The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 9/2025-Central Tax (Rate), dated September 17, 2025, on the recommendations of the 56th GST Council meeting chaired by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 3rd September 2025 in New Delhi.
The notification supersedes the earlier No. 01/2017-Central Tax (Rate) and prescribes a revised GST rate structure on a wide range of goods, effective 22nd September 2025. The new structure aims to provide relief to individuals, the aspirational middle class, and businesses while facilitating trade under GST.
Key GST Rate Notifications
- 2.5% GST on essential goods under Schedule I, including milk products, honey, cereals, pulses, jaggery, edible oils, dried fruits, affordable footwear and apparel, medicines, diagnostic kits, fertilizers, agarbatti, soaps, utensils, and agricultural machinery.
- 9% GST on goods notified under Schedule II, covering processed foods, household products, and industrial inputs.
- 20% GST on luxury and sin goods listed in Schedule III.
- 1.5% GST under Schedule IV, providing relief on selected essentials.
- 0.125% GST under Schedule V for specified precious goods.
- 0.75% GST under Schedule VI for special category goods.
- 14% GST on items under Schedule VII, including certain higher-taxed categories.
Important Clarifications under the Notification
- “Unit container” means a package (tin, can, box, jar, bottle, bag, carton, drum, barrel, etc.) designed to hold a pre-determined quantity or number, which is indicated on the package.
- “Pre-packaged and labelled” refers to commodities meant for retail sale, not exceeding 25 kg or 25 litres, and required to carry declarations under the Legal Metrology Act, 2009 and rules made thereunder.
- Terms such as tariff item, sub-heading, heading, and chapter will bear the same meaning as in the Customs Tariff Act, 1975.
- The interpretative rules of the Customs Tariff Act, 1975, and definitions from the CGST Act, IGST Act, and UTGST Act, 2017 shall apply to this notification.
This comprehensive revision of GST rates marks a major step towards simplification, affordability, and ease of compliance, directly benefitting households, farmers, small businesses, and the middle class.
Effective Date: The revised rates come into force from 22nd September 2025.
Note: Similar notification has been brought under the UTGST Act, 2017 vide No. 09/2025-Union Territory Tax (Rate) dated September 17, 2025 and under the IGST Act, 2017 vide No. 09/2025-Integrated Tax (Rate) dated September 17, 2025.
The Complete Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/CBIC-N-No.-9-2025-Central-Tax-Rate.pdf
