Effective September 22, 2025, India implemented a simplified "GST 2.0" structure, primarily featuring two main slabs of 5% (for essential/mass-consumption goods) and 18% (standard rate for most goods/services). A special 40% rate applies to luxury and sin goods. Key changes include reduced rates for electronics (to 18%) and increased taxes on specific high-end items.
The new GST structure at a glance
5% (Merit rate) – Essentials and mass-consumption goods. 18% (Standard rate) – Most other goods and services. 40% (Special rate) – Select luxury and sin goods (e.g., aerated drinks, high-end vehicles, tobacco, casinos, IPL tickets)
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.
Demonstrating a sustainable financial momentum, India's GST collection for September 2025 soars to ₹1.89 lakh Crore, depicting a 9.1% YoY rise.
New GST Rate on Hotel Rooms (Effective September 22, 2025)
And for rooms that are priced above ₹7,500 per night, it is 18%.
If your overall GST/HST credit for 2025 amounts to less than $50 per quarter, the Canada Revenue Agency (CRA) will provide you with a one-time payment on July 3.
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%.
For the period April to December of the current financial year 2025–26, gross GST collections increased by 8.6 per cent to about Rs 16.5 lakh crore, compared to Rs 15.2 lakh crore during the corresponding period of the previous fiscal. All major components—CGST, SGST and IGST—recorded growth during this period.
GST 2.0: Diwali 2025 Reforms – A Game-Changer for Consumption? The government has announced a major overhaul in the GST system, aimed at simplifying tax rates. The new GST structure will reduce the number of tax slabs to just two — 5% and 18% — replacing the current multi-tier system.
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.
GST Notification 5/2025-Central Tax dt. 10-January-2025
05/2025 extends the due date for registered persons who are required to deduct tax at source (TDS) under Section 51 of the CGST Act, 2017. These taxpayers must file their GSTR-7 return for December 2024 by January 12, 2025.
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.
The New GST Rate Structure (Effective from September 22, 2025) So, while raw marble and granite blocks now attract only 5% GST, processed or finished slabs and tiles continue to attract 18% GST — the same as before. This distinction is critical for anyone dealing in both raw and finished stone.
The GST on life insurance has been reduced from 18% to 0% from September 22nd, 2025, under the GST 2.0 reform. It is applicable to all types of individual life insurance. Group life insurance will continue to be taxed at 18%.
For the July 2025–June 2026 benefit year, the maximum annual GST amounts are: $533 – Single individual. $698 – Married or common-law couples. $184 – Per eligible child under 19.
September 2025 GST collection is Rs. 1,89,017 crores.
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.
In August 2025, over 1.5 million eligible adult Singaporeans will receive up to $850 in cash as part of GSTV – Cash, depending on their AI for the Year of Assessment (YA) 2024 and the Annual Value (AV) of their home.
The GST reforms in India are have been rolled out since 22nd September 2025 through central tax notifications, as stated by Prime Minister Narendra Modi. The Centre's GST reform now have a simplified two-slab structure of 5% and 18%, and a special 40% slab for sin and luxury goods.
How to Avoid GST on Overseas Purchases Legally
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.
What is the main GST change affecting hotels as of 22nd September 2025? A: Hotel room tariffs up to ₹7,500 per day or equivalent will now attract 5% GST without input tax credit (ITC), down from 12% with ITC. Tariffs above ₹7,500 stay at 18% with ITC.