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:

  1. Identify affected products in your catalog
  2. Update GST rates before September 22, 2025
  3. 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.

Ready to try managemycounter?

GST billing, udhaar khata, stock management — all in one app. Free during beta.