New GST Rates: Complete List of Items with Reduced Tax

The GST Council has approved a simplified two-tier GST rate structure of 5% and 18%, effective from September 22.

The decision came after a marathon day-long Council meeting in Delhi, chaired by Union Finance Minister Nirmala Sitharaman, who confirmed that all states unanimously supported the reform.

“We’ve reduced the slabs to just two, while also addressing issues related to the compensation cess,” Sitharaman said.
“These reforms have been designed keeping the common man in mind. Taxes on essential daily-use items have been rigorously reviewed, and in most cases, rates have been cut significantly.”

Currently, GST is levied across four slabs—5%, 12%, 18%, and 28%. Under the new structure, these will be replaced by just 5% and 18%, with a special 40% slab reserved for luxury items such as high-end cars, tobacco and cigarettes.

Full List of Items That Received a Rate Cut:

GST Rates: Items Under 0%

• 33 Life-saving drugs and medicines, Cancer medicines, Medication for rare diseases,
• Individual life insurance, Health policies.
• Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Notebooks, Erasers.
• Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti

GST Rates: Items Under 5%

• Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream.
• Butter, Ghee, Cheese & dairy spreads, Namkeens, Utensils
• Feeding bottles, napkins for babies and clinical diapers
• Sewing machines and parts
• Thermometer, Medical grade oxygen, All diagnostic kits and reagents, Glucometer and test strip
• Corrective spectacles
• Tractor tyres, parts, tractors
• Specified bio-pesticides, Micro-Nutrients
• Drip irrigation system and sprinklers
• Agricultural, horticultural or forestry machines for soil preparation

GST Rates: Items Under 18%

• Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm).
• Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm).
• 3 Wheeled Vehicles.
• Motorcycles (350 cc & below).
• Motor Vehicles for the transport of goods.
• Air Conditioners.
• Televisions (above 32″) including LED & LCD TVs.
• Monitors & Projectors.
• Dish Washing Machines.
• Road tractors of engine capacity more than 1800 cc.

GST Rates: Items in 40%

• Pan masala, Cigarettes, Gutka, Chewing Tobacco, Bidis.
• Aerated waters containing added sugar or flavour, Caffeinated beverages, Non-alcoholic beverages.
• Smoking pipes.
• Motorcycles exceeding 350 cc.
• Aircraft for personal use.
• Yachts.
• Revolvers and pistols.
• Betting, casinos, gambling, horse racing, lottery and online money gaming.

Check the full list of items by clicking here.