56th GST Council Recommendations Implemented: CBIC Issues GST Exemption Notification for Essential Goods w.e.f. September 22, 2025

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 10/2025-Central Tax (Rate) dated September 17, 2025, acting on the recommendations of the 56th GST Council Meeting held on 3rd September 2025 under the chairpersonship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman in New Delhi. As you mentioned, this notification supersedes the earlier Notification No. 02/2017-Central Tax (Rate) dated June 28, 2017, while preserving actions taken under it before this update.

Key Highlights of the Notification

• The notification fully exempts intra-State supply of specified goods from Central GST under Section 9 of the CGST Act, 2017.
• A comprehensive list of exempted goods has been appended in a detailed Schedule.

Goods Exempted

The exemption covers a wide range of goods essential to agriculture, food supply, health, and daily life. Notable categories include:

1. Agricultural and Food Products:
   • Live animals (asses, mules, bovines, swine, poultry, goats, sheep, etc.)
   • Fresh, chilled, or unprocessed meats, fish, and eggs
   • Fresh fruits, vegetables, cereals, pulses, rice, wheat, maize (excluding pre-packaged and labelled)
   • Milk, curd, paneer, honey, jaggery, khandsari sugar, rab (other than pre-packaged and labelled)
   • Puffed rice, papad, khakhra, roti, chapati, paratha, and other Indian breads
2. Seeds & Natural Inputs:
   • Seeds of cereals, pulses, oilseeds, and plants used for sowing
   • Organic manure, de-oiled cakes, aquatic/poultry/cattle feeds
3. Healthcare & Essential Drugs:
   • Human blood and its components
   • All types of contraceptives
   • Specified life-saving drugs (Annexure I includes gene therapy drugs, oncology biologics, rare-disease treatments, etc.)
4. Cultural, Educational & Social Goods:
   • Printed books, newspapers, Braille books, children’s colouring books
   • Religious prasadam, clay lamps, idols, khadi fabrics, Gandhi Topi
   • Indian National Flag
5. Daily-use & Traditional Items:
   • Kajal (except pencil sticks), kumkum, bindi, alta, sindoor
   • Plastic, glass, lac bangles
   • Salt, potable water (non-packaged), firewood, charcoal
   • Agricultural hand tools and implements

Special Inclusions

• Annexure I: Lists exempted critical drugs/medicines, such as gene therapies, monoclonal antibodies, enzyme replacement therapies, and oncology treatments.
• Annexure II: Lists traditional musical instruments exempt from GST.
• Certain exemptions also apply to government-supplied goods under grant/subsidy arrangements, public auction of gifts received by dignitaries, and lottery supplies under specific conditions.

Effective Date

The notification will be effective from 22nd September 2025.

This measure underscores the Government’s commitment to ease of living, ensuring that essential goods of agricultural, healthcare, cultural and daily use importance remain tax-free under GST, benefiting households, farmers, students, and vulnerable sections of society.

Note: Similar notification has been brought under the UTGST Act, 2017 vide No. 10/2025-Union Territory Tax (Rate) dated September 17, 2025 and under the IGST Act, 2017 vide No. 10/2025-Integrated Tax (Rate) dated September 17, 2025.

The Complete Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/Notification-Number-10-of-2025-GST-CT-IT-UT.pdf