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

    • Having Trouble Opening The Candidate Portal

      Recently am having trouble opening the Candidate Portal. It keeps loading but cannot display any widgets. Tried Safari, Chrome and Edge. Non of them work. Please solve the problem ASAP.
    • Tip of the Week - Spot Risky Sales with Conditional Formatting

      In Zoho Analytics, small tweaks can lead to big insights. One such feature is Conditional formatting based on other columns, your key to instantly spotting where sales success is overshadowed by product returns. Our tip this week shows you how to apply
    • How do I duplicate / copy a campaign

      I am evaluation Zoho Campaigns and sent an email to one of my personal email accounts from Zoho Campaigns.  It went into my junk file in Hotmail. I want to duplicate that same (1-page) campaign and send it to another of my personal accounts to try to
    • For a Bill, can "Pay via Check" - Can we also "Pay via Check" when documenting refund for payment?

      We really like when we have a Bill in Zoho Books that we can record payment by selecting "Pay via Check" and that will cut the check for us from Zoho Books. However, when we have to write checks as a result of invoice overpayment, we can not select "Pay
    • Creator Change History: Ways to improve

      Hi Everyone, Recently been working in developing this change history(an idea from Zoho Forms) - unlike forms that you can this with a click but using Creator, we can use "old" keyword. The concept I come up with is to put the result in a table however,
    • Suitability of Zoho One (Single User License) for Multi-State GST Compliance & Cost Analysis

      Hello Zoho Team, I am an e-commerce business owner selling on platforms like Amazon, Flipkart, and Meesho, and I'm currently using their fulfillment warehouses. I have two GSTIN registrations and am planning to register for an additional 2-3 to expand
    • add employees and customiz

      I want a Zoho software to track employees record. I logged in a demo so now I tried adding employee, first thing when I click on add employee it takes me to a page where it says add user maximum 10 users, my first doubt why users I don't want employees
    • Inactive User Auto Response

      We use Zoho One, and we have a couple employees that are no longer with us, but people are still attempting to email them. I'd like an autoresponder to let them no the person is no longer here, and how they can reach us going forward. I saw a similar
    • Zoho People Attendance Module - Split Shifts

      Hello, Our business employs a number of college students who often split their workdays between work hours and class schedules, resulting in split shifts. For example: Employee 1 works 9am to 11:30am and then leaves for class, returning to work at 3pm
    • Zoho One subscription

      we have got Zoho CRM for 3 users and we paid for the app , and we have still 9 months to go , but if we join Zoho one , does it mean the payment for that subscription would be a waste? Please help. Thanks.
    • How Zoho CRM Can Enhance Your Faucets Accessories Business Operations?

      In today's competitive market, having a reliable CRM system is crucial for managing customer relationships and streamlining business operations. For businesses in the faucets accessories niche, Zoho CRM offers powerful tools to help manage everything
    • Dashboard

      I’m currently working on a project using the Zoho IoT Cloud with an ESP32 and MQTT. I’ve successfully connected the ESP32 to Wi-Fi and MQTT, and the data from the ESP32 is displayed in the telemetry section of the cloud. However, when I try to create
    • Can i connect 2 instagram accounts to 1 brand?

      Can i connect 2 instagram accounts to 1 brand? Or Do i need to create 2 brands for that? also under what subscription package will this apply?
    • Zoho Forms - Improved Sub-Forms

      Hi Forms team, I'm helping a client move from JotForms to Zoho Forms and I've found another opportunity for improvement. In the below screenshot, JotForm left and Zoho Forms right. The Zoho Forms Sub-Form is quite a poor visually. There is no way to make
    • What's New in Zoho Billing | Q3 2025

      Hello everyone, We are excited to share the latest set of updates and enhancements made to Zoho Billing in Q3 2025. From the latest GST updates to multi-level discounting, Zia-powered report summaries, and customizable web forms, these updates are designed
    • How to Delete Personal Account Linked with My Mobile Number in past or by someone else

      How to Delete Account Created with My Mobile Number in past or by someone else This is creating issues in making or sync with my credentials mobile and email address..
    • WhatsApp Business Calling API

      Dear Zoho SalesIQ Team, I would like to request a feature that allows users to call WhatsApp numbers directly via Zoho SalesIQ. This integration would enable sending and receiving calls to and from WhatsApp numbers over the internet, without the need
    • Does Zoho Learn integrate with Zoho Connect,People,Workdrive,Project,Desk?

