TAX POLICY - october 2019

Here is our October issue of the Tax policy newsletter sharing insights of the Forum’s key areas of engagement in the tax policy space. Our areas of engagement now spread across direct and indirect taxes coverings all aspects of international taxation, GST and Custom laws. For any queries, please contact Ms. Shweta Kathuria




37th meeting of GST Council in India concluded on September 20, 2019 announcing a slew of measures. The Forum had a list of requests, many of which have been accepted by the Government:

  1. Clarification that the place of supply of chip design software R&D services provided by Indian companies.
  2. Increase in GST rate of 5% to 12% on goods like railway wagons, coaches, rolling stock.
  3. Integrated refund system with disbursal by single authority to be introduced from 24th September, 2019.
  4. Postponing of new GST return system to April 2020
  5. Clarification regarding supply of ITeS made on own account or as intermediary
  6. Rescinding of Circular which was issued in respect of post-sales discounts


  1. A quick guide on Sabka Vishwas Scheme launched to settle Pre-GST litigation – with inputs from PwC – Sabka Vishwas scheme was launched in August 2019 by the Government of India to provide an option of settling pre-GST litigation for companies. Forum has developed a quick guide on the key insights and process of the scheme with inputs from PwC. Please access the quick guide here.
  2. CBDT notifies guidelines for prosecution procedures and also compounding conditions for offenses: CBDT has issued guidelines for streamlining the prosecution procedure for identifying and examining the cases for initiating prosecution for offenses under Income-Tax Act 1961. The relevant circulars and guidelines are available here.
  3. CBDT clarification on non-availability of MAT credit and set-off of unabsorbed additional depreciation while opting for concessional tax regime under the Indian Tax Law:  The Indian Government announced major tax reforms recently including lower corporate tax rates from 30/25% to 22%. In light of confusion pertaining to whether carried forward losses on account of additional depreciation would be allowed and also on whether MAT credit would be available for set-off the Central Board of Direct Taxes issued a Clarificatory Circular available here .
  4. GST council releases document on how e-invoice operates, basics of standards and FAQs : GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019. In this regard, GSTN has issued a concept paper on e-invoicing as well as a revised schema template.  The documents can be accessed here.


  1. Past engagements
    • A briefing in Income Tax E-assessment scheme Launched by CBDT with the SKP Group.
    • Webinar on MCA Committee Recommendation on Corporate Social Responsibility with DMD Advocates.
  2. Upcoming engagements
    • GST E-invoicing consultations with GST council secreteraite and CBIC officials.
    • Consultations to discuss latest developments around digital economy tax.