Which items moved from 12% to 5% GST under GST 2.0?

Several major categories moved from 12% down to 5% under GST 2.0 effective September 22, 2025. These include: soaps and detergents (HSN 3401, 3402), toothpaste and oral care products (HSN 3306), hair oils (HSN 3305), packaged fruit juices (HSN 2009), bicycles and bicycle parts below Rs 1,000 (HSN 8712, 8714), diagnostic kits like blood glucose test strips (HSN 3822), packaged spices in retail packs (HSN 0904-0910), packaged edible oils in retail containers, and certain footwear below Rs 1,500 that was previously classified at 12%. The complete list is in CBIC notification for GST 2.0.

Is readymade clothing below Rs 1,500 at 5% GST?

Yes. Readymade garments with a retail price below Rs 1,500 per piece continue to attract 5% GST under HSN 6101-6114. This price threshold was established before GST 2.0 and was maintained under the reform. If the retail price is Rs 1,500 or above, the rate is 18% GST. For garment retailers, the GST rate applicable is determined by the MRP of each garment. A shirt priced at Rs 999 attracts 5% GST; the same shirt at Rs 1,600 MRP attracts 18%. Always apply the rate based on the individual item price, not the order total.

Is Colgate toothpaste at 5% or 12% GST now?

Toothpaste and other dentifrices (HSN 3306 10 00) moved from 12% to 5% GST under GST 2.0, effective September 22, 2025. This applies to all toothpaste brands — Colgate, Pepsodent, Close-Up, Sensodyne, Patanjali Dant Kanti, and others. The same applies to toothbrushes (HSN 9603 21 00), which also moved from 12% to 5%. For FMCG distributors and retailers stocking oral care products, update your billing system to show 5% GST on these product categories for all invoices from September 22, 2025 onwards.

What is the GST rate on packaged Lifebuoy or Dettol soap?

Bath soaps including Lifebuoy, Dettol, Lux, Pears, Dove, and other branded bar soaps moved from 12% to 5% GST under GST 2.0. The HSN code for soap is 3401 and all soap products under this code are now at 5% GST. Liquid soaps and handwash (also under HSN 3401) are at 5%. Washing powder and detergents like Surf Excel, Ariel, Rin, and Tide fall under HSN 3402 and have also moved from 12% to 5%. This is a significant change for FMCG distributors who handle large volumes of these products.

Are bicycle parts at 5% GST?

Bicycles (HSN 8712) moved from 12% to 5% GST under GST 2.0. Bicycle parts and accessories (HSN 8714) also moved from 12% to 5% for parts priced below Rs 1,000. Parts priced above Rs 1,000 moved to 18% (up from 12%). This includes cycle chains, tyres, tubes, handlebars, saddles, pedals, and other components. For bicycle dealers and spare parts retailers, this means most of your inventory moved from 12% to 5% — update your catalog to reflect the correct rates. Higher-end accessories and premium bicycle parts above Rs 1,000 need to be updated to 18%.

What is the GST rate on fruit juices like Real and Tropicana?

Packaged 100% fruit juices (HSN 2009) moved from 12% to 5% GST under GST 2.0. This covers products like Real Fruit Juice, Tropicana, B Natural, and other packaged fruit juice brands containing natural fruit juice without carbonation or added sugar. Mixed fruit juices, mango pulp-based drinks, orange juice, and grape juice packs are all now at 5%. Note that sweetened, carbonated fruit-flavored drinks are at a different rate. Non-carbonated fruit-based drinks with added sugar (like squash or concentrate) are at 18%. Pure 100% juice products under HSN 2009 are at 5%.

How does the 5% GST rate affect restaurant services?

Non-AC restaurants in non-star hotels continue to charge 5% GST on food and beverages (SAC 996331). This was unchanged under GST 2.0. AC restaurants and restaurants in hotels with room tariff above Rs 7,500 per night charge 18% GST on food. Fast food chains like McDonald's, KFC, Domino's, and Subway operating in non-star hotel establishments are at 5% if they do not have AC, and 18% if they serve food in air-conditioned premises. Outdoor catering and food delivery services are at 18% GST. Takeaway orders from non-AC establishments are at 5% GST.

GST Rates & Lists

5% GST Items List 2026: Complete Product List After Rate Change

GST 2.0 expanded the 5% merit rate slab significantly. Items that were at 12% moved down to 5%, making essentials cheaper. Here is the complete list with HSN codes, effective September 22, 2025.