      Can we propose Zoho LEarn as a centralised Knowledge Portal tool that can get synched with the other Zoho products and serve as a central Knowledge repository?
    • Marketer's Space - Going beyond basics: Smarter ecommerce marketing with Zoho Campaigns

      Hello Marketers, Welcome back to this week's Marketer's Space. In the last post, we discussed the basics of email marketing and how to get started with email marketing in ecommerce. In this part, we'll dive much deeper into some other advanced features
    • Connecting two modules - phone number

      Hi, I’d like some guidance on setting up an automation in Zoho CRM that links records between the Leads module and a custom module called Customer_Records whenever the phone numbers match. Here’s what I’m trying to achieve: When a new Lead is created
    • Zoho Marketing Automation 2.0 - Landing Page function not working

      Dear Zoho Team, I am working on implementing Zoho Marketing Automation 2.0, and am now looking into the section "Lead Generation". If I open the "Landing Pages" section, I immediately get an Error code: Error: internal error occurred. Can you help me
    • Unable to use Sign "You have entereed some invalid characters"

      Unable to use Sign "You have entered some invalid characters" I do not see any invalid characters. The text in "Leave a Note" is plain text which I entered directly into the field. See attached screenshot
    • cannot login from outlook on mobile

      Hi there,   I tried to set up my email accounts on my iphone using outlook, but it always return email address and password error. Please find the attachment for the screenshot. I am pretty sure that I typed in the correct email address and password and the imap has been enabled from zoho admin account. I can configure the email address on iphone default mail service as well as outlook on pc, the problem only occurs on the outlook app on mobile. I do need to use this app instead of the iphone default
    • Elevate your CX delivery using CommandCenter 2.0: Simplified builder; seamless orchestration

      Most businesses want to create memorable customer experiences—but they often find it hard to keep them smooth, especially as they grow. To achieve a state of flow across their processes, teams often stitch together a series of automations using Workflow
    • Messages not displayed from personal LinkedIn profile

      Hello. I connected both our company profile and my personal profile to Zoho social. I do see all messages from our company page but none from my private page. not even the profile is being added on top to to switch between company or private profile,
    • "Performed changes in the query is not allowed due to following reason" when adding columns or reordering data

      I'm trying to make changes to a query but every time i try to save it i get this error message. I'm not touching the data it's flagging. All I've tried to do is reorder a couple of fields and add a new one. Why won't it let me do this? It's a core query
    • Onboard new users easily with native screen recording in Zoho Projects Plus

      Communication involving both visual and audio elements tends to capture more interest among the audience. Whenever we onboard new employees to the organization, the task of engaging them in the induction sessions, and keeping the spark going in their
    • Request to Add Support for PDF Templates and More Flexibility in Email Editor

      Hi Zoho Campaigns Team, I hope you're doing well. I wanted to share some feedback and request a few improvements in the Email Template feature of Zoho Campaigns. Right now, we can create email templates using the HTML editor, which is helpful. But we’re
    • Can you stop Custom View Cadences from un-enrolling leads?

      I'm testing Cadences for lead nurture. I have set un-enroll properties to trigger on email bounce/unsubscribe, and do NOT have a view criteria un-enroll trigger. However, help documents say that emails are automatically un-enrolled from a Cadence when
    • Zoho Desk Android and iOS app update: Agent detail overview

      Hello everyone! We’ve introduced agent detail overview on the Zoho Desk Android and iOS app update. With this feature, you can get a complete view of agent’s tickets, response times, logged hours (for both tickets and activities), customer happiness ratings
    • Blog Widget: Show recent blog posts on my homepage

      Hey there I am using the Zoho Sites Blog feature. On my homepage, on the bottom I'd like to have a featured content section where I show some of my blog posts (selected, most recent, filtered by category and so on...). It would be nice to have a blog
    • How to iterate through excel data using zoho rpa

      I wanted to iterate or loop through excel data ( datatable). How can i do that
    • Zoho Commerce

      Hi, I have zoho one and use Zoho Books. I am very interested in Zoho Commerce , especially with how all is integrated but have a question. I do not want my store to show prices for customers that are not log in. Is there a way to hide the prices if not
    • Mass (Pull back) (Close WOs) (Close APs)

      Hi develop team. Just idea because Zoho FSM is great but its too manual. we have a lot of task to do every day and the system needs to have more features to automatic our tasks. I need to close several WOs, APs and Pull Back per day. Please we need mass
    • Customising Zohidesk portal default widgets

      Hello, I'm wondering how could I customise the default widgets such as "popular topics", "popular articles" using CSS or to make the tiles at the bottom match the ones that I made in the picture attached. I have made some custom widgets and edited them
    • If there’s a batch at the end, the ‘mark as inactive’ function doesn’t work.

      when my batch has a date to batch end and I "mark as inactive" he batch does not obey the status and reactivates the batch.
    • Seamless multilingual messaging and tone control in Zia IM Composer

      Hello everyone! Managing customer conversations across multiple languages can be time-consuming. Using Zia in the Instant Messaging (IM) Composer helps you overcome this by providing tools to translate content, adjust your tone, and refine your messages
    • Advanced Deluge help needed with custom function and COQL limits

      I have a scheduled function that takes a snapshot of specific metrics and saves them to a custom module. However I'm struggling with the limits of COQL. I attach my full code, but an example of the issues I'm having is that it's erroring with a 'Limit
    • Tip of the Week - Conditional Formatting Chart

      Conditional formatting allows you to highlight your data series based on a pattern or a trend in your data. This makes it easy for you to identify when your data reaches certain values or when it deviates from the trend.  Zoho Analytics allows you to
    • Zoho Learn - AI Translate

      Hi Learn team, I had a situation today where I was providing training to a client team and I had written articles into their Zoho Learn to support their learning. I realised that one of the team members was a non-native English speaker and they were struggling
    • Next Page