55th GST Council Meeting: Key Recommendations
Date: December 21, 2024
Category: 55th GST Council
Read Time: 4 Minutes
The 55th GST Council Meeting, chaired by Union Finance Minister Smt. Nirmala Sitharaman, was convened in Jaisalmer, Rajasthan, on December 21, 2024. Several significant decisions were made to address ongoing concerns and policy adjustments.
Major Recommendations
- Extension of GST Compensation Restructuring Timeline
The Council approved an extension for the Group of Ministers (GoM) on GST Compensation Restructuring.
The new deadline for final recommendations is June 30, 2025.
- Formation of GoM for Natural Disaster Levy
On the request of the State of Andhra Pradesh, the Council recommended forming a GoM to develop a uniform policy for levies in the event of natural disasters or calamities.
The GoM will examine legal and structural issues related to such levies.
- Measures for IGST Settlement
The Council accepted recommendations from the committee of officers addressing State concerns over IGST settlement issues.
The Council directed the committee to conclude all changes by March 2025.
Implications
GST Compensation Restructuring: The extension provides States with more time to address concerns over revenue shortfalls and propose solutions.
Natural Disaster Levy: A uniform policy will ensure clarity and consistency in disaster-related levies across States, reducing confusion and disputes.
IGST Settlement: Resolving inter-state GST settlement issues will streamline revenue allocation and minimize conflicts.
These measures reflect the GST Council’s commitment to resolving structural challenges and improving the GST framework.
