India's GST Rate Changes – Updated List July 2025 (Full Breakdown)

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India's GST Rate Changes – Updated List July 2025 (Full Breakdown)

🗓️ Published: July 2025
✍️ Author: NewsWalaFeed Team
📊 Category: Business | Economy | Tax News

📢 Introduction

The Goods and Services Tax (GST) system in India has gone through another round of rate revisions in July 2025, as decided in the 53rd GST Council Meeting. These updates impact essential items, luxury goods, and services across sectors. Whether you’re a business owner, trader, or consumer, understanding the revised GST rates in July 2025 is crucial.

This comprehensive article covers:

  • GST rate slab changes

  • New items added or removed

  • Sector-wise GST updates

  • Impact on common goods & services

  • High-ranking FAQs



📊 What is GST? (Quick Refresher)

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services. It replaced several central and state taxes such as VAT, Service Tax, Excise Duty, etc.

GST is categorized into:

  • CGST – Central GST

  • SGST – State GST

  • IGST – Integrated GST (for inter-state transactions)

  • UTGST – Union Territory GST

🔄 GST Rate Slabs in India (Before July 2025)

Rate SlabTax RateExamples
Nil Rate0%Fresh vegetables, milk, education services
Lower Rate5%Household items, essential food, transport services
Standard Rate12%Mobile phones, business services
Higher Standard Rate18%Electronics, hospitality, insurance
Luxury Rate28%Cars, tobacco, luxury items

📈 Major GST Rate Changes – July 2025 Update

The GST Council, chaired by Finance Minister Nirmala Sitharaman, announced the following key changes:

✅ GST Reductions (Big Relief Items)

  1. Packaged food grains – Reduced from 5% to 0% (if sold loose by farmers/wholesalers)

  2. EV Charging Services – From 18% to 5%

  3. Handmade Toys & Crafts – From 12% to 5%

  4. LED Bulbs – From 18% to 12%

  5. Hotel Rooms under ₹1000/night – GST removed (previously 12%)

⛔ GST Increases (Costlier Now)

  1. Online Gaming Platforms – From 18% to 28% (same as gambling)

  2. Pre-owned Luxury Cars – From 12% to 18%

  3. Digital Services via Foreign Providers (e.g. Netflix, Spotify) – Uniform 18%

  4. Cigarettes & Tobacco Products – Additional cess applied (up to 36%)

  5. Gold Ornaments – From 3% to 5% (controversial decision)

🏢 Sector-Wise GST Impact in July 2025

🏠 Real Estate & Construction

  • Cement GST remains at 28%, but affordable housing materials like clay bricks and fly ash bricks now taxed at 5% (down from 12%)

  • GST on home rentals (commercial use) increased to 18%

🏥 Healthcare & Pharma

  • Cancer drugs below ₹5000 – GST slashed to 0%

  • Medical implants & stents – Now at 5% GST

  • Diagnostic services remain GST-free

💼 Business & Finance

  • Input tax credit (ITC) allowed for freelancers & gig workers

  • B2B digital services must self-declare reverse charge GST

  • GST on MSMEs: Composition scheme limit raised to ₹2 crore

🚘 Auto Sector

  • Electric Vehicles (EVs) still at 5%, but hybrid cars now at 18%

  • Luxury vehicles remain at 28% + cess

📦 GST Rate Chart: Common Goods & Services – July 2025

Product/ServiceOld RateNew Rate (July 2025)
EV Charging18%5%
Pre-owned Cars12%18%
Packaged Food Grains5%0%
Gold Jewellery3%5%
Cigarettes28% + cess28% + increased cess
Online Gaming18%28%
Cancer Medicine5%0%
Hotel Room < ₹100012%0%
Netflix/Spotify18%18% (clarified globally)

📍 Why These GST Changes Matter

The GST rate adjustments are aimed at:

  • Boosting domestic manufacturing

  • Supporting green energy (EV) adoption

  • Addressing the luxury and sin goods tax gap

  • Simplifying GST for digital economy and gig workers


  • GST rate list July 2025

  • GST updates 2025 India

  • Latest GST slab changes

  • GST on gold July 2025

  • Hotel GST India 2025

  • EV GST rate India

  • Online gaming GST 28%

  • GST Council Meeting July 2025

  • GST changes on food and essentials

  • India GST new rules 2025

🔍 GST Council Meeting Highlights (July 2025)

  • Chaired by: FM Nirmala Sitharaman

  • Location: New Delhi

  • Key Points:

    • New slabs for emerging digital platforms

    • Composition scheme extension for MSMEs

    • E-invoicing rules simplified for businesses under ₹2 crore turnover

    • New system for real-time ITC reconciliation

📢 Public Reaction

  • Small business owners welcomed the reduced GST on raw materials.

  • EV startups celebrated the lower charging rates.

  • Gamers and OTT users criticized the steep hike on digital content and online games.

  • Jewellers and Gold buyers opposed the 5% increase on gold, claiming it could reduce demand.

📘 FAQs: India GST Changes 2025

Q1: When will the new GST rates be applicable?
A: All revised rates are effective from July 10, 2025.

Q2: Are education and healthcare still tax-free?
A: Yes. Core education services and hospital treatment remain exempt.

Q3: Will my Netflix or Spotify plan cost more?
A: Yes, due to uniform 18% GST enforcement via international platforms.

Q4: Are farmers or wholesale traders affected?
A: No GST on loose, non-branded food grains – benefit remains.

✍️ Final Thoughts

The India GST Rate Changes for July 2025 are among the most impactful updates in recent years. While many sectors received relief (especially green energy and essential goods), luxury segments and digital platforms saw tax hikes. Businesses should immediately update their billing systems and pricing strategies to remain compliant.

💡 Pro Tip for Businesses: Use India's new GST Invoice API system to auto-sync input tax credit and comply with E-invoicing mandates.

🔗 Related Posts

  • How to File GST Returns Online – Step by Step Guide (2025)

  • Top 10 Business-Friendly States in India – GST Benefits & Ease

  • Online Gaming Tax in India Explained – Why 28% GST?

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