GST Compendium: October 2024

The October edition of the GST Compendium provides an in-depth analysis of the landmark Supreme Court ruling on Input Tax Credit (ITC) availment for construction of immovable property, clarifying its constitutional validity under Section 17(5) of the CGST Act. This decision significantly impacts the real estate sector, allowing ITC claims for renting or leasing properties subject to functionality tests. Additionally, the edition covers key developments, including the GST amnesty scheme, RoDTEP scheme extensions, and notable judicial rulings on tax residency and treaty shopping, offering valuable insights for taxpayers and businesses to navigate recent changes and maximise benefits.

Key highlights of the GST Compendium October 2024:

• Important updates/announcements: From 1 November 2024, the GST amnesty scheme kicks in, offering conditional waivers on interest and penalties for demands from 2017-18 to 2019-20. Businesses should assess these changes and act swiftly to maximise the amnesty benefits.
• Key judicial pronouncements: In a landmark ruling, the Supreme Court, for the time being, has settled the long-standing debate on the availment of the ITC on GST paid for the construction of immovable property. However, the apex court confirmed the constitutional validity of Section 17(5) of the CGST Act. It held that such ITC can be claimed when the property is used for renting or leasing, subject to the functionality test.
• Significant updates in direct taxes: The CBDT has revised the monetary thresholds for filing departmental appeals before tribunals, high courts, and the Supreme Court. The CBDT has also established Dispute Resolution Committees (DRCs) under the e-Dispute Resolution Scheme, 2022, and issued the Direct Tax Vivad se Vishwas Rules, 2024, along with the related forms.