Items with 0% GST India
Zero GST! Complete List of Items Now Exempt from GST (Effective 22nd September 2025)
The 56th GST Council Meeting
has brought in one of the most significant reforms since the introduction of
GST in 2017. India’s GST structure has now been simplified into two main slabs
– 5% and 18%, along with a Nil (0%) GST rate for essential goods
and services.
From 22nd September 2025,
several essential food products, life-saving medicines, stationery items,
defence equipment, and insurance services will now attract zero GST,
making them completely tax-free.
This move is expected to reduce
household expenses, lower healthcare costs, and bring major relief to students,
patients, and consumers across India.
📅
Effective Date of Nil GST Rates
➡️
22nd September 2025
🥛
Essential Food Products Now at 0% GST
|
HSN
Code |
Description |
Earlier
GST Rate |
New
GST Rate |
|
0401 |
Ultra-High Temperature (UHT) Milk |
5% |
Nil |
|
0406 |
Paneer (Chena), pre-packaged &
labelled |
5% |
Nil |
|
1905 |
Pizza bread |
5% |
Nil |
|
1905 / 2106 |
Khakhra, chapathi, roti |
5% |
Nil |
|
2106 |
Paratha, parotta & other
Indian breads |
18% |
Nil |
✅ All types of Indian breads,
including paratha, roti, chapathi, khakhra, and pizza bread, are now
fully exempted from GST.
💊
Life-Saving Drugs & Medicines – Now Tax-Free
Items with 0% GST India
The GST Council has exempted several
critical and orphan drugs from GST to reduce treatment costs for
patients.
Group
1 – Earlier @5% → Now Nil
- Agalsidase Beta
- Imiglucerase
- Eptacog alfa (recombinant coagulation factor VIIa)
Group
2 – Earlier @12% → Now Nil
- Onasemnogene abeparvovec
- Asciminib
- Mepolizumab
- Pegylated Liposomal Irinotecan
- Daratumumab (IV & Subcutaneous)
- Teclistamab
- Amivantamab
- Alectinib
- Risdiplam
- Obinutuzumab
- Polatuzumab vedotin
- Entrectinib
- Atezolizumab
- Spesolimab
- Velaglucerase Alpha
- Agalsidase Alfa
- Rurioctocog Alpha Pegol
- Idursulphatase
- Alglucosidase Alfa
- Laronidase
- Olipudase Alfa
- Tepotinib
- Avelumab
- Emicizumab
- Belumosudil
- Miglustat
- Velmanase Alfa
- Alirocumab
- Evolocumab
- Cystamine Bitartrate
- CI-Inhibitor Injection
- Inclisiran
📚
Stationery & Education Essentials – Now Nil Rated
|
HSN
Code |
Item |
Earlier
GST Rate |
New
GST Rate |
|
4016 |
Erasers |
5% |
Nil |
|
4802 |
Uncoated paper & paperboard
for notebooks |
12% |
Nil |
|
4820 |
Exercise books, graph books,
laboratory notebooks |
12% |
Nil |
|
4905 |
Maps, atlases, wall maps, globes,
charts |
12% |
Nil |
|
8214 |
Pencil sharpeners |
12% |
Nil |
|
9608, 9609 |
Pencils, crayons, pastels, chalks |
12% |
Nil |
🎓 This change will
significantly reduce the cost of education supplies for students.
⚙️
Other Goods Now at 0% GST
Several high-value items, especially
for defence, research, and diamond industries, are now tax-free.
- Technical documentation (Notification No.
19/2019-Customs) – IGST 18% → Nil
- Natural cut & polished diamonds ≤ 25 cents – IGST
18% → Nil
- Works of art & antiques – IGST 18% → Nil
- Flight & Target Motion Simulators – IGST 18% → Nil
- Defence aircraft parts & sub-assemblies – IGST 18%
→ Nil
- Military transport aircraft (C-130, C-295MW) – IGST 18%
→ Nil
- Deep Submergence Rescue Vessels – IGST 18% → Nil
- Drones, high-performance batteries, naval sonobuoys –
IGST 18% → Nil
- Ship-launched missiles, rockets (>100mm calibre) –
IGST 18% → Nil
🛡️
Insurance Services – Now GST-Free
|
Service |
Earlier
GST Rate |
New
GST Rate |
|
Individual health insurance (incl.
reinsurance) |
18% |
Exempt |
|
Individual life insurance (incl.
reinsurance) |
18% |
Exempt |
💡 This exemption is a huge
relief for policyholders, making insurance more affordable.
Items with 0% GST India
❓
Key FAQs on GST Exemptions
Q1. What is the GST rate on food
preparations not specified in the schedules?
➡️ Such items will attract 5% GST.
Q2. Does the exemption on UHT milk
also cover plant-based milk?
➡️ No. Plant-based milk drinks
(except soya milk at 12%) earlier attracted 18% GST. Now all such drinks are
taxed at 5%.
Q3. Why was paneer exempted but not
other cheeses?
➡️ Paneer in unpackaged form was
already exempt. Now pre-packaged paneer is also Nil-rated to support the
small-scale dairy sector.
Q4. Why not exempt all medicines?
➡️ A full exemption would block
manufacturers from claiming ITC, raising production costs and consumer prices.
Hence, only specific life-saving drugs have been exempted.
Q5. Why reduce GST on medical
devices despite inverted duty structure?
➡️ To lower healthcare costs. Refund
of ITC is still available to manufacturers, minimizing issues of inverted duty.
🔑
Key Takeaway
The rationalisation of GST rates
is aimed at making essential goods and services affordable while maintaining
tax efficiency. From food items to stationery, medicines, insurance, and even
defence equipment, this Nil GST reform impacts households, students,
patients, and industries alike.
Airfinac.com, its author/writer and associates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.