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
Client Script | Update - Support for List Page (Canvas) and Notes
Hello everyone! We are glad to announce two exciting updates in Client Script. Client Script support for List Page (Canvas) Client Script support for Notes These open the door to more dynamic and interactive customizations! 1. Client Script support forPincode based Product Restriction
we have different types of products. 1) Very bulky items like plywood. 2) Too delicate items like glass These type of products we want to sell to local customers. Other products we want to supply all over India. There should be an option to restrict productsPincode Based Pricing
We want to give extra discount to customers within city limits because our shipping and packing costs are less. My proposal is assign list of pincodes to price list and assign the price list to customers whenever they sign up with pincodes. Also showfeature question: lookup field in Projects task layout
Hello, Below we have interface to configure a custom task layout, however, we need a lookup field to let pickup data from other apps, such as Zoho CRM Products module, is that possible or already in your roadmap? or a workaround to achieve it? Thanks in advance.Download a writer template as .docx instead of .pdf.
I have been trying to implement a feature to download a writer template as a .docx and got it working partly but it isn't good. Earlier I checked our code and I saw openurl("https://crm.zoho.com/crm/org121314/specific/Template.do?action=print&step=pdfPreview&id="Can we do Image swatches for color variants?
We want to do something like the attached screenshot on our new zoho store. We need image swatches instead of normal text selection. We want to user to select an image as color option. Is this doable? I don't see any option on zoho backend. Please hWhat's New in Zoho Analytics - October 2025
Hello Users! We're are back with a fresh set of updates and enhancements to make data analysis faster and more insightful. Take a quick look at what’s new and see how these updates can power up your reports and dashboards. Explore What's New! ExtremeZoho Analytics & SQL Server - Live connect
Below are the steps I did Created a fresh database and table in my own virtual server Created a new data source connection with live connect I was able to select the tables and created the data source successfully I am getting the error when I try toExplore the Redesigned Quotes Module in Zoho Billing
Dear users, We’re excited to introduce a refreshed look for the Quotes details page in Zoho Billing! This update brings you a more efficient user interface experience without changing your existing workflow. We've enhanced layouts with organized tabs,Latest updates in Zoho Meeting | Create departments, Share PDF files
Hello all, You can now create departments to group team members within your organization. This will make it easier for you to organize department-level meetings and invite members. In webinars, use the Share material feature to share PDF files directlyUnify 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: Zoho[Free Webinar] Product Updates: Quick Catch-Up Session - Part I - Creator Tech Connect
Hello Everyone! We welcome you all to the upcoming free webinar on the Creator Tech Connect Series. The Creator Tech Connect series is a free monthly webinar featuring deep-dive technical sessions designed for developers, administrators, and app builders.Project expenses in Zoho Books
Just the way timesheet is used to calculate labour cost for a particular project, how do i record other expenses against a project such as materials and consumables used for the project? So that under report, I can view the total amount expended on eachBlueprint status change
I want to change the Blueprint status of a workflow. The status is completed automatically when I added the record through API call. But I want to make it active, I don't see any options for this. Even if I draw transition from any stage , it is not visibleWhat is going on with GMail extension.
Suddenly, it is popping up and saying "Please wait while we work our magic... 10%" and it sits there. Yesterday I waited for an entire hour call and it never got further. Today, it's not resolved. Is there a fix I can do? I've tried all the typicalMarketing Tip #6: Cross-sell with related products
Don’t let customers stop at just one product. Suggesting related or complementary items improves the shopping experience and increases order value. Try this today: Use the Item Recommendations feature in Zoho Commerce and add two to three suggested itemsi cannot use <b></b> to bold the message in Creator C6!!!!???What?
