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The April edition of the GST compendium highlights updates on taxation, trade agreements and regulatory reforms. It also addresses recent developments impacting businesses, including policy changes and legal rulings. Within this edition, our expert explores enigmatic spheres for the insurance sector and its taxability under GST.
Key highlights of the GST Compendium April 2024:
Important updates/announcements: The RoDTEP scheme is a key initiative by the Government to reimburse various embedded taxes and duties on exported products. Effective 11 March 2024, the scheme has been extended to exports made by the advance authorisation holders (except deemed exports) and EOUs. Furthermore, there is an assurance that the same will also be available in SEZ units, subject to the IT integration of SEZ with ICEGATE.
Key judicial pronouncements: The Madras High Court has held that the claim of Input Tax Credit (ITC) cannot be denied only because it was not claimed in the GSTR-3B returns. The HC emphasised the comprehensive evaluation of all the relevant documents to determine eligibility for ITC, rather than outright denial because of procedural lapse.
Important developments in direct taxes: The CBDT has clarified donations to the other trust/institution and notified the list of payments to IFSC units on which tax is not required to be deducted. In addition, it notified ITR-7 for AY 2024-25 and issued an order to withdraw certain outstanding ‘tax demands.’
