Author: Pushkar Mer

In case of Britannia Industries Ltd, honourable Calcutta High Court made a judgement where the matter involves complex question of fact and law, the registered person should first exhaust the statutory remedies available under the GST law before filing the writ petition.

The RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme, which was introduced to promote exports by reimbursing embeded duties and taxes, has been temporarily extended to include goods covered under the Advance Authorisation, Export Oriented Units (EOU), and Special Economic Zones (SEZ) as per DGFT Notification No. 32/2024-25 dated 30^th September, 2024. This exemption was valid till 31^st December, 2024 only.

No further exemption is announced. Exporters are early waiting for further extension of RoDTEP scheme.

Taxpayers transporting goods via the Indian Railways FOIS must ensure the correct entry of the number or RR No./eT-RRs in the e-way bill system. The format for entering RR No./eT-RRs has been standardized to ensure consistency and accuracy. The correct format and other important steps have been provided in the advisory. (Advisory dated December 18, 2024)

In case of Bharti Airtel Ltd, honorable Delhi High Court made a remarkable judgement that Telecommunication towers do not meet the criteria of permanency. They are not permanently attached to the earth, as they can be dismantled and relocated. These towers are not erected with the intention of permanency, and their placement on concrete bases is merely to protect them from natural elements. Therefore, they can be classified as movable property, making them eligible for ITC.

Starting January 01, 2025, Multi-Factor Authentication will be mandatory for taxpayers with turnover exceeding 200 million, from February 01, 2025, for those with turnover exceeding INR 50 million and from April 01, 2025, for all taxpayers.

After years of delays, the DTC (Direct Tax Code ) is set to be implemented in April 2025, for the financial year 2025-26. 

KEY FEATURES:-

1. Unified Financial Year:- The concept of previous year and assessment year will be removed
2. Residency simplification :- Only two category of residency status will exist : Resident and non-resident.
3. Renamed Income heads
4. Capital gains will likely be part of regular income
5. Extended audit authority : CS and CMA may be allowed to conduct tax audit. Currently only CA are authorized to conduct tax tax.
6. Corporate tax alignment : Domestic and foreign company tax rates will be unified. This will encourage foreign investment.

DTC will simplify India’s tax structure and transparency.

To facilitate the taxpayers, the Supplier View of IMS has been made available where the action taken by their recipients on the records/invoices reported in GSTR-1/1A/IFF, will be visible to the suppliers in ‘Supplier View’ functionality. (Advisory dated 13.11.2024)

Honorable Delhi High Court made a judgement in favour of Metal One Corporation India Pvt Ltd. ‘Nil’ value would be treated as the open market value for the purposes of the Second Proviso to Rule 28. Since, in the present case, no invoices have been issued for secondment of employees, the value of service shall be treated as Nil.

The taxpayers shall not be allowed file their GST returns after the expiry of three years from the due date of furnishing the said return. These changes will be implemented in the GST portal from early next year 2025.

(Advisory dated October 29, 2024)

No refund of tax already paid or ITC already reversed would be available, where such tax has been paid or ITC has been reversed on account of contravention of provisions of Sub-Section (4) of Section 16 of the CGST Act and where such ITC is now available as per the provisions of Sub-Section (5) or Sub-Section (6) of Section 16 of the Act. However, it is clarified that said restriction on refund will not apply to the refund of an amount paid as pre-deposit by the taxpayer, where such appeals are decided in favour of the said taxpayer. (Corrigendum dated October 25, 2024 to Circular No. 237/31/2024-GST dated October 15, 2024)