New GST Rates 2025: Updated GST Slabs, Tax List & Latest Reforms

Himanshu September 04, 2025 0

Stay updated with the latest GST news, GST reforms, and new GST rate list 2025.

📌 Latest GST Reforms (As per GST Council 2025)

Now only 5% and 18% GST slabs remain — simplifying tax structure.
40% of items shifted to 18% GST bracket.
Essential goods like food items and medicines largely remain in 5% slab.
Luxury goods and services continue to attract higher cess.

These changes aim to simplify India’s indirect tax system and reduce compliance burden.

📊 New GST Rate List 2025 (Updated)

Category	Old Rate	New Rate (2025)
Essential Goods (Food, Medicines)	5%	5%
Packaged Goods, Household Items	12%	18%
Electronics & Consumer Durables	18%	18%
Luxury Goods & Services	28% + Cess	28% + Cess

✔️ Simplification: Fewer slabs mean easier compliance and reduced disputes.

💡 Impact of New GST Rates

For Consumers: Some items may get costlier as 12% → 18% slab shift.
For Businesses: Easier GST filing, fewer classifications.
For Economy: Boost in revenue collection and transparency.

📅 GST Council Meeting Highlights

The GST Council meeting 2025 focused on rationalization of tax slabs, revenue stability, and addressing sector-specific demands. The decision to keep only two major slabs (5% & 18%) was widely welcomed.