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.

[caption id="attachment_362295" align="alignnone" width="874"]<img class="size-full wp-image-362295" src="https://assets.studycafe.in/uploads/2025/01/photo_2025-01-17_17-29-44.jpg" alt="GST Rate on Goods" width="874" height="958" /> GST Rate on Goods[/caption]

Changes in GST rates of Services

<img class="size-full wp-image-362304 aligncenter" src="https://assets.studycafe.in/uploads/2025/01/photo_2025-01-17_17-53-14.jpg" alt="" width="1032" height="1103" />

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)
<ul>
 	<li>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.</li>
 	<li>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</li>
 	<li>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</li>
</ul>
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.

Hers are the Summary of GST Notifications issued on 16.01.2025, that implements the decision taken in the 55th GST Council Meeting.

Summary of GST Notifications issued on 16.01.2025

The Centre has re-appointed Ravi Agrawal as CBDT Chairman on a six-month contract from July 1 to December 31, 2026.

Government Re-Appoints Ravi Agrawal as CBDT Chairman for Six Months

The ITAT Mumbai deleted the Rs 7 lakh addition under Section 69A, holding that credible evidence and consistent explanations outweigh mere suspicion in unexplained cash cases.

ITAT Deletes Rs 7 Lakh Section 69A Addition, Says Suspicion Alone Cannot Replace Proof

The HC dismissed a writ petition challenging personal tax recovery under Section 179, holding that adequate protection had already been granted by directing authorities to first recover dues from the company.

Tax Recovery Must First Target Company: High Court Finds Existing Protection Sufficient and Dismisses Plea

The ITAT sets aside the CIT(A)'s order, holding that under Section 56(2)(x), stamp duty value on the date of allotment applies when part payment was made earlier.

ITAT Rules Stamp Duty Value to Be Considered at Allotment Date under Section 56(2)(x)

The ITAT remanded the case of the Section 80GGC exemption claim, holding that the CIT(A) had dismissed the appeal merely on the grounds of limitation, and the case was not heard on its merits.

ITAT Remands Section 80GGC Donation Case for Fresh Hearing Due to Non-Consideration of Case on Its Merits

From ITR filing to passport fees and banking rules, here are the key financial changes taking effect from July 1, 2026.

Financial Changes From July 1, 2026: What You Need to Know

India’s four labour codes come into force today, introducing major reforms in wages, social security, industrial relations, and workplace safety across the country.

Biggest Labour Reform in Indian History: 4 Labour Codes Effective from today

The Tax Audit and Income Tax Return (ITR) filing due dates remain unchanged in these cases. Taxpayers and professionals must complete filings within the prescribed deadlines. Read the detailed update here.

Tax Audit and ITR Due date not extended in this case: Know More

The Government of India has officially notified the Agreement and Protocol between India and Qatar, strengthening bilateral economic and trade relations. Read the full notification here.

Government notifies Agreement and Protocol between India and Qatar [Read Notification]

ICAI results 2025 likely to be announced soon. Stay updated with the probable date of CA Final and Intermediate exam results and official ICAI updates.

CA Breaking: Results of ICAI Examination to be announced soon, Know probable Date

CBIC has extended the GSTR-3B due date for September 2025 considering Diwali festivities. Relief for taxpayers as filing deadline gets an extension. Check new due date details here

Breaking: GSTR-3B Due Date for September 2025 extended by CBIC amid Diwali Festivities

Income Tax

Finance

ICAI

Judgement

ITAT

ITAT Delhi

Chartered Accountant

Institute of Chartered Accountants of India

CBDT

The ITAT held that a mere mismatch in a trade creditor's closing balance cannot justify an addition under Section 68 when the purchases, sales, and closing stock have already been accepted by the AO.

Mere Difference in Trade Creditor Closing Balance Cannot Justify Section 68 Addition When Purchases Are Accepted, Rules ITAT

The ITAT has upheld the disallowance of delayed employees' PF/ESI contributions under Section 143(1), ruling that CPC can make such adjustments while processing income tax returns.

Delayed PF/ESI Deposits Can Be Disallowed During ITR Processing, Holds ITAT

The ITAT Delhi remands Section 11 exemption case after the tax authorities fails to prove that educational institute engaged in trade or commercial activities.