New GST Rates 2025: What the Two-Slab Structure Means for Logistics and Transport

Fleetable Tech
Sep 6
2 min read

Introduction: GST Reform in 2025

The new GST rates 2025 mark one of the biggest updates since India introduced the Goods and Services Tax. This restructuring impacts a wide range of products—from daily essentials to premium luxury items—with direct consequences for the logistics and transport industry.

At Fleetable, we simplify these changes for fleet owners, operators, and logistics professionals so you can stay compliant and future-ready.

The New GST Structure: Simpler and Smarter

Under the new GST rates 2025, the old four-tier system has been replaced with a more streamlined model:

5% Slab – For essentials and commonly used goods.
18% Slab – Covers most standard goods and services.
40% Special Slab – Applied to luxury and “sin” goods such as high-end cars, tobacco, and sugary drinks.

For logistics and transport businesses—where multiple tax brackets often created billing complexities—this change reduces compliance headaches and improves transparency.

Price Drops Under the New GST Rates 2025

Several items are now cheaper thanks to revised GST slabs. Examples include:

Food items: roti, paratha, paneer, ice cream.
FMCG goods: shampoos, toothpaste, hair oil, bicycles, kitchenware (reduced from 18% to 5%).
Electronics: televisions and select appliances.

For logistics operators, cheaper goods often lead to:✅ Increased demand from consumers✅ Higher freight volumes✅ Competitive advantages in supply chains

Insurance Exemption: A Big Relief in 2025

Under the new GST rates 2025, life and health insurance premiums are fully exempt.

For logistics and fleet businesses, this means:

Reduced costs for insuring vehicles and employees
Greater financial protection
Wider adoption of insurance coverage at lower costs

Transport and Automotive Sector Impact

The GST updates also target vehicles, transport equipment, and infrastructure essentials:

More affordable: Small cars, motorcycles (up to 350cc), ACs, and dishwashers now at 18% (down from 28%).
Luxury remains premium: Yachts, racing cars, high-end vehicles, and sugary drinks fall under the 40% slab.
Green mobility push: Electric Vehicles (EVs) continue to enjoy just 5% GST.
Infrastructure boost: Cement is now taxed at 18%, reducing costs for logistics projects tied to construction.

This makes mid-range vehicles and EVs more attractive for fleet upgrades while encouraging greener logistics solutions.

What Fleet Owners Should Do

For transport and logistics companies, the new GST rates 2025 are an opportunity to simplify operations. Using a platform like Fleetable’s all-in-one fleet and transport management software, you can:

Automate GST invoicing and compliance
Track operating costs in real time
Reduce paperwork with digital reporting
Stay ahead of future tax updates with built-in compliance tools

Conclusion

The new GST rates 2025 represent a decisive step toward simplicity, fairness, and sustainable growth. Essentials are now more affordable, EV adoption continues to be incentivized, and luxury items contribute more in taxes.

For logistics and transport businesses, this translates into: