The recent GST Council meeting has resulted in several important notifications, bringing into effect key changes. These include revisions in GST rates for goods and services, new exemptions, amendments to annual return requirements, and procedural updates related to GST Tribunal (GSTAT) forms and appeal deadlines.
1. Changes in GST Rates – Goods
A series of important changes affecting the rate structure and exemptions under GST, particularly impacting goods in specific categories have been implemented. These updates include revised tax rates, new exemptions, and the removal of Compensation Cess on several items. One of the key changes is the retention of a 12% GST rate (6% CGST + 6% SGST) on certain construction-related goods
Additionally, several goods have now been exempted from GST, leading to important compliance requirements for businesses holding stock of these items. In particular, businesses must reverse any Input Tax Credit (ITC) claimed on such goods if they remain unsold in stock as of 21st September 2025. This includes ITC related to Compensation Cess as well.
The Compensation Cess itself has been reduced to NIL for various products, further impacting the overall tax structure.
These changes have implications for pricing, procurement planning, and GST compliance—especially with respect to reversal of ITC under Section 17 of the CGST Act.
Key Notifications Issued
- Notification No. 9/2025 – Central Tax (Rate):
Revises the GST rate structure by substituting earlier Notification No 1/2017 – Central Tax (Rate); includes new slabs such as 5%, 12%, 18%, 28%, and others. - Notification No. 10/2025 – Central Tax (Rate):
Replaces Notification No. 2/2017 to update the list of exempt goods. - Amendment to Notification No. 11/2025 – Central Tax (Rate):
Specific changes related to goods used in petroleum operations.It amendment to Notification No. 3/2017 – Central Tax (Rate) - Notification No. 2/2025 – Compensation Cess (Rate):
Removes Compensation Cess (now NIL) on various products. - Notification No. 14/2025 – Central Tax (Rate):
Introduces a 12% GST rate (6% CGST + 6% SGST) on the following goods:
| S. No. | Tariff Item / Heading | Description |
| 1 | 6815 | Fly ash bricks, aggregates, blocks |
| 2 | 6901 00 10 | Bricks of fossil meals/siliceous earths |
| 3 | 6904 10 00 | Building bricks |
| 4 | 6905 10 00 | Earthen or roofing tiles |
SSBA Comment
Businesses must ensure reversal of ITC (including Compensation Cess) for any goods that have become exempt and remain in closing stock as of 21.09.2025, in line with Section 17 of the CGST Act. This should be adjusted via the Electronic Credit or Cash Ledger accordingly.
We recommend reviewing your inventory and GST ledgers to ensure timely compliance.
2. Changes in GST Rates – Services
Notifications Issued:
- Notification No. 15/2025 – Central Tax (Rate): Amends rate structures under Notification No. 12/2017.
- Notification No. 16/2025 – Central Tax (Rate): Introduces new service exemptions.
New Service Exemptions:
- Individual health insurance and corresponding reinsurance are now exempt.
- Individual life insurance and corresponding reinsurance are now exempt.
- Electronic Commerce Operators (ECOs) providing local delivery services have been excluded from the definition of Goods Transport Agency (GTA). As a result, associated exemptions previously available to GTAs are no longer applicable.
Summary of Rate Changes – Services
From 12% to 5%
- Job work for manufacture of umbrellas
- Printing services
- Third-party insurance of goods carriage
- Exhibition of films (ticket price ≤ ₹100)
- Hotel accommodation (room tariff ≤ ₹7,500 per day) – (ITC cannot be availed)
- Common effluent treatment services
- Treatment of Bio Medical Waste
- Transport of goods in Container (excluding Indian Railways) – (ITC cannot be availed)
- Multimodal transport (Excludes Transport by Air) – (ITC is Restricted to input services of transport of goods and rate of 5%)
From 18% to 5%
- Beauty and physical well-being services – (ITC cannot be availed) [ Mandatory Rate]
From 12% to 18%
- Government works contracts with >75% earthwork
- Subcontracted works for above mentioned government works contract
- Works Contract with respect to Offshore oil and gas works
- Technical, professional, and support services for petroleum and mining
- Residual job work
- Air transport (non-economy class)
- Goods transport agency (GTA) services
- Transport of goods in Container (excluding Indian Railways)
- Transport via Pipeline of Petrol, Natural Gas, Petroleum Crude, High Speed Diesel or Aviation Turbine Fuel.
- Garments and accessories priced above ₹2,500
- Rental of passenger vehicles or goods vehicle where fuel cost is included
- Transport of Passenger by motor vehicle where cost of fuel is included
- Multimodal transport (Includes at least one mode of Air)
From 28% to 40%
- Specified actionable claims (betting, casinos, online gaming, horse racing, lotteries)
- Admission to casinos, race clubs, and IPL events
3. GSTR-9 / 9C – Annual Return
Forms GSTR-9 and GSTR-9C have been amended.
Continued Exemption from filing GSTR-9 for FY 2024–25 for registered persons with aggregate turnover up to ₹2 crore.
4. GST Appellate Tribunal (GSTAT)
Key Updates:
- Various appeal forms have been notified or amended.
- A cut-off date of 30 June 2026 has been prescribed for filing appeals against orders passed before 1 April 2026.
- For orders passed on or after 1 April 2026, the standard 3-month filing period will apply.
Jurisdiction of the Principal Bench:
The Principal Bench will handle:
- Cases pending before two or more State Benches involving identical questions of law.
- Matters covered under Section 14 or 14A of the IGST Act, 2017. – Services relating to supplier of online information and database access or retrieval services or actionable claims supplied by a person located outside taxable territory
- Matters covered under Section 20 of the CGST Act, 2017. – Relating to ISD
5. Refunds – Restrictions Introduced
Notification: 14/2025 – Central Tax
Refunds on a provisional basis shall not be issued to:
- Persons who have not completed Aadhaar authentication.
- Persons engaged in the supply of the following goods:
| Sr. No. | HSN Code | Description |
| 1 | 0802 80 | Areca nuts |
| 2 | 2106 90 20 | Pan masala |
| 3 | 24 | Tobacco and manufactured tobacco substitutes |
| 4 | 3301 | Essential oils |
Conclusion
These notifications reflect a significant shift in the GST framework aimed at rationalizing tax rates, enhancing procedural efficiency, and closing certain loopholes. Businesses are advised to assess the implications of these changes on pricing, ITC, compliance requirements, and eligibility for exemptions.
Update: Link to Notification added