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

    • Sales IQ chat is not working in signed android apk

      I have integrated ZOHO sales IQ support chat and i have followed each step and its working fine in my development build but when i create signed APK for it. Chat does not work in it and showing awaiting for detail. I previously asked the same query but
    • COQL order by COUNT not working

      Dear community, I am trying to get a list of deal amounts per planner working on it and sorted to get see who has the least amount of deals. For some reason, I am unable to use sort by in combination with a COUNT. My original code was: query = "select
    • I want to duplicate a report and name it something else

      Hi, I have created a report, and now want to reproduce it and call it something else. so that I will end up with TWO separate reports with different titles. Please tell me how do I copy / reproduce a report please
    • Zoho CRM: Sales Rep Professional Certification Program on Coursera

      We are happy to share that we have published the Zoho Sales Representative Professional Certificate in partnership with Coursera, a leading platform for online learning and career development that offers access to courses and degrees from leading universities
    • OS X Notebook quits immediately upon launch

      NoteBook for OS X (Sequoia, but also under Sonoma) always quits immediately upon launch (so I cannot use the "Attach user log" option). I've restarted my MacBook but the problem persists. If it helps, attached is a diagnostic report from Library>Log
    • Can External users upload files or images to WorkDrive?

      I want to know if it is possible for someone externally through a link and PW be able to upload files and images onto WorkDrive?
    • Multi-line fields character limits

      Is there a way to set the character limit higher on multi-line fields so that we are not losing information pasted into the field? When the text is entered or pasted, there is no error to say that the text is too large. After saving and going back to view most of the text is gone.   Also, when viewing the resume, the text is not wrapped in the multi line fields and can t be read without scrolling across the page.
    • Taz bot not working — What should I do to resolve this issue?

      I am experiencing issues with the Taz bot in Zoho Cliq—not receiving responses or it does not seem to work as expected. Could you please explain why the Taz bot might not be functioning and what steps I should take to resolve this issue? Thank you!
    • OneNote Migration

      I am trying to migrate two notebooks from OneNote. For five days now I have had no notification that migration has completed and the migration page show 50% complete - one notebook completed one not finished. It just stays like this. I am unable to cancel
    • Set various time slot reminders for task and event

      Hi I would like known if there is possibility to set various time reminders for a task or event like we have the possibility to do in google calendar or google task. For example I'am creating an event or task and I want to be alerted before 30min and
    • Zoho Calendar not functioning---cannot edit, add attendees, etc.

      Hello, My calendar is acting strange. I'm using Chrome as my browser and pop ups are not blocked (the calendar worked fine yesterday). When creating an event, I'm not able to "edit" the event and add attendees, etc. The link is non-responsive. I cannot
    • Unable to send message; Reason:554 5.1.8 Email Outgoing Blocked

      Hi, I sent few emails and got this: Unable to send message; Reason:554 5.1.8 Email Outgoing Blocked And now I have few days since I cant send any email. Is there something wrong I did? Also can someone fix this please
    • Spilt Axis for stacked column and line graph

      Each month around this time I prepare a business review deck. One of the biggest annoyances I have with Zoho, also happens to be something that most other platforms have provided for a long time now, and that is being able to create a chart with stacked
    • Pin a note on top

      Dear Zoho Notebook Team, Please highly consider adding ability to pin a note on top and arrange pinned notes. I have a lot of notes that I want to pin important ones on top and this feature is missing badly. Thank you.
    • Windows 11 app ver 2.2.8

      I have been trialing Zoho Notes syncing between my PC and iphone. No problems with iphone but the Windows 64 bit app ver 2.2.8 was very buggy and would lock up completely, needing a Control Alt Delete etc to close it down. It seemed to be connected to
    • Deluge Script: Onboarding → Access Form

      Hello everyone, Edit: Sorry, I think I put this topic in the wrong section. I’ve recently run into an issue that’s been giving me a bit of a headache for the past few weeks. Context: This is my first time using Deluge to create a script, but it’s not
    • Windows Device Authentication

      We have recently started using ManageEngine, and my boss saw a device management feature in the Zoho One directory. We thought it would either help give us more intergration into Zoho one through bringing ManageEngine services through Zoho one. Or, it
    • How can I change spell check language?

      I cannot find the way to change spell check language. My "display language" is English, and I want to have the same one for Spell Check, but it is Russian!!! How can I change it? In one of your explanations you mentioned that I have to choose it from
    • Mail is so slow - doesn't even work!

      Mail has been getting slower and slower - and today it's not even pulling up emails in either Inbox or Unread. This is beyond frustrating since email is a big part of business. Sent a request through the useless help portal - no response. Called the useless
    • User marked as SPAMMER. Mail Fetch has also been disabled for any active POP accounts.

