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Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1
Dear Taxpayers,
1. GSTN is pleased to inform that a new feature to auto-populates the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data.
2. Please note that the HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Please ensure that you reconcile the data with your records before its final submission.
3. Any discrepancies or errors should be manually corrected or added in Table 12 before final submission.
...The GSTN added two new tables in GSTR-1 starting from January 2024 onwards.
Table 14 – Supplies Made Through E-Commerce Operators (In this table, you can add details of taxable outward supplies made through e-commerce operator.)
Table 15 – Supplies under Section 9(5) of the CGST Act (In this table, you can add details of taxable outward supplies on which the e-commerce operator is liable to pay tax under Section 9(5) of the CGST Act.)
BSE circular to provide revised eligibility criteria for Migration of SME Companies to BSE Main Board w.e.f 1st Jan 2024
a. Listed for at least 3 years on SME platforms, paid up capital more than 10 Cr and market capitalization minimum 25Cr
b. Promoter holding minimum 20% of equity share capital
c. Positive operating profits at least any 2 years along with net worth of 15 Cr in 2 preceding financial year
d. Track record of the company e. no material regulatory action, debarment, disqualification
e. Minimum 250 public shareholders
f. Other parameters like no. of shareholder’s, no proceeding under IBC, no pending investor complaint utilization of funds
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20231124-55
...The GSTN issued Advisory No. 612 dated November 10, 2023, for the procedures and provisions related to the amnesty for taxpayers who missed the appeal filing deadline for the orders passed on or before March 31, 2023.
Amnesty for Taxpayers: The GST Council, in its 52nd meeting, recommended granting amnesty to taxpayers who couldn’t file an appeal under section 107 of the CGST (Central Goods and Services Tax) Act, 2017, against the demand order under section 73 or 74 of the CGST Act, 2017, passed on or before March 31, 2023, or whose appeal against the said order was rejected due to not being filed within the specified time frame in sub-section (1) of section 107.
In compliance with the above GST Council’s recommendation, the government has issued Notification No. 53/2023 on November 2, 2023.
Taxpayers can now file appeal in FORM GST APL-01 on the GST portal on or before January 31, 2024 for the order passed by proper officer on or before March 31, 2023. It is further advised that the taxpayers should make payments for entertaining the appeal by the Appellate officer as per the provisions of Notification No. 53/2023. The GST Portal allows taxpayers to choose the mode of payment (electronic Credit/Cash ledger), and it’s the responsibility of the taxpayer to select the appropriate ledgers and make the correct payments. Further, the office of the Appellate Authority shall check the correctness of the payment before entertaining the appeal and any appeal filed without proper payment may be dealt with as per the legal provisions.
If a taxpayer has already filed an appeal and wants it to be covered by the benefit of the amnesty scheme would need to make differential payments to comply with Notification No. 53/2023. The payment should be made against the demand order using the ‘Payment towards demand’ facility available on the GST portal. The navigation step for making this payment is provided: Login >> Services >> Ledgers >> Payment towards Demand.
Taxpayers who have any queries or require assistance can raise a complaint on the official website at https://selfservice.gstsystem.in.
The Advisory can be accessed at: https://www.gst.gov.in/newsandupdates/read/612
...Responding to a bunch of writ petitions, for the financial years 2015-16 and 2016-17, the Delhi high court has recently held that the extended period of ten years, for re-opening of Income tax (I-T) assessments should be applicable only in cases involving serious tax evasion where evidence of concealing income is above Rs. 50 lakh. This judgement is expected to help thousands of taxpayers.
The Delhi high court had to decide the validity of the notices issued to the petitioners under section 148, keeping in view the period of limitation (period within which notices for re-opening of cases can be issued).
The petitioners submitted that in cases where the alleged escaped income is below Rs. 50 lakh, the period of limitation of three years as stipulated in clause (a) of section 149(1) should apply. The extended limitation period of ten years would apply only if the escaped income was more than Rs 50 lakh.
On the other hand, the I-T authorities contended that the notices were valid, given the Supreme Court’s judgement in the case of Ashish Agarwal (issued in May, 2022) and a circular that was subsequently issued by the Central Board of Direct Taxes (CBDT).
The I-T authorities relied on the provisions of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and propounded the ‘travel back in time’ theory to justify that those notices issued at a later stage, were deemed to have been issued back in time.
The Delhi high court observed that according to both the Finance Minister’s speech and the Memorandum explaining the provisions of the Finance Bill, 2021, the time limit for re-opening assessments was reduced from six to three years to facilitate ease of doing business. Only in cases, where the escaped income was Rs. 50 lakh or more, the I-T authorities were given the leeway to enquire into cases up to ten years. Thus, the new regime would apply even to past years, provided notices under section 148 were issued on or after April 1, 2021.
One of the advocate practising at the SC explains, “The Delhi high court has held that the ‘travel back in time’ theory contained in CBDT’s instruction is bad in law. This is a welcome decision, which will help taxpayers who are facing belated reassessment proceedings involving escaped income of less than Rs. 50 lakhs. As this order operates in rem, it will be beneficial even to those taxpayers who did not file a writ petition.”
...Circular No 19/2023 dated 23/10/2023 (Applicable to the corporate assessee in respect of AY 21/22 who have been denied the benefit of concessional rate of tax due to Non filing of Form 10C)
Through the above beneficial circular issued on 23.10.2023, CBDT has ushered genuine relief to those companies which have opted lower rate of tax of 22% u/s 115BAA while filing tax return for AY 2021-22 but the benefit of this lower rate was denied as form no 10-IC was missed out/not filed with the return of income resulting levy of tax at higher rate of 30% as well as Minimum alternate Tax (MAT).
Vide this circular CBDT using its power under section 119 has now provided for the condonation of delay in filing Form 10-IC to avoid genuine hardship caused to Assessees seeking Section 115BAA concession only for AY 21/22 only subject to following three conditions:
• ITR is filed on or before the Section 139(1) due date by such assessee,
• Assessees opted for item (e) of 'Filing Status' in 'Part A - Gen' of ITR-6, and
• Form 10-IC is e-filed on or before January 31, 2024.
In nutshell, the above circular will provide big relief for all such companies which despite having opted for lower rate of tax in the ITR were being subjected to a higher rate of tax due to a procedural issue of not filing the Form 10-IC.
Such companies now need to ensure to e-file the form 10-IC for AY 2021-22 before 31st January,2024 in order to have benefit of lower rate of tax of 22% by verifying the same through DSC of Authorised Signatory of the Company as per Section 140 of the Income Tax Act, 1961.
In effect, such beneficial circular would mitigate the litigation arising on account of non-grant of concessional rate due to inadvertent procedural lapses. Thus, such circular would act as win -win situation for the eligible assessees as well as appropriate authorities by saving time, cost and energy arising due to unfruitful litigation viz. appeals and/or writ petitions.
Readers, should note that such circular is applicable only to the Assessment Year 2021/22 subject to satisfying all the conditions specified under this circular.
...MCA notifies mandatory dematerialisation for securities of private companies
1. Sub-section (1A) was inserted under Section 29 of the Companies Act 2013 facilitating the Central Government to prescribe such class or classes of unlisted companies for which the securities shall be held and/ or transferred in dematerialised form only.
2. In exercise of the powers conferred under the said section, Rule 9B has been inserted vide the Companies (Prospectus and Allotment of securities) Second Amendment Rules, 2023 specifying the requirement of mandatory dematerialisation of securities issued by private companies.
3. The mandatory dematerialisation requirement is applicable on all securities of every private company, excluding small companies and government companies. The provisions are applicable with immediate effect, and a timeline upto 30th September, 2024 (18 months from 31st Mar 2023) is provided for the compliance with the mandatory dematerialisation requirements.
4. In case a company ceases to be a small company after 31st March, 2023, the timeline of 18 months triggers from the close of the financial year in which it ceases to be a small company.
5. Private companies shall Issue all securities in dematerialised form only and facilitate dematerialisation of all existing securities.
6. Private companies should make an application with depository for dematerialisation of all existing securities and securing ISIN for each type of security.
7. A small company means a company, other than a public company, having
(A)paid up share capital not exceeding Rs. 4 crores and
(B)turnover not exceeding Rs. 40 crores.
Further, the following cannot be a small company –
(A) A holding company or a subsidiary company.
(B) A company registered under section 8.
(C) A company or body corporate governed by any special Act.
MCA / ROC MAJOR AMENDMENTS FOR COMPANIES AND LLP
1. With effect from 21st October 2023, Regional Director shall not levy any cost in case of shifting of registered office from one state to another state and this is a big relief and step taken towards ease of doing business by MCA.
2. Every company shall designate a person who shall be responsible for furnishing, and extending co-operation for providing, information to the Registrar or any other authorised officer with respect to beneficial interest in shares of the company which may be CS in employment or KMP or Director
3. Detail of such designated person shall be informed in Annual return by every Company.
4. If the company changes the designated person at any time, it shall intimate the same to the Registrar in e-form GNL-2.
5. Shares of all Private Limited (except Small Companies) to get dematerialised on or before 30.09.2024 and without which Companies shall not be able to allot any shares and any holder shall not be able to transfer his holding. Small Companies means Turnover less than 40 Crores and also paid up Capital less than 4 Crores as on 31.03.2023.
6. Every LLP from the date of its incorporation, maintain a register of its partners in Form 4A.
7. SBO Declaration rules (Significant Beneficial Ownership) shall apply to LLP also now onwards so all LLP need to check their details of partners and submit returns to ROC in form 4B, 4C and 4D.
The GSTN has issued Advisory dated April 28, 2023 regarding the new facility to verify document Reference Number (“RFN”) mentioned on offline communications issued by State GST authorities.
The GST portal (“System”) generates various documents, such as notices/ orders, etc which are communicated to the taxpayer. Most such documents have a system-generated unique identifier DIN (Document Identification Number)/ RFN (Reference Number). These documents, by virtue of being generated by the System, are already traceable in the portal, mostly on the taxpayer’s dashboard. Still, a facility for taxpayers to verify such documents through such auto-generated RFN is under development and will be provided shortly.
In addition, in order to enable the taxpayers to ascertain that an offline communication (i.e. one which is not system-generated) was indeed sent by the State GST tax officer or not, a new facility for Reference Number (RFN) generation by State tax officer and verification by taxpayer has been provided. Under this feature, the State Tax office can generate a RFN for the physically generated correspondence sent to the taxpayer, which can be validated by the taxpayer (both pre-login and post-login). The facility to verify RFN of System-generated documents, once deployed, shall also be available in a seamless manner using the same link.
