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GST rates rationalised to 5%, 18% and 40%

All GST-registered suppliers, who needed to update rates in invoices and billing software.

GST

What changed

Following the 56th GST Council meeting, most goods and services moved to two main rates of 5% and 18%, with 40% for specified luxury and demerit goods. Special rates such as 3%, 1% and 0.25% continue for specific items.

Who is affected

All GST-registered suppliers, who needed to update rates in invoices and billing software.

Source

CBIC, Notification 9/2025-Central Tax (Rate) and the corresponding services notifications. The notification text is on the CBIC website.

Effective: 22 Sep 2025 · Note published · Last reviewed 26 September 2026

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