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As per the new provisions, payment to MSME will be allowed as deduction for Income Tax purpose in the year in which payment is made, if the payment is made beyond due date.  As per the new provisions, payment to MSME will be allowed as deduction for Income Tax purpose in the year in which payment is made, if the payment is made beyond due date. Steps to be followed to check if you have to make payment by 31st March 2024. 1) Login into this portal and enter the Udhayam number of your supplier https://udyamregistration.gov.in/Udyam_Verify.aspx 2) After entering the udhaym number and submit, details of the enterprise will be displayed. Check in the Section 'Enterprise Type', if the Enterprise Type is Micro or Small. If yes, then this section…

The judgement delivered by the High Court of Judicature at Madras, presided over by Hon'ble Mr. Justice C. Saravanan, addressed the issue of cross-empowerment of tax authorities under the Central Goods and Services Tax Act 2017 (CGST Act) and Tamil Nadu Goods and Services Tax Act 2017 (TNGST Act). The court considered a batch of writ petitions challenging the jurisdiction of the Central and State tax authorities over taxpayers assigned to one but subjected to actions by the other. The court examined the recommendations of the GST Council, the constitutional amendments that enabled the GST regime, and the division of taxpayer base between the central and state governments to ensure a single interface under GST. The court noted the issuance of Circular No.1/2017-GST for the division of taxpayer base and…

Thai Mookambikaa Ladies Hostel vs. UOI heading 9963 and is taxable at 18% GST; Carves an important angle that “imposition of GST on the Hostel accommodation should be viewed from the perspective of the recipient of service and not from the perspective of service provider” and places relying upon judgement in Taghar Vasudeva Ambrish case; Observes that “‘hostel services' provided by the petitioners to the girl students and working women will squarely amount to the 'residential dwelling' and accordingly, the same will be squarely covered under the Entry No.12 of Exemption Notification No.12 of 2017”; Finds it evident that the expression ‘residence’ and ‘dwelling’ have more or less the connotation in common parlance and therefore, no different meaning can be assigned to the expression ‘residential dwelling’ and accordingly, the same does include hostel which…

CBDT, vide Order dt. Mar 18, 2024, orders that all the Income Tax Offices across India shall remain open on Mar 29 to 31, 2024; CBDT issues this order to facilitate completion of pending departmental work as FY 2023-24 closes on Mar 31, 2024, which is Sunday whereas Mar 30 and Mar 29 are Saturday and a closed holiday, respectively. 

SC 9-Judge Bench concludes hearing the submissions on behalf of private parties and PSUs in the 9 judge Constitutional Bench matter on the issue of nature of ‘royalty’ payable to State Government u/s 9 of Mines & Minerals (Regulation & Development) Act, 1957; Reference is made to 9-judge bench in view of conflict between 7-judge bench decision in the case of India Cement Ltd. and 5-judge bench decision in the case of Kesoram Industries Ltd.; The ongoing marathon hearing is about States’ power to tax mineral rights and other substantive issues pertaining to (i) power of State Legislature to levy tax on land under Entry 49 List II, (ii) meaning of taxation on mineral rights subject to limitations imposed by Parliament by law relating to mineral development under Entry 50 of List of Seventh Schedule, (iii) construction of expression “tax on land…

In the case of Anurag Garodia Calcutta HC deems as ‘a colorable exercise of power’ the manner in which Assistant Commissioner of State Tax (Revenue) passed final order u/s 73 “without granting extension to the petitioner either to file its response or to be offered personal hearing, despite the petitioner showing sufficient cause,”; Rules that once, the Assessee had sought for an extension to file reply to show cause notice (SCN) Revenue was obliged to consider such extension application and ought not to have passed the final order; Perusing SCN, HC observes that Revenue had granted liberty to the Assessee to file its response on/or before October 25, 2023, though personal hearing was offered only on October 10, 2023; Considers Assessee’s stance that immediately after reopening of the office of the Authority…

It is informed to all taxpayers that as per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new Table 14A and Table 15A have been introduced in GSTR-1 to capture the amendment details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 or liable to pay tax u/s 9(5) of the CGST Act, 2017. These tables have now been made live on the GST common portal and will be available in GSTR-1/IFF from February 2024 tax period onwards. These amendment tables are relevant for those taxpayers who have reported the supplies in Table 14 or Table 15 in earlier tax periods. Please click here to view the complete advisory on the captioned subject.Team GSTN

https://www.gst.gov.in/newsandupdates/read/626

Madras HC quashes assessment orders owing to ‘patent errors’ like (i) imposing GST at the rate of 36% instead of applicable rate of 18% (ii) non-consideration of variance in turnover for an entity operating in multiple States in India, as reflected in the financial statements, and the turnover attributable to its operations in Tamil Nadu; Accordingly, disposes of writ petition.

