Central Government on recommendation of 55th GST Council meeting has issued various notifications pertaining to rate of tax on goods and services. In this article we have complied all these notifications for better understanding of the impact of these notifications.

Sr.No.	Notification no.	Summary
1.	01/2025-Central Tax (Rate) Dated: 16th January, 2025	Changes with respect to Goods- A New Entry No. 98B has been inserted in Schedule I to reduce the GST rate on Fortified Rice Kernels (FRK) classifiable under Heading 1904 from 9%. Therefore, GST rate reduced 5% from 18%. Amendment in the definition of ‘pre-packaged and labelled’- The expression ‘pre-packaged and labelled’ means all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ‘pre-packed’ as defined in clause (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder. This notification shall come into force with immediate effect i.e. 16th January, 2025
2.	02/2025-Central Tax (Rate) Dated: 16th January, 2025	Exemption from GST on certain goods- A New Entry 105A has been inserted in Notification No. 02/2017-Central Tax (Rate) to fully exempt Gene Therapy from GST This notification shall come into force with immediate effect i.e. 16th January, 2025
3.	No.03/2025-Central Tax (Rate) Dated: 16th January, 2025	Rate of tax on certain goods- Amendment has been made in NN. 39/2017-Central Tax (Rate) where Concessional 5% GST rate had been notified on food inputs of food preparations that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions. This notification shall come into force with immediate effect i.e. 16th January, 2025
4.	04/2025-Central Tax (Rate) Dated: 16th January, 2025	Increase in rate of GST on sale of old and used vehicles- Amendment made in Notification No. 8/2018-Central Tax (Rate), to increase the GST rate from 12% to 18% on sale of all old and used vehicles, including EVs other than those specified at 18%. This is to provide a uniform tax rate of 18% which were previously taxed at 12%, including old EVs bracket when resold by businesses. This notification shall come into force with immediate effect i.e. 16th January, 2025
5.	No.05/2025-Central Tax (Rate) Dated: 16th January, 2025	Change in rate of tax on services- New definition of “Specified premises” has been inserted as follows- “(xxxvi) “Specified premises”, for a financial year, means,- Category (a): Premises that provided hotel accommodation in the preceding financial year, where the value of any unit of accommodation exceeded ?7,500 per unit per day or equivalent. Category (b): Premises declared as “specified premises” by a registered person supplying hotel accommodation services. Such declarations must be made between January 1 and March 31 of the preceding financial year. Category (c): Premises declared as “specified premises” by a person applying for GST registration. This declaration must be filed within 15 days of receiving acknowledgment for the registration application. Registered persons must file a declaration to classify premises as “specified premises.” Annexures VII, VIII, and IX are introduced for opt-in and opt-out declarations for such premises. Annexure VII has been inserted For OPT-IN DECLARATION FOR REGISTERED PERSON. Annexure VIII has been inserted – FOR OPT-IN DECLARATION FOR PERSON APPLYING FOR REGISTRATION Annexure IX has been inserted – OPT-OUT DECLARATION For already registered persons- The above declaration shall be filed on or after 1st of January of the preceding Financial Year but not later than 31st of March of the preceding Financial Year. For new taxpayers-The above declaration shall be filed within fifteen days of obtaining acknowledgement for the registration application. This notification will come into effect from the 1st day of April, 2025
6.	No.06/2025-Central Tax (Rate) Dated: 16th January, 2025	Exemption from GST on certain services- Introduces new Entry No. 36B by which “Services of insurance provided by the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act, 1988 (59 of 1988), against contributions made by insurers out of the premiums collected for third party insurance of motor vehicles” will be exempt from GST. 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”. 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 NN. 12/2017-Central Tax (Rate).
7.	07/2025-Central Tax (Rate) Dated: 16th January, 2025	Changes in Reverse charge applicability a) Sponsorship services provided by the body corporates has been brought under Forward Charge Mechanism – Body corporate has been excluded now in RCM Notification. b) And, Serial No. 5AB now excludes persons who have opted for the composition levy from RCM on rent requirements. It means, if composition taxpayers receives service relating to renting of immovable property (commercial) from an unregistered person, it is not required to pay tax under RCM.
8.	No.08/2025-Central Tax (Rate) Dated: 16th January, 2025	Amendment has been made in term ‘Specified premises' to align with clause (xxxvi) of paragraph 4 of Notification No. 11/2017-Central Tax (Rate) as explained in Notification no. 06/2025 (central tax rate) This notification shall come into force with effect from the 1st day of April, 2025.
9.	No.1/2025-Compensation Cess (Rate) Dated: 16th January, 2025	Concessional rate of compensation cess- Compensation cess rate of 0.1% on supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions. The notification exempts the intra-state and inter-state supply of taxable goods from the compensation cess. The exemption applies to the extent the cess exceeds 0.1%. The conditions are similar to Notification No.40/2017–Central Tax (Rate), dated 23rd October 2017 and notification No.41/2017–Integrated Tax (Rate) dated 23rd October 2017 provides concessional rate of tax of 0.05% and 0.1% respectively, on supply of taxable goods (“the said goods”) by a registered supplier to a registered recipient for export (supplies to Merchant exporters), subject to fulfillment of certain conditions specified in said notification. This notification shall come into force with immediate effect i.e. 16.01.2025.

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Summary of Notifications issued to give effect to recommendation of 55th GST council meeting

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