Goods and Services Tax (GST) Legislative Changes

[These shall come into effect from the date of assent to the Finance (No.2) Bill, unless specified otherwise]

1. Exclusion of un-denatured extra-neutral alcohol or rectified spirit from the purview of GST [Section 9 of the Central Goods and Services Tax Act, 2017 (“CGST Act”), Section 7 of the Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”) and Section 5 of the Integrated Goods and Services Tax Act,2017 (“IGST Act”)]

BEPS 2.0 Understanding the Two-Pillar Framework

GST registration applications are governed by Rule 8 of the CGST rules, wherein Rule 8(4A) provides for authentication of Aadhaar number while filing the GST registration applications. The second proviso now provides that where applicants [other than individuals] who do not possess Aadhar number or other applicants who do not opt for Aadhaar authentication, will need to appear for the photographs along with verification of original copy of documents uploaded on the common portal at notified facilitation centers. It is noteworthy that GST registration application shall be deemed to be complete only after this process is successfully undertaken at such facilitation center.

The Petitioner1 is engaged in regassification of LNG. The plant for carrying out the regassification activity is situated in Dabhol. The Petitioner is discharging the GST liability on such activities as supply of taxable services. LNG [being input] is received by sea from various countries through LNG carriers at Petitioner’s captive jetty. From the said jetty LNG is transferred to cryogenic storage tanks located in the regassification plant.

In pursuance to the powers conferred by section 120 of the CGST Act, the Board on the recommendation of the GST Council has fixed the below monetary limits for the Revenue authorities for filing appeals, applications or Special Leave Petitions before the Goods and Services Tax Appellate Tribunal [GSTAT], High Court and Supreme Court:

The GST Council meeting today is no short of a mini budget. The new Government in its first meeting (and 53rd meeting of the GST Council) has taken pro-active steps which will help reduce litigation on some of the key on-going issues.

In this alert, we have briefly summarized few key amendments. A detailed alert will follow once the clarifications are issued.

In the 50th GST Council meeting, the Council had recommended to amend the Input Services Distributor (ISD) provisions for the distribution of credit on common input services procured from third parties, so as to make it mandatory. In this regard, the Finance Act, 2024, has introduced amendments to the GST laws; however, the implementation date for these provisions is yet to be notified.

The Petitioner1 challenged the order confirming the demand for wrong availment of transitional credit amounting to INR 30,33,615/- along with interest and penalty under section 74 of Central Goods and Services Tax Act [CGST Act]. It was an undisputed fact that the Petitioner had reversed the wrongly availed transitional credit before the issuance of show cause notice.

Vide circular dated 7 June 2024 (Circular), the Reserve Bank of India (‘RBI’) has introduced two important amendments related to investment under Overseas Portfolio Investment (‘OPI’) route. The position prior to introduction of this circular, amendments and its impact are explained below.

On 6th June 2024, Singapore’s Minister of Finance has, in exercise of the powers conferred by section 7(1) of the Income Tax Act, 1947, made the Income Tax (Transfer Pricing Documentation) (Amendment) Rules 2024 and the same has come into operation on 10 June 2024.

Section 168A of CGST Act was inserted vide the Taxation and Other laws (Relaxation and Amendment of Certain Provisions) Act, 2020 which gave power to the Government to extend the time limit in respect of any actions which cannot be completed due to force majeure events such as war, epidemic, flood, draught, fire, cyclone, earth quake or any other calamity caused by nature or otherwise.

Has the clock started ticking for filing appeals before the GST Appellate Tribunal?

Benefit under Treaty cannot be withheld without invocation of GAAR or evidence of impermissible avoidance arrangement where TRC is available

SEBI permits 100% contribution of NRI / OCI / Resident Individuals in FPIs based in IFSC

Karnataka HC holds that waiver of loan shall not be taxable as benefit or perquisite under pre-amendment section 28(iv) irrespective of nature of loan

NEW PROTOCOL ENTERED BY INDIA AND MAURITIUS FOR INTRODUCTION OF PRINCIPAL PURPOSE TEST AND AMENDMENT OF PREAMBLE IN TAX TREATY

Guidelines for CGST field formations undertaking investigations to ensure ease of doing business

Mumbai ITAT holds that date of transfer shall be reckoned on the date when shares are delivered and not from SPA execution date for Capital gains purpose

BEPS 2.0 – Inclusive Framework Report on Pillar One - Amount B

Service, if any rendered, by an Investment Trust is for its own self