Assam Government Amends GST Rates for Pharmaceuticals and Other Goods

The Government of Assam, through Notification No. 05/2024-STATE TAX (RATE), issued by the Finance (Taxation) Department on October 17, 2025, introduced significant amendments to the existing Goods and Services Tax (GST) framework in the state. This notification, published in the Assam Gazette, Extraordinary, modifies the earlier Notification No. FTX.56/2017/14, dated June 29, 2017, which originally set out the GST rates. The amendments were made by the Governor of Assam, exercising powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Assam Goods and Services Tax Act, 2017 (Assam Act No. XXVIII of 2017), following recommendations from the Council. The changes primarily involve the reclassification and inclusion of various goods across different GST rate schedules, impacting businesses and consumers dealing in these specific products.

Among the key provisions, the notification inserted three critical medical drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—into Schedule I, which typically corresponds to a lower GST rate of 2.5%. This move aims to potentially reduce the tax burden on these essential pharmaceutical products. Additionally, "Extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion)" were added to Schedule II, generally associated with a 6% GST rate. Further modifications were made to Schedule III (9% GST rate), where the description for "un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion" was substituted to include "extruded or expanded products, savoury or salted." An entry for "Seats (other than those of heading 9402), whether or not convertible into beds and parts thereof other than seats of a kind used in aircraft or seats of a kind used for motor vehicles" was also substituted in Schedule III. Lastly, "Seats of a kind used for motor vehicles" were inserted into Schedule IV, which typically carries a 14% GST rate. The legislation provided: “This notification shall be deemed to come into force on the 10th of October, 2024.” This retrospective application means the revised rates and classifications are effective from an earlier date than the notification's issuance.

The legislative intent behind these amendments appears to be a refinement of the Goods and Services Tax structure in Assam, aligning with broader policy objectives and recommendations from the GST Council. The earlier legal position was governed by the initial notification, which established the original classifications and rates. The current notification addresses statutory gaps and issues by clarifying the tax treatment of certain goods, particularly by explicitly listing specific life-saving drugs, thereby potentially making them more accessible. It also streamlines the classification of various snack products and different types of seats, ensuring greater precision in tax application. These amendments introduce new obligations for businesses to adhere to the revised classifications and rates, while also potentially offering relief for consumers of the newly included medical items. The enforcement of these changes falls under the purview of the Assam Goods and Services Tax Act, 2017, with the retrospective application requiring businesses to account for the changes from the specified past date.

Keywords: Assam GST, GST rates, Goods and Services Tax, tax notification, Trastuzumab Deruxtecan, Osimertinib, Durvalumab, snack pellets, motor vehicle seats, tax amendment, Finance (Taxation) Department Geo Tags: India, Assam District: Not Applicable