Aanchal Kesari

Under the erstwhile indirect tax regime in India, there were several area-based exemption schemes aimed at promoting industrial growth and economic development in specific geographically disadvantaged or special category states in India. The exemption was typically for a period of 10 years from the date of commencement of commercial production of finished products. This support was crucial for making these industries competitive and fostering employment in these regions.

Section 49 of the CGST Act states that any amount deposited into the ECL, shall be credited in the ledger, which may be used for making payment towards tax, interest, penalty, fees or any other amount. In order to deposit cash in the ECL, a challan must be generated in Form GST PMT-06 [Rule 87 of CGST Rules, 2017]. A literal interpretation of the provision implies that the deposit of cash in the ECL does not amount to discharge of any liability till the ECL is debited by filing GSTR-3B.

In today’s fast-paced world, it has become a common practice for businesses to lease aircrafts for travel of their personnel. Such aircrafts may be leased with or without operator. A dry lease is a leasing arrangement where an aircraft is leased without any crew and ground staff, wherein the lessee has operational control over the aircraft. Whereas a wet lease is an arrangement where the aircraft is leased along with the crew and the ground staff.