GST 2.0:
CBIC clarifies social media claims about transition benefits under revised GST rules are false
Sep 8, 2025
Synopsis
The CBIC has refuted a viral social media message claiming new GST transition benefits would be applicable from September 22, 2025, deeming it factually incorrect and misleading. The GST council approved 'next-gen' reforms on September 3, 2025, including a shift to a two-slab tax structure.
The Central Board of Indirect Taxes and Customs (CBIC) has dismissed a viral message circulating on social media that claimed that the new transition benefits under the revised GST rules will be applicable from September 22, 2025.
Social media users are sharing a phoney message purporting to be sent from the chairman of the CBIC. The message claims that new GST transition benefits, including the unutilised cess credit, the ITC of exempt supply, and new price adjustment provisions will take effect on September 22, 2025.
CBIC said that such claims are factually incorrect and misleading.
The CBIC clarified in an official statement, “It has come to notice that an informal message claiming to be from Chairman CBIC is being widely circulated on social media claiming that certain Transition Benefits under GST will be applicable from 22nd September 2025 on issues related to: Unutilised cess credit, ITC of exempted supplies; new price adjustment provisions, etc.
“It is hereby informed that such claims are factually incorrect and misleading.”
Also, CBIC has requested that the general public, members of the trade and industry communities and other stakeholders should only refer to the official Government-issued notifications, circulars, FAQs, etc., for the better understanding of the next-generation reforms under GST.
The GST council meeting last week announced a two-slab structure of the tax- 5% and 18%.
While the council cut GST on many household essentials, the tax was also cut on a number of life-saving drugs.
CBIC is the body that collects GST.
GST council meeting key announcements
The 56th meeting of the GST council, chaired by Union Finance Minister Nirmala Sitharaman, approved the ‘next-gen’ GST reforms on September 3, 2025.
According to a statement from the Press Information Bureau (PIB), “The shift to a two-slab system of 5% and 18%, removing the earlier 12% and 28% rates, will make taxation more transparent and easier to follow.”
The statement also said that at the same time, 40% GST on luxury and sin goods such as pan masala, tobacco, aerated drinks, high-end cars, yachts, and private aircraft ensures fairness and revenue balance.
Along with that, registration and return filing have been simplified, refunds have been made faster, and compliance costs have been reduced, easing the burden on businesses, especially MSMEs and startups, the statement further says.
Important FAQs on GST 2.0 from PIB website
When will the changes in GST rates come into force?
As per the recommendations made in the 56th GST council meeting, the changes in GST rates on services and goods other than cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi will be effective from September 22, 2025. For the specified goods namely, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi, for which the existing rates of GST and compensation cess will continue to apply and the new rates will be implemented at a later date to be notified, based on discharging of entire loan and interest liabilities on account of compensation cess.
[The Economic Times]
