New GST rates: Full list of items with 5% Goods and Services Tax

The GST Council approved a major simplification of the Goods and Services Tax ( GST) structure, reducing the current four-rate system ( 5%, 12%, 18%, and 28%) to just two main slabs- 5% and 18%.

“ We have reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess,” Nirmala Sitharaman said at a late evening press conference on September 3, 2025.

GST new slab rates: Which items will get cheaper?

• Common use food and beverages ranging from butter and ghee to dry nuts, condensed milk, cheese, figs, dates, avocados, citrus fruits, sausages and meat, sugar boiled confectionery, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles, fruit pulp or fruit juice, beverages containing milk, ice cream, pastry and biscuits, corn flakes and cereals, and sugar confectionery are likely to see a cut in tax rate to 5 per cent from current 12 per cent or 18 per cent.

• Agricultural, Horticultural or Forestry Machines for Soil Preparation. Cultivation Harvesting & Threshing, specified bio pesticides, natural menthol etc have been brought from the 12% GST slab to 5%.

• Spectacles and goggles will attract 5% GST from 28% GST.

• Consumer goods such as tooth powder, feeding bottles, tableware, kitchenware, umbrellas, utensils, bicycles, bamboo furniture and combs will see rate cut from 12 per cent to 5 per cent. The same on shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap and hair oil has been cut down from 18 per cent to 5 per cent.

• Manmade fibre GST has been reduced from 18% to 5%, while for manmade yarn it has been brought down from 12 to 5 per cent,

• Supply of service of third-party insurance of goods carriage will now attract 5 per cent with ITC from 12 per cent with ITC.

• Plant-based milk drinks, ready for direct consumption as beverages, will become cheaper with the GST rate being reduced to 5 per cent from 18 per cent earlier, while that of soya milk drinks has also been cut to 5 per cent from 12 per cent.

All this will be effective 22 September 2025, the first day of Navratri.