Check before you change your billing: Central tax of 2.5% corresponds to 5% GST overall, and 9% central tax to 18%, because parallel IGST and UTGST amendments were made. This summary follows ICAI’s GST Update 277. Please confirm HSN, rate and ITC conditions in the official notifications.
At a glance
| Notification (27 Oct 2026) | Subject |
|---|---|
| 02/2026-CT(R) | Goods rates: fertilisers and bio-stimulants, retreaded tractor tyres, other retreaded tyres |
| 03/2026-CT(R) | Exemption for psyllium seeds |
| 04/2026-CT(R) | Reverse charge on used cooking oil, plastic and tyre scrap and e-waste |
| 05/2026-CT(R) | “Nominated Agency” definition |
| 06/2026-CT(R) | Service rates: hotels, restaurants, catering, EV transport and rental, delivery services |
| 07/2026-CT(R) | Service exemptions: helicopter, toll, coffee curing, warehousing and more |
| 08/2026-CT(R) | Reverse charge on renting of passenger vehicles: 6% to 9% |
| 09/2026-CT(R) | Delivery services under Section 9(5) |
| 10/2026-CT(R) | Special tax payment procedure for Toll-Operate-Transfer concessionaires |
| 07/2026-IT(R) | IGST exemption: import of services by a shipping company’s establishment in India |
Goods: fertilisers, tyres and psyllium
Notification 02/2026-CT(R) amends the goods rate notification 9/2025-CT(R):
- Fertilisers (2.5%, S.No. 237): The entry now reads “all goods i.e. animal or vegetable fertilisers or organic fertilisers pre-packaged and labelled”. An explanation says it includes seaweed-extract-based bio-stimulants registered under Schedule VI of the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985.
- Retreaded tractor tyres (2.5%, new S.No. 272A): A new entry under heading 4012.
- Other retreaded tyres (9%, S.No. 138 of Schedule II): The entry is substituted to exclude retreaded tractor tyres. Other retreaded or used pneumatic rubber tyres, solid or cushion tyres, tyre treads and tyre flaps stay at 9% central tax.
Notification 03/2026-CT(R) inserts entry 87A in the exemption schedule for psyllium seeds (Isobgul or Isobgol) under tariff item 1211 90 13. Not sure of your product’s classification? Use our HSN and SAC code finder.
Reverse charge on scrap and waste
Notification 04/2026-CT(R) amends Notification 4/2017-CT(R). Supplies of these goods by an unregistered person to a registered person now attract reverse charge under Section 9(3):
| S. No. | Goods | Heading |
|---|---|---|
| 2A | Used cooking oil | 1518 |
| 3B | Waste and scrap of plastics | 3915 |
| 3C | Waste and scrap of tyres | 4004 |
| 9 | Electrical and electronic waste and scrap | 8549 |
If you buy these goods from unregistered suppliers, you will need to pay the tax yourself and self-invoice. Read this with the registration and TDS changes for the same goods in our post on GST Update 276.
Services: hotels, catering, electric vehicles and delivery
Notification 06/2026-CT(R) amends the services rate notification 11/2017-CT(R). The main entries, as summarised by ICAI:
| Service | Central tax | ITC conditions |
|---|---|---|
| Hotel accommodation up to ₹7,500 per unit per day | 2.5% | ITC restricted, except input service in the same line of business; capped at 2.5% if the input supplier charged more |
| Restaurant service other than at specified premises | 2.5% | ITC restricted, except input service in the same line of business |
| Food or drink supplied in trains or at platforms (from Railways, IRCTC or their licensees) | 2.5% | ITC restricted, except inputs and input services in the same line of business |
| Outdoor catering | 2.5% | No ITC, except input service in the same line of business; capped at 2.5% if the input supplier charged more |
| Transport of passengers by electrically operated vehicle (battery charging included) | 2.5% | ITC restricted as above; alternatively the supplier may pay 9% without these restrictions |
| Renting of electrically operated vehicle for passenger or goods transport (battery charging included) | 2.5% | ITC restricted as above; alternatively the supplier may pay 9% without these restrictions |
| Delivery services through an e-commerce operator where the supplier is not liable for registration under Section 22(1), or for goods supplied through the operator | 2.5% | ITC on goods and services used for the delivery service must not be taken |
Other points in the same notification:
- Paragraph 3, on the deemed value of lottery, is omitted. Lottery value now follows Rule 31A(2) of the CGST Rules.
- Goods transport agency (GTA) is redefined as any person who provides road transport of goods and issues a consignment note by whatever name called. This removes the exclusion for e-commerce operators providing or facilitating local delivery.
- A new definition of “electrically operated vehicle”: a road vehicle that runs solely on electrical energy from an external source or batteries fitted to it, including e-bicycles.
Notification 09/2026-CT(R) substitutes clause (v) of Notification 17/2017-CT(R): delivery services, other than postal and courier services, are covered under Section 9(5) (tax paid by the e-commerce operator), except where the person supplying through the operator is liable for registration under Section 22(1).
