New GST effective from 22-09-2025

The Central Government has finalized CGST rates, the new rates will be effective from September 22nd, 2025.

Following the approval of the GST Council, most goods and services will be taxed at 5% and 18% under the new system from September 22nd, 2025

The Finance Ministry has notified the Central Goods and Services Tax (CGST) rates for products. The new rates will be effective from September 22nd, 2025

Following this notification, states will also be required to notify their State GST (SGST) rates. Under the GST system, revenue is shared equally between the central and state governments.

Only 2 Tax Slabs in GST 2.0Following the approval of the GST Council, most goods and services will be taxed at 5% and 18% under the new system from September 22nd. However, luxury goods will be taxed at 40%, while tobacco and related products will continue to be taxed at 28% plus a cess.

Under the current system, GST has four tax slabs: 5%, 12%, 18%, and 28%. A separate cess is also levied on luxury and non-essential products.

Customers Should Benefit from GST Reforms

Experts believe that with the reduction in tax rates on most items, it is now the responsibility of business and industry to pass on the benefits of these amendments to consumers and ensure timely compliance.

Rajat Mohan, Senior Partner at AMRG & Associates, said that the government has clarified the situation by issuing clear rate schedules in the notification, and now the industry needs to implement them promptly.

Saurabh Agarwal, Tax Partner at EY, said that after the notification regarding the rate revisions is issued, companies should immediately focus on changing their centralized management system (ERP) and pricing policies to pass on the benefits to consumers.