Key Highlights of the 55th GST Council Meeting

The 55th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, was held on December 21, 2024, in Jaisalmer, Rajasthan. Here are the key takeaways:

Rate Changes

~ Fortified Rice Kernels: GST rate reduced to 5%.

~ AAC Blocks (50% Fly Ash): GST rate lowered to 12%.

~ Ready-to-Eat Popcorn:

Unpackaged: 5% GST.

Pre-packaged & Labeled: 12% GST.

Caramel/Flavored Varieties: 18% GST.

~Used Cars & EVs: GST rate increased from 12% to 18%. (resale by businesses)

But, Purchase of new EVs attracts 5% GST only.

~ To bring supply of the sponsorship services provided by the body corporates
under Forward Charge Mechanism.

GST Exemptions

~ Life-saving Drugs & Gene Therapy: Fully exempt.

~ Supplies to Merchant Exporters: Compensation Cess reduced to 0.1%.

~ Penal Charges from borrowers by Banks: Exempt from GST.

~ Payment Aggregators: Exempt for transactions below ₹2,000.

~ Fresh Green & Black Pepper: Supplied by agriculturists exempted.

Pending Discussions

~ Aviation Turbine Fuel (ATF): No consensus.

~ Insurance Premium Rate Cuts: Decision deferred.

~ Real Estate (FSI): Awaiting inputs for rationalization.

Administrative Reforms

~ Approval of a simplified GST registration process for small businesses.

~ Amended definition of “pre-packaged and labeled” for better clarity.

~ waiver of late fee on delayed furnishing of FORM GSTR-9C for the period from 2017-18 to 2022-23 u/s 128 of the act

~Amendment in Sec17(5)(D) replace ‘Plant or Machinery’ with ‘Plant & Machinery’

~ Amendment in Sec 38, Rule 60, Sec 34(2), and add new rule 67B in purusuant to new functionality IMS.

This meeting marks a significant step toward simplifying compliance while addressing industry-specific concerns.

As GST evolves, businesses must stay updated to ensure compliance and seize opportunities for optimization.