GST Slabs Redefined: Stay Compliant Using Zoho Books!

GST Slabs Redefined: Stay Compliant Using Zoho Books!

Hello Everyone!

The Government of India is rolling out new GST rates, a major reform aimed at simplifying the current tax structure starting 22 September 2025. GST will move from four slabs (5%, 12%, 18%, 28%) to two main slabs (5% and 18%), plus a special 40% slab for luxury and sin goods. 

To support updating this, Zoho Books offers complete GST management from automatically updating the new GST rates and applying the updated tax rates for the invoices and recurring invoices. You can stay compliant, reduce manual errors, and make financial management easier for businesses. 

What’s Changing in GST 

The new GST reforms provide relief for both households and businesses in India. These changes affect GST rates across products and services, impacting how businesses manage invoicing and compliance.

You can review the revised GST rates for different products and services in the table below.

Food & Household Sector

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
UHT milk, pre-packaged chena/paneer, all Indian breads
-
NIL
Soaps, shampoos, toothbrushes, toothpaste, tableware, bicycles
-
5%
Packaged namkeens, bhujia, sauces, pasta, chocolates, coffee, preserved meat
12% / 18%
5%
TVs (LCD/LED >32’), ACs, dishwashers
28%
18%

Home Building & Materials

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Cement
28%
18%
Marble/travertine blocks, granite blocks, sand-lime bricks
12%
5%
Bamboo flooring/joinery, packing cases & pallets (wood)
12%
5%

Automobile Sector

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Small cars, two-wheelers ≤350cc
28%
18%
Buses, trucks, three-wheelers, auto parts
28%
18%

Agriculture Sector

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Tractors
12%
5%
Tires and parts
18%
5%
Harvesters, threshers, sprinklers, drip irrigation, poultry & beekeeping machines
12%
5%
Bio-pesticides and natural menthol
12%
5%

Service Sector

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Hotel stays up to ₹7,500/day
12%
5%
Gyms, salons, barbers, yoga
18%
5%

Toys, Sports & Handicrafts

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Handicraft idols & statues
12%
5%
Paintings, sculptures
12%
5%
Wooden/metal/textile dolls & toys
12%
5%

Education Sector

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Geometry boxes, school cartons, trays12%5%

Medical Sector

Products / Items
Tax Slab (From 1 July 2017)
New Tax Slab (From 22 Sept 2025)
Life-saving drugs, diagnostic kits
12%
0%
Other medicines (Ayurveda, Unani, Homeopathy)
12%
5%
Spectacles and corrective goggles
28%
5%
Medical oxygen, thermometers, surgical instruments
12–18%
5%
Medical, dental, and veterinary devices
18%
5%

Learn more about updates in GST rate for more goods/services.

Update to new GST Rates in Zoho Books

Important Note: The GST tax rate update scheduling banner will be available in Zoho Books from 6 PM on September 18, 2025.

Zoho Books makes it easy to switch to the new GST rates. You can review the new tax rates for all items based on their HSN Codes, Composite Items, and any recurring transactions. Once reviewed, you can schedule the update. Zoho Books will then apply the new GST rates across all transactions. To review and update:
  1. Go to your Zoho Books organisation’s Home page.
  2. Click View Details from the GST Slab Update banner.
  3. Click Review Updates to apply the new tax rates automatically.
  4. Review the tax changes and click Proceed to Schedule Update.
  5. If your organisation has more than 250 items, the preview will not be available.
    1. You can download the Tax Update file from the generated link to view the new tax rates for all items, along with their HSN Codes, Composite Items, and Recurring Transactions.
  6. Once you have reviewed the items and tax rates, click Confirm & Schedule.
  7. Select your preferred date for updating the tax rates.
Date
How It Is Updated
22 September 2025 (Monday)
New tax rates will be updated on this date. Any transaction created on or after this date will have the new GST rates applied.
20 September 2025 (Saturday)
New tax rates will be updated on this date. Any transaction created after this date will have the new rates, but they will not be effective yet.
21 September 2025 (Sunday)
New tax rates will be updated on this date. Any transaction created after this date will have the new rates, but they will not be effective yet.

