In a major move aimed at aligning tax rates with public welfare initiatives, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 04/2025-Central Tax (Rate) on January 16, 2025. The amendments primarily affect tax rates on specific goods and services under the Goods and Services Tax (GST) regime.
Key Highlights
1. Fortified Rice Kernel Inclusion
The notification introduces "food inputs for fortified rice kernel supply" for government schemes like ICDS, reflecting the Centre's focus on nutritional initiatives.
2. Tax Rate Adjustments
The notification revises tax rates for critical sectors:
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- For Central Tax: Tax rate against S. No. 4 in the earlier notification (8/2018) is raised from 6% to 9%.
- For Union Territory Tax: A similar increase from 6% to 9% is implemented.
- For Integrated Tax: Tax rate under notification 9/2018 is adjusted from 12% to 18%.
Immediate Effect
The updated rates come into effect immediately, impacting suppliers, businesses, and other stakeholders dealing with the affected goods and services.
This adjustment reflects the government's commitment to refining GST rates for broader public benefit and fiscal efficiency.
Official copy of the notification has also been attached
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