When Will New GST Rates Be Applicable? Key GST Dates In September

The 56th meeting of the GST Council held in New Delhi on Wednesday approved major goods and services tax (GST) reforms. One of them was the restructuring of GST into two slabs, ie 5% and 18%. Union Finance Minister Nirmala Sitharaman, said that the new GST rates would significantly reduce the burden on common men and provide relief to the middle class.

As the GST rate cut is expected to significantly reduce the cost of daily use items, dairy products, electronics, devices, kitchen utensils, etc, people are curious to find out when will the new GST rates will be applicable from.

When will the New GST Rates Be Applicable From? Check New GST Effective Rate

The new GST rates will be applicable from 22 September, 2025, announced FM Nirmala Sitharaman on Wednesday night. "The changes in GST rates of all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented with effect from 22nd September 2025," read a statement by the Ministry of Finance.

Other Important GST Date In September

Other than the implementation of GST rates on 22 September, the government has also announced that the date of operationalisation of the Goods and Services Tax Appelate Tribunal (GSTAT).

The GSTAT will be made operational for accepting appeals before end of September. The hearing for matters related to GST will begin before the end of December 2025.

"The Council also recommended the date of 30.06.2026 for limitation of filing of backlog appeals. The Principal Bench of the GSTAT will also serve as the National Appellate Authority for Advance Ruling. These measures will significantly strengthen the institutional framework of GST by providing a robust mechanism for dispute resolution, ensuring consistency in advance rulings, and offering greater certainty to taxpayers. This will further enhance trust, transparency, and ease of doing business under the GST regime," as per PIB statement.

GST Rate Cut Announced

The GST council has approved a major GST rehaul. The existing GST slabs have been reduced to only two slabs, ie 5% and 18%. There is a separate slab for miscellaneous items like sin goods and luxury items.

Common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil, as per GST Council approval.

Almost all personal-use items and aspirational goods for the middle class, like AC, washing machines, will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the US tariffs.

Premium paid for individual life insurance and health insurance (including family floater), policies too have been exempted from GST. Earlier, such policies were subject to 18 per cent GST.

GST Slab Simplification

The panel approved simplifying the GST from the current four slabs - 5, 12, 18 and 28 per cent, to a two-rate structure - 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The new rates for all products, except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be effective September 22, she said.

Such tobacco and tobacco-related products will continue to be subject to a 28 per cent GST rate plus a compensation Cess till the time the loans taken to compensate states for loss in revenue during COVID years are repaid. The loans are expected to be repaid by the end of the calendar year.