Issue No. September/2025/01

In this News Letter 1st Edition of September 2025, you’ll find:

1.Ratio of Latest Judgements
2.GST News & Update
3.Exempted Goods & Services and changes with effect from 22.09.2025
4.Highlights on Recommendations of the 56th Meeting of the GST Council held
5.Latest Circular
6.GST Compliances Due Dates

RATIO OF LATEST JUDGEMENTS ON GST

Kanha Shree Steels v. Assistant Deputy Commissioner, Writ Tax No. 2746 of 2025 (Allahabad High Court)

In present facts of the case, the petitioner’s business premises were formally inspected by respondent no. 2. A show-cause notice was issued to the petitioner for the cancellation of their registration, and the petitioner submitted a reply. Further, the petitioner’s application for revocation of the cancellation was subsequently rejected on December 31, 2024. The petitioner appealed against the said order to respondent no. 3, who allowed the appeal on March 28, 2025, but with a condition for verification of facts. Following this, respondent no. 2 asked respondent no. 1 to acknowledge the adverse facts. On May 1, 2025, respondent no. 1 informed the petitioner that the cancellation of registration would not be revoked without fulfilling the conditions from the Order dated 28.03.2025.

Therefore, the Writ Petition was filed challenging the orders dated March 28, 2025, and May 1, 2025. The Hon’ble High Court observed that the show-cause notice and the order of cancellation were “cryptic” and “without reasons in detail”. The Hon’ble High Court further observed that the appellate authority’s action of remanding the case for “verification of facts” was found to be beyond its power. The court cited Section 107 of the GST Act, which explicitly states that the Appellate Authority cannot refer the case back to the adjudicating authority. The court held that once an authority concludes that the original order cannot be sustained, there is no justification for giving further direction, as this would be like giving a “second inning” to the Revenue.

Consequently, the Writ was allowed and the permission was granted to the respondents with the liberty to take a fresh course of action in accordance with the law.

Map Overseas v. Union of India, WRIT PETITION NO. 8229 OF 2025 (Bombay High Court)

In present facts of the case, the Petitioner, challenged an original order dated 23.05.2023 and an appellate authority’s order dated 19.12.2024. The petitioner filed an appeal against the original order on 17.10.2023. According to Section 107(1) of the Central Goods and Services Act, 2017 (CGST Act), a person aggrieved by an order can file an appeal within three months. Section 107(4) allows the appellate authority to permit an appeal to be presented within a further period of one month if there was sufficient cause for the delay. In this case, the petitioner’s appeal was filed beyond the maximum condonable period of four months (120 days). Consequently, the appeal was dismissed by the appellate authority

on December 19, 2023, due to the bar of limitation. The petitioner’s argument that the original order was never communicated was not substantiated in the appeal memo or the application for condonation of delay.

The Hon’ble High Court found no fault in the appellate authority’s decision to dismiss the appeal. The court emphasized that its extraordinary jurisdiction under Article 226 of the Constitution should not be used to bypass the legislative intent behind the limitation periods specified in the CGST Act. The court cited precedents from the Supreme Court, including Assistant Commissioner (CT) LTU, Kakinada & Ors Vs Glaxo Smith Kline Consumer Health Care Limited, and ONGC vs Gujarat Energy Transmission Corporation Limited, which established that a High Court cannot exercise its power to entertain an appeal that was not filed within the prescribed or maximum condonable period. The court also referred to the Division Bench decision in Abhyudaya Co-operative Bank Ltd Vs Union of India, which held that when a statute provides a specific limitation period and an extended period, the provisions of Section 5 of the Indian Limitation Act, 1963, do not apply. Therefore, the court dismissed the writ petition.

Mlv Constructions vs. State of U.P. Thru. Prin. Secy. Deptt. of State Tax Govt of U.P. Lko. and Another, WRIT TAX No. 752 of 2025 (Allahabad High Court)

The petitioner, filed a writ petition seeking to quash two orders: MOV-09 dated June 27, 2025, and GST Form GST MOV-09 dated July 3, 2025. The case arose from the seizure of goods and a vehicle on June 21, 2025. During a previous hearing, the court was informed by the Assistant Commissioner, that a show-cause notice had been issued to the owner of the goods, but no one came forward to claim them, leading to an ex parte order against the driver. The court noted that the instructions provided by the Assistant Commissioner did not include any show-cause notice issued to the consignee or consignor. In a subsequent hearing, the Assistant Commissioner changed his explanation, stating he had “presumed” the owner would be contacted by the driver and would come forward to pay the penalty.

