India GST rate update Effective September 22, 2025, the Government of India implemented changes to the Goods and Services Tax (GST) framework. These changes simplified tax slabs, reduced rates for essential goods, and imposed higher rates on luxury and sin/luxury goods.
New GST slabs:
- 5%: Applied to essentials and common-use goods. Items that were under the 12% slab moved to the 5% slab.
- 18%: Applied to general goods and services. Most items from the 28% slab moved to the 18% slab.
- 40%: Applied to a limited set of sin/luxury goods, such as cigarettes, tobacco, alcohol, and online gaming.
Examples of HS code updates as per the new GST slabs:
- HS 24021010 (Cigars and cheroots): GST increased from 28% to 40%.
- HS 96032100 (Tooth brushes including dental-plate brushes): GST reduced from 18% to 5%.
- HS 25231000 (Cement clinkers): GST reduced from 28% to 18%.
The updated rates are now available in AvaTax. Improved economic nexus map We’ve enhanced the Economic nexus map to make it easier to monitor and manage your sales tax obligations across states.
The improved economic nexus map offers:
- Visual thresholds: Instantly see which states have economic nexus laws and whether your sales are nearing or exceeding those limits.
- Timely alerts: Get notified when you reach 80% or exceed 100% of a state’s threshold.
- Direct registration: Register in a state right from the map when needed.
- Weekly updates: Access the most current data directly from your Avalara Home.
- Clear map views: Blue states indicate that no action is needed. Red states indicate that registration is necessary.
- Deeper insights: Generate reports to understand your company’s nexus exposure better.
For more information, see Economic nexus map.