CA Aman Rajput
The 55th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, was held on 21st December 2024 in Jaisalmer, Rajasthan
Key changes and amendments are
Goods in Transit
Goods handed over to the transporter are deemed received by the buyer for ITC purposes, provided ownership transfers at this point
If the supplier is responsible for delivery, ITC eligibility arises only upon actual receipt of goods
Declared Tariff Definition Omitted (Effective 01.04.2025)
1. Value of actual supply to be considered instead of declared tariff
2. GST on restaurant services at 18% with ITC for accommodations exceeding ₹7500/year
3. Hotels may opt for 18% GST with ITC on restaurant services by prior declaration
GST Rate Changes
GST on old cars (including EVs) increased from 12% to 18% for specified vehicle categories (e.g., petrol/diesel vehicles meeting size and engine capacity criteria)
Evasion-Prone Commodities Tracking
- A unique Identification Marking system was introduced for tracking commodities throughout the supply chain
- Pre-packaged and labelled goods under 25 kg/ltr. for retail sales to comply with declarations under the Legal Metrology Act
Now what is the Legal Metrology Act?
The Legal Metrology Act was enacted to establish standards of weights and measures and regulate trade and commerce in weights, measures, and other goods that are sold or distributed by weight, measure, or number
Popcorn-related clarification by the council
- Loose plain, salted, or spiced popcorn: 5% GST
- Pre-packaged plain or spiced popcorn: 12% GST
- Caramelized popcorn: 18% GST
This change is a big question and a matter of debate in public!
Voucher-related transactions
- Not treated as a supply of goods or services
- GST applies only to agent commission
- Unredeemed vouchers not subject to GST
What is your viewpoint on these changes? Comment below.
The author can also be reached at aman.rajput@mail.ca.in
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