Comprehensive tracker of all GST rate changes from recent Council meetings (53rd–55th). Includes confirmed rate increases and reductions, upcoming changes under GoM review, and the status of slab rationalization.
Items where GST rate was increased or newly imposed
Effective: January 2025 | 55th Council Meeting
Affects organized used car dealers (Cars24, Spinny, OLX Autos). GST only on margin amount. Individual-to-individual sales NOT affected.
Effective: October 2023 | 50th & 51st Council Meetings
Major increase. GST now on full bet amount (not just platform fee). Led to show-cause notices worth ₹1.5 lakh crore to gaming companies.
Effective: July 2022 | 47th Council Meeting
Wheat flour, rice, paneer, curd, buttermilk, etc. when pre-packed and labelled became taxable. Loose/unbranded remain exempt.
Effective: December 2024 (clarification) | 55th Council Meeting
Reclassified as 'sugar confectionery' instead of 'namkeen'. Only caramel-coated. Plain popcorn remains 5% (loose) or 12% (pre-packed).
Items where GST rate was reduced or shifted to RCM
Effective: Q1 2025 | 55th Council Meeting
Applies only to batteries sold separately for EV assembly. Industrial batteries remain at 18%. Expected to reduce EV cost by ₹30K-50K.
Effective: January 2025 | 55th Council Meeting
Promotes use of fly ash (industrial waste) in construction. Benefits affordable housing projects.
Effective: October 2024 | 54th Council Meeting
Trastuzumab Deruxtecan, Osimertinib, Durvalumab — life-saving cancer medications. Reduces treatment cost significantly.
Effective: October 2024 | 54th Council Meeting
Shifted to reverse charge mechanism (RCM) for registered buyers. Curbs tax evasion in scrap dealer chain.
Effective: October 2024 | 54th Council Meeting
Extruded/expanded savoury snacks (other than potato-based) reclassified at lower rate. Benefits snack manufacturers.
Effective: September 2024 | 53rd Council Meeting
Reduced rate for helicopter services for pilgrims visiting shrines in Uttarakhand (Kedarnath, Badrinath).
Current: 18% → Proposed: 5% or Exempt | Expected: H1 2025
GoM under review. 55th meeting referred back for further analysis.
Current: 18% → Proposed: 5% | Expected: H1 2025
GoM recommended reduction. Council to finalize.
Current: 12%/18% dual → Proposed: Single 15% | Expected: 2025-2026
Phased approach agreed. Item-wise list under preparation by GoM.
Current: Outside GST → Proposed: Include in GST | Expected: No timeline
Long-pending demand from airlines. States resist due to revenue impact.
Current: Outside GST → Proposed: Include in GST | Expected: No timeline
Supreme Court nudged inclusion. States and Centre both resist (massive revenue impact).
Unbranded food grains, fresh vegetables, milk, blood, human hair, live animals, etc.
Trend: Shrinking (items moving to 5% when pre-packed)
Packaged food, sugar, tea, coal, drugs, economy air travel, cab rides
Trend: Growing (items moving from 12% and exempt categories)
Processed food, hotel rooms (₹1K-7.5K), mobile phones, fertilizers, ayurvedic medicines
Trend: May merge with 18% in future rationalization
Capital goods, IT services, financial services, restaurants, most services
Trend: Largest revenue slab. Standard rate for most services.
Luxury cars, SUVs, tobacco, aerated drinks, online gaming, cement
Trend: Limited to demerit/luxury goods. Cess continues for compensation loan.
Key confirmed changes: (1) Used vehicles (>1200cc) GST increased from 12% to 18% (January 2025), (2) EV battery packs reduced from 18% to 5% (Q1 2025), (3) ACC blocks with >50% fly ash reduced from 18% to 12%, (4) Cancer drugs reduced to 5%. Upcoming: health/life insurance GST reduction (GoM review), possible 12%-18% slab rationalization (phased approach). Petroleum products and ATF inclusion remains unlikely in near term.
The GST Council is actively discussing merging these two slabs into a single revenue-neutral rate of approximately 15%. However, this is a complex change: items currently at 12% would see price increase (to 15%), items at 18% would see price decrease. The 55th Council meeting decided on a phased approach — moving select items between slabs first (e.g., items at 12% that should logically be at 18%, and vice versa) rather than an immediate full merger. Timeline: 2025-2026 for phased changes.
The GoM on insurance has recommended reducing GST on: (1) Term life insurance from 18% to 5%, (2) Health insurance for senior citizens from 18% to 5% or exempt, (3) Micro-insurance products to exempt. ULIP and investment-linked insurance likely to remain at 18%. The 55th Council meeting referred the matter back to GoM for modifications. Expected: final decision in 56th or 57th meeting (H1 2025). This is a politically significant decision with elections approaching.
Rate changes impact: (1) Output tax: you charge new rate from effective date (check notification for exact date), (2) Input tax credit: transitional credits at old rate are fully available, (3) Contracts: existing contracts may need revision if prices change due to rate change (anti-profiteering applies), (4) Invoicing: update GST rate in billing software immediately, (5) Returns: file returns with correct rate — wrong rate leads to demand notices. Laabam.One auto-updates rates after each Council meeting.
Despite Supreme Court's direction (2021) to consider including petroleum products in GST, there is currently no timeline for inclusion. Both Centre and States resist: petroleum products (petrol, diesel, ATF, natural gas, crude oil) generate ~₹5 lakh crore annually in excise/VAT. Including them at any GST rate would drastically reduce state revenue. The Council has discussed this multiple times but consensus remains elusive. Most analysts expect inclusion only after compensation cess mechanism ends and GST revenues stabilize further.
Laabam.One applies rate changes from Council meetings automatically. HSN-wise rate tracking and alerts included.
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