The 56th GST Council has simplified GST into a core two‑slab structure (5% and 18%) plus a top 40% slab for luxury/sin goods, effective 22 September 2025. The reform removes the earlier 12% and 28% slabs in most cases, reducing classification disputes and compliance cost, while protecting revenue through a higher top rate for luxury and sin goods.

Key impacts:

• Essentials, education, many food items, farm equipment and healthcare goods/services → 0% or 5%
• Standard goods and services (autos, electronics, industrial inputs) → 18%
• Luxury & sin goods (tobacco, pan masala, aerated sugary drinks, luxury cars, yachts, private jets) → 40%

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Quick at‑a‑glance (by slab / movement)

No change — 5%

Everyday low‑value textile items (sale value ≤ ₹2,500 per piece)

• Articles of apparel and clothing accessories, knitted or crocheted, sale value ≤ ₹2,500 per piece
• Articles of apparel and clothing accessories, not knitted or crocheted, sale value ≤ ₹2,500 per piece
• Other made up textile articles, sets, sale value ≤ ₹2,500 per piece
• Cotton quilts of sale value ≤ ₹2,500 per piece

No change — 18%

• Footwear of sale value exceeding ₹2,500 per pair

18% → NIL (0%)

• Paratha, parotta and other Indian breads by any name called
• Technical documentation for goods exempted under Notification No. 19/2019‑Customs dated 06.07.2019
• Natural cut & polished diamonds up to 25 cents (1/4 carats) imported under Diamond Imprest Authorization Scheme
• Works of art and antiques
• Flight motion simulators & parts; target motion simulators & parts
• Selected defence platforms, vessels, parts, sub‑assemblies and specialised equipment (detailed list available)

5% → NIL (0%)

• Ultra‑High Temperature (UHT) milk
• Chena / paneer, pre‑packaged & labelled
• Pizza bread; Khakhra, chapathi or roti
• Selected high‑value biologic medicines (examples provided in master list)
• Erasers

12% → NIL (0%)

• Select medicines & biologics (comprehensive list)
• Maps, hydrographic charts, atlases, wall maps, printed globes
• Exercise books, graph books, laboratory notebooks & notebooks
• Pencils, pencil sharpeners, crayons, pastels, drawing charcoals and tailor’s chalk
• Uncoated paper/paperboard used for exercise/graph/laboratory notebooks

12% → 5%

• Condensed milk
• Butter, ghee, dairy fats; dairy spreads
• Cheese
• Footwear of sale value not exceeding ₹2,500 per pair
• Selected nuts and dried fruits (examples: Brazil nuts, almonds, pistachios, macadamia)
• Tooth powder, candles, matches
• Feeding bottles & nipples
• Cotton & jute handbags and shopping bags
• Tableware & kitchenware (wood, porcelain, other materials)
• Sewing needles; sewing machines (selected types)
• Bicycles & non‑motorised cycles (including delivery tricycles)
• Bamboo, cane or rattan furniture
• Hurricane lanterns, kerosene lamps & parts
• Napkins / baby liners / clinical diapers
• A wide range of food & grocery preparations (details in master list)

28% → 40% (increases — sin & luxury)

• Pan masala
• All goods (including aerated waters) containing added sugar or sweetening matter or flavoured
• Caffeinated beverages; carbonated fruit drinks; carbonated beverages with fruit juice
• Unmanufactured tobacco; cigars, cheroots, cigarettes; other manufactured tobacco and substitutes
• Products intended for inhalation without combustion or nicotine substitutes
• High‑end motor cars, yachts, private aircrafts for personal use (selected categories)

28% → 18%

• Bidi (reduced to 18%)
• Selected consumer durables and vehicles (Air‑conditioners; dishwashers; TVs & monitors; some motor vehicles and tyres; road tractors over certain cc thresholds; many vehicle classes moved to 18% — see master list)

18% → 40%

• Other non‑alcoholic beverages (category‑wide)

5% → 18%

• Coal; briquettes; ovoids and similar solid fuels manufactured from coal
• Lignite; peat

12% → 18%

• Higher value apparel & clothing accessories with sale value exceeding ₹2,500 per piece
• Cotton quilts > ₹2,500 per piece
• Products wholly made of quilted textile material > ₹2,500 per piece
• Certain paper and paperboard categories (uncoated paper for writing/printing; kraft paper; other uncoated paper/paperboard)

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Direct benefits (practical examples)

• Households: Groceries, soaps, toothpaste, school supplies and many medicines now attract 0% or 5% — immediate household savings.
• Businesses & MSMEs: Consolidated slabs reduce classification disputes, simplify pricing, and speed refunds — freeing up working capital.
• Farmers: Lower GST on farm machinery, fertilizers and bio‑pesticides reduces input costs.
• Economy: Expected boost in demand for discretionary items now taxed at 18% (down from 28%), while the 40% slab preserves revenue from luxury/sin items.

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Compliance & implementation notes

1. Effective date: 22 September 2025 — check invoices and supply dates for correct application of rates.
2. Classification caution: Many entries above are described at item / description level. For GST invoicing, map specific goods to HS headings / GST tariff entries and consult the CBIC notifications and corresponding Explanatory Notes for chapter/heading level clarity.
3. Transitional rules: Check official CBIC/State guidance for transitional credit, refund and return‑filing procedures arising from slab changes.
4. Official source: This document consolidates the list you supplied. For legal use, always cross‑verify with the CBIC Gazette, GST Council press release and the official notification(s) issued on/after 22 Sep 2025.

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Annex — Where to get chapter/heading‑level confirmation

1. CBIC official notifications & Gazette (search by notification number and date)
2. GST Council press note — 56th meeting (22 Sep 2025)
3. Field officer / jurisdictional GST helpline / tax consultant for complex or ambiguous classifications