The court found a clear violation of Section 129(3) of the Central Goods and Services Tax Act, 2017 (CGST Act), which mandates that a proper officer must issue a notice to the owner of the goods within seven days of a detention or seizure. The court noted that no notice was served on the petitioner, M/s MLV Constructions, as the owner of the goods. The Assistant Commissioner’s contradictory statements—first claiming a notice was sent and later admitting to a mere “presumption”— was deemed to be taken as misleading. The court also observed that the officer did not seem to be possess adequate knowledge about the Act under which he was taking action. Due to the clear violation of statutory provisions, the court set aside both impugned orders and directed the respondents to issue a fresh show-cause notice to the petitioner within one week. The court also instructed the Commissioner to send the Assistant Commissioner for three months of training to ensure he is well-versed with the provisions of the Act.

Nikhil Trade v. State of Uttar Pradesh & Others, Writ Tax No. 3812 of 2025, (Allahabad High Court)

In present facts of the case, the Petitioner submitted that the business premises of the petitioner was surveyed on 23.02.2024 and on the basis of the said survey, proceedings under section 130, read with section 122 of the GST Act were initiated against the petitioner. He further submits that at the time of survey, without there being any actual weightment, the allegation of excess stock was made. He further submits that the authorities below ought to have proceeded under sections 73/74 of the GST Act and therefore, the instant proceedings are bad in law and liable to be set aside. The Hon’ble High Court observed that the GST Act is a complete Code in itself. A specific provision has been contemplated that if the goods are not recorded in the books of account, then the Proper Officer shall proceed as per the provision of sections 73/74 of the GST Act. Once the Act specifically contemplates that action to be taken, then the provision of section 130 of the GST Act cannot be pressed into service.

The Hon’ble High Court relied upon the Judgment of Vijay Trading Company Vs. Additional Commissioner & Another, Writ Tax No. 1278/2024 and have observed that held that the proceedings under section 130 of the GST Act cannot be put to service in case excess stock is found at the time of survey.

Ruhi Siraj Makda Proprietor of Aries Impex v. Union of India & Anr., R/Special Civil Application No. 2507 of 2023, (Gujarat High Court)

The petitioner, filed this writ under Article 226 of the Constitution seeking refund of IGST amounting to ₹9,48,549/- paid on export of goods during April–September 2018, along with interest at 9%. The refund was denied due to a typographical error while filing GSTR-1, wherein IGST was wrongly entered as zero under Table 6A, though the tax was correctly reflected in GSTR-3B and duly paid. Because of this error, the customs ICEGATE system showed nil refund. The petitioner made representations in 2020 and 2021 with supporting documents including export invoices, shipping bills, payment challans, and CA certificates, but the authorities did not process the refund.

The respondents argued that refund could not be sanctioned since the petitioner failed to amend GSTR-1, and the automated system processed refund as nil. They claimed the refund was not “withheld” but processed as per the data filed by the petitioner.

The Hon’ble High Court observed that there was no dispute regarding the fact of exports and IGST payment. Relying on its earlier ruling in Amit Cotton Industries v. Principal Commissioner of Customs (2019) 107 taxmann.com 167 (Gujarat), the Court held that refund can only be withheld in limited circumstances under Rule 96(4) of the CGST Rules, and clerical or technical mistakes in GST returns cannot deprive a genuine exporter of refund.

The Court further observed that circulars or system limitations cannot override statutory provisions, and authorities are bound to process refund claims in accordance with Section 54 of the CGST Act and Rule 96 of the GST Rules. The respondent’s stand that the system auto-generated nil refund was rejected as unsustainable. Consequently, the Court directed the authorities to immediately sanction the refund of IGST with statutory interest from the date of shipping bills until the date of actual refund.

Thus, the writ petition was allowed, reiterating that genuine exporters cannot be denied IGST refunds on account of clerical errors or system-generated mismatches.

