Income Tax Law Updates:

Notification/Circulars

Notification No. 10/2022 dated 21st January, 2022

Certain Income of National Skill Development Corporation, will be exempted under clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961).

​E-advance Rulings Scheme, 2022 [Notification No. 07/2022 dt. 18-01-2022]

The Central Board of Direct Taxes (CBDT) has notified e-advance rulings Scheme, 2022 applicable with effect from 18-01-2022. The Scheme shall apply to the applications of advance rulings made to the Board for Advance Ruling or applications of advance rulings transferred to such Board

​Guidelines under clause (10D) section 10 of the Income-tax Act, 1961

W.e.f. 01.02.2021, the sum received under a Unit Linked Insurance Policy (ULIP), issued on or after 01.02.2021, shall not be exempt under the said clause if the amount of premium payable for any of the previous years during the term of such policy exceeds Rs 2,50,000.

Notification No. 8/2022 dated 18-01-2022

Section 45(1B) provides that when a person receives an amount under ULIP, to which exemption under Section 10(10D) does not apply, any profits arising from such receipt shall be chargeable to tax under the head capital gains. The CBDT has notified Rule 8AD for computation of income deemed as capital gains in such cases.

Goods and Services Tax Law Updates:

Circular/Notification

Circular No. 1081/02/2022-CX [F. No.296/63/2020-CX9]Dated 19.01.2022: :

CBIC Master Circular on Recovery and Write-off of Arrears of Revenue. Board has issued Instructions/Circulars relating to recovery of arrears under Central Excise, Service Tax and Customs from time to time. Considering the changes that have taken place, especially after the introduction of GST in July, 2017, it has become imperative to update and revamp the procedure for recovery of arrears of Indirect taxes and Customs.

AAR/Case Laws/Judgements

M/s Rajasthan Rajya Vidhyut Prasaran Nigam Ltd. Vs Commr of CGST Jodhpur [CESTAT New Delhi] dt. 14-01-2022

Hon’ble CESTAT held that compensation for failure under a contract is NOT consideration for service under the contract and also following the law laid down by Madras High Court in GE T&D that Notice pay, in lieu of termination, however, does not give rise to the rendition of service either by the employer or the employee, the impugned order upholding confirmation of a demand of service tax on the notice pay received/recovered by the appellant from its employees for premature resignation cannot be sustained and needs to be set aside.

National Internet Exchange of India V/s Union of India & Ors. [DELHI HIGH COURT] Order dated 14-01-2022

CGST Refund: The petitioner states that once the refund application, though defective, has been filed within the prescribed time period, it cannot be rejected as time barred if the rectified refund application is filed after the expiry of the said period. 

In re Syngenta India Limited (GST AAR Maharashtra) dated 19-01-2022

GST not payable on recoveries from employees for notice pay recoveries & for providing parental insurance

Re: Hylasco Bio-Technology Private Limited [TELANGANA-AAR] Order dated 17-01-2022

[Classification of goods] The product Rodent Feed is classified under the HSN 2309 90 10 which is taxable @18% under Sl.No.453 of Schedule III of Notification No. 01/2017.

Re: Next Education India Private Limited [TELANGANA-AAR] Order dated 17-01-2022

[Classification of goods] The goods sold by the applicant has a Central processing unit, memory & storage with an onscreen display of output which is based on the input supply by the user. Therefore in view of the notes to Chapter 84 and also the HSN entries under 8471, the goods fall under HSN 8471.

Re: Radiant Corporation Private Limited, [TELANGANA-AAR] Order Date: 21.01.2022

The applicable rate of CGST will be [2.5% CGST & SGST each] on the supply of pressure tight cables, non- pressure tight cables and special cables for use in S4 submarine supplied by the Applicant to DMDE, Ministry of Defense, Govt of India. These goods would be considered to be as parts of warships and accordingly classifiable under Sl.No.252 read with Sl.No.250 of Schedule I in Notification No. 01/2017 dated: 28.06.2017.