India Regulatory Brief: Clarifications under the Bankruptcy Code, Business Class Travelers to Show GSTIN
NCLAT issues clarifications under Insolvency and Bankruptcy Code, 2016
The National Company Law Appellate Tribunal (NCLAT) recently clarified what constitutes the ‘’existence of a dispute” under the Insolvency & Bankruptcy Code, 2016.
As per the Apellate Tribunal, the term ‘dispute’ includes proceedings initiated or pending before consumer courts, tribunals, labor courts, or subject to mediation or conciliation.
Further, the ambit of ‘dispute’ will also include any action undertaken by a person identified as a corporate debtor, such as replying to a legal notice or to a clarification sought regarding the quality of goods and services provided by the operational creditor.
Other clarifications concern the grounds for rejection or satisfaction of an insolvency application by an operational creditor, that is, to whom the debt is owed.
Business class travelers to submit GSTIN to avail tax benefits
It is mandatory for those traveling on business class air tickets for business purposes to submit their company’s Goods and Services Tax Identification Number (GSTIN) – if they wish to avail tax benefits under the GST regime, which came into force on July 1.
The new indirect tax regime provides for input tax credit only in the case of business class tickets – the provision is not applicable to economy class fares. The GST rate on first class and higher class air tickets is 12 percent, which can be claimed back.
The three domestic airlines that offer business class seats – Air India, Jet Airways, and Vistara – have already notified their business class customers that they will need to provide their company information at the time of booking.
GST launched, inter-state logistics to become easier
As the GST came into force on July 1, states across India have gradually begun dismantling their border check-posts. Under the new system, the tax liability will be calculated centrally and through the GST portal, meaning that stopping at physical barriers to pay taxes will no longer be necessary. This will smoothen the movement of logistics in the country, reducing travel time and costs, not to mention the traffic on inter-state highways.
States are currently waiting on the government’s clarification on the Electronic Way Bills (for movement of goods), which will make truck movement easier across the country.
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