The Government of India has issued a fresh notification revising the Union Territory Goods and Services Tax (UTGST) rates across various categories of goods. The Ministry of Finance (Department of Revenue), through Notification No. 9/2025-Union Territory Tax (Rate), announced the updated rates which will come into effect from 22nd September 2025.
The revised tax structure, issued under the Union Territory GST Act, 2017, replaces the earlier Notification No. 01/2017 dated 28th June 2017.
According to the notification, UTGST will be levied at different slabs depending on the type of goods:
- 2.5% for goods listed in Schedule I (e.g., dairy products, cereals, pulses, natural honey, tea, coffee, and medicines).
- 9% for items in Schedule II.
- 20% for goods under Schedule III.
- 1.5% for items in Schedule IV.
- 0.125% for Schedule V goods.
- 0.75% for Schedule VI.
- 14% for goods under Schedule VII.
This comprehensive update impacts a wide range of commodities including agricultural products, food items, minerals, fuels and pharmaceutical goods.
The Ministry clarified that the changes apply only to intra-State (within Union Territory) supplies of goods, with tariff details aligned to the Customs Tariff Act classifications.
Experts believe this move aims to streamline tax administration and bring uniformity across Union Territories while adjusting revenue flows in line with GST Council recommendations.
Businesses operating in Union Territories are advised to review the updated schedules and ensure compliance from the effective date.
Official copy of the notification has been attached
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