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The March edition of GST Compendium captures the latest updates on PLI scheme, annual returns for FY 2019-20 and important judicial pronouncements from February 2021.
With a target to bring investments of more than INR 3,000 crore, the Union Cabinet approved the Production Linked Incentive (PLI) Scheme for telecom and networking products effective 1 April 2021. This is an important milestone under the Aatmanirbhar Bharat Abhiyan, which aims to make India a global hub for the manufacturing of telecom equipment.
Considering the difficulties faced by the businesses, the due date for filing the annual return for the financial year 2019-20 has been further extended to 31 March 2021.
The Supreme Court has accepted the special leave petition filed against the decision of Madras High Court denying the refund of the input tax credit for input services under the inverted duty structure. In a similar matter, the Gujarat High Court had allowed the refund stating that the GST provisions are ultra vires and need to be read down to the extent it denies refund of ITC on input services. In view of the contrary judgments, the verdict of the apex court is keenly awaited by the industry to take a final view on this subject.
The Madhya Pradesh Authority for Advance Rulings (AAR) has held that the input tax credit in respect of demo vehicles used by the authorised car dealer for furtherance of business shall not be available. Interestingly, the Maharashtra AAR and the Kerala AAR had earlier allowed the ITC on demo vehicles. A due clarification from the government on this issue will help in resolving it.
In this edition, our Experts share perspectives on various incentives available under the Foreign Trade Policy.
The March edition of GST Compendium captures the latest updates on PLI scheme, annual returns for FY 2019-20 and important judicial pronouncements from February 2021.
