News Update

Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
GST - An agenda for reforms - Part - 78 - GST reforms in times of grave crisis

MARCH 24, 2020

By Dr G Gokul Kishore

NATION-STATES are down to their knees in trying to keep at bay tiniest of adversaries. Everybody's thoughts are infected with Covid-19 as nobody can remain immune from schizophrenic approach - one part of the mind fighting to keep itself pre-occupied with the routine while another part is constantly processing the corona thoughts, flood of messages, various orders restricting movement and closure of businesses. The next meeting of GST Council which will be through video conferencing will have a heavy agenda as attempted in this 78th part.

Extension of return filing dates

The only thing which is constant is change, it is said. No tax regime can better vindicate this statement than GST. One may term that the law being new has to be dynamic and responsive and hence, the changes. Another school may subscribe to the necessity of tinkering with system and processes as a new tax system is implemented by testing on real-time basis. The silver lining has been regular extensions in respect of various returns and other compliances. The time cannot be more appropriate than the present. GSTR-3B and GSTR-1 are the major returns and extension of due date for filing such returns beyond the end date of restrictions in force in many States is sine qua non . Work from home is not feasible when the data is sufficiently large and confidentiality concerns do not permit taking such voluminous data home, prepare returns and file from home. While all records are electronic, they do not reside in a single laptop of the person filing returns.

Cessation of production in many factories, vehicles stuck mid-way when restrictions came into force, expired e-way bills, inability to bring back materials from job work, service providers compelled to close or restrict their work, etc., are some of the challenges almost every industry is facing today. When the entire world stays indoors, economy has come to a halt and banks have restricted operations, expecting tax payments on time will be confiscatory. By deferring due date for filing GSTR-3B, taxpayers will get corresponding breather for tax payment.

ITC relaxation and other relief measures

In times of crisis of this magnitude, the government's tax revenues will take a big hit. One cannot expect it to support the industry by extending funds on softer terms. But it can assist the suffocating businesses by liberalizing input tax credit. The negative list under Section 17(5) of CGST Act can be pruned to the barest minimum. The 10% credit restriction on invoices not shown in GSTR-2A can be temporarily suspended. For smaller taxpayers, payment of tax on instalment basis can be considered. When companies are shut, inter-State stock transfers can be exempted for a few months. For the next few months, tax administration should be instructed not to detain vehicles or seize goods for e-way bill related issues. This is not a wish list but certain must-do's for the government at this juncture.

No limitation for appeals and all proceedings

The Supreme Court in Suo Motu Writ Petition (Civil) No. 3/2020, by order dated 23-3-2020 - 2020-TIOL-77-SC-MISC-LB, took suo motu cognizance of the situation arising of Covid-19 virus and difficulties faced by litigants across the country in filing petitions, applications, suits, appeals and all other proceedings within the period of limitation either under the general law of limitation or under special laws (both Central and / or State). As physical presence or attendance in courts is next to impossible in the current situation, the Apex Court ordered that period of limitation in such proceedings shall stand extended with effect from 15th March, 2020 till further orders. The Court categorically stated that it has exercised power under Article 142 read with Article 141 of the Constitution of India and the order will be binding on all courts, tribunals and authorities.

Use of the words "proceedings" and "authorities" unambiguously indicates that tax authorities including those initiating or prosecuting proceedings under GST, Customs and Income Tax laws will be bound by this order. This will include Advance Rulings Authority, National Anti-Profiteering Authority, CESTAT, ITAT, Commissioner (Appeals) and all adjudicating and assessing authorities. Time-limit prescribed in such laws will stand suspended and the period from 15th March, 2020 to the date to be specified by the Court will be excluded in computing the time-limit. The Court has expressly said that such extension will be applicable whether the delay is condonable or not i.e. whether the particular statute has provision for condonation or not. One may tend to interpret "proceedings" as existence of lis i.e. order should have been passed and appeal should have been filed and the same will not cover mere issuance of show cause notice. If a particular action has been proposed by way of notice, then proceedings have begun. Considering the tone and tenor of the order, any alternate interpretation may not be accepted.

The above order has been highlighted so that government may consider issuing appropriate ordinance for extending time-limit under various laws. GST Council may consider recommending removal of difficulty orders to cover the same in the interim. Goods and services which are either directly or indirectly used for treatment, relief and rehabilitation of Covid-19 patients and all caregivers should be considered for exemption till the time the situation is brought under control. Let us sincerely hope the war over the virus is won within short time so that there is no necessity to repeat our plea for such extreme relief.

[To be continued…]

[The author is an Advocate. The views expressed are strictly personal.]

See Part 77

(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site)

 


POST YOUR COMMENTS
   

TIOL Tube Latest

India's Path to Becoming a Superpower: An Interview with Pratap Singh



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.