FAQs-2 on decisions of 56th GST Council
                     FAQs-2 on decisions of 56th GST Council
The Ministry of Finance has released a second set of Frequently Asked Questions (FAQs) to clarify 
key decisions from the 56th GST Council meeting. The new guidelines cover a range of 
sectors, from pharmaceuticals and construction to services and logistics. Regarding 
medicines, the National Pharmaceutical Pricing Authority (NPPA) has stated that while 
manufacturers must revise the Maximum Retail Price (MRP) to reflect new GST rates, it is not 
mandatory to recall or re-label existing stocks in the supply chain if price compliance can be 
ensured at the retail level. The GST Council has also introduced uniform tax rates for several 
products. The GST rate on all types of drones has been unified at 5%, a significant change 
from the previous rates of 5%, 18%, and 28%. Similarly, the special composition scheme for 
bricks remains in effect, with a GST rate of 6% without Input Tax Credit (ITC) or 12% with ITC. 
However, the rate on sand lime bricks has been specifically reduced from 12% to 5%. In the 
service sector, the GST rate for beauty and physical well-being services is now a mandatory 
5% without ITC.
Further clarifications were provided for the insurance and hospitality sectors. Services for 
individual life and health insurance are now exempted from GST, and the exemption also 
extends to reinsurance services. This means that insurers will need to reverse ITC for other 
inputs. For hotels, accommodation units valued at ₹7,500 or less per unit per day must 
mandatorily charge a 5% GST rate without ITC, eliminating the option to charge 18%. The 
FAQs also detail new rules for multimodal transport, where a 5% GST rate applies with limited 
ITC if no air travel is involved, while an 18% rate with full ITC is applicable if at least one leg is 
by air. Lastly, the liability for GST on local delivery services provided by unregistered suppliers 
through e-commerce operators has been placed on the e-commerce operator. Also Read: 1. 
FAQs 1 on decisions of 56th GST Council Meeting 2.  FAQ-3: GST Rate Updates for Goods & 
Handicrafts – 56th Council 3. FAQs 4: GST Rate Revision: New Advisory Allows Voluntary 
Sticker Updates on Unsold Stock
Q.1 Is it required to recall and re-label MRP on medicines already in the supply chain before 22nd September, 2025? 
How will the re-labelling be implemented? 
Answer:The National Pharmaceutical Pricing Authority (NPPA) vide OMs dated 12.9.2025 and 13.9.2025 have clarified the 
following: All manufacturers/ marketing companies selling drugs/ formulations shall revise the Maximum Retail Price (MRP) 
of drugs/formulations (including medical devices). The manufacturers/ marketing companies shall issue revised price list or 
supplementary price list, in Form V/VI, to dealers and retailers for display to consumers, and to State Drug Controllers and 
the Government, reflecting the revised GST rates and revised MRP. Recalling, re-labelling, or re-stickering on the label of 
container or pack of stocks released in the market prior to 22nd September, 2025 is not mandatory, if manufacturer/ 
marketing companies are able to ensure price compliance at the retailer level. The OMs are available in the website of the 
National Pharmaceutical Pricing Authority (NPPA) under Department of Pharmaceuticals:
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Q.2 Unmanned aircrafts (Drones) attracted 5%, 18% and 28% GST rate. The 56th GST Council had recommended 5% GST rate on drones. 
Whether this 5% GST rate will apply to all types of drones? Answer: Earlier unmanned aircrafts for personal use attracted 28% GST, 
unmanned aircrafts with digital camera/video camera recorders attracted 18% GST rate and all other unmanned aircrafts apart from 
aforementioned categories attracted 5% GST. The GST council in its 56th meeting held on 03.09.2025 has recommended uniform GST 
rate of 5% on all the drones. Q.3 What is the current GST rate on bricks? Answer: A Special Composition Scheme on supply of the bricks 
(other than sand lime bricks) was implemented w.e.f 1st April,2022 based on the Report of the Group of Ministers on Capacity Based 
Taxation and Special Composition Scheme which was accepted by GST Council in its 45th meeting held on 17th Sep 2021. Under the 
scheme, bricks attract GST of 6% without ITC and 12% with ITC with threshold limit for bricks at Rs. 20 lakhs instead of Rs.40 lakhs as is 
applicable to goods. The GST council in its 56th meeting held on 3rd September, 2025 did not recommend any change on the special 
composition scheme rates except on sand lime bricks on which GST rate has been recommended to be reduced from 12% to 5%. 
Hence, all kinds of bricks except sand lime bricks continue to attract GST of 6% without ITC and 12% with ITC with a threshold limit of 
Rs. 20 lakhs.
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