To verify a Reference Number mentioned on the offline communications sent by State GST officers that are being sent to you, navigate to Services > User Services > Verify RFN option and provide the RFN to be verified.
In case the RFN is of an offline communication generated by the State GST officer, the details with the valid RFN will be displayed. The limited details will be provided pre-login also for verification, while greater details will be provided when the taxpayer logs in and verifies RFN mentioned on an offline communication issued to him/ her.
This facility is for offline correspondence issued by State GST authorities. For documents issued by Central GST officers, the CBIC DIN facility may be used.
The Advisory can be accessed at: https://www.gst.gov.in/newsandupdates/read/580
...The Supreme Court has held that the income tax (I-T) department cannot reopen completed assessments under the Section 153A of the I-T Act, unless “incriminating material” is unearthed during search and seizure operations. Any other material emanating from the search can’t be relied on for issuing re-assessment orders.
The ruling, tax experts said, could give much relief to taxpayers, as it reduces the scope for arbitrary re-assessments by the taxman. A battery of current litigation is due to reassessment orders not supported by incriminating material under Section 153A, which was withdrawn in 2021, but remains applicable to past cases.
However, the court said that completed or “unabated” assessment can be reopened under Section 147 and 148 of the I-T Act, if “any other material proof” recovered by the assessing officer (AO) indicate certain income has escaped assessment. Essentially, these two Sections allow the AO to reassess returns in case any income stream other than disclosed by the taxpayer is detected by her and she holds proof of that.
Section 153A outlines the system for assessing income in the case of a “searched person”, as per which the AO could reopen assessment of the tax return filed by such person for six assessment years immediately proceeding the year of search, provided incriminating material is discovered during the search procedure. Though this is the legal position, in an increasing number of instances, reassessment orders have been issued with addition to income, without any unearthing of incriminating material, and relying on other material emanating from search. The SC order virtually bars the tax authorities from adopting such practice.
“…in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments or unabated assessments. Meaning thereby, in respect of completed or unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act, 1961,” said the ruling by Supreme Court judges MR Shah and Sudhanshu Dhulia.
The ruling came in respect to a number of appeals filed by the revenue department, which were dismissed by the apex court.
Source from: https://www.financialexpress.com/money/income-tax/sc-ruling-on-i-t-searches-big-relief-to-taxpayers/3062770/
...Now GST payment can be made through 23 banks.
1. Axis Bank
2. Bank of Baroda
3. Bank of India
4. Bank of Maharashtra
5. Canara Bank
6. Central bank of india
7. Federal Bank
8. HDFC Bank
9. ICICI Bank Limited
10. IDBI Bank
11. Indian Bank
12. Indian Overseas Bank
13. Jammu and Kashmir Bank Limited
14. Karur Vysya Bank
15. Kotak Mahindra Bank
16. Punjab and Sind bank
17. Punjab National Bank
18. State Bank of India
19. UCO Bank
20. Union Bank of India
21. City Union Bank
22. South Indian Bank Limited
23. Induslnd Bank Limited
...Rajasthan's Authority for Advance Ruling (UPAAR) on Thursday said that Goods and Services Tax (GST) is not applicable on the transfer of going concerned by the Airport Authority of India (AAI) to Adani Jaipur International Airport Ltd.
However, AAR ruled that reimbursement of salary or staff cost is chargeable to GST at 18 percent. Also, AAR clarified that reimbursement of municipal tax, property tax, and water charges is exempt.
The Airport Authority of India had invited bids for undertaking operations, management, and development of certain airports of the AAI on a public-private partnership basis and this was awarded to Adani Jaipur International Airport Ltd.
The case was filed by the Airports Authority of India and the order was passed by Umesh Kumar Garg (Member- Central Tax) and Mahesh Kumar Gowla (Member- State Tax).
...
The Central Board of Indirect taxes and Customs had issued Notification 08/2023-Central Tax dated March 31, 2023, regarding Amnesty to GSTR-10 non-filers
Central Government, on the recommendations of the Council, hereby waives the amount of late fee which is in excess of INR 1000 for the registered persons who fail to furnish the final return in FORM GSTR-10 by the due date but furnish the said return between the period from the April 1, 2023 to June 30, 2023.
...
The Central Board of Indirect taxes and Customs had issued Notification 03/2023-Central Tax dated March 31, 2023, regarding Extension of time limit for application for revocation of cancellation of registration.
Government has made an amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that -
Cost Inflation Index (CII) for FY 2023-24 for computing Indexed Cost of Acquisition for determining Taxable Amount of LTCG notified as 348.
Compared to the preceding CII 331 for FY 2022-23, this represents an increase of 5.14%
Companies will not be required to pay GST on employees’ share of canteen charges collected by them and paid to the service provider. However, they will get input tax credit (ITC) on the on GST charged by the service provider in respect of canteen facility provided to its direct employees working in their factory, as per two rulings by Gujarat Authority for Advance Rulings (GAAR) and one by Andhra Pradesh AAR (APAAR).
Though authority on advance rulings (AAR) are applicable on applicant and jurisdictional tax officer only, still they are being relied upon in similar matter. Also, in many cases, they have become base of policy decision, applicable on all.
Applications with GAAR
Two applications on similar matter – first by AIA Engineering and second by Cadila Pharmaceuticals, were filed with GAAR. AIA, in its application, said that it provides canteen services to around 250 employees. The employees bear 50 per cent of canteen charges while the remaining is bone by the company. The total is paid to the canteen service provider.
The company sought advance ruling on two queries. First, whether GST is applicable on the amount representing the employee’s portion of canteen charges recovered/collected by the applicant from its employees and paid to the canteen service provider on behalf of the employee. Second, whether the company is eligible to take the input tax credit for the GST charged by the canteen service provider for the canteen services.
In its application, Cadila said that it pays full charges to the canteen service provider for services provided to employees. Part of those charges is recovered from the employees. The company makes payment to the service provider along with GST at 5 per cent but does not avail ITC.
It moved to GAAR to seek advance ruling on four queries. First, whether subsidized deduction made by the applicant from the employees who are availing food in the factory/corporate office would be considered as a supply. Second, if it is supply, what would be GST rate. Third, on what portion GST will be applicable i.e, amount paid by the applicant to the canteen service provider or only on the amount recovered from the employees. And fourth, whether ITC would be available to the company.
In the matter, before APPEAR, Brandix Apparel India just wanted to know whether GST would be applicable on the amount recovered from employees for canteen facilities provided to them.
GAAR ruling
After going through all the facts and arguments present in relation to application made by AIA, GAAR said that GST is not leviable on the amount representing the employee’s portion of canteen charges recovered/collected by the company and paid to the canteen service provider since it would not be considered as a supply. However, ITC will be available to the company on its share in total amount paid to the canteen service provider.
Similarly, while disposing application by Cadila, GAAR said that the subsidized deduction made by the applicant from the employees who are availing food in the factory/corporate office would not be considered as a ‘supply’. The ITC will be restricted to to the extent of the cost borne by the company for providing canteen services to its direct employees.
APAAR cited provisions of State’s Factory Act which mandates providing canteen services and concluded that GST would not be applicable on employees’ share of canteen charges.
...The Punjab Vigilance Bureau (VB) arrested a chartered accountant (CA) Ankush Sareen, a resident of Ludhiana, for taking a bribe of Rs 26 lakh from a man in the name of income tax officers based in Chandigarh.
A VB spokesperson said a case has been registered against Sareen, who practises privately, following an investigation into an online complaint lodged at the chief minister’s anti-corruption action line.
He said complainant Parminder Singh Sidhu, a resident of Malsian village, Ludhiana district, has alleged that Sareen had taken Rs 26 lakh in two instalments for giving bribe to the income tax officers in lieu of settlement of a notice served to his relatives residing in USA regarding an income tax return.
The complainant alleged that he had handed over Rs 25 lakh cash to the CA at his residence on January 15 and made a video of the act. After this, CA Ankush Sareen had obtained Rs 1 lakh more for “junior officers of income tax department” from the complainant on January 26.
During an inquiry from the I-T department, the complainant came to know that said notice of I-T department had not been replied to and he realised that said CA had taken a bribe fraudulently in the name of income tax officers by threatening him about heavy penalty. When he asked the CA to return his money, he didn’t do so.
The spokesperson said the VB unit of Ludhiana range investigated the allegations levelled in the complaint and registered a corruption case at VB police station Ludhiana against the CA after finding him guilty for taking bribe. Further investigation in this case was under progress, he said.
...The Income Tax (I-T) department has been given an internal target of issuing refunds within a period of seven days.
This came up during the process of drafting the budget. Meeting such a short deadline is a challenge in itself.
However, the department has also been able to reduce the average time taken for issuing refunds in the financial year 2022- 23 to 16 days as against 26 in the fiscal before.
The country has also achieved the highest-ever direct tax collection of RS 16.61 lakh crore.
This was revealed by the chairman of the Central Board of Direct Taxes (CBDT) Nitin Gupta who expressed that the time can be further shortened.
The CBDT is the apex body governing the department. He was addressing the passing out ceremony of the 75th batch of Indian Revenue Service (IRS) joining the department after their training at the National Academy of Direct Tax (NADT) in Nagpur.
Gupta said the amount of refunds issued during the financial year 2022-23 has been higher by Rs 18,000 crore as compared to its previous fiscal. In the year as much as 42 per cent of the returns were processed within 24 hours and even the refunds were issued at the same pace.
The Indian tax administration has surpassed even that of the advanced countries when it comes to aspects like electronic filing, said Gupta.
He said as much as 7.5 crore returns were filed through the e-filing two portals and 72 lakh returns were filed on a single day July 31 which was the last date of filing.
The department has also changed the way in which it communicates with the taxpayers having its own Twitter handle and a quick response team to grievances. This has led to higher collections and even the cost of collection has gone down, said Gupta.
Gupta also said that the department is watchful of the tax evaders and has been able to create credible deterrence through using technology. This has helped in flagging off errors or discrepancies in declarations or the accounts by the assesses which has helped in detecting evasion of tax.
