▪️ Recommendations of the 56th Meeting of the GSTCouncil held at New Delhi
๐ฐGST Council approves reforms with a multi-sectoral and multi-thematic focus on improving the lives of all citizens and ensuring ease of doing business for all, including small traders and businessmen
๐ฐ GST Council approves rate rationalisation with a focus on Common-man, Labour-intensive Industries, Farmers and Agriculture, Health, Key Drivers of the economy
๐ฐ Exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country
๐ฐ Exemption of GST on all individual health insurance policies (including family floater policies and policies for senior citizens) and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country
๐ฐ Rationalisation of the current 4-tiered tax rate structure into a citizen-friendly ‘Simple Tax’ - a 2 rate structure with a Standard Rate of 18% and a Merit Rate of 5%; a special de-merit rate of 40% for a select few goods and services
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๐ฐ Reduction of #GST from 18% OR 12% to 5% on a host of common man items such as, hair oil, toilet soap bars, shampoos, toothbrushes, toothpaste, Bicycles, Tableware, kitchenware, other household articles, et al
๐ฐ Reduction of GST from 5% to NIL on Ultra-High Temperature (UHT) milk, Prepackaged and labelled chena or paneer; All the Indian Breads will see NIL rates (Chapati or roti, paratha, parotta, etc)
๐ฐ Reduction of GST from 12% OR 18% to 5% on almost all of the food items such as packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, Butter, Ghee, etc.
๐ฐ Reduction of GST from 28% to 18% on Air-conditioning machines, TVs~32 inch (all TVs now at 18%), Dishwashing machines, Small cars, Motorcycles equal to or less than 350 CC
๐ฐ Reduction of GST from 12% to 5% on agricultural goods, such as tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, harvesting or threshing machinery, including straw or fodder balers, grass or hay mowers, composting machines etc
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Frequently Asked Questions (FAQs) on the decisions of the 56th #GSTCouncil held in New Delhi
➔ When will the changes in GST rates come into force ❓
๐ As per recommendations of the GST Council in its 56th meeting, the changes in GST rates on services and goods other than cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi will be effective from 22nd September, 2025. For the specified goods namely, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi, the existing rates of GST and compensation cess will continue to apply and the new rates will be implemented at a later date to be notified, based on discharging of entire loan and interest liabilities on account of compensation cess
➔ Is there any change in threshold of the registration required for goods under CGST Act, 2017❓
๐ No, there is no change in threshold of the registration required for goods under CGST Act, 2017
➔ Which notification provides for the revised rates❓
๐ The changes in GST rates will be notified in the rate notification. The notification would be placed on #CBIC website
➔ What would be the #GST rate applicable if I have received advances for supply of goods/services or both but supply has not been completed or invoice is not issued❓
๐ The GST rate will be determined as per the time of supply provisions. (Refer Section 14 of the CGST Act, 2017)
➔ What will be the impact on the IGST rate on import of goods❓
๐ The IGST on imported goods will be the GST rates as notified in the rate notification except where IGST rate has been exempted separately
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