Nirmala Sitharaman has announced lower GST rates for the following items as part of the GST Reform: View the complete list here

According to Nirmala Sitharaman, all Indian breads, including roti chapati paratha, paneer, and ultra-high temperature milk, will be exempt from the 5% GST.

On Wednesday, Finance Minister Nirmala Sitharaman announced a number of reforms to the GST, including a rationalization of the rates. A large number of goods have been transferred from higher slabs to the 5% or 18% slabs, while many items have been brought under the zero percent GST regime.

She claimed that the GST council, which consists of state ministers, unanimously decided to lower the consumption tax rates.The panel agreed to simplify the goods and services tax (GST) by reducing its current four slabs of five, twelve, eighteen, and twenty-eight percent to two rates of five and eighteen percent. For a few specific products, like luxury cars, tobacco, and cigarettes, a special 40% slab is also suggested.

“There is a total decrease in middle-class and common man items. Rationalizing rates is only one aspect of this reform. It’s on structural reforms as well. In order for businesses to operate with the GST with ease, it’s also about ease of living. We have made the slabs smaller. At a press conference in the late evening, Nirmala Sitharaman stated, “There will only be two slabs, and we are also addressing the issues of compensation cess.”

Which goods will be less expensive under GST slabs?
Milk at extremely high temperatures, paneer, and all Indian breads, including roti chapati paratha, will be exempt from the 5% GST rate.
Namkeen, bhujiya, sauces, instant noodles, coffee, ghee butter, chocolates, and other items now have a 5% GST rate instead of 12% or 18%.
The GST rate on items that cater to the desires of the middle class, such as air conditioners, 32-inch televisions, dishwashing machines, monitors, and projectors, will drop from 28% to 18%.
GST has been lowered from 28% to 12% for small cars, motorcycles under 350cc, and vehicles used for freight transportation.
Machines used in agriculture, horticulture, or forestry to prepare soil. Natural menthol, certain biopesticides, cultivation, harvesting, and threshing have all been imported from theWhich goods will be less expensive under GST slabs?
Milk at extremely high temperatures, paneer, and all Indian breads, including roti chapati paratha, will be exempt from the 5% GST rate.
Namkeen, bhujiya, sauces, instant noodles, coffee, ghee butter, chocolates, and other items now have a 5% GST rate instead of 12% or 18%.
The GST rate on items that cater to the desires of the middle class, such as air conditioners, 32-inch televisions, dishwashing machines, monitors, and projectors, will drop from 28% to 18%.
GST has been lowered from 28% to 12% for small cars, motorcycles under 350cc, and vehicles used for freight transportation.
Machines used in agriculture, horticulture, or forestry to prepare soil. Natural menthol, certain biopesticides, cultivation, harvesting, and threshing have all been imported from the Which goods will be less expensive under GST slabs?
Milk at extremely high temperatures, paneer, and all Indian breads, including roti chapati paratha, will be exempt from the 5% GST rate.
Namkeen, bhujiya, sauces, instant noodles, coffee, ghee butter, chocolates, and other items now have a 5% GST rate instead of 12% or 18%.
The GST rate on items that cater to the desires of the middle class, such as air conditioners, 32-inch televisions, dishwashing machines, monitors, and projectors, will drop from 28% to 18%.
GST has been lowered from 28% to 12% for small cars, motorcycles under 350cc, and vehicles used for freight transportation.
Machines used in agriculture, horticulture, or forestry to prepare soil. Natural menthol, certain biopesticides, cultivation, harvesting, and threshing have all been imported from the 12% GST slab to 5%

The GST on cement has been lowered from 28% to 18%.
While the GST rate on three life-saving medications used for cancer and severe chronic illnesses has been lowered from 5% to 0%, life-saving drugs and medications will now have a nil GST rate instead of 12%.
Goggles and specs will be subject to 5% GST instead of 28% GST.
There will be a reduction in GST from 28% to 18% for buses, trucks, and ambulances.
All auto parts will be subject to the same 18% GST rate.

Three-wheelers The GST rate was lowered from 28% to 18%.
The GST on man-made fiber has been lowered from 18% to 5%, and the GST on man-made yarn has been lowered from 12% to 5% and 40%. Pan masala, cigarettes, gutkha, chewing tobacco like zarda, and unmanufactured tobacco will all be subject to a special GST rate. carbonated drinks, non-alcoholic drinks, and aerated water with added sugar.
cars of all sizes, helicopters, personal airplanes, yachts, and other unique vehicles for private use.
The retail price of tobacco products will be subject to GST.

All individual health insurance policies, including family floater policies and senior citizen policies, as well as individual life insurance policies and reinsurance, are exempt from GST.

What date will the new GST rates go into effect?

“This will all take effect on September 22, 2025, which is the first day of Navratri. Following the 56th GST Council meeting, Union Finance Minister Nirmala Sitharaman declared that the GST changes would take effect on September 22 for all products, with the exception of sin goods.

“Until the loan and interest payment obligations under the compensation cess account are fully satisfied, sin goods will continue to be sold at the current rates of GST and compensation cess, where applicable… After the loan and interest are paid off, the Union Finance Minister and the Chairperson of the GST Council have the authority to determine when these tobacco-related products will actually undergo a transition, Sitharaman continued.