- GST rates changed starting September 2025, with many essential goods now taxed at 5% or less.
- Luxury items like SUVs, yachts, and some beverages have GST increased up to 40%.
- Businesses need to update pricing, billing systems, and follow the new GST rules.
The updated GST 5 Percent Items List and rate changes starting September 2025 bring good relief to consumers by lowering taxes on essential goods and services. This change under the Goods and Services Tax (GST) scheme aims to make daily necessities more affordable while adjusting rates on luxury and non-essential items. If you are a consumer or business owner, knowing these changes is important for following the rules and planning your budget.
The Government of India has made a wide revision of GST rates across many categories. Essential food products, medicines, household items, and personal care goods have seen reductions, often dropping from 12% or 18% down to 5% or even zero. On the other hand, luxury goods and some high-demand items have had rate increases up to 40% to balance revenue and discourage extra consumption.
GST 5 Percent Items List: Essential Goods and Services
Many essential items now have a 5% GST rate, making them more affordable for everyone. This includes a wide range of food and agro products such as live horses, condensed milk, butter, cheese, dried nuts and fruits, malt, starches, and various oils. Medicines including essential drugs and Ayurvedic products are also in this group.
Household and personal care products like talcum powder, shampoo, toothpaste, toilet soap, handcrafted candles, and feeding bottles have been moved to 5% or zero GST. Even stationery items like uncoated paper and notebooks are now exempt or taxed very little.
Here is a short table showing some key items now under 5% GST:
| Chapter / HSN Code | Description | GST Rate |
|---|---|---|
| 01012100, 010129 | Live horses | 5% |
| 0401 | Ultra-High Temperature (UHT) milk | 5% |
| 0402 91 10, 0402 99 20 | Condensed milk | 5% |
| 0405 | Butter, ghee, butter oil, dairy spreads | 5% |
| 0406 | Cheese | 5% |
| 0406 | Chena or paneer, pre-packaged and labelled | 5% |
| 0801 | Brazil nuts, dried | 5% |
| 0802 | Other dried nuts (Almonds, Hazelnuts, Pistachios, etc.) | 5% |
| 0804 | Dates, figs, pineapples, avocados, guavas, mangoes, mangosteens (dried) | 5% |
| 0805 | Citrus fruits dried (Oranges, Mandarins, Grapefruit, Lemons, Limes) | 5% |
| 0813 | Other dried fruits; mixtures of nuts/dried fruits (excl. tamarind) | 5% |
| 1107 | Malt, roasted or not | 5% |
| 1108 | Starches; inulin | 5% |
| 1302 | Vegetable saps, extracts, agar, mucilages, pectins | 5% |
| 1404 90 10 | Bidi wrapper leaves (tendu) | 5% |
| 1404 90 50 | Indian katha | 5% |
| 1501 | Pig fats and poultry fat | 5% |
| 1502 | Fats of bovine animals, sheep or goats | 5% |
| 1503 | Lard stearin, lard oil, tallow oil | 5% |
| 1504 | Fish/marine mammal fats and oils | 5% |
| 1505 | Wool grease, lanolin | 5% |
| 1506 | Other animal fats and oils | 5% |
| 1516 | Hydrogenated/re-esterified animal or microbial oils/fats | 5% |
| 1517 | Edible mixtures of animal/microbial fats/oils | 5% |
| 1517 10 | Margarine, Linoxyn | 5% |
| 1518 | Chemically modified animal/vegetable/microbial oils/fats | 5% |
| 1520 00 00 | Crude glycerol, glycerol waters & lyes | 5% |
| 1521 | Vegetable waxes, beeswax, spermaceti | 5% |
| 1522 | Degras, fatty residues | 5% |
| 1601 | Sausages & similar meat products | 5% |
| 1602 | Other prepared meat, meat offal, blood, insects | 5% |
| 1603 | Extracts & juices of meat/fish/crustaceans | 5% |
| 1604 | Prepared/preserved fish; caviar & substitutes | 5% |
| 1605 | Prepared/preserved crustaceans, molluscs | 5% |
| 1701 91, 1701 99 | Refined sugar, sugar cubes | 5% |
| 1702 | Other sugars, syrups, artificial honey, caramel | 5% |
| 1704 | Sugar boiled confectionery | 5% |
