Employee services exempt from GST when rendered in course of employment; non-contractual employer benefits may attract tax.
Services supplied by an employee to the employer in the course of or in relation to employment are excluded from GST under Schedule III when an employer-employee relationship exists and services are rendered in the course of employment. Perquisites and facilities provided under the employment contract (including transport, canteen, training, uniforms and memberships) are not taxable, whereas benefits outside contractual terms, transfers of business assets, concessional food recovered via salary, notice pay recoveries and personal use or retention of company assets may attract GST. (AI Summary)

Fake GST registrations crackdown targets fraudulent GSTINs, enabling suspension, ITC blocking and recovery measures.
A nationwide enforcement drive targets fraudulent GST registrations and fake transfer of input tax credit by detecting non existent or fraudulently documented Principal and Additional Places of Business using GSTN data, analytics and intelligence. Coordinated central and state action with zonal nodal officers contemplates suspension or cancellation of GSTINs, blocking of input tax credit, recoveries from recipients and attachment, while taxpayers must remediate Place of Business documentation, maintain accurate invoicing and E Waybill reconciliation, and may assert procedural safeguards during surveys and stock verifications. (AI Summary)

Automated return scrutiny enhances risk based GST verification and structured taxpayer communication through the common portal.
The Automated Return Scrutiny Module enables risk based selection of taxpayers for non intrusive verification of GST returns, presents identified discrepancies to tax officers, and provides a prescribed workflow for taxpayer interaction and subsequent actions via portal forms including communication of discrepancies, receipt of replies, and either acceptance, show cause notices, or audit initiation. (AI Summary)

Sale of study material: not a taxable service under the Finance Act, preventing service tax on such sales.
The amount charged for study materials by a coaching institute constitutes a sale of goods and is not a taxable service under the Finance Act, 1994; the value of such sales was separately identifiable in audited accounts and supported by documents showing sales to third parties, and prior tribunal decisions and Notification No. 12/2003-ST exclusion were relied upon to exclude those receipts from the taxable consideration for coaching services. (AI Summary)

Limitation under IBC: delay beyond the maximum condonable period bars appeals and leads to dismissal under the code.
The Supreme Court dismissed an appeal under the Insolvency and Bankruptcy Code for being filed after the maximum statutorily condonable period, applying the code's appeal timeframe together with the Limitation Act and holding that delay beyond the permitted extension cannot be condoned and warrants dismissal. (AI Summary)

Limit on directorship: amendment reclassified certain contraventions from criminal offences to adjudicatory penalties, altering enforcement.
Restriction on the number of directorships caps service in companies, excludes dormant companies, and counts private holding or subsidiary companies; Section 165 historically criminalised accepting an appointment in contravention with fines, but amendments reclassified certain contraventions as penalties to be determined by an adjudicating authority, shifting enforcement from criminal prosecution to administrative adjudication and raising questions about application of beneficial amendments to pending matters. (AI Summary)

GST margin scheme in second-hand gold: melting jewellery into lumps disqualifies margin-based valuation and changes HSN classification.
Melting second hand gold jewellery into lumps changes the nature of the goods, so the trader cannot use the margin valuation under Rule 32(5) of the CGST Rules. Because the processing alters classification, supplies of melted gold do not qualify as minor processing that preserves the goods' nature and are ineligible for determining taxable value as the difference between sale and purchase price. (AI Summary)

Foreign direct investment rules shape subsidiary formation and impose shareholding, registration and compliance obligations in India.
Establishing an Indian subsidiary requires selecting an appropriate legal structure and following the SPICe+ incorporation process (Parts A and B) to secure name reservation, incorporate the company, obtain DIN, PAN, TAN, statutory registrations and open a bank account; compliance with FEMA/RBI FDI rules, Companies Act obligations, minimum capital norms, Indian tax and transfer pricing rules, IP registration and employment law requirements is essential for lawful operation. (AI Summary)

Counting of limitation period clarified: calendar months govern four month appeal deadlines; condonation must be considered on merits.
The High Court held that the statutory four month appeal period is to be computed by calendar months and may therefore amount to 121 or 122 days; the Appellate Authority wrongly treated four months as a strict 120 day limit and summarily dismissed an appeal filed on the 121st day instead of considering condonation of delay. The appeal was restored and the Appellate Authority directed to decide the condonation and the appeal on merits. (AI Summary)

Renting accommodation outside religious precincts is taxable under GST and may trigger registration when turnover exceeds the statutory threshold.
The AAR held that the exemption for renting of precincts of a religious place under Notification No. 12/2017 applies only to precincts owned or managed by a qualifying charitable or religious trust; accommodation provided outside the temple boundary and owned by the applicant is not covered, is taxable at the applicable GST rate, and requires registration if aggregate turnover exceeds the statutory threshold. (AI Summary)

