- What exactly changes on Sep 22
- Consumer lens: where prices move
- Merchant checklist (POS, invoices, ITC)
- Edge cases: refunds, cess & communication
The short
- New slabs: Two main GST rates—5% and 18%—replace the earlier multi-slab structure; 40% applies for sin/luxury goods.
- When: Revised rates are notified to take effect September 22, 2025.
- Not everything moves: Some categories shift down (daily-use items, select durables); others stay put or move up based on fitment.
- Beware viral claims: CBIC has clarified there are no special ‘transition freebies’ beyond notified provisions—trust official updates, not forwards.
What changes on Sep 22
- Two-tier structure becomes the default (5% / 18%), with a 40% rate for specified sin/luxury goods.
- Fitment changes move selected daily-use items and small appliances into the 5% bucket; services realignment follows notified lists.
- Exemptions/zero rates continue as notified; cess remains applicable where specified.
Heads-up Not all products move to 5%. Always check your HSN/SAC against the official fitment list before repricing.
Consumer lens: quick map
Likely relief
- Selected everyday FMCG (per notified list)
- Some small appliances / durables moved to 5%
- Certain services with reduced fitment
Unchanged / higher
- Items that remain at 18% post-fitment
- Sin/luxury categories at 40% (as specified)
- Goods/services outside GST scope (state levies may apply)
Merchant checklist (do these now)
- Update POS/ERP: Map new rates to all SKUs (HSN/SAC), ensure e-invoicing reflects revised tax codes.
- Reprice & re-label: Print fresh shelf labels; refresh catalog/website. Keep proof of old vs new price logic.
- Invoices & returns: For sales on/after Sep 22, issue invoices at new rates; set SOPs for returns/exchanges crossing the changeover.
- ITC & cess hygiene: Reconcile open credits; clarify treatment of compensation cess balances where applicable.
- Communicate clearly: Train staff and publish a customer note explaining which items moved and when.
Pro move: Run a weekend dry-run on a staging POS/ERP, then flip rates store-wide at opening on Sep 22.
Edge cases & FAQs
- Are there blanket ‘transition benefits’? No. Ignore viral forwards; follow CBIC/PIB notifications only.
- What about pre-paid orders delivered after Sep 22? Apply the rate based on the time of supply rules and notified guidance; consult your tax advisor for specifics.
- Will every item at 12%/28% move? Not necessarily. Movement is per the official fitment list; some may remain at 18% or fall under exemptions/cess.