      I am the administrator for joelles.com One of our accounts has been blocked saying this: User marked as SPAMMER. Mail Fetch has also been disabled for any active POP accounts. I cannot change the disabled account in the control panel as it says that it
    • My domain did not activate

      Hi, my domain (apsaindustrial.com.ar) did not activate, and the phone verification message never arrived. Please would you solve this problem? Thanks.
    • ME SALE ESTE ERROR: No fue posible enviar el mensaje;Motivo:554 5.1.8 Email Outgoing Blocked

      Ayuda!! Me sale este error al intentar enviar mensajes desde mi correo electronico de Zoho! Tampoco recibo correos pues cuando me envia rebotan. Ayuda, Me urge enviar unos correo importantes!! Quedo atenta MAGDA HERNANDEZ +5731120888408
    • Is there a way to sync Tags between CRM and Campaigns/Marketing Hub?

      I wonder if there is a way to synch the tags between CRM and Marketing-Hub / Campaigns?
    • how to see if a specific contact opened an email in zoho campaign?

      how to see if a specific contact opened an email in zoho campaign?
    • Revenue Management: #8 Revenue Recognition in Educational & Training Institutions

      Educational Institutions and training centres typically collect course fees at the time of enrolment, sometimes for a one-day workshop and sometimes for a year-long certification course. You might also charge separately for course materials or evaluation.
    • How to Customize Task Creation to Send a Custom Alert Using JavaScript in Zoho CRM?

      Hello Zoho CRM Community, I’m looking to customize Zoho CRM to send a custom alert whenever a task is created. I understand that Zoho CRM supports client scripts using JavaScript, and I would like to leverage this feature to implement the alert functionality.
    • how to use validation rules in subform

      Is it possible to use validation rules for subforms? I tried the following code: entityMap = crmAPIRequest.toMap().get("record"); sum = 0; direct_billing = entityMap.get("direct_billing_details"); response = Map(); for each i in direct_billing { if(i.get("type")
    • Using files from Zoho CRM in Gemini/ChatGPT/Claude

      Hi all, I’ve got subscriptions to Gemini and a few other AI tools which I use for tasks like data enrichment, email composition, etc. In our workflow, we often receive various documents from clients — such as process workflows, BRDs/requirement documents
    • Enhancements to the formula field in Zoho CRM: Auto-refresh formulas with the "Now" function, stop formula executions based on criteria, and include formulas within formulas

      Dear Customers, We hope you're well! By their nature, modern businesses rely every day on computations, whether it's to calculate the price of a product, assess ROI, evaluate the lifetime value of a customer, or even determine the age of a record. With
    • Maximum file limit in zoho people LMS

      Dear Team, I am having approximately 4.9 GB of material, including PPTs and videos for uploading in zoho people LMS course. May I know what is the maximum limit limit for the course files Thanking you, With regards, Logeswar V Executive _ Operations
    • Dynamically prefill ticket fields

      Hello, I am using Zoho Desk to collect tickets of our clients about orders they placed on our website. I would like to be able to prefill two tickets fields dynamically, in this case a readonly field for the order id, and a hidden field for the seller
    • Optimize your Knowledge Base for better visibility by allowing search engine crawling and indexing

      All you need to know about no-follow and no-index in KB. What are article crawlability and indexability? Crawlability and indexability are vital for making an article visible and accessible to search engines. When a search engine crawls an article, it
    • Has anyone created a public ASAP Guide that I can check out?

      I am thinking of adding an ASAP guide to my web application, but I have noticed that the ASAP widget itself can be really slow to load sometimes. Has anyone created a public ASAP Guide that I can check to see how performant it is? I don't want to spend
    • Zoho Desk Partners with Microsoft's M365 Copilot for seamless customer service experiences

      Hello Zoho Desk users, We are happy to announce that Zoho Desk has partnered with Microsoft's M365 to empower customer service teams with enhanced capabilities and seamless experiences for agents. Microsoft announced their partnership during their keynote
    • What’s New in Zoho Analytics – September 2025

      Hello Users!! In this month’s update, we’re raising the bar across multiple touchpoints, from how you bring in data, plan and track projects to how you design and brand your dashboards. We’ve added the all-new Gantt chart for project visualization, expanded
    • Zoho MCP has no tools for Creator or 3rd Party Apps?

      I don't see a Zoho MCP community forum so putting this here. Two big problems I see: 1) Although Zoho advertises "over 950 3rd party apps" as available through their MCP, when I go to "Add Tools" there are ZERO 3rd party apps available to choose from.
    • Zoho Forms - Zoho Drive connection - Shared Drives not supported

      Hello i am stuck with Google Drive Connection There is no supported shared drives Connection is not support shared drives boolean Query Parameters - supportsAllDrives=true&supportsTeamDrives=true to activate fetch files from the shared drives. Ahat need
    • Can't create package until Bill created?

      I can't understand why we cannot create a package until a Bill is created? We are having to created draft Bills to create a package when the item is received, but we may not have received a Bill from the supplier. Also, Bill # is required, but we normally
    • Whats the Time out Limit for API Calls from Deluge?

      Hi Creator Devs, We are making API calls to third party server via Deluge. Getting this error message: Error at line : 24, The task has been terminated since the API call is taking too long to respond. Please try again after sometime. Whats the default
    • How to get the authorization code for domain transfer from Zoho?

      I have transferred my domain from zoho to godaddy, and that needs a authorization code. I haven't got any mail containing that. How to get the authorization code from domain transfer? Thanks, Arun
    • Next Page