GST WEEKLY UPDATE : 42/2024-25 (19.01.2025)

-By Vipul Khandhar

• Advisory for Waiver Scheme under Section 128A:
• Taxpayer’s attention is invited to the advisory on the above subject issued by GSTN on 29.12.2024. The link for the said advisory is given here: https://services.gst.gov.in/services/advisoryandreleases/read/564

• It is to inform that both Forms GST SPL 01 and GST SPL 02 are available in the GST portal and the taxpayers are advised to file applications under waiver scheme.
•  One of the eligible conditions for filing application under waiver scheme is to withdraw the appeal applications filed against the demand order/notice/statement for which waiver application is to be submitted. In this regard, it is to inform that for the appeal applications (APL 01) filed before First Appellate authority, withdrawal option is already available in the GST portal. However, for the appeal applications (APL 01) filed before 21.03.2023, withdrawal option is not available in GST portal. For such cases, the taxpayers are advised to submit their request for withdrawal of appeal applications to the concerned Appellate Authority. The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications (i.e. filed before 21.03.2023 and not disposed off) from backend.
• Difficulty if any faced by the taxpayers may be reported to https://selfservice.gstsystem. inby raising a ticket under category “Issues related to Waiver Scheme”.  

2. KERALA STATE: E-Way Bill For Gold And Other Precious Metals Will Be Implemented W.E.F. 20.01.2025:

SGST/6282/2023: The Commissioner of State Tax, notified implementation of e-waybill for intrastate movement of gold and precious stones with effect from 1st January 2025, as per Notification No. 10/2024 dated 27-12-2024.

But, it could not be implemented due to technical issues in the portal for e-way bill generation and hence kept in abeyance vide Notification No. 1/2025-State Tax dated 08-01-2025. This notification is issued to notify a fresh date for the implementation of e-way bill for the intrastate movement of gold and precious stones.

In exercise of the powers conferred by sub-rule (1) of Rule 138F of the Kerala Goods and Services Tax Rules, 2017, the Commissioner of State Tax notified the 20th day of January, 2025 as the date from which the Notification No. 10/2024-State Tax, dated 27.12.2024, which was kept in abeyance vide Notification No. 1/2025 dated 08.01.2025, shall come into effect.

3. Recent Notifications:

Notification No. 01/2025-Central Tax (Rate) dated 16.01.2025

✅ Amendments to Notification No. 01/2017-Central Tax (Rate)

✅ Reduces the GST rate on Fortified Rice Kernel (FRK), classifiable under HSN 1904, to 5%.

✅ Amendment in the definition of ‘pre-packaged and labelled’ – to now cover all commodities that are intended for retail sale and containing not more than 25 kg or 25 liter, which are ‘pre-packed’ as defined under the Legal Metrology Act, or a label affixed thereto is required to bear the declarations under the provisions of the Act and rules.

Notification No. 02/2025-Central Tax (Rate) dated 16.01.2025

✅ Amendments to Notification No. 01/2017-Central Tax (Rate)

✅ Exempts the GST on gene therapy.

✅ This notification shall come into force with immediate effect.

Notification No. 03/2025-Central Tax (Rate) dated 16.01.2025

✅ Amendments to Notification No. 39/2017-Central Tax (Rate)

✅ Under Entry No.1, Concessional 5% GST rate had been also notified on food inputs of food preparations under HSN 19 or 21 that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.

Notification No. 04/2025-Central Tax (Rate) dated 16.01.2025

✅ Amendments to Notification No. 08/2018-Central Tax (Rate)

✅ GST rate increase from 12% to 18 % on sale of all old and used vehicles, including EVs other than those specified at 18% – has now been notified. 

Notification No. 05/2025-Central Tax (Rate) dated 16.01.2025

CBIC issued Notification no. 05/2025-Central Tax (Rate) dated 16.01.2025. It seeks to amend the notification no. 11/2017-CTR dated 28.06.2017 to provide explanation about “specified premises”. It also provides a declaration format which a registered person supplying hotel accommodation service has to declare the premises to be a ‘specified premises’

A new definition for “Specified Premises” has been introduced, which applies to financial years.

