GST Compendium - May 2021

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This edition of the Compendium features our perspective on Cryptocurrency

Key announcements

  • The Central Board of Indirect Taxes and Customs (CBIC) has exempted the custom duty and health cess on import of various medical essentials and oxygen related equipment.
  • An expeditious and seamless customs clearance has been ensured for all such imports.
  • A dedicated COVID-19 helpdesk is operationalised to address queries on the imports and to handhold trade and industry for seamless customs clearance.

Key judicial rulings

The Madras HC has held that the legitimate export incentives given to exporters cannot be denied merely because of intervening changes in the law i.e. introduction of the GST. The judgment is likely to set a precedence in similar matters and help clear the pendency of refund claims for exporters.

Advance rulings

On the legacy issue of taxability of vouchers, the Tamil Nadu Appellate Authority for Advance Rulings has observed that vouchers are neither goods nor services but are a means/instrument for payment of consideration. This is a welcome ruling and provides much required clarity on the taxability of vouchers.

Key direct tax developments

  • The Finance Act, 2021 has brought in amendments to address stakeholder’s concerns, which, inter alia, include the applicability of equalisation levy in certain cases, an adjustment in a block of assets due to the non-availability of depreciation on goodwill and manner of working out consideration in slump sale cases.
  • An extension of timelines considering the hardships faced by stakeholders on account of the second wave of the COVID-19 pandemic
  • Composition of the GAAR Approving Panel to adjudicate, if GAAR is triggered in any particular case
  • Deferment of GAAR and GST related reporting in the tax audit report till 31 March 2022.

Expert column

Cryptocurrency is a much discussed topic these days. We have shared our perspective on it.