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 GST Council inter-alia made recommendations relating to changes in GST tax rates, providing relief to individuals, the common man, the aspirational middle class, and measures for facilitation of trade in GST. The Council further recommended that the revised GST rates on services will be implemented with effect from 22nd September 2025.
In line with these recommendations, the Ministry of Finance has issued Notification No. 9/2025 – Integrated Tax (Rate) dated September 17, 2025, superseding the earlier 2017.
The notification reorganizes GST rates across seven schedules, clearly defining goods covered under each slab.
Revised IGST Rate Structure & Number of Goods:
- 5% (Schedule I): 516 goods – covering essential food products (milk, cereals, pulses, jaggery, edible oils), healthcare items (medicines, insulin, oxygen, diagnostic kits), renewable energy devices, fertilizers, and eco-friendly products.
- 18% (Schedule II): 640 goods – the broad standard rate, applicable to a wide range of processed goods, lifestyle items, industrial inputs, and household products.
- 40% (Schedule III): 13 goods – covering specific demerit goods.
- 3% (Schedule IV): 15 goods – largely precious metals.
- 0.25% (Schedule V): 3 goods – rough precious and semi-precious stones.
- 1.5% (Schedule VI): 2 goods – diamonds and related items.
- 28% (Schedule VII): 6 goods – luxury and sin items such as automobiles, tobacco, and aerated drinks.
Explanation under the Notification:
For the purposes of this notification:
- “Unit container” means a package (tin, can, jar, bag, carton, drum, etc.) designed to hold a pre-determined quantity or number, which is indicated on such package.
- “Pre-packaged and labelled” means commodities for retail sale (not more than 25 kg or 25 litre) that are pre-packed as defined in Section 2(l) of the Legal Metrology Act, 2009, and required to bear statutory declarations.
- “Tariff item”, “sub-heading”, “heading” and “Chapter” shall have the same meaning as defined in the First Schedule to the Customs Tariff Act, 1975.
- The interpretation rules of the Customs Tariff Act, 1975, including Section/Chapter Notes and General Explanatory Notes, shall apply to this notification.
- Words and expressions not defined in this notification but defined in the CGST Act, IGST Act, or UTGST Act shall carry the same meanings as in those Acts.
Effective Date:
This notification shall come into force with effect from 22nd September 2025.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/N.-No.-9-2025-Integrated-Tax-Rate.pdf