Himanshu25 March 2026 · 7 min read · updated 6 September 2026

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Key takeaways

GST 2.0 abolished the 12% slab on September 22, 2025; essentials moved down to 5% and non-essentials up to 18%.
Soaps, detergents, toothpaste, hair oils, packaged juices, bicycles and diagnostic kits all moved from 12% to 5%.
Garments, footwear and school bags priced below Rs 1,500 attract 5%; at or above that price the rate is 18%.
Transport services such as economy air travel, non-AC rail, cabs and auto-rickshaws stay at 5%, unchanged by GST 2.0.

What Is the 5% GST Slab and What Changed?

The 5% GST rate is called the merit rate — it applies to goods and services that are important for the general public but do not qualify for full exemption. Under GST 2.0 (effective September 22, 2025), the 5% slab was significantly expanded as a direct consequence of abolishing the 12% slab. Everything in the old 12% slab moved to either 5% or 18%. Essential consumer goods moved down to 5%; non-essential goods moved up to 18%.

This means a retailer in India who stocks soaps, juices, basic medicines, and packaged food can now charge less GST on many of their products — or keep the selling price the same and absorb a better margin. For consumers, goods in the 5% slab cost approximately 6% less than when they were at 12% (a Rs 100 product at 12% cost Rs 112; at 5% it costs Rs 105).

For businesses with large FMCG catalogs, the shift from 12% to 5% on multiple product categories requires a bulk update of GST rates in billing software. We will cover every item with its HSN code so you can identify which products need to be updated. Use our HSN code finder to verify the current rate for any product.

Food Items at 5% GST (Moved from 12%)

A large number of packaged and processed food items moved from 12% to 5% under GST 2.0. Here are the major categories with their HSN codes:

Packaged cereals and grains (HSN 1001–1008): Branded and packaged wheat (atta in packages above 25kg moved from 5% to 0%, but smaller retail packs remain at 5%), branded rice above 5kg packs, and mixed grain packages. Plain unprocessed grain has always been at 0%; packaged branded variants were at 12% and are now at 5%.

Sugar and sugar products (HSN 1701–1702): Packaged refined sugar, jaggery blocks, and sugar syrups in retail packs were at 12% and are now at 5%. Plain bulk sugar was always at 5%.

Edible oils (HSN 1507–1515): Packaged groundnut oil, sunflower oil, mustard oil, rice bran oil, and coconut oil in retail containers were at 12% and are now at 5%. Bulk/loose edible oils remain at 5% (no change).

Packaged spices (HSN 0904–0910): Branded packaged spices — turmeric, cumin, coriander, pepper, cardamom, cloves — in retail packs moved from 12% to 5%. Unpackaged fresh spices were always at 0%.

Fruit juices (HSN 2009): Packaged 100% fruit juices without added sugar moved from 12% to 5%. Mixed fruit juices, mango juice, orange juice, and grape juice packs are all now at 5%. Note: sweetened fruit drinks with carbonation are at 40% (not this category).

Packaged namkeen and snacks (HSN 2106): Ready-to-eat namkeen, bhujia, and savory snacks in retail packs moved from 12% to 5%. This benefits mass-market snack brands as well as small-scale namkeen manufacturers.

Medicines and Healthcare Products at 5% GST

The pharmaceutical category has always been at 5% for most OTC medicines, but GST 2.0 brought some previously 12% items down to 5%:

OTC medicines and common drugs (HSN 3003, 3004): Most prescription and over-the-counter medicines were and continue to be at 5% GST. Tablets, capsules, syrups, and injections under HSN 3004 are at 5%. Certain specialty drugs that were at 12% have been moved to 5%.

Ayurvedic, Unani, Siddha medicines (HSN 3003 90): Patent ayurvedic medicines, herbal tablets, churna, and formulations are at 5% GST. This was unchanged from before, but confirmed under GST 2.0 notifications.

Diagnostic kits (HSN 3822): Blood glucose test strips, pregnancy test kits, COVID test kits, and other diagnostic reagents moved from 12% to 5%. This directly reduces the cost of self-diagnostic healthcare.

First-aid supplies (HSN 3005): Adhesive bandages, wound dressings, antiseptic gauze, and cotton wool for medical use are at 5%. Moved from 12% under GST 2.0.

Wheelchairs and mobility aids (HSN 8713): Manually propelled wheelchairs, walking sticks, crutches, and artificial limbs are at 5% GST (unchanged — always been a merit rate item).

Contraceptives (HSN 3006 60): All contraceptives remain at 0% GST — completely exempt. This was not changed under GST 2.0.

