Amongst the myriad representations placed before the Goods and Service Tax Council (GST Council) for consideration in their 47th meeting, one of the significant issues was rate rationalization on food products.
The Special Economic Zone (SEZ) regime, which was introduced in 2005 to promote exports and improve balance of payments, became less lucrative with sunset of income tax benefits granted thereunder. In view thereof and with an objective of unfettering the exporters from procedural hindrances, the Hon’ble Finance Minister, in her budget 2022 speech, announced replacement of this framework by September 2022.
Amidst the current geo-political and economic situation prevalent across the globe, and considering the continuous weakening of the Indian Rupee (INR), the Reserve Bank of India (RBI) vide Circular dated 11 July 2022 has allowed international settlement of trade in INR for export and/or import of goods and services.
The Government of India, recognizing the need to promote exports to propel GDP growth, had implemented the Special Economic Zone Policy in 2000 as part of the Foreign Trade Policy. Subsequently, the policy was implemented under the Special Economic Zones Act, 2005 (SEZ Act). Presently, there are 268 active Special Economic Zones (SEZs) with 5576 units. Over the past seventeen years, investments worth~ USD 82 billion were made and 2.6 million jobs were created with annual exports of USD 133 billion (Financial Year 2021 – 2022).
Recently, the Central Board of Indirect Taxes and Customs (CBIC) issued Instruction No. 03/2022 – GST dated 14 June 2022 (CBIC Instruction) prescribing guidelines and procedures to be followed in issuance of refund orders and post audit review, by the officers of the CBIC (Tax Department).
While this is a judgment under the pre-GST service tax laws, the legal provisions analyzed in this judgment are similar to corresponding provisions under GST and to that extent, this judgment has the potential to re-open the pandoras box of service tax/GST issues on secondment/deputation of manpower, whether from outside India to India or within India.
The Hon’ble Supreme Court decided on the constitutional challenge to the levy of Goods and Services Tax (GST) on ocean freight for Cost, Insurance and Freight (CIF) imports. The Gujarat High Court had struck down the levy pursuant to its finding that the reverse charge was ultra vires the parent enactment, that is the Integrated Goods and Services Tax Act, 2017 (IGST Act). The High Court observed that the charge of IGST could be reversed and fastened only to a “recipient”.
The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation concerning imports of “Dispersion Unshifted Single-Mode Optical Fibre” (SMOF) originating in or exported from China, South Korea and Indonesia by a Notification dated 6th May, 2022.
Petitioner (Munjaal Manishbhai Bhatt), an advocate entered into an agreement with a landowner/developer for purchase of an already developed plot of land (1021 sq mt) and construction of bungalow (160 sq mt) on the said plot by the developer. Separate consideration was agreed for both between the parties.
With the increasing adoption of crypto-assets in India and the rapid developments in the crypto space, the government introduced a separate regime for levy of income tax on virtual digital assets (VDAs) in the 2022 Budget proposals (Budget VDA Proposals).
