Business
GST Overhaul From September 22: All Your Questions Answered
New Delhi: The GST Council has rolled out one of the biggest reforms since the introduction of the Goods and Services Tax. From September 22, 2025, India will move to a simplified two-slab system of 5% and 18%, along with a special 40% rate for luxury and sin goods. Everyday essentials such as milk, paneer, and roti have been exempted, insurance has been made tax-free, and costs for construction and farming equipment are being reduced.
But big changes always come with bigger questions. What exactly gets cheaper? What stays the same? How will billing work if you have already made an advance payment? And what about services such as travel, insurance or e-commerce? To cut through the noise, here are answers to the most frequently asked questions on the new GST rates, explained in simpler language.
1. When do the new GST rates apply?
The revised GST rates will take effect across India on September 22, 2025. The only exceptions are tobacco products and gutkha, which will continue under the old regime until further notice.
2. What are the new slabs?
The tax structure has been reduced to two main slabs, which are 5% and 18%. A higher slab of 40% has been introduced for goods such as luxury cars, large SUVs, alcohol substitutes, betting, casinos and other high-end products.
3. What about food items?
Essential food items remain exempt from GST. This includes UHT milk, paneer, pizza bread, chapatti and roti. All of these will now carry no tax.
4. Are insurance policies included?
Yes, both life and health insurance are exempt from GST under the new system. This includes term insurance, ULIPs, family floater health policies and senior citizen health plans.
5. What happens if I supply goods before September 22 but bill after?
The tax rate will depend on the date of payment. If payment is made after September 22, the new rate applies. If it is made before that date, the old rate continues.
6. What about imports?
Imported goods will be taxed at the same GST rates as domestic goods, unless they fall under the exempt category.
7. Can I still use my old input tax credit?
Yes, the input tax credit already available in your ledger will remain valid and can be used to settle future tax liabilities.
8. What if my goods become exempt after September 22?
If your goods are moved to the exempt category after September 22, you will have to reverse any input tax credit claimed on such supplies.
9. Will e-way bills change?
No. The rules for e-way bills remain unchanged. Even if the GST rate changes while goods are in transit, the existing e-way bill will remain valid.
10. Are plant-based milk drinks covered?
Yes, plant-based milk products, including soya milk, will now attract a 5% GST rate.
11. Why a 40% slab for some drinks?
The 40% slab has been created to group similar beverages and avoid classification disputes.
12. What is the GST on medicines?
All medicines are now taxed at 5%, except those that are specifically exempt.
13. What about medical devices?
Medical devices are taxed at 5%, which is lower than earlier rates and is expected to reduce costs for patients and hospitals.
14. What about small cars?
Cars with petrol, LPG or CNG engines up to 1200cc and diesel cars up to 1500cc will now be taxed at 18% instead of 28%.
15. And bigger cars?
Large cars, SUVs and utility vehicles are placed in the 40% slab, as they are considered luxury items.
16. Motorcycles?
Motorcycles with engines up to 350cc will be taxed at 18%, while those above 350cc will attract 40% GST.
17. What about buses and trucks?
Buses and trucks will now be taxed at 18%, which is a reduction from the previous slab.
18. Agriculture equipment?
Agricultural machinery such as sprinklers, drip irrigation systems and harvesters are taxed at 5%, making them more affordable for farmers.
19. Why not exempt tractors?
Tractors have not been exempted because exemptions block input tax credit. Instead, they have been placed under a lower rate to reduce costs while preserving the credit chain.
20. Household items?
Common household items such as soaps, shampoos and talcum powders are taxed at 5%. Toothpaste, toothbrushes, and dental floss also fall under this category.
21. Electronics?
Consumer electronics such as air conditioners, dishwashers and televisions will now attract 18% GST. The 18% slab applies even to larger TVs.
22. Energy sector?
Renewable energy devices are placed under the 5% slab, while coal has been restructured so that there is no additional burden.
