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The 55th GST Council meeting held in Jaisalmer on December 21, 2024, introduced several key recommendations and decisions impacting GST laws, rates, and exemptions. Here’s a summary of the significant takeaways:
Key Exemptions and Rate Revisions
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Exemptions from GST:
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Transactions involving vouchers.
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Gene therapy services.
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Penal charges by banks and NBFCs.
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Sponsorship services by body corporates under forward charge (currently under reverse charge).
Taxpayer-specific changes:
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Taxpayers under the composition scheme are exempted from the reverse charge mechanism for renting commercial/immovable properties from unregistered persons, effective October 10, 2024.
Hotel and Restaurant Services:
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The definition of declared tariff for hotels has been omitted.
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From April 1, 2025, restaurant services in hotels will have two GST rate options:
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18% with ITC.
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5% without ITC.
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The choice applies to the respective financial year.
Used Vehicle Sales:
Additional Exemptions:
Amendments and Clarifications
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Law Amendments:
Input Service Distribution (ISD):
Temporary Identification Numbers:
Compliance Facilitation:
GSTAT and Other Decisions
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GST Appellate Tribunal (GSTAT):
Pending Issues:
Policy Development and Future Directions
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Compensation Cess:
Natural Disaster Levy:
Implementation Timeline
These changes will be implemented after necessary law amendments, notifications, or clarifications.
For businesses and stakeholders, it is essential to stay updated on notifications and implementation schedules for compliance.
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