Taxmann's Analysis | 56th GST Council Meeting – Detailed Analysis of Major GST Reforms [Sept. 2025]
Introduction
The GST Council’s recent proposals in the meeting dated 03-09-2025 underline the Government’s commitment to building a simpler, transparent, and growthoriented tax framework.
The reduction in GST rates on cement, pharmaceuticals, and other essential sectors is expected to ease costs for businesses and consumers alike. Lower cement rates will directly benefit infrastructure and housing, while reduced pharmaceutical rates will improve healthcare affordability and accessibility. Together, these measures are set to stimulate demand and provide a broader push to economic activity. The amendments to the place of supply rules for intermediaries and the revised framework for tax adjustments on discounts address long-standing interpretational disputes. By clarifying these provisions, the reforms are expected to significantly reduce litigation, ease compliance, and create a more predictable tax environment for businesses.
Institutional reforms have also been prioritised. The Goods and Services Tax Appellate Tribunal (GSTAT) will start accepting appeals by September and begin hearings by December this year. With the Council setting 30-06-2026 as the deadline for filing backlog appeals, a time-bound resolution framework is being established.
Complementing these reforms, the proposed service tax exemption for individual health insurance, along with reinsurance thereof, reflects the Government’s intent to make insurance more affordable, expand coverage, and strengthen social security and healthcare systems.
Together, these initiatives mark a comprehensive reform package reducing costs, providing legal clarity, and strengthening institutional mechanisms. By balancing economic stimulus with compliance ease, the reforms reinforce GST’s role as a cornerstone of India’s growth and ease of doing business.
1. Recommended to Omit the Specific Provision
Under Section 13(8)(b) of the IGST Act with Respect to Determination of Place of Supply of Intermediary Services
It is recommended to omit the specific provision of place of supply for intermediary services under Section 13(8)(b) of the Integrated Goods and Services Tax Act, 2017 (‘IGST Act’). Once omitted, the place of supply of intermediary services will be determined as per the default provision in Section 13(2) of the IGST Act, i.e., the location of the recipient of services.
Taxmann’s Comments
Determination of the place of supply is fundamental under GST, as it decides whether a supply is intra-State or inter-State, and in turn whether the Central Goods and Services Tax Act, 2017 (‘CGST’) and the State Goods and Services Tax Act, 2017 (‘SGST’)/ Union Territory Goods and Services Tax Act, 2017 (‘UTGST’) or IGST is levied.
Section 13(8) (b) of the IGST Act provides that for intermediary services, the place of supply is deemed to be the location of the supplier. This rule has significant implications in cross-border transactions where either the supplier or the recipient is outside India.
Intermediary Services and Export of Services
A key requirement for any service to qualify as an export of services is that the place of supply must be outside India. However, since intermediary services are deemed to be supplied at the location of the supplier, services provided by an intermediary in India are regarded as domestic supplies even when rendered to a foreign client. Consequently:
• Such services do not qualify as exports;
• They are not treated as zero-rated supplies;
• GST is levied in India, and export-linked incentives are denied; and
• The tax charged by the intermediary becomes a cost in the hands of the foreign recipient, as they cannot claim input tax credits, thereby making exports more expensive.
Litigation and Judicial View
Under the current provisions, supply of intermediary services by an Indian supplier to a customer located outside India is deemed an intra-State supply and made liable to CGST and SGST/UTGST.
This position was challenged, and the Bombay High Court1 upheld the constitutional validity of Section 13(8)(b), which mentioned that said provision should be confined to the IGST Act only, and tax under the CGST Act and SGST Act (MGST Act) cannot be levied on the said transaction.
Proposed Amendment
To address these challenges, the GST council, in its 56th meeting, has proposed that the place of supply for intermediary services should shift from the location of the supplier to the location of the recipient of services. Such a change would:
• Remove the anomaly that denies export benefits to Indian intermediaries,
• Prevent the cascading cost of GST on foreign service recipients,
• Put an end to prolonged litigation surrounding the taxability of intermediary services, and
• Ensure a level playing field for Indian service providers
At the same time, this change would also ensure that where the intermediary is located outside India and the service recipient is in India, the transaction would be liable to GST under the reverse charge mechanism (RCM), thereby safeguarding India’s revenue interest.
