Tag: Finance Bill 2023

Lok Sabha approves to setting up of GST Appellate Tribunal for the resolution of disputes under GST

Lok Sabha on Friday cleared changes in the Finance Bill to pave the way for setting up an appellate tribunal for the resolution of disputes under GST.

Currently, taxpayers are filing writ petitions before high courts in the absence of the appellate tribunal.

As per the amendments proposed in the Finance Bill 2023, which was passed by Lok Sabha on Friday, benches o the GST Appellate Tribunal would be set up in every state while there will be a principal bench in Delhi which will hear appeals related to place of supply’.

Even after more than five years of implementation of the Goods and Services Tax (GST), the appellate tribunal has not been set up. As a result, unresolved legal matters under GST have accumulated.

Nangia Andersen India’s Tanushree Roy, the Director- of Indirect Tax, said the establishment of the appellate tribunal would result in a lower burden on high courts, Supreme Court and at the same time, would also provide taxpayers with a much-needed reprieve.

“This is certainly a welcome and a positive move, ending the industry’s long wait for the establishment of the GST Appellate Tribunal,” Roy said.

EY Tax Partner Saurabh Agarwal said the amendment made in Section 109 of the CGST Act would help the government in setting up the GST tribunal in a time-bound manner.

It would also enable the principal bench to take certain important decisions such as the distribution of cases amongst the state benches, and referring of cases to other members if there is a difference in views within the same bench or otherwise. These would help in expediting the decision making process, Agarwal added.

“Further, on the vexed issue with respect to the place of supply, the power to hear the appeal should now vest with the principal bench which would likely aid in better decision-making,” Agarwal said.

Abhishek Jain, Partner, Indirect Tax at KPMG in India, said it will bring to an end the long wait by the industry and help streamline pending litigations.

Finance Bill 2023 passed in Lok Sabha, key amendments

Finance Bill 2023 was passed in the Lok Sabha without a discussion on Friday. The Bill, which gives effect to tax proposals for the fiscal year starting April 1, A total of 64 official amendments were proposed in the Bill.

Some of the amendments in the Finance Bill 2023 are:

1. Mutual Funds (MFs) having less than 35 percent AUM (Assets under management) in domestic equity are to be taxed as short-term capital gains.

2. Enhanced tax benefits to offshore banking units operating in GIFT City (Gujarat International Finance Tec-City). Offshore banking units to get 100 percent deduction on income for 10 years.

3. Tax on Royalty or technical fee earned by foreign (non-resident) Cos hiked from 10 percent to 20 percent.

4. No Change in tax on non-par savings insurance products (Rs 5 lakh cap remains).

5. No change in taxation on REITS/INVITS despite representation (‘Repayment of loans’ from REITS to the investor to be taxed as ‘income from other sources and NOT as capital gains).

6. No change in residential housing Rs 10 crore cap on capital gains re-investment.

7. All credit cards payments for foreign tours to be considered under LRS. The Reserve Bank of India (RBI) to look into the payments made through credit cards for foreign tours which escape tax at source.

8. A committee to be set up under the finance secretary on the pension system to address the needs of employees and also maintain fiscal prudence.

9. Tax Collection at Source (TCS) shall apply to all Liberalized Remittance Scheme (LRS) even if within India.

10. Tax proposed on the income from debt mutual fund at the applicable rate since it is of the nature of interest income

11. Marginal relief proposed to the tax that one pays should not be more than the income that exceeds 7 lakh (Rs 100 in this case).

12. The Securities Transaction Tax on sale of options hiked to Rs 2,100 on a turnover of Rs 1 crore, compared to the earlier Rs 1,700.

Finance Bill cleared in Lok Sabha with 60 amendments, including taxation of mutual fund gains

Lok Sabha on Friday passed the Finance Bill 2023 giving effect to tax proposals without debate amid slogans by opposition members demanding a JPC probe into the allegations against the Adani group of companies.

The Fiance Bill was passed with with over 45 amendments. Among the amendments is the governments’ move to tax investments in debt mutual funds as short-term capital gains.

Besides this, 20 more sections have been added to the Bill.

While the House was taking up the Bill, several opposition members were in the well raising slogans and holding placards demanding probe by a Joint Parliamentary Committee into the allegations against Adani group of companies following a report by a US based short-seller.

As sloganeering continued, the chair adjourned the proceedings of the House till Monday.

On Thursday the Budget was passed without any discussion.