials
| Item | From | To |
| Hair Oil, Shampoo, Toothpaste, Toilet Soap Bar, Tooth Brushes, Shaving Cream | 18% | 5% |
| Butter, Ghee, Cheese & Dairy Spreads | 12% | 5% |
| Pre-packaged Namkeens, Bhujia & Mixtures | 12% | 5% |
| Utensils | 12% | 5% |
| Feeding Bottles, Napkins for Babies & Clinical Diapers | 12% | 5% |
| Sewing Machines & Parts | 12% | 5% |
2. Uplifting Farmers & Agriculture
| Item | From | To |
| Tractor Tyres & Parts | 18% | 5% |
| Tractors | 12% | 5% |
| Specified Bio-Pesticides, Micro-Nutrients | 12% | 5% |
| Drip Irrigation System & Sprinklers | 12% | 5% |
| Agricultural, Horticultural or Forestry Machines (for Soil Preparation, Cultivation, Harvesting & Threshing) | 12% | 5% |
3. Relief in Healthcare Sector
| Item | From | To |
| Individual Health & Life Insurance | 18% | Nil |
| Thermometer | 12% | 5% |
| Medical Grade Oxygen | 12% | 5% |
| All Diagnostic Kits & Reagents | 12% | 5% |
| Glucometer & Test Strips | 12% | 5% |
| Corrective Spectacles | 12% | 5% |
4. Automobiles Made Affordable
| Item | From | To |
| Petrol & Petrol Hybrid, LPG, CNG Cars (≤ 1200 cc & 4000 mm) | 28% | 18% |
| Diesel & Diesel Hybrid Cars (≤ 1500 cc & 4000 mm) | 28% | 18% |
| 3 Wheeled Vehicles | 28% | 18% |
| Motor Cycles (350 cc & below) | 28% | 18% |
| Motor Vehicles for Transport of Goods | 28% | 18% |
5. Affordable Education
| Item | From | To |
| Maps, Charts & Globes | 12% | Nil |
| Pencils, Sharpeners, Crayons & Pastels | 12% | Nil |
| Exercise Books & Notebooks | 12% | Nil |
| Eraser | 5% | Nil |
6. Save on Electronic Appliances
| Item | From | To |
| Air Conditioners | 28% | 18% |
| Television (above 32”) including LED & LCD TVs | 28% | 18% |
| Monitors & Projectors | 28% | 18% |
| Dish Washing Machines | 28% | 18% |
7. Process Reforms
- Registration
- Automatic registration within 3 working days for applicants identified by the system.
- No Input Tax Credit exceeding ₹2.5 Lakh per month for opted scheme users.
- Refund
- Provisional Refund by proper officer, based on risk evaluation.
- Zero Rated Supplies.
- Supplies with Inverted Duty Structure.
PM’s Statement
“The next generation of GST reforms are a gift for every Indian this Diwali. Taxes for the general public will be reduced substantially. Our MSMEs & small entrepreneurs will get huge benefit. Everyday items will become cheaper and this will also give a new boost to the economy.”
– Narendra Modi, Prime Minister
