New GST Rates Updates 2025 Explained
The Goods and Services Tax (GST) in India has just gone through a big change. Finance Minister Nirmala Sitharaman announced new GST rates after the 56th GST Council meeting, and these changes will affect almost everyone — from everyday consumers to small businesses and startups.
Starting September 22, India will move from a complicated four-tier system (5%, 12%, 18%, 28%) to a much simpler two-tier structure of 5% and 18%, with a special 40% rate for luxury and harmful products like tobacco and high-end cars.