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GOVERNMENT OF KARNATAKA

No. FD 02 CSL 2025 Karnataka Government Secretariat,

Vidhana Soudha,

Bengaluru, Dated:19/09/2025

NOTIFICATION (15/2025)

In exercise of the powers conferred by sub-sections (1), (3), and (4) of section 9, sub-

sections (1) and (3) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and

section 148 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), the

Government of Karnataka, 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 Government

of Karnataka Notification (11/2017) No. FD 48 CSL 2017, dated the 29th June, 2017, published in

the Karnataka Gazette, Extraordinary, Part IVA, No.601, dated the 29th June, 2017, namely:-

In the said notification,-

(1) with effect from the 22^nd day of September, 2025,-

(a) in the Table, -

(i) against serial number 3, in column (3), -

(A) against item (vii), for the entry in column (4), the entry “9” shall be substituted;

(B) against item (viii), for the entry in column (4), the entry “9” shall be substituted;

(ii) against serial number 7, in column (3), -

(A) against item (i), -

(I) for the entry in column (4), the entry “2.5” shall be substituted;

(II) in column (5), the following shall be inserted, namely: -

“Provided that credit of input tax charged on goods and services used in

supplying the service has not been taken [Please refer to Explanation No.

(iv)]”;

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Part – IVA

2025

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BENGALURU, FRIDAY, 19 SEPTEMBER, 2025 BHADRAPADA 28, SHAKAVARSHA 1947)

. 608

No. 608

(B) in item (vi), in the Explanation, in clause (a), after the words “covered by items”, the

brackets and figure “(i),” shall be inserted;

(iii) against serial number 8, in column (3),-

(A) against item (v), for the entry in column (4), the entry “9” shall be substituted;

(B) against item (vi), in column (4), for the figure “6”, the figure “9” shall be substituted;

(iv) against serial number 9,-

(A) in column (3), against sub-item (b) of item (iii) in column (4), for the figure “6”,

the figure “9” shall be substituted;

(B) for item (iv) in column (3) and the corresponding entries relating thereto in

columns (4) and (5), the following shall be substituted: -

(3)

(4)

(5)

“(iv) Transport of goods in containers

by rail by any person other than Indian

Railways.

2.5

Provided that credit of input tax

charged on goods and services used

in supplying the service has not been

taken

[Please refer to Explanation no. (iv)]

-”;

“9” shall be substituted;

(D) for item (vi) in column (3) and the entries corresponding relating thereto in columns (4)

and (5), the following shall be substituted: -

(3)

(4)

(5)

“(vi) Multimodal transportation of

goods where at least two different

modes of transport from the place of

acceptance of goods to the place of

delivery of goods are used by a

multimodal transporter, where;

(a) Transportation of goods by any

mode of transport other than air.

2.5

Provided that the credit of input tax

charged on goods and services

used in supplying the service, other

than input tax credit of input

services of transportation of goods

(i.e. services of transport of goods

procured

from

other

service

provider), has not been taken:

Provided further that where the

supplier of input service of

transportation of goods to a

multimodal transporter charges

State tax at a rate higher than 2.5%,

credit of input tax charged on such

input

services

goods

transportation in excess of the tax

paid or payable at the rate of 2.5%,

shall not be taken.:

Provided

also

that

nothing

contained in this item shall apply to

supply of a service other than by

way of transport of goods from a

place in India to another place in

India.

Illustration:

‘A’

engages

‘B’

(multimodal

transporter)

for

transport of goods from New Delhi

to Gaya for Rs 1200, wherein ‘B’

uses more than one mode of

transport for the movement of

goods. ‘B’, for supplying the said

service hires a GTA i.e., ‘C’ for Rs

600 who charges State tax at 9%.

‘B’ also hires ‘D’, a Container

Transport Operator for Rs 400 who

charges State tax at 2.5%, for

supplying their services. ‘B’ shall

be entitled to take input tax credit

on the above-mentioned input

services of transportation of goods

as under:

(i) Only to the extent of Rs. 15

(2.5% of Rs. 600) and not

Rs. 54 for the input service

of GTA;

(ii) To the extent of Rs. 10

(2.5% of Rs. 400) for the

input service of container

transport operator.

