CBIC issues GST Rate Notification: New GST Rates Effective from 22 September 2025 [Read Notification]

The CentralBoard of Indirect Taxes and Customs (CBIC) has notified the revised Goods andServices Tax (GST) rates through Notification No. 9/2025-Central Tax (Rate) dated 17 September 2025. The new rates will come into force from 22 September 2025 and will apply on interstate supplies of goods as specified under different schedules annexed to the notification.

This notification supersedes the earlier master rate notification issued in 2017 and streamlines GST rates into seven distinct schedules. The classification of goods under these schedules is based on Harmonised System of Nomenclature (HSN) codes and tariff items.

New GST Rates under Notification No. 9/2025:

2.5% GST (Schedule I): Applicable on essential items such as live horses, pre-packaged frozen or chilled meats, milk and cream, yoghurt, buttermilk, paneer (cheese), natural honey, eggs, cereals like rice, wheat, pulses (when pre-packaged and labelled), edible oils, sugar, jaggery, cocoa beans, coffee, tea, and bakery mixes.

9% GST (Schedule II): Covers a wide range of processed goods, industrial inputs, and consumer products. The list is extensive and applies to items classified under specific HSN chapters.

20% GST (Schedule III): Targets products considered as luxury or demerit goods, including aerated waters, carbonated beverages with added sugar, and similar sweetened drinks.

1.5% GST (Schedule IV): Applies to selected goods notified separately, largely agricultural and semi-processed items.

0.125% GST (Schedule V): Imposed on certain categories of precious metals and related goods.

0.75% GST (Schedule VI): Applies to specified items under the annexure.

14% GST (Schedule VII): Covers special category goods notified as high-revenue items.

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The restructuring is an attempt to rationalize tax slabs, reduce disputes arising from classification, and ensure uniformity in GST levy across essential, standard, and luxury items. Businesses dealing in goods covered under these schedules will need to update their tax compliance systems, including invoicing and GST returns, in line with the revised rates before the effective date.

The revision provides clarity and brings several food items, edible oils, and daily consumables into lower tax brackets, while beverages and luxury goods face higher tax incidence.

The revised GST rates shall be applicable from 22 September 2025, giving businesses a short window to align their operations and accounting practices with the new structure.

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