The GST Council has approved a major restructuring of India’s indirect tax system. From September 22, the number of slabs will shrink to 0%, 5%, 18% and 40%. The aim is to simplify compliance, make essentials and clean energy more affordable, and keep luxury and harmful goods expensive.
Daily essentials
UHT milk, Indian breads: moved from 5% → nil
Condensed milk, butter, ghee, cheese: 12% → 5%
Hair oil, toothpaste, toilet soap, toothbrush, shaving cream: 18% → 5%
Dry fruits (almonds, cashews, pistachios, hazelnuts, dates): 12% → 5%
Utensils, feeding bottles, baby napkins, clinical diapers, sewing machines: 12% → 5%
Refined sugar, syrups, confectionery (toffees, candies): now 5%
Vegetable oils, animal fats, spreads, sausages, processed meat/fish, malt-based foods: 5%
Namkeens, bhujia, mixtures, savoury snacks: 12% → 5%
Packaged mineral/aerated water (without sugar or flavour): 18% → 5%
Agriculture & fertilisers
Fertilisers: 12–18% → 5%
Tractor tyres/parts: 18% → 5%; tractors: 12% → 5%
Bio-pesticides, micronutrients, drip irrigation, sprinklers: 12% → 5%
Agricultural/horticultural/forestry machines (soil preparation, cultivation, harvesting, threshing): 12% → 5%
Healthcare & education
Thermometers: 18% → 5%
Medical oxygen, diagnostic kits, reagents, glucometers, test strips, corrective spectacles: 12% → 5%
Individual life and health insurance: 18% → nil
Educational goods (maps, charts, globes, pencils, sharpeners, crayons, notebooks, erasers): 12% → nil
Electronics & appliances
Air conditioners, TVs (above 32 inch), monitors, projectors, dishwashers: 28% → 18%
Cars
Petrol and hybrid cars, LPG and CNG cars (≤1200 cc, ≤400 mm): 28% → 18%
Other sectors
Renewable energy devices, construction materials, sports goods, toys, leather products, wood items, handicrafts: 12% → 5%
Sin and luxury goods
Pan masala, gutkha, cigarettes, chewing tobacco, zarda, raw tobacco, bidis: remain at steep GST + cess
Now taxed on Retail Sale Price (RSP) instead of transaction value, tightening compliance
Sweetened/flavoured drinks (including aerated waters): 28% → 40%
High-end/luxury cars (engine >1,500 cc): 40% GST + cess
