🧾 GST September 2025 Update: Latest HSN/SAC Codes & New GST Rates Effective 22nd September
📌 Introduction
The 56th GST Council Meeting (September 2025) has brought major changes in GST rates, exemptions, and reporting requirements. These changes are effective from 22nd September 2025 and directly impact businesses, traders, manufacturers, service providers, and even startups.
The update includes:
✅ Revised GST rates on several essential and industrial goods
✅ New exemptions for food, education & healthcare products
✅ Mandatory HSN/SAC reporting (Phase-3) in GST Returns
✅ Official HSN/SAC Excel master file for taxpayers
👉 If you are a GST-registered business, this guide will help you download the official HSN/SAC master Excel, understand the new notifications, and update your billing/accounting systems.
🔗 Download Official HSN/SAC Master
📥 HSN/SAC Master Excel (GST Portal Official Link):
Download from GST Portal
This file contains:
- All Goods & Services codes (HSN & SAC)
- UQC (Units of Quantity Codes)
- GST Rate mappings
- Searchable directory for taxpayers
(You must open via GST Portal → “Search HSN/SAC Tax Rates” → “Download HSN Directory in Excel Format”)
📰 CBIC Notification – September 17, 2025
The Central Board of Indirect Taxes & Customs (CBIC) issued multiple notifications on 17-09-2025 to implement the GST Council decisions.
🔗 Official CBIC Notification (PDF):
Notification 10/2025 – Central Tax (Rate)
This notification:
- Grants exemption to selected essential goods
- Revises rates of food, textile, EVs, medicines, and educational goods
- Aligns HSN codes with GST slabs
📊 Major GST Rate Changes (Effective 22 Sept 2025)
| 🆔 HSN Code | 📦 Description | ⏮️ Old Rate | ⏭️ New Rate | 📝 Remarks |
|---|---|---|---|---|
| 0401 | UHT Milk | 5% | Nil | Newly exempted essential |
| 0406 | Pre-packaged Paneer | 5% | Nil | Exempted food item |
| 1701 / 1702 | Sugar & related items | 12% | 5% | Rate reduction |
| 1901 | Infant food & cereals | 12% | 5% | Relief for families |
| 5406 / 5407 | Man-made fibres & yarn | 18% | 12% | Textile sector boost |
| 8703 | Electric Vehicles | 18% | 5% | EV adoption push |
| 4901 | Educational stationery, maps | 12% | Nil | Fully exempt |
| Medicines (life-saving) | Various | 5% | Nil | Healthcare relief |
💡 Note: This is only a highlight list. For the full list of changes, refer to the CBIC Notification PDF or extract details from the Excel “Changed Items” sheet.
🧮 How Businesses Should Apply New HSN/GST
1️⃣ Update Invoices & Billing Systems
- Use correct HSN/SAC codes from the Master Excel.
- Apply new GST rates effective 22-Sep-2025.
- Exempt items must be billed with 0% GST / Exempt supply tag.
2️⃣ GST Returns (GSTR-1, GSTR-3B)
- In Table-12 of GSTR-1, you must now report HSN-wise summary with accuracy.
- Phase-3 HSN Reporting (May 2025 advisory) mandates dropdown-based selection — reducing manual errors.
3️⃣ Accounting & ERP Updates
- Import the new HSN Excel into Tally / SAP / Busy / Zoho Books.
- Map old vs new rates in your product master.
- For exempt goods, mark them as “Non-Taxable”.
4️⃣ Inventory & Pricing Adjustments
- If your products have reduced rates → adjust MRP downward if required.
- If your inputs had higher GST earlier → recalculate costing & ITC.
⚠️ Mistakes to Avoid
🚫 Using old GST rates in invoices after 22 Sept 2025.
🚫 Filing GSTR-1 without updated HSN codes.
🚫 Confusing Nil-rated and Exempt supplies (different ITC rules).
🚫 Forgetting to update ERP/accounting software with new codes.
🧑💼 Who Benefits from This Update?
- Consumers → lower prices on food, education & healthcare items.
- Manufacturers → relief in textiles, yarn, and EV sector.
- Startups & SMEs → simpler compliance via Excel directory + dropdown HSN reporting.
- Exporters → clarity on HSN codes ensures smoother customs clearance.
📥 Resources & Downloads
🔗 HSN/SAC Master Excel (GST Portal):
Click to Download
🔗 CBIC Notification 10/2025 (PDF):
Click to Read
🔗 GST Council 56th Meeting Press Release:
View PDF
✅ Conclusion
The GST updates of September 2025 are a big step toward easing the tax burden on essentials, promoting sustainable sectors like EVs, and aligning taxation with consumer welfare.
As a business:
- Download the HSN/SAC Master Excel
- Cross-check your items with the Changed HSN/Rate list
- Update your invoices, ERP & GST returns immediately
Staying compliant today means avoiding penalties tomorrow.
👉 Ready to download the updated files? Get the HSN/SAC Master Excel & CBIC Notification PDF today!