Yes, numerous Goods and Services Tax (GST) rates in India are reduced or restructured effective 22 September 2025, marking a shift to "GST 2.0". Key changes include lowering rates from 28% to 18% on consumer durables (ACs, TVs), automobiles, and cement, along with lower rates (5%) on many staples and services.
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
The due date of the monthly GSTR-3B for September 2025 is now extended from 20th October 2025 to 25th October 2025. Likewise, the quarterly GSTR-3B for Q2 of FY'26 has been extended from 22nd/24th October 2025 to 25th October 2025.
GST on gold and silver jewellery will remain unchanged at 3%, with an additional 5% on making charges. Meanwhile, Gold coins and bars will continue to have 3% GST.
All wristwatches, including analog, digital, and battery-powered models, attract 18% GST. The GST on smart watches in India is 18%, under HSN code 8517. GST on Titan watches is the same as other branded watches—18%. The branded watch gst rate is also 18%.
From 22nd September, readymade garments valued less than Rs. 2,500 attract GST at 5%, and garments valued above Rs. 2,500 attract GST at 18%.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
What are the new GST rate slabs for 2025 in India? The slabs under the 2025 Next-Gen GST Reforms are 0% (exemption), 5% and 18%. A new 40% GST slab has been introduced for luxury goods like premium cars and bikes, and sin goods like cigarettes and tobacco.
No, GST of 3% is applicable on digital gold purchases, just like physical gold.
Automobile sector reforms reduce GST from 28% to 18% on small cars, motorcycles (up to 350cc), buses, trucks, ambulances, and three-wheelers, while maintaining high rates for large luxury vehicles. Housing and infrastructure relief with GST on cement cut from 28% to 18%, easing construction costs.
The extension applies to both monthly and quarterly filers under section 39 of the CGST Act, 2017. Registered taxpayers can now file their GSTR-3B for the month of September 2025 or the quarter of July–September 2025 by October 25, 2025, instead of the earlier due date.
Depending where you live in Canada, your October 2025 GST/HST Credit payment could also come with provincial top-ups added on — enough to push some totals past $700 for an individual or over $1,000 for a family of four.
Effective October 1st, 2025, a new set of rules for GST return filing will come into effect. This marks the first filing cycle under the GST 2.0 reforms, aimed at improving transparency, control, and accuracy in Input Tax Credit (ITC) management through the Invoice Management System (IMS).
GST 2.0 takes effect from September 22, 2025, but smartphone prices will not decrease as the 18% tax rate remains unchanged by the government. Despite expectations, the Indian government's rollout of GST 2.0 has left smartphone prices untouched.
GST Updates 2025: Key Highlights of 56th GST Council Meeting. One of the major GST council decisions was the creation of a two-tier GST rate structure that featured 5% for essential goods and 18% for most other goods and services. The GST Council also abolished 12% and 28% slabs.
Barring of GST Return on expiry of three years
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
The IRS primarily becomes interested in gold transactions when they meet certain thresholds. For sales of gold coins, bullion, or substantial amounts of jewelry, dealers are required to file Form 1099-B if the transaction exceeds $600.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
Starting September 22, 2025, GST in India will be simplified to primarily two rates: 5% and 18%, with a special 40% rate on luxury and sin goods like tobacco and high-end vehicles. Many essentials, including certain medicines and foods, are now zero-rated, while several items see reduced rates.
Summary. GST 2.0, effective September 22, simplifies India's GST structure but leaves gold and silver jewellery unchanged at 3% with 5% on making charges. Gold coins and bars remain at 3%.
As of September 22, 2025, the latest GST rate on air conditioners in India is 18%, reduced from the earlier 28% slab. This applies to all types of ACs—split, window, and portable models—and is part of a broader GST reform aimed at making consumer electronics more affordable.
Goods and services tax credit
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined.
Modes of Payment for the 2025 GSTV – Cash
By doing so, eligible citizens will receive their GSTV – Cash earlier, from 6 August 2025. Citizens without PayNow-NRIC linked bank accounts but have a DBS/POSB, OCBC, or UOB bank account, may provide their bank account information at the govbenefits website by 28 July 2025.
GST Rate and Slab Changes in September 2025
GST rate cuts on 200 items happened from 22nd September 2025. 90% of items in the current 28% slab are moved to the 18% slab. Almost 99% of the items in the 12% slab are moved to the 5% slab.