From Proposal to Implementation: Key GST changes Effective from 22-09-2025

The article From Proposal to Implementation: Key GST Changes Effective from 22-09-2025 provides analysis for all those notifications that were recommended in the 56th GST Council and will now be implemented from 22-09-2025.

Key Points 

1. Supersession of Notification No 01/2017-CTR dated 28-06-2017
2. Supersession of Notification No 02/2017-CTR dated 28-06-2017
3. 18% GST rate on Petroleum /natural gas exploration applicable on 22-09-2025.
4. Changes in GST Rate of Margin of supply in case of Used Motor Vehicles
5. GST Rates of Handicraft items has been reduced
6. 12% GST rate on type of Bricks and Tiles with effect from 22-09-2025
7. Amendment in Notification No 11/2017-CTR effective from 22-09-2025
8. New GST Exemption notified for services applicable from 22-09-2025
9. Local Delivery services provided through ECO will liable for 18% Charges from22-09-2025
10. Changes in CGST Rules ,2017
11. Restriction on GST Refund from 01-10-2025
12. Exemption in filing of GSTR-9 whose turnover up to Rs. 2 crore in financial Year 2024-25
13. Sections of Finance Act,2025 coming in to force from 01-10-2025
14. Allocation of Jurisdiction to Principal Bench of GST Appellate Tribunal (GSTAT)
15. GSTAT Implementation Notified
16. GST Compensation Cess has eliminated for following goods from 22-09-2025

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1. Supersession of Notification No 01/2017-CTR dated 28-06-2017.

• Notification No. 01/2017-CTR dated 28-06-2017 relates to the GST rates on goods. Based on the recommendations of the 56th GST Council Meeting, the government has decided to revise the rates for specified goods (as discussed in the 56th GST Council Meeting article), which will take effect from 22nd September 2025.
• In exercise of the powers conferred under Section 9(1) and Section 15(5) of the CGST Act, 2017, the government has issued Notification No. 09/2025-CTR dated 17-09-2025, thereby replacing Notification No. 01/2017-CTR dated 28-06-2017. However, all actions already taken under the earlier notification shall continue to remain valid.
• The New notification fixes different GST rates depending on the schedule in which a product is classified:

1. Schedule I → 2.5% (i.e., 5% GST with SGST part)
2. Schedule II → 9% (i.e., 18% GST with SGST part)
3. Schedule III → 20% (i.e., 40% GST with SGST part)
4. Schedule IV → 1.5% (i.e., 3% GST with SGST part)
5. Schedule V → 0.125% (i.e., 0.25% GST with SGST part)
6. Schedule VI → 0.75% (i.e., 1.5% GST with SGST part)
7. Schedule VII → 14% (i.e., 28% GST with SGST part)

• This notification is the master rate chart for GST on goods. Based on the HSN code and description of goods given in the appended Schedules, the applicable GST rate (5%, 12%, 18%, 28%, etc., split into CGST + SGST) is levied on intra-State supplies.

Download PDF of Notification No 09/2025-CTR

Download PDF of Notification No 09/2025-ITR

2. Supersession of Notification No 02/2017-CTR dated 28-06-2017

• Notification No. 02/2017-CTR dated 28-06-2017 relates to the list of exempt goods (Nil rated goods). The Government has decided, on the recommendation of the GST Council, that certain goods should not attract GST (as discussed in the 56th GST Council Meeting article), which will take effect from 22nd September 2025.
• In exercise of the powers conferred under Section 11(1) of the CGST Act, 2017, the government has issued Notification No. 10/2025-CTR dated 17-09-2025, thereby replacing Notification No. 02/2017-CTR dated 28-06-2017. However, all actions taken under the earlier notification shall continue to remain valid.

Download PDF of Notification No 10/2025-CTR

Download PDF of Notification No 10/2025-ITR

3. 18% GST rate on Petroleum /natural gas exploration applicable on 22-09-2025.

