GST Amendments for CA Inter May 2026
Official statutory update from ICAI Board of Studies. All amendments effective up to 31st October 2025 are applicable.
Important for May 2026 Exam
All amendments by Finance Act 2025 are applicable. Read these along with your July 2025 Study Material.
Quick Summary
On This Page
GST Rate Changes
Effective from 22nd September 2025 (Notification No. 15/2025 CT(R) dated 17.09.2025)
| Service | Old Rate | New Rate | Note |
|---|---|---|---|
| GTA (Goods Transport Agency) with ITC | 12% | 18% | GTA without ITC remains 5% |
| Motor Vehicle Renting (with full ITC) | 12% | 18% | With limited ITC remains 5% |
Exam Tip: Remember the pattern - if supplier wants full ITC benefit, rate is 18%. If supplier restricts ITC (same line of business), rate remains 5%.
New Exemptions (Insurance)
Effective from 22nd September 2025 (Notification No. 16/2025 CT(R) dated 17.09.2025)
Key Point
Life insurance and health insurance for individuals/families are now EXEMPT from GST. Group insurance policies remain taxable.
| Entry | Service | Condition | Effective |
|---|---|---|---|
| 36C | Life insurance for individuals/families | Where insured is NOT a group | 22.09.2025 |
| 36D | Health insurance for individuals/families | Where insured is NOT a group | 22.09.2025 |
| 36E | Reinsurance of life/health insurance | Reinsurance of services in 36C or 36D | 22.09.2025 |
✓ EXEMPT (Individual/Family)
- • Term life insurance for an individual
- • Health insurance for self and family
- • Personal accident cover
- • Travel insurance for individual
✗ TAXABLE (Group)
- • Employer-provided group health insurance
- • Corporate group term life insurance
- • Association group policies
- • Bank account linked group insurance
ECO Services (Section 9(5))
Services where Electronic Commerce Operator (ECO) is liable to pay GST
Updated via Notification No. 17/2025 CT(R) dated 17.09.2025 (Effective: 22.09.2025)
NEW: Local Delivery Services
Food delivery, grocery delivery, and other local delivery services provided by or through ECO are now covered. ECO (like Swiggy, Zomato, Zepto) is liable to pay GST.
| Service | ECO Pays GST? |
|---|---|
| Transportation of passengers (taxi, cab, motorcycle) | Yes |
| Transportation by omnibus | Yes (except if supplier is a company) |
| Accommodation in hotels, guest houses | Yes (except if supplier liable u/s 22(1)) |
| House-keeping (plumbing, carpentry) | Yes (except if supplier liable u/s 22(1)) |
| Restaurant service (except specified premises) | Yes |
| Local delivery services | Yes (NEW - except if supplier liable u/s 22(1)) |
New/Amended Definitions
Group (for insurance exemption)
Group of persons who join together with commonality of purpose or for common economic activity (other than availing insurance). Includes employer-employee groups and non-employer groups with evident relationship.
Health Insurance Business
Contracts providing sickness benefits or medical/surgical/hospital expense benefits (inpatient or outpatient), travel cover, and personal accident cover.
Goods Transport Agency (Amended)
Person who provides transport of goods by road and issues consignment note, but EXCLUDES ECO providing/facilitating local delivery services.
Other Important Amendments
Clarification on post-sale discounts
Recipient NOT required to reverse ITC on financial/commercial credit notes issued by supplier, as no reduction in original transaction value.
Circular No. 251/08/2025-GST dated 12.09.2025
Annual return exemption raised
Registered persons with aggregate turnover up to ₹2 crore exempted from filing annual return (from FY 2024-25 onwards).
Notification No. 15/2025 CT dated 17.09.2025
Official Source
This page is based on the official ICAI Statutory Update for CA Intermediate May 2026 Examination.
Download Official PDF (ICAI)Frequently Asked Questions
What is the cutoff date for GST amendments in CA Inter May 2026? ▼
Amendments effective up to 31st October 2025 are applicable. All amendments made by Finance Act 2025 are applicable for May 2026 examination.
Is health insurance exempt from GST for May 2026 exam? ▼
Yes, health insurance and life insurance for individuals/families (non-group policies) are exempt from GST from 22.09.2025. Group insurance policies remain taxable at 18%.
What is the new GST rate for GTA services with ITC? ▼
GTA services where the supplier avails full ITC are now taxable at 18% (changed from 12%). GTA without ITC remains at 5%.
What is 'local delivery' under ECO services? ▼
Local delivery services (like food/grocery delivery through Swiggy, Zomato, Zepto) provided by or through an ECO are now covered under Section 9(5). The ECO is liable to pay GST on such services.