Input Tax Credit reversal requires proof of recipient fraud, not merely upstream vendor defaults or later registration cancellation.
ITC reversal based on upstream supplier fraud requires material establishing the recipient taxpayer's own intentional fraud, wilful misstatement, or suppression. Vendor default, later registration cancellation, and unverified intelligence reports alone do not establish fraudulent intent. A recipient may rely on evidence of actual supply, including e-way bills, transport and delivery records, invoices, bank payments, GSTR-2B reflection, and proof of valid supplier registration at the time of purchase. Disclosure of third-party material relied upon is necessary to permit rebuttal. (AI Summary)

GST rate rationalization introduces revised levies and targeted procedural reforms affecting refunds, exemptions, and compliance measures.
The Council recommended GST rate rationalization effective from 18th July, 2022, altering rates for specified goods and services, restricting refunds of accumulated ITC on certain flowing goods, and withdrawing or narrowing multiple exemptions. It directed procedural reforms including revised refund formulas for inverted duty structure, transmission and processing of suspended IGST refund claims, re-credit of erroneously sanctioned refunds, conditional relaxation of e-commerce supplier registration, options for GTA tax regimes, extensions and waivers for specified filings, and issuance of clarificatory circulars to reduce litigation. (AI Summary)

GST rate concessions and targeted exemptions extended while procedural changes tighten ITC availment and compliance measures.
The Council recommended GST rate concessions and targeted IGST exemptions for specified COVID 19 drugs and life saving medicines for personal import, reductions and reclassifications of GST rates on listed goods (including retrofitment kits, fortified rice kernels and a cancer medicine), corrections to inverted duty structures across sectors with implementation dates, service exemptions and reclassifications (including e commerce liabilities), and procedural amendments to filing periodicity, interest on ineligible ITC utilized, transfer of cash ledger balances between distinct persons, and tighter ITC availment linked to supplier returns. (AI Summary)

New tax regime option reduces rates but disallows most exemptions and chapter VIA deductions, affecting taxpayer choices.
The new tax regime under section 115BAC permits individuals and HUFs to elect lower slab rates in exchange for foregoing most exemptions and chapter VIA deductions, including HRA, LTC, standard deduction, 80C investments, housing loan interest and various business and sector specific allowances; limited allowances remain and salaried and non salaried taxpayers follow distinct elective procedures. (AI Summary)

E-way bill requirement: movement of goods mandates electronic generation before transport, with specified exemptions and generation rules.
E-Way Bill is an electronic document required before transport of goods when consignments exceed the prescribed threshold; it is generated on the common portal (or via SMS, app, API), issues a unique EBN and is available to supplier, recipient and transporter. Mandatory generation rules, parties authorised to generate, required invoice and transporter details, distance-based validity rules (including a special regime for over-dimensional cargo), and specified exemptions and categories of goods that require bills irrespective of value (such as principal-to-job-worker movements and handicraft consignments from exempt suppliers) are described. (AI Summary)