2. Recommended to Amend Section 15 and Section 34 of the CGST Act in Respect of Post-Sale Discount
• It is recommended to amend Sections 15 and 34 of the CGST Act with respect to post-sale discounts.
• It is proposed that section 15(3)(b)(i) of the CGST Act may be omitted, thereby removing the requirement that post-supply discounts must be established under an agreement made before or at the time of supply and specifically linked to relevant invoices. Corresponding amendments have been proposed in Section 34 to ensure that when such a credit note reduces the value of supply, the recipient will be required to reverse the related input tax credit (‘ITC’).
• It is also recommended to rescind Circular No. 212/6/2024–GST, dated 26-06-2024, which laid down a mechanism for ensuring compliance with the conditions under Section 15(3)(b)(ii).
• Further, the Council has recommended issuing a clarification on the treatment of post-sale discounts, including:
o Non-reversal of ITC in cases where discounts are given through financial/ commercial credit notes,
1 Dharmendra M. Jani v. Union of India [2023] 151 taxmann.com 91 (Bombay)
o Whether post-sale discounts provided by manufacturers to dealers constitute additional consideration in the transaction between dealers and end-customers, and
o Whether post-sale discounts should be treated as consideration for promotional activities undertaken by dealers.
Taxmann’s Comments
Under Section 15(3) of the CGST Act, discounts may be excluded from the value of supply if:
• They are given before or at the time of supply and recorded in the invoice, or
• They are given after the supply, provided:
o Such discounts were agreed at or before the time of supply and linked to specific invoices, and
o The recipient reverses the ITC attributable to the discount.
The requirement that post-supply discounts to be pre-agreed ‘at or before’ supply and linked to invoices has led to disputes due to strict interpretation by tax authorities. The proposed omission of Section 15(3)(b)(i) is intended to reduce such litigation.
Section 34(1) currently does not explicitly permit the issuance of credit notes for post-supply discounts not contemplated at the time of supply. To fill this gap, CBIC had issued Circular No. 212/6/2024–GST, requiring suppliers to obtain certificates from recipients confirming ITC reversal. However, this was only a stopgap measure pending system changes.
The Council’s recommendation to amend Section 15(3) (b) and Section 34 will provide a clear legal basis for using credit notes to account for post-supply discounts and ensure ITC reversal by recipients.
Nonetheless, in practice, suppliers may still face challenges in verifying whether recipients have actually reversed ITC or not.
The Council also proposes fresh clarifications on contentious issues such as treatment of commercial credit notes, dealer incentives, and promotional discounts.
It is noteworthy that earlier CBIC attempts to clarify similar matters, through Circular No. 105/24/2019–GST, dated 28-06-2019, had to be withdrawn ab initio by Circular No. 112/31/2019–GST, dated 03-10-2019, following stakeholder concerns. The renewed attempt may once again invite interpretational disputes.
The proposed amendments aim to simplify the legal framework on post-sale discounts by aligning the treatment of discounts with credit note provisions, ensuring ITC reversals, and reducing litigation. However, the forthcoming clarifications will need to be carefully drafted to avoid repeating past interpretational challenges.
3. Recommendation for Sanction of RiskBased Provisional Refund on Account of Zero-Rated Supplies
• It is proposed to amend Rule 91(2) of the CGST Rules to allow sanction of 90% of the refund claimed as provisional refund based on system-driven risk evaluation for zero-rated supplies (exports of goods or services, or supplies to SEZ units/ developers for authorised operations).
• In cases flagged as high risk, the proper officer may, after recording reasons in writing, withhold provisional sanction and undertake detailed scrutiny of the refund application.
• A notification will also be issued specifying certain categories of taxpayers who will not be eligible for a provisional refund. The revised framework will take effect from 1st November, 2025.