The deterrence is achieved through the data which the department has leading to a non-intrusive manner of checking tax evasion. The taxpayer is shown all the financial transactions taken by him through the annual information system. This nudges the assess to pay the proper dues, he said.
In 2022-23 a system of updated returns by paying additional tax ranging from 25 per cent to 50 per cent extra tax for a period of two years.
This has led to a reduction in litigation. There are times when certain details are genuinely missed in the returns without these can be included in the updated returns, he later told TOI.
In the last fiscal as much as 20 lakh such returns were filed getting a collection of Rs 1500 crore, he said.
...The Karnataka bench of the Authority for Advance Rulings (AAR) held in a recent ruling that sale of a business vertical as a ‘going concern’ will not attract the goods and services tax (GST), provided the conditions are met. This is because a notification dated June 28, 2017 specifically prescribes that “services by way of transfer of a going concern, as a whole or an independent part thereof, attracts nil rate of GST”.
While advance rulings do not set a judicial precedent, they have a persuasive impact on assessments. This ruling will help entities contemplating sale of business, say tax experts. In this case, Bengaluru-based Pico2Femto Semiconductor Services engaged in research, development and providing engineering services in the semiconductor space entered into a business transfer agreement for one of its independent running divisions (termed as the staffing division). This division, along with all its assets and liabilities, was to be transferred as a whole as a going concern on an ‘as is, where is basis’.
The company submitted that the agreement was that of a slump sale, it did not involve any element of supply of goods or services, and hence no GST applies. In addition to the assets and liabilities, it pointed out that the existing contracts of the company will also be transferred and taken over by Tessolve Semiconductor, the buyer, who will initiate the invoices in the future. All existing employees of the staffing division will also be transferred to the payroll of the purchasing entity.
The consideration for the transfer would be received in multiple states, with a performance guarantee and sharing of revenues. The minimum consideration would be Rs 4.5 crore and the maximum (given that the performance criteria were met) would be Rs 27.5 crore.
The AAR held that the transfer of an independent running business division, along with all its assets and liabilities, as a business concern amounts to a ‘supply of services’. The GST rate for supply of services is 18%. However, it added that the benefit of the notification of June 2017, which prescribes a nil rate, would be available subject to the fulfilment of the conditions of a going concern.
Source from: https://timesofindia.indiatimes.com/city/mumbai/no-gst-on-biz-vertical-sold-as-going-concern/articleshow/99254398.cms
...The provisional figures of Direct Tax collections for the Financial Year (FY) 2022-23 show that Net collections are at Rs. 16.61 lakh crore, compared to Rs. 14.12 lakh crore in the preceding Financial Year i.e. FY 2021-22, representing an increase of 17.63%.
The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2022-23 were fixed at Rs.14.20 lakh crore which were revised and the Revised Estimates (RE) were fixed at Rs.16.50 lakh crore. The provisional Direct Tax collections (net of the refunds) have exceeded the BE by 16.97% and RE by 0.69 %.
The Gross collection (provisional) of Direct Taxes (before adjusting for refunds) for the FY 2022-23 stands at Rs. 19.68 lakh crore showing a growth of 20.33 % over the gross collection of Rs.16.36 lakh crore in FY 2021-22.
The gross Corporate Tax collection (provisional) in FY 2022-23 is at Rs.10,04,118 crore and has shown a growth of 16.91% over the gross corporate tax collection of Rs.8,58,849 crore of the preceding year.
The gross Personal Income Tax collection (including STT) (provisional) in FY 2022-23 is at Rs.9,60,764 crore and has shown a growth of 24.23% over the gross Personal Income Tax collection (including STT) of Rs.7,73,389 crore of the preceding year.
Refunds of Rs.3,07,352 crore have been issued in the FY 2022-23 showing an increase of 37.42 % over the refunds of Rs.2,23,658 crore issued in FY 2021-22.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1913403
...The Delhi High Court has restrained Institute Of Cost Accountants Of India from using “ICAI” acronym, a trademark which stands registered in favour of The Institute of Chartered Accountantsof India
https://www.livelaw.in/news-updates/delhi-high-court-restrains-institute-of-cost-accountants-of-india-icai-acronym-224881
...The CBDT vide F. No. DGIT(S)-ADG(S)-3/e-Filing Notification/Forms/2023/ 13420 dated March 28, 2023 extended Form 10F e-filing exemption for Non-residents without PAN till September 30, 2023.
Reference is invited to Notification No. 03/2022 dated July 16, 2022 issued by the Directorate of Income Tax (Systems) New Delhi in exercise of powers conferred under Rule 131(1)/(2) of the Income-tax Rules mandating, inter alia, furnishing of Form 10F electronically.
On consideration of the practical challenge being faced in making compliance as per the above notification, those non-resident (NR) taxpayers who were not having PAN and not required to have PAN as per relevant provisions of the Income-tax Act, 1961 read with Income-tax Rules, 1962, were exempted from mandatory electronic filing of Form 10F till March 31, 2023 by the competent authority.
In view of the continued practical challenges and to mitigate the genuine hardship being faced by such category of taxpayers, it has been decided by the competent authority to extend the above mentioned partial relaxation further till September 30, 2023. For the sake of clarity, it is reiterated that such category of taxpayers may make statutory compliance of filing Form 10F till September 30, 2023 in manual form as was being done prior to issuance of the DGIT(Systems) Notification No. 3 of 2022.
The Notification can be accessed at: https://incometaxindia.gov.in/communications/notification/partial-relaxation-extention-form-10f.pdf
...The CBDT has issued Circular No. 03 of 2023 dated March 28, 2023 specifying the consequences of non-linking PAN & Aadhar as per new substituted rule 114AAA w.e.f. July 01, 2023
Consequent to the notification substituting rule 1I4AAA of the Income-tax Rules, 1962 (the Rules) vide notification no. 15 of 2023 dated March 28, 2023, it is hereby clarified that a person who has failed to intimate the Aadhaar number in accordance with section 139AA of the Income-tax Act, 1961 (the Act) read with rule 114AAA shall face the following consequences as a result of his PAN becoming inoperative:
(i) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made to him;
(ii) interest shall not be payable to him on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA and ending with the date on which it becomes operative;
(iii) where tax is deductible under Chapter XVJJ-B in case of such person, such tax shall be deducted at higher rate, in accordance with the provisions of section 206AA;
(iv) where tax is collectible at source under Chapter XVJJ-BB in case of such person, such tax shall be collected at higher rate, in accordance with the provisions of section 206CC.
These consequences shall take effect from July 01, 2023 and continue till the PAN becomes operative. A fee of one thousand rupees will continue to apply to make the PAN operative by intimating the Aadhaar number.
The consequences of PAN becoming inoperative shall not be applicable to those persons who have been provided exemption from intimating Aadhaar number under the provisions of sub-section (3) of section 139AA of the Act.
The Circular can be accessed at: https://incometaxindia.gov.in/communications/circular/circular-03-2023.pdf
...The goods and services tax (GST) on restaurant bills could be confusing for many customers. At times restaurants are also accused of generating fake GST bills even if they do not come under the purview of the GST Act, or collecting the tax without a valid GST number. However, the Press Information Bureau has shared an illustration on the GST levied on restaurant bills, which may clear all your doubts.
In the latest edition of New India Samachar, the government’s bi-weekly online news magazine, it has been claimed that after the implementation of GST, customers can save at least Rs 150 on taxes on a total bill amount of Rs 1,000.
Comparing a bill of Rs 1,000 with that of the pre-GST era, the government said, “One nation, one tax i.e. GST has made having food in the restaurant cheaper.”
In the comparison chart, it could be seen that on the food bill of Rs 1,000, total taxes including VAT used to be Rs 303.5. The tax components included 10 percent service charge, 6.5 percent service tax, 0.2 percent Krishi Kalyan cess (KKC), 0.2 percent Swachh Bharat cess and 14.5 percent value added tax. However, post-GST, the amount has been reduced to Rs 150, including 10 percent service charge and 5 percent GST, on the same bill amount.
Five percent GST is applicable on the total bill amount in air-conditioned and non-air-conditioned restaurants, whereas 18 percent GST is levied on the food services if the restaurant is located on the premises of a club or guest house.
A GST of 18 percent is also levied on food in restaurants in hotels, where room tariff is more than Rs 7,500.
When GST was rolled out in 2017, 12 percent and 18 percent rates were being levied in non-AC and air-conditioned restaurants, respectively.
Source from: https://www.cnbctv18.com/finance/your-restaurant-bill-is-less-in-gst-regime–govt-explains-with-figures-16256661.htm
...In a bid to prevent use of bogus documents for GST registration, Chief Commissioner of Central GST (CGST) Bhopal zone Navneet Goyal on Thursday issued the Standard Operating Procedure (SOP) in a trade notice.
As per the notice, aspirants will have to upload crucial documents of their business establishment like rent or lease agreement and registered/notorised NOC for GST registration. Besides, address on property document, property tax receipt, municipal khata copy and electricity bill should be the same as mentioned in the application.
The objective is to prevent use of forged documents and reduce queries and other GST registration hurdles.
Rejection of registrations or queries often causes unnecessary delay. It was found that query or rejections arose due to submission of illegible documents by applicants or mismatch in address in uploaded documents and application for registration.
In some cases, the businessman and the property owner were different or rent agreement, NOC for business at rented premises was submitted on plain papers.
As per trade notice, in light of mushrooming of bogus firms it was important that registration application be checked properly and due diligence exercised by officers. At the same time, it was also important that a genuine taxpayer was not inundated with frivolous queries.
In view of the above the SOP was prepared, wherein it was mentioned that all documents uploaded with the application for registration must be legible.
The rent, lease agreement, NOC, consent letter should be registered or notarized. In case, the trade name is different from the legal name, valid document like Gumasta, etc. would have to be submitted. The photograph uploaded in the REG-01 should be a recent one.
soruce:https://www.freepressjournal.in/indore/indore-sop-issued-to-check-rise-of-bogus-firms-in-gst-registration
...The Centre will soon set up appellate tribunals for resolving disputes linked to the Goods and Services Tax (GST) with finance minister Nirmala Sitharaman moving amendments in the Finance Bill on Friday for setting up such entities.
Last month, the GST Council had approved the setting up of such tribunals for hearing appeals against the orders passed by the appellate authority or the revisional authority. The setting up of the GST Appellate Tribunal has been an area of dispute between the Centre and states and it had taken several months for them to come on board.
