GST 2.0, rolling out on 22 September 2025, ushers in sweeping tax revisions across item categories and sectors. Here's how the GST landscape is reshaping:

 

Overview of Rate Changes

New Structure:

• Main slabs: 5% and 18%

• Special “demerit” slab: 40% for luxury and sin goods

Sector- and Item-Wise Impact

Essential Food & Beverages

• Nil (0%): UHT milk, packaged paneer, roti/chapati, khakhra, pizza bread, erasers, pencils, notebooks

• 5%: Butter, cheese, ghee, chocolates, pasta, biscuits, namkeens, juices, vegetable oils, confectionery, dairy spreads
  Hindustan TimesThe Economic TimesBusiness StandardThe Indian ExpressIndiatimes

Agriculture & Fertilizers

• GST reduced to 5% from 12–18% on fertilizers, bio-pesticides, drip irrigation, micro-nutrients, sprinklers
  Moneycontrolscanx.tradeBusiness Standard

Healthcare & Medical Items

• 0%: Life-saving and cancer medicines, individual life & health insurance premiums

• 5%: Other medicines, diagnostic kits, oxygen, feeding bottles, corrective spectacles
  Hindustan TimesThe Times of IndiaFinancial TimesBusiness Standard

Personal Care & Household

• 5%: Shampoo, soap, toothpaste, toothbrushes, talcum/face powders, shaving products, handmade candles, certain school supplies (e.g. erasers)
  Hindustan TimesThe Indian ExpressBusiness Standard

Consumer Electronics & White Goods

• 18% (down from 28%): Air conditioners, TVs, dishwashers, monitors, projectors, home appliances
  The Indian ExpressBusiness StandardIndiatimes

Automobile Sector

• 18%: Small petrol/LPG/CNG cars (≤1200 cc & ≤4 m), small diesel cars (≤1500 cc & ≤4 m), three-wheelers, motorcycles ≤350 cc, ambulances, goods transport vehicles, tractors (small), bicycles

• 40%: Large cars ( >1500 cc or >4 m), SUVs/MUVs, luxury vehicles, motorcycles >350 cc, high-end EVs

• 5%: Electric vehicles (unchanged)
  Business StandardThe Indian ExpressReutersThe Economic TimesMoneycontrol

Textiles & Apparel

• GST lowered to 5% on manmade yarns/fibres and synthetic textiles; apparel priced above ₹2,500 now taxed at 18% (up from 12%)
  scanx.tradeReuters

Energy & Mining

• Coal: GST raised to 18%, compensation cess subsumed

• Renewable energy equipment: Reduced to 5%
  MoneycontrolBusiness Standard

Building Materials & Chemicals

• 5%: Marble, granite, sulphuric/nitric acid, ammonia, hydrogen peroxide, fertilizers inputs

• 18%: Cement (down from 28%)
  The Economic TimesBusiness StandardThe Times of India

Beverages, Tobacco & Sin Goods

• 40%: Pan masala, cigarettes, gutkha, chewing tobacco, sugary/fizzy drinks, aerated waters with flavour/sugar

• 18%: Bidis (down from 28%)
  Hindustan TimesThe Economic TimesMoneycontrolReutersFinancial Times

Logistics & Transport Services

• 5%: Multimodal transport, freight, GTA services