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, 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% |
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:
- 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
Access your files securely from anywhere
New to Zoho Recruit?
Zoho Developer Community
New to Zoho LandingPage?
Zoho LandingPage Resources
New to Zoho Survey?
New to Zoho CRM Plus?
Deliver unforgettable customer experiences
New to Zoho CRM Plus?
Deliver unforgettable customer experiences
New to Zoho Marketing Plus?
Everything you need to run your marketing
New to Zoho Marketing Plus?
Everything you need to run your marketing
New to Bigin?
Topic Participants
Jayanandhini V
Linus
finance bimlabs
devarajalukannan
Alisodai
New to Zoho TeamInbox?
Zoho TeamInbox Resources
Zoho CRM Plus Resources
Zoho Books Resources
Zoho Subscriptions Resources
Zoho Projects Resources
Zoho Sprints Resources
Qntrl Resources
Zoho Creator Resources
Zoho CRM Resources
Design. Discuss. Deliver.
Zoho Show Resources
Get Started. Write Away!
Writer is a powerful online word processor, designed for collaborative work.
Zoho CRM コンテンツ
-
オンラインヘルプ
-
Webセミナー
-
機能活用動画
-
よくある質問
-
Ebook
-
-
Zoho Campaigns
- Zoho サービスのWebセミナー
その他のサービス コンテンツ
Nederlandse Hulpbronnen
ご検討中の方
Recent Topics
Turning off the new UI
Tried the new 'enhanced' UI and actively dislike it. Anyone know how to revert back?Zoho Sprints Android v2.0.4 app update: Item reminders, archive Epics, Kanban projects, Epic progress
Hello everyone! In the latest version(v2.0.4) of the Zoho Sprints Android app update, we have introduced various new features. Let's take a look at what's new! Item Reminder Stay organized and never miss an important date with the all-new Item ReminderCredit Management: #3 Setting Credit Limit for Customers
Think about that one familiar customer of yours who always buys on credit. They usually pay on time, maybe a little late here and there, but not alarming. So, you are fine saying, "Sure, pay later." Then, one day, they place a significantly bigger orderAdding Reports to Portals
Is there a way to add Reports to portals so only the user can see report templates relevant to them?Update on the client portal URL for Guest users
We’re updating the way Guest users access their Connect network. As part of this change, all client organization portals used by Guest users will now be accessible through a dedicated domain specific to each data center. The access URLs mentioned herePreserve Ticket Issue Mapping When Migrating from Jira to Zoho Projects
Hello Zoho Projects Team, We hope you are doing well. We are currently exploring a full migration from Jira to Zoho Projects, and we identified a critical limitation during the migration process involving Zoho Desk integration. Current Situation: We useEnhancements to Zoho Map integration tasks
Hello everyone, We're excited to announce enhancements to the Zoho Map integration tasks in Deluge, which will boost its performance. This post will walk you through the upcoming changes, explain why we're making them, and detail the steps you need toUnable to see Zoho contacts in Zoho app on ios
Hi Support Team, I am a new user, I have created my account and installed zohomail app on iOS 16 which works. I was also able to import my Gmail contacts into Zoho Contacts, which I can see. The problem is that I can’t see these imported cobalts in ZohomailTask Due Date greater than 10 years.
We use recurring tasks in Projects where every week, month, year etc Some of our projects are greater than 10 years and we are unable to set a new due date because the difference between start date and due date is greater than 10 years. As an exampleExternal User onboarding for zoho connect is not really intuitive.
So the external user is sent an invite, which has a button that directs them to login to zoho to view the invite, but if they don't have a zoho account, they cannot access that invite, which seems kinda silly, as there is not real way on for them to createHosting external websites on Zoho?
How can I host my external website on zoho? Do we have that option? I am currently with hostinger and am looking to switch to zoho. Kindly help. Thanks.How to Add Time Formula Duration (hh:mm)
Hi everyone — I’m trying to create a formula field in Zoho CRM that calculates the difference between a “Call Start Time” and “Call End Time” and displays the duration in HH:MM format (for example: 1:04 for one hour and four minutes). My current setupHow can I calculate the physical stock available for sale?
Hey Zoho Team, I've tried to calculate the physical stock on hand in various ways - but always receive a mismatch between what's displayed in Zoho Inventory & analytics. Can you please let me know how the physical stock available for sale is calculated?Set Custom Icon for Custom Modules in new Zoho CRM UI
Marketing Tip #4: Build your email list early
Email marketing has one of the highest returns on investment. Don’t wait until later; start collecting subscribers now. When you've got their attention, you can send them emails about offers, new product launches, seasonal greetings, and more. Try thisIs anyone else having trouble saving a custom image in their email signature, or is it just me?
