Direct Tax
CBDT extends the time limit for compliance to be made for claiming any exemption under section 54 to 54GB of the Income Tax Act, 1961
Circular No. 1 OF 2023 F. NO. 225/49/2021-ITA-II dated 6 January 2023
- The Central Board of Direct Taxes (CBDT) via Circular No. 12 of 2021, had provided relaxation in respect of certain compliances to be made by taxpayers, including investments, deposits, payments, acquisitions, etc., to claim an exemption under Section 54 to 54GB.
- Point 7 of the above-mentioned Circular provided that the aforementioned compliances for which the last date of such compliance fell between 1 April 2021 to 29 September 2021 may be completed on or before 30 September 2021.
- However, in consideration of the restrictions imposed during the COVID-19 pandemic causing genuine hardship faced by taxpayers in making the compliances, CBDT provides that the compliances to be made by the taxpayers for the purpose of claiming exemption under Section 54 to 54GB for which the last date of such compliance falls between 1 April 2021 to 28 February 2022, may be completed on or before 31 March 2023.
Indirect Tax
GST Updates
Clarifications regarding GST rates and classification of certain goods
Circular No. 189/01/2023-GST dated 13 January 2023
Based on the recommendations of the GST Council in its 48th meeting, the CBIC issued a Circular clarifying the levy of GST vis-à-vis the following supply of goods:
| Sr. No. | Category of goods | Clarification | Applicable Rate |
|---|---|---|---|
| 1 | Rab (product of sugarcane) | Classifiable under HSN code 1702 in lieu of 1701 | GST - 18% |
| 2 | By-products of milling of Dal / Pulses such as Chilka, Khanda and Churi / Chuni | W.e.f. 1 January 2023, supply of subject goods shall be exempt irrespective of end use. As a relief measure, the matters that arose during the intervening period would stand regularised on “as is” basis from the date of issuance of Circular No. 179/11/2022-GST dated 3 August 2022 till the date of coming into effect of the above amendment. |
GST - Nil |
| 3 | Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice | Classifiable under HSN code 2202 99 |
GST - 28% Compensation Cess - 12% |
| 4 | Snack pellets manufactured through an extrusion process (such as fryums) | Classifiable under HSN code 1905 90 30 | GST - 18% |
| 5 | Sports Utility Vehicles (SUVs) |
Compensation Cess is
applicable on motor vehicles,
falling under heading
8703, which satisfy all four
specifications:
|
Compensation Cess - 22% |
| 6 | Specified goods falling
under any Chapter
required in connection
with Petroleum
operations/Coal bed
methane operations,
under Notification No.
3/2017-Integrated Tax
(Rate) dated 28 June
2017. These goods
include inter alia:
|
The importer can claim the benefit of a lower rate under Schedule I (5%) of Notification No. 1/2017-Integrated Tax (Rate) or any other IGST rate Notification. | IGST - 5% or 12% |
Clarifications regarding the applicability of GST on certain services
Circular No. 190/01/2023-GST dated 13 January 2023
Similar to the clarifications in respect of the supply of goods, the CBIC has clarified the applicability of GST on the following services:
| Category of services | Clarification provided |
|---|---|
| Accommodation services supplied by Air Force Mess or other similar messes, like Army Mess, Navy Mess, Paramilitary and Police Forces Mess, to their personnel or any person other than a business entity. | Such services are considered as services supplied by the Central/State Government, Union Territory, or local authority and, therefore, are exempt from GST vide Sl. No. 6 of Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017. |
| Incentive paid by MeitY to acquiring banks under Incentive scheme for promotion of RuPay Debit Cards and lowvalue BHIM-UPI transactions. | Such incentives are in the nature of subsidies directly linked to the price of the service and, thus, are not taxable under the GST law. |
Powers of Additional Assistant Directors in DGGI, DGGST, and DG Audit
Notification No. 1/2023-Central Tax dated 4 January 2023
The powers of the Superintendent of Central Tax have been assigned to Additional Assistant Directors in Directorate General of Goods and Services Tax Intelligence (DGGI), Directorate General of Goods And Services Tax (DGGST), and Directorate General (DG) Audit.
Customs
Extension of import duty exemption on COVID-19 vaccines
Notification No. 1/2023-Customs dated 13 January 2023
The exemption of the entire customs duty leviable on the COVID-19 vaccine, when imported into India by the Central Government or State Government, has been further extended for the period starting from 14 January 2023 to 31 March 2023.
Government notifies second tranche of tariff concessions under India-Australia ECTA
Notification No. 64/2022-Customs dated 29 December 2022
The Central Government has notified the second tranche of tariff concessions for 8500 items, from 1 January 2023, under the India-Australia Economic Cooperation and Trade Agreement (ECTA).
Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 (CAVR, 2023)
Notification No. 3/2023-Customs (NT) and Circular No. 1/2023-Customs, both dated 11 January 2023
The Central Government has notified CAVR, 2023, which will come into force from 11 February 2023 to address the undervaluation of specified imported goods. The specified goods will be identified by the CBIC where it has reason to believe that the value of such goods may not be declared truthfully or accurately. The list will be prepared and recommended by a Screening Committee and Evaluation Committee.
Foreign Trade Policy
Relaxation under the EPCG scheme pursuant to the COVID-19 pandemic
Public Notice No. 53/2015-2020 dated 20 January 2023
DGFT has allowed one-time relaxation from maintaining Average Export Obligation under EPCG authorizations for the years 2020-21 and 2021-22 to Hotel, Healthcare and Educational sectors. Furthermore, for these sectors, the Export Obligation (EO) period has been extended from the date of expiry for the duration equivalent to the number of days the EO period falls between 1 February 2020 and 31 March 2022. For EPCG authorizations issued to other than aforesaid sectors, the EO period may be extended from the date of expiry for the number of days the existing EO period falls between 1 February 2020 and 31 July 2021, subject to 5% additional EO in value terms on balance as on 31 March 2022. This is in addition to the EO extensions facility (upon payment of the composition fees) already provided in FTP/HBP.
DGFT simplifies Composition Fee for Export Obligation extension under the Advance Authorization Scheme
Public Notice No. 52/2015-20 dated 18 January 2023
The Directorate General of Foreign Trade (DGFT) has amended the HBP 2015- 2020 to simplify the process of levying the Composition Fee for extending the Export Obligation under the Advance Authorization Scheme. Accordingly, the said fee shall be leviable basis the Cost, Insurance, and Freight (CIF) value of Advance Authorizations issued and the number of extensions sought. The revised fee shall be applicable only for requests made on or after 19 January 2023.