GST 2.0: 11 key FAQs you must know

The Goods and Services Tax (GST) Council, in its 56th meeting in New Delhi, has announced a wide range of changes to tax rates on goods and services.

These decisions are aimed at simplifying the system, reducing disputes, and keeping the balance between consumers and producers. Most of the new rates will come into effect from September 22, 2025, while items such as cigarettes, chewing tobacco and beedis will see revised rates later, once existing cess-linked liabilities are cleared.

WHEN DO THE NEW RATES START?

The revised GST rates will apply to goods and services from September 22, 2025. For tobacco-related products, the current rates will continue for now, and new rates will be announced later.

EVERYDAY ESSENTIALS

The Council has offered relief on several daily-use items. Toilet soap bars, shampoos and face powders will now attract a tax of 5%. Indian breads such as roti, paratha and porotta have been fully exempted. Food preparations not falling under any other category will also be taxed at 5%.

DRINKS AND BEVERAGES

Carbonated fruit drinks and beverages with fruit juice will see higher GST. This is because these products earlier attracted both GST and compensation cess. With cess now gone, the tax rate has been adjusted to maintain the overall collection.

RELIEF FOR FARMERS

Agricultural machinery including sprinklers, drip systems, threshers, and even beekeeping equipment will now face only 5% GST instead of 12%. The government chose not to make them completely tax-free, as that would increase costs for manufacturers and eventually push up prices for farmers.

Source : https://www.indiatoday.in/business/story/gst-20-11-key-faqs-you-must-know-2781756-2025-09-04