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

    • Admin guide: Handling Mailbox Settings for better user management

      Managing day-to-day email scenarios, such as supporting users with multiple email addresses, ensuring uninterrupted email access during employee absences, enabling secure mailbox sharing, and enforcing organizational security and compliance, can be challenging
    • Cisco Webex Calling Intergration

      Hi Guys, Our organisation is looking at a move from Salesforce to Zoho. We have found there is no support for Cisco Webex Calling however? Is there a way to enable this or are there any apps which can provide this? Thanks!
    • Designing a practical Zoho setup for a small business: lessons from a real implementation

      I recently finished setting up a Zoho-based operating system for a small but growing consumer beauty business (GlowAtHomeBeauty), and I wanted to share a practical takeaway for other founders and implementers. The business wasn’t failing because of lack
    • DKIM (Marketing emails) UNVERIFIED (Zoho One)

      I'm having a problem with Zoho One verifying my Marketing Email DKIM Record for MYFINISHERPHOTOS.COM. I have removed and re-entered the ownership, DKIM (Transactional emails), SPF and Marketing DKIM and all of them come back verified except the DKIM (Marketing
    • Zoho Recruit Community Meet-up - India

      Namaste, India. 🙏🏼 The Zoho Recruit team is hitting the road—and we 're absolutely excited behind the scenes. Join us for the Zoho Recruit India Meet-up 2026, a morning designed to make your recruiting life easier (and a lot more effective). Date City
    • Generate a Zoho Sign link

      From time to time I get a response "I never received your you e-document for electronic signature" is there a way to generate a Zoho Sign link to share.
    • Is it possible to create a word cloud chart in ZoHo Analystics?

      Hi there, I have a volume of transaction text that I would like to analyse using word cloud (or other approcah to detect and present word frequency in a dataset). For example, I have 50,000 records describing menu items in restaurants. I want to be able
    • How to Fix the Corrupted Outlook 2019 .pst file on Windows safely?

      There are multiple reasons to get corrupted PST files (due to a power failure, system crash, or forced shutdown) and several other reasons. If You are using this ScanePST.EXE Microsoft inbuilt recovery tool, it only supports the minor corruption issue
    • [Webinar] A recap of Zoho Writer in 2025

      Hi Zoho Writer users, We're excited to announce Zoho Writer's webinar for January 2026: A recap of Zoho Writer in 2025. This webinar will provide a recap of the features and enhancements we added in 2025 to enhance your productivity. Choose your preferred
    • How to drag row(s) or column(s)?

      Hi. Selecting a row or column and then dragging it to a new position does not seem to work. Am i missing something or this is just not possible in Zoho Sheet? Cheers, Jay
    • Building Toppings #5 - Creating and configuring custom service connections in Bigin Toppings

      Hello Biginners, Integrating Bigin with external applications extends its capabilities and enables customized functionalities. In our last post, we saw how to create a default service connection. Today, we'll see how to create a custom service connection
    • Optimising CRM-Projects workflows to manage requests, using Forms as an intermediary

      Is it possible to create a workflow between three apps with traceability between them all? We send information from Zoho CRM Deals over to Zoho Projects for project management and execution. We have used a lookup of sorts to create tasks in the past,
    • Marketing Tip #15: Rank better with keyword-rich URLs for product pages

      Your product page URL is a small detail that can make a surprisingly big difference. Clean, readable URLs help in two ways: They’re easier for customers to trust and remember (no one likes clicking a link that looks messy or random). They help search
    • Conditional fields when converting a Lead and creating a Deal

      Hi, On my Deal page I have a field which has a rule against it. Depending on the value entered, depends on which further fields are displayed. When I convert a Lead and select for a Deal to be created as well, all fields are shown, regardless of the value
    • ATE Session on Payment Gateways: Our experts are live now. Post your questions now!

      Hello everyone, Our experts are all excited to answer all your questions related to payment workflows. Please feel free to join this session and learn more about this topic. If you have a query at anytime, please post them here.
    • Upload data deleted all Zoho form data that we manage

      Good morning. Let me introduce myself, I'm Iky from Indonesia. I'm experiencing an error or problem using Zoho Forms. I manage Zoho Forms, but I previously encountered an error when I misclicked the delete button in the upload format. It apparently deleted
    • ZOHO FORMにURL表示ができない

      初心者です。 ZOHO FORM で宿泊者名簿を作っています。 ゲストが、URLをクリックするとStripeで支払いができるようにURLを表示をしたいのですが、 上手くできません。 やり方が分かる方、ぜひ教えてください。
    • Custom module - change from autonumber to name

      I fear I know the answer to this already, but thought I'd ask the question. I created a custom module and instead of having a name as being the primary field, I changed it to an auto-number. I didn't realise that all searches would only show this reference.
    • No Automatic Spacing on the Notebook App?