(b) At least one mode of transport

is by air.

Provided that nothing contained in

this item shall apply to supply of a

service other than by way of

transport of goods from a place in

India to another place in India. ”;

(v) against serial number 10,-

(A) in column (3), against item (i), in the entry in column (4), for the figure “6”, the

figure “9” shall be substituted;

(B) for item (ia) in column (3) and the corresponding entries relating thereto in

columns (4) and (5), the following shall be substituted: -

(3)

(4)

(5)

“(ia) Renting of goods carriage where

the cost of fuel is included in the

consideration charged from the service

recipient.

2.5

Provided that credit of input tax

charged on goods and services used

in supplying the service, other than

the input tax credit of input service

in the same line of business has not

been taken:

[Please refer to Explanation no. (iv)]

Provided further that where the

supplier of input service in the same

line of business charges State tax at

a rate higher than 2.5%, credit of

input tax charged on the input

service in the same line of business

in excess of the tax paid or payable

at the rate of 2.5% shall not be taken.

-”;

(vi) for serial number 12 and the entries relating thereto, the following shall be substituted,

namely:-

(1)

(2)

(3)

(4)

(5)

“12

Heading

9968

(i) Postal services

(ii) Courier services

(iii) local delivery services

(a) Supplied

through

electronic

commerce operator where the

person supplying such services is

not liable for registration under

sub-section (1) of section 22 of the

Karnataka Goods and Services Tax

Act, 2017.

(b) other than (a) above

(iv) Delivery services other than (i), (ii)

and (iii) above

-”;

(vii) against serial number 15, in column (3), against item (vi), for the entry in column (4), the

entry “2.5” shall be substituted;

(viii) against serial number 21, in column (3),-

(A) item (ia), and the corresponding entries relating thereto in columns (4) and (5)

shall be omitted;

(B) for item (ii), the following item shall be substituted, namely:-

“(ii) Other professional, technical and business services other than (i) above and serial

number 38 below”;

(ix) against serial number 24, in column (3), against item (ii), for the entry in column (4), the

entry “9” shall be substituted;

(x) for serial number 26 and the entries relating thereto, the following shall be substituted,

namely:-

(1)

(2)

(3)

(4)

(5)

“26

Heading

9988

(Manufacturing

services

physical inputs

(goods)

owned

by others)

(i) Services by way of job work in relation to diamonds

falling under Chapter 71 in the First Schedule to the

Customs Tariff Act, 1975 (51of 1975);

0.75

-”;

(ii) Services by way of job work in relation to-

(a) all food and food products falling under

Chapters 1 to 22 in the First Schedule to the

Customs Tariff Act, 1975 (51of 1975);

(b) all products falling under Chapter 23 in the First

Schedule to the Customs Tariff Act, 1975 (51of

1975), except dog and cat food falling under

heading 2309 of the said chapter;

Schedule to the Customs Tariff Act, 1975 (51of

1975);

(d) Hides, skins and leather falling under Chapter

41 in the First Schedule to the Customs Tariff Act,

1975 (51of 1975);

Provided that nothing contained in clause (d)

shall apply to job-work in relation to leather goods

2.5

or foot wear falling under Chapter 42 or 64 in the

First Schedule to the Customs Tariff Act, 1975 (51

of 1975), respectively;

(e) Printing of newspapers, books (including

Braille books), journals and periodicals;

(f) Printing of all goods falling under Chapters 48

or 49 in the First Schedule to the Customs Tariff

Act, 1975 (51of 1975) which attract State tax

@2.5% or Nil;

(g) Textiles and textile products falling under

Chapters 50 to 63 in the First Schedule to the

Customs Tariff Act, 1975 (51of 1975);

(h) bricks falling under Chapters 68 or 69 in the

First Schedule to the Customs Tariff Act, 1975

(51of 1975) which attract State tax @2.5%;

(i) all products, other than diamonds, falling under

Chapter 71 in the First Schedule to the Customs

Tariff Act, 1975 (51of 1975);

(j) handicraft goods;

(k) umbrella.

(iii) Services by way of job work in relation to

manufacture

alcoholic

liquor

for

human

consumption;

(iv) Services by way of job work other than (i), (ii), and

(iii) above.

