TAX BY MANISH: Indirect Tax Regulatory Updates

Friday, 2 May 2025

Regulatory Updates

Customs Amendment Rules, 2025: Terms like "certificate" replaced with "proof" of origin to broaden documentation scope.
CAROTAR Guidelines Updated: "Proof of Origin" now includes self-declarations; updates made to FTA Cell responsibilities and ICES portal.

GSTAT Procedure Rules, 2025:
- Defines tribunal timings, appeal formats, and timelines for responses.
- Tribunal to pronounce orders within 30 days of final hearing.
GST Registration Instructions:
- Clarifies required documents and process to avoid unnecessary queries from officers.

ITC on Voucher Services: Stay granted as ancillary services liable to GST.
Residential Plot Development: Tax demand stayed; transaction falls under Schedule III.
ITC Reversal Demand: Stay granted; notification did not bar input service credit.
Corporate Guarantees in REIT: Stay granted; valuation cannot be applied retrospectively.
Concessional GST on Ayurvedic Medicines: HC to decide; petitioner relied on AYUSH guidelines.
COVID Vaccination as Healthcare: Stay granted; vaccination deemed exempt healthcare service.
Export Refund Denial due to Intermediary Tag: Stay granted; petitioner not intermediary.
Time-Barred SCN (Section 73): Stay granted as SCN issued beyond statutory time limit.

CST Rule Struck Down: SC held Rajasthan’s Rule 17(20) as ultra vires to CST Act.
ITC without Physical Delivery: Allowed under deemed receipt provisions.
Mutuality in Clubs under GST: Kerala HC held retrospective tax on members unconstitutional.
Non-filing of TRAN-1: Credit refund allowed based on rights accrued under the old regime.
GST Portal Notices: Uploading is valid service, but must be effective; ex parte orders set aside conditionally.
Solatium Payment: Exempt from GST; considered land sale, not "tolerating an act".
Development Rights Transfer: Not taxable under Entry 5B; no TDR involved.
ECB Fee Service Tax Demand Quashed: Prior voluntary payment nullifies demand.
Clerical Error in GSTR-1: Right to correct upheld despite expired time limit.
No RCM on Branch Office Remittances: Treated as intra-entity, non-taxable.
Customer Support Not Intermediary: Services deemed exports due to independent contracts.

TAX BY MANISH