GST Compendium: December 2024

The December edition of the GST Compendium provides key updates on developments across GST, customs, and allied domains, helping businesses stay informed about the dynamic taxation ecosystem in the country. This edition covers significant court rulings, including the treatment of CENVAT credit for telecom towers and prefabricated buildings, and the consolidation of GST investigations. It also addresses compliance matters, customs clarifications, and direct tax procedures, offering valuable insights for businesses to navigate the complex taxation ecosystem.

Key highlights of the GST Compendium December 2024

• Important updates/announcements: In a significant relief to the telecom sector, the apex court ruled that CENVAT credit is permissible on towers and prefabricated buildings, recognising their essential role in delivering telecom services. By classifying these items as goods rather than immovable property, the SC opened doors for their treatment as inputs eligible for credit. Coupled with the court’s favorable stance in the Safari Retreats case, this decision sets the stage for keen anticipation of the government’s response.
• Key judicial pronouncements: The Bombay High Court weighed in on tax on advances. It upheld the levy of tax on advances while allowing the ITC on the same at the time of advance payment against a receipt voucher. This decision aligns GST provisions with business realities, reinforcing principles of fairness and consistency.
• Significant updates in direct taxes: The CBDT has prescribed the procedure for the disposal of the condonation of delay in filing the ROI for certain cooperative societies for AY 2023-24. Further, the CBDT has prescribed monetary limits for waiver/reduction of the interest levied in relation to the notice of demand.