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
Zoho CRM App - Links
Hi Is there are plan for making Custom Links available in the Zoho CRM Android App? I can't see them being added? Thanks Gene
Templates
Trying to sort out / get rid of unwanted invoice templates, the error msgs are not at all helpful. Surely it's easy to amend the error msg by including a list of the names of the customers / vendors that use it, denying deletion or making it inactive
Contacts limit in basic vs standard - what counts? Are customers contacts?
I’ve been using books for a number years for my small business. I only ever work with 20 clients at any given time. I do purchase services from a number of vendors to run my business, so there are some comtacts there too. I used to use the basic package,
Finding missing records
I have a challenge and I am not really sure where to start with it. I can't find any similar threads on here, can anyone help: I have two forms, FormA and FormB. Both forms have records that contain a field called Job_Number. What I am trying to achieve
Read webpage - MSXML2.ServerXMLHTTP
I have the following VBA script, put together from various sources (mainly zoho forum/help/support, so it once worked, I guess): private Sub GetListOfSheets() Dim url As String Dim xmlhttp As Object Dim parameters As String Dim html As String range("B1").value
Addin Support in Zoho Sheet
Is there any addin support available in zoho sheet as like google marketplace to enhance productivity by connecting with other apps, providing AI data analysis, streamlining business processes, and more?
Scheduled Reports - Do not send empty report
Hello, We are intensively using reports in the CRM, especially for sales managers. When data is empty, they still receive an email. Can you add an option to avoid sending the report when data is empty?
Prevent Unapproved Quotes from Exporting to Zoho CRM Finance Module
Is it possible to prevent unapproved quotes in Zoho Books from being exported from Zoho Finance module inside Zoho CRM?
ZOHO BOOKS - RECEIVING MORE ITEMS THAN ORDERED
Hello, When trying to enter a vendor's bill that contains items with bigger quantity than ordered in the PO (it happens quite often) - The system would not let us save the bill and show this error: "Quantity recorded cannot be more than quantity ordered."
Updates for Zoho Campaigns: Merge tag, footer, and autoresponder migration
Hello everyone, We'd like to inform you of some upcoming changes with regard to Zoho Campaigns. We understand that change can be difficult, but we're dedicated to ensuring a smooth transition while keeping you all informed and engaged throughout the process.
Process between CRM and Campaigns to ensure double opt-in contacts?
I would like to ask for a few clarifications to ensure we fully comply with best practices and legal requirements: According to the documentation (Zoho Campaigns CRM sync – Default option), the best and recommended way to sync contacts is by using the
What's New in Zoho Inventory | August – October 2025
Hello customers, The last quarter has been incredibly productive! We've released a powerful slate of new features and enhancements in Zoho Inventory designed to give you better control, greater efficiency, and expanded functionality across your inventory
Let's Talk Recruit: Meet Zia, your all-in-one AI assistant (Part-2)
Welcome back to Let’s Talk Recruit series. In Part 1, we introduced Zia and how AI is reshaping the way recruiters work. This time, we’re taking a closer look at how far Zia has come and how each update continues to simplify your everyday tasks. When
Zoho Developer - Feature Request Platform
Zoho Developer is one of the most underatted platform in zoho ecosystem, however, it may just be what zoho needs to welcome more people to use Zoho Services. The more developers you have creating zoho creator applications and zoho extensions the more
Last/Previous month in relative date filter
In the relative date filter, what is the difference between "Last 2 months" and "Previous 2 months"? So, if we are on 25-July, then is my understanding correct of the following: Last 2 months :=: 25-May~24 July Previous 2 months :=: 01-May~30-June Thanks.
Related to zoho survey
Hi team. I want to know something regarding zoho survey question builder. I have two questions each of dropdown (One answer) - question type. In the first question, there are 16 answer choices and in the second question, there are 3 answer choices. For
Tags get removed from notes on mobile
I don't know why this keeps happening even after all these app updates but if you log out and log back into the app or you reinstall it, all the tags you assigned to your notes get taken off, but if you go on the desktop version the tags are still there.
Show Zoom Link in Recipient's Calendar
We set up meetings within a record, selecting the "Make this an online meeting". We use Zoom. Most of the recipients go to their calendar (usually Gmail or Outlook, corporate) to join the Zoom meeting, but there is no Zoom link in the calendar. Can this
How to fetch custom fields for time entries in Zoho Project API v3
In the previous Zoho Projects REST API, we were able to retrieve custom field details for time entries, including picklist options, using the endpoint: GET /restapi/portal/[PORTAL_ID]/timesheetcustomfields
In the new Zoho Projects API v3, we tried using
VAT rates - exempt and out of scope
Good Evening, UK based company here. I am a bit confused in respect of setting up VAT rates for exempt goods and services; at present I am simply leaving the VAT rate blank in the transactions in order to prevent any VAT appearing in the VAT return. When
Zoho is blocking emails I subscribe to from one sender
About 4 months ago I stopped receiving newsletters that I subscribe to from @thedispatch.com. They tell me that zoho's server is blocking them. I've added them to my contacts list, but they're not even reaching my inbox. I don't know how to troubleshoot
How to update custom multi-user field in Zoho Projects?
