Get a clear overview on GST structure in India. Know the recent updates on 55th GST council and GST rate structure in 2025. Explore the list of goods and their corresponding GST rates in 2025
The Goods and Services Tax (GST) in India has a dual GST structure, with Central GST (CGST) levied by the central government and State GST (SGST) levied by the state governments. Additionally, there’s Integrated GST (IGST) levied on inter-state supplies and imports. India’s Goods and Services Tax follows a dual structure, and hence the tax is levied by the central authority through CGST, and by the states through SGST. IGST is charged on inter-state supplies and imports. Thus, through the Integrated GST, there will be replacement of multiple indirect taxes, and thus, streamlining the compliance burden to the central authority and to the state authorities.
The 55th GST Council meeting was held in Jaisalmer, Rajasthan, on 21 December 2024, chaired by Union Finance Minister Smt. Nirmala Sitharaman. Finance ministers and senior officials from various states and union territories participated. Key reforms were discussed regarding GST rates, trade facilitation, and compliance streamlining.
Importance of Understanding GST Structure <h3>
Understanding the GST structure is crucial for various reasons, especially for businesses operating in India. Here’s why it’s important:
- Compliance: Proper understanding ensures you follow GST rules and regulations. This helps avoid penalties and legal issues.
- Tax Optimization: Knowing the tax rates for your goods and services allows you to claim Input Tax Credit (ITC) efficiently. ITC reduces your overall tax liability.
- Informed Decisions: With a grasp of the structure, you can make informed choices regarding pricing strategies, supply chain management, and financial planning.
- Streamlined Operations: Understanding the different components of GST (CGST, SGST, IGST) helps in accurate invoicing and streamlined accounting practices.
- Improved Efficiency: Knowing the tax implications can help you identify areas for cost reduction and improve overall business efficiency.
Components of GST in India
The GST structure has four main components for the tax levy, depending on the nature of the supply (intra-state or inter-state) and the applicability in Union Territories (UTs).
Here’s a breakdown of each:
- Central Goods and Services Tax (CGST):
- Levied by the Central Government on the supply of goods and services within a state (intra-state supply).
- The current rate of CGST is usually the same as the SGST rate for most goods and services.
- This tax goes to the Central Government.
- State Goods and Services Tax (SGST):
- Levied by the State Government on the supply of goods and services within that state (intra-state supply).
- The current rate of SGST is usually the same as the CGST rate for most goods and services.
- This tax goes to the respective State Government.
- Integrated Goods and Services Tax (IGST):
- Levied on the supply of goods and services between two states or a state and a union territory.
- The IGST rate is equal to the sum of CGST and SGST rates that would have been applied if the transaction was intra-state.
- The collected IGST is then divided between the Central Government and the State Government where the goods or services are finally consumed.
- Union Territory Goods and Services Tax (UTGST)
- UTGST is applied to goods and services within Union Territories where state GST doesn’t apply
- It works alongside CGST for a unified tax structure
- UTGST prevents double taxation in Union Territories
- Revenue from UTGST is shared between the central government and the Union Territory.
GST Rate Structure and Types of GST Slabs in India in 2025
The GST rates in India for 2025 are categorised into different slabs based on the nature of goods and services. Below is a summary of the new GST rates for specific goods and services:
Goods with New GST Rates
| Category | Old GST Rate | New GST Rate |
| Railways Goods and Parts under Chapter 86 | 12% | 18% |
| Pens | 12% | 18% |
| Metal Concentrates and Ores | 5% | 18% |
| Certain Renewable Energy Devices | 5% | 12% |
| Recorded Media Reproduction and Print | 12% | 18% |
| Broadcasting, Sound Recordings, and Licensing | 12% | 18% |
| Printed Material | 12% | 18% |
| Packing Containers and Boxes | 12% | 18% |
| Scrap and Polyurethanes | 5% | 18% |
| Namkeens & Extruded/Expanded Savory Food | 18% | 12% |
| Certain Cancer Drugs | 12% | 5% |
| Car & Motorcycle Seats | 18% | 28% |
GST Slab Rates for Goods and Services in 2025
1. Zero rate in GST
0% GST Rate Goods |
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| List of Goods | HSN Code | GST Rate |
| Milk | 401 | 0% |
| Eggs | 407 | 0% |
| Unpacked Rice | 1006 | 0% |
| Unpacked Curd | 403 | 0% |
| Fresh Vegetables | 0701 to 0714 | 0% |
| Fresh Fruits | 0803 to 0810 | 0% |
| Unbranded Atta (Flour) | 1101 to 1106 | 0% |
| Sanitary Napkins | 961900 | 0% |
0% GST Rate Services |
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| List of Services | HSN Code | GST Rate |
| Educational Services by Charitable Trusts | 9992 or 9963 | 0% |
| Health Care Services | 9993 | 0% |
| Public Transport (Non-AC) | 9964 | 0% |
