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, trays | 12% | 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% |
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:
- Go to your Zoho Books organisation’s Home page.
- Click View Details from the GST Slab Update banner.
- Click Review Updates to apply the new tax rates automatically.
- Review the tax changes and click Proceed to Schedule Update.
- If your organisation has more than 250 items, the preview will not be available.
- 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.
- Once you have reviewed the items and tax rates, click Confirm & Schedule.
- 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.
- 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.
- 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:
- The Tax Rates under Taxes in Settings will display both the old and new tax rates.
- 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.
- 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
ZIA in Zoho Cliq
Is It possible to use the ZIA feature from Zoho Analytics in the Zoho Cliq?
Automating CRM backup storage?
Hi there, We've recently set up automatic backups for our Zoho CRM account. We were hoping that the backup functionality would not require any manual work on our end, but it seems that we are always required to download the backups ourselves, store them,
Multiple upload field CRM
I desperately need the functionality to add more than one upload field to web to contacts form. How can I do this?
Critical Need for Global Search in Zoho FSM
Hello Zoho FSM Team, We are currently in the process of deciding whether to fully transition to Zoho FSM for managing our field service operations. At present, our team actively uses Zoho Desk (with over 50 users) and Service Fusion, which we are considering
Collections Management: # 1 Payment Collection is All About Convenience
"Sir, can you come tomorrow? My manager wasn't available for the cheque sign-off", the customer said, avoiding eye contact. Ravi forced a polite smile, but inside, he felt a sense of defeat. He had already visited the customer's office twice in the last
Can the Product Image on the Quote Template be enlarged
Hello, I am editing the Quote Template and added ${Products.Product Image} to the line item and the image comes up but it is very tiny. Is there anyway that you can resize this to be larger? Any help would be great! Thanks
Audio/video quality issues with Zoho Meeting – Any roadmap for improvement?
Hi Zoho Team, We’ve been using Zoho Meeting for both internal and external meetings, and unfortunately, the experience has been consistently poor. The video and audio quality are so unreliable that it often renders meetings ineffective—especially with
Cash based businesses cannot use the new fixed asset module
Hello all, If your bookkeeping is reporting in cash, you cannot use the new fixed acid module, as it does all the depreciation bookings accrual and not cash. This is definitive and you can't turn them into a cash booking. They will never appear in your
Zoho Learn & Zoho Connect
Hi, Is there a way to sync the knowledge base we have in Zoho Learn with the manuals section is Zoho Connect? Thanks,
Apply Payment Received Amount Zoho Books Invoice
Hello team here is the sample code How can apply the payment received record over a unpaid zoho books invoice. //......................... paymentID = customer_payment.get("payment_id"); organizationID = organization.get("organization_id"); paymentmaplist
Zoho Books Finance Modules Not Accessible in Zoho CRM Mobile App
We have integrated Zoho CRM with Zoho Books using the Zoho Finance Suite integration. In the CRM web version, we can see the Finance modules (Estimates/Quotes, Invoices, Sales Orders, Items, Payments) and are able to create invoices and quotes directly
Making preview pane "stick"
Hello, Is it possible to fix/dock the preview pane so that it's always there? The modern monitors are all very wide so there's plenty of space horizontally. Having the preview pane disappearing and appearing again when you click on an email message in
[Live Webinar] New in Zoho WorkDrive: AI enhancements, Data Loss Prevention, Version Controls, and more
Hello everyone, We're excited to bring you another round of powerful updates in Zoho WorkDrive! Join us on May 15 for an exclusive live webinar where we’ll unveil the latest features designed to enhance your team’s productivity, collaboration, and data
Live webinar: Streamlining legal operations: Leveraging Zoho WorkDrive for law firm success
Hello everyone, Managing legal documents across departments and jurisdictions can be complex, but it doesn’t have to be. Join us on March 6 for an exclusive webinar where we’ll show you how Zoho WorkDrive empowers legal teams to stay compliant, organized,
Live Webinar: Optimizing back-office operations in the manufacturing industry to maximize profitability
Hello everyone, We’re excited to invite you to our upcoming live webinar on February 6! Discover how Zoho WorkDrive can help manufacturing businesses optimize back-office operations, improve efficiency, and boost profitability. Our product experts will
Live webinar: 2024 recap of Zoho WorkDrive
Hello everyone, We’re excited to invite you to our year-end live webinar! This session will take you through the transformative features and updates we’ve introduced in Zoho WorkDrive this year, helping you streamline document management like never before.
Live webinar: Explore WorkDrive's seamless integrations with key Zoho apps
Hello everyone, We’re excited to invite you to our upcoming live webinar, where we'll delve into the seamless integration of WorkDrive with other key Zoho applications! This is a fantastic opportunity to enhance your productivity and streamline your workflows
Live webinar: Getting the most out of WorkDrive in Zoho Workplace
Hello everyone, We’re excited to invite you to our upcoming live webinar, where we’ll explore how to maximize your use of WorkDrive as part of the Zoho Workplace bundle. This is a fantastic opportunity to elevate your productivity and streamline your
Live webinar: Mastering data migration, organization, and team collaboration
Hello everyone, We’re excited to invite you to our upcoming live webinar! Discover how to seamlessly migrate your data, optimize file organization, and boost team collaboration using Zoho WorkDrive’s powerful features. This is a fantastic opportunity
BARCODE PICKLIST
Hello! Does anyone know how the Picklist module works? I tried scanning the barcode using the UPC and EAN codes I added to the item, but it doesn’t work. Which barcode format does this module use for scanning?
