HSN wise GST rate changes on services as recommended in 56th GST Council meeting held on 03.09.2025 as follows :-
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Services:
| 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 GSTThe 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% 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% 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 |
Source: Press Release 03.09.2025
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