Recommendations of 54th GST Council Meeting: Press Release

Jun 09, 2025

The 54th GST Council meeting, held on 9th September 2024 under the leadership of Union Finance Minister Nirmala Sitharaman, introduced several key measures aimed at simplifying tax rates, improving trade facilities, and enhancing compliance across various sectors including business, education, transport, and healthcare.

The recommendation as follows:

1) Changes in GST portal:

2) Changes in rates

3) Changes in litigation

1) Changes in GST portal:

• Launch of B2C E-Invoicing Pilot: The GST Council approved a pilot for B2C e-invoicing, building on the success of B2B e-invoicing. Until now, e-invoicing was applicable on B2B transactions for a registered person having turnover of over Rs.5 crore where now it is recommended to introduce in B2C which would provide an opportunity to the retail customers to verify the reporting of the invoice in the GST return. The pilot will start voluntarily in select sectors and states.
• Invoice Management System and New Ledgers: A new Invoice Management System (IMS) will enable taxpayers to accept, reject, or hold invoices to avail Input Tax Credit (ITC). Additionally, new ledgers, such as the Reverse Charge Mechanism (RCM) Ledger and ITC Reclaim Ledger, will help streamline reconciliation and reduce ITC mismatches. The Invoice Management System (IMS) under GST implemented on the GST Portal from 1st October 2024. It is available in Gst portal:

2) Changes in rates:

• Life & Health Insurance: GoM to review, submit the report by the end of October 2024.
• Commercial Property Rent: RCM applicable when rented by unregistered to registered persons.
• Flying Training: Exempted for DGCA-approved organizations.
• R&D Services: Exempted for specified entities using Govt. or private grants.
• Preferential Location Charges (PLCs): Treated as part of a composite supply.
• Education Affiliation by certain bodies: Exempted, provided by State/Central educational boards, educational councils, and other similarly placed bodies to Government Schools prospectively.
• Foreign Airline Services: Import exempt for branch offices without consideration from a related person.
• Goods Transport Agency (GTA) Services: Ancillary services are part of a composite supply when related to goods transport.
• Film Distribution: 'As is where is' basis; GST liability before 10/01/2021 regularized.
• Electricity Services: Exempted for services like application fees and meter rentals.

3) Changes in litigation Waiver of Interest/Penalty:

The GST Council recommended a waiver of interest or penalties for tax demands under Section 73 of the CGST Act for FYs 2017-18 to 2019-20 as per section 128A of CGST Act. The registered persons can avail the said benefit under sec 128A if such person make the payment of tax before 31.03.2025. A circular will clarify the procedure for availing the waiver, and the related provisions of the Finance (No. 2) Act, 2024, are effective from 01.11.2024. the taxpayers are required to file an application in FORM GST SPL-01 or FORM GST SPL-02, respectively on the common portal within three months from notified date, which is 31.03.2025. effective from date 1st Nov 2024(Notification No. 20/2024 dated. 8th October 2024)

Rectification of Orders on Input Tax Credit:

The GST Council recommended a special procedure for rectifying orders where input tax credit (ITC) was wrongly denied under Section 16(4) of the CGST Act. This applies to cases where ITC is now eligible under newly inserted subsections (5) and (6) of Section 16, retrospectively with effect from 01.07.2017. The said person shall file, electronically on the common portal, within a period of six months from the date of issuance of the notification (notification: No. 22/2024– CENTRAL TAX)

IGST Refunds on Exports:

The Council clarified that exporters who paid IGST and compensation cess on imported inputs—initially exempt under concessional notifications—can claim IGST refunds. The Council also recommended omitting rules 96(10), 89(4A), and 89(4B) from CGST Rules to simplify the refund process for exports.

Issuance of Circulars for Clarity:

The GST Council recommended issuing circulars to clarify key issues such as:

• Place of supply for advertising services provided by Indian companies to foreign entities.
• Availability of input tax credit on demo vehicles.
• Place of supply for data hosting services provided to foreign cloud computing service providers.

Amendments in CGST Rules:

Further amendments to CGST Rules were recommended to address various implementation issues and ensure smoother GST operations.

Conclusion

The 54th GST Council meeting introduced measures that streamline GST compliance, clarify tax rates, and provide relief to sectors like healthcare and education. The recommendations aim to enhance taxpayer ease, reduce tax burdens, and improve the overall effectiveness of the GST framework, benefiting both businesses and individuals.