The GST revenue collections for January 2021 have touched an all-time high of nearly INR 1.20 lakh crore, which is 8% higher than the figure in the same month last year. Finance Minister Nirmala Sitharaman presented the first Digital Union Budget 2021-22 on 1 February 2021 amidst the pandemic and high fiscal deficit. The Budget has largely maintained a status quo on the tax rates, providing a big relief to the industry and households.
Key highlights from the publication
- Important announcements/updates: Some of the key indirect tax proposals in the Union Budget included automatic expiry of all new condition-based customs exemption notification on 31 March after two years from the date of exemption; removal of mandatory requirement of GST Audit by professionals and replacing it with self-certification process; and mandatory requirement of earning in convertible foreign exchange to claim export benefits.
- Key judicial pronouncements: The Supreme Court has dismissed the special leave petition (SLP) filed by the Revenue against an order passed by the Delhi High Court allowing the reopening of the portal to enable the applicant to claim transitional credits. The time prescribed for claiming transitional credits under the GST has been a matter of dispute and litigation since its implementation and needs to be addressed on priority.
- Decoding advance rulings: The Gujarat Authorities for Advance Ruling (AAR) has held that the GST is applicable on the recovery of notice pay from employees leaving the company without completing the notice period as per the terms of the appointment letter. The ruling is in contrast with the Madras High Court judgment under the erstwhile Service Tax regime.
- Experts’ take: Removal of GST Audit under Budget 2021 is more than what meets the eye
We hope you find this publication interesting and insightful. Share your feedback with us on email@example.com