Introduction
The much awaited 55th Goods and Services Tax (GST)
council meeting was held on 21 December 2024 at Jaisalmer. Though
the Group of Ministers (GoM) on GST rate rationalisation postponed
the submission of its report to the GST council, it sought to
address some immediate issues which require change in law,
clarification for reduction in tax disputes, ease of tax compliance
and rate rationalisation for certain goods and services.
This ERGO intends to summarise some of the key proposals made by
the GST council.
I. Measures pertaining to Law and Procedure
A. Amendment to Section 17(5)(d)
The phrase "plant or machinery" used in Section
17(5)(d) of the Central Goods and Services Tax Act, 2017 (CGST Act)
will be replaced with the phrase "plant and machinery",
retrospectively, with effect from 01 July 2017.