Sekar Stores v. State Tax Officer & Others, WP No. 29685 of 2025, (Madras High Court)In present facts of the case, a voluntary request was made by the petitioner for cancellation of GST Registration which was cancelled on 11.04.2022. Subsequent to the said cancellation, all notices/communications were uploaded in the GST common portal. Since the petitioner was not aware of the said notices, they failed to file their reply within the time. Under these circumstances, the impugned order came to be passed by the respondent without providing any opportunity of personal hearing to the petitioner.

The Hon’ble High Court held that that the impugned assessment order came to be passed without affording any opportunity of personal hearing to the petitioner, confirming the proposals contained in the show cause notice. It was further observed that when there was no response from the tax payer to the notice sent through a particular mode, the Officer who is issuing notices should strictly explore the possibilities of sending notices through some other mode as prescribed in Section 169(1) of the Act, preferably by way of RPAD, which would ultimately achieve the object of the GST Act. Therefore, it was observed that there was lack of opportunities being provided to serve the notices/orders etc., effectively to the petitioner.

Consequently, the impugned order was set aside and the matter was remanded to the respondent for fresh consideration on condition that the petitioner shall pay 10% of disputed tax amount to the respondent.

GST NEWS & UPDATES

Goods Industry – Changes in Rate Notifications with effect from 22.09.2025

HSN Code	Description	Old Rate of Tax(%) till 21/09/2025	New Rate of Tax as per Notification No. 9/2025-Central Tax (Rate) dated 17.09.2025 effective from 22.09.2025	New Rate of Tax as per Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025 effective from 22.09.2025
*FOOD INDUTRY*
12091000	SEEDS, FRUIT AND SPORES, OF A KIND USED FOR SOWING SUGAR BEET SEED	5%	NA	Exempted
15159099	OTHER FIXED VEGETABLE FATS AND OILS (INCLUDING JOJOBA OIL) AND THEIR FRACTIONS, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED OTHER : OTHER : OTHER	5%	5%	NA
11010000	WHEAT FLOUR AND MAIDA	5%	NA	Exempted
17019910	SUGAR (Only Loose Sugar)	18%	NA	Exempted
0405	BUTTER	12%	5%	NA
0401	MILK AND CREAM	5%	NA	Exempted
0407	EGGS	Exempted	NA	Exempted
2102	YEAST	18%	5%	NA
2102	BAKING POWDER	18%	5%	NA
1806	CHOCOLATE AND COCOA PREPARATIONS	18%	5%	NA
1805	COCOA POWDER, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER	18%	5%	NA
8202	SHELLED ALMOND	18%	18%	NA
8202	SHELLED WALNUTS	18%	18%	NA
0801	CASHEW NUTS	18%	5%	NA
0804	DATES	18%	NA	Exempted
0809	APRICOTS	18%	NA	Exempted
0806	RAISINS	18%	5%
