The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The Council, inter-alia, made recommendations relating to changes in GST tax rates, providing relief to individuals, the aspirational middle class, and measures for facilitation of trade in GST. The recommendations on GST rates for services will also be implemented with effect from 22nd September 2025.
Following these recommendations, the Ministry of Finance (Department of Revenue) has issued Notification No. 9/2025-Union Territory Tax (Rate) dated 17th September 2025, notifying revised GST rates applicable to goods from 22nd September 2025.
Key Highlights of the Notification:
- The notification supersedes the earlier 01/2017-Union Territory Tax (Rate) dated 28th June 2017.
- Different categories of goods have been classified under seven Schedules with specific GST rates.
Number of Goods under Each GST Rate Slab:
- 2.5% (Schedule I): 516 goods
- 9% (Schedule II): 640 goods
- 20% (Schedule III): 13 goods
- 1.5% (Schedule IV): 15 goods
- 0.125% (Schedule V): 3 goods
- 0.75% (Schedule VI): 2 goods
- 14% (Schedule VII): 6 goods
Explanation (as per Notification):
For the purposes of this notification:
- “Unit container” means a package, whether large or small (e.g., tin, can, box, jar, bottle, bag, carton, drum, barrel, or canister) designed to hold a pre-determined quantity or number, which is indicated on such package.
- “Pre-packaged and labelled” means all commodities intended for retail sale and containing not more than 25 kg or 25 litre, which are “pre-packed” as defined under the Legal Metrology Act, 2009 (1 of 2010), where such packages or labels are required to bear declarations as per the Act and rules made thereunder.
- The terms “tariff item”, “sub-heading”, “heading” and “Chapter” shall have the meaning assigned in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
- The rules of interpretation of the Customs Tariff Act, 1975 (including Section Notes, Chapter Notes and General Explanatory Notes) will apply for interpreting this notification.
- Any words and expressions not defined in this notification but defined in the CGST Act, 2017, IGST Act, 2017 or UTGST Act, 2017 shall carry the same meaning as in those Acts.
Applicability:
This notification shall come into force with effect from 22nd September, 2025.
These revised GST rates mark a significant rationalisation of the tax structure, with focus on equity, simplification, and ease of compliance for businesses. The restructuring also aims to bring relief to the common man while ensuring better revenue realisation for the government.
The Complete Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/N-No.-9-2025-Union-Territory-Tax-Rate.pdf