• The Government has amended serial no 1 of Notification No 03/2017-CTR related to petroleum/natural gas operations. Earlier, the rate was 12%. As per the recommendation of 56^th Council Meeting, the rate increased to 18% on supply of goods within state to specified Petroleum and other exploration and production projects under various schemes.

Download PDF of Notification No 11/2025-CTR

Downlaod PDF of Notification No 11/2025-ITR

4. Changes in GST Rate of Margin of supply in case of Used Motor Vehicles

• The CBIC has amended an earlier Notification No 08/2018 -CTR dated 25-01-18 which related to charging of GST on Margin amount in case of used motor vehicles. Notification No 08/2018- CTR contains reference to Schedule IV of Notification No 01/2017- CTR which will now be replaced with Schedule II and Schedule III of Notification No 09/2025-CTR as Notification No 01/2017- CTR has now been superseded by Notification No 09/2025- CTR. This will come into effect from 22-09-2025.

Download PDF of Notification No 12/2025-CTR

Download PDF of Notification No 12/2025-ITR

5. GST Rates of Handicraft items has been reduced

• The CBIC has notified reduced GST Rates on Handicrafted items with effect from 22-09-2025 by amending the old Notification No 21/2018-CTR dated 26-07-2018. The entire table has now replaced/substituted with new table in which most of the handicrafted items will attract a GST rate of 5%. However silver filigree work and handmade jewellery have been given even lower rate of 3%.

Download PDF of Notification No 13/2025-CTR

Download PDF of Notification No 13/2025-ITR

6. 12% GST rate on type of Bricks and Tiles with effect from 22-09-2025.

• CBIC has issued fresh notification for 6% rate. This applies only to specific goods listed in the schedule of the Notification No 14/2025-CTR – Dated 17-09-2025. The Government has notified 12% GST rate on building bricks, fly ash bricks and blocks and roofing tiles with effect from 22-09-2025.

Download PDF of Notification No 14/2025-CTR

Download PDF of Notification No 14/2025-ITR

7. Amendment in Notification No 11/2017-CTR effective from 22-09-2025

• CBIC has notified the New GST rates on services with effect from 22-09-2025. The above notification is issued for amendment of the original Notification No 11/2017-CTR dated 28-06-2017.

The following service sector has been notified for the changes in rate in this notifications:

1. Transportation sector
2. Job work sector
3. Construction sector
4. Local delivery services (E- Commerce Operator)
5. Other Services (like beauty & physical well-being, Postal services, Hospitality,Financial and professional & technical services)

Download PDF of Notification No 15/2025-CTR

Download PDF of Notification No 15/2025-ITR

8. New GST Exemption notified for services applicable from 22-09-2025.

• On the Recommendation of Council Meeting CBIC has notified the amendment in Notification No 12/2017- CTR dated 28-06-2017. This amendment specifically changes serial No 18(3) by adding new explanation.
• New explanations is added which says that this exemption will not apply to local delivery services provided by ECO and local services provided through and ECO.
• CBIC has amended the definition of GTA by excluding the e-commerce operator by whom and through whom the service of Local delivery is provided. Hence the platform will now responsible to pay 18% GST on the delivery fees for local deliveries especially when the deliver partner is not registered with GST.
• This amendment says that the exemption under serial No 18 of Notification No 12/2017 does not cover Local delivery services if they are provided by or through ECO. In those cases GST will apply and it will be applicable from 22-09-2025.

• New exemptions Notified for services by amending the earlier Notification No 12/2017- CTR. Services of Life insurance , Health insurance and Reinsurance service of Life and Health insurance. However where there is Group of person joins together with common purpose or engaging in common economic activity (Employer- Employee Group) , No exemption has been provided for that.

Download PDF of Notification No 16/2025-CTR

Download PDF of Notification No 16/2025-ITR

9. Local Delivery services provided through ECO will liable for 18% Charges from22-09-2025

• CBIC has amend the Notification No 17/2017- CTR Dated 28-06-2017 which notifies the list of specific services on which E- Commerce operator are made liable to pay GST under 9(5). In that New clause (v) is inserted for local delivery services.