According to the Finance Bill, which was approved by the Lok Sabha on Friday, the government will set up a principal bench of the appellate tribunal in New Delhi which will consist of a president, a judicial member and two technical members representing the Centre and state.
It also said that on the request of states, state benches will be set up, which will include two judicial members, and two technical members representing the Centre and state. In February, revenue secretary Sanjay Malhotra had said that while one member will decide cases with disputes of up to Rs 50 lakh, cases above the threshold will be adjudicated by one technical member and one judicial member.
...
Now Taxpayers can transfer the amount in Cash Ledger from one GSTIN to another GSTIN registered on the same PAN through Form GST PMT-09. Navigate to: http://gst.gov.in > Dashboard> Services> Ledgers> Electronic Cash Ledger #GSTPMT09 #cashledger #gst #gstpayments
Source:https://twitter.com/Infosys_GSTN/status/1638434470607896578?t=p4_HjQTC0y-eDtZcDOZGDQ&s=19
Steps:
Step 1. Login to www.gst.gov.in > 01 Dashboard> Services> Ledgers> Electronic Cash Ledger
Step 2. Select the transferee GSTIN from dropdown
Step 3. Select ‘FROM’, ‘TO’ and ‘AMOUNT’
Step 4. See preview of updated balance on screen
Step 5. Choose between EVC and DSC filing from the common filing page and verify accordingly
Step 6. Message of successful filing is displayed
Relevant provision: Rule 87(14) of the CGST/SGST Rules, 2017
Note: No such transfer shall be permitted if the registered individual has any unpaid liability in his electronic liability register.
...21/03/2023
As per provision of section 2(62) of The Companies Act, 2013 “One Person Company” is defined as a company which has only one person as member.
Some issues have been raised by the persons registering as ‘One Person Company’ while they take GST registration. Upon analysis, it has been noticed that the option of choosing One Person Company is not there in form notified by CGST/SGST Acts and hence not available on the GSTN portal also.
As a work around, it is advised that in the ‘Part B’ of GST Registration Form ‘REG-01’, applicant may select (Constitution of Business under ‘Business Details’ tab using dropdown list) option “Others”, if the taxpayer wants to register for GST as “One Person Company”. After selecting option as “Others”, the applicant shall also mention “One Person Company” in the text field and follow the steps for a normal registration application to complete the process.
In case of any further issues, it is advised to raise ticket at self help portal.
Thanking You,
Team GSTN
https://www.gst.gov.in/newsandupdates/read/574
...The Income Tax Department has launched a Mobile app for Taxpayers to view Annual Information Statements (AIS).
AIS App is a free mobile application, provided by the Income Tax Department, Government of India. The app is meant to provide a comprehensive view of the Annual Information Statement (AIS), which is a collection of various information pertaining to a taxpayer. Taxpayers can provide feedback on the information displayed in AIS.
The taxpayers need to verify their email and mobile as per their profile with OTP and they can set 4 digit PIN. The taxpayers can track their taxes and TDS with just a click.
The AIS information is also accessible through the AIS web portal. There is consistency between the data displayed on the mobile app and the web portal.
...
The Hon’ble Supreme Court in the State of Karnataka v. M/s. Ecom Gill Coffee Trading Pvt. Ltd. [Civil Appeal No. 230 of 2023 dated March 13, 2023] has quashed and set aside the order passed by the Hon’ble Karnataka High Court on the grounds that until the purchasing dealer discharges the burden of proof under Section 70 of the Karnataka Value Added Tax Act, 2003 (“the KVAT Act”), and proves the genuineness of the transaction/purchase and sale by producing the relevant materials, such as name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and payment particulars etc, such purchasing dealer shall not be entitled to Input Tax Credit (“ITC”). Restored the order passed by the Revenue Department.
Facts:
M/s. Ecom Gill Coffee Trading Pvt Ltd. (“the Respondent”) is a purchasing dealer. The Respondent has purchased green coffee beans from other dealers for the purposes of further sale in exports and in the domestic market. The Revenue Department (“the Appellant”) issued a notice to the Appellant under Section 39 of the KVAT Act upon finding irregularities in Input Tax Rebate claimed for Assessment Year (“A.Y”) 2010-2011. Subsequently, upon re-assessment, it was found that the Respondent had claimed ITC from 27 sellers, out of which 6 were de-registered, 3 had not filed taxes despite selling to the dealer, and 6 had denied turnover and not paid taxes. As a result, ITC worth INR 10.52 lakhs was disallowed. The Respondent preferred an appeal, but it was rejected by the first Appellate Authority, however, the second Appellate Authority allowed the appeal on the grounds that the Respondent purchased the coffee from the registered dealer under genuine tax invoices and consequently allowed the ITC claimed vide its judgment (“the Impugned Judgement”). The Hon’ble Karnataka High Court (“the High Court”), also dismissed the revision application vide its order(“the Impugned Order”).
Being aggrieved, this appeal has been filed.
The Appellant contended, that the High Court has materially erred in dismissing the revision application as it did not consider that the burden of proof for claiming ITC is on the purchasing dealers. They must prove the authenticity of the transactions and actual movement of goods as per Section 70 of the KVAT Act. Further contended that, the Respondent is entitled to ITC only if it can prove the actual payment of tax and transfer of goods as the Appellant cannot recover from sellers who are not registered or have filed ‘NIL’ returns, thereby denying the sale.
The Respondent contended that, it had discharged the burden of proof cast under Section 70 of the KVAT Act. Once the dealer has discharged the burden of proof cast under Section 70 of the KVAT Act, the purchasing dealer is entitled to the ITC and if at all it is found that a tax is not paid by the seller, the same can be recovered from the seller. Further contended that, no other document or any other obligation, which are statutorily required for the purposes of establishing the claim for seeking refund towards ITC are provided as per the KVAT Act and the Rule 27 and Rule 29 of the Karnataka Value Added Tax Rules, 2005 (“the KVAT Rules”) and that the Appellant had acted beyond the KVAT Act and the KVAT Rules.
Issue:
Whether the second Appellate Authority, as well as the High Court, were justified in allowing the ITC to the Respondent?
Held:
The Hon’ble Supreme Court in Civil Appeal No. 230 of 2023 held as under:
Relevant Provisions
Section 70 of the KVAT Act:
(1) For the purposes of payment or assessment of tax or any claim to input tax under this Act, the burden of proving that any transaction of a dealer is not liable to tax, or any claim to deduction of input tax is correct, shall lie on such dealer.
(2) Where a dealer knowingly issues or produces a false tax invoice, credit or debit note, declaration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to be taxed, or liable to tax at a lower rate, or that a deduction of input tax is available, the prescribed authority shall, on detecting such issue or production, direct the dealer issuing or producing such document to pay as penalty:
(a) in the case of first such detection, three times the tax due in respect of such transaction or claim; and
(b) in the case of second or subsequent detection, five times the tax due in respect of such transaction or claim.
(3) Before issuing any direction for the payment of the penalty under this Section, the prescribed authority shall give to the dealer the opportunity of showing cause in writing against the imposition of such penalty
from AtoZ Taxcorp
...In a comprehensive ruling, the GST Authority for Advance Ruling (GST-AAR), Maharashtra bench, has addressed a host of issues, typically faced by co-operative housing societies. In response to questions raised by Bhandup-based, Mahindra Splendour Co-operative Housing Society (CHS), the GST-AAR bench stated that if monthly charges collected from members (flat owners) exceeds Rs. 7,500 per month, goods and services tax (GST) will be levied and collected on the entire sum and not on the differential value which is in excess of this threshold. To illustrate, if maintenance charges are Rs 9,000 per month, GST will be applicable on this amount and not the differential of Rs 1,500. The AAR bench pointed out that the GST authorities have challenged a decision of the Madras High Court that upheld applicability of GST on the differential sum. A larger bench has issued a stay order and the matter is not yet settled. The AAR added that charges collected by the CHS on account of property tax, electricity charges and other statutory levies that form part of monthly maintenance bills would be excluded while calculating the threshold limit of Rs 7,500 per month. Rulings given by the AAR have a persuasive value and are taken into cognisance by authorities during assessments. However, it should be noted that smaller CHS’ with an annual turnover of Rs 20 lakh or less do not have to register and consequently do not have to comply with GST obligations. Mahindra Splendour CHS submitted to the AAR bench that the basic objective of collecting amounts towards sinking fund, building repair fund, education and election fund is to meet future or unplanned major expenditure. Such contributions are in the nature of a ‘deposit’ and are used for the specific purpose as prescribed in by-laws. Thus, GST should not apply at the time of collection. The AAR bench pointed out that amounts towards sinking and repair funds are collected as per percentage fixed in the CHS’s by-laws and in accordance with circulars issued by the Registrar of Co-operatives. If a sum is a deposit, it can be refunded. However, such funds are not refundable to members. Thus, GST would be triggered on collection and not in the future when it is utilised (say, for painting the building). Likewise, it held that education and election funds are also not a deposit and GST applies at the time of collection. This CHS was suppling water received from the Mumbai municipal corporation through an elaborate storage and pumping system. Further, it had a sewage treatment plant which supplied recycled water to all flats for use in toilet flushing. The AAR bench held that the notification 2/2017 which provides for a nil GST rate pertains to goods supplied and not services supplied. Mahindra Splendour is providing a ‘service of supplying water’ –members are not charged based on the quantity of water supplied. Thus, the notification is not applicable and water supply charges are subject to GST. In the absence of specific details, the AAR bench did not give a categorical reply. However, it pointed out that major repairs involving large expenditure extend the useful life of an equipment – for eg: replacement of a motor in a lift. In accounting, such major repairs are capitalised as assets and depreciation (write-off) over a period of time is available. Input tax credit will not be available against expenses that are capitalised, it explained.
...
A Parliamentary committee has recommended to the government to increase the subsidy on buying of private electric 3- and 4- wheelers as has been done for promoting the adoption of electric two wheelers under FAME-II. It has also sought an increase in import duty on “child parts” smaller parts that are assembled together to create vital parts in a phased manner till these components are manufactured locally, while taking note that some of these items are still imported from countries including China. The panel has also suggested the lowering of GST rates on hybrid electric vehicles (HEVs). It took note of how currently EV cars are taxed at 5% and big HEVs are charged 43% (28% GST plus 15% cess). “EVs reduce energy consumption by 75% over internal combustion engine (ICE), while HEVs reduce energy consumption by 30-45% over ICE without any external charger. Hence, HEVs are also entitled for discount on GST rate as in the case of EVs. GST support of HEV would help the whole ecosystem and provide impetus to EVs,” said the Parliamentary standing committee on industry. In its report, the committee has said that despite great progress in localising major components, vehicle manufacturers are still importing some child parts from other countries such as China.