• Category (a): Premises that provided hotel accommodation in the preceding financial year, where the value of any unit of accommodation exceeded ₹7,500 per unit per day or equivalent.

• Category (b): Premises declared as “specified premises” by a registered person supplying hotel accommodation services. Such declarations must be made between January 1 and March 31 of the preceding financial year.

• Category (c): Premises declared as “specified premises” by a person applying for GST registration. This declaration must be filed within 15 days of receiving acknowledgment for the registration application.

The amendment ensures clarity in defining “Specified Premises” and provides a structured process for declarations, reflecting the government’s intent to refine tax applicability and reporting mechanisms.

• Annexure VII has been inserted – For OPT-IN DECLARATION FOR REGISTERED PERSON (Declaration by a registered person supplying hotel accommodation service before the jurisdictional GST authority declaring the premises to be a ‘specified premises’). Such declarations hall be filed by a registered person on or after 1st of January of the preceding Financial Year but not later than 31st of March of the preceding Financial Year.

• Annexure VIII has been inserted – FOR OPT-IN DECLARATION FOR PERSON APPLYING FOR REGISTRATION (Declaration by a person applying for registration before the jurisdictional GST authority declaring the premises to be a ‘specified premises’).

• Annexure IX has been inserted – OPT-OUT DECLARATION (Declaration by a registered supplier of hotel accommodation service before the jurisdictional GST authority declaring the premises as not a ‘specified premises’). Such declarations declaring g the premises as not a ‘specified premises’, for a Financial Year, shall be filed on or after 1st of January of the preceding Financial Year but not later than 31st of March of the preceding Financial Year.

This Notification shall have an immediate effect i.e. 01.04.2025.

Notification No. 06/2025-Central Tax (Rate) dated 16.01.2025:

CBIC issued Notification no. 06/2025-Central Tax (Rate) dated 16.01.2025. It seeks to amend Notification no. 12/2017-CTR dated 28.06.2017.

• ‘Exemption on contributions made by general insurance companies from the third-party motor vehicle premiums to the Motor Vehicle Accident Fund (MVA Fund) – An New Entry 36B has been inserted under NN. 12/2017-Central Tax (Rate).

• Changes made in Entry No. 25A of the NN. 12/2017-Central Tax (Rate), to change made in words “transmission and distribution” to “transmission or distribution”

• To provide exemption on services provided by “a training partner approved by the National Skill Development Corporation” in relation to the services as provided under Entry 69 of NN. 12/2017-Central Tax (Rate).

Notification No. 07/2025-Central Tax (Rate) dated 16.01.2025

CBIC issued Notification no. 07/2025-Central Tax (Rate) dated 16.01.2025. It seeks to amend the Notification no. 13/2017-CTR dated 28.06.2017 which provides the list of services on which Reverse Charge Mechanism. Sponsorship service & Service by way of renting of any immovable property other than residential dwelling.

• Sponsorship services provided by the body corporates: Amended Entry No. 4 of NN. 13/2017-Central Tax (Rate) to provide that Sponsorship services provided by the body corporates would be subject to Forward charge. Body corporate has been excluded now in RCM Notification. Earlier, supply of sponsorship by any person to any body corporate or partnership firm located in the taxable territory is chargeable to GST under Reverse Charge Mechanism (RCM).

• Renting of Any commercial/ immovable property (other than residential dwelling) by unregistered person – To Exclude taxpayers registered under the Composition Levy Scheme from the purview of the Reverse Charge Mechanism (RCM) for renting of commercial/immovable property (other than residential dwellings) under Entry 5AB.

Notification No. 08/2025-Central Tax (Rate) dated 16.01.2025

CBIC issued Notification no. 08/2025-Central Tax (Rate) dated 16.01.2025 whereby Notification no. 17/2017-CTR dated 28.06.2017 is being amended.

Notification No. 17/2017-Central Tax (Rate) notifies the categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator.

Vide this Notification, amendment has been made in term ‘Specified premises’ to align with clause (xxxvi) of paragraph 4 of Notification No. 11/2017-Central Tax (Rate).

This Notification shall have an immediate effect i.e. 01.04.2025.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(Author is a well known Chartered Accountant practicing in the fields of Direct and Indirect Taxes)