Taxmann’s Comments
Section 54(6) of the CGST Act and Rule 91 already allow 90% of refund sanction on zero-rated supplies (through Form RFD-04/Form RFD-05), subject to certain conditions. The amendment proposes to strengthen this by introducing a system-based risk assessment, reducing subjectivity and human intervention. In cases identified as high risk, officers will be required to record written reasons when withholding provisional refunds. This ensures accountability and protects taxpayers from arbitrary decisions.
Faster refund processing will ease working capital pressures on exporters and SEZ suppliers. It will improve their global competitiveness and bring India’s refund mechanism closer to international best practices.
4. Recommendation for Risk-Based Provisional Refunds Arising Out of Inverted Duty Structure (IDS)
• It is proposed to amend Section 54(6) of the CGST Act to allow provisional sanction of 90% of refund claims arising out of an inverted duty structure (‘IDS’), similar to the mechanism currently applicable for refunds on zero-rated supplies.
• Pending this legislative amendment, CBIC will issue instructions directing field formations to grant 90% of the claimed refund provisionally, based on systemdriven risk evaluation, as proposed in the case of zero-rated supply refunds.
• The revised framework will take effect from 01-11-2025.
Taxmann’s Comments
Section 54(3) of the CGST Act, read with Rule 89(5) of the CGST Rules, permits refund of unutilised input tax credit (ITC) arising from an IDS, though restricted only to ITC on inputs. This position has been upheld by the Supreme Court. Currently, such refunds are sanctioned only after a detailed scrutiny, which often results in delays and refund pendency.
Extending the provisional refund mechanism under Section 54(6) to IDS cases marks a significant policy shift, placing IDS refunds at par with refunds on zerorated supplies.
This will enable 90% of the refund to be released upfront on a provisional basis, subject to automated risk-based checks, thereby easing the burden on taxpayers while protecting revenue interests.
The proposal does not alter refund eligibility criteria. As per law, ITC on input services will continue to remain excluded from IDS refunds.
CBIC’s plan to issue interim instructions even before statutory changes come into effect will ensure immediate relief to taxpayers by operationalising provisional refunds without delay.
The proposal to extend provisional refunds to IDS cases is a welcome step that strikes a balance between taxpayer facilitation and revenue safeguards through risk-based evaluation. It has the potential to reduce refund pendency, improve liquidity for businesses, and align refund administration with the government’s broader policy of simplifying GST compliance and ease of doing business.
5. Recommendation to Amend the CGST Act for GST Refunds on Low-Value Export Consignments
It is proposed to amend Section 54(14) of the CGST Act, 2017, to remove the existing threshold limit for refunds on exports made with payment of tax. This measure will particularly benefit small exporters, including those exporting through courier or postal modes.
Taxmann’s Comments
Under the current GST framework, Section 54(14) of the CGST Act restricts refunds if the claim amount is less than ₹1,000 per tax head. This statutory threshold has posed significant challenges for micro and small exporters, especially in the e-commerce sector and in postal/courier-based exports, where many consignments are of low value and consequently become ineligible for refunds.
The removal of this threshold will ensure that every genuine refund claim is admissible, irrespective of value, thereby unlocking a large number of pending refund claims tied to small-value shipping bills.
This reform will also align India’s GST framework with international best practices, which generally do not impose minimum thresholds for export-related refunds. In doing so, it will enhance the ease of doing business and foster growth in the cross-border e-commerce segment.
6. Recommendation to Introduce a Simplified GST Registration Scheme for
Small and Low-Risk Taxpayers
It is recommended to introduce an optional simplified GST registration scheme designed specifically for small and low-risk taxpayers.
Taxmann’s Comments
The proposed scheme seeks to reduce compliance complexity and provide a faster, more efficient registration process for small and low-risk taxpayers. The proposed scheme shall be operational from 01-11-2025.
Eligible applicants will receive automatic GST registration within three working days of submitting their application, significantly shortening the current approval timelines.
The scheme will apply to taxpayers:
• Classified as low-risk based on system evaluation, and
• Whose self-assessed monthly output tax liability on supplies to registered persons does not exceed ₹2.5 lakh (inclusive of CGST, SGST/UTGST, and IGST).
Participation in the scheme will be voluntary, allowing taxpayers to opt in or out as per their preference.
