Many taxpayers and businesses often remain uncertain about the applicable GST rate on their goods and frequently consult professionals to confirm whether any rate changes have been notified. If you too are in doubt, this article is meant for you.
The Central Government, through Notification No. 9/2025-Central Tax (Rate), dated 17th September 2025, has issued a landmark and comprehensive notification consolidating the GST rate structure. This notification provides a complete HSN-wise schedule of GST rates applicable on goods. It has been issued in supersession of the earlier Notification No. 01/2017-CT(Rate), dated 28th June 2017, subject to the usual saving clause for past acts.
Since the effective date (22nd September 2025) is very close, it is imperative for every assessee to carefully go through the schedules provided in this notification and confirm the exact rate applicable to their supplies. For ease of reference, the notification itself is attached with this article so that readers may directly search for their respective HSN codes and identify the applicable rate.
Key Highlights of Notification No. 9/2025-CT(Rate)
1. What Has Changed?
- A new master notification has been issued, replacing the original Notification No. 01/2017-CT(Rate).
- The entire GST rate schedule has been restructured into seven distinct Schedules, each carrying a specified central tax (CGST) rate.
- Mirror notifications have been or will be issued by States to align SGST rates, while inter-State transactions are covered separately by Notification No. 9/2025-IGST(Rate).
- Effective Date: 22nd September 2025.
2. The New Rate Structure (Schedule-wise)
The consolidated GST rates are structured as follows:
|
Schedule |
CGST Rate |
Total GST (CGST+SGST) |
IGST Rate (separate notification) |
|
I |
2.5% |
5% |
5% |
|
II |
9% |
18% |
18% |
|
III |
20% |
40% |
40% |
|
IV |
1.5% |
3% |
3% |
|
V |
0.125% |
0.25% |
0.25% |
|
VI |
0.75% |
1.5% |
1.5% |
|
VII |
14% |
28% |
28% |
Legal basis: Paragraph beginning with "G.S.R. 641(E)… hereby notifies the rate of central tax of-(i) 2.5 per cent… (vii) 14 per cent."
3. How to Confirm Your HSN-wise Rate
To determine the precise GST rate applicable to your product, follow these steps:
- Identify the HSN Code: Confirm the tariff item, sub-heading, heading, or chapter applicable to your product, as defined in the Customs Tariff Act, 1975.
- Refer to the Gazette Notification: Open the official PDF of Notification No. 9/2025-CT(Rate). Each entry clearly mentions the HSN in column (2) and the description of goods in column (3) under the respective Schedule. The GST rate is then derived from the schedule heading.
- Check for Inter-State Supplies: For IGST applicability, refer to the companion Notification No. 9/2025-IGST(Rate), which mirrors the combined rate.
4. Illustrative Examples from Schedule I (2.5% CGST → 5% Total GST)
- 0101 21 00, 0101 29 - Live horses (Serial No. 1, Schedule I)
- 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210 - "All goods, other than fresh or chilled, pre-packaged and labelled" (Serial No. 2, Schedule I)
- 0303 to 0309 - "All goods, other than fresh or chilled, pre-packaged and labelled" (Serial No. 3, Schedule I)
- 0402 - Milk and cream, concentrated or containing added sugar or other sweetening matter, including condensed milk (Serial No. 4, Schedule I)
- 0403 - Yoghurt, Curd, Lassi, Buttermilk (pre-packaged and labelled) (Serial No. 5, Schedule I)
(The notification runs through all HSN codes across Schedules I to VII. Taxpayers are advised to search their exact HSN in the Gazette for accurate applicability.)
5. Other Companion Notifications to Note
Along with Notification No. 9/2025-CT(Rate), several related notifications have been issued which are equally important for compliance:
- Notification No. 10/2025-CT(Rate): Provides the updated Nil/Exempt list (supersedes Notification No. 02/2017-CT(Rate)).
- Notification No. 13/2025-CT(Rate): Covers handicrafts and prescribes concessional GST rates (generally 5% total).
- Notification No. 14/2025-CT(Rate): Relates to bricks, tiles, fly-ash products, etc., at 12% total (6% CGST + 6% SGST).
- State Notifications: State Governments have started issuing mirror notifications to apply SGST rates in line with Notification No. 9/2025. For example, Mizoram has already amended its State Rate Notification with effect from 22nd September 2025.
Conclusion
Notification No. 9/2025-CT(Rate) is a major reform consolidating all HSN-wise GST rates into a single comprehensive framework. For businesses, this provides much-needed clarity and uniformity in GST classification. With the effective date approaching fast, every taxpayer should review their product HSN codes against this notification to ensure correct compliance and avoid disputes.
The author can also be reached at varunmukeshgupta96@gmail.com
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