Sector-Wise GST Rates in 2025: Everything You Need to Know
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- by MI September 17, 2025
With the implementation of GST 2.0 in 2025, India’s indirect tax system has become more streamlined. Different industries and sectors are subject to different GST rates. This guide provides a comprehensive overview of sector-wise GST rates in 2025, helping businesses and consumers understand applicable taxes.
GST Rates on Goods
| Sector / Goods | GST Rate 2025 | Remarks |
|---|---|---|
| Essential Food Items (e.g., Rice, Wheat, Milk) | 0% | Exempted to reduce burden on consumers |
| Packaged Food & Beverages | 4% | Reduced GST slab under GST 2.0 |
| Consumer Electronics | 10% | Standard GST rate for mid-range goods |
| Luxury Goods (Cars, Tobacco) | 20% | Higher slab for luxury and sin goods |
| Gold & Jewelry | 3%-5% | Depending on type and making charges |
GST Rates on Services
| Service Sector | GST Rate 2025 | Remarks |
|---|---|---|
| Telecom Services | 15% | Standard GST rate for telecom and IT services |
| Hospitality (Hotels, Restaurants) | 12%-18% | Depends on room tariff / service type |
| Financial Services | 18% | Banking and insurance services |
| Education Services | 0% | Exempted under GST 2.0 |
| Healthcare Services | 0% | Exempted for essential healthcare |
Key Highlights of Sector-Wise GST Rates in 2025
- Essential goods and services largely remain exempted (0%)
- Luxury and sin goods attract higher GST rates (20%)
- Services like education and healthcare remain tax-free
- Mid-range goods and standard services are taxed between 10%-15%
- GST 2.0 simplifies slab structure for easier compliance
Conclusion
Understanding sector-wise GST rates in 2025 is essential for businesses to ensure correct tax compliance and pricing. GST 2.0 brings transparency, reduces complexities, and helps both consumers and companies navigate the tax system efficiently. Always check notifications for updates to sector-specific GST rates to stay compliant.
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