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Important Update: GST Rate Changes for Goods & Services (Notification No. 09/2025 to 17/2025)

September 21, 2025

The Government of India has issued a new Rate Change Notification No. 09/2025 to 17/2025 under the CGST Act, 2017, effective immediately. These changes involve revised GST rates for various goods and services supplied inter-state, and may impact classification, taxation, and compliance. Below is a summary of what has changed, and how this may affect your business.

What’s Changed

  • Essential items have been brought under a 2.5% GST slab.
  • Other listed goods have been assigned 9% GST.
  • Luxury / non-essential goods now attract 20% GST.
  • Certain categories have been assigned smaller, more specific rates such as 1.5%, 0.75%, 0.125%, and 14%.
  • There are also changes relating to exemptions and services under various chapters/headings, particularly for inter-state supplies.

What to Do Next

  1. Review the Notification
     We recommend downloading and reviewing the full notification Excel sheet to understand exactly which goods/services are affected, and under what headings.
     [Download Notification File] ‒ Click here for the link to the detailed rate change file.

  2. Assess Impact on Your Products/Services

    • Identify whether the goods or services you deal with are re-classified under the new rate schedules.
    • Revisit your existing invoices, quotations, supply chains, and costing to see if pricing needs adjustment.
    • Ensure your accounting, billing, and GST compliance systems are updated to reflect these rates.

  3. Train & Inform Staff
     Make sure teams in procurement, sales, invoicing, and accounting are aware of these changes so that all documentation aligns with the latest GST rates.

  4. Customer Communication
     If your pricing to customers may change as a result, plan how you’ll communicate the change clearly, e.g., via revised price lists or notices.

Why These Changes Matter

GST rate revisions have broad implications:

  • Compliance risk if incorrect rates are applied.
  • Cash flow impact if you need to pay more GST or absorb increased costs.
  • Competitive positioning, especially if some products move into higher slabs.
  • Accounting & tax reporting, given revised categories for inter-state supplies.

Conclusion

This notification marks an important update under the CGST Act, 2017. Businesses operating across states should take prompt action to analyse the new rates, align their processes, and communicate appropriately.