Note: If you create a transaction dated before the scheduled update, the new tax rate will be applied by default. You can manually change the tax rate from the item's Edit page if needed.
  1. Check the I agree to manually update the tax rates for all my items and to ensure they are correct for all transactions created until September 22, 2025.
  2. Click Confirm & Schedule to schedule the update.
Alternatively, you can update the new tax rates manually. To do so, export all your items, composite items, and recurring transactions, update the new tax rates in a spreadsheet, and re-import the updated files into Zoho Books.

What Happens After GST Rates Are Updated

Once the new GST rates are updated:
  1. The Tax Rates under Taxes in Settings will display both the old and new tax rates.
  2. Items will be updated with new tax rates based on their selected HSN Code. For items without an HSN Code, you must update the new tax rates manually.
  3. Any transaction created after the update will have the new tax rate set as the default. You can still manually change the tax rate from the transaction’s Edit page if needed.
What If you Miss the GST Update

You can always update to new tax rate from the GST update banner in Zoho Books. However, failing to update the GST tax rates may cause compliance issues while filing your GST returns.

Update your tax rates now to stay compliant, ensuring all transactions reflect the new GST slabs in Zoho Books.

If you have any questions or insights to share, please leave a comment below. We will be happy to assist you!

Regards,
The Zoho Books Team

    • Recent Topics

    • Urgent Issue – Draft Reply Fails to Save When Message Contains Code Snippets

      Hello Zoho Desk Support Team, We are experiencing a critical issue in the ticket reply editor that is directly impacting our support operation. Whenever we write a reply containing code snippets, URLs, or technical content (for example, terms like “curl
    • Introducing parent-child ticketing in Zoho Desk [Early access]

      Hello Zoho Desk users! We have introduced the parent-child ticketing system to help customer service teams ensure efficient resolution of issues involving multiple, related tickets. You can now combine repetitive and interconnected tickets into parent-child
    • Zoho CRM Meetings Module Issues

      We have a use-case that is very common in today's world, but won't work in Zoho CRM. We have an SDR (Sales Development Rep) who makes many calls per day to Leads and Contacts, and schedules meetings for our primary Sales Reps. He does this by logging
    • Huge confusion in zoho crm and zoho analytics

      Context => We have reporting based hierarchy in zoho crm and basically there will be one sales head and couple sales managers and 10 pre sales excutives divided between 2 sales managers we have maintained that in zoho crm and there is complex reporting
    • information on a suggestion how to treat old records in the - pipeline deals, notes, activities (tasks- events-calls) and emails etc.

      Hi, I would like information or a suggestion on how to treat old records in the - pipeline deals, notes, activities (tasks- events-calls) and emails etc. ? As each option (pipeline deal, notes, activities, emails etc.) counts as a record and as we advance
    • Inventory batch details

      Hi there, I'm trying to get the batch details of an item, here's what I've done so far. I've sent cUrl request to the below endpoint and I get a successful response. Within in the response I find the "warehouses" property which correctly lists all the
    • Automated entries past the current month in a calendar report

      Hi all, I have an autmation problem. I have a from which on succesfull entry adds either 5 or 10 more of these entries with a slight change so our customers can see it throug a calendar report on the webiste. The entry put in manually shows up perfectly
    • What's New in Zoho POS - April 2026

      Hello everyone, Welcome to Zoho POS’s monthly update, where we share our latest feature updates, enhancements, events, and more. Let’s take a look at how April went. Access and manage other web applications in Zoho POS with Web Tabs You can now access
    • Zoho Trident Windows - Streams Not Visible

      Namaste We’re having an issue with Streams not being visible in Trident (Windows), which is important for us as we share many emails internally. It appears that the feature to show Streams above the Inbox folder, as seen in the default mailbox view, is
    • Search through email contents

      Is there a way to search through the email history of a lead? Meaning if among the 50 emails to a lead about different topics I want to find all the ones with the word "pizza" in the body of the email, is that possible? Thanks for your help, Hanan
    • Adding Multiple Products (Package) to a Quote