Clothing and Footwear at 5% GST

Apparel and footwear have a price-based GST structure. The 5% rate applies below a price threshold, with higher rates for premium items:

Readymade garments below Rs 1,500 per piece (HSN 6101–6114): T-shirts, shirts, sarees, salwar kameez, trousers, and other garments with a retail price below Rs 1,500 per piece are at 5% GST. HSN 6109 covers T-shirts and vests; HSN 6105 covers men's shirts; HSN 6106 covers women's blouses. If the MRP exceeds Rs 1,500, the rate is 18%.

Knitted fabrics below Rs 1,500 (HSN 6001–6006): Knitted and woven fabrics for garment manufacturing below the price threshold are at 5%.

Footwear below Rs 1,500 per pair (HSN 6401–6405): Shoes, sandals, slippers, and other footwear with a retail price below Rs 1,500 per pair are at 5% GST. This covers the mass market footwear segment entirely — budget chappals, school shoes, basic sneakers. HSN 6404 (footwear with rubber soles) and HSN 6405 (other footwear) are the primary codes. Footwear above Rs 1,500 per pair is at 18%.

School bags and children's bags (HSN 4202): School bags priced below Rs 1,500 are at 5% GST. Above that price, 18% applies.

Price thresholds decide the rate

For apparel and footwear retailers, the price-based threshold creates a billing complexity: the same product at different price points attracts different GST rates. Make sure your billing software enforces this rule. In myBillPlease, set up products with the price range clearly defined so the correct rate is applied at the time of sale.

Transport Services at 5% GST

These services have been at 5% and remain unchanged under GST 2.0

Economy class air travel (HSN SAC 996312) — unchanged at 5%
Railway tickets in non-AC coaches (SAC 996311) — unchanged at 5%
Cab and taxi services via apps like Ola, Uber (SAC 996411) — 5% without ITC
Auto-rickshaw services (SAC 996411) — 5%, same as before
City bus services operated by state transport undertakings — 5%
Rent-a-cab services for daily hire (SAC 996411) — 5% without ITC
Goods transport by road for non-GTA operators (SAC 996511) — 5%
Inland waterways transport (SAC 996521) — 5%
Contract carriage for pilgrimages and tourism (SAC 996411) — 5%
Courier services up to Rs 1,000 per consignment — 5%

Other Key Items at 5% GST — Including Items Moved from 12%

Several important product categories moved from 12% to 5% under GST 2.0 that do not fit neatly into the above sections:

Soaps and detergents (HSN 3401, 3402): Bath soaps (Lifebuoy, Dettol, Lux, Pears), bar soaps, liquid soaps, washing powder (Surf, Ariel, Rin), and liquid detergents moved from 12% to 5%. HSN 3401 covers soap; HSN 3402 covers synthetic detergents. For FMCG distributors, this category is significant — update all soap and detergent products in your billing catalog.

Toothpaste and oral care (HSN 3306): Toothpaste (Colgate, Pepsodent, Close-Up), toothbrushes (HSN 9603), and mouthwashes moved from 12% to 5% under GST 2.0. HSN 3306 10 00 specifically covers dentifrices (toothpaste).

Hair oils (HSN 3305): Coconut hair oil, herbal hair oil, and medicated hair oil in retail packs moved from 12% to 5%. HSN 3305 covers preparations for use on hair.

Bicycles (HSN 8712): All non-motorized bicycles — including children's cycles, adult cycles, and geared bicycles — moved from 12% to 5% GST. Bicycle parts and accessories (HSN 8714) also moved from 12% to 5% for parts priced below Rs 1,000.

LPG cylinders for household use (HSN 2711): Domestic LPG cylinders remain at 5% GST (unchanged). This was one of the merit rate items specifically protected under GST 2.0.

Solar energy equipment (HSN 8541): Solar panels, solar cells, and solar lamps remain at 5% GST. The government confirmed this under GST 2.0 to continue supporting the renewable energy sector.

Use the HSN code finder to verify the current rate for any specific product. Type the product name and the tool will show the HSN code and applicable GST rate based on post-GST 2.0 classifications.

Updating Your Billing for 5% GST Items

If your business sells any of the products that moved from 12% to 5%, you need to update your product rates in your billing software. Here is what we recommend doing in myBillPlease:

Identify affected products: The main categories that moved from 12% to 5% are: soaps and detergents (HSN 3401/3402), toothpaste (HSN 3306), hair oils (HSN 3305), fruit juices (HSN 2009), bicycles (HSN 8712), and diagnostic kits (HSN 3822). If you sell any of these, update your product catalog.

Bulk update via CSV: For stores with large catalogs, export your product list from myBillPlease as CSV. In Excel, filter products by their current GST rate (12%) and change them to 5% for the affected HSN codes. Re-import the CSV and all product rates update in one step.

