Sri Vijaya Puram, Sept 24: In pursuant to the 56th GST Council Meeting, the UTGST Department has informed to all citizens of Andaman & Nicobar Islands, that the following changes comes in effect from 22nd September’2025 in Goods and Service Tax (GST).
• Exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country.
• Exemption of GST on all individual health insurance policies (including family floater policies and policies for senior citizens) and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country
• Rationalisation of the current 4-tiered tax rate structure into a citizenfriendly ‘Simple Tax’ – a 2 rate structure with a Standard Rate of 18% and a Merit Rate of 5%; a special de-merit rate of 40% for a select few goods and services
• Reduction of GST from 18% OR 12% to 5% on a host of common man items such as, hair oil, toilet soap bars, shampoos, toothbrushes, toothpaste, Bicycles, Tableware, kitchenware, other household articles
• Reduction of GST from 5% to NIL on Ultra-High Temperature (UHT) milk, Prepackaged and labelled chena or paneer; All the Indian Breads will see NIL rates (Chapati or roti, paratha, parotta, etc)
• Reduction of GST from 12% OR 18% to 5% on almost all of the food items such as packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, Butter, Ghee, etc.
• Reduction of GST from 28% to 18% on Air-conditioning machines, TVs~32 inch(all TVs now at 18%), Dishwashing machines, Small cars, Motorcycles equal to orless than 350 CC
• Reduction of GST from 12% to 5% on agricultural goods, such astractors, agricultural, horticultural or forestry machinery for soilpreparation or cultivation, harvesting or threshing machinery,including straw or fodder balers, grass or hay mowers, compostingmachines etc
• Reduction of GST from 12% to 5% on labour intensive goods such asHandicrafts, Marble and travertine blocks, granite blocks, andIntermediate leather goods
• Reduction of GST from 28% to 18% on Cement
• Reduction of GST from 12% to NIL on 33 lifesaving drugs and medicinesand from 5% to NIL on 3 lifesaving drugs & medicines used fortreatment of cancer, rare diseases and other severe chronic diseases.
• Reduction of GST on all other drugs and medicines from 12% to 5%.
• Reduction of GST from 18% to 5% on various medical apparatus anddevices used for medical, surgical, dental or veterinary usage or forphysical or chemical analysis
• Reduction of GST from 12% to 5% on various medical equipment andsupplies devices such as wadding gauze, bandages, diagnostic kits andreagents, blood glucose monitoring system (Glucometer) medicaldevices, etc
• Reduction of GST from 28% to 18% on Small Cars and Motorcycles equalto or below 350cc
• Reduction of GST from 28% to 18% on buses, trucks, ambulances etc
• Uniform rate of 18% on all auto parts irrespective of their HS code; Three-Wheelers from 28% to 18%
• Correction of long-pending inverted duty structure for the manmade textile sector by reducing GST rate on manmade fibre from 18% to 5% and manmade yarn from 12% to 5%
• Correction of inverted duty structure in fertilizer sector by reducing GST from 18% to 5% on Sulphuric acid, Nitric acid and Ammonia
• Reduction of GST from 12% to 5% on renewable energy devices and parts for their manufacture
• Reduction of GST from 12% to 5% on “Hotel Accommodation” services having value less than or equal to Rs. 7,500 per unit per day or equivalent
• Reduction of GST from 18% to 5% on beauty and physical well-being services used by common man including services of gyms, salons, barbers, yoga centres, etc
All residents of Andaman & Nicobar Islands are hereby informed that the above mentioned changes shall come into effect from 22nd September, 2025 onwards and all businesses have to mandatorily adhere to these rates from 22nd September,2025 onwards.
If any resident/business wants to lodge a grievance with respect to non-compliance or any clarification relating to GST rates or its implementation in the Union Territory of Andaman & Nicobar Islands, they may do so by informing on the whatsapp number 9595359698.
