Central Tax (Rate)Medium impact for ecommerce sellers
Retreaded tractor tyres moved to the 2.5% central tax schedule; fertiliser entry revised to name sea-weed bio-stimulants
Official text · Summary prepared automatically
- Document
- Notification No. 02/2026-Central Tax (Rate)
- Issued
- 28 Oct 2026
- Effective
- 1 Nov 2026
- Issued by
- Government of India, Ministry of Finance (Department of Revenue)
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What it means for ecommerce sellers
Notification No. 02/2026-Central Tax (Rate) amends Notification No. 9/2025-Central Tax (Rate) in three ways. It inserts retreaded tractor tyres (heading 4012) as S.No. 272A in Schedule I (2.5%). It excludes retreaded tractor tyres from the Schedule II (9%) entry at S.No. 138, and it substitutes the Schedule I entry at S.No. 237 for pre-packaged and labelled animal, vegetable or organic fertilisers, adding an explanation that the entry includes sea-weed extract based bio-stimulants registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985. The changes come into force on 1 November 2026 and affect only sellers of these tyres or fertiliser products; for other ecommerce sellers the notification makes no change.
Who it affects
- Suppliers of retreaded tractor tyres under heading 4012
- Suppliers of retreaded or used pneumatic tyres of rubber, solid or cushion tyres, tyre treads and tyre flaps, of rubber
- Suppliers of animal or vegetable fertilisers or organic fertilisers pre-packaged and labelled
- Suppliers of sea-weed extract based bio-stimulants registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985
What to do
- Identify any retreaded tractor tyres (heading 4012) in the product catalogue and apply the Schedule I (2.5%) central tax entry at S.No. 272A to supplies from 1 November 2026.
- Keep other retreaded or used pneumatic tyres of rubber, solid or cushion tyres, tyre treads and tyre flaps under the Schedule II (9%) entry at S.No. 138, which now expressly excludes only retreaded tractor tyres.
- Check that animal, vegetable or organic fertilisers billed under Schedule I S.No. 237 are pre-packaged and labelled, as the substituted entry describes.
- For sea-weed extract based bio-stimulants, confirm that the product is registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985 before treating it as covered by S.No. 237.
- Update tax codes on invoices and marketplace listings for the affected products with effect from 1 November 2026.
Provisions referred to: Section 9(1), Central Goods and Services Tax Act, 2017; Section 15(5), Central Goods and Services Tax Act, 2017; Notification No. 9/2025-Central Tax (Rate), Schedule I (2.5%), S.No. 237 and new S.No. 272A; Notification No. 9/2025-Central Tax (Rate), Schedule II (9%), S.No. 138; Schedule VI, Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985
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Official text
As issued by Government of India, Ministry of Finance (Department of Revenue). Where the text starts with “Extract”, only the parts that concern ecommerce sellers are reproduced; the official PDF (opens in a new tab) is the authoritative version.
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Questions sellers ask
What is the central tax rate on retreaded tractor tyres from 1 November 2026?
Notification No. 02/2026-Central Tax (Rate) inserts S.No. 272A, heading 4012, 'Retreaded tractor tyres', into Schedule I (2.5%) of Notification No. 9/2025-Central Tax (Rate). The notification comes into force on 1 November 2026. It sets the central tax entry only and does not itself state the position under any other levy, so the rate under other levies is not covered by this notification.
Are all retreaded and used tyres now taxed at 2.5% central tax?
No. Notification No. 02/2026-Central Tax (Rate) substitutes the Schedule II (9%) entry at S.No. 138 of Notification No. 9/2025-Central Tax (Rate) to read 'Retreaded or used pneumatic tyres of rubber (other than retreaded tractor tyres); solid or cushion tyres, tyre treads and tyre flaps, of rubber'. Only retreaded tractor tyres are carved out and placed in Schedule I (2.5%), with effect from 1 November 2026.
Are sea-weed extract bio-stimulants covered by the 2.5% central tax fertiliser entry?
Notification No. 02/2026-Central Tax (Rate) substitutes Schedule I (2.5%) S.No. 237 of Notification No. 9/2025-Central Tax (Rate) and adds an explanation that the entry includes sea-weed extract based bio-stimulants, as registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985. The text links coverage to that registration. The change applies from 1 November 2026.
Do organic fertilisers need to be pre-packaged and labelled to fall under Schedule I S.No. 237?
The entry substituted by Notification No. 02/2026-Central Tax (Rate) in Schedule I (2.5%) S.No. 237 of Notification No. 9/2025-Central Tax (Rate) reads 'All goods i.e. animal or vegetable fertilisers or organic fertilisers pre-packaged and labelled.' The entry as worded therefore describes fertilisers that are pre-packaged and labelled. The substituted entry comes into force on 1 November 2026.
From when does Notification No. 02/2026-Central Tax (Rate) apply?
Notification No. 02/2026-Central Tax (Rate) states that it shall come into force on 1 November 2026. From that date the amendments to Notification No. 9/2025-Central Tax (Rate) take effect: retreaded tractor tyres move into Schedule I (2.5%), the Schedule II (9%) tyre entry at S.No. 138 excludes them, and the fertiliser entry at S.No. 237 is substituted.
Want help working out what this means for your business?
We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.
General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.