GST 2.0 came into effect on 22 September 2025. The 12% and 28% slabs were removed, leaving 5%, 18% and 40%. If you sell online, the change is not only about tax filing — it changes what your product pages and invoices say.
What changed, in one minute
- Slabs now: 5% for essentials, 18% for most standard goods and services, 40% for luxury and sin goods.
- Gone: the 12% and 28% slabs.
- Medicines: moved to 5%, with some at nil.
- Everyday goods: many items that sat at 12% or 18% moved down.
For a shop this means new purchase costs, new MRPs from manufacturers, and old stock bought at the earlier rates.
Five things to fix on your store
- The GST rate on every product. A store does not read government notifications. Each product carries the rate you set, and the invoice follows it.
- Your fast movers first. Fix the rate and price on your top 50 products in one sitting, then work through the rest over a week.
- Listed price versus printed MRP. Keep them the same. A customer who sees a different price on the box will photograph it.
- Your old-stock rule, in one line on the site. Most shops sell old stock at the new lower MRP where the manufacturer allows it. Say which you do.
- Check one invoice. Place a test order and read the PDF: correct rate, correct CGST and SGST split, correct HSN, correct total.
Mixed carts are normal — make sure they work
A single order can hold a 5% item and an 18% item. Your invoice must split them correctly, and switch to IGST when the delivery address is in another state. On our stores each product has its own GST rate and the invoice is generated automatically, so a mixed cart does not need manual work.
What a store will not do for you
No online store reads a GST notification and updates rates by itself, and none maps rates from HSN codes automatically. When the law changes, a person changes the rates. The only question is whether the platform makes that a one-hour job or a one-week job.
If you sell medicines or health products
Most medicines are now at 5% and some at nil, but devices, supplements and consumables may sit elsewhere. Set the rate per product instead of applying one rate to the whole catalogue. Our page on medical store ecommerce websites covers this in more detail.
Need a store where rates, invoices and prices are easy to control? See GST billing or the ecommerce website plans, starting at a one-time ₹4,990.
Sources: ClearTax GST rates 2026; Busy and Kotak MF GST 2.0 explainers; GST Council decisions of 3 September 2025.
FAQs
When did GST 2.0 take effect?
The new rates took effect from 22 September 2025, after the GST Council's decisions on 3 September 2025.
What are the GST slabs now?
5% for essentials, 18% for most standard goods and services, and 40% for luxury and sin goods. The 12% and 28% slabs were removed.
Does an online store update GST rates automatically?
No. Rates are set per product by you. The store then applies the right rate on the invoice, including the CGST and SGST or IGST split.
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