10/2025- Integrated Tax (Rate) — Seeks to supersede Notification No. 2/2017- -Integrated Tax (Rate) dated 28.06.2017.
Summary
Notification 10/2025- Integrated Tax (Rate), issued by the CBIC on September 17, 2025, is essentially a comprehensive update to the existing GST rates for goods and services supplied inter-state (meaning across different states within India). Think of it as replacing the old price list (Notification 2/2017) with a brand new one. It completely supersedes the earlier notification from 2017.
This notification primarily affects businesses engaged in inter-state supply of goods and services. It dictates the exact GST rates applicable to various categories of goods and services when supplied from one state to another. Affected businesses need to carefully review this notification to identify the correct GST rate for their specific products and services to ensure accurate tax compliance.
While the notification itself is effective immediately from September 17, 2025, businesses must meticulously update their accounting systems and invoices to reflect the new rates. It is crucial to ensure correct invoicing and reporting for all inter-state transactions from this date onwards. Failure to apply the correct rates may lead to penalties and scrutiny from tax authorities. The implication is clear: prompt and thorough compliance is essential for all businesses involved in inter-state trade.
Key Changes
| Change | Impact |
|---|---|
| Supersedes Notification No. 2/2017-Integrated Tax (Rate) dated 28.06.2017 | All provisions and rates specified in Notification No. 2/2017-Integrated Tax (Rate) are no longer in effect and are replaced by the new notification. |
| Potentially introduces new or revised IGST rates for specific goods and services | Businesses need to carefully review the new notification to identify any changes in IGST rates applicable to their supplies, as this could affect pricing and tax liability. |
| May amend conditions or exemptions related to IGST | Existing exemptions or specific conditions for IGST applicability could be altered. Businesses should assess if their current practices comply with the updated conditions. |
| Could introduce new definitions or clarifications related to goods or services | Changes in definitions or interpretations might affect the classification of goods or services and, consequently, the applicable IGST rate. Careful review of the definitions is necessary. |