• From 22-09-2025 local delivery services has been included in the list of services under section 9(5) of CGST Act. In such cases the ECO will pay the GST @ 18% except when delivery service provider is already required to be GST.

• It means now the platforms like Flipkart, Zomato must also pay 18% GST on delivery charges.

Download PDF of Notification No 17/2025-CTR

Download PDF of Notification No 17/2025-ITR

10. Changes in CGST Rules ,2017

1. Amendment in Rule 31A :

• For the valuation of Lottery tickets, The value of supply is fixed at 100/128 (about 78.13%) of the face value of the ticket or the price notified by the Organising State in its Gazette, whichever is higher. This means GST is calculated on that deemed value rather than the full ticket price.
• But now from 22-09-2025, the valuation is fixed at 100/140 (about 71.42%) of the face value of the ticket or the price notified by the Organising State in its Gazette, whichever is higher.

2. Amendment in Rule 39:

This rule deals with the distribution of Input Tax Credit (ITC) on common input services when there are multiple GST registrations under the same PAN (i.e., distinct persons in different states or the same state with different GSTINs). Now Levy of Tax is under section 9(3) or (4) of CGST ACT as well as section 5(3) & (4) of IGST Act 2017. (Effective from 01-04-2025).

3. Amendment in Rule 91:

• Now from 01-10-2025, After a taxpayer files a refund application the system identifies and evaluates the risk in the claim and officer shall make an order in Form GST RFD-04 within a period of 7 days from the date of acknowledgement under Rule 90 (1) & (2) of CGST Rules, 2017.
• Exception 1: If the officer feels (and records reasons in writing) that granting provisional refund is not appropriate — for example, due to doubts or risks in the claim — then he may skip provisional refund and directly decide the case under Rule 92 (final refund order).
• Exception 2: Once an order in RFD-04 is issued, it does not need revalidation even if the refund process takes more time later.

4. Amendment in Rule 110:

• Now from 22-09-2025, whenever taxpayer wants to appeal to appellate Tribunal they must file the appeal in Form GST APL-05 along with all the documents electronically in Part A of Form GST APL-02A and once filed the system will immediately issue provisional acknowledgement in Part A of For GST APL-02A. (Amendment in Rule 110(1)of CGST Rules2017)
• Proviso related to Manual Filling is omitted from 22-09-2025. (Rule 110(1) Proviso Omitted)
• For cross objection to Appellate tribunal must to be filed Online in APL-06 as manual filling proviso are omitted from 22-09-2025. (Rule 110(2)-Proviso Omitted).
• From 22-09-2025, Final acknowledgement for filling appeal for the order being challenged on the Portal will issue in Part B of Form GST APL-02A.

5. Insertion of New Rule 110A:

Rule is related to Procedure for the Appeals to be heard by single Member Bench

• The President or the Vice-President if so authorised by the President in respect of any State Bench, may either on his own motion or an application filed by the parties to the appeal, scrutinise the appeal and transfer such appeal to any single Member Bench within the respective State if the appeal does not involve a question of law.
• In case the single Member Bench, while hearing the appeal allotted under sub-rule (1), comes to a conclusion that the appeal may involve a question of law, such Bench shall for reasons to be recorded in writing send back the appeal to the President or the Vice-President, as the case may be, for reconsideration.
• During the scrutiny of appeal under sub-rule (1) or reconsideration of appeal under sub-rule (2), the fact as to whether in respect of the same taxable person within a State, the same issue for the same or a different tax period has already been heard or decided by a Bench comprising of a Technical Member and a Judicial Member, shall be taken into consideration and where such a matter exists, the appeal shall be heard by a Bench comprising of a Technical Member and a Judicial Member. (4) For the purpose of reckoning the amount of fifty lakh rupees under sub-section (8) of section 109, the cumulative tax or input tax credit involved, or the amount of fine, fee or penalty, shall be determined with reference to all issues and all tax periods covered in the order appealed against.”.

