GST Rates on Goods and Services in 2025
The Indian government introduced the goods and services tax (GST) on the 1st of July 2017. It aims to simplify the country’s tax system and promote youth entrepreneurship. As it makes taxation easier and compliance smoother, the GST is favorable for businesses, though the tax slabs for goods and services keep changing from time to time. The government takes these steps after studying the market demand and follows suit accordingly. The GST rates for CGST and SGST heads are similar for goods and services. This article will be discussing the applicable GST Rates on essentials in 2025.
Basic taxation rates are 0%, 5%, 12%, 18% & 28% though there are even lower tax rates at 3% and .25% which are used in rare conditions. The nominal rates under the composition scheme are 1.5%, 5%, or 6% depending on the goods and services. Apart from normal GST rates and composition scheme rates, there are other TDS and TCS rates.
The TDS/TCS is deducted or collected at the rate of 1% from the taxpayers. The government also levies Cess on certain non-essential items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles. The Cess rates range from 1% to 204% in 2025.
GST Rates on Essential Items
| Products | GST Rate |
| Milk | 0% |
| Eggs | 0% |
| Curd/Lassi | 0% |
| Health Services | 0% |
| Children’s Drawing & Colouring Books or Educational Services | 0% |
| Unpacked Foodgrains | 0% |
| Unbranded Atta/Maida, Natural Honey | 0% |
| Unpacked Paneer | 0% |
| Gur, Palmyra Jaggery | 0% |
| Besan | 0% |
| Fresh Vegetables | 0% |
| Salt | 0% |
| Prasad | 0% |
| All kinds of contraceptives | 0% |
5% GST Rate on Other Essential Items
- Sugar
- Packed paneer
- Tea
- Coal
- Edible oils
- Raisin
- Domestic LPG
- Roasted coffee beans
- PDS kerosene
- Skimmed milk powder
- Cashew nuts
- Footwear cost less than Rs 500
- Food for babies made of milk
- Apparels cost less than Rs 1000
- Fabric
- Coir mats
- Spices and seasonings kitchen floor mats
- Agarbatti
- Mithai
- Life-saving drugs
- Coffee except instant
Food Items Taxed at 12% Rate under GST
- Butter
- Ghee
- Processed food
- Almonds
- Mobiles
- Fruit juice
- Preparations of vegetables
- Fruits
- Chutney
- Jam
- Nuts or other parts of plants, pickle Murabba
- Jelly
- Packed coconut water
- Umbrella
GST Rates for Electronic Items
| Item List | GST Rates |
| Computer, printers | 18% |
| Consumer durables such as AC and fridge | 28% |
| Microphones and stands | 18% |
| Telephone sets with communication devices | 18% |
| Any electrical insulator | 18% |
| Electric power plants and rotary compressors | 18% |
| Multimedia speakers, headphones, earphones | 18% |
| Household washing machines (capacity less than 10 kg) | 28% |
| Vacuum cleaners | 28% |
| Freezers and refrigerators | 28% |
| Microwave ovens | 28% |
| Electric coffee and tea makers | 28% |
| Television sets up to 32 inches | 28% |
| Projectors, shavers, home theater systems, and other audio and video equipment | 28% |
| Instantaneous gas water heaters | 28% |
GST Rates on Automobiles in 2025
The current GST rates in the automobile industry are high but are significantly low on EVs. In 2025, the GST Rate on EVs is 5% while on passenger cars two-wheelers with engine capacity less than 350cc are 28%. Two-wheelers with engine capacity of more than 350cc are taxed at 31%.
The taxability of commercial vehicles varies from 12% to 28% while passenger cars are taxed at 28% with additional CESS ranging from 1% to 22%. In the automobile industry, the GST rate slabs vary depending on the engine capacity and other factors.
| Automobiles | GST Rates |
| EVs | 5% |
| Passenger cars | 28% |
| Commercial vehicles | 12% to 28% |
| Two-wheelers | 28% with an engine capacity of 350cc and 31% for an engine capacity of more than 350cc |
GST Rates Change in 2025
At the recently held council in 2024, new GST rates are introduced on certain products. In the 54th Council of GST, the rates are lowered on the following products.
| Products | Earlier GST Rates | Latest GST Rates |
| Cancer drugs such as Trastuzumab Deruxtecan, Osimertinib and Durvalumab | 12% | 5% |
| Namkeens and extruded/expanded savory food products | 18% | 12% prospective |
| Car and motorcycle seats | 18% | 28% prospective |
| Transport of passengers by helicopters | 18% | 5% on seat share basis and 18% on charter |
| Import of services by a branch office of fore | Taxable | Exempted |
To align with the latest market trends, the government keeps revising the GST rates on essentials so that taxpayers can have optimum results and contribute to the nation’s growth.
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