Indirect Tax
Focus on scrutiny and audit of GST returns
[Excerpts from The Economic Times]
Vivek Johri, the Chairman of CBIC, indicated in a recent interview that one of the Board's key priorities in the next year would be to undertake scrutiny and audit of GST returns and make compliance easier for SEZs.
Extension of compensation cess
[Excerpts from Moneycontrol]
In a press conference, Nirmala Sitharaman stated that the GST Council has decided to continue the Compensation Cess till March 2026. This extension will be used to pay interest on the borrowed money.
ATF likely to be included under GST
[Excerpts from Moneycontrol]
The government is likely to propose a formula to bring aviation turbine fuel (ATF) under the ambit of GST. The government is expected to propose 18% GST in addition to the VAT or excise duty, with the formula being implemented only if it is agreeable to all the states. The proposal is expected to be tabled before the states and union territories at the next GST Council meeting.
Technical changes on GST Portal
[Excerpts from the news and updates on gst.gov.in]
Recently, the GST authorities have facilitated a few technical changes on the GST portal for the benefit of the registered taxpayers. The two key changes are as follows:
- From 1 January 2022 onwards, a taxpayer will not be allowed to file GSTR-1 of a month until the GSTR-3B of the preceding month has been filed.
- A new functionality has been introduced on the GST Portal to assist the taxpayers in the tax selfassessment. The interest applicable, if any, will be computed after the filing of the said GSTR-3B and will be auto-populated in the GSTR-3B of the next tax period.
Changes in Customs Duty rates
Pursuant to Union Budget 2022, multiple notifications have been issued to:
- Prune the list of customs duty exemptions [02/2022-Customs dated 1 February 2022] [05/2022-Customs dated 1 February 2022] while prescribing the validity/end dates for a few conditional exemptions [09/2022-Customs dated 1 February 2022]
- Exempt certain goods like pine nuts, crude granite, etc. from Social Welfare Surcharge (SWS) while imposing the same on certain textile items [03/2022-Customs dated 1 February 2022]
- Prescribe additional duty of customs on imports of transformer oil commonly known as ‘transformer oil base stock’ or ‘transformer oil feedstock’ [04/2022-Customs dated 1 February 2022]
- Prescribing effective rate on certain textile items up to 30 April 2022 [07/2022-Customs dated 1 February 2022]
- Exempt Agriculture Infrastructure and Development Cess (AIDC)/ Health cess/RIC on goods imported under specified notifications [08/2022-Customs dated 1 February 2022]
- Implement a graded BCD structure for wearable devices and their parts, sub-parts and sub-assembly [11/2022-Customs dated 1 February 2022], hearable devices and their parts, sub-parts and sub-assembly [12/2022-Customs dated 1 February 2022], smart meters and their parts, sub-parts and sub-assembly [13/2022-Customs dated 1 February 2022]
- Amend various notifications giving exemption to electronic items and medical devices [15/2022-Customs dated 1 February 2022]
- Amend Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 to simplify and automate the procedures [07/2022-Customs (N.T.) dated 1 February 2022]
- Rescind the levy of anti-dumping duty on import of “Straight Length Bars and Rods of alloy-steel,” “High Speed Steel of Non-Cobalt Grade”, and “Flat rolled product of steel, plated or coated with alloy of Aluminum or Zinc” originating in or exported to specified countries [05/2022, 06/2022 & 7/2022-Customs (ADD) all dated 1 February, 2022]
- Rescind countervailing duty imposed on imports of “Certain Hot Rolled and Cold Rolled Stainless Steel Flat Products” originating in or exported from China PR [01/2022-Customs (CVD) dated 1 February 2022].