GST Overhaul 2025: Full List of Service Rate Changes

The GST Council has announced the recommended changes in the GST Rates in its 56th Meeting. Currently, there are four GST Slabs: 5%, 12%, 18% and 28%. With the GST Reform, there will be a two-slab structure having GST rates of 5% and 18%. Let us Know About the changes in GST Rates for Services.

HSN Wise Rate Changes

S.No. HSN Code Description of Service From To
1 9954 (i) Composite supply of works contract services involving predominantly earth work (that is constituting more than 75 percent of the value of the works contract) provided to Government 12% with ITC 18% with ITC
(ii) Composite supply of works contract provided by a sub-contractor to the main contractor providing services at (i) above to Government 12% with ITC 18% with ITC
(iii) Composite supply of works contract and associated services, in respect of offshore works contract relating to oil and gas exploration and production in offshore area 12% with ITC 18% with ITC
2 9963 Supply of “hotel accommodation” having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent 12% with ITC 5% without ITC
3 9964 (i) Supply of Air transport of passengers in other than economy class 12% with ITC 18% with ITC
(ii) Supply of Passenger transport by any motor vehicle where fuel cost is included 5% with ITC of input services (in the same line of business) 5% with ITC of input services (in the same line of business)
12% with ITC 18% with ITC
4 9965 (i) Supply of Transport of goods by GTA 5% without ITC (RCM/FCM) 5% without ITC (RCM/FCM)
12% with ITC 18% with ITC
(ii) Supply of transport of goods in containers by rail by any person other than Indian Railways 12% with ITC 5% without ITC
18% with ITC
(iii) Supply of transportation of natural gas, petroleum crude, motor spirit, high speed diesel or ATF through pipeline 5% without ITC 5% without ITC
12% with ITC 18% with ITC
(iv) Supply of Multimodal transport of goods within India 12% with ITC 5%, where no leg of transport is through air, with restricted ITC (i.e. 5% of input services of goods transportation).
18% with ITC
5 9966 (i) Supply of Renting of any motor vehicle (with operator) designed to carry passengers where the cost of fuel is included in consideration 5% with ITC of input services (in the same line of business) 5% with ITC of input services (in the same line of business)
12% with ITC 18% with ITC
 (ii) Supply of Renting of goods carriage (with operator) where fuel cost is included in consideration 12% with ITC 5% with ITC of input services (in the same line of business)
18% with ITC
6 9968 (i) Local delivery services  (This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 996813 – under the Group Postal and Courier Services) 18% with ITC 18% with ITC (no change)
(ii) Supply of local delivery services through Electronic Commerce Operator (ECO) Not currently notified under section 9(5) of the CGST Act
  • Local delivery services to be notified under section 9(5) of the CGST Act in cases where the person supplying such services through electronic commerce operator is not liable for registration under GST.
  • The applicable rate on such services to be 18%.
  • Local delivery services provided by and through ECO to be excluded from the scope of GTA services.
7 9971 Supply of Service of third-party insurance of “goods carriage” 12% with ITC 5% with ITC
8 9973 Leasing or rental services, without operator, of goods which will attract (28%) 40% GST 28% With ITC 40% with ITC
9 9983 Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both; 12% with ITC 18% with ITC
10 9986 Support services to exploration, mining or drilling of petroleum crude or natural gas or both. 12% with ITC 18% with ITC
11 9988 (i) Supply of services by way of job work in relation to umbrella 12% with ITC 5% with ITC
(ii) Supply of job work services or any treatment or process in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @12% 5% 12% with ITC 5% with ITC
(iii) Supply of job work in relation to bricks which attract GST at the rate of 5% 12% with ITC 5% with ITC
(iv) Supply of job-work services in relation goods falling under Chapter 30 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (pharmaceutical products) 12% with ITC 5% with ITC
(v) Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 12% with ITC 5% with ITC
(vi) Supply of job-work not elsewhere covered (residual entry) 12% with ITC 18% with ITC
12 9994 (i) Services by way of treatment of effluents by a Common Effluent Treatment Plant; 12% with ITC 5% with ITC
(ii) Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment. 12% with ITC 5% with ITC
13 9996 (i) Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. 12% with ITC 5% with ITC
(ii) Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL. 28% With ITC 40% with ITC
(iii) Services by a race club for licensing of bookmakers in such club. 28% With ITC 40% with ITC
14 9997 Beauty and physical well-being services falling under group 99972 [This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 9997] 18% with ITC 5% without ITC
15 Any chapter Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods (Corresponding changes in the lottery valuation rules are also being carried out) 28% With ITC 40% with ITC