481910	BOXES, CARTONS, CASES, BAGS, AND OTHER PACKING CONTAINERS, OF PAPER, PAPERBOARD, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBERS; BOX FILES, LETTER TRAYS, AND SIMILAR ARTICLES, OF PAPER OR PAPERBOARD OF A KIND USED IN OFFICES, SHOPS	12%	5%	NA
4808	CORRUGATED PAPER OR PAPER BOARD (WITH OR WITHOUT GLUED FLAT SURFACE SHEETS), WHETHER OR NOT PERFORATED, IN ROLLS OR SHEETS	12%	18%	NA
1905	PIZZA BREAD	5%	NA	Exempted
1905 or 2106	KHAKHRA, CHAPATHI OR ROTI	5%	NA	Exempted
1905 90 30	EXTRUDED OR EXPANDED PRODUCTS, SAVOURY OR SALTED (OTHER THAN COOKED SNACK PELLETS, BY WHATEVER NAME CALLED, MANUFACTURE PROCESS OF EXTRUSION)	5%	NA	Exempted
1905	PASTRY, CAKES, BISCUITS AND OTHER BAKERS’ WARES, WHETHER OR NCOCOA; COMMUNION WAFERS, EMPTY CACHETS OF A KIND PHARMACEUTICAL USE, SEALING WAFERS, RICE PAPER AND SIMILAR PRODUCT	18%	5%	NA
MINERAL FUELS, MATERIAL OILS SECTOR
271012	Light Oils and Preparation	18%	5%
*Chemical Industry*
28011000	FLUORINE, CHLORINE, BROMINE AND IODINE – CHLORINE	12%	5%	NA
28030010	CARBON (CARBON BLACKS AND OTHER FORMS OF CARBON NOT ELSEWHERE SPECIFIED OR INCLUDED) – CARBON (CARBON BLACKS AND OTHER FORMS OF CARBON NOT ELSEWHERE SPECIFIED OR INCLUDED) : CARBON BLACKS	18%	5%	NA
28051100	ALKALI OR ALKALINE-EARTH METALS; RARE-EARTH METALS, SCANDIUM AND YTTRIUM, WHETHER OR NOT INTERMIXED OR INTERALLOYED; MERCURY – ALKALI OR ALKALINE-EARTH METALS : SODIUM	18%	5%	NA
28061000	HYDROGEN CHLORIDE (HYDROCHLORIC ACID); CHLOROSULPHURIC ACID – HYDROGEN CHLORIDE (HYDROCHLORIC ACID)	18%	5%	NA
28070010	SULPHURIC ACID; OLEUM SULPHURIC ACID; OLEUM : SULPHURIC ACID	18%	5%	NA
28080010	NITRIC ACID; SULPHONITRIC ACIDS – NITRIC ACID; SULPHONITRIC ACIDS : NITRIC ACID	18%	5%	NA
28131000	SULPHIDES OF NON-METALS; COMMERCIAL PHOSPHORUS TRISULPHIDE -CARBON DISULPHIDE	18%	5%	NA
28142000	AMMONIA, ANHYDROUS OR IN AQUEOUS SOLUTION – AMMONIA IN AQUEOUS SOLUTION	18%	5%	NA
28151190	SODIUM HYDROXIDE (CAUSTIC SODA); POTASSIUM HYDROXIDE (CAUSTIC POTASH); PEROXIDES OF SODIUM OR POTASSIUM – SODIUM HYDROXIDE (CAUSTIC SODA) : – SOLID : OTHER	18%	5%	NA
28211010	IRON OXIDES AND HYDROXIDES; EARTH COLOURS CONTAINING 70% OR MORE BY WEIGHT OF COMBINED IRON EVALUATED AS Fe2O3 – IRON OXIDES AND HYDROXIDES : IRON OXIDES	18%	5%	NA
28271000	CHLORIDES, CHLORIDE OXIDES AND CHLORIDE HYDROXIDES; BROMIDES AND BROMIDE OXIDES; IODIDES AND IODIDE OXIDES – AMMONIUM CHLORIDE	18%	5%	NA
28273100	CHLORIDES, CHLORIDE OXIDES AND CHLORIDE HYDROXIDES; BROMIDES AND BROMIDE OXIDES; IODIDES AND IODIDE OXIDES – OTHER CHLORIDES : OF MAGNESIUM	18%	5%	NA
28273930	CHLORIDES, CHLORIDE OXIDES AND CHLORIDE HYDROXIDES; BROMIDES AND BROMIDE OXIDES; IODIDES AND IODIDE OXIDES – OTHER CHLORIDES : – OTHER : STRONTIUM CHLORIDE	18%	5%	NA
28273990	CHLORIDES, CHLORIDE OXIDES AND CHLORIDE HYDROXIDES; BROMIDES AND BROMIDE OXIDES; IODIDES AND IODIDE OXIDES – OTHER CHLORIDES : – OTHER : OTHER	18%	5%	NA
