The March edition of GST Compendium analyses various important amendments/updates key judicial pronouncements and decodes advance rulings.
Key highlights of the publication
- Important updates/announcements: A Comprehensive Economic Partnership Agreement (CEPA) has been signed between India and the United Arab Emirates (UAE), to boost trade and commerce. This should open new avenues for investments and encourage business through reduced tariffs and increased market access.
- Key judicial pronouncements: The Bombay High Court (HC) has held that a clarificatory circular issued by the Directorate General of Foreign Trade (DGFT) cannot retrospectively amend or take away the benefits granted under the Served From India Scheme (SFIS). The present decision by the Bombay HC aligns with the Apex Court's ruling and should provide clarity to businesses on this subject.
- Decoding advance rulings: The Telangana AAR observed that the applicant had recovered compensation on account of the delay in commissioning the project beyond the agreed milestones. The AAR stated that tolerating an act or a situation under an agreement constitutes a "supply of service". Therefore, such toleration's consideration or monetary value is exigible to GST.
Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has issued clarification on the interpretation of the most favoured nation clause. Further, the methodology for computing the capital gains on the sale of units of a unit linked insurance plans has also been notified.
The March edition of GST Compendium analyses many tax updates and trade agreements.