Nidhi | Sep 4, 2025 |
GST Overhaul 2025: Full List of Service Rate Changes
The GST Council has announced the recommended changes in the GST Rates in its 56th Meeting. Currently, there are four GST Slabs: 5%, 12%, 18% and 28%. With the GST Reform, there will be a two-slab structure having GST rates of 5% and 18%. Let us Know About the changes in GST Rates for Services.
| S.No. | HSN Code | Description of Service | From | To |
| 1 | 9954 | (i) Composite supply of works contract services involving predominantly earth work (that is constituting more than 75 percent of the value of the works contract) provided to Government | 12% with ITC | 18% with ITC |
| (ii) Composite supply of works contract provided by a sub-contractor to the main contractor providing services at (i) above to Government | 12% with ITC | 18% with ITC | ||
| (iii) Composite supply of works contract and associated services, in respect of offshore works contract relating to oil and gas exploration and production in offshore area | 12% with ITC | 18% with ITC | ||
| 2 | 9963 | Supply of “hotel accommodation” having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent | 12% with ITC | 5% without ITC |
| 3 | 9964 | (i) Supply of Air transport of passengers in other than economy class | 12% with ITC | 18% with ITC |
| (ii) Supply of Passenger transport by any motor vehicle where fuel cost is included | 5% with ITC of input services (in the same line of business) | 5% with ITC of input services (in the same line of business) | ||
| 12% with ITC | 18% with ITC | |||
| 4 | 9965 | (i) Supply of Transport of goods by GTA | 5% without ITC (RCM/FCM) | 5% without ITC (RCM/FCM) |
| 12% with ITC | 18% with ITC | |||
| (ii) Supply of transport of goods in containers by rail by any person other than Indian Railways | 12% with ITC | 5% without ITC | ||
| 18% with ITC | ||||
| (iii) Supply of transportation of natural gas, petroleum crude, motor spirit, high speed diesel or ATF through pipeline | 5% without ITC | 5% without ITC | ||
| 12% with ITC | 18% with ITC | |||
| (iv) Supply of Multimodal transport of goods within India | 12% with ITC | 5%, where no leg of transport is through air, with restricted ITC (i.e. 5% of input services of goods transportation). | ||
| 18% with ITC | ||||
| 5 | 9966 | (i) Supply of Renting of any motor vehicle (with operator) designed to carry passengers where the cost of fuel is included in consideration | 5% with ITC of input services (in the same line of business) | 5% with ITC of input services (in the same line of business) |
| 12% with ITC | 18% with ITC | |||
| (ii) Supply of Renting of goods carriage (with operator) where fuel cost is included in consideration | 12% with ITC | 5% with ITC of input services (in the same line of business) | ||
| 18% with ITC | ||||
| 6 | 9968 | (i) Local delivery services (This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 996813 – under the Group Postal and Courier Services) | 18% with ITC | 18% with ITC (no change) |
| (ii) Supply of local delivery services through Electronic Commerce Operator (ECO) | Not currently notified under section 9(5) of the CGST Act |
| ||
| 7 | 9971 | Supply of Service of third-party insurance of “goods carriage” | 12% with ITC | 5% with ITC |
| 8 | 9973 | Leasing or rental services, without operator, of goods which will attract (28%) 40% GST | 28% With ITC | 40% with ITC |
| 9 | 9983 | Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both; | 12% with ITC | 18% with ITC |
| 10 | 9986 | Support services to exploration, mining or drilling of petroleum crude or natural gas or both. | 12% with ITC | 18% with ITC |
| 11 | 9988 | (i) Supply of services by way of job work in relation to umbrella | 12% with ITC | 5% with ITC |
| (ii) Supply of job work services or any treatment or process in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @12% 5% | 12% with ITC | 5% with ITC | ||
| (iii) Supply of job work in relation to bricks which attract GST at the rate of 5% | 12% with ITC | 5% with ITC | ||
| (iv) Supply of job-work services in relation goods falling under Chapter 30 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (pharmaceutical products) | 12% with ITC | 5% with ITC | ||
| (v) Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 | 12% with ITC | 5% with ITC | ||
| (vi) Supply of job-work not elsewhere covered (residual entry) | 12% with ITC | 18% with ITC | ||
| 12 | 9994 | (i) Services by way of treatment of effluents by a Common Effluent Treatment Plant; | 12% with ITC | 5% with ITC |
| (ii) Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment. | 12% with ITC | 5% with ITC | ||
| 13 | 9996 | (i) Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. | 12% with ITC | 5% with ITC |
| (ii) Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL. | 28% With ITC | 40% with ITC | ||
| (iii) Services by a race club for licensing of bookmakers in such club. | 28% With ITC | 40% with ITC | ||
| 14 | 9997 | Beauty and physical well-being services falling under group 99972 [This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 9997] | 18% with ITC | 5% without ITC |
| 15 | Any chapter | Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods (Corresponding changes in the lottery valuation rules are also being carried out) | 28% With ITC | 40% with ITC |
