In its latest update, World Bank has slashed India’s GDP growth forecast for financial year 2023 to 6.5% from 7.5% citing Ukraine-Russia war and global situation. This 6.5% becomes the lowest estimate by any agency so far. However, according to India’s Chief Economic Advisor, India is still on course for 7% GDP growth. In India local consumption shall drive growth amid oil worry.
According to IMF, Indian economy is likely to be world’s third largest economy by financial year 2028, and will be fifth largest by financial year 2023. It has however, warmed that worst is yet to come for global economy.
In Indian economy, core sector has shown robust growth @ 7.9% in eight sectors. India, presently the fifth largest economy of the world, may beat Germany, 4th largest economy by 2025-2026. Banks may play a critical role in the economic growth. These views have been expressed by RBI Dy. Governor.
Fiscal defect for first half of current year 2022-23 has touched 37% of full year target. Fiscal defect may remain at 6.4% of GDP in Financial Year 2023. Centre’s gross tax collections have shown healthy growth so far and are expected to surpass the full year budgeted target despite the Customs and excise duty cuts. While the scenario is optimistic on the tax collections front, the non-tax revenue could see some shortfall primarily due to lower dividend transfer from the RBI in the current fiscal year.
CBIC recently clarified on time limit for certain compliances in terms of Notification No. 18/2022-Ct dated 28.09.2022. It was clarified that the extended timelines for compliances are applicable to the compliances for FY 2021-22 onwards. The said compliances in respect of a financial year can be carried out in the relevant return or the statement filed/ furnished upto 30th November of the next financial year, or the date of furnishing annual return for the said financial year, whichever is earlier.
According to media reports, e-invoicing may be mandatory for businesses with turnover of over Rs. 5 crore in a year from January, 2023. Government aims to gradually bring all businesses with turnover of over Rs. one crore into e-invoicing system. It is learnt that GSTN has already initiated the exercise to upgrade the capacity and facilitate this.
Finance Minister has expressed that Budget-2023 will focus on growth and address inflation issue. Budget won’t pass stress to people. Also, despite global slowdown, Indian economy may grow @ 7% in financial year 2023.
Ministry of Finance has commenced its Union Budget-2023 exercise by inviting suggestions from Industry and Trade Associations for Budget 2023-24 and changes in direct and indirect taxes which may be submitted by 5th November, 2022.
GST Council has issued an advisory on Authority regarding action consequential to issuance of Show Cause Notice and for issuance of recurring SCN in case of an enforcement action initiated by the Central authorities against a taxpayer assigned to State and vice versa. The GST Implementation Committee of GST Council has approved the extension of due date of filing GSTR-3B by a day upto 21st October, 2022.
GST Council’s meeting will now take place in November, 2022 to discuss, inter alia, the reports of GoM on Appellate Tribunal and taxation of online games, casinos and horse race etc. The long gap since last meeting is only delaying the reforms.
October, 2022 GST collection has once again crossed Rs. 1.50 lakh crore with Rs. 1,51,718 crore GST collection. This is the second highest collection so far and the collection has breached Rs. 1.40 lakh for eight times in a row. The gross GST revenue collected in the month of October, 2022 is Rs. 1,51,718 crore of which CGST is Rs. 26,039 crore, SGST is Rs. 33,396 crore, IGST is Rs. 81,778 crore (including Rs. 37,297 crore collected on import of goods) and Cess is Rs. 10,505 crore (including Rs. 825 crore collected on import of goods), which is second highest till date.
In an interesting decision, it has been held by a Delhi Court that an accused cannot be forced to provide the pass word of the electronic gadgets seized during investigation. However, help can be taken from specialized agencies or persons to crack the pass word to access the data of computer etc. An accused has a fundamental right to maintain silence as per Article 20(3) of the Constitution and forcing him to reveal password would be violative of the right. Will the investigating agencies including taxation laws be able to digest this ? What next ?
Bombay high court in one of the cases has held that there should be a minimum of 30 days time given to file reply to SCN under GST law. Anti Profiteering Authority (NAA) has concluded violation of section 171 relating to anti-profiteering on ‘Loreal’ with amount of Rs. 186 crore.
Author Bio
Nice Article Thank You Sir.