GST Compendium – September 2021

Key highlights of the publication

• Important updates/announcements: The government has recently announced the rates of tax refund under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for multiple products. The scheme provides to compensate central, state and local duties borne on the goods exported from India. The incentives range between 0.01% to 4.3% for identified export sectors and shall be applicable on exports made from 1 January 2021.
• Key judicial pronouncements: The Delhi High Court (HC) has held that the search and seizure power is an ‘intrusive power’ that needs to be wielded with utmost care and caution. Further, the HC observed that unless the basic jurisdictional facts exist in a case, the power of search and seizure cannot be exercised. In another case, the Telangana HC held that no tax demand can be raised when the investigation is still in progress and that the revenue cannot collect any tax, interest, or penalty before determination of liability in an inquiry.
• Experts’ column: In this edition of the Compendium, our experts' corner focuses on the implications of restricting GST refund claim by SEZ units/developers.
• Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has extended the time limit for filing various electronic forms considering the difficulties faced by the taxpayers in filling these forms. In an important development, Centre has withdrawn retrospective applicability of provisions on indirect transfer of shares. This should help address some of the key concerns of the foreign investors.