Business

GST Rate Changes 2017-2026: Timeline of Major Revisions

GST rate revisions are the major changes the GST Council has made to India's tax slabs since the 1 July 2017 launch. The biggest came in September 2025, when G…

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GST LAUNCHES

GST Replaces India's Old Tax Maze

A single nationwide indirect tax replaced excise duty, state VAT, Central Sales Tax, entry taxes and service tax. The new system launched with nil/exempt supplies plus 5…

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FIRST BIG CUT

23rd GST Council Guts the 28% Slab

Just four months after launch, the GST Council moved 178 items from 28% to 18%, leaving around 50 items in the top slab. All restaurants, AC or not, were also unified at…

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SECOND CUT

28% Slab Shrinks to Just 35 Items

A year after launch, the Council pruned the 28% slab further, leaving only 35 items — mostly demerit and luxury goods like air conditioners, large TVs, dishwashers, auto…

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HOUSING REDESIGNED

New Housing GST: 1% and 5%, No Input Tax Credit

Affordable housing moved to 1% GST and other under-construction residential property to 5% — both without input tax credit. Developers on ongoing projects got a one-time…

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EV PUSH

GST on Electric Vehicles Cut From 12% to 5%

All electric vehicles moved from 12% to 5% GST, and EV chargers moved from 18% to 5%. Unlike most revisions, this was a deliberate policy lever to accelerate EV adoption…

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A RATE HIKE

Footwear Hiked to 12%; Textile Hike Reversed

To correct an inverted duty structure, all footwear moved to a uniform 12% GST, up from an earlier 5%/18% price-based split — a genuine tax increase. The same correction…

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EXEMPTIONS NARROWED

Pre-Packaged Food and Budget Hotels Get Taxed

Pre-packaged and labelled staple foods — rice, wheat, curd, lassi — began attracting 5% GST, closing an exemption loophole. Hotel rooms below Rs 1,000 a night, previousl…

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TAX BASE WIDENED

28% GST on the Full Value of Online Gaming Bets

Online money gaming, casinos and horse racing began attracting 28% GST on the full value of the bet placed, not just the platform's fee — a far bigger tax base than befo…

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GST 2.0 APPROVED

56th GST Council Approves the Biggest Rework Since 2017

The Council approved restructuring the four-tier 5/12/18/28% system into a simplified two-rate structure of 5% and 18%, plus a 40% special rate for demerit and luxury go…

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GST 2.0 LIVE

New Rates Take Effect: 5%, 18% and 40%

Cement, ACs and large TVs moved from 28% to 18%. Individual health and life insurance premiums moved from 18% to Nil. Small cars moved to 18% while SUVs moved to 40%. To…

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