23. Hotels and travel?
Hotel rooms priced up to Rs 7,500 per night are taxed at 5%. Bus and train fares are also at 5%. Air travel attracts 5% in economy and 18% in business class.
24. Entertainment?
Casinos, betting and IPL tickets fall under the 40% slab. Other sporting events are taxed at 18% if the ticket price is above Rs 500.
25. What about cinema tickets?
Cinema tickets up to Rs 250 are taxed at 5%, while those above Rs 250 attract 18% GST.
26. How does GST change for education?
Education services such as school tuition remain exempt. Coaching classes and training programmes are taxed at 18%.
27. Will GST apply to hospital services?
Basic hospital services remain exempt, but certain value-added services inside hospitals may attract 18% GST.
28. What about telecom services?
Telecommunication services, including mobile and internet, are taxed at 18%.
29. How are financial services treated?
Financial services such as bank charges and processing fees continue to attract 18% GST.
30. What about insurance renewals?
Renewals of life and health insurance policies are exempt in line with the exemption for insurance products.
31. Is GST applicable on gold?
Yes. Gold jewellery and bullion are taxed at 3%, while jewellery making charges attract 5%.
32. What about real estate?
Under-construction flats are taxed at 5% without ITC. Affordable housing projects continue to enjoy concessional rates.
33. How does GST impact restaurants?
Standalone restaurants and those in hotels with tariffs below Rs 7,500 are taxed at 5%. Restaurants in higher-end hotels may be taxed at 18%.
34. Are services like cab rides affected?
Yes. App-based cab aggregators and regular taxi services are taxed at 5%.
35. What about railways?
Rail passenger fares are taxed at 5%, while freight services attract 12%.
36. How are airlines taxed?
Economy class tickets are taxed at 5%, while business class tickets are taxed at 18%.
37. What about tour packages?
Tour operator services attract 5% GST without ITC.
38. Is GST applicable on e-commerce?
Yes. Goods and services sold via e-commerce platforms are taxed at the same rates as offline products.
39. What about alcohol?
Alcohol for human consumption remains outside GST and continues to be taxed by states.
40. How is tobacco treated?
Tobacco products attract GST along with an additional cess, keeping them in the higher tax range.
41. What about petroleum products?
Petrol, diesel and natural gas are outside GST and continue under excise and Value Added Tax (VAT).
42. How is electricity treated?
Electricity supply remains exempt, as it is considered essential.
43. Are fertilizers covered?
Fertilizers are taxed at 5% to reduce costs for farmers.
44. What about seeds?
Seeds for sowing are exempt from GST.
45. How does GST apply to textiles?
Textiles fall under the 5% or 12% slab, depending on the product.
46. What about footwear?
Footwear priced up to Rs 1,000 is taxed at 5%. Above Rs 1,000, it is taxed at 18%.
47. Are cosmetics affected?
Yes. Cosmetics and beauty products attract 18% GST.
48. What about sanitary napkins?
Sanitary napkins are exempt from GST.
49. How are packaged foods taxed?
Packaged foods like biscuits, chocolates and snacks attract 18%. Unbranded staples remain exempt.
50. What about bottled water?
Packaged drinking water attracts 18% GST.
51. Are aerated drinks included?
Yes. Aerated drinks fall under the 40% slab.
52. How are sweets and confectionery taxed?
Most sweets and confectionery attract 18% GST, though unbranded mithai may remain exempt.
53. What about edible oils?
Edible oils are taxed at 5%.
54. How does GST affect fuel like LPG?
Domestic LPG is taxed at 5%, while commercial cylinders attract 18%.
55. What about kerosene?
PDS kerosene remains exempt.
56. Are books taxed?
Printed books are exempt from GST.
57. What about newspapers?
Newspapers and periodicals are exempt, but advertisements within them are taxed at 5% or 18%, depending on the medium.
58. How is stationery treated?
Stationery such as pens, pencils and notebooks is taxed at 12% or 18%.
59. What about printing services?
Printing of books and newspapers is exempt, while commercial printing attracts 18%.
