GST Price Cuts Decoded: Centre shares 75 FAQs simplifying 56th Council assembly selections

Shortly after delivering the Prime Minister-promised “Diwali reward GST reforms”, the Union authorities on Wednesday launched a doc addressing 75 widespread questions on numerous points of the GST Council’s key selections. The FAQs — about 4,500 phrases in complete — embody 28 factors on implementation and compliance-related nuances from the newest GST assessment. 

This is a fast tackle these FAQs: 

When will new GST charges apply?

• From September 22, 2025, aside from cigarettes, chewing tobacco, unmanufactured tobacco and beedi. For these, previous charges proceed till additional discover.

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Is there any change in registration threshold?

The place will revised charges be notified?

• Via official charge notifications on the CBIC web site.

What occurs if provide is earlier than charge change however bill after?

• If cost is after charge change, tax applies on cost/bill date (whichever is earlier). If cost was earlier than, tax applies on cost date.

What about advances obtained earlier than charge change?

• GST charge is dependent upon time of provide guidelines below Part 14 of CGST Act.

Will ITC change for purchases made earlier than charge change?

• No. ITC is allowed on the charge charged on the time of provide, if circumstances are met.

What about IGST on imports?

• IGST will observe the revised charges except exempted individually.

Can I exploit previous ITC after charge cuts?

• Sure. ITC already availed can be utilized to pay future liabilities.

If my provide turns into exempt now, do I reverse ITC?

• Sure, ITC have to be reversed for provides made after September 22, 2025.

Can I declare refund of amassed ITC on account of charge modifications?

• No. Refund is just for real inverted responsibility instances, not charge modifications over time.

Do new charges apply to previous inventory?

• Sure. GST is on provide. Provides after September 22 will entice new charges.

Do e-way payments should be cancelled when charges change?

• No. Present e-way payments stay legitimate.

Is plant-based milk additionally exempt?

• No. Dairy UHT milk is exempt. Plant-based milk is now at 5 per cent (earlier 12–18 per cent).

Why 40 per cent GST on different non-alcoholic drinks?

• To maintain related items on the identical charge and keep away from disputes.

What’s GST charge on unspecified meals preparations?

Why revise GST solely on some Indian breads?

• To make sure all Indian breads (roti, paratha, porotta, pizza bread, and many others.) are exempt, like plain bread.

Why enhance GST on carbonated fruit drinks/fruit juice drinks?

• As a result of compensation cess ended, GST was raised to take care of the identical general tax.

Why totally different tax on paneer vs different cheese?

• Paneer (pre-packaged) now aligned with different varieties. Promotes small-scale cottage trade.

Why totally different tax on pure vs synthetic honey?

• To advertise pure honey.

Has GST been decreased on all farm equipment?

• Sure, most farm equipment (sprinklers, threshers, harvesters, and many others.) now 5 per cent as an alternative of 12 per cent.

Why not exempt farm equipment totally?

• Exemption would block ITC, elevate prices, and hurt farmers. 5 per cent ensures stability.

What’s GST on medicines?

• 5 per cent, except particularly exempted.

Why not exempt all medicines?

• Exemption blocks ITC, raises prices, and would make medicines costlier.

Does 5 per cent apply to all medical units?

• Sure, besides these particularly exempted.

Will reducing tax on medical units trigger inversion?

• No new inversion. Refunds allowed for ITC. Objective is to scale back healthcare prices.

What’s GST on small vehicles?

• 18 per cent (down from 28 per cent). Applies to petrol/LPG/CNG vehicles as much as 1200cc & 4000mm, diesel vehicles as much as 1500cc & 4000mm.

What’s GST on larger vehicles and SUVs?

• 40 per cent. Applies to vehicles above 1500cc or 4000mm, and SUVs/MUVs/XUVs with floor clearance above 170mm.

What’s GST on three-wheelers?

• 18 per cent (down from 28 per cent).

What’s GST on buses (10+ passengers)?

• 18 per cent (down from 28 per cent).

What’s GST on ambulances?

• 18 per cent (down from 28 per cent).

What’s GST on items transport autos?

• 18 per cent (down from 28 per cent).

What’s GST on tractor trailers/semi-trailers?

• 5 per cent for tractors, 18 per cent for highway tractors above 1800cc (down from 28 per cent).

What’s GST on bikes?

• 18 per cent for as much as 350cc, 40 per cent above 350cc.

Does 18 per cent embody 350cc bikes?

• Sure. Solely above 350cc entice 40 per cent.

