UTGST: CBIC ANNOUNCES MODIFICATIONS TO THE GST RATE FOR SERVICES, EFFECTIVE JUNE 2, 2021
In exercising the powers conferred by sections 21 and 148 of the Union Territory Goods and Services Tax Act, 2017 read with section 148 of the Central Goods and Services Tax Act, 2017, the Central Government, on the Council’s recommendations and then satisfied that it is necessary for the public interest, hereby amends the Government of India’s notification in the Ministry of Finance (Department of Revenue) No.06/2019- Union Territory Tax (Rate), dated March 29, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section I vide number G.S.R. 265(E), dated March 29, 2019, namely:
In the first paragraph of the aforementioned notification,-
(a) for the words “in whose case the liability to,” the words “, who shall” shall be substituted;
(b) for the words “shall arise on the date of issuance of the project’s completion certificate, where required, by the competent authority or on its first occupation, whichever is earlier.” The words “in a tax period not later than the tax period in which the date of the competent authority’s issuing of the project’s completion certificate, when needed, or the date of its initial occupation, whichever is earlier” must be substituted.
This notification will take effect on the 2nd of June, 2021.
BITCOIN AND CRYPTO TRADING HAVE BEEN CLARIFIED BY THE RBI
The Reserve Bank of India clarified Bitcoin and cryptocurrency trading by warning banks that they cannot advise consumers against trading based on an old order. The explanation is particularly favorable for the crypto sector, which has been beset by complexities in India. The RBI’s remark came in reaction to bank cautions to its clients, advising them not to invest in cryptocurrencies and referencing an old central bank rule.
Among the banks that issued these warnings were the State Bank of India and HDFC Bank. The RBI claimed that its ruling had been quashed by the Supreme Court and that banks could no longer depend on it. It’s a major statement of confidence for crypto from the RBI, which comes despite allegations that India is considering a restriction on cryptocurrency trade.
Essentials of RBI statement:
- A softer attitude on cryptocurrency
Earlier this year, there were rumors that the Indian government was considering banning cryptocurrencies. In this regard, a measure has been submitted ahead of the Union Budget 2021. Following requests from the crypto sector, it was placed on hold. Then came reports that the RBI was considering creating its own digital currency.
- Deposits and withdrawals may become simpler in the future.
The absence of cooperation from banks or financial systems has been one of the issues for Indian trading platforms. Several trading platforms have previously claimed that banks frequently terminate their partnerships with them, preventing these platforms from processing transactions properly. The RBI’s ruling sends a clear message to banks that they must work with these trading platforms. Because of these challenges, investors have been unable to benefit or execute orders.
- A strong vote of confidence
This is the first time in months that the RBI has spoken out and taken action to promote cryptocurrency trade. It should help revive public interest and restore investor confidence, which had been affected by the crypto crisis last month.
- India must take precautions
The Reserve Bank of India has directed banks to do the essential customer due diligence. It has been proposed that both banks and crypto platforms should ensure that these transactions are not utilized for fraudulent or tax avoidance purposes. Crypto investors have been offered mercy by the central bank.
- This is the beginning, not the end
Investors should be aware that this is not the only time the RBI has spoken about bitcoin. Over the last six months, Bitcoin, Dogecoin, and other cryptocurrencies have grown in popularity in India. The RBI and the government have no choice but to enact laws to ensure investor safety.