Front Brake Lever Problem Fixed - Brake pads touching !!!

[GZ250]

so last saturday i started with the master cylinder. took it apart. tried to push the piston (picture attached) inside with my finger but it was stuck. would not come out either, had to pull it out. the master cylinder from inside is ok, no scratch or rust. the piston itself looks good and nothing wrong but the guy on the shop might be correct that the rubber in the piston gets worn out. luckily suzuki makes the repair kit (just the piston and cup (the rubber part that you see where the brake lever pushes the piston - this is called dust cover). the cylinder itself is expensive ($100 online) but the repair kit (mainly the piston) is just $20 from Suzuki. so they ordered and it arrived on wednesday. what arrived was similar but shorter in size and i was not able to put snap ring back. so went back today (thursday) to return, they searched their stuff and found something similar to what i needed sitting there for quite sometime as the box looked old but the piston was better (slightly heavier and not plastic) and new. it was $36 but they gave me as replacement for same price $20 (benefit of working with your local shop).

Now lever is working fine, i did bleed the brake fluid for air in the hose. But now I feel and hear that the brake shoes are touching the brake rim as when i try to rotate the wheel it does not move freely and i can hear the brakes pads hisss. What is the problem now? Should I try to remove and put the pads again. the pads are perfectly ok. i checked last saturday.