GST Compendium December 2023

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The last edition of this year’s GST compendium discusses ongoing GST issues and experts’ comments on valuations under customs law and judicial precedence.

Key highlights

  • High courts have granted stay orders on some contentious and tremendous GST demands. This includes a stay on various recovery proceedings related to GST demand on the gaming industry. 
  • In a much-awaited development, the Government has permitted non-SEZ units, engaged only in IT/ITeS businesses, to operate from demarcated non-processing areas of IT/ITeS SEZ.
  • In a welcome move, the SC has held that by-products or waste products emerging during manufacturing cannot be treated as exempted goods to restrict ITC. This can also be applied under the GST regime for such by products and waste goods.
  • On the customs front, the Kerala HC has held that the customs officer is empowered to assess exemption from IGST claims on import of goods. However, this is contrary to the judicial precedence and can be challenged.
  • On the direct tax front, the Central Board of Direct Taxes (CBDT) has notified changes in ITR 7 to implement taxation of certain incomes of a charitable institution at a specified rate.