Key highlights of the publication
- Important updates/announcements: Continuing with its push on digital economy, the Central Board of Indirect Taxes and Customs (CBIC) has made issuing e-invoices mandatory for the notified registered persons with an aggregate turnover above INR 5 crore in any preceding financial year (FY) from FY 2017-18 onwards. This change will be effective 1 August 2023. Currently, the limit of the aggregate turnover is INR 10 crore.
- Key judicial pronouncements: On the judicial front, the Supreme Court (SC) has upheld the requirement of fulfilling the ‘pre-import condition’ incorporated in the Foreign Trade Policy 2015-2020, to claim exemption of the Integrated Goods and Services Tax and Compensation Cess on inputs imported for the manufacture of export goods, based on advance authorisation. The SC stated that the inconvenience caused to exporters by paying two duties and claiming a refund could not be a ground to hold the ‘pre-import’ condition as arbitrary.
- Important developments in direct taxes: On the direct tax front, the Ministry of Finance has clarified the applicability of tax collected at source provisions on remittances under the Liberalised Remittance Scheme and notified the India-Chile Double Taxation Avoidance Agreement.
