Summary of GST Notifications issued on 16.01.2025

Changes in GST rates of goods

1. Notification No. 01/2025- Central Tax (Rate), 01/2025- Union Territory Tax (Rate) and 01/2025- Integrated Tax (Rate)

To reduce the GST rate on Fortified Rice Kernel (FRK), classifiable under 1904, to 5%.

2. Notification No. 02/2025- Central Tax (Rate), 02/2025- Union Territory Tax (Rate) and 02/2025- Integrated Tax (Rate)

To exempt GST on gene therapy.

3. Notification No. 02/2025-Customs

To extend IGST exemption to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant assembly/manufacture of LRSAM system under Notification 19/2019-Customs.

4. Notification No. 01/2025-Compensation Cess (Rate)

To reduce the rate of Compensation Cess to 0.1% on supplies to merchant exporters at par with GST rate on such supplies.

5. Notification No. 01/2025-Customs

To exempt from IGST imports of all equipment and consumable samples by Inspection Team of the International Atomic Energy Agency (IAEA) subject to specified conditions.

6. Notification No. 03/2025- Central Tax (Rate), 03/2025- Union Territory Tax (Rate) and 03/2025- Integrated Tax (Rate)

To extend the concessional 5% GST rate on food inputs of food preparations under HSN 19 or 21 that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.

GST Rate on Goods

Changes in GST rates of Services

1. Notification No. 07/2025- Central Tax (Rate), 07/2025- Integrated Tax (Rate) and 07/2025- Union Territory Tax (Rate)

To bring supply of the sponsorship services provided by the body corporates under Forward Charge Mechanism.

2. Notification No. 06/2025- Central Tax (Rate), 06/2025- Integrated Tax (Rate) and 06/2025- Union Territory Tax (Rate)

• To exempt GST on the contributions made by general insurance companies from the third-party motor vehicle premiums collected by them to the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act, 1988. This fund is constituted for providing compensation/ cashless treatment to the victims of road accidents including hit and run cases.
• To provide exemption on services provided by “a training partner approved by the National Skill Development Corporation” in relation to the services as provided under Entry 69 of GST Exemption Notification No. 12/2017
• Changes made in Entry No. 25A of the NN. 12/2017-Central Tax (Rate), to change made in words “transmission and distribution” to “transmission or distribution

3. Notification No. 05/2025- Central Tax (Rate), 05/2025- Integrated Tax (Rate) and 05/2025- Union Territory Tax (Rate)

Notification 08/2025-Central Tax (Rate), 08/2025- Integrated Tax (Rate) and 08/2025-Union Territory (Rate)

To omit the definition of declared tariff and suitably amend the definition of specified premises (from the services rate and exemption notifications) to link it with actual value of supply of any unit of accommodation provided by the hotel and to make the rate of GST applicable on restaurant services in such hotels, for a given financial year, dependent upon the ‘value of supply’ of units of accommodation made in the preceding financial year, i.e. 18% with ITC if the ‘value of supply’ exceeded Rs. 7,500 for any unit of accommodation in the preceding financial year, and 5% without ITC otherwise. Further, to give an option to pay tax on restaurant service in hotels at the rate of 18% with ITC, if the hotel so chooses, by giving a declaration to that effect on or before the beginning of the financial year or on obtaining registration.The above changes to be made effective from 01.04.2025 to avoid any transition difficulties.

4. Notification No. 07/2025- Central Tax (Rate), 07/2025- Integrated Tax (Rate) and 07/2025- Union Territory Tax (Rate)

To exclude taxpayers registered under composition levy scheme from the entry at Sr. No. 5AB introduced vide Notification No. 09/2024-CTR dated 08.10.2024 vide which renting of any commercial/ immovable property (other than residential dwelling) by unregistered person to registered person was brought under reverse charge mechanism.