GST Rate Cuts: Government issues new FAQs clarifying changes on goods, exemptions, handicrafts and cess

The Union Government has released its third set of Frequently Asked Questions (FAQs) on latest Goods and Services Tax (GST) changes, accompanied by a series of new notifications issued on September 17, 2025. According to documents published by the Central Board of Indirect Taxes and Customs (CBIC), the clarifications cover revised Central GST (CGST) rates, exemptions, handicraft items, compensation cess and specific provisions relating to petroleum imports and bricks.

CGST rate changes for goods

The CBIC said that the revised CGST rates on goods have been notified through Notification No. 9/2025-Central Tax (Rate), dated September 17, 2025. This notification has been issued in supersession of Notification No. 1/2017-Central Tax (Rate), which had been in force since June 28, 2017. The new notification consolidates updates from recent Council decisions and is now the operative document for CGST rates on goods.

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Updated list of exempted goods

For goods exempted from CGST, the CBIC has published Notification No. 10/2025-Central Tax (Rate) also dated 17 September 2025. It replaces the earlier Notification No. 2/2017-Central Tax (Rate) of June 28, 2017.

GST rates for handicrafts

The government has issued a fresh notification (13/2025-Central Tax, dated September 17, 2025) to clearly spell out GST rates for handicraft items. Earlier, these were covered under a broader 2018 notification, which often left room for confusion. Officials say the move is meant to bring clarity for lakhs of artisans and small businesses that depend on the sector.

Compensation cess amendment

A separate update (2/2025-Compensation Cess, also dated September 17, 2025) has tweaked the cess applied on luxury and sin goods. This replaces parts of the 2017 notification and brings the levy in line with the GST Council’s recent decisions. The change is expected to simplify how cess is applied and remove doubts over applicable rates.

Petroleum sector imports

On goods imported for petroleum operations, the CBIC said the changes are covered under Notification No. 11/2025-Central Tax (Rate), dated September 17, 2025. The petroleum sector which involves significant imports of specialised equipment and materials often receives sector-specific notifications to ensure tax uniformity.

The government has clarified that GST rates for bricks under the special composition scheme remain unchanged, except in the case of sand lime bricks. This update, issued through Notification No. 14/2025-Central Tax (Rate) on September 17, 2025, provides clarity and stability for small brick manufacturers operating under the scheme. The CBIC said all the latest notifications are available on its official tax information portal: https://taxinformation.cbic.gov.in.