Central GST Rates Simplified – Notification No. 9/2025-Central Tax

Central GST Rates Simplified – Notification No. 9/2025-Central Tax (Rate)

Explanation of the Notification G.S.R. 641(E): This is an official notification issued under the Central Goods and Services Tax Act, 2017 (CGST Act) by the Government of India. It specifies the rates of central tax to be applied on different goods for intra-State transactions.

1. Legal Basis:
   • The government is using powers from:
     • Section 9(1) – which deals with the levy and collection of tax on intra-State supplies of goods and services.
     • Section 15(5) – which allows specifying the value on which tax is calculated.
   • This notification is issued on the recommendation of the GST Council.
2. Supersession:
   • It replaces an earlier notification, 01/2017-Central Tax (Rate) dated 28th June 2017, except for actions already completed before this change.
3. Tax Rates:
   The notification specifies different central tax rates for goods based on their classification into schedules: Schedule Tax Rate I 2.5% II 9% III 20% IV 1.5% V 0.125% VI 0.75% VII 14% ➤ These schedules contain lists of goods that attract the corresponding tax rate.
4. Application:
   • These rates are applicable only to intra-State supplies of goods — meaning when goods are supplied within the same state.
   • The goods covered are listed in each Schedule with details about their tariff classification (HSN codes).

📂 What are the Schedules?

Each schedule is essentially a list of goods grouped by tax rate. For example:

• Schedule I might include essential items with lower tax rates.
• Schedule III could include luxury or sin goods with higher tax rates.
• Schedule V or VI may cover items like packaged foods or chemicals at lower rates.

📌 Important Notes:

• The notification is only for central tax under GST (CGST), not state or integrated tax.
• It applies prospectively from the date of notification unless explicitly stated otherwise.
• The classification by tariff items helps businesses understand which category a product falls under.

✅ In Simple Terms:

The government is updating the rates of central GST for different goods sold within the same state. The goods are grouped into schedules, and each schedule has a specific tax rate. This helps businesses, tax officers, and policymakers clearly know how much tax applies to various goods under GST.

Also Read: Recommendations of the 56th Meeting of the GST Council – CA Cult

CA Cult YouTube: Calculation of Income Tax FY 2024-25 | Old vs New Regime | For Salaried Employees

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