Services Proposed to be Exempted

S.No. HSN Code Description of Service From To
1 9971 (i) All individual health insurance, along with reinsurance thereof 18% with ITC Exemption
(ii) All individual life insurance, along with reinsurance thereof 18% with ITC Exemption

Sector-Wise Rate Changes

Transportation Sector

S.No.
 Entry From To
1 Supply of Air transport of passengers in other than economy class 12% with ITC 18% with ITC
2 Supply of Passenger transport by any motor vehicle where fuel cost is included 5% with ITC of input services (in the same line of business) 5% with ITC of input services (in the same line of business)
12% with ITC 18% with ITC
3 Supply of transport of goods in containers by rail by any person other than Indian Railways 12% with ITC 5% without ITC
18% with ITC
4 Supply of transportation of natural gas, petroleum crude, motor spirit, high speed diesel or ATF through pipeline 5% without ITC 5% without ITC
12% with ITC 18% with ITC
5 Supply of Transport of goods by GTA  5% without ITC (RCM/FCM) 5% without ITC (RCM/FCM)
12% with ITC 18% with ITC
6 Supply of Renting of any motor vehicle (with operator) of any motor vehicle designed to carry passengers where the cost of fuel is included in consideration  5% with ITC of input services (in the same line of business) 5% with ITC of input services (in the same line of business)
12% with ITC 18% with ITC
7 Supply of Renting of goods carriage (with operator) where fuel cost is included in consideration 12% with ITC 5% with ITC of input services (in the same line of business)
18% with ITC
8 Supply of Multimodal transport of goods within India 12% with ITC 5%, where no leg of transport is through air, with restricted ITC (i.e.  5% of input services of goods transportation).
18% with ITC

Job Work Sector

S.No.
 Entry From To
1 Supply of services by way of job work in relation to umbrella 12% with ITC 5% with ITC
2 Supply of job work services or any treatment or process in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @(12%) 5% 12% with ITC 5% with ITC
3 Supply of job work in relation to bricks which attract GST at the rate of 5% 12% with ITC 5% with ITC
4 Supply of job-work services in relation goods falling under Chapter 30 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) (pharmaceutical products) 12% with ITC 5% with ITC
5 Supply of job-work services in relation to Hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 12% with ITC 5% with ITC
6 Supply of job-work not elsewhere covered (residual entry) 12% with ITC 18% with ITC

Construction Sector

S.No.
 Entry From To
1 Composite supply of works contract and associated services, in respect of offshore works contract relating to oil and gas exploration and production in offshore area 12% with ITC 18% with ITC
2  Composite supply of works contract involving predominantly earth work (that is, constituting more than 75per cent. of the value of the works contract) provided to Government  12% with ITC 18% with ITC
3 Composite supply of works contract provided by a sub-contractor to the main contractor providing services at Sl. No. 2 above to Government 12% with ITC 18% with ITC

Local Delivery Services

S.No.

 Entry From To
1 Local delivery services (This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 996813 – under the Group Postal and Courier Services) 18% with ITC 18% with ITC (no change)
Supply of local delivery services through Electronic Commerce Operator (ECO) Not currently notified under section 9(5) of the CGST Act
  • Rate of GST at 18%. Local delivery services, to be notified under section 9(5) of the CGST Act in cases where the person supplying such services through electronic commerce operator is not liable for registration under GST.
  • The applicable rate on such services to be 18%.
  • Local delivery services provided by and through ECO to be excluded from the scope of GTA services.

Other services

S.No.
 Entry From To
1 Supply of Service of third-party insurance of “goods carriage” 12% with ITC 5% with ITC
2 Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. 12% with ITC 5% with ITC
3 Services by way of treatment of effluents by a Common Effluent Treatment Plant; 12% with ITC 5% with ITC
4 Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment. 12% with ITC 5% with ITC
4 Supply of “hotel accommodation” having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent 12% with ITC 5% without ITC
5 Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both; 12% with ITC 18% with ITC
6 Support services to exploration, mining or drilling of petroleum crude or natural gas or both. 12% with ITC 18% with ITC
7 Beauty and physical well-being services falling under group 99972 [This service is currently taxed at the rate of 18% with ITC as this is covered under SAC 9997] 18% with ITC 5% without ITC

Rates: 28% to 40%

S.No.
 Entry From To
1 Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL. 28% With ITC 40% with ITC
2 Services by a race club for licensing of bookmakers in such club. 28% With ITC 40% with ITC
3 Leasing or rental services, without operator, of goods which will attract (28%) 40% GST 28% With ITC 40% with ITC
4 Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods (Corresponding changes in the lottery valuation rules are also being carried out) 28% With ITC 40% with ITC