This CBIC notification, No. 02/2026-Central Tax (Rate), dated October 27, 2026, amends the principal notification No. 09/2025-Central Tax (Rate) to revise GST rates and classifications for specific goods.
Key Statutory Clarifications & Analysis
Point 1
Issued under the powers conferred by sections 9(1) and 15(5) of the CGST Act, 2017, and based on the recommendations of the GST Council, the amendments primarily impact the taxation of fertilisers and retreaded tyres.
Point 2
The key changes include a clarification for S.No. 237 in Schedule I (2.5% GST) to explicitly include 'sea-weed extract based bio-stimulants' within the scope of pre-packaged and labelled animal or vegetable/organic fertilisers.
3. 'retreaded tractor tyres'
Are now specifically inserted under a new S.No. 272A in Schedule I, attracting a 2.5% GST rate.
4. Concurrently
S.No. 138 in Schedule II (9% GST) is amended to exclude 'retreaded tractor tyres,' ensuring they are not taxed at the higher rate applicable to other retreaded or used pneumatic tyres.
5. Applicability & Compliance Framework
These changes are effective from November 1, 2026, providing clarity and potential tax relief for businesses dealing in these specific goods.
Procedural Changes & Compliance Impact
- S.No. 237 in Schedule I (2.5% GST) now explicitly includes 'sea-weed extract based bio-stimulants, as registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985' within 'All goods i.e. animal or vegetable fertilisers or organic fertilisers pre-packaged and labelled'.: Clarifies the GST rate for specific bio-stimulants, ensuring they are taxed at 2.5% if pre-packaged and labelled, reducing ambiguity for manufacturers and suppliers of these products.
- A new S.No. 272A is inserted in Schedule I (2.5% GST) for 'Retreaded tractor tyres' under HSN 4012.: Reduces the GST rate on retreaded tractor tyres from 9% to 2.5%, making them more affordable for the agricultural sector and potentially boosting the retreading industry for these specific tyres.
- S.No. 138 in Schedule II (9% GST) is amended to exclude 'retreaded tractor tyres' from the entry 'Retreaded or used pneumatic tyres of rubber (other than retreaded tractor tyres); solid or cushion tyres, tyre treads and tyre flaps, of rubber'.: Aligns the classification and rate, ensuring that retreaded tractor tyres are not inadvertently taxed at the higher 9% rate, reinforcing the intended 2.5% rate for these goods.