A few of the governments steps have yielded great results. The boost to manufacturing from the lower tax rate on new manufacturing companies to the PLI schemes being announced is helping make India stronger in manufacturing.
As the world normalizes from the Omicron lead wave three of the pandemic, there are multiple moving parts to the global economy. Inflation is running above most central banks comfort zone and the Federal Reserve’s rate hike and liquidity withdrawal announcements have given global markets a bit of a jolt.
USA is experiencing a very strong economic growth and very low unemployment, while China is coming hard on its real estate sector which is causing some issues in its local financial markets and threatens to make a lot of people unemployed while in India, some sectors like IT are seeing huge increments in salaries while it is reported that the lower segments of the society have seen a reduction in wages over the last five years.
Greed has become commonplace and this can be seen across easy money making that people have experienced in the stock market to the number of people who are speculating in alternative assets. The case of a startup founder who was asked to step down from the company for investigations of fraud and also an alleged recording that was leaked where he was threatening a bank employee for an opportunity lost. These instances should serve as reminders for us to check our own orientation on the emotional spectrum.
Meanwhile, there is greed and fear being played out between the NATO forces and Russia with respect to Ukraine. We hope that peaceful negotiations can ensue and a war can be averted.
INDIRECT TAX (GST)
EXTENSION ON GST REFUND APPLICATION
In a major relief on account of drastic increase in number of COVID cases across the country, The High Court of Bombay referring to the order of Hon’ble Supreme Court regarding the limitation for any suit, appeal, application and or proceedings has held that limitation prescribed for refund application under Section 54 of CGST Act 2017 shall also get extended. The analysis of the said case law is attached herewith.
NON EXTENSION OF E-WAY BILL VALIDITY DOES NOT AMOUNT TO TAX EVASION
The Hon’ble Supreme Court affirmed the judgement passed by the Hon’ble Telangana High Court and held that tax evasion cannot be presumed on mere non-extension of validity of E-way bill by assessee due to traffic blockage and agitation, for which revenue authority is responsible for not providing smooth passage of traffic. The brief analysis of the said case law is enclosed herewith.
GST AMENDMENTS EFFECTIVE FROM 01.01.2022
With effect from 1st January, 2022, section 16 which prescribes conditions for availment of ITC has been amended to introduce an additional condition - Input Tax Credit on invoices to be availed only to the extent such invoices are reflected on the portal in Form GSTR-2B. An analysis on what this implies and how it impacts you is attached herewith .