New GST Rates (GST 2.0): What Changed from 22 September 2025

From 22 September 2025, India moved to a simpler GST structure, often called GST 2.0. If you make bills or calculate prices, here is what changed.

The main rates now

• 5% for most everyday goods and many services
• 18% as the standard rate for most other goods and services
• 40% for a short list of luxury and sin goods (for example aerated drinks, large cars and some gaming)
• 0% for essentials that are exempt

Special rates that stay

• 3% on gold, silver and jewellery
• 0.25% on rough diamonds and precious stones
• A few items stay at 12% or 28% for now (for example some bricks, and pan masala and tobacco until notified)

What to update in your business

• Check the rate for each item you sell on the official notifications or with your CA; many items moved from 12% to 5% and from 28% to 18%
• Update the rates in your billing software or Excel
• Old invoices keep their old rates; new rates apply to supplies from 22 September 2025
• Recheck your selling prices if your margin changed

CGST, SGST and IGST still work the same

Within your state, split the rate into CGST + SGST; to another state, charge IGST at the full rate. See CGST, SGST and IGST explained.

Try the free GST calculator, and get your monthly return figures ready with the GST Return Prep Workbook.

General information as of October 2026, not tax advice. Rates are set by GST Council notifications; confirm the rate for your item.