      I've searched the forums and found several people asking this question, but never found an answer. Is ti possible to add multiple products to a quote at once, like a package deal? This seems like a very basic function of a CRM that does quotes but I can't
    • Early Access: Check Printing in Zoho Books

      Hello Everyone,   Are you constantly writing checks to pay your vendors?   We've got a great news to share with you! You can now pay your vendors by writing and printing a check directly from Zoho Books. The feature is ready and we'll be rolling it out to our customers in phases.  It is available in the  US Edition of Zoho Books and also in the Global edition, where the country is selected as USA and the currency is USD.   Here’s a summary of what’s possible:   1. Write and print a check. 2. Make
    • Trash - Delete All

      We use 6 inbox shared (via IMAP). The Trash bin contains a lot of messages. Is it possible to delete them all permanently? Is there a rule to empty trash bin after xx days? Deleted permanently message in TeamInBox are deleted permanently in the related
    • Internal mails on our company domain (managed by Zoho) do not get delivered

      Hi last week Thursday and Friday a colleague had sent me two emails which did not show up at all in my inbox, spam or anywhere else. What this a problem with Zoho mail in general or did this affect just us? From the forum is reads like many problems had
    • Upgraded sentiment analysis model for more accurate detection

      Hello everyone! Sentiment Analysis in Zia is being upgraded to a newer model to improve how customer sentiment is detected and interpreted. This transition is aimed at getting better contextual understanding across all supported channels. As part of this
    • Paste Options don't work

      I've always wondered about this, as I've experienced this issue for quite some time now. Why don't the right-click Paste options work properly in Zoho Writer? I can use Ctrl + V without any issue, but if I right-click and use one of the Paste menu options,
    • What's New - April 2026 | Zoho Backstage

      Hello everyone, April has been focused on improving speed, reliability, and overall platform performance. Here are a few updates from this month. Safaricom M-PESA for event payments in Kenya Organizers hosting events in Kenya can accept payments through
    • Native QuickBooks integration for Zoho CRM: Connecting sales and finance

      Greetings, I hope all of you are doing well. We're excited to announce Zoho CRM's integration with QuickBooks Web, which is designed to synchronize your CRM data with your QuickBooks accounting records and bridge the gap between sales and finance. This
    • Enrich your contact and company details automatically using the Data Enrichment topping

      Greetings, I hope you're all doing well. We're happy to announce the latest topping we've added to Bigin: The Data Enrichment topping, powered by WebAmigo. This topping helps you automatically enhance your contact and company records in Bigin. By leveraging
    • Adding contact to account automatically in helpdesk?

      Hello, We're using Zoho desk to managed our helpdesk tickets.  Is there a way to add contacts (email senders) automatically to an account based on their emails domain name?  For example:  when UserA@companyx.com send an email to our support mailbox, a trigger or a workflow would automatically add the userA to Companyx account if it does exists  Please advise Thank you 
    • Consolidate your workflows and be more productive - Introducing Multiple Conditions in Workflow Rules

      Workflow rules in Zoho CRM helps you automate your routine tasks and save time. Usually, while creating a workflow rule, you'd provide the basic details of the rule, specify when the rule should be triggered and associate set of actions to be executed whenever the rule criteria is met. And you’d create a new workflow rule for every new automation that you required.  Not anymore! You can now combine multiple conditions and the corresponding actions to follow in a single workflow rule. Let’s look at
    • DYK 4 - Reactions

      Did You Know that you can react to comments in Zoho Projects? In a collaborative workspace, comments come in throughout the day. Some need a detailed reply, others just need to be acknowledged, and the more the replies, the harder it is to follow the
    • How has Zoho still not resolved Daylight Savings Time?