Liberalized Remittance Scheme: international card transactions now fall under LRS and attract tax-collection obligations.
The 16.05.2023 amendment removes the exception for international credit card use and includes such transactions within the Liberalized Remittance Scheme, requiring resident individuals to comply with LRS limits and authorised-dealer procedures. Correspondingly, remittances under LRS attract Tax Collection at Source (TCS) under section 206C(1G) as amended; authorised dealers and specified sellers must collect TCS at the point of debit or receipt, subject to prescribed thresholds and exemptions clarified by the Ministry. Employer-paid business travel expenses remain outside the LRS framework. (AI Summary)

Penalty notice distinct from assessment: officer must state specific grounds and evidence before imposing tax penalties.
A penalty proceeding under Section 271(1)(c) is distinct from assessment proceedings and requires the assessing officer to record specific satisfaction and specify the precise charge (concealment or furnishing inaccurate particulars) in a statutory notice; omnibus or vague notices failing to identify the factual basis and evidence are impermissibly vague and must be construed strictly in the assessee's favour. (AI Summary)

Statutory levy: user development fee treated as not subject to service tax under airport levy framework.
The user development fee authorised under the Airports Authority statute and collected to bridge project funding gaps was characterised as a statutory exaction distinct from fees or tariffs; because it is a statutory levy and did not confer additional direct benefits on users, it is outside the scope of service tax. (AI Summary)

Company registration in India requires adherence to Foreign Direct Investment rules and SPICe+ compliance for subsidiary formation.
Formation of an Indian subsidiary from France requires selecting a permissible entity (Private/Public Company or LLP where allowed), preparing the Memorandum and Articles of Association, assembling notarized identity, address and incorporation documents for foreign directors and the parent company, securing an Indian registered office with utility bill or landlord authorization, and filing the SPICe+ electronic form (Part A for name reservation; Part B for incorporation and mandatory registrations including DIN, PAN, TAN, EPFO, ESIC, profession tax where applicable, bank account opening and GSTIN allocation). (AI Summary)

Mens rea requirement for tax evasion bars extended limitation where taxable value was disclosed in returns.
The law requires mens rea for invocation of the extended period for assessment or demand where evasion is alleged; regular ST-3 filings that disclosed gross value and declared taxable value, without evidence of deliberate concealment, do not constitute suppression justifying extended limitation or penalty claims based on evasion. (AI Summary)

Input Tax Credit entitlement restored after amnesty allows claiming credits for the cancellation period, but timing for availing remains unclear.
Revocation under the GST Amnesty Scheme 2023 allows a taxpayer whose registration was cancelled for non filing of returns to claim unutilized Input Tax Credit for the period from cancellation until restoration; the competent authority's acceptance of an amnesty application and restoration of registration enables the taxpayer to lodge ITC claims, although the judgment does not specify a deadline for availing those credits after restoration, leaving procedural time limit uncertainty. (AI Summary)

GST credit note is conditional and subject to statutory time and eligibility conditions under CGST law.
GST credit notes are discretionary under CGST: issuable where invoice value or tax is excessive, goods are returned, or supplies are deficient; Section 34(2) requires declaration in returns by the statutory deadline after which only non tax financial adjustments may be made. Section 15(3)(b) conditions post supply discount credit notes on a pre existing agreement linked to the original invoice and reversal of attributable input tax credit by the recipient. (AI Summary)

Offsetting export proceeds now requires specific RBI permission and detailed documentation, changing set off liberalisation framework.
The document sets out the regulatory conditions for AD banks to allow set-off of export receivables against import payables under RBI circulars (2011 and 2020), including requirements on documentation, KYC/AML/CFT checks, same year matching of legs, separate gross reporting, and enforceable agreements for group settlements. The 2023 Foreign Trade Policy Procedure adds a key change: specific RBI permission is now required, Appendix 2L replaces bank realization reports, and CA/Cost Accountant certification plus supporting documents must accompany any offsetting request. (AI Summary)

Liquidated damages not taxable as service; recovery is not consideration for tolerating a default, limiting service levy.
Recovery of liquidated damages from vendors for contractual delay is not consideration for a service and therefore not taxable as service tax; such payments are compensatory or penal in nature, intended to deter default, and do not amount to payment for tolerating an act. The tribunal allowed the appeal and GST guidance later clarified that GST is not leviable on such liquidated damages, compensation or penalties unless there is an underlying taxable supply with reciprocal consideration. (AI Summary)

Reporting entity designation expands to include chartered accountants, company secretaries and cost accountants, imposing KYC, recordkeeping and due diligence obligations.
The 3 May 2023 notification designates specified financial transactions carried out by practising chartered accountants, company secretaries and cost and management accountants as activities under section 2(1)(sa)(vi), thereby bringing those professionals within the definition of reporting entity under the PMLA. As reporting entities they must verify client and beneficial owner identity (section 11A), maintain transactional and identity records (section 12) with statutory retention, apply enhanced due diligence for specified transactions (section 12AA), and furnish records to the Director on request (section 12A); non compliance attracts inquiry, audit and monetary penalties under sections 13 and 50. (AI Summary)