Under the current GST framework, registration approval requires manual verification by officers, including document scrutiny and, in some cases, physical site visits. This often causes delays, compliance burden, and uncertainty for small taxpayers, discouraging timely entry into the GST system.
The proposed scheme is expected to benefit nearly 96% of new GST applicants, offering quicker market entry and reduced compliance hurdles.
By automating registration for low-risk taxpayers, the scheme will also optimise administrative resources, enabling officers to focus on high-risk cases.
This initiative represents a significant step towards improving the ease of doing business under GST. By combining voluntary participation, automated approvals, and risk-based evaluation, it will streamline registration for small taxpayers while ensuring revenue protection through continued monitoring of higher-risk cases.
7. Recommendation to Introduce Simplified GST
Registration Mechanism for Small
Suppliers
It is recommended to introduce a simplified GST registration mechanism for small suppliers making supplies through E-commerce Operators (‘ECOs’) across multiple states, as such suppliers currently face significant challenges in maintaining a Principal Place of Business (‘PPoB’) in every state.
Taxmann’s Comments
E-commerce sector is on a growth trajectory and has a cascading effect on all sectors of the economy with the potential to reshape the Indian economy as we move forward into the next decade.
Under the current GST framework, any supplier selling goods through an ECO is mandatorily required to obtain GST registration, regardless of turnover.
By contrast, suppliers operating offline enjoy exemption thresholds of ₹40 lakhs (for goods) and ₹20 lakhs (for services). This disparity places e-commerce sellers at a disadvantage, as they lose the benefit of exemption upon making their first online supply.
The requirement to obtain registration and maintain a physical PPoB in each state of operation imposes:
• Substantial rental and infrastructure costs,
• Increased compliance obligations (return filing, record keeping, assessments, audits), and
• Reduced margins, which disproportionately impact small and medium enterprises.
Introducing a simplified GST registration framework for small suppliers selling through ECOs would address current compliance challenges, lower operational costs, and promote broader adoption of e-commerce. This reform would enhance the competitiveness of small businesses while supporting the growth and formalisation of India’s digital marketplace.
8. Other Recommendations
• It is proposed to insert an explanation under the definition of ‘specified premises’ for determining the taxability of restaurant services. This clarification will ensure that a stand-alone restaurant cannot classify itself as a ‘specified premises’ and, consequently, will not be eligible to pay GST at 18% with ITC.
• The Goods and Services Tax Appellate Tribunal (‘GSTAT’) will be made operational for accepting appeals by the end of September and is expected to commence hearings by the end of December this year. The Council has further recommended 30.06.2026 as the cut-off date for filing backlog appeals. The Principal Bench of the GSTAT will also function as the National Appellate Authority for Advance Ruling (‘NAAAR’).
• It is proposed to grant an ad hoc exemption from IGST and Compensation Cess on the import of a new armoured sedan car by the President’s Secretariat for the official use of the President of India.
• Amendments to the GST valuation rules are recommended to align them with the revised tax rate applicable to lottery tickets.
• It is recommended to introduce retail sale price (RSP) based valuation under GST for Pan Masala, Cigarettes, Gutkha, Chewing Tobacco, Zarda, Scented Tobacco, and Unmanufactured Tobacco. Accordingly, necessary amendments will be made to the CGST Rules, 2017 and relevant notifications.
• The revised GST rates on services and goods (other than Pan Masala, Gutkha, Cigarettes, Chewing Tobacco products such as Zarda, Unmanufactured Tobacco, and Bidi) will come into effect from 22-09-2025.
• For Pan Masala, Gutkha, Cigarettes, Chewing Tobacco products such as Zarda, Unmanufactured Tobacco, and Bidi, the current GST rates along with applicable Compensation Cess shall continue until the outstanding loan and interest obligations under the Compensation Cess account are fully settled.
9. Rate Rationalisation
• The Council has recommended that the changes in GST rates of all services and all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented w.e.f. 22-09-2025.