60. Are digital services taxed?
Yes. Online subscriptions, streaming platforms and cloud services are taxed at 18%.
61. What about software?
Software products and services are taxed at 18%.
62. How are IT services treated?
IT consultancy and related services attract 18% GST.
63. Are exports covered?
Exports are zero-rated, meaning they are exempt from tax but still allow input credit.
64. What about SEZs?
Supplies to SEZs are also zero-rated.
65. How are imports handled?
Imports are taxed at the same rate as domestic supplies, in addition to customs duties.
66. Are charitable trusts exempt?
Charitable trusts remain exempt for their core activities, but commercial services are taxable.
67. What about religious services?
Religious services provided by places of worship are exempt.
68. How are government services taxed?
Most government services are exempt, but commercial activities by government bodies may attract GST.
69. What about lottery and betting?
Lotteries, betting and gambling are taxed at 40%.
70. Are second-hand goods taxed?
Second-hand goods are taxed only on the margin between purchase and resale price.
71. What about real estate resale?
Sale of ready-to-move-in flats or resale properties remains outside GST. Stamp duty and registration fees continue.
72. How are works contracts treated?
Works contracts, including those for government projects, are taxed at 18%.
73. What about transport of goods?
Goods transport by road is taxed at 5% without ITC or 12% with ITC.
74. How does GST apply to courier services?
Courier and logistics services are taxed at 18%.
75. What about financial markets?
Stockbroking, mutual funds and asset management services remain under the 18% slab.
Cargo containers stacked aboard a ship at the Jakarta International Container Terminal in Tanjung Priok Port on Aug. 7, 2025.
Str | Afp | Getty Images
The private market assets platform Yieldstreet struck a deal to recoup some of its legal expenses for an ill-fated series of marine loans — but its customers are less fortunate.
Yieldstreet is getting $5 million in a settlement with the borrowers who defaulted on the marine loans, the startup told customers last week in letters obtained by CNBC.
But since the company’s recovery cost “well exceeds the entire settlement amount,” it’s unlikely investors will see any repayment, Yieldstreet said. The deals are being closed and financial statements showing losses will be filed by February, the company said.
“We recognize this outcome is disappointing,” Yieldstreet said in the investor letter. “Yieldstreet pursued this extensive recovery effort because we are committed to exhausting every reasonable avenue for investor recovery.”
Yieldstreet put its investors into deals totaling $89 million in loans that were supposed to be backed by 13 ships, according to a lawsuit filed by the startup against the borrower in that project. The loans float money to companies that take apart ships for scrap metal; the vessels themselves are the collateral on the deals.
Yieldstreet lost track of the ships and then pursued the borrower, which it accused of fraud. While it won monetary awards in a number of jurisdictions outside the U.S., the borrower avoided paying the startup by concealing their assets, Yieldstreet said in the August investor letter.
The episode garnered media coverage and in 2020 contributed to the collapse of a high-profile partnership with BlackRock, the world’s largest asset manager.
The news of this latest loss follows CNBC’s report last month that Yieldstreet customers in four real estate deals worth $78 million have been wiped out, with roughly $300 million of other deals on watchlist for possible losses.
This year, Yieldstreet changed its CEO and announced a new business model that leans more on distributing private market funds provided by established Wall Street firms including Goldman Sachs and the Carlyle Group.
In a statement provided to CNBC, Yieldstreet said the investor letters refer to marine loan deals from 2018 and 2019 in an asset class that the firm no longer offers.
“While substantially less than the amounts invested by the funds and ultimately the investors, this settlement allows us to bring closure to litigation that could otherwise continue indefinitely,” Yieldstreet said in the statement.
The firm “takes its fiduciary responsibilities seriously and, throughout the recovery effort, advanced its own funds in an effort to protect its investors and has absorbed significant losses alongside its investors,” the startup said.
