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
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
Accounting on the Go Series-47: Effortless GSTIN Management- Auto Populate TaxPayer Details in Zoho Books Mobile App
Hello everyone, Welcome back! Today, we're focusing on a feature specifically designed for our Indian users in the Zoho Books-Indian edition, particularly those who deal with GST compliance regularly. We understand the importance of accurate and efficient
Accounting on the Go Series-48: Enhance Accuracy with Custom Work Week Start Days in Zoho Books iOS app
Hello everyone, Welcome back! We’re here with another feature spotlight that might seem small but can have a big impact on your daily routine: setting the first day of the work week in the Zoho Books iOS app. Imagine this: You’re a business owner who
Time to Get Paid Report in ZBooks
Hello, One of our customers who has 25 different companies around the world gets 60 days to make payments. Unfortunately, the subject report does not report an average time to get paid (in days) or the ability to look at a custom period of time. Currently
How to prepare a balance sheet for a company that has no operations yet?
.
Project Billing Method from Zoho People
Normaly our customers use Zoho Projects to manage projects and timesheet that are being charge to the customer. Using the integration from Zoho Project we can have projects base on different billing method. For example most of our customer use Hourly
Zoho Books-Accounting on the Go Series!
Dear users, Continuing in the spirit of our 'Function Fridays' series, where we've been sharing custom function scripts to automate your back office operations, we're thrilled to introduce our latest initiative – the 'Zoho Books-Accounting on the Go Series'.
Zoho Books | Product updates | July 2025
Hello users, We’ve rolled out new features and enhancements in Zoho Books. From plan-based trials to the option to mark PDF templates as inactive, explore the updates designed to enhance your bookkeeping experience. Introducing Plan Based Trials in Zoho
Zoho Books | Product updates | August 2025
Hello users, We’ve rolled out new features and enhancements in Zoho Books. From the right sidebar where you can manage all your widgets, to integrating Zoho Payments feeds in Zoho Books, explore the updates designed to enhance your bookkeeping experience.
Update or Upsert Records Using Unique Custom Fields
Hello customers, We've enhanced the process of updating records via API. You can now: Update records using unique custom fields Upsert records using unique custom fields Note: Both the features are available in the Zoho Books and Zoho Inventory apps.
[Webinar] Understanding the New Invoice Management Systems
Join industry expert CA Pritam Mahure as he discusses the importance of the new Invoice Management System (IMS) and its impact on taxpayers. Topics Covered: - Concept of IMS and pre-requisites - Applicability and Restrictions on Invoices/Records for IMS
Accounting on the Go Series-51: Effortless Transactions: Create and Manage Directly from Uploaded Documents
Hello everyone, We’re back with another useful feature that makes working with Zoho Books even easier! This time, we’re simplifying the process of creating transactions directly from uploaded documents. Imagine you’re out meeting clients, and you receive
[WEBINAR] Effortless migration to the VAT-ready South Africa edition of Zoho Books
Hello there, If you are one of our early users from South Africa using the older edition of Zoho Books, this webinar is for you! We have now launched a new South Africa edition with VAT support, to which you can migrate your existing data. Join this session,
Accounting on the Go Series-52: Capture Receipts on the Go, Right from Your Lock Screen.
Hello everyone, We’re excited to introduce a feature that will make your life so much easier—especially for those constantly on the move! With iOS 18, Zoho Books now allows you to capture receipts directly from your lock screen using Locked Camera Capture.
AT - Austrian Accountant familiar with ZOHO
Hello, as I have just migrated to ZOHO and unfortunately have to change my accountant next year, I am looking for an accountant (for Austria) who already has experience with Zoho or who already manages clients using Zoho books. Is there anyone here from
Zoho Workflow issue
Dear Zoho Users, I have Zoho Books premium subscription, I have created a email alerts workflow for Invoices and following are the configurations for the same: 1. Workflow for Invoice module 2. Choose when to tigger - created or edited 3. Filter the triggers
Accounting on the Go Series-53: Swift Transactions at Your Fingertips-Zoho Books in Your Control Center
Hello again, We’ve all had those moments where you need to get something done quickly, but the process of unlocking your phone, finding the app, and navigating through menus slows you down. Now, with Zoho Books integrated into the iOS 18 Control Center,
Update on PDF Download Issues Caused by Antivirus Software
Hello users, Antivirus software is designed to protect your computer from malicious software and threats. However, they may mistakenly identify legitimate files and software as threats at times. This is known as a false positive. We have received reports
Accounting on the Go Series-54: Effortlessly Find Your Zoho Books Customers in Your Phone’s Contact List
Hello Zoho Books users! How are you all ? We’re happy to share a handy new feature in Zoho Books mobile app. Now, you can access your Zoho Books customers right from your phone's contact list, making it easier to stay connected on the go. How this can
Integration of Phase 2 -e-invoicing- KSA
Zoho Team, I want to get a training of integration of phase 2 invoicing KSA in zoho step by step.
I can not save new invoice
Hello Now I am trying to save a new invoice but I can not save it because showing unpaid invoice warning which are not overdue. Please let me know how to skip unpaid invoice warning letter and save new invoice. Thank you
ADD CONDITIONS FOR FIELD IN ZOHO BOOKS TEMPLATE CUSTOMAZATION
HELLO I WANT TO ADD CONDITIONS FOR FIELD IN ZOHO BOOKS TEMPLATE CUSTOMAZATION FOR SALES ORDER . I HAVE SET %StatusStamp% IF APPROVAL I WANT THAT TEXT TO BE DISPLAYED WITH GREEN COLOR OTHERWISE OF OTHERR STATUS RED COLOR AS SHOWN IN CODE BELOW . BUT IT
Accounting on the Go Series-55: Seamlessly Add New Vendors While Creating Transactions from Scanned Documents
Hi there! We’ve made handling documents and vendors in Zoho Books even simpler. Now, when you upload a document and scan it, if the app detects a vendor that isn’t already in your organization, you don’t have to leave the page to add them manually. With
Accounting on the Go Series-57: Effortlessly Add and Manage Bank Accounts from the Zoho Books Mobile App
Hi all, Great news for our users in the US and Canada! Managing your finances just got a whole lot easier. Zoho Books has always made it seamless to integrate bank accounts and fetch feeds automatically. Now, we’re taking it up a notch—directly from the
Accounting on the Go Series:58-Effortless Compliance: Download XML for Invoices & Credit Notes on Mobile
Hi there! In Mexico, XML files are crucial for electronic invoicing and fulfilling SAT (Tax Administration Service) requirements. These files ensure your transactions are accurately recorded and tax-compliant. Now, you don’t need to rely on the web app
Auto Generated Invoice number YEAR
Auto Generated Invoice number shows transaction year as 25 even though it's 24 still.
Books generiert keine valide XRechnung
Hallo zusammen, ich möchte hier ein Problem ansprechen, das mir aktuell bei der Nutzung von Books erhebliche Schwierigkeiten bereitet, und hoffe auf Austausch oder Lösungsansätze von anderen Nutzern. Bei der Erstellung von XRechnungen mit Books treten
Next Page