As per the revision, several everyday food items will see a tax reduction from 18 per cent to 5 per cent. The GST rate changes aim to bring a majority of items into the 5 per cent and 18 per cent tax brackets, with only a few items left in the sin goods, attrating a higher rate of 40 per cent. GST is designed to be lower on essential goods and services and higher on luxury or sin items. Currently, GST in India is divided into five main slabs – 0%, 5%, 12%, 18%, and 28%, with some additional special rates (like 0.25% and 3%) and cess on selected products. That's exactly what's happening with the new GST rates set to come into effect from 22 September 2025. Whether you're a business owner, a salaried individual, or simply someone who enjoys shopping, these changes matter to you. The new GST rates have been simplified into two major slabs, 5% and 18%, while introducing a special 40% GST bracket for luxury and sin products. This is definitely a huge relief for the middle ...
