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The government is considering amendments in the GST circular 210, which clarifies on valuation of supply of services import by a related party where recipient is eligible to full input tax credit, to make it simpler for its correct interpretation by tax officers, according to a senior finance ministry official.
As the 54th GST Council has granted exemption to the foreign airlines, various sectors facing tax notices on import of services are urging the government for clarity on the issue.
Recently the issue of pre-show cause notice to Infosys for non-payment of IGST amounting to over ₹32,000 crores on import of services from their overseas branch offices (related person) came under widespread criticism, so much so that a former CFO of the company termed it as a case of tax terrorism.
India is considering a significant change to the GST framework by potentially excluding related-party transactions from the GST net aiming to simplify tax compliance and reduce the administrative burden on businesses.
The government is likely to exclude related-party transactions from the ambit of goods and services tax (GST) if there is no commercial consideration involved, as per sources.
Hon’ble SC recently reiterated that the doctrine of promissory estoppel does not apply to the exercise of legislative powers by the State; Here’s the extract;
In a relief for foreign firms giving loans to Indian subsidiaries, tax authorities have said goods and services tax (GST) will not be imposed on them, subject to some caveats.
CBIC issued a Circular No. 218/12/2024-GST dated 26.06.2024 to provide Clarification regarding taxability of the transaction of providing loan by an overseas affiliate to its Indian affiliate or by a person to a related person