• An illustrative list of sector-wise changes in rates of goods are as follows:
FOOD SECTOR
or 2106 Khakhra, chapathi or roti
Paratha, parotta and other Indian breads by any name called
0402 91 10, 0402 99 20
0405 Butter and other fats (i.e. ghee, butter oil, etc.) and oils derived from milk; dairy spreads
Other Nuts, dried, such as almonds, peanuts, chestnuts, whether or not shelled or peeled
0804 Dates (soft or hard), figs, pineapples, avocados, guavas, mangoes (other than mangoes sliced, dried) and mangosteens, dried
0805 Citrus fruit
0813 Fruit, dried, other than that of headings 0801 to 0806; mixtures of nuts or dried fruits of Chapter 8 [other than dried tamarind]
1501 Pig fats (including lard) and poultry fat, other than that of heading 0209 or 1503
1502 Fats of bovine animals, sheep or goats, other than those of heading 1503
1504 Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified
1601 Sausages and similar products, of meat, meat offal, blood or insects; food preparations based on these products
1701 91, 1701 99 All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes (other than those which attract 5% or nil GST)
1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni, couscous, whether or not prepared
2004 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006
2007 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter
2009 89 90 Tender coconut water, pre-packaged and labelled
2106 90 Namkeens, bhujia, mixture, chabena and similar edible preparations ready for consumption form (other than roasted gram), pre-packaged and labelled
99 20 Fruit pulp or fruit juice-based drinks [other than Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice]
1704 Sugar confectionery [other than mishri, batasha, bura, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana, chikkis like puffed rice chikki, peanut chikki, sesame chikki, til chikki, til patti, til revdi, sugar makhana, groundnut sweets, gajak and sugar boiled confectionery]
1904 All goods, i.e. Corn flakes, bulgar wheat, and prepared foods obtained from cereal flakes
1905 Pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products
including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter, nor flavoured
TOBACCO SECTOR
manufactured tobacco and manufactured tobacco substitutes; ‘homogenised’ or ‘reconstituted’ tobacco; tobacco extracts and essences
*To be effective from a date to be notified based on the discharging of the entire loan and interest liability on account of compensation cess
AGRICULTURE SECTOR
FERTILISER SECTOR
COAL SECTOR
2701 Coal, briquettes, ovoids and similar solid fuels manufactured from coal
2702 Lignite, whether or not agglomerated, excluding jet
2703 Peat (including peat litter), whether or not agglomerated
RENEWABLE ENERGY SECTOR
85 or 94 Following renewable energy devices and parts:
• Ocean waves/tidal waves, energy devices/ plants;
• Photovoltaic cells, whether assembled in modules or made up into panels.
Fuel Cell Motor Vehicles, including hydrogen vehicles based on fuel cell technology
TEXTILE SECTOR
HSN Code
5401 Sewing thread of manmade filaments, whether or not put up for retail sale
5402, 5403, 5404,5405, 5406 Synthetic or artificial filament yarns
5508 Sewing thread of manmade staple fibres
5509, 5510, 5511 Yarn of manmade staple fibres
5603 Nonwovens, whether or not impregnated, coated, covered or laminated
5604 Rubber thread and cord, textile-covered; textile yarn and strip and the like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics
5607 Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics [other than jute twine, coir cordage or ropes]
5609 Articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included
5701 Carpets and other textile floor coverings, knotted, whether or not made up
5810 Embroidery in the piece, in strips or in motifs, embroidered badges, motifs and the like
5903 Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902
5905 Textile wall coverings
5906 Rubberised textile fabrics, other than those of heading 5902
5907 Textile fabrics otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio back-cloths or the like
5910 Transmission or conveyor belts or belting, of textile material, whether or not impregnated, coated, covered or laminated with plastics, or reinforced with metal or other material
5911 Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery or plant, Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery, straining cloth of a kind used in oil presses or the like, including that of human hair
Products wholly made of quilted textile material not exceeding ₹2500 per piece
5503, 5504, 5506,5507
61 Articles of apparel and clothing accessories, knitted or crocheted, of sale value exceeding ₹2500 per piece
Articles of apparel and clothing accessories, not knitted or crocheted, of sale value exceeding ₹2500 per piece
63 [other than 6309] Other made-up textile articles, sets of sale value exceeding ₹2500 per piece [other than worn clothing and other worn articles; rags]
HEALTH SECTOR
3003
3004
Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvaedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments
Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvaedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments
3822 All diagnostic kits and reagents
EDUCATION SECTOR
9609
(including propelling or sliding pencils), crayons, pastels, drawing charcoals and tailor’s
COMMON MEN ITEMS
and sun umbrellas (including walking-stick umbrellas, garden umbrellas and similar umbrellas)
Combs, hair-slides and the like; hairpins, curling pins, curling grips, hair-curlers and the like, other than those of heading 8516, and parts thereof
CONSUMER ELECTRONICS
8415
Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated
8422 Dish washing machines, household [8422 11 00] and other [8422 19 00]
8528 Television sets (including LCD and LED television); Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus, set top box for television and Television set (including LCD and LED television).
