Latest GST Rates in India 2025: Complete List for Businesses
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- by MI September 19, 2025
The Goods and Services Tax (GST) is a unified indirect tax system in India that applies to almost all goods and services. In 2025, the GST Council has continued to maintain multiple tax slabs, ensuring essential goods remain affordable while luxury and sin goods attract higher taxes. This article provides the complete list of updated GST rates in India 2025 for businesses.
1. GST Rate Structure in 2025
The GST system in India is divided into five major slabs:
- 0% GST: Essential items like fresh fruits, vegetables, milk, eggs, salt.
- 5% GST: Basic goods and services like packaged food items, transportation, economy class air travel.
- 12% GST: Processed food, medicines, computers, and mobile phones.
- 18% GST: Standard rate for most goods and services including electronics, restaurants, telecom, insurance.
- 28% GST: Luxury and sin goods such as cars, tobacco, aerated drinks, and high-end consumer products.
2. Latest GST Rates on Goods (2025)
| GST Rate | Goods |
|---|---|
| 0% | Unprocessed food items, fresh vegetables, milk, eggs, salt, newspapers |
| 5% | Tea, coffee (unbranded), sugar, edible oil, economy air travel, transportation services |
| 12% | Butter, cheese, ghee, packaged food, computers, mobile phones, medicines |
| 18% | Telecom, restaurants (non-AC), financial services, branded garments, industrial goods |
| 28% | Luxury cars, SUVs, aerated drinks, pan masala, tobacco, high-end electronic appliances |
3. Latest GST Rates on Services (2025)
| GST Rate | Services |
|---|---|
| 0% | Healthcare, education (schools & colleges), basic government services |
| 5% | Transportation of goods and passengers, economy class air travel |
| 12% | Business consultancy, financial services, rail transport (AC) |
| 18% | IT services, insurance, telecom, restaurants (with AC), hotels below ₹7,500/night |
| 28% | Five-star hotels, cinema, luxury services |
4. Recent Updates in GST 2025
- GST on electric vehicles (EVs) remains at 5% to promote green mobility.
- Small businesses benefit from simplified GST 2.0 compliance with auto-matching ITC claims.
- GST on online gaming remains at 28%, continuing from the 2023 update.
5. Impact of GST Rates on Businesses
- MSMEs: Lower compliance burden under GST 2.0 filing system.
- Exporters: Benefit from zero-rated exports and quicker refunds.
- Consumers: Essential goods remain tax-free, while luxury goods attract higher GST.
Conclusion
The latest GST rates in India 2025 continue to balance affordability and revenue collection. While essential goods are kept tax-free, businesses dealing in luxury goods and services face higher GST rates. For companies, staying updated with the GST rate list is critical to remain compliant and competitive in the market.
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