| Services by Religious Trusts | – | 0% |
2. Lower rate (5%)
5% GST Rate Goods |
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| List of Goods | HSN Code | GST Rate |
| UHT Milk | 401 | 5% |
| Yoghurt | 403 | 5% |
| Coal | 2701 | 5% |
| Edible Oils | 1507 to 1518 | 5% |
| Cashew Nuts | 0801, 0802, 0813 | 5% |
| Raisins | 806 | 5% |
5% GST Rate Services |
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| List of Services | HSN Code | GST Rate |
| Restaurant Services | 9963 | 5% |
| Housekeeping Services | 9954 | 5% |
| Printing of Newspapers, Books | 9988 | 5% |
12% GST Rate
12% GST Rate Goods |
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| List of Goods | HSN Code | GST Rate |
| Condensed Milk | 0402 91 10, 0402 99 20 | 12% |
| Butter | 405 | 12% |
| Cheese | 406 | 12% |
| Marble and Granite Blocks | 2515, 1210, 2516 | 12% |
12% GST Rate Services |
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| List of Services | HSN Code | GST Rate |
| Construction of Apartments | 9954 | 12% |
| Hotel Accommodation | 9963 | 12% |
| Transport of Passengers by Air | 9964 | 12% |
18% Slab of GST
18% GST Rate Goods |
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| List of Goods | HSN Code | GST Rate |
| Mobile Phones | 8517 | 18% |
| Chocolate and Cocoa Products | 1804 to 1806 | 18% |
| Non-Alcoholic Beverages | 2202 91 00, 2202 99 90 | 18% |
| Perfumes and Toilet Waters | 3303 | 18% |
18% GST Rate Services |
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| List of Services | HSN Code | GST Rate |
| Construction of Commercial Apartments | 9954 | 18% |
| Rental Services of Transport Vehicles | 9966 | 18% |
| Electricity, Gas, Water, and Other Distribution Services | 9969 | 18% |
28% GST Rate Goods |
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| List of Goods | HSN Code | GST Rate |
| Carbonated Beverages | 2202 | 28% |
| Tobacco or Tobacco Substitutes | 2402 | 28% |
| Air-conditioning Machines | 8415 | 28% |
| Motor Vehicles | 8701 to 8704 | 28% |
28% GST tax
28% GST Rate Services |
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| List of Services | HSN Code | GST Rate |
| Services Provided by Casinos and Race Clubs | 9954 | 28% |
| Gambling | 9963 | 28% |
Recent Updates on 55th council Meeting
The 55th GST Council meeting announced key exemptions, including service offered by the Indian railways, exempt from the benefit of the common man and for intra- rail services. These changes aim to reduce the tax burden on essential medical and consumable items.
- The GST Council recommends reducing the rate on Fortified Rice Kernel (FRK), classifiable under 1904, to 5%
- The GST Council recommends full exemption of GST on gene therapy
- The GST Council recommends exemption of GST on contributions made by general insurance companies from third-party motor vehicle premiums for the Motor Vehicle Accident Fund
- The GST Council recommends no GST on transactions involving vouchers, as they are not considered a supply of goods or services. Provisions related to vouchers will also be simplified
- The GST Council clarifies that no GST is payable on penal charges levied by banks and NBFCs for non-compliance with loan terms
- The GST Council recommends reducing the pre-deposit required for filing an appeal before the Appellate Authority in cases involving only a penalty amount.
FAQs on GST Structure
How many tiers are there in GST?
GST in India is structured into 4 tiers based on tax rates: 5%, 12%, 18%, and 28%. These tiers determine the applicable tax rate on goods and services. Some products are exempt from GST and have a 0% tax rate.
How does the GST structure work in India?
GST operates on a dual model where both the Central and State Governments levy taxes simultaneously on a common tax base. It aims to simplify the indirect tax structure by subsuming various taxes into a single system.
Are there any potential reforms or changes expected in the GST structure in the near future?
The GST Council regularly reviews and updates GST rates and rules to streamline compliance and improve efficiency. Potential reforms may include rate revisions, simplification of procedures, and expanding the tax base.
Which year was the 52nd GST Council meeting held in New Delhi?
The 52nd GST Council meeting was held in New Delhi on October 7th, 2023.
What is the importance of the GST Council meeting?
The GST Council meeting is crucial for decision-making regarding GST rates, rules, and reforms. It brings together representatives from the Central and State Governments to discuss and implement changes to the GST framework.
What is an inverted tax structure in GST?
An inverted tax structure in GST refers to a situation where the tax rate on inputs (raw materials) is higher than the tax rate on the final product. This can lead to the accumulation of input tax credits and impact the cash flow of businesses.
What are the limitations of pre-GST indirect taxes?
Before GST, India had a complex system of indirect taxes including VAT, excise duty, service tax, and others. Limitations included cascading taxes (tax on tax), multiplicity of rates, lack of uniformity across states, and compliance challenges for businesses.
