Policy Update - Goods and Services Tax

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Goods and Services Tax

October 2024

Comprehensive Review of the Goods and Services Law

  1. Rate Rationalization
    • Clarity on implication of 28% GST on online gaming
    • GST exemption on health insurance premiums
    • Challenges faced by the Oil & Natural Gas Sector
    • Issues faced by Airline Sector
    • Seeking sugar content-based tax on aerated drinks
    • Concessional tax rates for Maintenance Repairs and Operations (MRO) company (new unit)
    • Reduction in state VATs on ATF and inclusion of ATF in GST
    • & Others
  2. Inverted Duty
    • Input tax credit refund advocacy for edible oil industry
    • Advocacy to address inverted duty rates for MRO sector
    • inverted duty structure for oil field service providers
    • & Other
  3. Legislative & Procedural Issues
    • Issues faced by E-commerce Operators (ECOs) under Section 9(5)
    • Banking Sector: (a) Levy of GST on investment services for overseas investors by classifying them as‘intermediary services’ (b) Clarification on valuation of cross-charge transactions between Indian branch office and foreign branch office
    • Request for extension on date for implementation of Invoice Management System introduced by GSTN
    • & Others

September 2024

1. Tax Forums Advocacy Wins at the 54th GST Council Meeting :

● Place of supply for advertising and data-hosting services by Indian entities to foreign companies regarding export status.
● Voluntary e-invoicing enabled for B2C supplies.
● Addressing denial of tax refunds on exports for advance authorization holders, EOUs, STPIs, etc proposed.
● Exemption for services imported by foreign airline branches from related entities abroad without consideration.
● Clarification on GTA (expand GTA) services
● Amnesty scheme to take effect on 1 Nov 2024, with procedures for waiver of interest/penalties for FY 2017-2020.
● Procedure for rectifying orders on wrong input tax credit claims

August 2024

1. Forum to submit representation for 54th GST Council meeting on the following key themes :

● GST challenges for data hosting service providers in India
● Proposing the input tax credit refund advocacy for edible oil
● Levy of GST on investment services provided to overseas investors by classifying the same as ‘intermediary services’
● Clarification on valuation of cross-charge transactions between Indian branch office and foreign branch office, especially in case of foreign banks
● Taxability issues faced by E-commerce Operators (ECOs) under Section 9(5) of the Central Goods & Services Tax Act (CGST Act).
● Clarity on implication of 28% GST on online gaming platforms
● Advocacy to address inverted duty rates for MRO sector
● Rationalization of GST rates across goods and services

July 2024

1. Forum to submit feedback on legislative and procedural amendments proposed in the 53rd GST council meeting on the following issues:-

a. Clarification with respect to MRO services
b. Need for Clarification around place of supply for data hosting service providers in India
c. Need for clarity on issues pertaining to the logistics sector
d. Recommendations on the Amnesty Schemes

2. Focussed advocacy on implications of 28 per cent GST on online gaming platforms including retrospective impact on the industry.

3. Submit feedback on legislative and procedural amendments proposed in the 53rd GST council meeting.

4. Findings of the USISPF supported Deloitte's survey on GST@7, can be accessed here

can be accessed here

June 2024

1. In line with the upcoming GST council meeting on Saturday, June 22, 2024, we submitted industry representation around legislative and procedural issues to GST policy wing.

2. GST survey - India's Goods and Services Tax (GST) has reached a significant milestone – its seventh year! This landmark reform has transformed the indirect tax landscape, and with consistently strong GST collections exceeding INR 20.14 trillion in FY 2023-24, the stage is set for even more positive developments. Click here to launch the survey and submit your response before 1st June 2024.

Click here to launch the survey and submit your response before 1st June 2024.

May 2024

1. Continued advocacy on E-way Bill related issues.

2. Meet Department of Revenue officials to discuss need for clarifications on GST related investigations being carried out against foreign shipping lines.

3. Continued advocacy with MOF and MOD to address tax issues concerning Maintenance, Repair, Overhaul industry in India.

April 2024

1. Plan to submit GST legislative and procedural issues to GST policy wing.

2. Industry consultation with GST policy wing to discuss recommendations on challenges faced on export of services and need for liberalization of export rules (e.g., intermediary services, performance-based services etc), issues and challenges on the proposed amendment to the Input Service Distributor (ISD) provision – April 3rd.

3. Industry roundtable with Ministry of Defence (MoD) and Ministry of Finance (MoF) to address matter of inverted duty rates on Maintenance, Repair and Overhaul (MRO) – April 5th.

March 2024

1.Meet GST authorities to discuss matters related to challenges faced on export of services and need for liberalization of export rules (e.g. intermediary services, performance based services etc)

2. CBIC has notified “Public Tech Platform for Frictionless Credit” as system with which information may be shared by common portal in accordance with Section 158A of CGST Act.

3. In light of upcoming GST council meeting likely in March 2024, we plan to submit GST legislative and procedural issues to GST policy wing.

4.Initiate advocacy with Ministry of Defence and Ministry of Finance to address matter of inverted duty rates on MRO.

Feb 2024

1. Initiate advocacy with Ministry of Defence and Ministry of Finance to address matter of inverted duty rates on MRO.

2. In light of the upcoming GST council meeting likely in March 2024, we plan to submit GST legislative and procedural issues to the GST policy wing.

3. Need for clarification on recent amendment relating to place of supply for e-commerce companies.

Jan 2024

1. ESOPs classification under GST Law.

2. Need for clarification on recent amendment u/s 10 IGST Act relating to place of supply.

3. Need for paperless invoicing.

4. Ambiguities relating to FTWZ supplies - Entry 8(a) of Sch III read with Expln 2.

5. Need for further clarity on impact of the Supreme Court decision in the case of M/s Northern Operating Systems Private Limited pertaining to secondment of employees.

6. Ambiguities relating to Free Trade Warehousing Zone supplies. Need for clarifying that Free Trade Warehousing Zone will mean a Free Trade Warehousing Zone set up under the SEZ Act, 2005 for the purpose of GST benefits.

7. Clarification issued by West Bengal commercial tax department on allowing registration of common place of business for multiple sellers supplying goods through a shared facility of the same e-commerce operator.

ESOPs classification under GST Law
Need for clarification on recent amendment u/s 10 IGST Act relating to place of supply
Need for paperless invoicing
Need for clarifying that Free Trade Warehousing Zone will mean a Free Trade Warehousing Zone set up under the SEZ Act, 2005 for the purpose of GST benefits.
Need for further clarity on impact of the Supreme Court decision in the case of M/s Northern Operating Systems Private Limited pertaining to secondment of employees
Ambiguities relating to Free Trade Warehousing Zone supplies
Refer FAQs on e-commerce under GST here

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