GST Compendium: January 2025

The January edition of the GST Compendium provides key insights into recent developments in tax legislation and judiciary rulings. It discusses significant decisions from the 55th GST Council meeting, including amendments to ITC provisions and reforms aimed at easing taxpayer burdens. The compendium also examines notable court judgments and their implications for businesses, as well as updates on customs and direct tax policies.

Key highlights of the GST Compendium January 2025

• Important updates/announcements: During the 55th GST Council meeting, the Council proposed significant changes, including retrospective amendment in the blocked credit provisions to replace ‘plant or machinery’ with ‘plant and machinery,’ an amendment in the ISD provisions to explicitly include inter-state RCM transactions, lowering the pre-deposit requirement for filing the appeal in penalty for cases related to detention and seizure of goods or conveyance.
• Key judicial pronouncements: The Gujarat High Court has held that the assignment of leasehold rights does not constitute a ‘supply of service’ under the GST framework. The HC observed that leasehold rights are a form of immovable property, and their assignment is akin to a sale rather than a service.
• Significant updates in direct taxes: The CBDT has exempted certain organisations and agencies from the TDS requirement on cash withdrawals exceeding INR 1 crore. Additionally, the CBDT has provided extension of due date for determining amount payable under the Vivad Se Vishwas Scheme, 2024 till 31 January 2025.

This edition also features our experts’ analysis unraveling the impact of the GST Council's recommendations from its 55th meeting.

GST Compendium: January 2025