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    It is the policy of Indian Government that export of goods or services should not be burdened with taxes to remain competitive in the global market. Though this policy remained intact even under GST regime, the manner of its implementation is affecting the exporters. In case of exporters undertaking exports by paying GST, the undue delay in sanctioning there fund of such GST, has badly affected their working capital requirements. It is estimated that around 65,000 crores of exporters money were stuck up during July to September period. In case of exporters exporting under Letter of Undertaking without paying any GST, Government has recently introduced manual process to claim refunds as against the promised electronic filing and processing through GST portal. This is more likely to cripplet he prompt sanctioning of refund claims which may cause severe dent in exporters margin and working capital requirements. In this context, this article aims to highlight several issues of exporters that requires immediate action from Government. 


    In the month of September, 2017, the Ministry of Corporate Affairs, had released (03) Three separate lists containing the details of 3,09,614 Directors, associated with the Companies, which had not filed Annual Returns/Financial Statements with the respective ROCs/MCA Portal, for a continuous period of 03 (Three) years i.e., 2013 – 2014, 2014- 2015 & 2015 – 2016, thereby disqualifying them from acting as Directors pursuant to the provisions of Section 164 (2) r/w Section 167 (1) (a) of the Companies Act, 2013. 

    As a result of the disqualification, the DINs of the respective Directors were de-activated, thereby the Directors cannot use their DIN/DSC for filing of any returns with the MCA Portal. 

    With the above happening, the Companies in which such disqualified Directors, were associated, had also come to a stand still, as they cannot file any pending returns with the ROC/MCA Portal. 


    Every taxing statute provides for an event upon the occurrence of which, the respective tax will get attracted. This is popularly called taxable event. For example, excise duty is a levy on manufacture of excisable goods. The liability to pay excise duty under Excise law arises immediately upon manufacture of excisable goods. Similarly, Service tax is a levy on provision of services and VAT is a levy on sale of goods. In case of Goods and Services Tax(GST), it is a tax on supply of goods or services or both. Therefore, GST is a levy on ‘Supply’. Thus, it is important to understand the meaning and scope of the word ‘Supply’ used in GST law. 

    The word ‘Supply’ is defined under section 7 of Central Goods and Services Tax Act, 2017. Accordingly, the meaning and scope of ‘Supply’ includes the following :- 

    • Inclusive part of the definition under section 7(1)(a) of CGST Act, 2017 
    • Import of Services for Consideration whether or not in the course or furtherance of business as provided under section 7(1)(b) of CGST Act, 2017 

    The judgment of apex court in the case of Formula One World Championship Limited vs Commissioner of Income-Tax (International Taxation)-3, Delhi reported in [2017] 80 347 (SC) (FOWC)has far reaching implications not only the income tax, but also under the service tax laws or Good & Services Tax (GST) laws. In this article, we try to explore the judgment of the apex court in the said case from the perspective of GST laws. 

    The concept of ‘Permanent Establishment’ (PE) under the Income Tax laws is maturing day by day as the matters requiring interpretation of tax treaties are reaching the doors of apex court. The said concept of ‘Permanent Establishment’ even appears in the service tax laws or GST laws, the same was not used or tested by the indirect tax authorities, since the said concepts were brought into the statute book only from 01.07.2012, through place of provision of service rules or under GST laws through Section 2 read with Section 12 and Section 13 of Integrated Goods & Services Tax Act, 17 (IGST Act). Since, the concept of PE is attaining maturity under one law, it is only matter of time, when such concept would be used under the indirect tax laws to garner the revenue.

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