The Ministry of Finance has issued Notification No. 15/2025 under the Central Goods and Services Tax (CGST), Integrated GST (IGST), and Union Territory GST (UTGST) Acts, bringing sweeping amendments to GST rates on several services. These changes, recommended by the GST Council, will come into effect from September 22, 2025, impacting logistics, postal, courier, job work, and professional services, among others.
Key Highlights of the Notification
Transport and Logistics Services
- GST on transportation of goods by rail (other than Indian Railways) has been revised to 2.5% or 9%, subject to conditions on input tax credit (ITC).
- Multimodal transportation of goods will attract 2.5% GST when air transport is not involved, and 9% where air transport is one of the modes. ITC restrictions apply to prevent double benefits.
- Renting of goods carriages including fuel cost will now be taxed at 2.5% (with ITC restrictions) or 9%.
Postal, Courier and Delivery Services
- Postal and courier services will now uniformly attract 9% CGST + 9% SGST (18% total under IGST).
- Local delivery services through e-commerce operators will also be taxed at 9%, removing earlier exemptions.
Job Work and Manufacturing Services
- Diamonds: Job work services relating to diamonds will attract a concessional GST of 0.75% CGST (1.5% IGST).
- Food, pharmaceuticals, textiles, leather, handicrafts, printing, and umbrellas - Job work in these sectors will continue at concessional 2.5% CGST (5% IGST).
- Alcoholic liquor for human consumption - Job work will be taxed at 9% CGST (18% IGST).
- Other job work activities not specifically covered will attract 9% CGST (18% IGST).
Beauty, Wellness & Miscellaneous Services
- Beauty and physical well-being services (such as spa, salon, wellness centers) will now be taxed at 2.5% CGST (5% IGST), provided no ITC is availed.
- Laundry, cleaning, dyeing, and miscellaneous services will attract 9% CGST (18% IGST).
Professional & Business Services
- A new classification has been introduced under serial number 21, consolidating "other professional, technical, and business services" under 9% CGST (18% IGST).
Sports & Entertainment
- GST on certain sporting events has been increased to 20%, but a carve-out has been provided for 'recognised sporting events', which continue to enjoy exemptions.
Impact and Industry Reactions
The changes are expected to significantly impact logistics, e-commerce delivery, job work in jewellery and textile sectors, and wellness services. While concessional rates have been maintained in labour-intensive industries like textiles and food processing, higher tax rates in courier, postal, and professional services could increase compliance and operational costs.
Industry associations have welcomed clarity on multimodal transportation, but concerns remain over higher effective rates on courier and delivery services, which may trickle down to end consumers.
Effective Dates
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Most changes will apply from September 22, 2025.
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Certain amendments relating to hotel accommodation premises definitions are effective from April 1, 2025 (retrospective clarification).
Official copy of the notification has been attached
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