GST Rates – Goods

• Introduction
• GST Rates on goods
• GST Goods rate list for following items
  • GST rate on electrical goods/machinery
  • GST rate on sports goods
  • GST rate on leather goods

Introduction

The 56th GST Council meeting has been a welcome relief for the common man, especially in the goods sector. Earlier, GST rates followed a 4-tier structure (5%, 12%, 18%, and 28%), with some items at nil rate or 0.25%. However, the GST Council has now revised the system (September 2025) to make it simpler and more consumer friendly. The GST Council has moved to a simplified 2-slab system, 5% and 18% with a special "sin" tax 40%, plus Nil-rated essentials.

These changes are expected to ease the financial burden on small businesses, households, and lower-income groups, making essential goods more affordable for everyone. The revised rates not only support consumers but also encourage economic activity by boosting demand. Let’s take a closer look at the updated GST rates and how they will impact different sectors

The table below provides a quick summary of the revised GST rate structure -

Why These Changes Matter

• Affordability: Daily essentials like sugar, tea, coffee, and sweets now fall under the lowest tax category, while milk stays tax-free.

• Relief for households: Items like toothpaste and hair oil are down from 28% → 18%, directly reducing monthly expenses.

• Boost to industries: Coal taxed at just 5% lowers input costs for power plants. This makes electricity cheaper and supports the Make in India campaign through seamless input tax credit on capital goods.

The government has proposed a 2-tier tax structure for all goods and services under the slabs- 5%, 18% and 40%. After the recent revision of GST rates, these are the commodities that fall under the two tax slabs along with those that do not attract any tax.

GST rate schedule for Goods that underwent changes

Nil Rated Goods & Services (GST 0%):

The following goods/services attract no GST

• • Milk, curd, lassi, buttermilk
  • Fresh vegetables, fruits, cereals, and pulses (unbranded & unpackaged)
  • Salt
  • Sanitary napkins
  • Picture books, children’s drawing/colouring books
  • Life-saving medicines and vaccines
  • Palmyra jaggery
  • Human hair (worked or dressed)

5% Tax Slab:

Given below are the items that have been added to the 5% GST tax rate slab along with the other existing items-

• • Edible oil, sugar, tea, coffee (except instant), and spices
  • Sweets, mishti/mithai, jaggery
  • Butter, ghee, cheese, condensed milk, milk-based beverages
  • Packaged food items: pasta, noodles, ketchup, jam, mayonnaise, packaged juices, bhujia, namkeen, chips
  • Insulin and certain life-saving drugs
  • Coal (down from 11.69%)
  • Agar Batti
  • Insurance premiums (revised from 18%)
  • Dry fruits
  • Citrus fruit
  • Vegetable saps and extracts
  • Packaged snacks like namkeen, bhujia, and mixtures
  • Other prepared or preserved meat
  • Sugar confectionery
  • Jams, fruit jellies, marmalades

18% Tax Slab:

After the GST council meeting on 4th September, the following items were added to the 18% GST rates category-

• • Toothpaste, soaps, shampoos, hair oil, detergents
  • Processed food and beverages (not falling in 5%)
  • Consumer durables like TVs, refrigerators, washing machines, air conditioners (moved down from 28%)
  • Small cars (moved from 28%)
  • Computers, printers, and capital goods
  • Industrial intermediaries and machinery
  • Packaged services not specifically exempted
  • Greaseproof papers
  • Paper and paperboard
  • Apparel and clothing accessories (>2500)
  • Air-conditioning machines
  • Dish washing machines
  • Television sets
  • Three wheeled vehicles
  • Motor vehicles

40% Tax Slab:

The items mentioned below have been added to the 40% GST tax rate slab among the other existing items-

• • Luxury cars & SUVs
  • High-end motorcycles
  • Cigarettes and other tobacco products
  • Aerated drinks & premium beverages
  • Select luxury durables (imported luxury appliances, watches, etc.)

GST Goods rate list for following items

GST rate on electrical goods/machinery

GST rate on sports goods

GST rate on leather goods