New GST Slabs (Quick View)

5% GST

• Daily essentials: coffee, milk, plant-based drinks
• Garments & footwear below ₹2,500
• Personal care, packaged foods

18% GST

• Most standard products
• Electronics, home appliances
• Premium garments & footwear ₹2,500 and above

40% GST

• Sugary, fizzy, caffeinated drinks
• Luxury cars & select sin goods

Still Under Cess

• Tobacco, pan masala, cigarettes
• GST + Compensation Cess (no simplification)

GST on Garments – Simple Rules for Shopkeepers

Garments below ₹2,500 → 5% GST

Example: A T-shirt priced at ₹2,499 will attract only 5% GST.

Benefit: Mass-market apparel stays affordable; even branded apparel becomes cheaper for consumers.

Garments ₹2,500 and above → 18% GST

Example: A branded kurta priced at ₹2,500 (or above) will be billed at 18%.

Benefit: Premium clothing follows standard tax; clear distinction between price tiers.

GST on Footwear – No More Confusion

Footwear below ₹2,500 → 5% GST

Example: A school shoe pair for ₹2,499 = only 5% GST.

Benefit: Branded footwear stays cheaper for customers.

Footwear ₹2,500 and above → 18% GST

Example: A sports shoe priced at ₹2,500 will carry 18% GST.

Benefit: Premium footwear clearly falls under standard slab.

GST on Beverages – A Big Change

Earlier: Sugary/fizzy beverages like cola or energy drinks → 28% GST + Cess (complex).

Now: Flat 40% GST.

Example: A ₹100 cola may now cost around ₹110+ after tax.

Impact: Sugary/fizzy drinks get costlier.

On the other hand: Coffee, dairy drinks, soya milk → 5% GST.

Impact: Healthier drinks get cheaper and more attractive for consumers.

Tobacco — Still Complex

Tobacco, cigarettes, and pan masala remain under GST + Compensation Cess. There’s no simplification here; compliance remains more involved.

How Peddle Plus One ERP Helps You Manage GST Easily

• Auto Tax Updates: No manual math. Update GST by item, by category, or by product group in bulk.
• Built-in Garments & Footwear Rules: Automatically separates items below/above ₹2,500 via Product Category master rules.
• Cess vs GST Handling: Differentiates beverages (40% GST) from tobacco (GST + Cess).
• GST Filing Made Easy: Automated reports for faster returns and lower penalty risk.
• Multi-channel Selling: Consistent tax rules across POS, online store, and wholesale billing.

Takeaway

• Retailers: Cheaper garments & footwear under ₹2,500 can boost volume sales.
• D2C Brands: Healthier beverages and essentials become more attractive at lower GST.
• Wholesalers: Simpler slabs → easier bulk billing and faster compliance.

With an ERP, you avoid miscalculations or slab mistakes — the system handles it while you focus on sales and growth.

In short: GST 2025 makes life easier. With ERP, it becomes even simpler.