The Ministry of Finance has issued a series of notifications revising the Goods and Services Tax (GST) rates under the Central, Integrated, and Union Territory tax laws, following the recommendations of the GST Council. The amendments, notified on September 17, 2025, will come into effect from September 22, 2025
Under the new changes, the rate under Notification No. 3/2017-Central Tax (Rate) has been substituted with 9 percent, with a corresponding amendment in the Union Territory Tax. For the Integrated Tax, the notified rate has been substituted with 18 percent.
These revisions are aimed at rationalizing the structure and ensuring consistency across the GST regime.
In addition to the rate changes, the government has also amended earlier notifications issued in 2018 and 2025 to align them with the newly issued schedules, providing much-needed clarity and uniformity for taxpayers. Importantly, a major relief has been extended to the handicraft sector through Notification No. 13/2025-Central Tax (Rate) and its corresponding IGST and UTGST amendments, which reduce GST rates on a wide range of handicraft and artisanal products.
The revised rates now stand at 2.5 percent for CGST/UTGST and 5 percent for IGST on items such as handcrafted candles, handbags, wooden carvings, handmade paper, coir products, bamboo and cane furniture, Channapatna toys, Tanjore dolls, handwoven carpets, embroidered shawls, stone carvings, terracotta ware, blue pottery, glass artware, silver filigree, imitation jewellery, and traditional paintings including Mysore and Tanjore art.
These changes are expected to encourage traditional artisans, boost the handicraft sector, and make indigenous goods more affordable for consumers. By lowering the effective GST rate and rationalizing inter-state trade through a uniform IGST of 5 percent on handicrafts, the government has attempted to strike a balance between revenue considerations and cultural promotion.
The notifications also provide legal certainty by updating cross-references in earlier laws, thereby minimizing compliance challenges. All these revised rates and clarifications will be implemented across the country from September 22, 2025.
Notification Details
Notification No. 13/2025-Integrated Tax (Rate)
Date: 17th September, 2025
