The CBIC has issued Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, to give effect to the recommendation relating exemption on various goods , providing relief to individuals, common man, aspirational middle class as discussed by the GST Council in its 56^th GST Council meeting held on 03^rd September, 2025. The Notification includes two Annexures i.e. Annexure I: List of drugs or medicines on which complete exemption has been specified and Annexure II: List of indigenous handmade musical instruments on which complete exemption has been specified.

New Exemption on Goods – vide NN. 10/2025 – Central Tax (Rate) w.e.f. 22^nd September, 2025

A. Food Items (details as mentioned in the notification)

• • • Ultra-High Temperature (UHT) milk
    • Chena or paneer, pre-packaged and labelled
    • Pizza bread
    • Khakhra, chapathi or roti
    • Paratha, parotta and other Indian breads by any name called

B. Health Sector (details as mentioned in the notification)

• • • 33 specified life-saving drugs including Onasemnogene abeparvovec, Daratumumab, Risdiplam and others

C. Education Sector (details as mentioned in the notification)

• • • Erasers
    • Pencil sharpeners, pencils, maps and educational notebooks, graph book, & laboratory note book and notebooks.

D. Paper Sector (details as mentioned in the notification)

• • • Uncoated paper for exercise books, graph books, lab notebooks

In Addition to this the Notification also explained the expressions as under, –

(i) “unit container” means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a pre-determined quantity or number, which is indicated on such package;

(ii) “pre-packaged and labelled” means all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ―pre-packed as defined in clause (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder;

(iii) “tariff item” “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); ―Government entity‖ shall mean an authority or a board or any other body including a society, trust, corporation, which is-
(a) set up by an Act of Parliament or State Legislature; or
(b) established by any Government,

with 90 percent or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State government, Union territory or a local authority;

(b) the rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

The Complete Central Tax Notification can be accessed at https://taxo.online/wp-content/uploads/2025/09/NN-10-2025_CT_R.pdf