New Delhi, Government of India – In a landmark decision, the Government of India has unveiled the Next-Gen GST Reform as a historic Diwali gift for the nation. This reform is designed to ease the cost of living, promote Aatmanirbhar Bharat, and bring direct benefits to households, farmers, students, and businesses across the country.
The new GST rates will significantly reduce the tax burden on daily essentials, healthcare, education, agriculture, automobiles, and electronic appliances, making them more affordable for every Indian. The reform will also strengthen MSMEs and small entrepreneurs, leading to a positive impact on the economy.
Key GST Rate Reductions
Daily Essentials
| Items | From | To |
| Hair Oil, Shampoo, Toothpaste, Toilet Soap Bar, Tooth Brushes, Shaving Cream | 18% | 5% |
| Butter, Ghee, Cheese & Dairy Spreads | 12% | 5% |
| Pre-packaged Namkeens, Bhujia & Mixtures | 12% | 5% |
| Utensils | 12% | 5% |
| Feeding Bottles, Napkins for Babies & Clinical Diapers | 12% | 5% |
| Sewing Machines & Parts | 12% | 5% |
Uplifting Farmers & Agriculture
| Items | From | To |
| Tractor Tyres & Parts | 18% | 5% |
| Tractors | 12% | 5% |
| Specified Bio-Pesticides, Micro-Nutrients | 12% | 5% |
| Drip Irrigation System & Sprinklers | 12% | 5% |
| Agricultural, Horticultural or Forestry Machines | 12% | 5% |
Relief in Healthcare Sector
| Items | From | To |
| Individual Health & Life Insurance | 18% | Nil |
| Thermometer | 18% | 5% |
| Medical Grade Oxygen | 12% | 5% |
| All Diagnostic Kits & Reagents | 12% | 5% |
| Glucometer & Test Strips | 12% | 5% |
| Corrective Spectacles | 12% | 5% |
Affordable Education
| Items | From | To |
| Maps, Charts & Globes | 12% | Nil |
| Pencils, Sharpeners, Crayons & Pastels | 12% | Nil |
| Exercise Books & Notebooks | 12% | Nil |
| Eraser | 5% | Nil |
Automobiles Made Affordable
| Items | From | To |
| Petrol & Petrol Hybrid, LPG, CNG Cars (≤ 1200 cc & 4000 mm) | 28% | 18% |
| Diesel & Diesel Hybrid Cars (≤ 1500 cc & 4000 mm) | 28% | 18% |
| 3-Wheeled Vehicles | 28% | 18% |
| Motor Cycles (350 cc & below) | 28% | 18% |
| Motor Vehicles for Transport of Goods | 28% | 18% |
Save on Electronic Appliances
| Items | From | To |
| Air Conditioners | 28% | 18% |
| Television (above 32”) including LED & LCD TVs | 28% | 18% |
| Monitors & Projectors | 28% | 18% |
| Dish Washing Machines | 28% | 18% |
Process Reforms
- Registration: Automatic registration within 3 working days, system-based approval.
- Refunds: Provisional refunds through risk-based validation.
Zero Rated Supplies
Supplies with Inverted Duty Structure
Prime Minister’s Statement:
“The next generation of GST reforms are a gift for every Indian this Diwali. Taxes for the general public will be reduced substantially. Our MSMEs and small entrepreneurs will get huge benefit. Everyday items will become cheaper and this will also give a new boost to the economy.”
— Narendra Modi, Prime Minister of India
Conclusion
The Next-Gen GST Reform ensures lower costs, simplified processes, and greater ease of living for citizens, businesses, and farmers, strengthening the vision of Aatmanirbhar Bharat.
The PDF can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/GST-Diwali-Gift-by-PM-Modi-Ji.pdf
