GST

Summary: This blog unpacks the sweeping GST rate rationalisations announced by the 56th GST Council meeting, covering key sectors such as food, healthcare, FMCG, agriculture, consumer goods, automobiles, infrastructure, and more. Beyond listing rate changes, we analyse their policy intent, business impact, and compliance challenges, from ITC reversals and refund reforms to supply chain recalibration and pricing strategies. For businesses, this is not just about new tax slabs but about aligning operations and strategy with a shifting indirect tax landscape.Continue Reading GST 2025: A Brave New Chapter in India’s Tax Reform

Treading a fine line: Extension is ultra-vires but valid?

Summary: This blog examines the ongoing judicial debate surrounding extensions of GST limitation periods in the wake of the pandemic and subsequent systemic challenges. It outlines the decision of the Hon’ble Madras High Court, which set aside Notification No. 56/2023 issued under Section 168A of the CGST Act, extending timelines for recovery orders for FY 2017-18, 2018-19, and 2019-20. The blog notes how this position differs from those adopted by the Hon’ble Guwahati, Telangana, and Bihar High Courts on the same matter, addresses the possible need for intervention by the Hon’ble Supreme Court, and outlines considerations for taxpayers.Continue Reading Treading a fine line: Extension is ultra-vires but valid?

Global Business, Local Tax: The Infosys GST Controversy and its Wider Implications

In an increasingly globalised economy, business activities extend beyond physical borders and traverse geographical boundaries, leading to varied tax implications due to outdated tax legislations that do not fully address these changes. In the service sector, tax obligations can arise even without traveling to different countries. A case in point is the recent incident of the revenue serving Infosys with a INR 32,403 crore (US$ 3.8 Billion) pre-show cause notice, which was later transferred to the Directorate General of GST Intelligence (“DGGI”) for further investigation. Prima facie, the tax assessment seemed not only excessive but also conceptually flawed, as it exceeded the annual profit declared by Infosys. The DGGI later withdrew the said notice. While the dust has settled on this high-stakes incident, the lessons may reverberate across India, particularly for multinational service providers. The questions raised during the investigation will have lasting significance and warrant consideration, extending beyond a single company or tax notice.Continue Reading Global Business, Local Tax: The Infosys GST Controversy and its Wider Implications

From courtrooms to clicks: Rethinking why simple GST rectifications require Court intervention

The Goods and Services Tax (“GST”) regime was introduced with the promise of a seamless, technology-driven tax system aimed at reducing cascading effects and ensuring smooth compliance. However, after seven years of its introduction, businesses and taxpayers have found themselves burdened with the rigidity of a tax regime, which makes the subsequent correction of even the smallest of clerical errors in returns quite difficult and requires litigation to have them rectified. Continue Reading From courtrooms to clicks: Rethinking why simple GST rectifications require Court intervention

GST liability on the benefits arising out of land: The conundrum continues

The applicability of Goods and Services Tax (“GST”) on various land-related rights has been a subject of ongoing debate, leading to uncertainty for businesses, developers, and policymakers. While the GST framework seeks to tax the supply of goods and services, transactions involving land and immovable property present unique challenges due to their distinct legal nature.Continue Reading GST liability on the benefits arising out of land: The conundrum continues

Legal debate at tipping point over Notification extending GST deadline

The legal validity of the contentious CGST Notification No. 56/2023 (“Notification“), is facing challenges across multiple High Courts in India. The Notification, issued by the Central Board of Indirect Taxes and Customs (CBIC), extended the timeline for passing orders under Section 73(10) of the Central Goods and Services Tax Act, 2017 (“CGST Act“) for financial years 2018-19 and 2019-20.Continue Reading Legal debate at tipping point over Notification extending GST deadline

GST on canteen facilities and it’s applicability on non-permanent employees

In the bustling landscape of Indian factories and corporate setup, providing canteen facilities and other perquisites to employees, deputed persons from sister concerns and third-party contractors have become a common phenomena. The Factories Act, 1948, statutorily mandates employers to provide certain amenities, including canteen services, for factories with more than 250 workers, but for others, it is voluntary and provided as a goodwill gesture. To maintain a conducive work environment, such facilities have become important. However, the advent of the Goods and Services Tax (GST) has introduced complexities, especially concerning taxation on canteen facilities provided to employees, deputed persons and third-party contractors.Continue Reading GST on canteen facilities and it’s applicability on non-permanent employees

The Goods and Services Tax (“GST”) legislation has recently completed its sixth anniversary. The 50th GST Council meeting conducted on July 11, 2023 was marked by tax rate changes, availability of exemptions, procedural amendments, etc. It is noteworthy that the GST Council is proactively considering representations and feedback from all quarters of the industry. While the Government has been persistent in its efforts to iron out all creases, bottlenecks continue to exist. It was also expected that several sectors, including online gaming, would get relaxation – that the GST authorities would simplify the law, avoid unnecessary ambiguities, but in reality, it appears that on certain fronts, it has merely focussed on increasing sources of tax collection.Continue Reading GST Council’s half century meeting & the inning ahead!

GST

English language and technical proficiency, coupled with the highly skilled workforce that India has to offer, has made the country a darling of most multinational companies (MNCs). For a while now, these MNCs have been outsourcing their routine as well as technical and complex business processes to their subsidiaries or third-party service providers in low-cost and efficient jurisdictions, including India. Indian entities, in turn, offer their expertise in customer care, follow ups for regular payables like credit card, life and healthcare insurance premiums, routine troubleshooting services, assisting internal departments like finance, accounting, human resources departments, etc., as well as supporting various complicated and complex issues like sophisticated high-end research and technology services, analytical and computational support services, etc. The Government has taken several steps to encourage the service sector and has come up with many benefits and incentives. However, there appears to be a new set of challenges that this sector must deal with, arising in the context of Goods and Service Tax (“GST”).Continue Reading Refund of Unutilised ITC cannot be Denied to Supplier of Subcontracted Services

Karnataka High Court’s decision on GST levy provides a comfort to highway projects

The concessionaire or contractors/ sub-contractors of the national/ state highways face a possible levy of Goods and Services Tax (“GST”) on their supplies. However, GST is exempted for services when toll is paid to access the roads or bridges.[1] The exemption is also applicable on payment of annuity for access to roads.[2] A contract in relation to highways may deal with several aspects such as construction of a highway, shops, operation of highways, maintenance of highways, collection of toll or separate charges like overhead charges, etc. Further, with different models of highway projects, it becomes essential to analyse the nature of supply, party rendering such supply to determine if any exemption or concessional rate is available.Continue Reading Karnataka High Court’s decision on GST levy provides a comfort to highway projects