GST Rate Changes 2025 — What Changed
Updated June 2026 · VerifiedWhat Are the Major GST Rate Changes in 2025?
| Item / Service | Old Rate | New Rate | Effective Date |
|---|---|---|---|
| Health & life insurance (term plans) | 18% | Nil (for sum assured up to ₹5 lakh) | 01-Apr-2025 |
| Health insurance (senior citizens) | 18% | Nil | 01-Apr-2025 |
| Health insurance (others, up to ₹5 lakh) | 18% | 5% | 01-Apr-2025 |
| EV batteries & chargers | 18% | 5% | 01-Jan-2025 |
| Gene therapy drugs | 12% | 5% | 01-Jan-2025 |
| Fortified rice kernels | 18% | 5% | 01-Jan-2025 |
| Popcorn (ready-to-eat, salted/masala – not pre-packaged) | 5% | 5% | No change |
| Popcorn (pre-packaged & labelled) | 5% | 12% | 01-Jan-2025 |
| Caramel popcorn (sugar-coated) | Varied | 18% | 01-Jan-2025 |
| ACC blocks (containing >50% fly ash) | 18% | 12% | 01-Apr-2025 |
| Food delivery by platforms (restaurant services) | 5% (no ITC) | 5% (no ITC) | No change |
| Online gaming (real money) | 28% on full value | 28% on full value | No change (confirmed) |
| Helicopter passenger transport (seat share) | 18% | 5% | 01-Jan-2025 |
| Autoclaved aerated concrete blocks | 18% | 12% | 01-Apr-2025 |
Which Products Got Cheaper Due to Rate Cuts?
- Health insurance premiums for senior citizens became GST-free, and term life insurance up to ₹5 lakh sum assured became nil-rated.
- EV batteries and chargers saw rates drop from 18% to 5%, making electric vehicles more affordable.
- Gene therapy drugs reduced from 12% to 5%, benefiting patients of rare diseases.
- Fortified rice kernels used in government nutrition schemes dropped from 18% to 5%.
- Helicopter passenger transport (seat share basis) reduced from 18% to 5%.
Which Products Got Costlier?
- Pre-packaged popcorn (salted/masala) increased from 5% to 12% when sold in pre-packaged and labelled form.
- Caramel popcorn (sugar-coated) classified under sugar confectionery at 18%.
What Did the GST Council Meetings Decide?
The key decisions were taken in:
- 54th GST Council Meeting (Sep 2024): Insurance premium rationalisation framework approved. Clarifications on popcorn classification. EV charger rate reduction.
- 55th GST Council Meeting (Dec 2024): Finalised insurance GST exemptions for senior citizens. Gene therapy drugs rate cut. Fortified rice kernels rate reduction. Popcorn classification confirmed.
These recommendations were implemented through Central Tax (Rate) and Integrated Tax (Rate) notifications effective in January and April 2025.
What Rate Rationalisation Is Expected Next?
The GST Council has been working on a broader rate rationalisation exercise to simplify the GST rate structure. The Group of Ministers (GoM) on rate rationalisation is considering merging the 12% and 18% slabs and reducing the number of rate bands. Decisions are expected through 2026 council meetings.
Frequently Asked Questions
Is GST on health insurance fully removed?
Not fully. GST is nil for senior citizens’ health insurance and for term life insurance up to ₹5 lakh sum assured. For other health insurance policies with premiums up to ₹5 lakh, the rate was reduced to 5%. Policies above ₹5 lakh continue at 18%.
What is the GST rate on popcorn in 2025?
Loose/unpackaged salted or masala popcorn remains at 5%. Pre-packaged and labelled popcorn is taxed at 12%. Caramel (sugar-coated) popcorn is classified as sugar confectionery at 18%.
When did the insurance GST changes take effect?
The insurance GST changes took effect from 01-Apr-2025, as notified through Central Tax (Rate) notifications following the 55th GST Council meeting recommendations.
Did the GST rate on online gaming change in 2025?
No. The 28% GST on the full face value of deposits for online real-money gaming, introduced in October 2023, was confirmed and continued without change in 2025.
How do I update GST rates in my billing software?
Check the specific Central Tax (Rate) notification for the HSN/SAC code and new rate. Update the tax rate in your billing/accounting software and ensure new invoices reflect the correct rate from the effective date. Past invoices should not be modified.