As you know, on 3rd September 2025, Finance Minister Nirmala Sitharaman announced that the government has reduced GST rates on several common items. The new rates will be applicable from 22nd September 2025.
She stated that GST on many household items has been reduced from 18% or 12% to just 5%. The government has also shared the complete list of items. Some examples include:
- Household products: hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other daily-use items (now taxed at 5% GST).
- Food items: namkeen, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, and ghee (rates reduced from 12%/18% to 5%).
- Appliances and vehicles: GST on air conditioners, TVs, dishwashers, washing machines, three-wheelers, and four-wheelers has been reduced from 28% to 18%.
If you are a business owner or taxpayer, you know how important HSN codes are for compliance. They are used to identify products and are also included in invoices and GST returns to determine the correct tax rates. HSN codes are mainly required in import and export documents and for calculating customs duty.
So, if you are a beginner and want to understand the latest changes announced by the government, you can check the link below for complete details.