GST Rate Notifications for Implementing Recommendations of GST Council
by Reina Legal | Sep 19, 2025
Pursuant to the 56th GST Council meeting held on 03 September 2025, the Ministry of Finance (Department of Revenue) has issued a series of rate Notifications to give effect to the Council’s recommendations. These Notifications cover key changes including GST rate rationalization, revisions in tax rates for various goods and services with effect from 22 September 2025. The key changes are summarized below:
| Notification No. |
Key Changes |
| Notification No. 9/2025-Central Tax (Rate) |
- Introduced a restructured GST rate framework for intra-state supply of goods and incorporate a new set of updated rate schedules of 2.5%, 9%, 20%, 1.5%, 0.125%, 0.75% and 14% under CGST
|
| Notification No. 10/2025-Central Tax (Rate) |
- Provided a revised list of specified goods for full GST exemption
|
| Notification No. 11/2025-Central Tax (Rate) |
- Earlier Notification provided a concessional GST rate of 6% CGST (12% total GST) on goods used in petroleum operations and coal bed methane projects, subject to strict certification and conditions
- These goods will now attract standard GST rate of 18%, replacing the earlier concessional rate of 12%
|
| Notification No. 12/2025-Central Tax (Rate) |
- There is no change in the GST rate previously applicable on supply of old and used vehicles, other than some changes in references to the Schedule
|
| Notification No. 13/2025-Central Tax (Rate) |
- 39 items/ categories of handicrafts and artisanal products with updated concessional GST rates
- Majority of goods attract a concessional rate of 2.5% CGST and selected items like silver filigree work and handmade imitation jewellery attract a lower rate of 1.5% CGST
|
| Notification No. 14/2025-Central Tax (Rate) |
- A concessional rate of 6% CGST (12% total GST) for certain specified building material (i.e., bricks and tiles) as per the Schedule
|
| Notification No. 15/2025-Central Tax (Rate) |
- The definition of ‘Goods Transport Agency’ has been amended to exclude Electronic Commerce Operators (ECOs) that either provide or facilitate local delivery services
- New definitions have been added for terms such as ‘recognised sporting event’, ‘handicraft goods’, ‘mode of transport’, and ‘multimodal transporter’ to provide more clarity
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| Notification No. 16/2025-Central Tax (Rate) |
- An explanation has been inserted to clarify that the GST exemption for transportation of goods does not apply to local delivery services when such services are provided by or through an ECO
- New entries introduced to cover all individual health and life insurance, along with their related reinsurance for GST exemption
- New definitions have been added to clarify the meaning of ‘health insurance business’ and ‘group’, to provide more clarity
|
| Notification No. 02/2025-Compensation Cess (Rate) |
- Eliminated GST Compensation Cess on 19 major product categories including automobiles, beverages, coal, and luxury items.
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Click to download a copy of the Notification