| S.No. | HSN Code | Description of Service | From | To |
| 1 | 9971 | (i) All individual health insurance, along with reinsurance thereof | 18% with ITC | Exemption |
| (ii) All individual life insurance, along with reinsurance thereof | 18% with ITC | Exemption |
Transportation Sector
| Entry | From | To | |
| 1 | Supply of Air transport of passengers in other than economy class | 12% with ITC | 18% with ITC |
| 2 | Supply of Passenger transport by any motor vehicle where fuel cost is included | 5% with ITC of input services (in the same line of business) | 5% with ITC of input services (in the same line of business) |
| 12% with ITC | 18% with ITC | ||
| 3 | Supply of transport of goods in containers by rail by any person other than Indian Railways | 12% with ITC | 5% without ITC |
| 18% with ITC | |||
| 4 | Supply of transportation of natural gas, petroleum crude, motor spirit, high speed diesel or ATF through pipeline | 5% without ITC | 5% without ITC |
| 12% with ITC | 18% with ITC | ||
| 5 | Supply of Transport of goods by GTA | 5% without ITC (RCM/FCM) | 5% without ITC (RCM/FCM) |
| 12% with ITC | 18% with ITC | ||
| 6 | Supply of Renting of any motor vehicle (with operator) of any motor vehicle designed to carry passengers where the cost of fuel is included in consideration | 5% with ITC of input services (in the same line of business) | 5% with ITC of input services (in the same line of business) |
| 12% with ITC | 18% with ITC | ||
| 7 | Supply of Renting of goods carriage (with operator) where fuel cost is included in consideration | 12% with ITC | 5% with ITC of input services (in the same line of business) |
| 18% with ITC | |||
| 8 | Supply of Multimodal transport of goods within India | 12% with ITC | 5%, where no leg of transport is through air, with restricted ITC (i.e. 5% of input services of goods transportation). |
| 18% with ITC |
Job Work Sector
| Entry | From | To | |
| 1 | Supply of services by way of job work in relation to umbrella | 12% with ITC | 5% with ITC |
| 2 | Supply of job work services or any treatment or process in relation to printing of all goods falling under Chapter 48 or 49, which attract GST | 12% with ITC | 5% with ITC |
| 3 | Supply of job work in relation to bricks which attract GST at the rate of 5% | 12% with ITC | 5% with ITC |
| 4 | Supply of job-work services in relation goods falling under Chapter 30 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (pharmaceutical products) | 12% with ITC | 5% with ITC |
| 5 | Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 | 12% with ITC | 5% with ITC |
| 6 | Supply of job-work not elsewhere covered (residual entry) | 12% with ITC | 18% with ITC |
Construction Sector
| Entry | From | To | |
| 1 | Composite supply of works contract and associated services, in respect of offshore works contract relating to oil and gas exploration and production in offshore area | 12% with ITC | 18% with ITC |
| 2 | Composite supply of works contract involving predominantly earth work (that is, constituting more than 75per cent. of the value of the works contract) provided to Government | 12% with ITC | 18% with ITC |
| 3 | Composite supply of works contract provided by a sub-contractor to the main contractor providing services at Sl. No. 2 above to Government | 12% with ITC | 18% with ITC |
Local Delivery Services
S.No. | Entry | From | To |
| 1 | Local delivery services (This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 996813 – under the Group Postal and Courier Services) | 18% with ITC | 18% with ITC (no change) |
| Supply of local delivery services through Electronic Commerce Operator (ECO) | Not currently notified under section 9(5) of the CGST Act |
|
Other services
| Entry | From | To | |
| 1 | Supply of Service of third-party insurance of “goods carriage” | 12% with ITC | 5% with ITC |
| 2 | Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. | 12% with ITC | 5% with ITC |
| 3 | Services by way of treatment of effluents by a Common Effluent Treatment Plant; | 12% with ITC | 5% with ITC |
| 4 | Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment. | 12% with ITC | 5% with ITC |
| 4 | Supply of “hotel accommodation” having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent | 12% with ITC | 5% without ITC |
| 5 | Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both; | 12% with ITC | 18% with ITC |
| 6 | Support services to exploration, mining or drilling of petroleum crude or natural gas or both. | 12% with ITC | 18% with ITC |
| 7 | Beauty and physical well-being services falling under group 99972 [This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 9997] | 18% with ITC | 5% without ITC |
Rates: 28% to 40%
| Entry | From | To | |
| 1 | Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL. | 28% With ITC | 40% with ITC |
| 2 | Services by a race club for licensing of bookmakers in such club. | 28% With ITC | 40% with ITC |
| 3 | Leasing or rental services, without operator, of goods which will attract ( | 28% With ITC | 40% with ITC |
| 4 | Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods (Corresponding changes in the lottery valuation rules are also being carried out) | 28% With ITC | 40% with ITC |
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