Bitter end
Arman, an investor who plowed $180,000 into marine loans in 2019, called the result a bitter disappointment. After receiving $16,000 from Yieldstreet in a class action settlement tied to the soured marine deals, he estimates that he lost more than 90% of his original investment.
CNBC is withholding Arman’s last name from publication at his request.
“My mother passed away in 2018, and I didn’t know where to put the money,” Arman said. “I thought this was somewhere safe to put it, and it wasn’t.”
The Yieldstreet marine loan deal was supposed to mature in six months, a relatively short-term investment.
Instead, it stretched into a six-year saga for Arman, who works as a firefighter and paramedic near the West Coast.
“They are now washing their hands of the whole thing,” he said. “They are taking $5 million to cover their own expenses, with no regard for investors.”
Business
Starbucks wants its cafes to be more welcoming — and accessible. Take a look at a recent renovation
As Starbucks revamps its U.S. locations, the coffee chain is trying to make its cafes welcoming to all through more inclusive design.
As part of its broader effort to bring back customers, the company has prioritized plans to give makeovers to roughly 1,000 locations by the end of 2026. It will sideline major store renovations and development in the meantime.
While the changes will vary based on the location, expect more seating, dark wood paneling and other tweaks that make its cafes cozier. The renovations will also include changes like less harsh lighting that won’t affect customers with light sensitivity.
“We’re uplifting more than 1,000 coffeehouses over the next year, blending our global heritage with local relevance to create spaces that are immersive, inclusive, and deeply human,” Dawn Clark, Starbucks senior vice president of coffeehouse design and concepts, said in a statement to CNBC.
“Whether it’s the laid-back warmth of the Palisades or the urban energy of Manhattan, intentional design encourages customers to stay longer, connect more, and return often — and translates into meaningful business impact,” Clark said.
Starbucks is planning to spend about $150,000 on each “uplift,” without closing the stores down. The company started with locations in New York, followed by cafes in Southern California.
The makeovers are intended to make the stores more welcoming, returning Starbucks to its prior status as a “third place” for customers to hang out between home and work. In recent years, Starbucks had lost that reputation, fueled by decisions like removing seats as mobile ordering become popular and getting rid of outlets to discourage lingering.
Under CEO Brian Niccol, the chain plans to reverse many of those decisions as it tries to break a sales slump. For example, he previously told employees in June that he plans to add back the 30,000 seats that had been removed from cafes.
But trying to appeal to a wider swath of customers isn’t new for the company. Starbucks first unveiled an accessible store design in early 2024, before Niccol’s tenure. At the time, the company said that the design took about two years and included input from baristas.
Take a look inside a recently renovated New York City cafe near Manhattan’s Union Square.
The Starbucks Union Square East location before the renovation
Source: Starbucks
Before the renovation, the location lacked many decorative touches, besides some large-scale photos of the chain’s Hacienda Alsacia, its coffee and research farm in Costa Rica.
With such sparse seating, the cafe’s concrete floors were more obvious. Harsh lighting didn’t help the store’s appearance either.
A large seating area now has even more seats, plus a gallery wall and lighting with less glare.
Source: Starbucks
The location now features much more seating near the entrance. Leather accents to the wraparound booth make the seats more comfortable. The tables are easily movable and at an accessible height for wheelchair users.
Starbucks also brought back the electrical outlets that disappeared in prior makeovers. Now customers who want to study or work from the location can charge their laptops or phones, encouraging them to stay longer.
Large area rugs bring a cozy touch, in addition to dampening some of the cafe’s ambient noise. Live plants also add to the homey vibe of the space.
Tweaks to the location include adding high-top tables and bar stools for more seating options.
Source: Starbucks
High-top tables, positioned closer to the barista bar, offer a seating option for customers looking to sit down with companions. The makeover adds 16 more seats to the location.
Starbucks also changed out its lightbulbs to soften the store’s lighting and reduce glare, giving it a warmer atmosphere. The improved lighting helps highlight an existing mural, seen on the right of the photo above.
Starbucks added a shelving unit that highlights its coffee beans.
