Key highlights of the publication
- Important updates/announcements: The Finance Bill 2023 has become an Act after the presidential assent received on 31 March 2023. In this edition, we have discussed the key amendments to the Finance Bill 2023. In addition, the government has announced the new Foreign Trade Policy 2023 (FTP) effective 1 April 2023 to provide policy continuity and a responsive framework. An amnesty scheme for the one-time settlement of the export obligation default by the Advance Authorisation and Export Promotion Capital Goods Scheme authorisation holders has been introduced.
- Key judicial pronouncements: The Supreme Court (SC) has held that for claiming input tax credit (ITC), proving the genuineness of the transaction and actual physical movement of the goods are the essential conditions. Therefore, only production of the invoices and/or payment by cheque is not sufficient to prove the genuineness of transaction. Though the judgment has been delivered in the context of VAT laws, it is likely to have an impact under GST, as similar provisions exist under the GST laws.
- Important developments in direct taxes: On the direct tax front, we talk about key amendments relating to the financial services sector in the Finance Bill 2023.
In order to assist our readers in meeting their tax compliances, we present a tax compliance calendar for Financial Year 2023-24, which should act as a ready reckoner.