      When I'm adding to notes on the app, I have to add spaces between words myself, rather than it automatically doing it. All my other apps add spacing, so it must be something with Zoho. Is there a setting I need to change, or something else I can do so
    • Holidays - Cannot Enter Two Holidays on Same Day

      I have a fairly common setup, where part-time employees receive 1/2 day's pay on a holiday and full-time employees receive a full day's pay. Historically, I've been able to accommodate this by entering two separate holidays, one that covers full-time
    • Zoho Bookings and Survey Integration through Flow

      I am trying to set up flows where once an appointment is marked as completed in Zoho Bookings, the applicable survey form would be sent to the customer. Problem is, I cannot customise flows wherein if Consultation A is completed, Survey Form A would be
    • Campaigns set up and execution assistance

      Hello Community, Can someone recommend a professional who can assist with the completion of my set up and deployment of Campaigns? Looking for a person or company that is not going to ask for big dollars up-front without a guarantee of performance to
    • Zobot with Plugs

      Hello, I am having a problem with Zobot using Plugs. Here is my current flow: When I run the flow, I should immediately see the messages from the initial cards (Send Message cards), then after running the plug, and finally, see the messages after the
    • Kaizen #223 - File Manager in CRM Widget Using ZRC Methods

      Hello, CRM Wizards! Here is what we are improving this week with Kaizen. we will explore the new ZRC (Zoho Request Client) introduced in Widget SDK v1.5, and learn how to use it to build a Related List Widget that integrates with Zoho WorkDrive. It helps
    • Remove Powered by Zoho at the footer

      Hi, I've read two past tickets regarding this but it seems that the instructions given are outdated. I assume the layout keeps on changing, which makes it frustrating for me to search high and low. Please let me know how exactly do I do this now? Th
    • Error AS101 when adding new email alias

      Hi, I am trying to add apple@(mydomain).com The error AS101 is shown while I try to add the alias.
    • No Need To Fix Something That Is Working

      Zoho Books is a great financial tool which helps businesses to become more efficient and productive with day-to-day operations. As such, every change, upgrade, improvement needs to be carefully thought before implemented in the software and I'm sure Zoho
    • Using email "importance" as workflow-criteria

      I'd like to set up a workflow that triggers if an incoming email has been flagged as "high importance" but I'm not seeing any way to do that. Hopefully I'm just missing something obvious...?
    • This domain is not allowed to add. Please contact support-as@zohocorp.com for further details

      I am trying to setup the free version of Zoho Mail. When I tried to add my domain, theselfreunion.com I got the error message that is the subject of this Topic. I've read your other community forum topics, and this is NOT a free domain. So what is the
    • What is Resolution Time in Business Hours

      HI, What is the formula used to find the total time spent by an agent on a particular ticket? How is Resolution Time in Business Hours calculated in Zohodesk? As we need to find out the time spent on the ticket's solution by an agent we seek your assistance
    • Check & Unchecked Task Segregation in Export

      It must have a feature to represent checked and unchecked tasks as [ ] and [✅] respectively when exporting it to Arratai or WhatsApp ; as Keep Notes by Google contains…
    • WorkDrive Download Issue

      My client has been sending me files via WorkDrive, which generally has worked fine. Recently files won't download at all. If you try and individually select and download a file, a popup will appear in the bottom right saying it's preparing and then it
    • Resolution Time Report

      From data to decisions: A deep dive into ticketing system reports What are time-based reports? Time-based reports are valuable tools that help us understand how well things are going by breaking down key metrics over specific periods. By tracking, measuring,
    • Support Custom Background in Zoho Cliq Video Calls and Meetings

      Hello Zoho Cliq Team, We hope you are doing well. We would like to request an enhancement to the video background capabilities in Zoho Cliq, specifically the ability to upload and use custom backgrounds. Current Limitation At present, Zoho Cliq allows
    • Add RTL (Right-to-Left) Text Direction Button in Zoho Cliq

      Greetings Zoho Team, We would like to request the addition of an RTL (Right-to-Left) text direction button in Zoho Cliq, similar to what is already available in other Zoho apps like Zoho Desk. Currently, while using Zoho Cliq with the English interface,
    • Enable Backgrounds and Video Filters for 1:1 Cliq Calls Across All Zoho Entry

      Hello Zoho Cliq Team, We hope you are doing well. We would like to request an enhancement related specifically to 1:1 video calls in Zoho Cliq. Current Behavior Zoho Cliq currently provides background and video filter options in the following scenarios:
    • Zoho Flow: Stripe a Zoho Marketing Automation

      Hola! Quiero hacer un flujo con Zoho Flow, para que cuando se haga un pago en Stripe, añada el lead en Zoho Marketing Automation. Lo he configurado, configurando el disparador como "Payment created" y mapeando el campo de Stripe "Receipt email address".
    • Need Customer Item Inward Module along with QC

      Need Customer Item Inward Module along with QC 1. Using Transfer Orders hit the item balance sheet 2. Items without inventory it becomes difficult for tracking purpose. 3. Custom Modules become tedious to capture multiple items, item subforms are not
    • LESS_THAN_MIN_OCCURANCE - code 2945

      Hi I'm trying to post a customer record to creator API and getting this error message. So cryptic. Can someone please help? Thanks Varun
    • Zoho email

      I need a list of email addresses of all contacts on my zoho
    • Next Page