Unlocking Future of GST: CBIC Releases FAQs-3 on GST Rate Rationalisation
On the 79th Independence Day (August 15, 2025), Prime Minister Shri Narendra Modi, in his speech, spoke about bringing next-generation GST reforms across the country. He claimed the aim behind bringing these GST reforms is to facilitate the living of common people and develop and strengthen the economy of the country. With all this in mind, the Union Government prepared a list of proposals for broad-based GST rate rationalisation and process reforms.
The GST council meeting held on September 3 and 4, 2025, has approved all the proposed List of Next Generation GST Reforms by the Union Government. According to the changes proposed in the GST system, the council has replaced the four-slab system of the country with two slabs, in which maximum goods are categorised under 5% and 18% rates, except for sin and luxury goods, for which a uniform GST rate of 40% is imposed. These proposed GST changes are scheduled to take effect on September 22, 2025.
The Central Board of Indirect Taxes and Customs (CBIC) has issued Frequently Asked Questions (FAQs)-3, in which the government has answered some common questions relating to these GST rate rationalisations discussed in the 56th GST Council meeting.
These questions have been answered in order to help businesses, professionals, and students clear their doubts and understand the revised GST rates in a more effective manner.
