Press Release, Dated 03-09-2025
1. CBIC Issues 75 FAQs on 56th GST Council Decisions
The Central Board of Indirect Taxes and Customs (CBIC) released a detailed press note comprising 75 FAQs on the decisions taken in the 56th GST Council meeting held in New Delhi. These FAQs are aimed at clarifying key aspects of the revised GST framework, including rate changes, exemptions, refund entitlements, and compliance procedures. The guidance is designed to address common queries and ensure smooth implementation for taxpayers across sectors.
2. Clarifications on GST Rate Revisions
The FAQs provide sector-specific clarifications on the revised GST rates applicable to goods and services. They highlight the effective date of implementation and outline how these revisions impact categories such as food items, beverages, medicines, medical devices, vehicles, agricultural machinery, renewable energy devices, textiles, and beauty and wellness services. This comprehensive guidance ensures that both businesses and consumers are aware of the new tax implications from 22nd September 2025.
3. Compliance and Procedural Guidance
In addition to rate changes, the FAQs cover crucial compliance issues faced by taxpayers. They explain how to determine applicable GST rates based on the time of supply, treatment of advances and invoices issued before and after the rate revision, utilisation and reversal of Input Tax Credit (ITC), and treatment of goods in transit. Further, they provide clarity on refund eligibility and the procedural conditions governing claims, thereby reducing potential disputes and litigation.
4. Sector-Specific Services and Continuation of Compensation Cess
The FAQs also address GST treatment for sector-specific services such as Goods Transport Agencies (GTA), job work, works contracts, passenger transport, insurance, and admission to sporting events. Importantly, while taxpayers must comply with the revised rates from 22nd September 2025, specified tobacco products—including cigarettes and chewing tobacco—will continue under existing rates and cess. This continuation will remain in force until all outstanding loans and interest obligations under the compensation cess account are fully discharged.