28276010	CHLORIDES, CHLORIDE OXIDES AND CHLORIDE HYDROXIDES; BROMIDES AND BROMIDE OXIDES; IODIDES AND IODIDE OXIDES – IODIDES AND IODIDE OXIDES – POTASSIUM IODIDE	18%	5%	NA
28301000	SULPHIDES; POLYSULPHIDES, WHETHER OR NOT CHEMICALLY DEFINED – SODIUM SULPHIDES	18%	5%	NA
28321090	SULPHITES; THIOSULPHATES – SODIUM SULPHITES : OTHER	18%	5%	NA
28331990	SULPHATES; ALUMS; PEROXOSULPHATES (PERSULPHATES) – SODIUM SULPHATES : – OTHER : OTHER	18%	5%	NA
28332210	SULPHATES; ALUMS; PEROXOSULPHATES (PERSULPHATES) – OTHER SULPHATES : – OF ALUMINIUM : ALUMINIUM SULPHATE (IRON FREE)	18%	5%	NA
28332910	SULPHATES; ALUMS; PEROXOSULPHATES (PERSULPHATES) – OTHER SULPHATES : – OTHER : FERROUS SULPHATE	18%	5%	NA
28332990	SULPHATES; ALUMS; PEROXOSULPHATES (PERSULPHATES) – OTHER SULPHATES : – OTHER : OTHER	18%	5%	NA
28342990	NITRITES; NITRATES – NITRATES: – OTHER : OTHER	18%	5%	NA
28362090	CARBONATES; PEROXOCARBONATES (PERCARBONATES); COMMERCIAL AMMONIUM CARBONATE CONTAINING AMMONIUM CARBAMATE – DISODIUM CARBONATE : OTHER	18%	5%	NA
28369990	CARBONATES; PEROXOCARBONATES (PERCARBONATES); COMMERCIAL AMMONIUM CARBONATE CONTAINING AMMONIUM CARBAMATE – OTHER : – OTHER : OTHER	18%	5%	NA
28401100	BORATES; PEROXOBORATES (PERBORATES) – DISODIUM TETRABORATE (REFINED BORAX) : ANHYDROUS	18%	5%	NA
28417090	SALTS OF OXOMETALLIC OR PEROXOMETALLIC ACIDS – MOLYBDATES : OTHER	18%	5%	NA
28429090	OTHER SALTS OF INORGANIC ACIDS OR PEROXOACIDS, (INCLUDING ALUMINOSILICATES, WHETHER OR NOT CHEMICALLY DEFINED), OTHER THAN AZIDES – OTHER : OTHER	18%	5%	NA
28432100	COLLOIDAL PRECIOUS METALS; INORGANIC OR ORGANIC COMPOUNDS OF PRECIOUS METALS, WHETHER OR NOT CHEMICALLY DEFINED; AMALGAMS OF PRECIOUS METALS – SILVER COMPOUNDS : SILVER NITRATE	18%	5%	NA
28461090	COMPOUNDS, INORGANIC OR ORGANIC, OF RARE-EARTH METALS, OF YTTRIUM OR OF SCANDIUM OR OF MIXTURES OF THESE METALS – CERIUM COMPOUNDS : OTHER	18%	5%	NA
INORGANIC CHEMICALS SECTOR
28043000	HYDROGEN, RARE GASES AND OTHER NON-METALS – NITROGEN	18%	5%	NA
EDUCATIONAL/STATIONARY SECTOR
49051000	MAPS AND HYDROGRAPHIC OR SIMILAR CHARTS OF ALL KINDS, INCLUDING ATLASES, WALL MAPS, TOPOGRAPHICAL PLANS AND GLOBES, PRINTED GLOBES	12%	NA	Exempted
49059990	MAPS AND HYDROGRAPHIC OR SIMILAR CHARTS OF ALL KINDS, INCLUDING ATLASES, WALL MAPS, TOPOGRAPHICAL PLANS AND GLOBES, PRINTED – OTHER : – OTHER: OTHER	12%	NA	Exempted
TOYS, GAMES AND SPORTS SECTOR
95030010	TRICYCLES, SCOOTERS, PEDAL CARS AND SIMILAR WHEELED TOYS; DOLLS CARRIAGES; DOLLS; OTHER TOYS; REDUCED-SIZE (SCALE) MODELS AND SIMILAR RECREATIONAL MODELS, WORKING OR NOT; PUZZLES OF ALL KINDS – TRICYCLES, SCOOTERS, PEDAL CARS AND SIMILAR WHEELED TOYS; DOLLS` CARRIAGES ; DOLLS` OTHER TOYS; REDUCED-SIZE (SCALE) MODELS AND SIMILAR RECREATIONAL MODELS, WORKING OR NOT; PUZZLES OF ALL KINDS — OF WOOD	12%	5%	NA
MACHINERY AND MECHANICAL APPLIANCES SECTOR
