CBIC Issues FAQs-3 to Clarify GST Rate Changes, Exemptions, Handicrafts, and Compensation Cess Notifications Effective September 22, 2025

The Central Board of Indirect Taxes and Customs (CBIC) released the third set of Frequently Asked Questions (FAQs-3) to provide guidance on GST-related changes notified on 17th September 2025, effective from 22nd September 2025. These FAQs aim to clarify new CGST rates for various goods and services, list exemptions, and provide specific instructions for sectors like handicrafts to support artisans and small-scale producers. Key points include Notification No. 9/2025-Central Tax (Rate) for revised CGST rates, Notification No. 10/2025-Central Tax (Rate) for exempted goods, and Notification No. 13/2025-Central Tax (Rate) for handicrafts. Additionally, Notification No. 2/2025-Compensation Cess amends the rates of compensation cess applicable on goods and services. The FAQs also clarify GST rates for imported goods like petroleum products and bricks under the special composition scheme. These clarifications ensure that taxpayers, businesses, and industry stakeholders comply accurately with the updated GST framework, reducing disputes and errors in filings. The FAQs serve as a comprehensive guide for understanding the scope, applicability, and exemptions under the revised GST notifications, ensuring smooth transition to the new rates while maintaining transparency and compliance.