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[
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)

Notification
No. 16 /2025-Central Tax (Rate)
New Delhi, the 17
th
September, 2025

G.S.R. -----(E). - In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section
11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the
Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the
Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry
of Finance (Department of Revenue), number 12/2017-Central Tax (Rate), dated the 28th June, 2017, published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017,
namely:—
In the said notification,-
(a) In the table, -
(i) against serial number 18, in column (3), after clause (b), the following explanation shall be inserted, namely:-
“Explanation. - Nothing contained in this entry shall apply to:
(i) local delivery services provided by an Electronic Commerce Operator; or
(ii) local delivery services provided through an Electronic Commerce Operator.”;

(ii) after serial number 36B and the entries relating thereto, the following serial numbers and entries relating thereto
shall be inserted, namely: -
(1) (2) (3) (4) (5)
“36C Heading 9971

Services of life insurance business provided by an
insurer to the insured, where the insured is not a
group.

[Please refer to clause (zfb) in para 2]

Explanation: For the removal of doubts, it is hereby
clarified that:
a. This exemption shall apply to a contract of
insurance where the insured is an
Nil

Nil

individual, or an individual and family of
the said individual.
b. For the purposes of (a) above, family shall
include all individuals insured as family in
the contract of insurance.
36D Heading 9971

Services of health insurance business provided by
an insurer to the insured, where the insured is not a
group.

[Please refer to clause (zfb) in para 2]

Explanation: For the removal of doubts, it is hereby
clarified that:
a. This exemption shall apply to a
contract of insurance where the
insured is an individual, or an
individual and family of the said
individual.
b. For the purposes of (a) above, family
shall include all individuals insured
as family in the contract of insurance.

Nil Nil
36E Heading 9971

Reinsurance of the insurance services specified in
serial numbers 36C or 36D.
Nil Nil”;

(b) in paragraph 2,
(i) for clause (ze), the following shall be substituted, namely: -
“(ze)‘goods transport agency’ means any person who provides service in relation to transport of goods by road
and issues a consignment note by whatever name called, but does not include
(i) an electronic commerce operator by whom the services of local delivery are provided,
(ii) an electronic commerce operator through whom the services of local delivery are provided”;

(ii) after clause (zfa), the following clause shall be inserted, namely:-
“(zfb) For the purposes of entries at serial numbers 36C and 36D in the table above, ‘group’ means group of
persons who join together with a commonality of purpose or for engaging in a common economic activity, other
than availing insurance, and includes:

a. Employer– employee groups, where an employer-employee relationship exists between the
master/group policyholder and the members of the group in accordance with the applicable laws;
b. Non employer– employee groups, where a clearly evident relationship exists between the
master/group policyholder and the members of the group, for services/ activities other than insurance.”;
(iii) after clause (zg), the following clause shall be inserted, namely: -
“(zga) ‘health insurance business’ means the effecting of contracts which provide for sickness benefits or medical,
surgical or hospital expense benefits, whether in-patient or out-patient, travel cover and personal accident cover;”.

2. This notification shall come into force with effect from the 22
nd
day of September, 2025.


[F.No.190341/188/2025-TRU]


(Md. Adil Ashraf)
Under Secretary to the Government of India




Note: The principal notification No. 12/2017 - Central Tax (Rate), dated the 28
th
June, 2017 was published in the Gazette
of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 691 (E), dated the 28
th
June, 2017 and was
last amended vide notification number 06/2025-Central Tax (Rate), dated the 16
th
January, 2025 published in the Gazette
of India, Extraordinary, vide number G.S.R. 41(E), dated the 16
th
January, 2025.