84158310	SPLIT AIR-CONDITIONER TWO TONNES AND ABOVE	28%	18%	NA
84602100	MACHINE-TOOLS FOR DEBURRING, SHARPENING, GRINDING, HONING, LAPPING, POLISHING OR OTHERWISE FINISHING METAL, OR CERMETS BY MEANS OF GRINDING STONES, ABRASIVES OR POLISHING PRODUCTS, OTHER THAN GEAR CUTTING, GEAR GRINDING OR GEAR FINISHING MACHINES OF HEADING 8461 – OTHER GRINDING MACHINES, IN WHICH THE POSITIONING IN ANY ONE AXIS CAN BE SET UP TO AN ACCURACY OF AT LEAST 0.01 MM: NUMERICALLY CONTROLLED	18%	18%	NA
MACHINERY AND MECHANICAL APPLIANCES SECTOR
84099990	PARTS SUITABLE FOR USE SOLELY OR PRINCIPALLY WITH THE ENGINES OF HEADING 8407 OR 8408 – OTHER : OTHER : OTHER	28%	18%	NA
ELECTRICAL/ ELECTRONIC MACHINERY & EQUIPMENT SECTOR
85078000	ELECTRIC ACCUMULATORS, INCLUDING SEPARATORS THEREFOR, WHETHER OR NOT RECTANGULAR (INCLUDING SQUARE) OTHER ACCUMULATORS	28%	18%	NA
VEHICLES OTHER THAN RAILWAY SECTOR
8710	TANKS AND OTHER ARMOURED FIGHTING VEHICLES, MOTORISED, WHETHER OR NOT FITTED WITH WEAPONS, AND PARTS OF SUCH VEHICLES	18%	5%	NA
8710	TANKS AND OTHER ARMOURED FIGHTING VEHICLES, MOTORISED, WHETHER OR NOT FITTED WITH WEAPONS, AND PARTS OF SUCH VEHICLES	12%	5%	NA
87081090	PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 BUMPERS AND PARTS THEREOF OTHER	28%	18%	NA
87089900	PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 – OTHER PARTS AND ACCESSORIES — OTHER	28%	18%	NA
Photographic, Medical, Measuring Instruments Sector
90192010	20 MECHANO-THERAPY APPLIANCES; MASSAGE APPARATUS; PSYCHOLOGICAL APTITUDE-TESTING APPARATUS; OZONE THERAPY, OXYGEN THERAPY, AEROSOL THERAPY, ARTIFICIAL RESPIRATION OR OTHER THERAPEUTIC RESPIRATION APPARATUS- OZONE THERAPY, OXYGEN THERAPY, AEROSOL THERAPY, ARTIFICIAL RESPIRATION OR OTHER THERAPEUTIC RESPIRATION APPARATUS: OXYGEN THERAPY APPARATUS	12%	5%	NA
90181100	INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES, INCLUDING SCIENTIGRAPHIC APPARATUS, OTHER ELECTROMEDICAL APPARATUS AND SIGHT-TESTING INSTRUMENTS – ELECTRO-DIAGNOSTIC APPARATUS (INCLUDING APPARATUS FOR FUNCTIONAL EXPLORATORY EXAMINATIONS OR FOR CHECKING PHYSIOLOGICAL PARAMETERS): ELECTRO-CARDIOGRAPHS	12%	5%	NA
90181100	INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES, INCLUDING SCIENTIGRAPHIC APPARATUS, OTHER ELECTROMEDICAL APPARATUS AND SIGHT-TESTING INSTRUMENTS – ELECTRO-DIAGNOSTIC APPARATUS (INCLUDING APPARATUS FOR FUNCTIONAL EXPLORATORY EXAMINATIONS OR FOR CHECKING PHYSIOLOGICAL PARAMETERS): ELECTRO-CARDIOGRAPHS	12%	5%	NA
90181100	INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES, INCLUDING SCIENTIGRAPHIC APPARATUS, OTHER ELECTROMEDICAL APPARATUS AND SIGHT-TESTING INSTRUMENTS – ELECTRO-DIAGNOSTIC APPARATUS (INCLUDING APPARATUS FOR FUNCTIONAL EXPLORATORY EXAMINATIONS OR FOR CHECKING PHYSIOLOGICAL PARAMETERS): ELECTRO-CARDIOGRAPHS	12%	5%	NA

