CBIC Issues FAQs-2 On 56th GST Council Decisions

Press Release, Dated 16-09-2025

1. Introduction

The Central Board of Indirect Taxes and Customs (CBIC) has issued FAQs-2 to provide further clarity on the decisions taken during the 56th GST Council meeting held on 3rd September 2025. These clarifications are aimed at guiding taxpayers, businesses, and intermediaries on the implementation of revised rates and compliance requirements across goods and services. The document addresses key industries such as pharmaceuticals, healthcare, construction, transport, and e-commerce.

2. Revisions in MRP and Pharmaceutical Compliance

A significant change relates to the manufacturers and marketing companies of drugs and medical devices, who are now required to revise the Maximum Retail Price (MRP) and issue updated price lists in Form V/VI to dealers, retailers, State Drug Controllers, and the Government. However, the FAQs clarify that recalling or re-labelling of existing stocks before 22nd September 2025 is not mandatory. This ensures a smooth transition while maintaining compliance with the updated pricing framework.

3. GST Rate Changes on Goods and Services

The FAQs highlight multiple GST rate revisions across sectors. All drones are now taxed at 5%, while sand lime bricks are reduced to 5%, with other bricks at 6% without ITC and 12% with ITC. In services, individual life and health insurance are exempt, but ITC reversal is required on other input services, except reinsurance. Hotel units charging up to ₹7,500 per day and beauty services are taxed at 5% without ITC. For job work, bus body building and residual manufacturing are taxed at 18% with ITC, while job work for bricks attracts 5% with ITC.

4. Transport and E-Commerce Services

Detailed guidance has also been issued for the transport and e-commerce sectors. Leasing or renting services without an operator follow rates of like goods, while cars with operators are taxed at 5% with restricted ITC or 18% with full ITC. Multimodal transport attracts 5% with restricted ITC if no air leg is involved and 18% with full ITC if air transport is included. For local delivery services through e-commerce operators (ECOs), GST is levied at 18%, with liability on the ECO if the supplier is unregistered. Further, ECOs providing or facilitating delivery services are not to be classified as GTAs.

5. Conclusion

The CBIC’s FAQs-2 ensure clarity and uniformity in the implementation of the 56th GST Council’s recommendations. Businesses must comply by issuing revised price lists, charging GST at applicable rates, reversing ITC where required, and following sector-specific provisions. The procedures must also align with the NPPA Office Memorandums dated 12th and 13th September 2025, ensuring a consistent compliance framework. These clarifications will aid in smooth adoption of revised GST rules across industries and prevent potential disputes.

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