...The union government has no plans to abolish long term capital gains (LTCG) tax on equities and mutual funds, ministry of finance told Parliament on Tuesday in reply to a question raised in the House. The government has also said it has no plan to increase the period of LTCG from one year to two years for mutual funds and equities. On whether the government would increase LTCG on mutual funds and equities from one year to two years and would abolish the taxes on LTCG to boost the sentiments of the economy and accelerate speedy recovery after Covid, the government said, “there is no such proposal under consideration.” The long term capital gains on the sale of listed equity shares have been made taxable from April 2018. In the case of equity investing, long-term means a holding period of more than one year from the date of purchase. Long-term capital gains are the profits earned on the sale of listed equity shares. Before 2018, the long term capital gains earned on equity investing was tax-free. The government has also disclosed the revenue it earned from LTCG for the assessment years 2018-19 to 2020-21. For AY 2018-19, the government has earned ?1,222 crore. Similarly, for AY 2019-20 and AY 2020-21 has garnered ?3,460 crore and ?5,311 crore respectively. In equity investing, there is also a short term capital gains tax, which will be taxed 15% irrespective of the income tax slab, for the sale of equity shares within a period of 12 months.
...
In the 45th meeting of the GST Council held on September 17, 2021, the Council constituted a Group of Ministers (GoM) Committee to examine matters related to rationalisation of GST rates. The objective of the group is to simplify the rate structure of GST to reduce classification related disputes and enhance GST revenues. The specific objectives of the GoM on Rate Rationalization are the following: – review the exempted supply of goods and services under GST with an objective to expand the tax base as well as elimination of breaking of ITC chain, review the current tax rates of GST and recommend changes to generate required revenue, review the current rate structure of GST and recommend rationalization measures (including merger of tax slabs for simplification) and review the instances of inverted duty structure and recommend suitable rates to eliminate the same. GST rate structure has undergone many changes since the introduction of GST in India. Revenue mobilization from the GST is falling short of targets and it is attributable to reduction of tax rates as well as lack of tax compliance. This is hurting tax revenue of the Union government as well as States. Like every tax reform, it was also envisaged that GST will be revenue-neutral – that means expected revenue from GST will match the revenue from taxes that is subsumed into GST. Media reports have indicated that the effective tax rate under GST gone down from the original revenue-neutral rate of 15- 15.5% (as estimated in December 2015 by the then Chief Economic Adviser of Ministry of Finance, Government of India) to 11.6 per cent during July-September 2019 (as reported by the Reserve Bank of India in State Finances a Study of Budgets of 2019-20) on account of multiple rate cuts since introduction of GST in July 2017. It is expected that recommendations of the GoM on rate rationalization will correct this gap through rate changes in several product categories. A multiple rate GST is politically more acceptable than a single rate GST as it has the potential to moderate the regressivity of GST. Taxing ‘sin’ goods (demerit/ luxury goods) at a higher rate often create fiscal space in favor of lowering standard rate(s). Taxing semi-processed or unprocessed foods and basic necessities at lower than standard rate often finds support from various quarters. On the other hand taxing high value low volume goods like precious stones, gems and jewellery at a higher rate may encourage unaccounted (undisclosed) transactions and therefore revenue leakages. Therefore, often these items attract special rates. Though, there is no consensus on what will be the optimal number of tax rates, it is desirable that it should be as minimum as possible. In the present structure of GST, there are seven different GST rates apart from ‘zero’ (or nil rate). Two special rates – diamonds and precious (semi-precious) stones attract GST rate of 0.25% and gems and jewellery attract 3% GST rate. 0.1% GST rate is applicable for the supply of goods to merchant exporters. There are three standard GST rates – 5%, 12% and 18% and one de-merit rate of 28%. A recent study of NIPFP on “Revenue Implications of GST Rates Restructuring in India: An Analysis” assesses the revenue implications of restructuring GST rates. The study builds six alternative scenarios based on various assumptions about the tax rate-wise distribution of taxable value and tax liabilities. It estimates that if the GST rate structure prevailing at the time of GST introduction is restored again in 2020-21, it may generate additional annual GST revenue of Rs. 124,904 crore. However, the revenue gain due to reinstating original GST rate structure is indicative and actual revenue gain may differ depending on ITC utilization pattern across tax rates (as well as tax payers), change in the tax compliance behavior and impacts on consumption pattern and associated changes in the output or taxable value etc. Following the recommendation of the Fifteenth Finance Commission, the study explores the possibility of rationalisation of GST rate structure by merging the rates of 12% and 18%. The study finds that merging 12% and 18% tax rates into any tax rate lower than 18% may result in revenue loss. Since 18% tax rate holds two-fifth (41%) share in total taxable value (or taxable turnover) vis-à-vis 12.3% by 12 per cent tax rate, if the merged tax base attract 15% tax, there will be revenue loss. To compensate the revenue loss, if the GST council considers increasing the highest tax rate (i.e., 28% at present), the highest tax rate needs to be increased to 37.55% (or approximately 38%). Alternatively, if the council considers increasing 5% tax rate, it needs to be increased to 8.81% (or approximately 9%). Alternatively, the council may consider three rate structure of GST by adopting 8%, 15% and 30% and it may help to achieve revenue neutrality. In all possibility it is likely that special rates will continue as prevalent at present. Sequencing the transition to new GST rate structure will be important to minimize the costs associated with tax compliance, tax administration and economic distortions. Consultations of stakeholders would be another important aspect before introducing new GST rate structure. Restructuring of GST rates may be an idea whose time has come to help improve revenue mobilization. Estimation of revenue-neutral rates (RNRs) cannot be a onetime event, especially when the rate structure is undergoing changes so as the tax compliance, processes and procedures. Therefore, it is desirable that estimation of RNRs may be taken up by the GST council every regular interval, given the revenue needs of the governments. Given data limitations, these results are indicative. However, the methodology developed in the NIPFP paper may help any future research on the restructuring of GST rates. Source
...The Income Tax Department initiated search and seizure operations on two major business groups of Indore on November 25, 2021. The first group is engaged in the business of mining, media and providing cable TV services and the second group is running a coaching academy. The search action has covered more than 70 premises in Madhya Pradesh and 5 other states. During the course of search action, various incriminating documentary and digital evidence including parallel set of financial records of some of the businesses have been found and seized. A preliminary analysis of these evidences show evasion of taxable income by adopting various malpractices, particularly suppression of sales in mining business. Similar large-scale tax evasion has been found in the business of cable TV service. Evidences of other malpractices such as payment of on-money, suspected benami transactions, unaccounted expenditure incurred in cash, undisclosed investment in immovable properties, etc. have also been found. Investigations have revealed that the group has also taken accommodation entries in the form of bogus unsecured loans exceeding Rs. 40 crore from various shell companies managed by entry operators. The main entry operator, the key handler, and several dummy directors of the shell companies have been identified, traced and covered during the search operation. The dummy directors and key handler have admitted that the companies are merely paper entities, and they are working at the behest of the main entry operator. Documentary evidence found and seized from the search operation of the coaching group clearly shows suppression of cash receipts from students which is in excess of Rs. 25 crore. The analysis of seized evidence also indicates that this group is systematically suppressing its royalty receipts and profit share income from its various franchisees. Unaccounted cash exceeding Rs. 10 crore has been received on such accounts. The search operations have resulted in the seizure of unaccounted cash of Rs. 2 crore. Further investigations are under progress. The Press Release can be accessed at:
...
*CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22* On consideration of difficulties reported by the taxpayers and other stakeholders in filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961 *(“the IT Act”)* , Central Board of Direct Taxes *(“CBDT”)* has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22.
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1753603&RegID=3&LID=1
...1. As you might be aware that the facility of blocking E way bill generation had been temporarily suspended due to pandemic, in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for a consecutive period of two months / Quarters or more.
2. The government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards.
3. Thus, after 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and restrict the generation of EWB in case of:
4. To avail continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns/ CMP-08 Statement immediately.
5. For details of blocking and unblocking EWB Click on below links
https://tutorial.gst.gov.in/userguide/returns/index.htm#t=FAQs_unblockingewaybill.htmNote: Please ignore this update if you are not registered on the EWB portal.
SourceThe Goods and Services Tax Network (GSTN) has enabled annual return (GSTR-9) for the FY 2020-21 on the GST Portal for filing.
Important Points Relating to GSTR-9:
Source GST Portal
...
Karnataka Chief Minister Basavaraj Bommai has said the Centre has agreed to give last year’s pending GST compensation of Rs 11,400 crore at the earliest in instalments.
His statement came after meeting Union Finance Minister Nirmal Sitharaman in the national capital on Friday.
He said the funds are required urgently to meet the Covid-19 and other expenses in the state.
“I have requested for payment of last year dues in GST compensation of Rs 11,400 crore. The FM has agreed to give it in instalments. She will start releasing it immediately,” Bommai told reporters after the meeting.
Bommai, who is also a member of the GST Council, said the state had received a GST compensation of Rs 12,000 crore for the 2020-21 fiscal. However, the pending amount was Rs 11,400 crore, he said.
The chief minister also sought early release of GST compensation of about Rs 18,000 crore for the current fiscal and funds for the centrally sponsored schemes.
“She (FM) has promised a lot of help for the agriculture sector through NABARD,” he said.
This was his first visit to Delhi after becoming the chief minister.
On the second day of his visit, the chief minister also called on Parliamentary Affairs Minister Pralhad Joshi.
He also visited Raj Ghat to pay tribute to Mahatma Gandhi. He also paid tribute to former prime minister Atal Bihari Vajpayee at his memorial Sadaiv Atal here.
On Friday, Bommai had called on Prime Minister Narendra Modi. He also met Home Minister Amit Shah and Defence Minister Rajnath Singh.
He had also met MPs from the state at Hotel Ashoka here.
Bommai, who was elected as the new leader of the BJP legislature party on Tuesday, following BS Yediyurappa’s resignation, took oath as the chief minister on Wednesday.
