The Ministry of Finance has announced significant revisions to Goods and Services Tax (GST) rates while acting on the recommendations of the GST Council, the revised rates will take effect from 22nd September 2025.
The changes impact transportation services, courier and postal services, job work categories, beauty and wellness services, and certain professional and technical services.
The notification also introduces new definitions to clarify the scope of services such as Goods Transport Agency (GTA), Multimodal Transporter, Handicraft Goods, and Recognised Sporting Event.
In transportation, multimodal movement of goods will now be taxed at 2.5% with input tax credit restrictions or 9% without restrictions, while goods carriage rental including fuel will follow a similar dual rate. Postal, courier, and delivery services have been brought under a uniform 9% GST slab, while several job work activities—such as in food products, pharmaceuticals, textiles, and printing—will attract a concessional rate of 2.5%, whereas diamonds have been granted a further reduced rate of 0.75%.
Beauty and wellness services have been rationalized: salon and spa services will attract 5% GST with ITC restrictions, whereas laundry, cleaning, and miscellaneous services will be charged at 9%. Professional, technical, and business services not otherwise specified have also been brought under a uniform 9% slab, raising the effective burden on certain sectors.
Additionally, explanations relating to hotel accommodation services will apply retrospectively from 1st April 2025.
The government expects the revised structure to streamline compliance, minimize disputes, and bring more uniformity across service sectors. However, some industries—particularly courier and professional services—may experience an increased tax outgo.
Sector-Wise GST Rate Changes
| Category | Old CGST Rate | New CGST Rate (w.e.f. 22.09.2025) | Remarks |
| Goods transport by rail (other than Indian Railways) | 6% | 2.5% (with ITC restrictions) OR 9% | Dual option introduced |
| Multimodal transport of goods | 6% | 2.5% (with ITC restrictions) OR 9% | If air mode involved → 9% |
| Renting of goods carriage (fuel cost included) | 6% | 2.5% (with ITC restrictions) OR 9% | Dual rate introduced |
| Postal & Courier services | 6% | 9% | Uniform rate applied |
| Local delivery services (through e-commerce) | Exempt/6% | 9% | Clarified under new entry |
| Job work – Diamonds | 1.5% | 0.75% | Rate reduced |
| Job work – Food, pharma, textiles, printing, hides/skins, handicrafts, umbrellas, bricks | 5% | 2.5% | Rate rationalized |
| Job work – Alcoholic liquor (for human consumption) | 12% | 9% | Rate reduced |
| Other job work services | 12% | 9% | Rationalized |
| Beauty & wellness (salon, spa, fitness) | 5% | 2.5% (with ITC restrictions) | Lower rate but ITC blocked |
| Laundry, cleaning, dyeing & miscellaneous services | 5% | 9% | Higher burden |
| Professional, technical & business services | Varied (6%/12%) | 9% | Unified rate |
Notification Details
Notification No. .15/2025-Central Tax (Rate)
Date: 17th September, 2025
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