In a landmark move aimed at boosting affordability, supporting key sectors, and strengthening the vision of an Aatmanirbhar Bharat, the Government of India has announced on September 03, 2025, sweeping reforms under the “Next-Gen GST” regime. Effective immediately, these changes bring significant reductions in GST rates across a wide range of goods and services, benefiting households, farmers, businesses, and the healthcare and education sectors.
🛒 Daily Essentials & Household Items
- Hair Oil, Shampoo, Toothpaste, Toilet Soap, Shaving Cream, Toothbrushes: Reduced from 18% to 5%
- Butter, Ghee, Cheese, Dairy Spreads: Reduced from 12% to 5%
- Pre-packaged Namkeens, Bhujia, Mixtures: Reduced from 12% to 5%
- Utensils, Iron/Steel/Copper/Aluminium Kitchenware: Reduced from 12% to 5%
- Baby Care Products (Feeding Bottles, Napkins, Clinical Diapers): Reduced from 12% to 5%
- Sewing Machines & Parts: Reduced from 12% to 5%
👨🌾 Agriculture & Farmer Support
- Tractors (<1800 cc), Tractor Tyres & Parts: Reduced from 18% to 5%
- Bio-Pesticides, Micro-Nutrients: Reduced from 12% to 5%
- Drip Irrigation Systems, Sprinklers: Reduced from 12% to 5%
- Agricultural Machinery (Soil Prep, Harvesting, Threshing): Reduced from 12% to 5%
- Fertilizer Inputs (Sulphuric Acid, Nitric Acid, Ammonia): Reduced from 18% to 5%
🏥 Healthcare & Medical Equipment
- Individual Health & Life Insurance Premiums: Reduced from 18% to Nil
- Thermometers, Glucometers, Test Strips: Reduced from 18% to 5%
- Medical Grade Oxygen, Diagnostic Kits, Reagents: Reduced from 12% to 5%
- X-Ray Machines, Ventilators, Surgical Instruments: Reduced from 12% to 5%
- Corrective Spectacles, Contact Lenses, Frames: Reduced from 12% to 5%
- Medicines (Common, Chronic, Antibiotics): Reduced from 12% to 5% (Some specified drugs now Nil)
📚 Education & Stationery
- Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Erasers: Reduced from 12% to Nil
🚗 Automobiles & Transport
- Small Petrol/CNG/LPG Cars (≤1200cc, ≤4m): Reduced from 28% to 18%
- Small Diesel Cars (≤1500cc, ≤4m): Reduced from 28% to 18%
- Motorcycles (≤350cc): Reduced from 28% to 18%
- Three-Wheelers: Reduced from 28% to 18%
- Bicycles & Parts: Reduced from 12% to 5%
- Auto Components, Buses, Trucks: Reduced from 28% to 18%
🏠 Home Appliances & Electronics
- Air Conditioners: Reduced from 28% to 18%
- TVs (>32 inch), Monitors, Projectors: Reduced from 28% to 18%
- Dishwashers: Reduced from 28% to 18%
- Solar Panels, Lamps, PV Cells, Windmills, Biogas Plants: Reduced from 12% to 5%
🍽️ Food & Beverages
- Khakra, Plain Chapati, Roti: Reduced from 5% to Nil
- Paratha, Parotta, Other Indian Breads: Reduced from 18% to Nil
- Paneer, Chhena: Reduced from 5% to Nil
- Ice Cream, Frozen Treats: Reduced from 18% to 5%
- Chocolates, Cocoa Products: Reduced from 18% to 5%
- Jams, Jellies, Marmalades, Fruit Spreads: Reduced from 12% to 5%
- Dry Fruits & Nuts (Dates, Figs, Almonds, etc.): Reduced from 12% to 5%
- Fruit Pulp/Juice Drinks (Non-Carbonated), Milk Beverages, Soya Milk, Coconut Water: Reduced from 12% to 5%
- Instant Tea, Tea Premixes, Iced Tea Powders: Reduced from 18% to 5%
- Roasted Chicory, Coffee Extracts: Reduced from 12% to 5% and 18% to 5% respectively
🧳 Hospitality & Services
- Hotel Accommodation (≤₹7,500/day): Reduced from 12% to 5%
- Salons, Spas, Yoga, Fitness Centres: Reduced from 18% to 5%
- Waste Management Services (Effluent Treatment, Biomedical Waste): Reduced from 12% to 5%
🧵 Textiles, Handicrafts & Packaging
- Synthetic Yarns, MMF Threads: Reduced from 12% to 5%
- Carpets, Terry Towels, Home Textiles: Reduced from 12% to 5%
- Handicrafts, Leather, Particle Boards: Reduced from 12% to 5%
- Packing Materials (Boxes, Trays, Paper): Reduced from 12% to 5%
🎨 Art, Decor & Lifestyle
- Wooden Goods, Statuettes, Minor Furniture: Reduced from 12% to 5%
- Idols, Statues, Paintings, Handbags, Jewellery Boxes: Reduced from 12% to 5%
- Toys, Sports Goods, Board Games: Reduced from 12% to 5%
🏭 Industrial & Manufacturing
- Silicon Wafers, Microchip Materials: Reduced from 12% to 5%
- Marble, Granite Blocks: Reduced from 12% to 5%
- Industrial Textiles, Technical Textiles: Reduced from 12% to 5%
- Cement: Reduced from 28% to 18%
🔧 Process Reforms
- Automatic GST Registration within 3 working days for eligible applicants.
- Provisional Refunds sanctioned via system-based risk evaluation for zero-rated supplies and inverted duty structures.
💡 Impact
These reforms are expected to:
- Reduce the cost of living for common citizens
- Support farmers and MSMEs
- Boost domestic manufacturing and green energy adoption
- Make healthcare and education more accessible
- Stimulate economic growth and ease of doing business
This Diwali, the government has truly delivered a “Diwali Gift” to the nation, making everyday life more affordable and reinforcing the path toward a self-reliant India.
The Complete PDF can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/Next-Gen-GST-Reform-GSTC-03.09.2025.pdf
