With effect from 22 September 2025, GST moved to a simpler structure with two main rates, 5% and 18%, and a special 40% rate for a small set of luxury and sin goods. Most items earlier taxed at 12% moved to 5%, and most at 28% moved to 18%.
Several daily-use items, such as toiletries, packaged foods and medicines, moved to lower rates. Many consumer durables, such as air conditioners and televisions, moved from 28% to 18%. Individual life and health insurance policies were exempted.
Key points
- Check the rate for your exact HSN code, not just the category
- Update billing software and price lists for the new rates
- Review inverted duty structures that may affect refunds
- Try the HSN / SAC finder for common codes
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
CA Rahul Rajendra MohiteACA, M.Com · ICAI Membership No. 622387 · Founder, Rahul R. Mohite & Co., PuneFirm profile and key facts