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

        • Single Portal for Multiple Apps

          Hello, I'm just getting started with Zoho and I'm very overwhelmed. I am currently using the free trial of Zoho One, but if I can figure it out, I intend to upgrade to the paid version. Zoho One, of course, gives me  access to an entire suite of services/applications. One of the things I'd like to do is have a single place for clients (customers?) to log in and view current projects, invoices, contact information, etc. A single login for my clients. A single portal. I've come across documentation

        • 【開催報告】 大阪 ユーザー交流会 2025/11/20（木）Zoho CRM Plus 活用のアイデアとデータの“見える化”

          皆さま、こんにちは。コミュニティチームの中野です。 11/20（木）に、大阪 ユーザー交流会を開催しました。本投稿では、その様子をお届けします。 当日の登壇資料などもこちらに共有しますので、参加できなかった皆さまもご参照ください。 （Zoho 社員セッションの登壇資料については、11/28(金)に開催予定の東京回の開催報告で共有いたします） 今年2回目の開催となる大阪 ユーザー交流会では、株式会社KDDIウェブコミュニケーションズ 山田さんによる Zoho CRM Plus の事例セッションのほか、「Zoho

        • search and Smart Bar both missing in Mail

          One of the users on my account does not have the search bar at the top right or the Smart Bar at the bottom left of the desktop Mail app. Any ideas how to get those back?

        • Zoho CRM for Everyone's NextGen UI Gets an Upgrade

          Hello Everyone We've made improvements to Zoho CRM for Everyone's Nextgen UI. These changes are the result of valuable feedback from you where we’ve focused on improving usability, providing wider screen space, and making navigation smoother so everything

        • Contact custom field in layout

          Good day, all, I have an "Extension" custom field in contacts, and would like to display the contact extension in the ticket layout, but I don't seem to be able to. What am I missing? Thanks Rudy

        • From Zoho CRM to Paper : Design & Print Data Directly using Canvas Print View

          Hello Everyone, We are excited to announce a new addition to your Canvas in Zoho CRM - Print View. Canvas print view helps you transform your custom CRM layouts into print-ready documents, so you can bring your digital data to the physical world with

        • Can I execute two 'functions' when completing a mail merge from CRM?

          Hi, I have set up a mail merge from CRM Deals to a template. I want a copy of this to be saved in Workdrive, and then a copy also saved back into the deal record from which the merge occurred. I can do both independent of each other, and managed to get

        • Every rating counts: Shaping customer experience

          We are back to that beautiful time of the year. It is the season to reflect, be thankful, and appreciate everything that has happened throughout the year. Thanksgiving is a time we connect with our family, friends, and relatives to strengthen relationships,

        • Paging through API results. a major gap in your documentation.

          There is no way for me. to get all of my data through a single API call. Typically REST APis have mechanisms for paging through API results. But the documentation for the API I am using: https://desk.zoho.com/DeskAPIDocument#Introduction Has no mention

        • How to remove duplicate contacts

        • New to automation - please help

          Hi there! We are new to automations in Zoho. We built out one automation campaign and it seems to be firing off for some people but others not. Please advise what's the best practice or if anything we should tweak. Thank you so much!

        • Custom Field for Subscription

          Hi, I can't find a way to add a custom field (to contain a license key generated from our software) against a subscription? Is the only place to add this information in the Invoice module (as custom field for invoice)? When a customer views his subscription via the customer portal, there appears no way to display a license key for them? The invoice is not the natural place to store a license key for a particular subscription, so where else can this be stored and displayed?

        • Custom View and Custom Fields on Zoho Books

          Hi, I have some custom fields on Estimates and Invoices. I also use Custom Views so I can have a lot of information at a glance. I want to include my custom fields as columns in my custom views of estimates / invoice, but it looks like is not possible.

        • Zoho Expense - Report Templates

          Hi Expense Team, I do a recurring trip once every week which has the same cost: Per diem Milage Toll Payment It would be great if there was a feature which allowed me to clone a previously submitted report or create a template reports. This would save

        • Cannot Access Subform Display Order in Deluge

          As highlighted in this community post, we still have to deal with the significant limitation of not being able to access the user-sorted order of subform rows through Deluge. This creates a major disconnect between the UI capabilities and backend automation,

        • Zoho Mail iOS app update - RTL languages support and access emails using permalink and universal link, image upload resolution

          Hello everyone! In the most recent version of the Zoho Mail iOS app update, we have brought in support for RTL languages(Arabic and Urudu), providing a seamless reading experience with proper text alignment and layout throughout the app. We have also

        • Dropdown data depends on filters in another field.

          In my quote form I have a lookup field called Reseller that pulls from Accounts. I would like it to pull from Accounts, but only those accounts with an account field 'Type' where that is 'Reseller'. Does anyone know a way to do this? Similarly, I'd like

        • Is it possible to adjust the web browser tab title (when a ZoHo Desk ticket is opened)

          Hi All, When I open a ZoHo Desk ticket in a web browser, the tab title (text that appears at the top of the browser tab) uses the logic: *company icon picture* (xxxx) #ticket number - company name See below (highlighted in red) for reference. Company

        • Add Attachment Support to Zoho Flow Mailhook / Email Trigger Module

          Dear Zoho Support Team, We hope you are well. We would like to kindly request a feature enhancement for the Mailhook module in Zoho Flow. Currently, the email trigger in Zoho Flow provides access to the message body, subject, from address, and to address,

        • Collections Management: #7 Common Mistakes during Payment Collection

          Payment collection may appear straightforward in most cases. Still, as your customer base expands and transaction volume increases, it becomes clear that even small inefficiencies can lead to delayed payments, increased support load, or even revenue loss.