6. Amendment in Rule 111:

• From 22-09-2025, the Provisional Acknowledgement for filling appeal to appellate tribunal under section 112(3) will generate in Part A of Form GST APL-02A.
• Mannal Filling Proviso will no more available from 22-09-2025.
• Manual Filling of appeal for cross objection under section 112(5) will no more available from 22-09-2025.
• Final Acknowledgement of appeal filling for the order which is being appealed against on the portal will available in Part B of Form GST APL 02A.
• The word Self attested Copy shall be inserted in place of Self Certified copy in the second Proviso of Rule 111(4) of CGST Rules 2017.

7. Amendment in Rule 113:

Sub rule (2) shall substitute: 

When the Appellate Tribunal passes its order under section 113(1) of the CGST Act, it must also prepare (or ensure is prepared) a summary of the order. This summary will be issued in FORM GST APL-04A. The purpose of this form is to clearly show the final amount of demand confirmed by the Appellate Tribunal (i.e., the tax, interest, penalty, etc., that remains payable after the Tribunal’s decision).

There is an amendment in the following Forms which will be applicable from 22-09-2025.

1. Form GSTR-9
2. Form GSTR-9C
3. Form GST APL-02A
4. Form GST APL-04A
5. Form GST APL-05
6. Form GST APL-06
7. Form GST APL-07

Download PDF of Notification No 13/2025-CT

11. Restriction on GST Refund from 01-10-2025

CBIC has notified restrictions on GST refunds on the following goods to any person who has not undergone Aadhar authentication process under Rule 10B of the CGST Rules,2017 from 01-10-2025.

1. Areca nuts
2. Pan masala
3. Tobacco and Manufactured tobacco substitutes
4. Essential oils

Download PDF of Notification No 14/2025-CT

12. Exemption in filing of GSTR-9 whose turnover up to Rs. 2 crore in financial Year 2024-25

Exemption from filling of GSTR-9 (Annual return) has been given to registered person whose aggregate turnover in the financial year is up to Rs.2 crore for the Financial Year 2024-25 & onwards.

Download PDF of Notification No 15/2025-CT

13. Sections of Finance Act,2025 coming in to force from 01-10-2025

Now the Sections of the Finance Act, 2025 are being made effective under:

Download PDF of Notification No 16/2025-CT

14. Allocation of Jurisdiction to Principal Bench of GST Appellate Tribunal (GSTAT) 

• Section 109(5) of the CGST Act allows the Government, on GST Council’s recommendation, to notify situations where certain cases will be heard only by the Principal Bench instead of State Benches. The third proviso empowers the Government to specify such cases or classes of cases.

• When Appeal Goes to the Principal Bench:

1. Cases pending before two or more State Benches with identical question of law
2. One or more issues involving of Section 14 or Section 14A of IGST Act, 2017
3. One or more issues involving of Section 20 of CGST Act, 2017.

Download PDF of F. No. A-50-7-2025-GSTAT-DoR, dated 17.09.2025

15. GSTAT Implementation Notified

Section 112(1) of the CGST Act, 2017 prescribes the time limit for filing an appeal before the GST Appellate Tribunal (GSTAT). Normally, an appeal must be filed within 3 months from the date of communication of the order being appealed. However, since the GSTAT is only recently becoming functional, many old cases could not be appealed due to the Tribunal not being operational.

To handle this, the Government (on GST Council’s recommendation) has issued this special notification.

Key Provisions of the Notification

1. For old cases (order received before 01-04-2026):

• Taxpayers can file appeals up to 30th June 2026.
• This provides a special one-time extended window to file appeals before the Tribunal for past orders.

2. For new cases (order received on or after 01-04-2026): The normal rule applies to appeals must be filed within 3 months from the date of communication of the order.

Download PDF of F. No. A-5072025-GSTAT-DoR, dated 17.09.2025 (1)

16. GST Compensation Cess has eliminated for following goods from 22-09-2025

• With effect from 22nd September 2025, the Government, vide Notification No. 02/2025 dated 17th September 2025, has fully eliminated the GST Compensation Cess on the following products.

Download PDF of Notification No. 02-2025 – Compensation Cess (Rate), dated 17.09.2025