(v) Services by way of any treatment or process on

goods belonging to another person, in relation to-

(a) printing of newspapers, books (including Braille

books), journals and periodicals;

(b) printing of all goods falling under Chapters 48 or 49

in the First Schedule to the Customs Tariff Act, 1975

(51of 1975) which attract State tax @2.5% or Nil.

2.5

(vi) Tailoring services.

2.5

(vii) Services by way of any treatment or process on

goods belonging to another person, other than (v) and

(vi) above.

(xi) against serial number 32, in column (3),-

(A) against item (i), for the entry in column (4), the entry “2.5” shall be substituted;

(B) against item (ia), for the entry in column (4), the entry “2.5” shall be substituted;

(xii) against serial number 34, in column (3),-

(A) against item (ii), for the entry in column (4), the entry “2.5” shall be substituted;

(B) in item (iiia), the following explanation shall be inserted, namely: -

“Explanation: Nothing contained in clause (b) of this item shall apply to a ‘recognised

sporting event’.”;

substituted;

(D) against item (iv), for the entry in column (4), the entry “20” shall be substituted;

(xiii) for serial number 35 and the entries relating thereto, the following shall be substituted,

namely:-

(1)

(2)

(3)

(4)

(5)

“35

Heading

9997

(i) Beauty and physical well-being

services falling under Group 99972.

2.5

Provided

that credit of

input

tax

charged

goods

and

services used

in supplying

the

service

has not been

taken [Please

refer

Explanation

No. (iv)]

(ii) Other services (washing, cleaning,

and

dyeing

services;

and

other

miscellaneous

services

including

services nowhere else classified).

Explanation.-

For the removal of doubt, it is hereby

clarified that, supplies covered by item

(i) in column (3) shall attract State tax

prescribed against them in column (4)

subject to conditions specified against

them in column (5), which is a

mandatory rate and shall not be levied at

the rate specified under this item.

-”;

(xiv) against serial number 38, in column (3), for the Explanation, the following explanation

shall be substituted, namely:-

“Explanation:- This entry shall be read in conjunction with serial number 437 of Schedule I

of notification (09/2025) No. FD 02 CSL 2025, dated 17^th September, 2025.”

(b) in paragraph 4 relating to Explanation,-

(i) for clause (xxxx), the following clause shall be substituted, namely: -

“(xxxx)‘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) electronic commerce operator by whom the services of local delivery are provided;

(ii) electronic commerce operator through whom the services of local delivery are provided”;

(ii) after clause (xxxx), the following clauses shall be inserted, namely: -

“(xxxxi) ‘recognised sporting event’ has the same meaning as assigned to it in clause (zw) of

paragraph 2 of notification (12/2017) No. FD 48 CSL 2017, dated the 29th June, 2017, published

in the Karnataka Gazette, Extraordinary, Part IVA, No.602, dated the 29th June, 2017, as amended

from time to time;

(xxxxii) ‘handicraft goods’ shall have the same meaning as assigned to it in the notification

(32/2017) No. FD 48 CSL 2017, dated the 13th October, 2017, published in the Karnataka Gazette,

Extraordinary, Part IVA, No.946, dated the 13th October, 2017, as amended from time to time;

(xxxxiii) ‘mode of transport’ means carriage of goods by road, air, rail, inland waterways or sea;

(xxxxiv) ‘multimodal transporter’ means a person who,-

(a) enters into a contract under which he undertakes to perform multimodal transportation

against freight; and

(b) acts as principal, and not as an agent either of the consignor, or consignee or of the carrier

participating in the multimodal transportation and who assumes responsibility for the

performance of the said contract.”.

(2) with effect from the 1^st day of April, 2025, in paragraph 4, in clause (xxxvi), the following

Explanations shall be inserted, namely: -

“Explanation 1.- For the purposes of this clause, ‘premises’ means a place from where

hotel accommodation services are being supplied or are to be supplied.

Explanation 2.- For the purpose of sub-clause (c), the expression ‘a person applying

for registration’ shall include a person applying for amendment of registration to

declare an additional place of business.”.

By Order and in the name of the

Governor of Karnataka,

(H. R. LALITHA)

Under Secretary to Government,

Finance Department (Exp-2 & 10)

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