| 1704 | Sugar confectionery | 5% |
| 1804 | Cocoa butter, fat, oil | 5% |
| 1805 | Cocoa powder (no sugar) | 5% |
| 1806 | Chocolates, cocoa food preparations | 5% |
| 1901 | Malt extract, food preparations (flour, groats, milk-based, etc.) | 5% |
| 1902 | Pasta (spaghetti, noodles, macaroni, lasagne, etc.) | 5% |
| 1904 | Corn flakes, bulgur wheat, FRK, cereal flakes | 5% |
| 1905 | Pastry, cakes, biscuits, bakers’ wares (excl. bread/roti/khakhra) | 5% |
| 1905 90 30 | Extruded/expanded savoury or salted products | 5% |
| 1905 | Pizza bread | 5% |
| 1905 / 2106 | Khakhra, chapathi, roti | 5% |
| 2001 | Vegetables/fruit/nuts preserved by vinegar | 5% |
| 2002 | Preserved tomatoes (non-vinegar) | 5% |
| 2003 | Mushrooms & truffles preserved | 5% |
| 2004 | Frozen preserved vegetables (excl. 2006) | 5% |
| 2005 | Non-frozen preserved vegetables (excl. 2006) | 5% |
| 2006 | Vegetables/fruit preserved by sugar | 5% |
| 2007 | Jams, jellies, marmalades, fruit/nut purées & pastes | 5% |
| 2008 | Other preserved fruits/nuts/seeds (incl. roasted cashews, groundnuts, squashes) | 5% |
| 2009 | Fruit/vegetable juices (unfermented) | 5% |
| 2009 89 90 | Tender coconut water (pre-packaged) | 5% |
| 2101 11, 2101 12 00 | Coffee extracts, essences, preparations | 5% |
| 2101 20 | Tea extracts, essences, preparations | 5% |
| 2101 30 | Roasted chicory & coffee substitutes | 5% |
| 2102 | Yeasts & baking powders | 5% |
| 2103 | Sauces, condiments, mustard, curry paste, mayonnaise, salad dressings | 5% |
| 2104 | Soups, broths, homogenised composite foods | 5% |
| 2105 00 00 | Ice cream & edible ice | 5% |
| 2106 | Paratha, parotta & Indian breads | 5% |
| 2106 | Soya bari, mungodi, batters | 5% |
| 2106 90 | Namkeens, mixtures, bhujia, chabena (pre-packaged) | 5% |
| 2106 90 91 | Diabetic foods | 5% |
| 2106 | Other food preparations not specified | 5% |
| 2201 | Drinking water (20 litre bottles) | 5% |
| 2201 | Natural/mineral waters (not flavoured) | 5% |
| 2202 99 | Plant-based milk beverages | 5% |
| 2202 99 10 | Soya milk drinks | 5% |
| 2202 99 20 | Fruit pulp/juice-based drinks (non-carbonated) | 5% |
| 2202 99 30 | Beverages containing milk | 5% |
| 2403* | Bidis (revised lower rate) | 5% |
| 2515 12 10 | Marble & travertine blocks | 5% |
| 2516 | Granite blocks | 5% |
| 2523 | Cement (Portland, slag, aluminous, etc.) | 5% |
| 28 | Anaesthetics | 5% |
| 28 | Potassium Iodate | 5% |
| 28 | Steam | 5% |
| 2801 20 | Iodine | 5% |
| 2804 40 10 | Medical oxygen | 5% |
| 2807 | Sulphuric acid | 5% |
| 2808 | Nitric acid | 5% |
| 2814 | Ammonia | 5% |
| 2847 | Medicinal hydrogen peroxide | 5% |
| 28 / 38 | Micronutrients (Fertilizer Control Order, 1985) | 5% |
| 29 / 380893 | Gibberellic acid | 5% |
| 29061110 | Natural menthol | 5% |
| 29061110, 30, 3301 | Menthol, peppermint oil, DTMO, DMO, spearmint oil, mentha oil | 5% |
Luxury and High-Tax Items Under GST
Luxury vehicles like SUVs, motorcycles over 350cc, yachts, and aircraft now have a 40% GST rate. Some beverages including pan masala, flavoured waters, carbonated fruit drinks, and caffeinated drinks have also had their tax rates raised to 40%. Tobacco products like cigarettes and cigars are taxed at 40%, while bidis have a lower rate of 18%.
This increase aims to discourage overuse of luxury and harmful products while balancing government revenue.
Where to Find GST Rate Updates and Support
Official GST notifications and detailed lists of rate changes are available on the Central Board of Indirect Taxes and Customs (CBIC) website. Businesses can also use GST tools, helplines, and FAQs to better understand the new tax system.
Regularly checking official updates helps you stay informed about any further changes or clarifications.
Adjusting to the updated GST 5 Percent Items List and other rate changes will help you manage your money better and follow government rules well.