Q1. Do medicines in stock before 22nd Sept 2025 need re-labelling of MRP?

• No recall/re-labelling required for medicines already released before 22nd Sept 2025.
• Manufacturers must issue revised price lists (Form V/VI) to retailers/dealers and State Drug Controllers.
• Retailers must ensure they sell at the new compliant price.
  👉 Example: If a strip of tablets had MRP ₹100 earlier, and after GST rate cut the revised MRP is ₹95, the retailer must sell it at ₹95, even if the printed MRP is higher.

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Q2. GST on drones

• Earlier, drones had different GST rates (28%, 18%, 5% depending on use).
• Now: Uniform GST of 5% on all drones (personal, commercial, with or without camera).

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Q3. GST on bricks

• Special scheme continues (from 1st April 2022):
  • 6% without ITC
  • 12% with ITC
  • Threshold limit: ₹20 lakhs (not ₹40 lakhs).
• Only change: Sand lime bricks reduced from 12% → 5%.

📊 Table: GST on Bricks

Type of Brick	Rate without ITC	Rate with ITC
Normal Bricks	6%	12%
Sand Lime Bricks	—	5%

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Q4 & Q5. Life & Health Insurance

• Exempted: Services of individual life & health insurance (including family cover).
• Reinsurance services also exempt.
• Other input services like commissions & brokerage → ITC reversal required.

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Q6 & Q7. Hotel rooms ≤ ₹7500/day

• GST: 5% without ITC (mandatory).
• No option to charge 18% with ITC.
• ITC not allowed on such rooms.

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Q8 & Q9. Beauty & Well-being Services

• Rate: 5% without ITC (mandatory).
• ITC on inputs partly used for these services must be reversed proportionately (as per Section 17(2), CGST Act).

👉 Example: If a salon spends ₹10,000 on inputs (GST = ₹1800) and 50% usage is for exempt 5% services, then only ₹900 ITC can be claimed, the other ₹900 must be reversed.

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Q10. Job Work – Bus Body Building

• Rate: 18% with ITC.
• Earlier it was separately listed, but now merged into general 18% job work services.

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Q11. Job Work – Bricks

• If main supply attracts 5% (like sand lime bricks) → Job work also at 5% with ITC.

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Q12 to Q14. Multimodal Transport of Goods

• If NO air transport involved:
  • GST = 5% with restricted ITC (only up to 5% of freight value on transportation services).
• If air transport involved:
  • GST = 18% with full ITC.

📊 Example Table: Multimodal Transport

Case	Freight Value	GST Rate	ITC Available
Rail + Road (no air)	₹1200	5%	Only up to 5% of freight on inputs (e.g. ₹30 on GTA, not full)
Air + Road	₹1200	18%	Full ITC (e.g. ₹36 on GTA + ₹144 on Air)

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Q15 to Q17. Local Delivery Services via ECO

• If supplier is unregistered & service through ECO → GST payable by ECO (Section 9(5)).
• Rate: 18% in all cases.
• ECO delivering goods is not GTA.

👉 Example: A small delivery boy (unregistered) works via Swiggy Genie (ECO). GST @ 18% will be paid by Swiggy, not the boy.

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Q18. Leasing/Renting (without operator)

• Rate = Same as supply of goods.
  👉 Example:
  • If machine attracts 18% GST → renting machine (without operator) also 18%.
  • If car attracts 5% → renting (without operator) also 5%.

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Q19. Leasing/Renting Car (with operator)

• Two options for supplier:
  1. 5% GST with ITC only on input services in the same line of business (e.g., tour operator expenses).
  2. 18% GST with full ITC.

GST Council FAQs-2 (Quick Reference Cheat Sheet)

Q No.	Subject	GST Rate	ITC Treatment	Key Point / Example
Q1	Medicines (stock before 22.09.25)	Revised MRP	Not applicable	No re-labelling/recall needed; only issue revised price list.
Q2	Drones	5% (all drones)	Normal ITC	Earlier 5–28%; now uniform 5%.
Q3	Bricks	6% w/o ITC OR 12% w/ ITC	Depends on choice	Sand lime bricks cut to 5%. Threshold = ₹20L.
Q4–5	Life & Health Insurance (individual)	Exempt	Reinsurance exempt; others ITC reversed	Only individual/family policies exempt.
Q6–7	Hotels ≤ ₹7500/day	5%	No ITC	Mandatory; no option for 18% with ITC.
Q8–9	Beauty & wellness services	5%	No ITC (proportionate reversal if mixed)	No option for 18% with ITC.
Q10	Job work – Bus body building	18%	Full ITC	Specific entry removed, now residual 18%.
Q11	Job work – Bricks	5% (if main supply @5%)	With ITC	E.g., sand lime bricks job work.
Q12–13	Multimodal transport (no air)	5%	Restricted ITC (only 5% of freight value on inputs)	Eg. Freight ₹1200 → GTA input ITC capped at ₹30.
Q14	Multimodal transport (with air)	18%	Full ITC	Eg. Freight ₹1200 → GTA ITC ₹36 + Air ITC ₹144.
Q15–17	Local delivery via ECO	18%	Normal ITC	If supplier unregistered → GST paid by ECO (Sec. 9(5)). Not GTA.
Q18	Leasing/Renting w/o operator	Same as goods	Normal ITC	Eg. Machine 18% → renting (w/o operator) also 18%.
Q19	Leasing/Renting car with operator	Option: 5% (limited ITC) OR 18% (full ITC)	ITC allowed depending on option	Flexibility for supplier.

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In summary:

• Many services like hotels, beauty services, insurance → fixed at 5% without ITC.
• Transport sector clarified with separate rules for multimodal & ECO deliveries.
• Bricks & medicines got targeted relief.
• Leasing/renting continues to follow rate of goods, except cars with operators have flexible options.