The new type of GST introduced, known as GST 2.0, effective from September 22, 2025, in India, is a revamped, simplified, and technology-driven tax structure. It streamlines the former 4-tier structure (5%, 12%, 18%, 28%) into a 3-slab system (5%, 18%, 40%), focusing on lower rates for necessities and a higher "sin tax" rate for luxury goods.
The GST rates in India have been simplified to three main slabs: 5%, 18%, and 40%. The 5% rate applies to essentials and common household goods, the 18% rate is the new standard for most consumer products and services, and the 40% rate is for luxury and "sin" goods.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
India's indirect tax system is entering a landmark new phase. The GST Reform Bill (popularly called GST 2.0), cleared by the GST Council, will roll out from September 22, 2025, just ahead of the festive season. This marks the biggest overhaul since GST was first introduced in 2017.
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.
The new GST structure at a glance
India has moved from the earlier four-tier GST system (5%, 12%, 18%, 28%) to a simplified two-rate structure: 5% (Merit rate) – Essentials and mass-consumption goods. 18% (Standard rate) – Most other goods 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%.
Total Net GST revenue for October 2025 stands at ₹1,69,002 crore, which is 0.6% higher(monthly growth) and 7.1% higher (yearly growth) than the corresponding period last year at ₹1,68,054 crore.
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.
• GSTR 3B is a summary return with revenue. implication. • GSTR 1 is a monthly/quarterly return with. invoice-wise outward supply details. • GSTR 2A is an auto-populated return.
GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. To work out the cost of an item including GST, multiply the amount exclusive of GST by 1.1. To work out the GST component, divide the GST inclusive cost by 11.
(3) Any registered person who opts to pay tax under section 10 shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the commencement of the ...
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.
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.
The CRA will make these payments on the 5th day of July and October 2025, and of January and April 2026.
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.
The latest reforms mark a major simplification of the GST structure. The shift to a two-slab system of 5% and 18%, removing the earlier 12% and 28% rates, will make taxation more transparent and easier to follow.
How to Avoid GST on Overseas Purchases Legally
Demonstrating a sustainable financial momentum, India's GST collection for September 2025 soars to ₹1.89 lakh Crore, depicting a 9.1% YoY rise.
As of 2025, the GST rate in Singapore is 9% for all taxable goods and services (except for nil-rated). With the GST rate change, as laid out by the Inland Revenue Authority of Singapore (IRAS), it has become even more important to be at par with the recent amendments.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.