When I try to save the image I get an error that says "Operation Failed" I opened a support ticket two weeks ago and received a response that it would be debugged, but it still isn’t workingUnify Overlapping Functionalities Across Zoho Products
Hi Zoho One Team, We would like to raise a concern about the current overlap of core functionalities across various Zoho applications. While Zoho offers a rich suite of tools, many applications include similar or identical features—such as shift management,Zoho Desk Domain mapping / Cloudflare CNAME not recognized
Hello, my website is behind Cloudflare and SSL. From the Cloudflare control panel I added a CNAME record such as support.mydomain.com pointing to desk.cs.zohohost.com but I'm stuck with the message "Make sure you've mapped the CNAME entry..."Create an Eye-Catching Announcement Widget for Your Help Center
Hello Everyone! In this week’s edition, let’s explore how to keep your customers updated with exciting news in the Help Center. See how ZylkerMobile wowed their customers by bringing updates right to their portal. ZylkerMobile, the renowned brand forI want to add my other zoho account in same pc
why does zoho restrict me doing many things as i also want to add my second mail account bit its not allowing me to do thatSearch in Zoho Community Not Working
I realize this is a bit of a meta topic, but the search for the various Zoho Communities appears to not be working. I'm under the impression that they run on some version of the Zoho Desk platform, so I'm posting this here.Capture Stripe’s Customer ID
Does anyone know of a way to capture Stripe’s customer ID that is created when the form/payment is processed? I would like to have the customer ID stored in our CRM so we could utilize in some custom functions down the road.Custom Modules - Where are Comments??
In the standard ticket module and in the tasks module, we have an interactive comment box that we can post important details/notes and can tag others if needed. Where is this functionality for Custom Modules? Ideally, custom modules would have very similar,Zoho ShowTime: Certificates of Completion - Award your learners with a sense of achievement
In our increasingly competitive market, professional trainers need to differentiate themselves if they are to survive. One way to do this is to focus on innovation and deliver an ideal learning experience. By developing a renowned certificate program that provides learners with a specialized skill set for a particular industry, both trainees and future prospects will recognize the trainer's leadership in that field. This can help with long-term growth, revenue generation, and even marketing and branding.IMAP Migration from Gmail
I have been trying to import my email from a Gmail server and keep receiving the following error. I have reduced the security, activated imap and no improvement. The link to the Google support item has not helped. Unable to connect to your account. PleaseYour Incoming has been blocked and the emails will not be fetched in your Zoho account and POP Accounts Click here to get unblocked.
When entering my account, this error is thrown at me, and I deleted a good part of my deleted messages, but I still can not unblock it, I would appreciate your help. reservas@lineasperutravel.comRequest for Creating Multiple Email Accounts on One Mobile Number
Dear Zoho Team, I am planning to shift all my work-related communication to Zoho Mail because of its reliability and features. For my work, I need to create 3–4 separate email accounts for different purposes. Could you please confirm if it is possibleSignature issue
Problem: The signature does not appear when replying or forwarding an email. solve issue: settintgs/Signature Check option place a signature above the content with quotation marksmail admin not loading
i am trying to login to mailadmin ... gears keeps rotating forever... its not a password issue whats so ever ... not cookies issues whatsoever from android app i can login but there so few things to do from there .. i changed ip address the same... iUnify All Zoho Video Meeting Experiences into One Standardized Platform
Hi Zoho Team, We would like to share an important user experience concern regarding the current state of video meeting functionality across the Zoho ecosystem. The Problem Within Zoho, there are multiple ways to initiate or schedule a video meeting: ZohoChanging Account in Quote form does not update address information.
I am trying to update the address information in a quote I've created. I corrected the address in the "Account" but that did not change in the quote. If I re-enter the Account Name in the Quote form, nothing updates. How do I fix this?Zoho One Backup of entire account
Hello, When using Zoho one is there a way to backup your entire account of all apps that you are using \ activively using in a single step or do you have to backup each applications data individually? Thanks,Issue with “CC” and “Subject Details” of the initial mail when reply / replied all / forward using Zoho Mail Client (Desktop / Web Mail / Mobile App)
It is observed that when I reply / reply all / forward a mail using Zoho Mail Client (Desktop / Web Mail / Mobile App), the “CC” and “Subject Details” are omitted from the mail which was replied/forwarded. However this is not the case with outlook mailUnable to send Emails - 452 4.3.1 Temporary System Error
Whene ever i request smtp server to send the email (without attachment). i recieve error "452 4.3.1 Temporary System Error"I can't receive email
I cannot receive any email sent to my Zoho email after the free upgrade plan trial is finished.Help for the alisa adding
Sorry, I would like to add a paypal alias on my domain email address. However, the system blocked it. How can I do it?Lite plan attachment said 250mb but actually 25mb ?
Lite plan attachment said 250mb but actually 25mb ? I can't attach over 25mb files, and can't receive mails has attached files over 25mb tooCan no longer export as pdf
In NOTEBOOK I am no longer able to export notes to pdfs as I used to be able to. When I hit that command it asks where I want to send it, but no matter what I chose there is no pdf attachment that shows up in order to send. Nothing happens.Option to Customize Career Site URL Without “/jobs/Careers”
Dear Zoho Recruit Team, I hope you are doing well. We would like to request an enhancement to the Career Site URL structure in Zoho Recruit. In the old version of the career site, our URL was simply: 👉 https://jobs.domain.com However, after moving toOld vs New Value for Deleted Lookup Values
Suppose the following scenario, where a value in a lookup is deleted: 1. User has countries form 2. Form A has a lookup to countries form 3. User selects Italy in Form A and saves it with the Italy ID 4. Form A report shows Italy 5. Italy is inadvertentlyNext Page