Key highlights of the publication
- Important updates/announcements: The Goods and Services Tax Council (GST Council), in its 49th meeting, approved the Group of Ministers report on the GST Appellate Tribunal and the capacity-based taxation of special commodities such as paan masala, gutkha, and chewing tobacco. The GST Council has also recommended trade facilitation measures such as an amnesty scheme for past cases, and rationalisation of late fee for filing annual returns for financial year 2022-23 onwards for specified taxpayers.
- Key judicial pronouncements: In a recent ruling, the Supreme Court (SC) affirmed the Bombay High Court’s (HC) view that the Revenue is not empowered to adjudicate a show cause notice after inordinate delay. The SC has reiterated that any legal action taken against the assessee must be concluded in time. Therefore, the Revenue could not keep such cases pending indefinitely. In another ruling, the Karnataka HC has held that the vouchers are mere instruments accepted as consideration for the supply of goods or services. Consequently, the vouchers do not have an intrinsic value of their own. Hence, the vouchers are neither goods nor services and cannot be taxed.
- Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has notified income tax return forms for AY 2023-24 and new forms (audit report) for charitable or religious trusts, education institutions, and universities. The CBDT has also notified the Centralised Processing of Equalisation Levy Statement Scheme, 2023, to process the equalisation levy statement.
