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Indirect Tax News


IDT Developments and Associated Procedures

1. Finance Bill 2021 receives Presidential AssenT:

The Finance Bill, 2021 introduced by the Finance Minister during the Union Budget presented on 1 February 2021 received the assent of the Hon’ble President, on 28 March 2021. While the changes which were introduced under the GST laws are now a part of the respective legislations, the same would be made effective from a date to be notified later.


2. Important decisions to be taken in upcoming 44th GST council meeting:

The 15th Finance Commission in its report has recommended merging of two GST rates of 12 per cent and 18 per cent. This may be discussed in forthcoming meeting of GST Council. Along with the merging of tax slabs, issues such as correcting inverted duty structure on textiles, fertilizers etc. may also be taken up.


3. Supreme court on the powers of DRI officers to issue SCNs: 



a. Registered persons filing monthly GST returns: A registered person shall not be allowed to file monthly GSTR-01 if he has not furnished GSTR-3B for preceding two months.

b. Registered persons filing quarterly GST returns: A registered person shall not be allowed to file periodical GSTR-01 if he has not furnished GSTR-3B for preceding tax period.


c. Registered person restricted to use balance in Electronic Credit Ledger under Rule 86B: A registered person shall not be allowed to file GSTR-01 or use invoice furnishing facility if he has not furnished GSTR-3B for the preceding tax period.


2. Exemption from Aadhar Authentication to Certain class of taxpayers

Vide Notification No. 03/2021-Central Tax dated 23 February 2021, a class of person namely a person who is not citizen of India, Department of Central or State Government, local authority, Public Sector Undertaking, etc. are exempted from undertaking Aadhar authentication.


3. Notifications related to E-Invoicing  









8. Clarifications issued by CBIC

  • Vide Circular No. 5/2021-Cus dated 17 February 2021 it is clarified that if there is mismatch which is resulting in holding up of IGST refunds in respect of all past shipping bills, irrespective of its date of filling, subject to payment of Rs. 1,000/- as fee towards such rendering of service by Customs Officers for correlation and verification of the claim.
  • Vide Circular No. 7/2021-Cus dated 22 February 2021, the issues relating to payment of Agriculture Infrastructure & Development Cess (‘AIDC’) by EOU unit are clarified. CBIC has clarified that EOU unit would be entitled to claim the upfront exemption from payment of AIDC. However if the inputs are used for clearance in DTA, then EOU unit would be required to surrender the AIDC exemption along with BCD exemption. Similarly, it is clarified that the benefit of depreciation on capital goods which is allowed for the purpose of calculating the customs duty while removing the capital goods from EOU unit would also be allowed for the purpose of calculating the liability of AIDC as well.

 From The Newsletter


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