Update
15 Jul 2022
Update
Budget 2022: Key Indirect Tax Proposals
14 Feb 2022
14 Feb 2022
The Finance Bill, 2022 (Bill) presented by the Finance Minister on 1 February 2022, proposes changes to various aspects of the indirect tax regime in India.
Under the Central Goods and Services Tax Act, 2017 (CGST Act), the two-way communication between supplier and recipient in filing returns will be done away with. Instead an auto-generated form providing information regarding available Input Tax Credit (ITC) will be implemented. This is likely to impact the eligibility of a recipient to avail ITC and may affect recipients who are dependent on the information provided solely by supplier. This is also likely to have a negative impact on the working capital of the recipient. Consequently, taxpayers will have to be more diligent while transacting with suppliers in order to avoid loss of ITC.
Further, with the concept of provisional claim of ITC also proposed to be removed, recipients will be unable to claim ITC provisionally if the supplier has not reported the necessary information.
On a positive note, there has been an extension in certain time limits which will provide taxpayers more time for availing ITC, rectifying errors in their returns, etc.
Under the Customs Act, 1962 (Customs Act), the definition of ‘proper officer’ will now be amended to empower the Central Board of Indirect Taxes and Customs (Board) to appoint officers of the Directorate of Revenue Intelligence (DRI) as ‘proper officer’ to issue show cause notices and also adjudicate upon them. This overcomes a decision of the Supreme Court which held that DRI officers, not being ‘proper officers’, lack the jurisdiction to issue show cause notices.
Download PDF to read more
If you would like to receive content directly in your inbox from our knowledge repository, please complete this subscription form. This service is reserved for clients and eligible contacts.
Under the rules of the Bar Council of India, Trilegal is prohibited from soliciting work or advertising in any form or manner. By accessing this website, www.trilegal.com, you acknowledge that:
We prioritize your privacy. Before proceeding, we encourage you to read our privacy policy, which outlines the below, and terms of use to understand how we handle your data:
For more information, please read our terms of use and our privacy policy.
