• By Soumyaroop Mukherjee
  • Mon, 22 Sep 2025 11:33 AM (IST)
  • Source:JND
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GST 2.0: The new tax rates under the GST, which consolidate the four tax slabs into just two, 5 per cent and 18 per cent, come into effect today, September 22. All goods and services have been shifted to these new rates.

Apart from these two tax slabs, several items have been put in the zero tax, giving the common man a ‘pre-Diwali’ gift. Additionally, many life-saving drugs have been put under the zero tax slab, thereby significantly reducing the cost of these medicines. 

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The following items have been put under the zero tax bracket:

- Chhena (pre-packed and labelled)

- UHT (Ultra-High Temperature) milk

- Parathas and other Indian breads (by any name)

- Paneer (pre-packaged and labelled)

- Pizza Bread

- Khakhra, chapati or roti

- Exercise Book

- Rubber

- Uncoated paper and paperboard

- Graph books, laboratory notebooks and notebooks

- Agalsidase beta

- Aptakog alfa

- Onasemnogene Abeparvovec

- Imiglucerase

- Esciminib

- Pegylated Liposomal Irinotecan

- Mepolizumab

- Teclistamab

- Daratumumab subcutaneous

- Amivantamab

- Risdiplam

- Alectinib

- Obinutuzumab

- Risdiplam

- Polatuzumab vedotin

- Entrectinib

- Atezolizumab

- Spasolimab 

- Velaglucerase alfa

- Agalsidase alpha

- Rurioctocog alfa pegol

- Idursulfatase

- Alglucosidase alpha

- Laronidze

- Olipudase Alpha

Which Goods And Services Will Not Fall Under These Tax Slabs?

However, not all goods will fall under the reduced tax slabs of the new tax slabs. Alcohol, betting, online games, and luxury items will fall under the 40% tax slab, which has been designated by the government as ‘sin tax’. 

These items are:

- Pan masala

- Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]

- Cigars, cheroots, cigarillos, and cigarettes

- Other manufactured and tobacco substitutes

- Products containing tobacco or reconstituted tobacco and intended for inhalation witho combustion

- Products containing tobacco or nicotine substitutes and intended for inhalation without combustion

- All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured

- Other non-alcoholic beverages

- Caffeinated Beverages

- Carbonated beverages, including fruit drinks

- Luxury motor cars and motor vehicles

- Motorcycles of engine capacity exceeding 350 cc

- Aircraft for personal use

- Yachts and other vessels for pleasure or sports

- Revolvers and pistols for personal use

- Smoking pipes (including pipe bowls) and cigar or cigarette holders, 

- Money earned through legal betting, casinos, horse racing, lottery, or online gaming