Seeks to amend Notification No. 8/2018- Central Tax (Rate) dated 25.01.2018 – CBEC notifies Changes in Rate of CGST on Motor Vehicle
Ministry of Finance has issued Notification No. 12/2025-Central Tax (Rate) dated 17 September 2025, amending Notification No. 8/2018-Central Tax (Rate) relating to the GST rate on motor vehicles. The amendment substitutes references earlier made to “Schedule IV of Notification No. 1/2017-Central Tax (Rate)” with the updated “Schedule II or Schedule III of Notification No. 9/2025-Central Tax (Rate).”
This change effectively aligns the applicable GST rate for specified motor vehicles with the revised schedules under Notification No. 9/2025. Under the new framework, certain categories of motor vehicles now fall under Schedule II, attracting CGST at 9% (total 18% GST), while others are placed under Schedule III, attracting CGST at 20% (total 40% GST).
The revised structure will come into effect from 22 September 2025. The notification aims to rationalise GST classifications for motor vehicles by linking them to the updated schedules notified in 2025, ensuring uniformity and clarity in applicable rates.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 12/2025-Central Tax (Rate) | Dated: 17th September, 2025
G.S.R. 650(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2018-Central Tax (Rate), dated the 25th January, 2018, published in the Gazette of India, Extraordinary, Part II, section 3,sub-section (i) vide number G.S.R. 82(E), dated the 25th January, 2018, namely:-
In the said notification, for the words, brackets, and figures “Schedule IV of Notification No. 1/2017 -Central Tax (Rate)”, the following shall be substituted, namely:- “Schedule II or Schedule III of Notification No. 9/2025 – Central Tax (Rate)”.
2. This notification shall come into force on the 22nd day of September, 2025.
[F. No. CBIC-190341/188/2025-TRU]
(Dheeraj Sharma)
Under Secretary to the Government of India
Note: The principal notification No. 8/2018-Central Tax (Rate), dated the 25th January, 2018, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 82(E), dated the 25th January, 2018 and last amended vide Notification No. 04/2025-Central Tax (Rate), dated the 16th January, 2025, vide G.S.R. 59(E), dated the 16th January, 2025.