Source
...The Delhi assembly on Friday passed the ‘Delhi Goods and Services Tax (Amendment) Bill, 2021’ to smoothen the GST filing process and to prevent tax evasion, amid opposition from the BJP over its introduction and passage on the same day.
Small changes have been made in 15 sections of the Delhi GST Act. These have been incorporated on the basis of experiences and feedback from traders, deputy chief minister Manish Sisodia said while introducing the bill on the second and last day of the monsoon session.
The amendments, he said, aim to smoothen the GST filing process and check fraud practices.
“GST is a new law; it has come to our notice that some people took advantage of it and evaded tax. So, some amendments are aimed at plugging tax evasion,” Sisodia said.
He said one of the amendments does away with the need for a mandatory audit and reconciliation of registered traders with a turnover of 1.5 crore and above.
“Because of this, the traders had to depend on chartered accountants and company secretaries,” he added.
As the bill was being introduced, BJP MLA Vijender Gupta objected to the government bringing the bill, discussing it and passing it the same day.
“According to the rules, copies of the bill should be given to all members of the House two days in advance to study it. We did not get any hard copy,” Gupta said.
To this, speaker Ram Niwas Goel said copies of the bill had been sent to all members on their mobile phones on Thursday evening.
Source
...
The GST collection for the returns filed between 1st July to 5th July2021 of ? 4,937 crore had also been included in the GST collectionin the press note for the month of June2021since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month June21 for the taxpayers with the aggregate turnover uptoRs. 5 crore in the wake of covid pandemic second wave.
The government has settled ? 28,087 crore to CGST and ? 24100 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlement in the month of July’ 2021 is ? 50284 crore for CGST and ? 52641 crore for the SGST.
The revenues for the month of July 2021 are 33% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 36% higher and the revenues from domestic transaction (including import of services) are 32% higher than the revenues from these sources during the same month last year.
GST collection, after posting above Rs. 1 lakh crore mark for eight months in a row, dropped below Rs. 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021 and during May2021, most of the States/UTs were under either complete or partial lock down due to COVID. With the easing out of COVID restrictions, GST collection for July2021 has again crossed?1 lakh crore, which clearly indicates that the economy is recovering at a fastpace.The robust GST revenues are likely to continue in the coming months too.
The table shows the state-wise figures of GST collected in each State during the month July 2021 as compared to July 2020
...In M/s. S. R. & Sons. v. Assistant Commissioner & Ors. [W.P. Nos. 15306 and 15307 of 2021 & WMP No. 16193 of 2021 dated July 26, 2021], M/s S.R. & Sons (“the Petitioner”) is a partnership firm, involved in the activity of manufacture of knitted and crocheted fabrics.
The Petitioner contended that under Section 50 of the Central and Goods Services Tax Act, 2017 (“the CGST Act”), interest on delayed payment of tax shall be charged. However, the Petitioner has raised that the Assistant Commissioner (“the Respondent”) failed to adjudicate the factual as well as legal grounds.
The Petitioner has grievances against order-in-original dated November 11, 2020 (“OIO”), regarding charging of interest under Section 50 of the CGST Act and to redress grievances, the Petitioner approached the Revenue Department by way of representation dated November 03, 2020 (“the Representation”). But the Revenue Department didn’t consider the Representation with reference to Section 73(9) of the CGST Act and Rule 142(5) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) and hence the Petitioner filed petition.
The Hon’ble Madras High Court directed the Respondent, to consider the Representation submitted by the Petitioner and pass an order on merits and in accordance with law and by affording an opportunity to the Petitioner, as expeditiously as possible, preferably within a period of twelve weeks. Further, directed the Petitioner to cooperate with the Respondent for the early disposal of the application by submitting all relevant documents and evidence or the rulings relied upon.
...GSTN has implemented a new functionality on taxpayers’ dashboards with the following features: •The taxpayers can now see the exact Annual Aggregate Turnover (AATO) for the previous FY, instead of just the two slabs of Above or Upto Rs. 5 Cr. •The taxpayers can also see the Aggregate Turnover of the current FY based on the returns filed till date. •The taxpayers have also now been provided with the facility of turnover update in case taxpayers feel that the system calculated turnover displayed on their dashboard varies from the turnover as per their records. •This facility of turnover update shall be provided to all the GSTINs registered on a common PAN. All the changes by any of the GSTINs in their turnover shall be summed up for computation of Annual Aggregate Turnover for each of the GSTINs •The taxpayer can amend the turnover twice within a period of one month from the date of roll out of this functionality. Thereafter, the figures will be sent for review of the Jurisdictional Tax Officer who then can amend the values furnished by the taxpayer. Note: For details, the taxpayers may check out the ‘Advisory’ section of the aforementioned functionality on their respective dashboards.
Thanking You,
Team GSTN
...Commerce and industry minister Piyush Goyal on Saturday expressed confidence that India will continue to attract high foreign direct investment (FDIs) in the current financial year.
He said India has received highest ever FDI in the Covid-impacted 2020, in contrast with a shrinkage in investment inflows globally.
In 2020-21, FDI into the country grew by 19 percent to $59.63 billion. Total FDI, including equity, re-invested earnings and capital, rose 10 percent to $81.72 billion during 2020-21 as against $74.39 billion in 2019-20.
“This year, we are very confident that we will continue this streak of seven continuous years of historic highs in our foreign investments,” Goyal said at the CII-Horasis India Meeting webinar.
Similarly, he said, India’s exports too are recording healthy growth and would reach $400 billion by the end of the current financial year.
During July 1-21, export crossed $22 billion and it is “poised to cross $32-33 billion by end of the month (July), which means our run rate is on track to achieve $400 billion of exports target for the first time ever”.
Further, he said that currently India is in talks with 16 countries including the UK, the EU, Australia, Canada, and the UAE for trade agreements.
With some countries, India is working for early harvest agreements which will allow the country to quickly identify areas of mutual interest and progress negotiations faster towards a comprehensive economic partnership agreement, or FTAs, the minister said.
“We have focused our efforts on a few very promising agreements where I can clearly see huge comparative advantages for India to get market access and the ability to trade both in goods and services in a much bigger way. The UK, EU, Australia, Canada, UAE are countries with whom we can very quickly expand our discussions and engagements,” he added.
India has inked FTAs with several countries, including Japan, South Korea, Singapore, and ASEAN members.
Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them.
Talking about vaccination, he said the government had permitted the private sector to procure 25 percent of Covid-19 vaccines but they are not buying.
“CII should take a lead and get all of you to ensure that you take that 25 percent vaccines… Some industry group said we will do one crore vaccinations…Nobody has gone to Bihar, North East, Jharkhand to run campaigns to remove vaccine hesitancy,” he said.
...
1. Quality Control Orders (QCOs): Since the announcement of AatmaNirbhar Bharat campaign, Central Government through its various Ministries/Departments has notified 156 products under compulsory BIS certification through issuance of QCOs. As per these QCOs, the products specified therein shall conform to the requirements of relevant Indian Standards and bear a Standard Mark under a license from Bureau of Indian Standards.
2. Production-Linked Incentive (PLI) Scheme: To provide a major boost to manufacturing, Government has launched Production Linked Incentive (PLI) Scheme for 13 sectors with an outlay of Rs 1.97 lakh crore over the next five years.
3. Udyog Manthan: DPIIT in collaboration with D/o Commerce, QCI, NPC, Bureau of Indian Standards, Industry Chambers and line ministries conducted Udyog Manthan, a two- month long series of webinars comprising 46 sessions, focused on Quality and Productivity in all major sectors of manufacturing and services.
The steps taken by Government to uplift the startups and to promote ‘vocal for local’ campaign are as under:
i) Government of India has extended relaxations on prior experience, prior turnover and earnest money deposit as per the provisions of GFR to ease public procurement fromstartups.
ii) Government of India has taken up Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme (SISFS) to uplift the startups in the country . The objectives of Fund of Funds scheme include accelerating innovation driven entrepreneurship and business creation, mobilizing larger equity- like resources for startups. The SISFS aims to provide financial assistance to startups for proof of concept, prototype development, product trails, market entry and commercialization.
The steps taken by Government to help startups and other local manufacturers in using the e- Commerce and online platforms are as under:
This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Rajya Sabha today.
source:
...NACH services are available only on days when banks are working, but from August 1, this facility will be available on all 7 days.
RBI has changed the rules for NACH with effect from next month, which will enable the processing of payments such as salaries and pension even on weekends
Sometimes, the first day of the month falls on the weekend, because of which people have to wait till Monday, for their salary to be credited. But, from next month (1 August), people you will not have to wait for a working day to see the most awaited message, 'Salary of XXXX has been credited into your account XXX-XXXXXX-XX. The available balance is XXXX'.
All important banking transactions like salary, pension and EMI payments will happen 24X7 with effect from August 1, 2021. During the credit policy review of June, RBI Governor Shaktikanta Das had announced that in order to further enhance the convenience of customers, the National Automated Clearing House (NACH) will be available on all days of the week. The facility is currently available only when banks are open, usually between Monday to Friday.
“In order to further enhance customer convenience, and to leverage the 24x7 availability of real-time gross settlement (RTGS), NACH which is currently available on bank working days, is proposed to be made available on all days of the week effective from August 1, 2021," RBI Governor Shaktikanta Das had said while announcing the bi-monthly monetary policy review.
What is NACH?
The National Automated Clearing House (NACH) is a bulk payment system operated by the National Payments Corporation of India (NPCI) that facilitates one-to-many credit transfers such as payment of dividend, interest, salary and pension. It also facilitates the collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premiums.
RBI said that NACH has emerged as a popular and prominent digital mode of Direct Benefit Transfer (DBT) for beneficiaries, which helps in timely and transparent transfer of government subsidies during the prevailing COVID-19 pandemic. Currently, NACH services are available only on days when banks are working, but from August 1, this facility will be available on all 7 days.
source
...The CBIC vide Circular No. 17/2021-Customs dated July 23, 2021 abolished renewal of Licence/Registration in Customs Brokers Licensing Regulations, 2021 and Sea Cargo Manifest and Transhipment Regulations, 2018 to reduce the compliance burden for citizens and business activities.
The Government of India has been focussing its efforts to reduce compliance burden for citizens and business activities. With this endeavour, various procedures and requirements stated under various provisions in the Customs Act, 1962 are being revisited so that compliances under these laws can be simplified or dispensed with, in order to enhance ease of doing business and minimize regulatory compliances.
