Restoration of GST Registration upon Post-Cancellation Compliance Facts The Default: The assessee, a sole proprietor, failed to file GST returns for a continuous period of six months. The Action: The Department issued a Show Cause Notice (SCN) proposing the cancellation of registration due to non-filing. The Cancellation: Since no reply was furnished by the assessee,… Read More »
Computation of Exempt Income (a) Infrastructure Development Entities: Entire income is exempt. However, Circular No. 9, dated 09-05-2022, clarified that for hybrid infrastructure entities (with multiple business lines), exemption is available proportionately if ≥ 50% of the total profit before tax (PBT) arises from eligible infrastructure activity. Exempt income will be calculated proportionately to the hybrid… Read More »
GST Reimbursement Denied for Pre-GST Contracts with All-Inclusive Tax Clauses Facts The Contract: The Water Resources Department awarded works contracts based on bids submitted before the implementation of GST (pre-July 1, 2017). The Tax Clause: Clause 2.17.1 of the agreement explicitly stated that the contractor would bear all tax liabilities and barred any subsequent claims… Read More »
Withdrawal of Exemption If the conditions of eligibility or investment are violated in any year, the exemption claimed in previous years shall be withdrawn and deemed as income in the year of violation.
Minimum Holding Period The investment must be held for at least 3 years to avail of the exemption.
Qualifying Income for Exemption The following income is exempt: (a) Dividends (b) Interest (c) Long-term capital gains (even if deemed as short-term under Section 50AA) (d) Any income received from InVITs in respect of units held
Mode of Investment Investments must be in the form of: (a) Debt (b) Share capital (c) Units
Timeframe for Investment Investments must be made between 01-04-2020 and 31-03-2030.
Eligible Infrastructure Entities Exemption is available on investments made in: (a) Infrastructure Investment Trusts (InVITs) (b) Enterprises engaged in developing, operating or maintaining infrastructure as defined in Section 80-IA(4)(i) or as notified by CBDT (‘Infrastructure Development Entities’) (c) Domestic companies (registered on or after 01-04-2021) with ≥75% downstream investment in infrastructure development entities (d) Infrastructure finance companies… Read More »
Eligible Persons The exemption is available to the following foreign entities: (a) Sovereign Wealth Funds (SWFs) (Investment funds owned and controlled by the Government of a foreign country) (b) Wholly owned subsidiaries of the Abu Dhabi Investment Authority (ADIA) (c) Pension Funds created or established under the laws of a foreign country (d) Public Investment… Read More »