What’s new GST on mid/huge vehicles?

• 40 per cent (no compensation cess).

Has GST been minimize on bicycles?

• Sure, 5 per cent (down from 12 per cent).

Why not exempt small tractors?

• Exemption blocks ITC, raises prices, and hurts farmers. 5 per cent ensures stability.

Why is 40 per cent referred to as a ‘particular charge’?

• It applies solely to sin/luxurious items. Compensation cess merged with GST.

Why totally different GST on wooden pulp?

• Paper and textile chains are handled individually to take care of parity.

Why not exempt uncooked cotton?

• Cotton is taxed on reverse cost to maintain ITC chain intact for textiles.

Why not scale back GST on dyes, zippers, elastics, and many others.?

• These are multi-use items. Finish-use primarily based exemptions are prevented.

Will technical textiles face inversion?

• Sure, however refunds can be found. Reforms intention to fast-track refunds.

Why prohibit refunds on imitation zari?

• Choice taken earlier. Present reforms deal with streamlining charges.

What’s GST on rest room cleaning soap bars?

• 5 per cent (decreased from 18 per cent). Liquid cleaning soap stays totally different.

Why minimize GST on face powder and shampoos?

• They’re every day use objects. Price minimize simplifies construction, even when luxurious manufacturers profit.

Why solely minimize GST on choose cosmetics like powder/shaving cream?

• Solely objects of every day use had been focused for charge minimize.

Why not scale back GST on mouthwash?

• Focus was on primary dental hygiene objects like toothpaste, toothbrush, and floss.

Why enhance GST on coal?

• Compensation cess merged into GST. No further burden.

Why scale back GST on tendu leaves?

• To align with tobacco leaves at 5 per cent.

What’s GST on renewable vitality units?

• 5 per cent (down from 12 per cent).

Why minimize GST on renewable vitality items regardless of inversion?

• To advertise renewables. Refunds obtainable for inversion.

Why minimize GST on marble/granite blocks?

• They’re intermediate items. Price minimize reduces prices.

What’s GST on spectacles/goggles?

• Corrective imaginative and prescient glasses 5 per cent (down from 12–18 per cent). Others stay 18 per cent.

What’s GST on batteries?

• All batteries now 18 per cent (earlier 18 per cent for lithium-ion, 28 per cent for others).

What’s GST on ACs, TVs, screens, dishwashers?

• 18 per cent (down from 28 per cent).

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Which life insurance coverage insurance policies are exempt?

• All particular person insurance policies together with time period, ULIP, endowment, plus reinsurance.

Which medical insurance insurance policies are exempt?

• All particular person insurance policies, together with floater and senior citizen covers, plus reinsurance.

Are passenger transport companies taxed at 18 per cent?

• No, 5 per cent with out ITC. However suppliers can go for 18 per cent with ITC.

Do air passenger companies get identical possibility?

• No. Financial system = 5 per cent, others = 18 per cent.

Is GTA taxed at 18 per cent?

• Default 5 per cent with out ITC, however GTA can select 18 per cent with ITC.

Is container practice transport taxed at 12 per cent?

• No. Choice of 5 per cent with out ITC or 18 per cent with ITC.

What’s GST on multimodal transport?

• 5 per cent with out ITC, except air is concerned (then 18 per cent with ITC).

Why not exempt GTA companies totally?

• Exemption blocks ITC and raises prices. Important items transport already exempt.

What’s GST on job work for pharma merchandise?

• 5 per cent with ITC (down from 12 per cent).

What’s GST on job work for hides, skins, leather-based?

• 5 per cent with ITC (down from 12 per cent).

Does this cowl job work for leather-based items/footwear?

• No, solely uncooked hides, skins, leather-based.

Is job work for alcohol taxed at 5 per cent?

What about different job work companies?

• Residuary job work now 18 per cent (up from 12 per cent).

Why not make job work tax-free?

• Exemption breaks ITC chain. 5 per cent with ITC avoids cascading.

What’s GST on oil & gasoline offshore contracts?

What’s GST on lodge stays beneath Rs 7,500/day?

What’s GST on magnificence & wellness companies?

• 5 per cent with out ITC (down from 18 per cent). Contains gyms, salons, yoga, and many others.

Are lottery, betting, casinos taxed at 40 per cent?

• Sure, together with on-line gaming and horse racing.

What’s GST on IPL admission?

• 40 per cent. Not relevant to recognised sporting occasions.

What’s GST on different sports activities occasions?

• Exempt if ticket ≤ Rs 500. In any other case 18 per cent.