GST7 min read
September 2025 GST Rate Changes: What Shopkeepers Need to Know
managemycounter Team·
Overview of the September 2025 GST Reform
The GST Council announced a major restructuring of tax slabs effective September 22, 2025, moving from a 4-tier system (5/12/18/28%) to a simplified 2-tier structure plus a de-merit rate.
Key Changes
From 28% to 18% (Standard Rate)
- Large appliances: TVs over 32", ACs, dishwashers, washing machines
- Vehicles: small cars, two-wheelers, buses, trucks
- Cement
From 12-18% to 5% (Merit Rate)
- Household essentials: soaps, shampoo, toothpaste, detergents
- Agricultural equipment: tractors, harvesters, irrigation tools
- Man-made textile fibers and yarn
- Budget hotel stays under ₹7,500/night
- Gyms, salons, yoga services
New 40% (De-merit Rate)
- Luxury vehicles
- Tobacco products
- Alcoholic beverages
- Aerated drinks
Newly 0% (Exempted)
- Life and health insurance premiums (was 18%)
- 33 specific life-saving medicines (was 12%)
- Basic educational supplies (exercise books, pencils)
- UHT milk and pre-packaged paneer (was 5%)
What Shopkeepers Must Do
If you sell any of the affected items, you must:
- Identify affected products in your catalog
- Update GST rates before September 22, 2025
- Verify that new invoices use correct rates
Bills issued after the effective date with old rates are non-compliant — you are either overcharging or undercharging tax.
How Software Can Help
A good billing system should help you:
- Bulk-identify products with affected HSN codes
- Review and update GST rates in one pass
- Ensure all invoices after the effective date use updated rates
managemycounter's GST Rate Tools let you review your entire catalog for mismatches and apply bulk updates — making a reform like this a one-click exercise instead of a manual item-by-item grind.