Instantly compare old and new GST rates as per 56th GST council meeting
| sl_number | Chapter /Heading Sub-heading / Tariff item |
Description of Goods | Old GST Rate (%) (Current Rates) |
New GST Rate (%) (From 22nd September'25) |
|---|
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This realignment aims to reduce tax burden, increase transparency, and improve ease of doing business.
Here’s a quick look at the major shifts proposed under the new GST system:
| Category | Old GST Rate | New GST Rate | Impact |
|---|---|---|---|
| Small cars | 28% | 18% | Affordable upgrades in the auto sector |
| Air conditioners, televisions | 28% | 18% | Lower cost for big-ticket electronics |
| Insurance premiums | 18% | 15% or Nil | Reduced financial burden for households |
| Daily-use essentials | 5% | Nil | Basic items may become tax-free |
| FMCG & packaged foods (chips, namkeen, ketchup, pasta, butter, ghee, cheese, juices, milk-based beverages) | 12% or 18% | 5% | Grocery bills set to reduce |
The Goods and Services Tax (GST) in India is heading for one of its most important reforms since its launch in 2017. The government has proposed trimming the existing four-tier system of 5%, 12%, 18%, and 28% into a simpler two-rate structure of 5% and 18%, with only a limited set of luxury and demerit goods taxed at a higher rate.
This shift is expected to make GST simpler, consumer-friendly, and business-efficient.
What it means for you:
With TallyPrime, ensure smart ITC tracking, reconciliation tools, and
clear reports — so you’re always in control of your tax credits
Match your purchase entries with
GSTR-2B regulary
Ensure the suppliers you work with
are compliant - their timely filing
unlock your credit
Keep an eye on timelines to
avoid missing out
Review and avoid ineligible items (like staff meals or personal expenses)
