Key Rate Changes and Amendments Following the 55th GST Council Meeting
Home > Key Rate Changes and Amendments Following the 55th GST Council Meeting
January 28, 2025
1. Rate Decreased:
| S No. | Goods/Services | Before (Rate/Condition) | After (Rate/Condition) |
|---|---|---|---|
|
1 |
Fortified Rice Kernels |
18% |
5% |
|
2 |
Gene therapy to treat life-threatening diseases |
Taxable |
Exempted |
|
3 |
Food items going into preparation for free
distribution to weaker sections under a
government program subject to the existing
conditions. |
As applicable |
5% |
|
4 |
Fresh or dried black pepper/dried raisins when
supplied by agriculturist |
5% |
No liable to GST |
|
5 |
Approved skill training partners of NSDC |
18% |
Exempted |
|
6 |
Sub-systems of Long-Range Surface to Air
Missile (LRSAM) and similar software |
Taxable |
Exempted |
2. Rate Increased:
| S No. | Goods/Services | Before (Rate/Condition) | After (Rate/Condition) |
|---|---|---|---|
|
1 |
ACC blocks (concrete) containing more
than 50% fly ash content |
5% |
12% |
3. Rates Clarified:
| S No. | Goods/Services | Before (Rate/Condition) | After (Rate/Condition) |
|---|---|---|---|
|
1 |
Sale of used Electric Vehicles (EV) by and
to individuals |
As applicable |
5% |
|
2 |
Sale of used EV by businesses after
refurbishment |
12% |
18% on their profit |
|
3 |
Bank/NBFC penal charges for loan defaults |
As applicable |
Exempted |
4. RCM Amendment related to Sponsorship Services-
Before Amendment:
| Nature of service | Supplier | Recipient |
|---|---|---|
|
Services provided by way of sponsorship
to any body corporate or partnership
firm. |
Any person |
Any body corporate or
partnership firm located in the
taxable territory. |
After Amendment (w.e.f.16-01-2025):
| Nature of service | Supplier | Recipient |
|---|---|---|
|
Services provided by way of sponsorship
to any body corporate or partnership
firm. |
Any person other than a
body corporate |
Any body corporate or
partnership firm located in the
taxable territory. |
SBC Comments:
a. Corporates providing sponsorship services must now pay GST under the Forward Charge Mechanism (FCM), replacing the earlier Reverse Charge Mechanism (RCM).
b. Corporates can avail full ITC without reversing 𝐩𝐫𝐨𝐩𝐨𝐫𝐭𝐢𝐨𝐧𝐚𝐭𝐞 𝐈𝐧𝐩𝐮𝐭 𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭 (ITC) under Section 17(2) of the CGST Act, 2017.
5. Amendment related to
Composite Dealers-
Before Amendment:
| Nature of service | Supplier | Recipient |
|---|---|---|
|
Service by way of renting of any
immovable property other than
residential dwelling. |
Any unregistered person |
Any registered person |
After Amendment (w.e.f.16-01-2025):
| Nature of service | Supplier | Recipient |
|---|---|---|
|
Service by way of renting of any
immovable property other than
residential dwelling. |
Any unregistered person |
Any registered person other than a person who has opted to pay tax under
composition levy |
SBC Comments:
a. Renting or leasing of immovable property by unregistered persons to composite dealers is now excluded from the scope of RCM.
b. Composite dealers benefit from 𝐫𝐞𝐝𝐮𝐜𝐞𝐝 𝐆𝐒𝐓 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬 and simplified reporting, promoting ease of doing business for smaller taxpayers.
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