Ergo Update

The Ministry of Health and Family Welfare (MOHFW) notified the Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Amendment Rules, 2023 (Amendment) on 31 May 2023 i.e., World No-Tobacco Day.

In December 2022, the Insurance Regulatory and Development Authority of India (IRDAI) published the IRDAI (Registration of Indian Insurance Companies) Regulations 2022 (New Regulations) to overhaul and simplify the regime relating to registration of Indian insurance companies and investments in and transfer of shares of insurers.

After a long period of uncertainty over a definitive stance taken by the Employees’ Provident Fund Organisation (EPFO) on exercise of joint option for higher contributions under the Employees’ Provident Funds Scheme, 1952 (EPF Scheme), the EPFO issued a circular dated 2 June 2023 (June Circular) detailing the applicable mechanism in this regard.

As per Indian tax laws  (“ITL”), any ‘excess premium’ received by an Indian closely held company (“ICo”) upon allotment of shares (equity or preference shares) to resident or non-resident investors (unless exempted) is taxed as ordinary income of ICo (“Angel Tax Provision”). The ‘excess premium’ will be the difference between the consideration received by the ICo for share issuance and the prescribed fair market value of such shares (Tax FMV).

A 2-judge bench of the  Supreme Court of India (SC) vide its judgment dated 19 May 2023  in the case of Central GST Delhi III vs. Delhi International Airport Ltd, Civil Appeal No. 8996/2019 along with CA No. 2465/2020 and CA Nos.

Only a few days before the Competition Commission of India (CCI) celebrated its 14th Annual Day on 20 May 2023, the Ministry of Corporate Affairs (MCA) notified the enforcement of certain provisions of the Competition (Amendment) Act, 2023 (CAA 23), with effect from 18 May 2023. A detailed overview of the provisions of the CAA 23 along with our views are available here, here, and here.

The Securities and Exchange Board of India (SEBI) vide its circular bearing reference no. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2023/64 dated 3 May 2023 (Circular) has introduced obtention of ‘Legal Entity Identifier’ code (LEI) for entities who have issued or propose to issue listed debt securities, in a phased manner and effective immediately.

The Hon’ble Supreme Court (SC) has, by a recent order, settled a long standing dispute between property owners and developers in Mumbai and Municipal Corporation of Greater Mumbai (MCGM), in relation to the power and entitlement of MCGM to levy property tax based on capital value (CV) system as against the prevalent rateable value (RV) system.

In a landmark judgment with far reaching consequences on the online gaming sector in India, a single judge bench of the Karnataka High Court (High Court), in the matter of Gameskraft Technologies Private Limited (GTPL), has quashed and set aside a INR 21,000 crore (~USD 3 Billion) goods and services tax (GST) show cause notice (SCN) against GTPL – the biggest tax notice ever issued in India, as per some reports.