I'm trying to update custom multi-user fields in Zoho Projects via a Deluge function in CRM. The code I have so far is below. It works for updating standard project fields and single-line custom fields, but it does not work to update multi-user fields.
Introducing Lead Capture: Empower exhibitors to capture leads effortlessly
Events provide a great opportunity for exhibitors to generate awareness and engage with potential customers. Efficiently distributing attendee information to exhibitors through a seamless and secure way is of paramount importance. Introducing Lead Capture
Work Order Creation Issue
Dear Team, I would like to inquire about the daily limit for Work Order creation in Zoho FSM. Yesterday (02/05/2025) at around 6:30 PM GST, I attempted to create a Work Order, but I have been unable to do so since then. Please find the attached image
Accessing shared mailboxes through Trident (Windows)
Hi, I have a created a couple of shared mailboxes. The mailboxes are showing up on the browser based Zoho workplace, but I cannot seem to figure out how to access my shared inboxes through Trident (Windows). Am I missing something or is this feature not
URGENT: ChatGPT Extension Failing With “gpt-3 Access Error” (Priority Support)
Appreciate support reviewing this urgently. I am a Priority Support member and need immediate clarification on a recurring issue involving the ChatGPT extensions inside Zoho Desk. Both extensions — including the version created and published by Zoho —
Server error when trying to Data > Sort > Custom Sort
Been using Data > Sort > Custom Sort for a while, now it has suddenly stopped working. When selecting the same data range and trying to execute, I get "Sorry! There was a problem saving your last edit. Please try again."
Zoho Desk iOS update: Custom buttons, follow/ unfollow option on tickets
Hello everyone! In the most recent Zoho Desk iOS app update, we have brought in support to access the custom buttons configured on web app(desk.zoho.com). Using custom buttons you can seamlessly execute predefined actions directly from their mobile devices,
Zoho pdf suit
Pl. design products with following feature: 1. Please add all features given in Ilovepdf website to work on pdf files. It is mandatory to use pdf in court work. 2. Courts have prescribed New Times Roman, pl. add this font as well 3. Indexing, signature
Zoho Not Working
Today Zoho not wokring
Dynamically autofill fields with URL parameters
I have a zoho form embedded in my organization's WP website. Our users find their account with a search tool, and then can select to open this page with the embedded form. The URL of the page holds the parameter that I need, but I cannot figure out how
User Automation: User based workflow rules & webhooks
User management is an undeniable part of project management and requires adequate monitoring. As teams grow and projects multiply, manual coordination for updating users & permissions becomes difficult and can give way to errors. User automation in Zoho
Integrate Projects for Desk KB article release tasks
Could you please look into the possibility of integrating project tasks for Zoho Desk article release processes? We are looking for an internal integration between Zoho Projects and Zoho Desk's KB article drafting, reviewing and releasing tasks. We could
Issue in Annual Leave
We created a policy to credit 21 days at the Start of the Year An employee has taken 16 days of leaves thought the year, so we expect to see 5 Leaves remaining right? But Zoho People is Showing 12 Days of Leave Balance Available If we check the Leave
Use the searchBy parameter to find user by email address
I'm trying to find a user is Zoho Desk via the Api. In the documentation I see that there is the possibility to add a searchBy parameter in the request. But I can't find how the search values should be formatted. I've tried multiple things and get either
Zoho CRM Community Digest - September 2025 | Part 2
Hello Everyone! Mid-September vibes: fresh tips, smart hacks, and practical Zoho CRM updates all in one place. Let’s dive in. Product Updates: The All-New Address Field! The new Address field type makes it easier to capture complete addresses in one structured
Zoho Vault API: Create new Secrets
Hello, I attempt to Post Secrets to the vault, since the encrypted entries are almost impossible to decrypt, since there is no documentation on how to decrypt them. Like with the lack of documentation on how to descrypt, there are missing information regarding on how to create new secrets/post secrets. Source: https://www.zoho.com/vault/api/#create-a-new-secret When I try to send JSON Informationen as a POST-Request I only receive the error message: { "operation": { "result": { "error_code": "",
CRM and Finance Tab - Add Invoice "Subject " Column
When On a contact in CRM, and you click the Zoho Finace tab, how can I put in the invoice subject line? Or even a custom field for this. We need to see what that invoice is for, without opening it. If we have tons of invoices we need a way to quick
Collections Management: #4 Before, During & After Payment Processing
"Mark, I think the payment link isn't working. Can you send it again?" Staring at a message, Mark got on his phone. This was the third time the same customer had asked him that week. A few minutes later, another message came, "Hey, the invoice total seems
Account name not populating when importing contacts
When importing a csv file to add contacts the account name is blank? Every other filed gets mapped and imported correctly, i.e contact name, phone number. However not the account name which I have mapped to "company" field in my csv file
Next Page