Effective September 22, 2025, India implemented a revised, simplified GST structure (GST 2.0) following the 56th Council meeting. The new structure generally features three main slabs: 5% for essential goods, 18% as the standard rate for most goods/services, and a 40% rate for luxury and sin goods.
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.
What was the decision in 56th GST council meeting? The long-discussed proposal for a two-tier GST structure has now been approved (and implemented starting from 22nd September 2025): 5% GST: Applicable to most essential and everyday goods and services. 18% GST: For higher-value products and services.
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%.
GST Slabs for Food & Restaurant (2025)
The majority of food items fall under the 5% GST slab. However, under the GST 2.0 reform, restaurants within hotels are now classified as 'specified premises' and are subject to 18% GST. Standalone restaurants, on the other hand, can choose between charging 5% GST or 18% GST.
GST on hotel rooms is reduced from 12% to 5% for tariffs up to ₹7,500 per day, effective 22nd September 2025. No ITC is allowed at 5%, so hotels with both budget and premium rooms must carefully manage their tax credits. Rooms priced above Rs.7,500 will continue to attract 18% GST, and ITC is fully available here.
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.
How to Avoid GST on Overseas Purchases Legally
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.
The GST Council's latest reforms have reshaped the GST tax slab for the travel and hospitality sector. With international and domestic travel steadily rising, these changes will directly affect how much you spend on air tickets, hotel bookings, dining, and even luxury travel.
Demonstrating a sustainable financial momentum, India's GST collection for September 2025 soars to ₹1.89 lakh Crore, depicting a 9.1% YoY rise.
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
2022, Works contract services provided to Central and State Government, or Local Authorities, which were earlier eligible for concessional rate of 12% GST,would attract GST at the rate of 18% in view of amendment carried out in notification No. 11/2017- Central Tax (Rate) vide notification No.
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.
Taxes on aerated drinks, tobacco and luxury goods will now come under the 28 percent tax bracket under GST, so it will get costlier.
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.
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).
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.
In a word, yes. Declaring luxury goods to US Customs is always a good idea. All of your purchases abroad are subject to declaration by US Customs, and luxury goods have the highest likelihood of being inspected.
Its is easy to calculate Singaporean GST at 9% rate:
The total of lifetime gifts and the estate are eligible for a lifetime exemption, which is set at $13.99 million in 2025. The exemption amount is indexed for inflation, and was scheduled to be reduced by half after 2025. The higher exemption level was made permanent and slightly increased to $15 million in 2026 by P.L.
Along with the GST break, the government of Canada is also planning on offering cheques in the amount of $250 to qualifying middle-class families. In order to qualify for this, you have to have worked in 2023 and had an income below $150,000.
Here's what you need to know about the relevant threshold and how it affects your business or enterprise. The GST threshold for 2025 is $75,000 in annual GST turnover for most businesses. If your GST turnover exceeds this amount in any rolling 12-month period, you must register for GST within 21 days.