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In a bid to lay down the foundation for the coming 25 years, the Hon’ble Finance Minister Smt. Nirmala Sitharaman has indeed announced an ambitious Budget. From proposing highway connectivity projects, to allocating resources for the ‘Nal Se Jal’ Scheme, and boosting infrastructure development in the North East, the Union Budget ’22 has undoubtedly laid down the stepping stone for the future.

Apart from the traditional sectors, the Government has also made strides to meet the objective of ‘Digital India’. The proposal to introduce the Digital Rupee, a currency backed by blockchain technology and setting-up of 75 digital banking units in 75 districts, stand testament to these developments. However, the digital sector takes a hit as the Government has also proposed to bring virtual currencies like cryptocurrency and NFTs under the tax net, despite ambiguity as to its legality.

Notably, on the direct tax front, the FM has urged the Revenue to defer filing of repetitive appeals against an assessee until the substantial question of law is decided by the jurisdictional High Court or the Supreme Court, which would considerably reduce the burden on the Judiciary.

As regards GST, it has been proposed to extend the final date for availment of credit from September to November, and to provide a mechanism to allow transfer of balance between electronic cash ledger of different states. However, certain underwhelming amendments have also been proposed which provides additional restrictions on ITC availment, basis the GST compliances of the suppliers.

On the Customs front, various laws have been proposed to be amended so as to essentially negate the Apex Court’s judgement in RE: Canon India, wherein, it had been held that the DRI is not a proper officer to issue Show Cause Notices.

Compiling all such developments, we are glad to bring you a detailed analysis on the Union Budget ’22 in association with TIOL. We hope that reading of the newsletter would bring an enriching experience to you! Your valuable feedback is always welcome at consult@gstlegal.co.in or updates@gstlegal.co.in. 

Disclaimer:

The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.