Join our live webinar: Explore the WorkDrive TrueSync application!
Hello everyone, We are thrilled to invite you to a live webinar focused on mastering the WorkDrive TrueSync application. Discover how to seamlessly sync your content between the cloud and your computer, ensuring smooth and efficient file management. Our
Zoho Creator customer portal limitation | Zoho One
I'm asking you all for any feedback as to the logic or reasoning behind drastically limiting portal users when Zoho already meters based on number of records. I'm a single-seat, Zoho One Enterprise license holder. If my portal users are going to add records, wouldn't that increase revenue for Zoho as that is how Creator is monetized? Why limit my customer portal to only THREE external users when more users would equate to more records being entered into the database?!? (See help ticket reply below.)
Script Editor not an option
I am trying to apply a script to a sheet and Script Editor is not an option. I don't want to go outside Sheets to do this (like Creator) if it can be done inside Sheets.
Envio de mails
Hola! No puedo enviar mails pero si recibirlos. No se como solucionarlo! Mi dominio es chidobebes.com.ar
ERROR CODE :554 - Your access to this mail system has been rejected due to poor reputation of a domain used in message transfer
In my email configuration: The domain's MX Records are pointed to Zoho The domain's SPF Records have been pointed out successfully DKIM is enabled. DMARC Record is pointed for the domain. The domain name is digioorja.in. Still facing the issue of Error:
This Operation has been restricted. Please contact support-as@zohocorp.com for further details
l tried to verify my domain (casalimpaeperfumada.com.br) and its shows this error: This Operation has been restricted. Please contact support-as@zohocorp.com for further details.
SLOW EMAILS
Is there an issue with the Zoho server? For two days now I've been having issues with very long buffering. Please advise. Thank you.
POP3 authentication error - SOLVED
Just in case others are as forgetful as me ... As Zoho has changed the POP server for personal and free organisational users, I needed to change the POP server on my email client. This failed persistently but eventually I remembered that I had chosen
Solution to Import PST File into Office 365.
MailsDaddy OST to Office 365 Migration Tool is an outstanding solution to recover OST files and migrate them into Office 365 without any hassle. Using this software users can multiple OST files into Office 365 with complete data security. It offers users
Add Zoho One Groups/Departments to Shared Mailbox Access
Hi, I hope you're doing well. Currently, in Zoho Mail, I can manually add specific users or the entire organization to a shared mailbox. However, there is no option to add Zoho One groups or departments. Feature Request: We would like the ability to assign
Allow Filters with Only Special Characters in Zoho Mail
Hi Zoho Mail Team, I hope you're doing well. We have noticed that currently, Zoho Mail does not allow creating filter criteria using only special characters, such as = or #. However, there are scenarios where such a filter is necessary. For example: Filtering
How to save email as PDF?
I saw 2 previous threads about this. One is from 14 years ago. The other was closed as "answered" a year ago but the feature was never implemented: https://help.zoho.com/portal/en/community/topic/how-to-download-save-emails-as-pdf Is the "save as PDF"
Flexible plans
Hi, I have a Workplace Standard subscription. On Zoho's website, it mentions that with the annual plan it's possible to have multiple plans under the same organization—for example, Workplace Standard and Mail Lite. However, I can’t find a way to do this
Weekly Tips : Teamwork made easy with Multiple Assignees
Let's say you are working on a big project where different parts of a single task need attention from several people at the same time—like reviewing a proposal that requires input from sales, legal, and finance teams. Instead of sending separate reminders
Cannot give public access to Html Snippet in Zoho Creator Page
Hi, I created a form in Zoho Creator and published it. The permalink works but I want to override the css of the form. (style based URL parameters is not good enough) So I created a page and added an Html snippet. I can now override the css, which is
Weekly Tips : Customize your Compose for a smoother workflow
You are someone who sends a lot of emails, but half the sections in the composer just get in your way — like fields you never use or sections that clutter the space. You find yourself always hunting for the same few formatting tools, and the layout just
Accounting on the Go Series-43:Enhancing Your Reporting Efficiency with Dashboard Filter State Retention
Hello everyone! Welcome back to our series on Zoho Books mobile app features. Today, we will talk about a feature that yet again helps you focus on work that really matters-Dashboard Filter State Retention. Imagine you're working on your Zoho Books dashboard,
Zoho books/payroll tax payment
I accidentally made a second payment to my taxes for $300 which is reflected in my bank account and therefore on Zoho books but I can not match it to any transactions because its not reflected in payroll as a tax payment. Is there a way to add an extra
I can't renew the Finance Plus subscription
I tried to renew the Finance Plus subscription but it keeps reloading the same page over and over when ever I click on "Renew Subscription" button
Estimate vs Quote
they are different. Quote is for 1 piece price + other charges. Estimate is for total quantity to be ordered. The gross total amount of the Estimate is the amount payable. Replacing Estimate as Quote is not understandable because they are different. In
Next Page