GST Compendium: January 2022

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The January edition of GST Compendium analyses the scope of supply under GST, provisions pertaining to the availment of input tax credit, updates on furnishing annual returns and more.

Key highlights of the publication

• Important updates/announcements: The scope of supply under the GST has been widened by including activities/transactions between clubs/association and its members. Further, a matching concept has been introduced in the provisions pertaining to the availment of input tax credit. Apart from this, the due date for furnishing the annual returns for FY 2020-21 has also been extended until 28 February 2022.
• Key judicial pronouncements: On the judicial front, the Supreme Court has held that the amount of tax paid under protest can be adjusted against the mandatory pre-deposit required for filing an appeal under the erstwhile Value Added Tax (VAT) law. This is a landmark judgement and shall provide relief to the taxpayers dealing with similar issue.
• Decoding advance rulings: The Maharashtra Authority for Advance ruling (AAR) has held that electricity and water charges reimbursed by a licencee to a licensor shall be liable to GST. It is pertinent to note that electricity has been kept outside the purview of GST by way of exemption. Therefore, though the present ruling is likely to impact the real estate sector and the Resident Welfare Associations (RWA), it could lead to litigation on this subject.
• Important developments in direct taxes: Central Board of Direct Taxes (CBDT) has issued clarifications in respect of tax deducted at source (TDS) and tax collected at source (TCS) provisions. Further, the CBDT has partially modified the list of cases which are not covered under the Faceless Assessment regime.