GST Compendium - July 2022

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Key highlights of the publication

  • Important updates/announcements: Recently, the 47th Goods and Services Tax (GST) Council meeting was held and various important recommendations were made on GST rate changes and certain exemptions. The recommendation for levy of GST at 28% on casino, race course and online gaming has been deferred by the GST Council and the Group of Ministers (GoM) has been directed to re-examine the matter. As regards setting up of Tribunal under GST law, the Council has recommended to set up a ministerial panel to make recommendations for appropriate amendments to the Central GST (CGST) Act.
  • Key judicial pronouncements: On the judicial front, the Uttarakhand AAR has ruled that the overseas commission agent is covered under the scope of “intermediary services” for facilitating the supply of goods in the international market. The AAR observed that the services are outside the ambit of import of services as the place of supply is not in India, thereby the commission is not liable to GST under reverse charge mechanism (RCM). The view aligns with the view taken by the Uttarakhand AAR in case of Midas Foods Private Limited. This is a welcome ruling and will set precedence in similar matters. 
  • Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has issued guidelines providing clarity on withholding tax matters on provision of benefits or perquisites. Additionally, the CBDT has notified the Faceless Penalty (Amendment) Scheme, 2022 and updated guidance on Mutual Agreement Procedure. The CBDT has also notified the procedure for filing appeal against the order passed by Board for Advance Ruling.

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