      According to these forums Zoho has been working on DST for 12 years. Totally unacceptable. Am I missing something? Why are other customers who observe DST not screaming for this to be fixed? Are there reasonable workarounds? This is a must-have for
    • Overview on users IMAP settings

      We have about 30 users who all have the channels/email/email configuration/IMAP integration/O365 enabled and emails are synchronized. Here my problem: Passwords for the email accounts are expiring on individual bases and most of the users forget to update
    • Digest Avril - Un résumé de ce qui s'est passé le mois dernier sur Community

      Chers utilisateurs, Un nouveau mois riche en nouveautés vient de filer à toute vitesse chez Zoho Community France ! Jetons un œil à ce qu’il s’est passé. Des webinaires à votre image avec Zoho Webinar Vos pages d’inscription sont souvent le premier point
    • Introducing SlyteUI : From Idea to a Working Interface in Minutes

      SlyteUI is now live across all DCs as of 4th May 2026! Hello everyone! Are you spending hours building basic UIs? Does even the smallest customization feel like a major task? CRM customization should feel intuitive and straightforward, not time consuming
    • Integrate QuickBooks with Bigin and streamline your sales and accounting!

      If your business relies on Bigin for customer management and QuickBooks for accounting and invoicing, this new integration is here to make your operations more efficient. By connecting these two platforms, you can now manage your CRM and financial processes
    • Updates to native forms in Zoho LandingPage

      Hello all, We have a couple of updates to native forms in Zoho LandingPage that we think you will find useful. Country code on phone number fields You can now enable a country code dropdown on the phone number field. Visitors select their country code
    • Import KB template OR Export template for zoho desk?

      Greetings. Can you tell me if there is a way to get an EXPORT of my KB articles? OR is there a template you supply for importing KB articles into my zoho desk? I am looking for a method of understanding what fields can be imported, and what their possible
    • Set Custom Icon for Custom Modules in new Zoho CRM UI

    • [Bug] WebAuthn passkey registration blocked on rpIds with TLDs longer than 6 characters (.accountant, .technology, etc.) — isValidDomain regex too strict

      Hi, Filing on behalf of an enterprise customer where Zoho Vault is deployed across the company. The Chrome extension blocks WebAuthn passkey registration on legitimate sites whose Relying Party ID (rpId) has a TLD longer than 6 letters. This affects every
    • Customer Support Portal

      Hi, As I am dealing with and waiting for help with a serious Zoho Mail issue, I tried to submit requests and manage my requests by logging into the Customer Support Portal, but it keeps saying that I do not have a valid email address and cannot login.
    • Rich Text Type Format for Notes Field

      Has it been discussed or is there a way to insert a table in the notes field? We sometimes receive information in a table format, and it would be beneficial to have it in the same format as a note on a record.
    • Can not send or reply to mails

      Hello, I can not send mails or reply. If I try to send a mail i get "Unable to send message;Reason:553 Replaying disallowed. Invalid Domain - invata-programare.ro" Can you help me, please? Thank you!
    • Urgent: Subscription Correction Needed - Org ID 805493328

      Dear Zoho Billing Team, I am writing to request an urgent correction regarding a recent renewal for my account, Master Bed Trading (Organization ID: 805493328). Due to a mistake during the checkout process, I accidentally renewed our Zoho Forms subscription.
    • Zoho Sites Designer/Developer

      Hello, Besides Upwork, are there any other places to find experienced Zoho Sites designers/developers? I couldn't seem to find a page on Zoho that lists these professionals that are certified with Zoho Sites.
    • HTML PDF Templates / Build From Scratch option not visible for Custom Modules

      Hi everyone, I am working with Zoho Books Custom Modules and trying to create a custom 4x4 package label PDF template using HTML/CSS. According to the official Zoho Books documentation for HTML PDF Templates, there should be an option like: Settings →
    • Atlassian Jira integration live in Zoho Apptics

      Tracking crashes and fixing them often happen with different tools. You might use Zoho Apptics to track crashes and understand what went wrong and Jira to resolve those issues. If you use both, you're probably familiar with the manual effort involved
    • Marketing Tip #32: Improve SEO and customer confidence with an FAQ section

      Before making a purchase, customers often have simple questions about delivery times, returns, product usage, or sizing. If they can’t quickly find answers, they may leave your store without buying. Adding a clear FAQ (Frequently Asked Questions) section
    • Activate python application

      Is it possible for a deluge code to activate a python application ? Say i create a deluge program, in that deluge program, i need it to activate a python application stored on my drive Would that be possible, and if so, what would the code look like
    • Next Page