The Ministry of Finance has issued Notification No. 09/2025 – Central Tax (Rate), dated 17th September, 2025, revising GST rates on specified goods under the Customs Tariff Act, 1975. This update comes into effect from 22nd September, 2025 and replaces the earlier notification issued in 2017.
Key Highlights
1. New GST Rate Structure
The notification prescribes the following rate slabs for different categories of goods:
- Schedule I – 2.5%
- Schedule II – 9%
- Schedule III – 20%
- Schedule IV – 1.5%
- Schedule V – 0.125%
- Schedule VI – 0.75%
- Schedule VII – 14%
2. Coverage of Goods
The schedules cover a wide range of goods including:
- Food items, dairy, cereals, dry fruits
- Agricultural produce and natural products
- Processed foods, beverages, and packaged goods
- Minerals, petroleum products, and chemicals
- Medicinal and pharmaceutical goods
3. Superseding Previous Notification
This new framework supersedes Notification No. 01/2017–Central Tax (Rate), ensuring that tax applicability is updated to reflect current economic needs and GST Council recommendations.
4. Effective Date
The revised GST rates will be applicable from 22nd September, 2025.
Detailed notification can be accessed through the following link:
https://taxinformation.cbic.gov.in/content-page/explore-notification
Impact on Business:
- Businesses & Manufacturers must review their product classification and update billing systems.
- Retailers & Traders need to ensure compliance with revised rates before the effective date.
- Consumers may witness price rationalization on essentials while luxury or non-essential items may fall under higher tax brackets.
The revised GST rate notification is a significant move towards rate rationalization and compliance simplification. Businesses are advised to carefully study the applicable schedules, adjust pricing mechanisms, and remain compliant with the updated framework.
DISCLAIMER: The information contained herein is in summary form and is prepared based on the provisions of GST and allied laws and related Rules, Circulars, Notifications, Judgments/Orders, Press Releases, Trade Notices etc. therein. For details, please refer the relevant provisions. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Readers should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.
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