Now that we are half- way through the current fiscal, rating agency Fitch has lowered the economic growth forecast of India in FY 2023 to 7% against an estimate of 7.8% owing to global slowdown. India rating has lowered the growth from 7% to 6.9%. Other agencies have also reduced marginally but Citi group has lowered it from 8% to 6.7%. According to Chief Economic Advisor, India is well poised to sustain the 7% growth per year as against Economic Survey estimate of 8%.
According to Revenue Secretary, Government is working on a scheme for decriminalization of offences under the GST law. The thinking is that if there has been a mistake on the part of a corporation or a person, let them pay the money with penalty and move on or compound the offence and move on.
The 48th meeting of GST Council which was expected to meet on September, 2022 may now meet in October, 2022. It may discuss the recommendations of GoM on levy of GST on Casinos and Online Games as well as constitution of GST Tribunals in the country. GoM on rate rationalization is also to submit its report.
Supreme Court has ruled that larger bench judgment shall prevail irrespective of number of judges on majority, i.e., 4-3 majority judgment of 7 member bench would prevail over a decision by 5-0 majority of a five member bench.
System for online monitoring of GST Audits
- For effective monitoring and oversight of GST audits, CBIC has developed a system for online monitoring of GST audits initiated by tax officials across the country for effective oversight of the audit process.
- This will ensure quality of the tax returns filed.
- Audit of companies by GST authorities is in addition to the GST audit that firms, barring the small ones, get conducted.
- The tax authority’s online monitoring of audits assumes significance so as to ensure that there is no revenue leakage while also ensuring that the audit process does not become burdensome on tax payers.
- Now, a web-based tool for monitoring the progress of audits end-to-end has been developed along with a dashboard, according to an update posted on CBIC website.
(Source: Media Reports / CBIC update)
Changes in E-scrips & Electronic Duty Credit Ledger
- CBIC has extended the validity of e-scrips from 1 year to 2 years.
- CBIC has also amended Electronic Duty Credit Regulations, 2021 as notified vide Notification No. 75/2021-Customs (NT) dated 23.09.2021
- The e-scrip shall be valid for a period of two years from the date of its creation in the ledger and any duty credit in the said e-scrip remaining unutilized at the end of this period shall lapse.
- The period of validity of the e-scrip (two years from its creation) shall not change on account of transfer of the e-scrip.
- Any bill of export under section 50 of the Customs Act, 1962 on or after the January 1, 2021 and having a claim of duty credit under the Scheme shall be processed in the customs automated system.
- The claim shall be allowed by Customs according to the conditions and restrictions notified for the Scheme. Once the claim is allowed, a scroll for duty credit will be generated separately for each Scheme.
(Source: Notification No. 79/2022-Customs (NT) dated 15.09.2022)
Judicial Discipline: Larger Bench Judgment to prevail
- Constitution bench of Apex Court has ruled that larger bench judgment shall prevail irrespective of number of judges in majority or constituting the majority.
- For example, a judgment of seven judge bench with 4-3 majority would prevail over a five member bench with unanimous (5-0) decision.
- In view of Article 145(5) of the Constitution of India, concurrence of a majority of the judges at the hearing will be considered as a judgment or opinion of the Court.
- The majority decision of a Bench of larger strength would prevail over the decision of a Bench of lesser strength, irrespective of the number of Judges constituting the majority.
[Source: M/S TRIMURTHI FRAGRANCES (P) LTD. THROUGH ITS DIRECTOR SHRI PRADEEP KUMAR AGRAWAL VERSUS GOVERNMENT OF N.C.T. OF DELHI THROUGH ITS PRINCIPAL SECRETARY (FINANCE) & ORS. - 2022 (9) TMI 895 - SUPREME COURT- 2022 (9) TMI 895 - SUPREME COURT]
GoM for boosting Real Estate Sector under GST regime
- Central Government has re-constituted Group of Ministers (GoM) for suggesting steps to boost real estate sector under the present GST regime.
- The GoM shall be headed by Mr. Devendra Fadnavis and has representatives from the States of Punjab, Gujarat, Kerala, Goa, Uttar Pradesh and Bihar.
- This constitution superseded earlier office memorandum dated 10.02.2022.
[Source: Office Memorandum No. S-31011/12/2021-DIR(NC)-DOR dated 22.09.2022]