SL NOTE:

1. In case where the item has been exempted with effect from 22^nd September 2025 and earlier such item was taxable till 21^st September 2025, then No ITC refund would be available on stock of such goods as available on 21^st September 2025. Further on outward supply of such items on 22^nd September 2025 or any date after 21^st September, the ITC on such exempted goods would need to be reversed under Rule 42 or 43.

2. In cases where the rate of tax has reduced from higher rate to a lower rate then balance of ITC in Electronic Credit Ledger on stock of such goods as available on 21^st September 2025 would not be treated as Inverted Duty Structure and no refund would be given to such taxpayers. Such ITC can only be adjusted in payment of outward tax liability by such taxpayers.

3. Wherever the rate of tax has been reduced on the goods or services or such goods have been exempted the taxpayers dealing in such goods or service must calculate their pricing / MRP of goods or services considering the restrictions in refund of such balance ITC on stock as well as reduction of GST Rate on raw materials/purchases as well as reduction of tax rate on outward supply / sale of such goods or services.

Exempted Goods & Services and changes with effect from 22.09.2025

S.No.	Chapter Section or Heading	Description of Service	New Rate as per Notification No. 16/2025 (Rate) dated 17.09.2025	New Conditions/ Amended Conditions as per Notification No. 16/2025 (Rate) dated 17.09.2025
18	Heading 9965	Services by way of transportation of goods— (a) by road except the services of— (i) a goods transportation agency; (ii) a courier agency; (b) by inland waterways. “Explanation. – Nothing contained in this entry shall apply to: (i) local delivery services provided by an Electronic Commerce Operator; or (ii) local delivery services provided through an Electronic Commerce Operator.”;	Nil	Nil
36C	Heading 9971	Services of life insurance business provided by an insurer to the insured, where the insured is not a group. [Please refer to clause (zfb) in para 2] Explanation: For the removal of doubts, it is hereby clarified that: a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance.	Nil	Nil
36D	Heading 9971	Services of health insurance business provided by an insurer to the insured, where the insured is not a group. [Please refer to clause (zfb) in para 2] Explanation: For the removal of doubts, it is hereby clarified that: a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance.	Nil	Nil
36 E	Heading 9971	Reinsurance of the insurance services specified in serial numbers 36C or 36D.
*NOTE- Changes in Definition of Certain Services*
OLD		NEW- w.e.f. 22/09/2025
(ze)”goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called		“(ze) ‘goods transport agency’ means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called, but does not include (i) an electronic commerce operator by whom the services of local delivery are provided, (ii) an electronic commerce operator through whom the services of local delivery are provided”
		after clause (zfa), the following clause shall be inserted, namely:- “(zfb) For the purposes of entries at serial numbers 36C and 36D in the table above, ‘group’ means group of persons who join together with a commonality of purpose or for engaging in a common economic activity, other than availing insurance, and includes: a. Employer– employee groups, where an employer-employee relationship exists between the master/group policyholder and the members of the group in accordance with the applicable laws; b. Non employer–employee groups, where a clearly evident relationship exists between the master/group policyholder and the members of the group, for services/ activities other than insurance.”;
		after clause (zg), the following clause shall be inserted, namely: – “(zga) ‘health insurance business’ means the effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in-patient or out-patient, travel cover and personal accident cover;”

Highlights on Recommendations of the 56th Meeting of the GST Council held at New Delhi on 3^rd September, 2025