Dear experts and friends, Now Creator 6 blocking us from using <b></b> Anyone facing this issue? I faced it on Creator C6 Previously, it used to work. Now failed to work. Faint~ Seek guidance from everyone on how to bold the message. The super simpleZoho Writer - Option to Export as .zdoc format
I've noticed that it's not possible to export a Zoho Writer Document in the .zdoc format. Isn't zdoc, Zoho Writer's own format? My use case is that I sometimes need to create quite complex documents with floating elements, which sometimes need to become[Announcement] Enhanced Merge APIs of Zoho Writer for automating document generation using Zoho Apps data
Hi users, With the record_id parameter in Zoho Writer's Merge APIs, fields related to the given record id is automatically fetched from the Zoho app. You don't have to spend time manually mapping the records and fields in the Deluge code. Here is a samplePin multiple columns and adjust column widths in CRM subforms
Hello all, Subforms act as secondary forms or tables in which you can associate multiple line items to a primary record and thereby ensure more structured and comprehensive data organization. We've made some recent enhancements to subforms. Here's what's[Webinar] Automate sales and presales workflows with Writer
Sales involves sharing a wide range of documents with customers across the presales, sales, and post-sales stages: NDAs, quotes, invoices, sales orders, and delivery paperwork. Generating and managing these documents manually slows down the overall salesAutomate insurance document workflows with Zoho Writer
Insurance companies have to deal with creating and managing complex documents and forms, such as policy applications, explanation of benefits documents, brochures, renewals, and claim forms. Handling all of this manually is hugely time and effort intensive,Latest updates in Zoho Meeting | New End of session notification to remind everyone about the session end time
Hello everyone, We’re excited to share a new feature for Zoho Meeting ; End of session notification. With this new setting, you can choose to remind all participants or only the host about the scheduled end time of a meeting. You can also choose when[Webinar] Zoho Writer for SCM and logistics
Creating, sharing, and distributing complex documents are constant challenges in the SCM and logistics industry. That's why our next webinar is focused on how to simplify these document workflows. Join us on Jul 10, 2025 for a Zoho Writer webinar designed[Webinar] Zoho Writer for the manufacturing industry
Creating, sharing, and distributing complex documents are constant challenges in the manufacturing services industry. That's why our next webinar is focused on how to simplify these document workflows. Join us on May 8, 2025, for a Zoho Writer webinarAdd Comprehensive Accessibility Features to Zoho Writer
Hello Zoho Writer Team, We hope you are doing well. We would like to submit a feature request to enhance Zoho Writer with a full set of accessibility tools, similar to the accessibility options already available in the Zoho Desk agent interface. 🚧 Current[Webinar] Simplifying document workflows in financial services with Zoho Writer
Creating, sharing, and distributing complex documents are constant challenges in the financial services industry. That's why our next webinar is focused on how to simplify these document workflows. Join us on April 10, 2025, for a Zoho Writer webinar[Zoho Writer Webinar] Learn how to simplify your HR operations: Part 2
Hi Zoho Writer users, We're excited to announce the Zoho Writer webinar for July 2024: Learn how Zoho Writer can simplify your HR operations: Part 2. This webinar will focus on how Zoho Writer can help HR teams streamline and automate their entire hiring[Zoho Writer Webinar] Learn how to simplify your day-to-day HR operations
Hi Zoho Writer users, We're excited to announce the Zoho Writer webinar for June 2024: Learn how Zoho Writer can simplify your day-to-day HR operations. This webinar will focus on how to automate your entire hiring process and generate various types ofBranding of native system emails
Make system emails adjustable in terms of branding. We want our system to be completely white label, because it is not a CRM anymore, it's way more than that. We are following the strategy of "CRM for everyone" to use the CRM in all departments, not onlySupport “Never End” Option for Recurring Meetings in Zoho Meeting
Hello Zoho Meeting Team, Hope you are doing well. We would like to request support for creating recurring meetings with no end date in Zoho Meeting. Currently, when scheduling a recurring meeting, Zoho Meeting requires us to select a specific end date.Add Custom Field Inside Parts Section
How to Add Custom Field Inside Parts Section in Workorder like Category and Sub- Category[Important announcement] Removal of Zoho Writer's DocuFiller Add-on
Hi users, Effective 21st Feb. 2025, we will be removing the DocuFiller add-on for Zoho Writer's Fillable Templates. From that point on, the add-on's functionalities, such as sharing or publishing fillable forms for data collection and receiving submissionsSend Automated WhatsApp Messages and Leverage the Improved WhatsApp Templates
Greetings, I hope all of you are doing well. We're excited to announce a major upgrade to Bigin's WhatsApp integration that brings more flexibility, interactivity, and automation to your customer messaging. WhatsApp message automation You can now useWeekly Tips: Manage External Images in Zoho Mail
When you receive emails every day, whether from clients, newsletters, or services, many of them contain external images that automatically load when you open the message. While this can make emails look more engaging, it can also impact your privacy andImplementing a Self-Invoicing/Vendor Portal in Zoho Creator
Hello Zoho Community / Creator Experts, We would like to build a Self-Invoicing Portal (Vendor Portal) in Zoho Creator for our external contractors. Our goal is to allow approved contractors to log in, submit their invoice details (hours worked, projectFunction #32: Schedule low stock notifications on a timely basis to specific users of the organization
Hello everyone and welcome back to our series! For a business that heavily relies on inventory, monitoring the stock levels and getting timely notifications of low stock items will ensure a smooth sail. Zoho Books allows you to always keep a check onIs it really true that I can't set the default 'deposit to' account in 2025?
I've been using Books for 7 years and the default account has never been a problem. I usually manually reconcile invoices and have never had a thought about which account. It has always been my account. However, I recently noticed that for the past 4SINCH HUB MESSAGEMEDIA with ZOHO DESK
1) what I need from MessageMedia, 2) what I want to confirm on the Zoho Desk Dev Forum. MessageMedia – needs and requirements Goal: Send SMS from a Zoho Desk widget for EU users. Auth: HTTP Basic (API Key + Secret). Keys must not live in the browser.Function #46: Auto-Calculate Sales Margin on a Quote
Welcome back everyone! Last week's function was about displaying the discount amount in words. This week, it's going to be about automatically calculating the sales margin for a particular quote, sales order or an invoice. Business scenario Where there is sales, there's also evaluation and competition between sales reps. A healthy rivalry helps to better motivate your employees to do smart work and close deals faster and more efficiently. But how does a sales rep get evaluated? 90% of the time, it'sNext Page