This CBIC Notification No. 02/2026- Integrated Tax (Rate), dated October 27, 2026, amends the principal Notification No. 09/2025- Integrated Tax (Rate) to revise GST rates and classifications for specific goods.
Key Statutory Clarifications & Analysis
1. Applicability & Compliance Framework
Issued under the powers conferred by the IGST Act, 2017 and CGST Act, 2017, based on the recommendations of the GST Council, these changes are effective from November 1, 2026.
2. Classification & Tax Rate Applicability
The key amendments involve a reclassification of certain fertilisers and bio-stimulants, bringing them under the 5% GST bracket with a clarified scope.
3. 'retreaded tractor tyres'
Are specifically moved to the 5% GST rate, while other retreaded or used pneumatic tyres remain at 18%.
4. Applicability & Compliance Framework
These adjustments aim to streamline classification, potentially reduce the tax burden on agricultural inputs, and differentiate tax treatment for specific tyre categories.
5. Applicability & Compliance Framework
Taxpayers dealing in these goods must update their billing systems and ensure compliance with the new classifications and rates from the effective date.
Procedural Changes & Compliance Impact
- Entry for S.No. 237 in Schedule I (5% GST) is substituted to include 'All goods i.e. animal or vegetable fertilisers or organic fertilisers pre-packaged and labelled.' with an explanation clarifying that 'sea-weed extract based bio-stimulants, as registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985' are included.: Clarifies and potentially broadens the scope of fertilisers and bio-stimulants eligible for 5% GST, ensuring that specific seaweed-extract based bio-stimulants are explicitly covered, which could reduce tax liability for manufacturers and distributors of these agricultural inputs.
- A new S. No. 272A is inserted in Schedule I (5% GST) for 'Retreaded tractor tyres' under HSN 4012.: Reduces the GST rate on retreaded tractor tyres from 18% to 5%. This will benefit the agricultural sector by making these essential components more affordable, potentially reducing input costs for farmers and increasing demand for retreaded tractor tyres.
- Entry for S. No. 138 in Schedule II (18% GST) is substituted to read: 'Retreaded or used pneumatic tyres of rubber (other than retreaded tractor tyres); solid or cushion tyres, tyre treads and tyre flaps, of rubber'.: Excludes 'retreaded tractor tyres' from the 18% GST bracket, aligning with their new classification at 5%. This ensures that only other categories of retreaded/used pneumatic tyres and related rubber products continue to be taxed at 18%, providing clear differentiation in tax treatment.