Measure	Change Proposed	Benefit
Risk-based Provisional Refunds (Zero-rated supplies)	90% provisional refund sanctioned based on system risk evaluation, except for notified categories.	Faster refunds for exporters and SEZ suppliers.
Refunds for Inverted Duty Structure (IDS)	90% provisional refund extended to IDS cases; CBIC to issue instructions pending law amendment.	Timely refund relief for businesses facing IDS-related working capital blockages.
Refunds for Low-Value Export Consignments	Amendment to remove threshold limit for export refunds, helping small exporters via courier/post.	Boost to small exporters and MSMEs.
Simplified GST Registration (Low-Risk Businesses)	Optional scheme with automated registration within 3 working days for low-risk applicants and those with monthly B2B supplies below ₹2.5 lakh.	Simpler and faster registration for ~96% new applicants.
Simplified Registration for Small E-Commerce Suppliers	Special simplified GST registration mechanism for small suppliers selling via e-commerce across multiple states.	Ease of compliance and better participation in e-commerce trade.
Amendment in Place of Supply (Intermediary Services)	Omission of Sec. 13(8)(b) of IGST Act; place of supply for intermediaries to be recipient’s location (Sec. 13(2)).	Indian service exporters gain export benefits.
Post-Sale Discount Reforms	Section 15(3)(b)(i) omitted; discounts allowed via GST credit notes with ITC reversal. Clarifications to be issued on ITC, dealer discounts, and promotions.	Reduced disputes, clarity on ITC, and smoother post-sale discount adjustments.
RSP-based Valuation for Tobacco Products	Shift to retail sale price (RSP)-based valuation for pan masala, gutkha, chewing tobacco, zarda, scented/unmanufactured tobacco, and cigarettes.	Uniform taxation and better compliance in tobacco sector.

Circular No. 251/08/2025 – GST dated 12^th September 2025

Input Tax Credit on Financial/Commercial Credit Notes

When a supplier issues a financial or commercial credit note to a recipient, the recipient is still entitled to the full Input Tax Credit (ITC). This is because the original transaction value and the corresponding tax charged are not reduced by the issuance of these notes. Therefore, the recipient is not required to reverse the ITC attributed to the discount.

Post-Sale Discounts from Manufacturer to Dealer

· Discounts for Competitive Pricing: When a manufacturer provides a post-sale discount to a dealer to help with competitive pricing and boost sales, this is not considered a “consideration” for an inducement to supply goods to an end customer. The manufacturer-dealer relationship is on a principal-to-principal basis, and the discount simply reduces the sale price of the goods.

· Discounts with an Agreement: However, if a manufacturer has an existing agreement with an end customer to sell goods at a discounted price, and the manufacturer issues a commercial or financial credit note to the dealer to enable this, the discount is considered part of the overall consideration. This is seen as an inducement for the dealer’s supply of goods to the end customer.

Discounts as Consideration for Promotional Activities

· No Separate Service: Generally, post-sale discounts given by manufacturers to dealers are not treated as a consideration for a separate service, such as promotional activities. The circular clarifies that any promotional activities undertaken by dealers primarily serve to boost their own sales and revenue, and the discount is just a reduction in the sale price.

· GST Levied on Specific Services: GST would be leviable if the dealer undertakes specific, distinct services for the manufacturer, such as advertising campaigns or co-branding, and these services are explicitly defined in an agreement with a clearly stated consideration. In this case, the dealer is providing a separate, chargeable service to the supplier.

DUE DATES – GST COMPLIANCES IN OCTOBER 2025

Monthly

Quarterly

Other Due Dates

GSTR-3B (Aug, 2025)

Sep 20th, 2025

GSTR-3B (Jul-Sep, 2025)

Oct 22nd, 24th, 2025

GSTR-5 (Aug, 2025)

Sep 13th, 2025

GSTR-5A (Aug, 2025)

Sep 20th, 2025

GSTR-1 (Aug 2025)

Sep 11th, 2025

GSTR-1 (Jul-Sep, 2025)

Oct 13th, 2025

GSTR-6 (Aug, 2025)

Sep 13th, 2025

GSTR-7 (Aug, 2025)

Sep 10th, 2025

IFF (Optional) (Aug,2025)

Sep 13th, 2025

CMP-08 (Jul-Sep, 2025)

Oct 18th, 2025

GSTR-8 (Aug, 2025)

Sep 10th, 2025

RFD-10

2 years from the last day of the quarter in which supply was received

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Issue No. September/2025/01