The Department of Animal Husbandry & Dairying (DAHD) on September 09, 2025, issued FAQs on GST Rate Rationalisation based on recommendations of GST Council in its 56th meeting.
The following FAQs are as stated:
• Is there any change in threshold of the registration required for goods under CGST Act, 2017?
No, there is no change in threshold of the registration required for goods under CGST Act, 2017.
• Which notification provides for the revised rates?
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?
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?
The IGST on imported goods will be the GST rates as notified in the rate notification except where IGST rate has been exempted separately.
• The GST rate has been reduced on my outward supply of goods/services made on or after September 22, 2025 but I already have ITC of GST in ledger that accrued on account of higher rate. Can I continue to use such credit?
The input tax credit once duly availed in e-credit ledger can be used for discharge of any output tax liability in terms of provisions of section 49(4) of CGST Act and rules made thereunder.
• My outward supply is exempt under new rate schedule. But I already have ITC of GST paid in my ledger. Will I need to reverse ITC?
The ITC can be utilized to discharge outward liability for supplies of goods/services or both made till 21st September, 2025. However, for supplies made on or after i.e September 22, 2025 when the rate change is effected, ITC will have to be reversed as per provisions of CGST Act, 2017.
• If I already have stock on the date when rate changes come into effect, should I apply the revised rate?
GST is levied on supply. Therefore, on goods supplied on or after the revised GST rates are notified, the new GST rates will be applicable on the outward supplies of goods/services or both.
• What is the reason for 40% rate on ‘other non-alcoholic beverages’?
The principle behind the recent rate rationalisation exercise is to keep similar goods at the same rate to avoid issues of misclassification and disputes. This has also been applied to ‘other non-alcoholic beverages’.
What is the GST rate on food preparations not elsewhere specified in any of the schedules?
Food preparations not elsewhere specified will attract a GST rate of 5%.
For more FAQs, please refer to the document below.