Test before invoicing: Create a test invoice for one product from each updated category to verify the GST calculation is correct at 5% before generating real invoices.

GSTR-3B reporting: Your GSTR-3B for October 2025 (for September transactions) will have both old and new rates in the same month — transactions before September 22 at 12%, transactions from September 22 at 5%. Make sure your GST filing shows the correct split. myBillPlease GSTR reports automatically split by invoice date.

Frequently asked questions

Which items moved from 12% to 5% GST under GST 2.0?: Several major categories moved from 12% down to 5% under GST 2.0 effective September 22, 2025. These include: soaps and detergents (HSN 3401, 3402), toothpaste and oral care products (HSN 3306), hair oils (HSN 3305), packaged fruit juices (HSN 2009), bicycles and bicycle parts below Rs 1,000 (HSN 8712, 8714), diagnostic kits like blood glucose test strips (HSN 3822), packaged spices in retail packs (HSN 0904-0910), packaged edible oils in retail containers, and certain footwear below Rs 1,500 that was previously classified at 12%. The complete list is in CBIC notification for GST 2.0.
Is readymade clothing below Rs 1,500 at 5% GST?: Yes. Readymade garments with a retail price below Rs 1,500 per piece continue to attract 5% GST under HSN 6101-6114. This price threshold was established before GST 2.0 and was maintained under the reform. If the retail price is Rs 1,500 or above, the rate is 18% GST. For garment retailers, the GST rate applicable is determined by the MRP of each garment. A shirt priced at Rs 999 attracts 5% GST; the same shirt at Rs 1,600 MRP attracts 18%. Always apply the rate based on the individual item price, not the order total.
Is Colgate toothpaste at 5% or 12% GST now?: Toothpaste and other dentifrices (HSN 3306 10 00) moved from 12% to 5% GST under GST 2.0, effective September 22, 2025. This applies to all toothpaste brands — Colgate, Pepsodent, Close-Up, Sensodyne, Patanjali Dant Kanti, and others. The same applies to toothbrushes (HSN 9603 21 00), which also moved from 12% to 5%. For FMCG distributors and retailers stocking oral care products, update your billing system to show 5% GST on these product categories for all invoices from September 22, 2025 onwards.
What is the GST rate on packaged Lifebuoy or Dettol soap?: Bath soaps including Lifebuoy, Dettol, Lux, Pears, Dove, and other branded bar soaps moved from 12% to 5% GST under GST 2.0. The HSN code for soap is 3401 and all soap products under this code are now at 5% GST. Liquid soaps and handwash (also under HSN 3401) are at 5%. Washing powder and detergents like Surf Excel, Ariel, Rin, and Tide fall under HSN 3402 and have also moved from 12% to 5%. This is a significant change for FMCG distributors who handle large volumes of these products.
Are bicycle parts at 5% GST?: Bicycles (HSN 8712) moved from 12% to 5% GST under GST 2.0. Bicycle parts and accessories (HSN 8714) also moved from 12% to 5% for parts priced below Rs 1,000. Parts priced above Rs 1,000 moved to 18% (up from 12%). This includes cycle chains, tyres, tubes, handlebars, saddles, pedals, and other components. For bicycle dealers and spare parts retailers, this means most of your inventory moved from 12% to 5% — update your catalog to reflect the correct rates. Higher-end accessories and premium bicycle parts above Rs 1,000 need to be updated to 18%.
What is the GST rate on fruit juices like Real and Tropicana?: Packaged 100% fruit juices (HSN 2009) moved from 12% to 5% GST under GST 2.0. This covers products like Real Fruit Juice, Tropicana, B Natural, and other packaged fruit juice brands containing natural fruit juice without carbonation or added sugar. Mixed fruit juices, mango pulp-based drinks, orange juice, and grape juice packs are all now at 5%. Note that sweetened, carbonated fruit-flavored drinks are at a different rate. Non-carbonated fruit-based drinks with added sugar (like squash or concentrate) are at 18%. Pure 100% juice products under HSN 2009 are at 5%.
How does the 5% GST rate affect restaurant services?: Non-AC restaurants in non-star hotels continue to charge 5% GST on food and beverages (SAC 996331). This was unchanged under GST 2.0. AC restaurants and restaurants in hotels with room tariff above Rs 7,500 per night charge 18% GST on food. Fast food chains like McDonald's, KFC, Domino's, and Subway operating in non-star hotel establishments are at 5% if they do not have AC, and 18% if they serve food in air-conditioned premises. Outdoor catering and food delivery services are at 18% GST. Takeaway orders from non-AC establishments are at 5% GST.