Key highlights of the publication
- Important updates/announcements: The Central Board of Indirect Taxes and Customs (CBIC) had clarified that the decision of the SC is limited to a particular chapter heading and should not be considered as a general rule. The CBIC also explained that the current practice would continue in all other cases as they have preferred a review petition against the SC order. As the review petition against the order of the SC got dismissed, the CBIC reiterated that its instruction issued post the original decision by the SC would remain valid even after the dismissal of the review petition.
- Key judicial pronouncements: Recently, renting a residential dwelling to a registered person has been brought under the Goods and Services Tax (GST) by the reverse charge mechanism. However, the Delhi High Court (HC) has held that renting a residential dwelling by a registered proprietor in his personal capacity for his own residence is exempt from GST. For example, a shopkeeper registered under GST would not be liable to pay GST for his rented residential property.
- Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has extended the due date for filing the income tax return for certain assessees. The CBDT has provided a mechanism for filing applications for the recomputation of income in case of withdrawal of the claim for deduction of surcharge and cess. In addition, the tax department has issued guidance for e-filing of the form, which is to be filed in a case where tax is not required to be collected.
