Top Stories 55th GST Council Meeting: Agenda, Time and Venue The GST Council is set to hold its 55th Meeting soon By Manu Sharma – On December 18, 2024 1:12 pm – 2 mins read The 55th Goods and Services Tax ( GST ) Council Meeting is set to take place on 21st December, 2024 at Jaisalmer, Rajasthan. The GST Council is set to discuss and likely approve the rules for implementing the Invoice Management System ( IMS ) during the meeting. The IMS is implemented to tackle fake invoicing and avoid tax evasion under the GST framework, according to Council sources. Launched in November, the system is designed to streamline invoice reporting and improve compliance through real-time validation and cross-verification. The GST law committee has finalized the rules, and they are on the agenda.
IMS is our strategic solution to combat fake invoicing. Once fully operational, it will eliminate fake invoicing and prevent revenue losses, as per sources. Complete Draft Replies of GST ITC Related Notices, Click Here The IMS facilitates the automatic reflection of invoices in corresponding GST returns, enabling real-time cross-verification of supplier data. By identifying discrepancies, it aims to reduce fraudulent input tax credit ( ITC ) claims, which have been a longstanding challenge for the GST system. Initial system modifications for IMS were approved in the previous meeting. The official added that the implementation has received positive feedback from taxpayers and experts. Complete Draft Replies of GST ITC Related Notices, Click Here Among the other significant issues, to be discussed, as revealed by unofficial sources are the following: Rate Reduction for Hybrid Vehicles: A proposal to lower GST rates on hybrid vehicles to promote sustainable transportation. GST on Life Insurance Premiums: Deliberation on the demand to reduce or exempt GST on life insurance premiums. Inverted Duty Structure: Addressing the inverted duty structure in the textile and pharmaceutical industries, which has been a long-standing concern for these sectors. Compensation Cess: A review of the status and position of compensation cess and its future course of action.
GST on Foreign Branch Office Transactions: Clarity on GST applicability for related-party transactions, including those in airlines, shipping lines, and IT companies. Exemption for Foreign Airlines: A recommendation to exempt foreign airlines from paying taxes on certain services imported from their overseas Indian branches or related entities when no monetary payment is involved. This follows extensive deliberations by the fitment committee and could provide significant relief, especially as some airlines have received tax notices from the Directorate General of GST Intelligence ( DGGI ). Health Insurance Premium GST: The issue of imposing GST on health insurance premiums remains unresolved. Several political leaders, including Union Minister Nitin Gadkari and West Bengal Chief Minister Mamata Banerjee, have urged Finance Minister Nirmala Sitharaman to reconsider the tax. However, consensus has yet to be achieved. Online Gaming Taxation:
The taxation framework for the online gaming sector, introduced in October 2023, is overdue for review. Companies in this sector have raised concerns over staggering tax liabilities, reportedly totaling Rs 1.5 lakh crore, with some casino operators facing liabilities exceeding their annual revenues. A final decision on managing these liabilities has been pending. However, sources cited that the following matters will not be taken up for discussion in this meeting — Rate Rationalisation: Although considered vital, the discussion on overall rate rationalisation may not progress during this meeting, as it was deferred in the 53rd meeting. Clarifications on Redevelopment Projects: Tax positions for redevelopment projects and development rights are also expected to remain unresolved in this session.