GST Case Law Compendium: April 2024

The RoDTEP scheme is a key initiative by the government aimed at reimbursing various embedded taxes and duties on exported products. At present, it is scaling high on the focus of the authorities driving considerable due attention.

 Read on, as we explore the latest updates and rulings revolving around GST And other taxes and compliance norms for the April edition of the GST Case Law Compendium discussion held recently.

  • Transformative Trade Partnership: India-EFTA Agreement

India and the European Free Trade Association (EFTA) signed a Trade and Economic Partnership Agreement on March 10, 2024. This agreement pledges USD 100 billion in investments, targeting the creation of 1 million direct jobs in India over 15 years. It also incorporates tariff concessions and several other beneficial provisions

  • RoDTEP Scheme Enhancements: Wider Scope and Extended Validity

Effective March 11, 2024, RoDTEP now covers exports by advance authorization holders and EOUs, excluding deemed exports. Plans are in progress to extend benefits to SEZ units pending IT integration with ICEGATE. The scheme’s validity is extended to September 30, 2024, with thanks to the Export Promotion Council for EOUs and SEZs.

To support domestic electric vehicle production, the government has authorized imports of electrically powered vehicles valued at USD 35,000 or more at discounted customs duty rates until March 31, 2031.

  • Enhancing Efficiency: DGGI Adopts Strategic Approach in Tax Investigations:

Considering the challenges faced by senior management of MNCs in their interactions with DGGI officials during tax inquiries, an initiative has surfaced. The Board has issued guidelines directing DGGI officials to engage first with authorized personnel responsible for tax compliance, bypassing direct summons to the company’s CEO, CFO, or directors during tax liability investigations.

  • Madras HC: ITC Cannot Be Denied Due to Missing GSTR-3B Entry

The Madras High Court has stated that Input Tax Credit (ITC) claims cannot be rejected just because they were not in GSTR-3B returns. They stressed reviewing documents thoroughly and assessing ITC eligibility based on substance, not just procedures.

  • Streamlining Tax Regulations: CBDT’s Recent Updates for Taxpayers

The recent updates from CBDT provide clarity on donations to trusts, exempt IFSC unit payments from tax deductions, introduce ITR-7 for AY 2024-25, and withdraw certain tax demands. These changes aim to streamline tax procedures and enhance compliance for taxpayers.

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