PAPER SECTOR
4802 Uncoated paper and paperboard used for exercise book, graph book, laboratory notebooks and notebooks
30 Boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery
10, 4819 20 Cartons, boxes and cases of Corrugated paper or paper boards; or non-corrugated paper or paper board
4807 Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets
4808
4810
Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803
Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets of any size
TRANSPORTATION SECTOR
4011 New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and threewheeled powered cycle rickshaws; rear tractor tyres; and of a kind used on aircraft]
Motor vehicles for the transport of ten or more persons, including the driver [other than buses for use in public transport, which exclusively run on biofuels]
8703 Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm.
8703 Diesel-driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.
8702 or 8703 Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles
Three-wheeled vehicles
8703 40, 8703 60 Motor vehicles with both a spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm
8704 Motor vehicles for the transport of goods [other than Refrigerated motor vehicles]
8706 Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705
8707 Bodies (including cabs), for the motor vehicles of headings 8701 to 8705
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705 [other than specified parts of tractors]
8711 Motorcycles of engine capacity (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars, of an engine capacity not exceeding 350cc; side cars
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars, other than those mentioned at Sr. Nos. 4, 5, 6, 7, 8 and 9 of the above table [wherein 28% to 18% is mentioned]
870340, 870360 Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity exceeding 1200cc or of length exceeding 4000 mm
870350, 870370 Motor vehicles with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity exceeding 1500cc or of length exceeding 4000 mm
and other vessels for pleasure or sports
SPORTS GOODS AND TOYS
4203
Gloves specially designed for use in sports
9503 Toys like tricycles, scooters, pedal cars, etc. (including parts and accessories thereof) [other than electronic toys]
9504 board games, like ludo, etc. [other than Video game consoles and Machines]
9506 Sports goods other than articles and equipment for general physical exercise
9507 Fishing rods, and other line fishing tackle; fish landing nets, butterfly nets and similar nets; decoy ‘birds’ (other than those of heading 9208 or 9705) and similar hunting or shooting requisites
DUTIABLE ARTICLES FOR PERSONAL USE (FOR IMPORTS)
LEATHER SECTOR
4107
4112
4113
Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 4114
Leather further prepared after tanning or crusting, including parchment-dressed leather, of sheep or lamb, without wool on, whether or not split, other than leather of heading 4114
Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 4114
4115 Composition leather with a basis of leather or leather fibre, in slabs, sheets or strips, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for the manufacture of leather articles; leather dust, powder and flour
6701 Skins and other parts of birds with their feathers or down, feathers, parts of feathers, down and articles thereof (other than goods of heading 0505 and worked quills and scapes)
WOOD SECTOR
44 or any Chapter The following goods, namely: —
a) Cement Bonded Particle Board;
b) Jute Particle Board;
c) Rice Husk Board;
d) Glass-fibre Reinforced Gypsum Board
e) Sisal-fibre Boards;
f) Bagasse Board; and
g) Cotton Stalk Particle Board
h) Particle/fibre board manufactured from agricultural crop residues
4404 Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like
4415 Packing cases, boxes, crates, drums and similar packings of wood; cable drums of wood; pallets, box pallets and other load boards of wood; pallet collars of wood
4417 Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees, of wood
4418 Bamboo wood building joinery
4420 Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in Chapter 94
4503 Articles of natural cork, such as Corks and Stoppers, Shuttlecock cork bottom
4504 Agglomerated cork (with or without a binding substance) and articles of agglomerated cork
DEFENCE SECTOR
FOOTWEAR SECTOR
CONSTRUCTION SECTOR
2523 Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers
68 Sand lime bricks or Stone inlay work
HANDICRAFTS SECTOR