It is to mention that, CBIC has undertaken a series of next generation reforms under the umbrella of ‘Turant Customs’ initiative to enable Faceless, Paperless and Contactless clearance, leading to enhanced Ease of Doing Business.
One key area which imposes compliance is the necessity of seeking periodic renewal of the licenses/registrations issued under the Customs Act. As seen, the period of validity of licenses/registrations under the respective regulations is for a certain period after which such licenses/registrations are required to be renewed. Such renewals are legacy requirement, essentially a ground to review the compliance behaviour of the license holder/registration holder. However, the compliance behaviour is in any case can be confirmed transaction-wise. It can also be checked in a systemic manner by DGARM as already done in several cases. Also, the renewal exercise is an avoidable interface between the licensee and Customs officers, which is not in sync with the objective of our ‘Contactless Customs’ programme. Finally, it is indeed a burden on the licensee/registration holder to get it renewed every time. Thus, for all these reasons there is justification to dispense with the periodic renewals. The implication of this would be that the licenses/registrations once issued would be valid for lifetime.
As aforementioned, the need to reduce compliance burden justifies making the license ‘lifetime’ but in certain situations say, when the business is wound up, the licensee may wish to surrender the license/registration. Such applications for surrender of license/registration may be accepted once it is confirmed that the licensee/registration holder has paid all dues to the Central Government and no proceedings are pending against the licensee. This is especially needed when the license is valid in perpetuity. Also, it may so happen that the person is not active for a long time, which may be misused. Hence, provision for voluntary surrender of the license/registration as well as automatic invalidation of the Licence/Registration in case of inactivity for a long period (exceeding 1 year) becomes necessary to prevent misuse of licenses/registrations. However, there may arise situations where in a licensee/registration holder may not make any transactions for a long period due to genuine reasons such as lack of business. These situations are especially applicable in the current pandemic era. In such situations, it seems appropriate to empower the Principal Commissioner or Commissioner of Customs to renew a license/registration which has been invalidated due to inactivity. It is also clarified that there is no change in present procedure undertaken by the field formations to verify the eligibility of license holder for renewal may be continued.
Accordingly, The Board has decided to abolish renewals of Licence/Registration in Customs Brokers Licensing Regulations, 2021 and Sea Cargo Manifest and Transhipment Regulations, 2018 incorporating the following changes:
a. To provide lifetime validity of the licenses/registrations;
b. To enable provision for making the licenses/registrations invalid in case the licensee/registration holder is inactive for the period exceeding 1 year at a time;
c. To empower Principal Commissioner or Commissioner of Customs to renew a license/registration which has been invalidated due to inactivity; and
d. To provide for voluntary surrender of license/registration.
Considering the far implications of these measures, it has been decided that above changes will be reviewed after six months (i.e. January 2022) by the Board for its impact and bring changes, if necessary.
soruce:
...NPS scheme: Any Indian citizen aged between 18 and 70 years can enroll in this scheme.
NPS scheme: National Pension System (NPS) is a retirement-oriented investment option that provides a periodic annuity (in the form of monthly pension) and a lump sum corpus on the attainment of retirement age. NPS scheme is one of the ideal pension and retirement planning schemes available in India for salaried, self-employed professionals and freelancers like lawyers, doctors, chartered accountants, entrepreneurs, architects and others who work in their individual capacity wherein no employer is attached. Any Indian citizen aged between 18 and 70 years can enroll in this scheme.
Speaking on NPS scheme; Supratim Bandhopadhyay, Chairman, PFRDA (Pension Fund Regulatory Development Authority) said, "NPS perhaps offers a higher degree of flexibility to subscribers' like choice of a pension fund manager and asset allocation. An investor with a greater risk appetite can invest up to 75 per cent of its fund in equity. This scheme has a proven track of providing one of the best returns in the market along with tax deduction benefits of ?2 lakhs. It is a cost-efficient investment that ultimately benefits the subscribers."
1] Flexibility with comfort: NPS provides investor an option to contribute any amount anytime as per their convenience. There is no upper limit on how much one can invest.
2] Husband-wife duo can enroll: Self-employed couples who run their family business can open separate NPS accounts and avail the tax benefits in their individual capacity. This will facilitate higher corpus and pensions when they decide to stop working.
3] Employees loyalty booster: NPS can be extended by an employer to its employees to encourage loyalty for the enterprise they work with. Not only it will secure the future of employees but the employer can claim for such NPS contribution as business expenses under Section 36 (1) (IVa) of the Income Tax Act.
4] Avail/Maximise tax deductions benefit: NPS contributions made by self-employed professionals towards NPS can be claimed as deductions up to 20 per cent of their gross annual income for the purpose of taxation. Salaried NPS subscribers can also claim tax deduction against the NPS contribution made by employer under Section 80 CCD(2) and under Section 80CCD(1B) an exclusive tax deduction of ?50,00 is allowed for NPS investments.
5] Entrepreneurs can secure their future even when enterprise ceases to exist: Any business is a risky proposition and full of uncertainties. But one can secure one’s pension by contributing to NPS which would be separate from the enterprise as NPS is an 'individual pension account'.
...ndia has scored 90.32% in United Nation’s Economic and Social Commission for Asia Pacific's (UNESCAP) latest Global Survey on Digital and Sustainable Trade Facilitation. The Survey hails this as a remarkable jump from 78.49% in 2019. The survey result can be accessed at(https://www.untfsurvey.org/economy?id=IND).
After evaluation of 143 economies, the 2021 Survey has highlighted India's significant improvement in the scores on all 5 key indicators, as follows:
The Survey notes that India is the best performing country when compared to South and South West Asia region (63.12%) and Asia Pacific region (65.85%). The overall score of India has also been found to be greater than many OECD countries including France, UK, Canada, Norway, Finland etc. and the overall score is greater than the average score of EU. India has achieved a 100% score for the Transparency index and 66% in the “Women in trade” component.
CBIC, has been at forefront of path breaking reforms under the umbrella of 'Turant' Customs to usher in a Faceless, Paperless and Contactless Customs by way of a series of reforms. This has had a direct impact in terms of the improvement in the UNESCAP rankingson digital and sustainable trade facilitation.
Further, during the Covid19 pandemic, Customs formations have made all efforts to expedite Covid related imports such as Oxygen related equipments, life-saving medicines, vaccines etc.A dedicated single window COVID-19 24*7 helpdesk for EXIM trade was created on the CBIC website to facilitate quick resolution of issue(s) faced by importers.
About the Survey:
The Global Survey on Digital and Sustainable Trade Facilitation is conducted every two years by UNESCAP. The 2021 Survey includes an assessment of 58 trade facilitation measures covered by the WTO’s Trade Facilitation Agreement. The Survey is keenly awaited globally as it evidences whether or not the trade facilitation measures being taken have the desired impact and helps draw comparison amongst countries. A higher score for a country also helps businesses in their investment decisions.
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...Meeting of the CGETI was held from 12-14 July 2021.During the three daymeeting, the BRICS Members deliberated on the following proposalscirculated by India, for strengthening and increasing the Intra-BRICS cooperation and trade:
BRICS Members agreed to take forward India’s proposals to finalise them before the BRICS Trade Minister’s meeting to be held on 3 September 2021, to be chaired by Shri Piyush Goyal, the Commerce and Industry Minister.
To deepen and strengthen the trade and economy, following events proposed by India were also agreed by the BRICS Members:
Posted On: 20 JUL 2021 10:49AM by PIB Delhi
...From 2nd July, 2021, the Government has included Retail and Wholesale Trades as MSMEs.
The Government, vide notification no. S.O. 2119(E) dated 26.06.2020, had notified composite criteria of classification of MSMEs based on investment in plant and machinery or equipment and turnover of the enterprise. With the introduction of new classification of MSMEs w.e.f. 01.07.2020, a new cost - free system of online Udyam Registration which is based on self –declaration, has replaced the erstwhile filing of Udyog Aadhaar Memorandum.
Filing of Udyog Aadhaar Memorandum (UAM)/ Udyam Registration is required for availing benefits of the schemes and programmes of the Ministry of MSME.
The Government has launched the Credit Guarantee Scheme (CGS) to strengthen credit delivery system and facilitate the flow of credit to the MSE sector without the hassles of collateral and third party guarantee. Under the scheme, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans upto Rs. 200 lakh. As per the data received from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai, there are 53,86,739 Nos. of guarantee and Rs. 2,72,007.42 crore amount of guarantee approved under Credit Guarantee Scheme since inception.
To strengthen the Indian economy and to provide help to upcoming entrepreneurs, recently the Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country, especially in Covid-19 pandemic. Some of them are:
An Online Portal “Champions” has been launched on 01.06.2020 by Hon’ble Prime Minister. This covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.
RBI has also announced several measures to Reduce Financial Stress of MSMEs.
This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Lok Sabha today.
press release dated 22.07.2021
...The Government of India simplified the process of registration of MSMEs by replacing the Udyog Aadhaar Memorandum (UAM) with Udyam Registration (UR) on July 01, 2020. UR is free of cost, transparent, online, hassle free and is based on self-declaration. It does not require any documents and has an automatic integration with ITR and GSTIN. During the second wave of Covid -19 pandemic MSMEs continued to register on UR Portal.
MSMEs can avail the benefits of schemes such as Prime Minister Employment Generation Programme (PMEGP)/Rural Employment Generation Programme (REGP)/Micro Units Development & Refinance Agency (MUDRA) and the announcements made to provide relief to MSMEs from the problems faced due to COVID-19 pandemic. The number of Projects and Employment generation under PMEGP during 2020-21 as on July, 2021 are 91,054 and 7,28,432, respectively.
This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Rajya Sabha on July 19, 2021.
...
Electronic-way bill generation improved sequentially in July, signalling a continued recovery in economic activity and a likely improvement in goods and services tax (GST) collections in August, offering relief to policymakers.
Data issued by the GST Network on Monday showed that daily average e-way bills this month as of 18 July was at 1.97 million, an 8.5% rise from the full-monthly average for June. This is significant as it comes on the higher base of June, which saw a 37% sequential rise in e-way bills at 54.6 million.
The improvement in electronic permits raised for transportation of goods within and across states is expected to reflect in GST receipts of central and state governments in July and August.