Source: Starbucks
Behind the barista bar, the company added a large shelving unit that highlights bags of its coffee, plus decorative burlap sacks that hold beans. Touches of purple are a nod to the nearby New York University.
Customers waiting to pick up their drinks can sit off to the side. Previously, the area was a standing bar that wasn’t accessible to wheelchair users.
In addition to adding rugs, Starbucks also improved the location’s overall insulation to cut down on the clamor of a busy coffee shop. For baristas, the change means that conversations among customers are less likely to disturb their work, whether that’s hearing an order correctly or focusing on making a latte.
New Delhi: India’s festive season kicked off in September with Eid-e-Milad and Onam being celebrated across different parts of the country. Despite the festivities, stock market operations have continued without disruption. However, a bit of confusion did arise among traders and investors over whether the markets would remain open on September 8, after the RBI shifted the earlier-declared money market holiday from September 5 to September 8.
Both NSE and BSE will remain open on September 8, with trading beginning as usual at 9:15 AM, unaffected by the festive celebrations.
Will Markets Remain Open on September 8?
Yes, but only the money market. The Maharashtra government has shifted the money market holiday from September 5 to September 8, which was earlier aligned with Eid-e-Milad. This change was made to keep settlement cycles smooth on September 5. However, equity markets will remain unaffected. Trading will continue as usual on September 8 and on all other weekdays for the rest of September 2025. (Also Read: Notification On Handling Goods Stocked Under Higher GST Slabs Soon)
Because of the Eid-e-Milad settlement holiday on September 8, mutual fund transactions will see slight changes in processing. Any purchase or redemption requests made after the cut-off time on September 5 in liquid or debt schemes will now be processed on September 9.
Transactions like allotments and redemptions set for September 8 will be settled a day later, on September 9. The only exception is equity schemes, which will be processed as usual on September 8. Redemption fund payouts, however, will not take place on September 5 or September 8. (Also Read:Â Govt Launches Angikaar 2025 Campaign Under Pradhan Mantri Awas Yojana Urban 2.0)
Upcoming Stock Market Holidays in 2025
– October 2 – Markets closed for Gandhi Jayanti.
– No separate holiday for Dussehra, since it also falls on October 2 this year.
– October 22 – Markets closed the day after Diwali, as per the usual schedule.
Stock Market Holidays in November and December 2025
In the last two months of 2025, markets will close on two occasions. November 5 will be a holiday to mark Guru Nanak’s Birthday, and on December 25, trading will remain shut for Christmas. Christmas is one of the rare days when stock markets across the globe also stay closed.
Muhurat Trading 2025: Date and Time
Just like every year, a special Muhurat Trading session will be held on Diwali day, October 21, 2025. The session will run for one hour, from 6:15 PM to 7:15 PM, during the auspicious time of Lakshmi Puja. Though largely symbolic, Muhurat Trading is considered a lucky time to invest, and many traders and investors participate to mark the beginning of a prosperous year.
Alcaraz vs. Djokovic at the US Open: How each can win
Yieldstreet tell investors in $89 million worth of marine loans to expect losses
Starbucks wants its cafes to be more welcoming — and accessible. Take a look at a recent renovation
-
Sports1 week agoNew Zealand rugby player Shane Christie, who suffered multiple concussions, dies aged 39 – SUCH TV
-
Tech1 week agoTop CDC Officials Resign After Director Is Pushed Out
-
Fashion1 week agoPortugal Jewels Chiado boutique nominated for two global design awards
-
Sports1 week agoNew-look Pac-12 extends CW deal through 2031
-
Fashion1 week agoICE cotton futures fall for 2nd consecutive day on strong crop outlook
-
Sports1 week agoDolphins GM Chris Grier says fans threatened his family in string of vile emails after team’s lackluster year
-
Entertainment1 week agoYouTube TV viewers could lose access to Fox channels over contract dispute
-
Tech1 week agoReal-time technique directly images material failure in 3D to improve nuclear reactor safety and longevity