GST Compendium: February 2022

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The February edition of GST Compendium analyses various tax measures proposed in the Union Budget, important developments in GST, timeline extension for certain tax compliances and more.

Key highlights of the publication

  • Important updates/announcements: The Finance Minister rolled out the Union budget 2022-23 on 1 February 2022, proposing significant changes under the GST law with a specific focus towards easier facilitation and better administration. Further, numerous amendments have also been made in the Customs Tariff across sectors, along with certain procedural changes under the Customs laws.
  • Key judicial pronouncements: On the judicial front, the Supreme Court (SC) upheld the personal cost imposed by the Telangana High Court on the Revenue Authorities for unnecessary litigation and enhanced it. It is one of the rare occasions where costs have been imposed on the Revenue Authorities to send a message, to avoid undue hardship to the taxpayers and curb unnecessary litigation.
  • Decoding advance rulings: The Maharashtra Appellate Authority for Advance Ruling (AAAR) has held that providing facilitation services by head office (HO) to branch offices/units is to be treated as a supply of services leviable to the Goods and Services Tax (GST). Considering this matter has been an area of extensive litigation, the government could issue some guidance to avoid disputes and litigation.
  • Important developments in direct taxes: Considering the hardships faced by taxpayers, the Central Board of Direct Taxes (CBDT) has extended timelines for certain tax compliances. Further, the CBDT has notified the new Faceless Appeal Scheme, 2021, and E-advance ruling Scheme, 2022.