Major changes are here! India's GST is getting a big update in 2025. Get ready for a simpler system.
The old four-slab GST system (5, 12, 18, 28%) is gone. Now, most goods will fall under a simple two-rate structure: 5% and 18%.
Items like milk products, snacks, and personal care goods like soaps and toothpaste are now taxed at a lower 5% rate. This brings relief to households.
The GST on consumer durables like ACs and TVs, and two-wheelers up to 350cc is now 18%, down from 28%. This helps the middle class.
GST registration is faster for low-risk businesses. The process is simplified to help small enterprises and startups thrive.
A big relief for businesses! You no longer need to link credit notes to specific invoices. This makes compliance much easier.
A new 40% tax slab is introduced for luxury items and "sin goods" like tobacco and aerated drinks. This aims to ensure fairness.