Zero GST Items List 2025: Complete List of Goods & Services Exempt from GST (Effective 22nd September 2025)
The 56th GST Council Meeting has introduced one of the most important tax reforms since the launch of GST in 2017. As part of GST rate rationalisation, India’s indirect tax structure has now been simplified into two main slabs – 5% and 18%, along with a Nil (0%) GST rate for essential goods and services.
As per the latest decision, the zero GST items list 2025 comes into effect from 22nd September 2025, under which several essential food products, life-saving medicines, stationery items, defence-related goods, and insurance services have been made completely tax-free. This move is aimed at reducing household expenses, lowering healthcare costs, and easing the financial burden on students, patients, and consumers across India.
📅 Effective Date of Zero GST Items List 2025
➡️ 22nd September 2025
All exemptions and Nil-rated supplies mentioned in the zero GST items list 2025 are applicable from this date onwards.
🥛 Essential Food Products Included in Zero GST Items List 2025
Several daily-use food items have now been shifted to the Nil GST slab, making them more affordable for households.
| 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 |
✅ With this change, all types of Indian breads such as paratha, roti, chapathi, khakhra, and pizza bread are now part of the zero GST items list 2025.
💊 Life-Saving Drugs & Medicines Under Zero GST Items List 2025
To reduce treatment costs for patients suffering from rare and critical diseases, the GST Council has exempted several life-saving and orphan drugs from GST.
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
💡 These medicines are now fully covered under the zero GST items list 2025, significantly lowering healthcare expenses.
📚 Stationery & Education Essentials Now at Nil GST
The GST exemption on education-related goods will help reduce costs for students and educational institutions.
| 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, globes, charts | 12% | Nil |
| 8214 | Pencil sharpeners | 12% | Nil |
| 9608, 9609 | Pencils, crayons, pastels, chalks | 12% | Nil |
🎓 These items are now officially part of the zero GST items list 2025, making education more affordable.
⚙️ Other Goods Covered Under Zero GST Items List 2025
Several high-value and strategic goods have also been exempted from IGST.
- 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 and rockets (above 100mm calibre) – IGST 18% → Nil
🛡️ Insurance Services Now GST-Free
| Service | Earlier GST Rate | New GST Rate |
| Individual health insurance (including reinsurance) | 18% | Exempt |
| Individual life insurance (including reinsurance) | 18% | Exempt |
💡 The inclusion of insurance services in the zero GST items list 2025 is expected to make premiums more affordable for policyholders.
The zero GST items list 2025 reflects the government’s focus on affordability, healthcare access, education support, and strategic sector growth. From essential food items and stationery to life-saving medicines, insurance services, and defence equipment, these GST exemptions will have a wide-ranging positive impact on households, students, patients, and key industries across India.
❓ FAQs on Zero GST Items List 2025
Q1. What is the GST rate on food preparations not specified in schedules?
➡️Such food items will attract 5% GST.
Q2. Does zero GST on UHT milk apply to plant-based milk?
➡️No. Plant-based milk drinks (except soya milk earlier at 12%) will now attract 5% GST.
Q3. Why is paneer included in the zero GST items list 2025?
➡️Unpackaged paneer was already exempt. Now, pre-packaged paneer is also Nil-rated to support small dairy producers.
Q4. Why are only selected medicines exempt from GST?
➡️A full exemption would block input tax credit (ITC), increasing costs. Hence, only critical medicines are covered.
Q5. How does zero GST help reduce healthcare costs?
➡️Nil GST directly lowers the final price paid by patients without increasing manufacturing costs
Q6. What is the GST rate on food preparations not specified in the schedules?
➡️ Such items will attract 5% GST.
Q7. 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%.
Q8. 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.
Q9. 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.
Q10. 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.
DISCLAIMER
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.
