GST Compendium November 2023

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Key highlights of the publication

  • Important developments in indirect taxes:
    • GST demand notices worth INR 1 lakh crore have been served to Indian online gaming firms by the GST authorities. A significant development to note is that the Bombay High Court (HC) has granted relief to Delta Corp Limited and its subsidiaries and restrained the GST department from passing a final order against the GST demand notices of INR 628 crores. Delta Corp Limited has also challenged the constitutional validity and legality of the GST valuation rules in the case of lottery, betting, gambling, and horse racing before the Sikkim HC, wherein the HC has instructed the department to maintain the status quo.
    • Considering the upcoming festive season, it might be relevant for businesses to note that the Telangana Authority for Advance Ruling (AAR) has ruled that the supply of gold coins and white goods to the dealers/stockists upon attaining a specified sales target under the sales promotion scheme is taxable as supply of goods. Accordingly, the input tax credit for such promotional material shall be eligible.
  • Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has amended the valuation rules about equity shares/compulsorily convertible preference shares for expanded angel tax provisions. The CBDT has also issued a clarification regarding the assessment of certain recognised start-ups.