The Lok Sabha on March 24 passed Finance Bill, 2023 with 64 amendments, including one that seeks to set up the much-awaited GST Appellate Tribunal (GSTAT).
About GSTAT
- GSTAT will deal with tax disputes, and also lessen the burden on the higher judiciary, which has repeatedly sought the institution of such a body.
- GSTAT will have a “Principal Bench” in New Delhi, with the President, a judicial member, a technical member (centre) and a technical member (state).
- It will also have state benches .
- The amended Finance Bill, 2023 proposed substitution of section 109 of the Central GST Act in order to facilitate creation of the GSTAT and its benches.
- The Goods and Services Tax (GST) Appellate Tribunal is likely to be headed by a former Supreme Court judge or a former Chief Justice of a High Court and its framework may permit the resolution of disputes involving dues or fines of less than Rs. 50 lakh by a single-member bench.
- The constitution of GSTAT has been pending since the new indirect tax regime was launched in July 1, 2017.
- The law bringing GST into effect in July 1, 2017 has provisions to set up an appellate tribunal for disputes between assessees and the authorities – in its absence, the disputes ended up in the high courts, which was time consuming and expensive.
Debts funds amendment
- As per the amendment, debt funds having not more than 35 per cent invested in equity shares would be taxed at the income tax slab level and treated as short term capital gain.
- Subsequently, gains arising from debt mutual funds will be added to investors taxable income and will be taxed at income tax slab rate.
- Currently, any capital gain on redemption of a debt fund held for three years or longer is treated as long-term capital gain and is taxed at a flat 20 percent with indexation benefit. Any capital gain on redemption before three years is treated as short-term capital gain and is taxed at an individual’s income tax slab rate.
Credit card expenditure on foreign tours
- The finance ministry has asked the Reserve Bank of India (RBI) to look into the aspect of bringing credit card payments done during foreign tours under the central bank’s liberalised remittance scheme (LRS) so that such expenses do not escape the tax collection at source (TCS).