44, 68, 83 Idols of wood, stone [including marble] and metals [other than those made of precious metals]
6802 Statues, statuettes, pedestals; high or low reliefs, crosses, figures of animals, bowls, vases, cups, cachou boxes, writing sets, ashtrays, paper weights, artificial fruit and foliage, etc.; other ornamental goods essentially of stone
4202 22,4202 29, 4202 31 10, 4202 31 90, 4202 32,4202 39 Handbags, including pouches and purses; jewellery box
4414 Wooden frames for painting, photographs, mirrors, etc
4420 Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and lacquer work [including lathe and lacquer work, ambadi sisal craft]
4503 90 90
4504 90 Art ware of cork [including articles of sholapith]
6802 Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
691200 10, 6912
00 20 Tableware and kitchenware of clay and terracotta, other clay articles
6913 90 00 Statuettes & other ornamental ceramic articles (incl blue potteries)
7009 92 00 Ornamental framed mirrors
7018 90 10 Glass statues [other than those of crystal]
7020 00 90 Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]
90 99 Art ware of iron
7419 80 Artware of brass, copper/ copper alloys, electro plated with nickel/silver
7616 99 90 Aluminium art ware
8306 Bells, gongs and the like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali)
Handcrafted lamps (including panchloga lamp)
940150, 9403 80 Furniture of bamboo, rattan and cane
9503 Dolls or other toys made of wood, metal, or textile material [incl wooden toys of Sawantwadi, Channapatna toys, Thanjavur doll)
9601 Worked articles of ivory, bone, tortoise shell, and horn, antlers, coral, mother of pearl, seashell, and other animal carving materials
9602 Worked on vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes, etc, (including articles of lac, shellac)
9703 Original sculptures and statuary, in metal, stone, or any material
OTHER MACHINERY
Fuel elements (cartridges), non-irradiated, for nuclear reactors
8407 Spark-ignition reciprocating or rotary internal combustion piston engine [other than aircraft engines]
8408 Compression-ignition internal combustion piston engines (diesel or semi-diesel engines)
8507 Electric accumulators, including separators therefor, whether or not rectangular (including square), other than Lithium-ion battery and other Lithium-ion accumulators, including Lithium-ion power banks
MISCELLANEOUS ITEMS
Photographic plates and films, exposed and developed, whether or not incorporating a soundtrack or consisting only of a soundtrack, other than feature films
• Illustrative list of sector-wise changes in rates of services are as follows:
INSURANCE SECTOR
TRANSPORTATION SECTOR
9965 Supply of Transport of goods by GTA
9966 Supply of renting of any motor vehicle (with operator) of any motor vehicle designed to carry passengers, where the cost of fuel is included in the consideration
JOB WORK SECTOR
without ITC (RCM/FCM)
with ITC of input services (in the same line of business)
9988 Supply of job work in relation to bricks which attract GST at the rate of 5%
9988
Supply of job-work services in relation goods falling under Chapter 30 in the First Schedule to the Customs Tariff Act, 1975 (pharmaceutical products)
9988 Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975
with ITC
with ITC
with ITC of input services (in the same line of business)
with ITC 9988 Supply of job-work not elsewhere covered (residual entry)
CONSTRUCTION SECTOR
HSN
9954
Composite supply of works contract and associated services, in respect of the offshore works contract relating to oil and gas exploration and production in the offshore area
9954 Composite supply of works contract involving predominantly earth work (that is, constituting more than 75% of the value of the works contract) provided to the Government
9954 Composite supply of works contract provided by a sub-contractor to the main contractor providing services in the above entry to the Government
with ITC
with ITC
with ITC
LOCAL DELIVERY SECTOR
9968
Local delivery services (covered under SAC 996813 under the Group Postal and Courier Services) 18% with ITC 18% with ITC (no change)
9968 Supply of local delivery services through Electronic Commerce Operator (ECO) Not currently notified under section 9(5) of the CGST Act 18%
• Local delivery services, to be notified under section 9(5) of the CGST Act in cases where the person supplying such services through ECO is not liable for registration under GST. The applicable rate on such services is 18%.