The spurt in e-way bill generation in June is a sign of improved consumption during that month and better revenue collections in July.
The same trend seen so far in July implies a further growth in GST receipts in August.
From transactions in May, the Centre and states had collected ?92,849 crore of GST revenue in June, the first instance of GST receipts dropping below the ?1-trillion mark since last October.
The uptick in e-way bills seen in June and July underscore a rebound in economic activity.
sources
...Various measures taken by Ministry of Corporate Affairs (MCA) to fight COVID-19 pandemic
The Ministry of Corporate Affairs (MCA) primarily administers the provisions of the Companies Act, 2013 (the Act), the Limited Liability Partnership Act, 2008 and the Insolvency and Bankruptcy Code, 2016. This was stated by Minister of State for the Ministry of Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in the Rajya Sabha today.
The Minister enumerated various measures taken by the MCA to address the COVID-19 Pandemic are as under:
press realese can be reached from following link.
...The Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country. These schemes and programmes include Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).
Post Covid-19, Government has taken a number of initiatives under AatmaNirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 pandemic. Some of them are:
An online Portal “Champions” has been launched on June 01, 2020 by Hon’ble Prime Minister. This covers many aspects of e-governance including grievance redressal and handholding of MSMEs. Through the portal, total 35,361 grievances have been redressed upto July 12, 2021.
Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village Industries Commission (KVIC) to assess the impact of COVID-19 Pandemic on MSMEs including units set up under Prime Minister’s Employment Generation Programme (PMEGP).
The main findings of the online study conducted by NSIC to understand the operational capabilities and difficulties faced by the beneficiaries of NSIC schemes amid Covid-19 pandemic are as follows:
The findings of the study conducted by KVIC are as under:
This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Rajya Sabha on July 19, 2021.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1736787
...
As per the Income-tax Act, 1961, there is a requirement to furnish Form 15CA/15CB electronically. Presently, taxpayers upload the Form 15CA, along with the Chartered Accountant Certificate in Form 15CB, wherever applicable, on the e-filing portal, before submitting the copy to the authorized dealer for any foreign remittance. In view of the difficulties reported by taxpayers in electronic filing of Income Tax Forms 15CA/15CB on the portal www.incometax.gov.in, it had earlier been decided by CBDT that taxpayers could submit Forms 15CA/15CB in manual format to the authorised dealer till July 15, 2021. It has now been decided to extend the aforesaid date to August 15, 2021. In view thereof, taxpayers can now submit the said Forms in manual format to the authorized dealers till August 15, 2021. Authorized dealers are advised to accept such Forms till August 15, 2021 for the purpose of foreign remittances. A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the Document Identification Number.
...CBDT grants further relaxation in electronic filing of Income Tax Forms 15CA/15CB.
...Government announces inclusion of Retail and Wholesale trades as MSMEs.
Minister of MSME and Road Transport and Highways Shri Nitin Gadkari today announced revised guidelines for MSMEs with inclusion of Retail and Wholesale trades as MSMEs. In a Tweet he said under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. Shri Gadkari said the revised guidelines will benefit 2.5 Crore Retail and Wholesale Traders. He said Retail and wholesale trade were left out of the ambit of MSME, now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines.
With the revised guidelines the Retail and wholesale trades will be now be allowed to register on Udyam Registration Portal.
...Import-Export Code
In continuation to the DGFT notification No. 58, dated 12.02.2021, it is to inform that last date for modification/ updation of IEC has been extended up to 31.07.2021.
for Notification click on Link
...MCA Date extension
1. It has been decided to grant additional time upto 31st August, 2021 for filling of forms of Companies & LLPs due for filling during 1st April, 2021 to 31st July, 2021 other than charge forms without any additional fees.
Accordingly, the due dates of DPT-3 & Form CFSS is extended to 31st August, 2021.
2. In case of CHG – 1 & CHG – 9 the period from 01.04.2021 till 31.07.2021 shall not be reckoned for the purpose of counting the number of days under section 77 & 78 of the Act.
https://www.mca.gov.in/bin/dms/getdocument?mds=oNl%252BU4n7x%252FntbDPEaxYULQ%253D%253D&type=open
...
Ministry of Finance Government grants further extension in timelines of compliances
In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices. In order to ease the compliance burden of taxpayers during this difficult time, reliefs are being provided through Notifications nos. 74/2021 & 75/2021 dated 25th June, 2021 Circular no. 12/2021 dated 25th June, 2021.
These reliefs are:
1. Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for which the last date of filing under that section is 1st June, 2021 or thereafter, may be filed within the time provided in that section or by 31st August, 2021, whichever is later.
2. The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 31A of the Income-tax Rules,1962 (hereinafter referred to as “the Rules”), as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.
3. The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.
4. The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.
5. The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.
6. The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc., required to be made on or before 30th June, 2021, may be made on or before 31st August, 2021.
7. The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1st April, 2021 to 29th September, 2021 (both days inclusive), may be completed on or before 30th September, 2021.
8. The Quarterly Statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37 BB of the Rules, may be furnished on or before 31st July, 2021.
9. The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21, which is required to be filed on or before 30th June, 2021, may be furnished on or before 31st July, 2021.
10. The Annual Statement required to be furnished under sub-section (5) of section 9A of the Act by the eligible investment fund in Form No. 3CEK for the Financial Year 2020-21, which is required to be filed on or before 29th June, 2021, may be furnished on or before 31st July, 2021.
11. Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which is required to be uploaded on or before 15th July, 2021, may be uploaded by 31st August,2021.
12. Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission) under sub-section (1) of Section 245M of the Act in Form No. 34BB, which is required to behttps://taxguru.in/author/vashisht/ exercised on or before 27th June, 2021, may be exercised on or before 31st July, 2021.
13. Last date of linkage of Aadhaar with PAN under section 139AA of the Act, which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
14. Last date of payment of amount under Vivad se Vishwas(without additional amount) which was earlier extended to 30th June, 2021 is further extended to 31st August, 2021.
15. Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as 31st October, 2021.
16. Time Limit for passing assessment order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
17. Time Limit for passing penalty order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
18. Time Limit for processing Equalisation Levy returns which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Notification link: https://udyamregistration.gov.in/docs/227649.pdf
...MCA vide notification dated 15th June, 2021 further amended the Companies (Meetings of Board and its Powers) Rules, 2014 and makes rules, the Companies (Meetings of Board and its Powers) Amendment Rules, 2021.
This governing step of ministry ensures the businesses, to carry on their important matters to be dealt with the aid of technology and reduces the hurdles faced by an entity in a long way.
Through this amendment, rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 has been omitted which deals with restriction of conducting Board Meeting through Video Conferencing/Other Audio-Visual Means for selected agenda items.
In Rule 4 there are those matters not to be dealt with in a meeting through video conferencing or other audio-visual means-
(i) the approval of the annual financial statements;
(ii ) the approval of the Board’s report;
(iii) the approval of the prospectus;
(iv) the Audit Committee Meetings for consideration of financial statement including consolidated financial statement, if any, to be approved by the Board under sub-section (1) of Section 134 of the Act; and
(v) the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.
Due to the COVID pandemic, MCA granted relaxation for conduction meeting through VC till 30th June 2021, which now permanently allows virtual resolutions on matters referred in rule 4.
Boards of Directors can now approve annual financial statements, Board’s report, Prospectus and matters related to mergers, amalgamations, at meetings held through video conferencing and other audio-visual means. No physical presence of director is required more.
Link :
https://www.mca.gov.in/bin/dms/getdocument?mds=zwpAcIfQhKOgB8vwf%252FztbA%253D%253D&type=open
...UPDATE - Income Tax Department has issued Instructions for filing of Income Tax Returns containing 988 pages.
Instructions for filing ITR 1 (SAHAJ) are from Page 1-52 (Total 52 Pages), ITR 2 are from Page 53-177 (Total 125 Pages), ITR 3 are from Page 178-408 (Total 231 Pages), ITR 4 (SUGAM) are from Page 409-480 (Total 72 Pages), ITR 5 are from Page 481-676 (Total 196 Pages), ITR 6 are from Page 677-863 (Total 187 Pages) and ITR-7 are from Page 864-988 (Total Pages 125).
The instructions are mainly regarding (1) year for which particular form is applicable (2)eligibility for filing particular form (3) non eligibility for filing particular form (4) key changes in return form as compared to last year (5) manner of filing of form (6) manner of verification (7) Income tax provisions regarding liability to file return (
description of each field of return form and (9) validation rules (technical part)(for which return preparation softwares may take care).
CBDT issues Circular to extend various dates for compliances including due dates of filing ITR, Audit Reports for AY 2021-22, TDS and other Statements
The Major Relaxations in dates are as under:
- SFT for FY 2020-21 - 30th June 2021
- Statement of Reportable A/c for Calendar year 2020 - 30th June 2021
- TDS Return for 4th Quarter of FY 2020-21 - 30th June 2021
- Certificate of TDS to be issued by 15th June 2021 - 15th July 2021
- ITR for AY 2021-22 due by 31st July 2021 - 30th September 2021
- Tax Audit u/s 44AB for FY 2020-21 - 31st October 2021
- TP Report for FY 2020-21 - 30th November 2021
- ITR for AY 2021-22 due by 31st October 2021 - 30th November 2021
- ITR for AY 2021-22 due by 30th November 2021 - 31st December 2021
- Revised or Belated ITR for AY 2021-22 - 31st January 2022
...1. PM Gareeb Kalyan scheme worth ?1,70,000 crores
2. For doctors, paramedics, nurses and other health professionals- insurance cover ?50lakhs per person to be provided *Details of Yojana* *Part A: Pradhan Mantri Garib Kalyan anna yojana*
3. For 80 crore people, everyone will get additional 5 kg of rice/wheat more than existing 5kg given
4. Additional 1 kg of pulses of choice more than existing 1kg given *Part B: Direct Benefit Transfers* 1. *Farmers*: First installment of PM kisan yojana Annual Rs. 6000 given, shall be transferred immediately 2. *MGNREGA*: wage increase by another additional Rs. 2000 in the MGNREGA scheme 3. *Poor widows, old age and Disabled*: Ex gratia amount of ?1,000 p.m for next 3 months. 4. *Women having Jan Dhan Accounts*: Ex gratia amount of ?500 pm for next 3 months, benefit to 20 crore women.
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