The 55th GST Council meeting was held in Jaisalmer on 21st December 2024. The Council primarily focused on resolving long-pending issues and providing critical clarifications, including easing compliance, rationalizing rates, and facilitating trade. Key recommendations include the following:
‣ Retrospective Amendment Restricting Input Tax Credit on Construction Expenses, Overturning the Supreme Court's Safari Retreats Ruling
‣ Recommendation to Increase GST Rate to 18% on Sale of All Old and Used Vehicles, Including Electric Vehicles (EVs)
‣ Removal of Reverse Charge on Sponsorship Services to Simplify Compliance
‣ Reduction in Cess for Merchant Exporters to Lower the Cost of Doing Business
‣ Clarity Introduced on Voucher Taxation
‣ Exemptions Provided for Small Transaction Fees by Payment Aggregators
‣ Simplified Registration Processes for Small Businesses
‣ Inclusion of Input Matching System (IMS) Provisions in GST Legislation, Impacting Compliance Dynamics