        • Recruit paid support?

          Hi all, Could anyone who has paid support package advise if it provides value for money with regards to support response times? Exploring the idea as unfortunately when we have faced issues with Recruit it has been a 7+ day timescale from reporting to

        • Unusual activity detected from this IP. Please try again after some time

          When i try to create new addresses on my account i am getting this error, it has been 24 hours now and i am still getting this error can anyone help

        • 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

        • Sortie de Zoho TABLE ??

          Bonjour, Depuis bientôt 2 ans l'application zoho table est sortie en dehors de l'UE ? Depuis un an elle est annoncée en Europe Mais en vrai, c'est pour quand exactement ??

        • Rename Record Summary PDF in SendMail task

          So I've been tasked with renaming a record summary PDF to be sent as part of a sendmail task. Normally I would offer the manual solution, a user exports the PDF and uploads it to a file upload field, however this is not acceptable to the client in this

        • Limitation with Dynamic Email Attachment Capture

          I've discovered a flaw in how Zoho Creator handles email attachments when using the Email-to-Form feature, and I'm hoping the Zoho team can address this in a future update. The Issue According to the official documentation, capturing email attachments

        • Presenting ABM for Zoho CRM: Expand and retain your customers with precision

          Picture this scenario: You're a growing SaaS company ready to launch a powerful business suite, and are looking to gain traction and momentum. But as a business with a tight budget, you know acquiring new customers is slow, expensive, and often delivers

        • Recruit API search

          Hi all, Attempting to call the search api endpoint from Postman using the word element as mentioned in api docs Search Records - APIs | Online Help - Zoho Recruit When making the call to /v2/Candidates/search?word=Saudi receive response of { "code": "MANDATORY_NOT_FOUND",

        • Text/SMS With Zoho Desk

          Hi Guys- Considering using SMS to get faster responses from customers that we are helping.  Have a bunch of questions; 1) Which provider is better ClickaTell or Screen Magic.  Screen Magic seems easier to setup, but appears to be 2x as expensive for United States.  I cannot find the sender id for Clickatell to even complete the configuration. 2) Can customer's reply to text messages?  If so are responses linked back to the zoho ticket?  If not, how are you handling this, a simple "DO NOT REPLY" as

        • How to update Multi File upload field

          Assume that i have a multi file upload field,how can i update the same field again?

        • Custom Field in Zoho Projects pulling into Analytics

          We have a client that we have built our their new business process using Zoho Projects, and we have build a lot of custom fields with their their Projects where they are capturing specific data points that we want to be able to track and pull data, as

        • Marketer's Space - Holiday season email marketing tips you should know

          Hello Marketers! Welcome back to another post in Marketer's Space! 'Tis the season—that time of the year everyone eagerly anticipates. While most look forward to relaxing, marketers will be super-busy from late November to early January. Mistakes can

        • Zia Competitor Alerts made easy with Zia's suggestions

          Hi everyone, In addition to the existing manually added competitors, Zia will now find your competitors for you - instantly. Earlier, you had to identify competitors through research manually, support tickets, or tradeshows—a time-consuming process that

        • Depreciated mergeAndStore Function Help!

          Hello, I have a function designed to create a PDF containing information from the fields in a Deals record. There is a Writer Mail Merge template in WorkDrive that is populated via Deluge code, and a copy of the resulting PDF is then attached to the record.

        • Workdrive Oauth2 Token Isn't Refreshing

          I have set up oauth for a bunch of zoho apis and have never had a problem with oauth. With workdrive i am using the exact same template i usually use for the other zoho apps and it is not working. All requests will work for the first hour then stops so

        • Add Custom Field Inside Parts Section

          How to Add Custom Field Inside Parts Section in Workorder like Category and Sub- Category

        • Zoho CRM Community Digest October 2025 | Part 2

          Hello Everyone! From new mobile capabilities and smarter integrations to real-world workflow fixes and developer insights, all the highlights from the second half of October is covered right here. Let’s dive in. Product Updates: Zoho CRM Mobile Updates:

        • CRM Related list table in Zoho analytics

          In Zoho Analytics, where can I view the tables created from zoho crm related lists? For example, in my Zoho CRM setup, I have added the Product module as a related list in the Lead module, and also the Lead module as a related list in the Product module.

        • Understanding Zoho Contracts

          Effective contract management relies on systems that are structured, organized, and reliable. Every feature, workflow, rule, and restriction in Zoho Contracts are designed the way they are to ensure consistency, compliance, and control across every stage

        • Tip of the Week #76– Automate your inbox during vacation in Zoho TeamInbox

          When you're on vacation or away from your desk, the last thing you want is for important emails to be missed or left unanswered. The good news is, you can easily set up rules in Zoho TeamInbox to assign incoming messages automatically to a teammate who's

        • Next Page