Your Wallet Just Got a GST Update: What's New from September 22, 2025?
Got a haircut, joined a gym, or enjoy an IPL match? If so, the latest GST rate changes are something you'll want to know about. The GST Council has rolled out new rates for a variety of goods and services, and the good news is, some things are getting cheaper, while others will cost a little more. Let's break down what these changes mean for you, starting on September 22, 2025.
Details
Good news for your health and well-being! Several services that you use regularly are now going to be taxed at a lower GST rate.
- Beauty and Physical Well-being Services: Services from health clubs, salons, barbers, fitness centres and yoga classes will now attract a GST rate of 5% without Input Tax Credit (ITC). Previously, these services were taxed at 18%.
- Medicinal Goods: The new notifications include specific entries for certain medicines and medicinal formulations at a 0% GST rate.
- Car Leasing with an Operator: The supplier of services for leasing or renting a car with a driver now has a choice. They can either charge a 5% GST rate and take ITC on input services in the same business line, or they can charge an 18% GST rate with full ITC.
- Daily Essentials: Many pre-packaged and labelled goods will fall under the 5% category. This includes items like cereals, rice, corn, wheat flour, and other grains. It also includes things like roasted coffee, tea, spices like ginger, turmeric, and thyme, as well as a variety of dry fruits and nuts.
Navigating the Confusing Changes: Betting, Gaming, and Sporting Events
This is where things can get a little tricky. The new rules mean a higher GST for some specific activities, with different rates applying based on the type of event or service.
- Betting, Gambling, and Online Gaming: Be prepared to pay more if you're into online money gaming, casinos, horse racing, betting, or lotteries. These "specified actionable claims" will now be taxed at a GST rate of 40%.
- Sporting Events: This is a common point of confusion. The GST rate for admission to sporting events depends on the type of event and the ticket price.
- IPL and similar events: Admission to sporting events like the IPL will be subject to a 40% GST rate.
- Recognized Sporting Events: The 40% rate will not apply to recognized sporting events.
- Other Sporting Events: For other sporting events, if the ticket price is more than Rs. 500, the GST rate will be 18%. Tickets priced at Rs. 500 or less remain exempt.
It’s a good time to take a closer look at your spending habits and understand how these new rates will impact your budget. Be sure to check with your CA if you have any questions about a specific item or service.
And if you’re one of those people wanting to dig deeper, go full throttle with the official notifications and FAQ sheets here: https://drive.google.com/drive/folders/1Wcaaj0MPnd1RcM-SZaJpn4O_7TkD-GwH?usp=drive_link
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