Summary of CGST rate Notification issued post 56th Council Meeting

Central Government, acting under CGST Act provisions, superseded the 2017 rate notification and notified revised Central GST rates effective 22 September 2025: 2.5%, 9%, 20%, 1.5%, 0.125%, 0.75% and 14% applied respectively to goods listed in Schedules I-VII appended to the notification. The schedules enumerate tariff headings and specific goods (including extensive food items, medicines, fertilizers, industrial inputs, vehicles, luxury goods, precious metals, gems and tobacco products) and include interpretive rules, definitions and special explanations; the notification takes effect from the stated date.

The notification exempts specified intra-State supplies of goods from the entire central tax charged under section 9 of the Central GST Act, superseding an earlier 2017 notification and effective 22 September 2025. A detailed Schedule lists tariff chapters, headings and specific products (agricultural produce, food items, live animals, medicines in Annexure I, indigenous musical instruments in Annexure II, utilities like electrical energy, and numerous other specified goods) that are fully exempt from central tax when supplied within a State, subject to definitions and exclusions (e.g., pre-packaged and labelled items) set out in the notification.

The central authority amends a prior tax-rate notification to substitute the entry under column (4) against serial number 1 with “9%”, thereby altering the concessional CGST rate applicable to specified supplies related to petroleum operations or coal bed methane operations; the amendment takes effect on 22 September 2025 and modifies the earlier notification dated 28 June 2017 as last amended in 2022.

The Central Government amends Notification No. 8/2018-Central Tax (Rate) by replacing the reference to “Schedule IV of Notification No. 1/2017 -Central Tax (Rate)” with “Schedule II or Schedule III of Notification No. 9/2025 – Central Tax (Rate),” thereby altering the schedule applicable to concessional CGST rates (notably for old and used vehicles) as recommended by the Council under section 11(1) of the CGST Act, 2017. The amendment takes effect on 22 September 2025.

Amendment to the existing CGST rate notification replaces the previous table to prescribe concessional Central GST rates on specified handicraft goods, mostly at 2.5% and selected items (silver filigree work and handmade imitation jewellery) at 1.5%, listing detailed tariff headings and descriptions for candles, bags, wood and stone art, handmade paper, textiles, metalware, lamps, toys, paintings, sculptures and related articles. The change is made under section 11(1) of the CGST Act and takes effect on 22 September 2025.

A notification issued under sections 9(1) and 15(5) of the Central Goods and Services Tax Act, 2017 prescribes a 6% central GST rate on specified construction materials, including fly ash bricks/  aggregates/ blocks, bricks of fossil meals or similar siliceous earths (6901 00 10), building bricks (6904 10 00) and earthen or roofing tiles (6905 10 00). The notification adopts Customs Tariff interpretation rules and relevant GST Act definitions, and takes effect on 22 September 2025.

Notification amends Notification  11/2017 to implement 56th GST Council Proposals, effective 22 September 2025 (many entries) and 1 April 2025 (certain explanatory clauses). It revises CGST rates across service headings-notably changes to 9%, 2.5% and 20% slabs for transport (including multimodal and container rail), delivery/ postal/ courier, job work/ manufacturing services, renting of goods carriage, beauty and tailoring services, and select professional/ technical services-and adds or modifies input tax credit restrictions and illustrative clarifications. Several definitions (goods transport agency, multimodal transporter, recognised sporting event, handicraft goods, mode of transport, premises) are inserted or amended.

The central tax authority amends Notification No.12/2017 (CGST Rate) to (1) exclude local delivery services provided by or through electronic commerce operators from an entry at serial 18; (2) insert serials 36C-36E exempting from tax life and health insurance services supplied to insureds who are individuals or individual-plus-family, and reinsurance of those services; (3) redefine “goods transport agency” to exclude electronic commerce operators providing local delivery; (4) add definitions of “group” (excluding groups formed merely to avail insurance) and “health insurance business.” The amendments take effect 22 September 2025.

The central tax authority amends the earlier rate notification to add that services by way of local delivery supplied through an electronic commerce operator (ECO) will have tax on intra-State supplies paid by the ECO, except where the person supplying such services via the ECO is required to register under section 22(1) of the CGST Act. The amendment is made under section 9(5) of the CGST Act and takes effect from 22 September 2025. The notifying officer’s individual name has been omitted.

Corrigendum to Notification No. 9/2025 – Central Tax (Rate), dated 17 September 2025, published as G.S.R. 641(E), rectifies typographical errors in the published Gazette: on page 88, lines 9-16 the enumerated letters are amended so that “b.” becomes “a.”, “c.” becomes “b.”, “d.” becomes “c.”, “e.” becomes “d.”, “f.” becomes “e.”, “g.” becomes “f.”, “h.” becomes “g.” and “i.” becomes “h.”