Notification 08/2026-CT(R) raises the central tax figure in the reverse charge entry (serial 15) for renting of passenger motor vehicles, where the cost of fuel is included and the service is supplied to a body corporate, from 6% to 9%, following the rate rationalisation.
New service exemptions
Notification 07/2026-CT(R) amends the exemption notification 12/2017-CT(R):
- Helicopter seat-share travel (S.No. 15(aa)): Exempt where the journey starts or ends at an airport or helipad in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim or Tripura, or at Bagdogra in West Bengal.
- GTA (S.No. 21A): The exemption does not apply to GTA services for goods supplied through an e-commerce operator.
- Storage and warehousing (S.No. 24B): Substituted to include cereals, pulses, fruits, vegetables and seeds meant for sowing. A broad definition of “seed” is added.
- Seamen’s Provident Fund Organisation (S.No. 31AA): Services to persons governed by the Seamen’s Provident Fund Act, 1966.
- Toll rights (S.No. 42A): Grant of exclusive right of way or access, licence and authority to collect toll by the Central or State Government, Union Territory, local authority or governmental entity.
- Coffee curing (S.No. 54A): Curing of coffee supplied to coffee cultivators.
- The explanation against serial number 18 is omitted.
Other changes
- Toll-Operate-Transfer concessionaires (Notification 10/2026-CT(R)): A concessionaire that supplies operation and maintenance services to the concessioning authority pays central tax on the amount charged or debited from the escrow account towards operation and maintenance expenses, in the tax period in which it is debited.
- Nominated agency (Notification 05/2026-CT(R)): The Explanation to Notification 26/2018-CT(R) now defines it by reference to Appendix 4B of the DGFT Handbook of Procedures, as amended from time to time.
- Import of services by shipping companies (Notification 07/2026-IT(R)): A new exemption (S.No. 10M) for import of services by an Indian establishment of a foreign shipping company from a related person or its overseas establishments, when made without consideration.
What to do now
- Update your tax masters for retreaded tyres, fertilisers and psyllium before invoices dated 1 November 2026.
- Hotels, restaurants and caterers: decide whether the 2.5% rate with restricted ITC suits you, and review input credit you currently claim.
- EV fleet operators and renters: compare the 2.5% option with the 9% option and its full ITC.
- Buyers of used cooking oil, plastic or tyre scrap and e-waste: set up reverse charge self-invoicing and payment.
- E-commerce delivery partners and GTAs: re-check who pays tax, and whether the supplier is liable for registration.
- Companies renting cars with fuel included: update the reverse charge rate to 9% central tax.
- Keep the notifications with your compliance file.
FAQs
Which notifications changed GST rates on 27 October 2026?
ICAI’s GST Update 277 covers Central Tax (Rate) Notifications 02/2026 to 10/2026 and Integrated Tax (Rate) Notification 07/2026, all dated 27 October 2026. Parallel amendments were made in the IGST and UTGST notifications. They apply from 1 November 2026.
What are the new rules for hotel and restaurant services?
Hotel accommodation up to ₹7,500 per unit per day, restaurant service other than at specified premises, food supplied in trains or at platforms, and outdoor catering are all at 2.5% central tax. In each case the ITC conditions are restricted, with credit allowed mainly for input services in the same line of business, and capped at 2.5% where the supplier charged more.
What is the GST rate on electric vehicle passenger transport and rental?
Per ICAI’s update, transport of passengers by an electrically operated vehicle and renting of such a vehicle (with battery charging cost included) is at 2.5% central tax with restricted ITC. The supplier can alternatively pay 9% central tax without those ITC restrictions.
Is psyllium husk or seed exempt from GST now?
Psyllium seeds (Isobgul or Isobgol) under tariff item 1211 90 13 get a specific exemption entry (87A) from 1 November 2026. Please check the tariff classification of your product before relying on it.
Which scrap and waste items are now under reverse charge?
Supplies by an unregistered person to a registered person of used cooking oil, waste and scrap of plastics, waste and scrap of tyres, and electrical and electronic waste and scrap are added to the reverse charge list from 1 November 2026.
What changes for delivery services supplied through e-commerce operators?
The delivery service entry in Notification 17/2017 (Section 9(5)) is substituted to cover delivery services other than postal and courier services, except where the person supplying through the operator is liable for registration under Section 22(1). The goods transport agency definition also no longer excludes e-commerce operators providing local delivery.
Where can I read the official notifications?
They are on the CBIC GST website (cbic-gst.gov.in) under Notifications, Central Tax (Rate) and Integrated Tax (Rate), 2026. Please check the official text before acting.
Related reading: CGST Amendment Rules 2026, 57th GST Council meeting and our accounting, GST and tax services.
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Based on ICAI’s GST Update 277 on Central Tax (Rate) Notifications 02/2026 to 10/2026 and Integrated Tax (Rate) Notification 07/2026, dated 27 October 2026. Details may change, so please check the official notifications on the CBIC GST website before acting. This post is for general information and is not tax or legal advice.