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?
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- 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.
