The International Monetary Fund (IMF) has retained India’s economic growth rate at 7% for the current fiscal 2024-25. For 2026, IMF’s forecast is of 6.5%. On the other had RBI’s forecast for 2025 is 7.2%. For 2025, growth projections for China is 4.5%, US is 2.2% and World is 3.2%.
Justice D.Y. Chandrachud demitted the office of Chief Justice of India and India has now a new Chief Jusitce of Supreme Court of India, 51st Chief Justice, Mr. Justice Sanjiv Khanna who has been administered the oath on 11 November, 2024.
In a significant judgment by majority (8:1), Supreme Court’s 9 judge bench has upheld the legislative power of states to regulate and tax industrial liquor. It held that states have regulatory powers over production, manufacture, supply and pricing of industrial alcohol. It over – turned a 7- judge decision which held that state’s powers were limited to taxing alcohol for human consumption only. Industrial alcohol comes within the meaning of intoxicating liquor under Entry 8 of List II (State list) of Constitution and that Parliament does not have legislative competence to enact a law taking control of the industry of in intoxicating liquor falling under Entry 8 of List II in exercise of powers under Article 246 read with Entry 52 of List I.
The scope goes beyond alcoholic beverages and includes alcohol not meant for human consumption. With this, a dispute for long gets settled. This will also impact taxing industrial liquor under GST and now states will be able to levy state excise duty and VAT on all types of alcoholic liquor and beverages.
Apex court has given its final verdict in Canon India case. Accordingly, it dealt with jurisdiction issue of DRI officers to issue show cause notice. Officers of DRI, DG of Central Excise Intelligence and Commissionerates are competent to issue show cause notices.
CBIC issued a Corrigendum to Notification No. 09/2024- Central Tax (Rate) dated 08.10.2024 stating that the reference to ‘any property’ in the said notification is to ‘immovable property’ and not all or any properties. Also, a corrigendum has been issued to Circular No. 237 dated 15.10.2024 clarifying that restriction on refund shall not be applicable to amounts of pre-deposit made against appeals under section 107 and 112 of CGST Act, 2017. Both these Corrigendum’s make sense as these were being interpreted differently by various stakeholders.
CBIC has also issued instructions specifying that there will be mandatory virtual hearing (e-hearing) of all cases of appeal and adjudication across all indirect taxes, viz, CGST, IGST, Customs duty Central Excise and Service Tax. However, taxpayer can seek physical hearing citing reasons and the concerned authority may allow the same by recording the reasons in writing.
GSTN has been issuing advisories on various procedural aspects of GST law implementation and recent changes. Recently, it has issued guidance on Form GSTR-3A, procedure for depositing tax under new section 128A for waiver of interest and penalties etc. GSTN has advised that GST Form SPL-01 and SPL-02 will be available from January, 2025 only. Invoice Management System (IMS) has also been implemented.
GST Council is likely to meet on 21-22 December, 2024 in Rajasthan and may discuss on GST rates on levy of GST on insurance plans including that on health insurance for senior citizens. However, decision on rate rationalization may get further delayed as few states fear revenue loss. Presently, GST rates of 18% and 28% account for about three-fourth of total GST revenue.
The deadline for availing input tax credit and credit notes for invoices of 2023-24 is 30th November, 2024 and as such taxpayers need to check that all such compliances are done with proper due diligence.
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