Lakshmikumaran and Sridharan attorneys

LKS monthly newsletter, Indirect Tax Amicus for December 2024, is live. #Newsletter #LinkedInNewsletter #InDirectTax #Taxation

Ratan Jain, Executive Partner, and Rangarajan A, Senior Associate, authored an insightful article titled "IGST on FTWZ Transactions: Retrospective Amendment to Put Dichotomy to Rest", published by Lexology.   The article examines whether Free Trade and Warehousing Zones (FTWZs), created under the Special Economic Zones Act, 2005, qualify as "bonded warehouses" under the Customs Act, 1962. This distinction is critical as it determines whether transactions within FTWZs are exempt from IGST until goods are cleared to the Domestic Tariff Area (DTA). Divergent rulings by various Authorities for Advance Ruling (AARs) have contributed to the uncertainty surrounding this issue.   The GST Council, in its 55th meeting, proposed a retrospective amendment to the CGST Act, expressly exempting FTWZ transactions from IGST prior to DTA clearance. This clarification, if given effect, eliminates ambiguity, aligning FTWZ operations with bonded warehouse principles and enhancing ease of doing business.   Read the full article here - https://lnkd.in/gtBpyJC3 #FTWZ #BondedWarehouses #SEZ #CustomsAct1962 #IGST #GSTCouncil #55thGSTMeeting #EaseOfDoingBusiness #Taxation #IndirectTaxes #AdvanceRuling #TradePolicy #RetrospectiveAmendment #DTA #IndianEconomy #PolicyClarification #TaxUpdates

LKS wishes everyone a Happy New Year! 🎉 #Festivities #newyear

Rachit Jain, Executive Partner, along with Principal Associate Harshdeep Khurana and Senior Associate Aishwarya Vardhan, co-authored an insightful article titled, Customs Duty Exemptions and SWS: Legal Debate Reignited, which was published by TIOL PRIVATE LIMITED.   The article explores the contentious issue of whether Social Welfare Surcharge (SWS), introduced in 2018 to fund social programs, is payable when Customs duty is exempted or discharged using duty scrips. It traces judicial precedents, including key Supreme Court rulings like Unicorn Industries, which clarified that exemptions must explicitly cover surcharges.   The Dalmia Cement judgment by the Orissa High Court ruled that SWS is not applicable without both levy and collection of Customs duty, diverging from the Gemini Edibles case, which treated scrip debits as duty payments. This judicial inconsistency creates uncertainty for businesses, prompting them to reassess their use of duty exemption scrips. The article anticipates further clarity from the Supreme Court while promising additional insights in its upcoming sequel. Read the full article - https://lnkd.in/gWHyNupH #CustomsLaw #SocialWelfareSurcharge #DutyExemptions #JudicialPrecedents #SupremeCourtRulings #TaxationMatters #DutyScrips #IndirectTaxation #TradeCompliance #LegalUpdates #DalmiaCementCase #GeminiEdiblesCase #BusinessUncertainty #PolicyInsights #TaxLitigation

SHIVAM MEHTA, Executive Partner at LKS, shared expert views on the GST Council's recommendation to levy an 18% GST rate on the margin value of used cars, in an industry story published by The Economic Times. Shivam explained that if depreciation has been claimed on the vehicle, GST would be charged on the difference between the sale value and the depreciated value. For vehicles where depreciation has not been claimed, GST would apply to the difference between the sale value and the purchase value. He also clarified that if there is no margin, no GST would be applicable. The understanding is based on the assumption that no cenvat credit/ITC is availed on the vehicles purchased. Read the full story here - https://lnkd.in/giHZfdNb #GSTCouncilmeeting #GST #Taxation #depreciation #GSTonusedcars

Delhi High Court in the case of Indus Towers Limited/ ATC Telecom allowed the Writ Petition challenging the Pan India show-cause notices denying ITC on Passive infrastructure. Company is in the business of providing passive infrastructure services to telecommunication service providers. The show-cause notice sought to deny the input tax credit (ITC’) on inputs and input services used for setting up of passive infrastructure on the ground that same were used in ‘construction’ of telecommunication towers, consequently contravening Section 17(5)(c)/(d) of the CGST Act read with explanation of Section 17 of the CGST Act. The matter was led by V. Lakshmikumaran along with Mr. Yogendra Aldak, Mr. Agrim Arora and Mr. Sumit Khadaria, Advocates from Lakshmikumaran and Sridharan Attorneys. #CaseUpdate #taxation #CGST #Inputtaxcredit #ITC #showcausenotice

Our Executive Partner, Mr. SHIVAM MEHTA, shared his valuable insights on NDTV Profit, shedding light on the key highlights and gaps in the recent GST Council Meeting.   He pointed out several anticipated topics that were notably absent from the agenda, such as relief measures for food delivery platforms, rate rationalization, and the aviation sector’s long-pending request to bring ATF under the GST framework.   However, Mr. Mehta acknowledged the positive development on the significant relief in the compensation rate for merchant exporters.    Looking ahead, he emphasized the importance of addressing critical areas such as insurance reforms, rate rationalisation in a phased and regularised matter, and clarification on tax rates on delivery services in food delivery platforms in future deliberations, describing these as a missed opportunity in the current meeting. Watch this discussion below! #GSTCouncilmeeting #GST #ATF #GSTFramework #insurance #merchantexport

Our Executive Partner, SHIVAM MEHTA, shared insights in an industry story titled, ‘States block move on entry of aviation turbine fuel under GST framework’, published by The Telegraph.   Highlighting that “Many crucial decisions such as rate rationalisation, insurance tax cuts, and the inclusion of ATF under GST have remain unresolved in this council meeting. One will have to await for the forthcoming GST Council to get relief".   Read the full story here - https://lnkd.in/gEvGu3rx   #InsuranceTax #RateRationalisation #ATF #GST

LKS wishes everyone a Merry Christmas! 🎄✨ #festivegreetings #christmas

SHIVAM MEHTA, Executive Partner, shared his perspective on the GST Council's decision to nullify the Supreme Court's judgment in the Safari Retreats case. Shivam stated that the amendment will have a huge impact on the assessees who were benefitted from the said decision. Read the full story here - https://lnkd.in/g554ryKy The New Indian Express #GSTCouncilmeeting #Safariretreats #amendments #judgement