CUSTOMS LAW
Proposed legislative changes in the Customs Act, 1962
Power to prohibit import and export of goods under Section 11 is proposed to be expanded to all goods, the uncontrolled import or export of which, can cause injury to the economy of India. Hitherto this was limited to gold and silver only.
In a landmark decision, the Gujarat High Court vide its order dated 23 January 2020, in Mohit Minerals Private Limited v Union of India and Another [Special Civil Application No 726 of 2018] and other connected petitions, has struck down two notifications: (i) No. 8/2017-Integrated Tax (Rate) dated 28 June 2017 and (ii) No.
The powers conferred upon GST commissioners to make arrests in cases involving fake GST invoices cannot be disputed. However, the way these arrest provisions have been incorporated under the GST law is certainly amenable to a constitutional challenge.
The honouring of existing contracts by the government is as critical for inflow of new investments as it is for the nation’s energy security.
The goods and services tax (GST) Council met on December 18 after nearly 3 months, only to grapple with many old and new unresolved issues. Such a long gap is not desirable as many key decisions are at stake.
The GST Council (Council) met on 18 December 2019 for the 38th time since the rollout of Goods and Services Tax (GST) regime. Amidst concerns of rate hikes and introduction of cesses for increasing revenue collections, the Council restricted the changes only to procedural changes and a few tweaks in the rate structure. This was also the first time that the members of the Council (after its constitution) had to call for a vote to effect certain rate changes. The relevant notifications to effect the changes shall be issued in due course.
On 31 October 2019, a specialised panel constituted by the World Trade Organisation (WTO) released a report recommending the withdrawal of several export promotion schemes which are integral to India’s foreign trade policy.
In its 33rd meeting held on 24 February 2019, the GST Council has recommended reduction in GST rates for under-construction residential properties. The GST Council has proposed a slab rate of 1% for the affordable housing segment and a slab rate of 5% in all other housing segments without benefit of the input tax credit (ITC) of GST paid on the inward supplies of goods and services. The change in rate is proposed to be made effective from 1 April 2019.
On 4 February 2019, the Gujarat High Court, in the case of Yasho Industries Limited, Cosmo Films Limited and Gujarat Fluorochemicals Limited quashed the pre-import condition for advance authorisation scheme. The summary of this landmark decision argued by us is provided below:
The Interim Budget 2019 did not propose any changes with respect to Indirect Tax. After the rollout of Goods and Services Tax (GST) in July 2017, the Annual Budget has lost its relevance in as much as it relates to GST. Now it is relevant only for the purpose of Customs which is the exclusive domain of the Parliament and the Central Government. Being the Interim Budget, no major changes were proposed even for Customs.