• Local delivery services provided by and through ECO are to be excluded from the scope of GTA services.
OTHER SERVICES (12% to 5%)
9971
Supply of the Service of a third-party insurance of ‘goods carriage’
9996 Services by way of admission to exhibition of cinematograph films where the price of the admission ticket is one hundred rupees or less
9994 Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment
9963 Supply of ‘hotel accommodation’ having the value of the supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent
9997 Beauty and physical well-being services falling under group 99972
ITC
with ITC
with ITC
ITC
OTHER SERVICES (28%
to 40%)
Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL
with ITC 9996 Services by a race club for the licensing of bookmakers in such a club
Any chapter Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) are defined as goods (Corresponding changes in the lottery valuation rules are also being carried out)
Disclaimer:
The rates provided are for reference purposes only and do not represent a complete list.
About Us
Founded 1972
Evolution From a small family business to a leading technology-oriented Publishing/Product company
Expansion
Launch of Taxmann Advisory for personalized consulting solutions
Our Vision
Aim
Achieve perfection, skill, and accuracy in all endeavour
Growth
Evolution into a company with strong independent divisions: Research & Editorial, Production, Sales & Marketing, and Technology
Future
Continuously providing practical solutions through Taxmann Advisory
Our Strength
Core
Editorial and Research Division
Team
Over 200 motivated legal professionals (Lawyers, Chartered Accountants, Company Secretaries)
Expertise
Monitoring and processing developments in judicial, administrative, and legislative fields with unparalleled skill and accuracy
Impact
Helping businesses navigate complex tax and regulatory requirements with ease
Taxmann Today
Legacy Innovation Commitment
Over 60 years of domain knowledge and trust
Technology-driven solutions for modern challenges
Ensuring perfection, skill, and accuracy in every solution provided
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A Glimpse of the People Behind Taxmann
Naveen Wadhwa Research and Advisory [Corporate and Personal Tax]
Chartered Accountant (All India 24th Rank)
14+ years of experience in Income tax and International Tax
Expertise across real estate, technology, publication, education, hospitality, and manufacturing sectors
Contributor to renowned media outlets on tax issues
Vinod K. Singhania
Expert on Panel | Research and Advisory (Direct Tax)
Over 35 years of experience in tax laws
PhD in Corporate Economics and Legislation
Author and resource person in 800+ seminars
V.S. Datey
Expert on Panel | Research and Advisory [Indirect Tax]
Holds 30+ years of experience
Engaged in consulting and training professionals on Indirect Taxation
A regular speaker at various industry forums, associations and industry workshops
Author of various books on Indirect Taxation used by professionals and Department officials
S.S. Gupta
Expert on Panel | Research and Advisory [Indirect Tax]
Chartered Accountant and Cost & Works Accountant
34+ Years of Experience in Indirect Taxation
Bestowed with numerous prestigious scholarships and prizes
Author of the book GST – How to Meet Your Obligations', which is widely referred to by Trade and Industry
Manoj Fogla
Expert on Panel | Research and Advisory [Charitable Trusts and NGOs]
Over three decades of practising experience on tax, legal and regulatory aspects of NPOs and Charitable Institutions
Law practitioner, a fellow member of the Institute of Chartered Accountants of India and also holds a Master's degree in Philosophy
PhD from Utkal University, Doctoral Research on Social Accountability Standards for NPOs
Author of several best-selling books for professionals, including the recent one titled 'Trust and NGO's Ready Reckoner' by Taxmann
Drafted publications for The Institute of Chartered Accountants of India, New Delhi, such as FAQs on GST for NPOs & FAQs on FCRA for NPOs.
Has been a faculty and resource person at various national and international forums
the UAE
Chartered Accountant (All India 36th Rank)
Has previously worked with the KPMG
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Phone | 011 45562222
Email | sales@taxmann.com
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