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Taxation Central Ministry of Finance Central Goods and Services Tax Act, 2017

CBIC (GST) Issues Press Release on Key Outcomes of the 56th GST Council Meeting

03-Sep-2025 | NA

The Central Board of Indirect Taxes and Customs (CBIC) has released a press Release outlining the decisions taken during the 56th meeting of the GST Council, with several important changes in GST rates and procedural updates. The following are the key highlights:

1. The Council has approved significant GST rate cuts across a wide range of goods, including dairy products, nuts, sugar, chocolates, footwear, textiles, handicrafts, renewable energy devices, medical supplies, and agricultural machinery. The rates for these items are largely being reduced from 12-18% to 5% or Nil.

2. Products such as pan masala, aerated beverages, cigarettes, caffeinated drinks, and high-end cars will attract higher GST/cess slabs up to 40%. Bidis, however, will benefit from a concessional rate of 18%.

3. Important clarifications were made in the service sector, particularly regarding the definition of "specified premises" for restaurant services. Changes also include alignment of lottery valuation rules and updates to FAQs for enhanced taxpayer understanding.

4. The new GST rates for most goods and services will come into effect from 22nd September 2025. However, rates for pan masala, gutkha, cigarettes, and certain tobacco products will remain unchanged until compensation cess liabilities are fully cleared.

5. The Council also announced 90% provisional refunds under inverted duty cases. These will be processed using a data-driven risk analysis approach, aimed at improving liquidity for exporters and manufacturers.

For more information, Kindly refer to the attached document.

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