Page 15 - Plastics News July 2020

The Impact on GST, Income Tax & Customs Due to COVID-19
With the onslaught of the COVID – 19 pandemic, trade
and industry has taken a major hit, resulting in overall
slowdown of the economy. The Government has
announced various measures for providing relief under
various laws, and GST, Income Tax & Customs are no
exception. However, it appears that certain measures of
the Government may have an adverse impact on trade
and industry. Also, certain recent decisions/rulings of
the Courts/AARs/AAARs having an impact on the
industry have left a vacuum for interpretation and
understanding."
The following points were discussed in detail by the
panellists:
A. Recent issues due to COVID-19
GST
Ÿ Timelines for contractual obligations
Ÿ Renegotiations of ongoing contracts
Ÿ Price revision/discounts
Ÿ ITC on COVID related additional expenses
Income tax
Ÿ Extension of deadlines for various compliances
and filings
Ÿ Reduced rate of interest for delayed payment of
taxes
Ÿ Reduced TDS rates
B. Recent developments in GST, Income tax and
Customs law
GST
Ÿ Amendment in refund provisions
Ÿ ITC related developments
July 2020 15
Income tax
Ÿ Vivad se Vishwas Scheme (VSV) – Dispute
settlement scheme
Ÿ Recent changes in TDS/ TCS provisions
Ÿ Concessional tax rate for new manufacturing
companies – Section 115bab
Ÿ Concessional tax rate for all existing companies
– Section 115baa
Ÿ Section 80jjaa – Additional deduction towards
salary paid to new employees
C. Recent Advance rulings and High Court
decisions
Ÿ Specific cases on GST rate & classification
w Auto parts [Ch.87 vs. 39]
w PP bags [Ch.63 vs. 39]
Ÿ Place of supply for sale of moulds without
movement to buyer
Ÿ Anti-profiteering: Rate reduced from 28 to 18%
in Nov. 2017
Ÿ GST on ocean freight on CIF imports
Ÿ Misc: E-way Bill issues
D. Customs issues
Ÿ Classification issues – Chapter 39 versus
Chapters 85 and 87
Ÿ Inverted duty structure coupled with misuse of
FTAs
Ÿ Protection to domestic industry
w Bound rates under the wto versus applied
rates by india
w Trade remedies to address unfair trade
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