Latest Updates

1. The most awaited 56th GST Council meeting happened 3rd September 2025. The council rationalised the GST rate structure from four GST slabs (5%, 12%, 18%, 28%) to a simplified structure:

• Standard rate: 18% - Applicable to most goods and services
• Merit rate: 5% - For essential items and priority sectors
• Demerit rate: 40% - Selective application to sin goods and luxury items

2. GST on individual health & life insurance has been made exempted.

3. GST on dairy products, 33 lifesaving drugs and educational essentials have been brought down to Nil rate.

4. GST on daily essentials, agriculture goods, health care equipment have been brought down to 5%.

5. GST on electronic appliances, small cars and motor cycles (≤350cc) have been brought down to 18%.

6. GST on sin goods such as pan masala, aerated waters, caffeinated beverages, carbonated beverages of fruit drinks / with fruit juice has been increased to 40%.

7. All these GST rate changes will be effective from 22nd Sept 2025 except tobacco products.