GST Compendium: February 2025

The February 2025 edition of the GST Compendium offers expert insights into the Union Budget’s key provisions and their implications for India’s financial landscape. This edition also sheds light on the recent CBIC notifications and circulars giving effect to GST Council meeting recommendations and other latest developments in customs, direct taxes, and international taxation, providing businesses and taxpayers with a comprehensive view of the evolving regulatory framework.

Key highlights of the GST Compendium February 2025

• Important updates/announcements: Following the recommendations of the 55th GST Council Meeting, the CBIC has rolled out a series of notifications and circulars to implement key changes. These include revisions in GST rates for various goods and services, new exemptions, the introduction of forward charge on sponsorship services provided by body corporates, and measures to regularize past dues, among others.
• Key judicial pronouncements: The Delhi High Court has clarified that fees charged by electricity commissions, including those for licenses and tariffs, do not amount to ‘supply’ under the CGST Act, 2017, making them GST-exempt. The court highlighted that these commissions operate as regulatory bodies, carrying out statutory responsibilities under the Electricity Act, 2003—such as issuing licenses and determining tariffs—solely in the public interest, rather than as commercial enterprises.
• Significant updates in direct taxes: Recent clarifications under the Vivad se Vishwas Scheme, 2024, and updates on presumptive taxation for NR cruise operators and TCS exemptions for IFSC units bring much-needed clarity. On the international tax front, fresh guidance on the Principal Purpose Test (PPT) for India’s tax treaties aims to prevent treaty abuse while fostering certainty in cross-border transactions.

GST Compendium: February 2025