Place: Jaisalmer, Rajasthan

Summary of Points Finalized

1. Ratification of Notifications, Circulars, and GIC Decisions

The Council ratified 13 Central Tax Notifications, 5 Central Tax (Rate) Notifications, 5 Integrated Tax (Rate) Notifications, 5 Union Territory Tax (Rate) Notifications, and 9 Circulars issued after the 54th meeting. It also took note of 7 decisions of the GST Implementation Committee (GIC).
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2. Amendment to Section 17(5)(d) – Input Tax Credit on Construction

The Council approved retrospective amendment (from 1 July 2017) replacing the phrase “plant or machinery” with “plant and machinery” in Section 17(5)(d) of CGST Act to align it with the legislative intent clarified by the Supreme Court in Safari Retreats Pvt. Ltd. case.
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3. Amendment in Schedule III – Warehoused Goods in SEZ/FTWZ

Council approved retrospective amendment (from 1 July 2017) to treat supplies of goods warehoused in SEZ/FTWZ before removal to DTA or export as “neither supply of goods nor services”.
No refund shall be admissible for taxes already paid on such transactions before notification.
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4. Track and Trace Mechanism for Evasion-Prone Commodities

Council approved insertion of Section 148A and penalty Section 122B in CGST Act to introduce a Track and Trace Mechanism for specified commodities. The system aims to monitor tax evasion in sectors like tobacco and pan masala.
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5. Clarification on ITC Reversal by E-Commerce Operators

Council approved issuance of a circular clarifying that e-commerce operators are not required to reverse ITC proportionately under Section 17(1) or 17(2) for services where they pay tax under Section 9(5). 55th GST Council Meeting, page 9

6. Amendment – Pre-Deposit for Penalty Appeals

Council approved amendment in Sections 107(6) and 112(8) of CGST Act requiring 10% pre-deposit for appeals against orders demanding only penalty (no tax demand).
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7. Clarification of ‘Local Fund’ and ‘Municipal Fund’

Council approved insertion of explanation in Section 2(69)(c) of CGST Act defining Local Fund and Municipal Fund to remove ambiguity.
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8. Input Service Distributor (ISD) – Inclusion of Inter-State RCM

Council approved amendments to include inter-State reverse charge mechanism (RCM) supplies under the ISD framework, effective from 1 April 2025.
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9. Temporary Identification Number for Non-Registered Persons

Council approved new Rule 16A to allow generation of Temporary Identification Number (TIN) by tax officers for unregistered persons to make GST payments.
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10. Amendment for Composition Taxpayers (CMP-02)

Council approved amendment in Rule 19(1) allowing composition taxpayers to change “Category of Registered Person” in FORM CMP-02 through FORM REG-14.
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11. Clarification on Ex-Works (EXW) Contracts

Council approved circular clarifying that under Ex-Works contracts, goods delivered at supplier’s premises are deemed “received” by the buyer for ITC eligibility under Section 16(2)(b).
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12. Online Services – Place of Supply

Council approved circular mandating correct declaration of State name and place of supply for online services supplied to unregistered recipients, with penalties for non-compliance.
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13. GST on Vouchers

Council approved omission of Sections 12(4), 13(4), and Rule 32(6); clarified that vouchers themselves are not taxable, but underlying goods/services are.

14. Late Fee for FORM GSTR-9C

Council approved circular and notification to waive excess late fee for FY 2017–18 to 2022–23 if GSTR-9C is filed before 31 March 2025.
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15. Invoice Management System (IMS)

Council approved amendments to formalize IMS under GST law to improve ITC reconciliation and data validation through GSTR-2B and GSTR-3B linkage.
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16. Risk-Based GST Registration

Council approved concept note for introducing risk-based registration categories to curb fraudulent ITC claims and strengthen compliance systems.
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