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ArticlePost-Budget Article: Impact on the Automotive Sector
|4 min read|08 Feb 2023
The forward-looking approach adopted in the budget towards this sector has been in alignment with the government’s goals of promoting Aatmanirbhar Bharat and moving firmly towards net-zero carbon emissions by 2070, shares Saket Mehra in this insightful article in Financial Express.
The August edition of GST Compendium analyses the implications of the GST law on supplies by duty-free shops.
Key highlights of the publication
Important updates/announcements: As a part of the economic relief measures, the Finance Ministry has announced an extension of the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing by another year (i.e., up to 2025-26). Furthermore, the Union Cabinet has also approved a PLI scheme for specialty steel, which is expected to boost production of high-grade specialty steel in the country.
Key judicial pronouncements: The Madras High Court held that the input tax credit availed of the GST paid on inputs, which are lost during the manufacturing process, is not required to be reversed. This will provide relief to the manufacturing sector and will set a precedence in similar matters. Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the levy of service tax on expenses incurred by venture capital funds. This is likely to have a major impact on the tax positions adopted by the industry.
Important developments in direct taxes: The Central Board of Direct Taxes has extended the time limit for manual filing of Form 15CA/15CB, considering the difficulties faced by taxpayers in electronic filing of these forms on the new income tax portal. Further, the CBDT has also issued a guidance note in respect of withholding tax provisions on the purchase of goods.