In the matter of Max Health Care Institute Ltd Delhi HC quashes order passed imposing demand u/s 73 of the CGST Act as unsustainable, holds that the Proper Officer has not applied his mind to the Assessee’s reply and didn’t consider it on merits; Thus, remands the matter for re-adjudication with a direction that hearing opportunity shall be granted and a fresh speaking order u/s 75(3) of the CGST Act shall be passed; As regards the Officer’s stance that reply to SCN was unsatisfactory, HC opines that the reply is a detailed reply and the Proper Officer had to at least consider the reply on merits and then form an opinion whether the reply was devoid of merits; Observes that if the Proper Officer was of the view that further details…

In the case of Hindustan Unilever Limited Rajasthan HC, in petitions challenging the workability of section 15(3)(b)(ii) of the CGST Act, 2017 due to the absence of a matching mechanism between a supplier's credit note and the reversal of ITC by recipient/customer, refuses to grant absolute stay of the entire demand raised against HUL and Tata Motors; Opines that while the provision may seem “a harsh provision” by requiring suppliers to provide evidence of ITC reversal by customers w.r.t post sales discount given by supplier, “.. it being a tax statute, one may not jump to the conclusion that the provision suffers from manifest arbitrariness”; Assessees argued that since the matching mechanism u/s 43 was omitted, they're burdened with an impossible task of producing statutory records of the recipient's electronic credit ledger for proof of reversal, making the current process manifestly arbitrary;…

Madras HC quashes assessment orders rejecting Input Tax Credit (ITC) of assessee entirely on the ground that the GSTR-3B returns did not reflect the ITC claim; Perusing the operative portion of assessment order, HC observes that when the registered person asserts that he is eligible for ITC by referring to GSTR-2A and GSTR-9 returns, the assessing officer should examine whether the ITC claim is valid by examining all relevant documents, including by calling upon the registered person to provide such documents; Thus, permits assessee to place all documents pertaining to its ITC claims before the assessing officer, directs assessing office to pass fresh assessment orders.

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Allahabad HC quashes the penalty imposed u/s 129(3) of the CGST Act for carrying e-invoice without the signatures of authorised signatory, underscores the statutory scheme that as per fifth proviso to Rule 46 of the CGST Rules, 2017 “the requirement of signatures is dispensed with as regards digital invoice”; Noting that not only the driver of vehicle carrying the goods was carrying e-invoice and e-way bill (EWB) in his mobile, but at the time of interception by Mobile Squads, the representative of assessee also reached and produced hard copies of same documents, and therefore, “there was no cause for detention, seizure or imposition of the penalty as has been done by the authorities in this case.”; Emphasizing on the responsibility of the Revenue to verify digital copies, the court notes…

Gujarat HC allows refund of IGST paid on ocean freight in light of Top Court’s dicta in case of Mohit Minerals which struck down the levy stemming from Notification No.10/2017 dated June 28, 2017 (IGST Reverse Charge Notification); In turn, allows refund to assessee basis principle of unjust enrichment and clarifies that when the IGST Reverse Charge Notification for levy of IGST on ocean freight is held to be unconstitutional, assessee/ importer is entitled to the refund of such IGST on ocean freight paid under protest; Citing ‘trite law’ that “once the Apex Court declares a Notification being ultra vires and unconstitutional, such law becomes the law of land and is liable to be followed by the respondent authorities without raising any objection.” observes that the Assistant Commissioner of CGST and Central Excise (Revenue)…

Madras HC quashes order cancelling GST registration of the Assessee (executing contract works for Government and its Agencies) on account of lapse by assessee’s accountant in filing returns on time; Harping on uneducated background of small enterpreneurs who are not accustomed with handling of e-mails, HC states that, “They are also not aware about the consequences of not paying the Returns in Time”; Suggests the Department to workout the possibilities of issuing these notices in the respective regional languages and also by SMS and registered post so that, the uneducated traders can also respond to these notices to some extent; Follows decision in Suguna Cutpiece Center.

Telangana HC rules that transfer of development rights (TDR) "is a service" under GST Law which the landowner is offering to Developer and that too for a consideration and thus, same is "not an outright sale" of an immovable property, dismisses realtor’s writ; For the core issue relating to TDR getting covered under Entry 5 of Schedule III of the CGST Act, 2017 which deals with sale of land being not exigible to GST, HC explains how it cannot be brought under the purview of Entry 5; Finding no quarrel to the fact that ownership, title and possession of the property is vested with the landowners and assessee is engaged as an agency by the landowners for the purpose of developing their property into a commercial complex, HC observes that, neither there is “mere transfer of development rights” nor is “automatic…

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GSTN issued Important advisory on payment through Credit Card (CC)/Debit Card (DC) and Unified Payments Interface (UPI)

Purpose: The purpose of this advisory is to make taxpayers aware of the new Table 14 and 15 in FORM GSTR-1 and IFF. These tables are relevant for only those taxpayers who either supply through E-Commerce operator (ECO) or are themselves liable to pay tax under Section 9(5) of the GST Act. Introduction: As per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new tables Table 14 and Table 15 were added in GSTR-1 to capture the details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 of the Act or liable to pay tax u/s 9(5). These tables have now been made live on the GST common portal. These two new tables will be available…

In the case of Kalyan Jewellers India Pvt Ltd Madras HC modifies AAAR by clarifying that ‘Gift Voucher’ is an ‘actionable claim’ which constitutes as neither a supply of goods nor supply of services specifically mentioned in Schedule III at sl. No. 6 and consequently, assessee is not liable to pay tax;  In turn, holds that ‘Gift Voucher/Cards’ is a ‘Prepaid Instrument’ which acknowledges debt and so becomes a “debt instrument” which in case of breach (i.e. failing to allow redemption)becomes enforceable at the hands of the customer  who has a “right to approach a civil court to recover the amount paid” in terms of RBI’s Master Circular; As for when can ‘Gift Vouchers’ be taxed, HC observes that if the ‘Gift Voucher/Card’ are issued for a specified and identified goods, or for a…

The following Functionalities are made available on the portal for the GTA Taxpayers. Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers: As per the Notification No. 06/2023-Central Tax (Rate), dated 26.07.2023 (https://taxinformation.cbic.gov.in/view-pdf/1009783/ENG/Notifications), the option by GTA to pay GST on Forward Charge mechanism or the Reverse Charge mechanism respectively on the services supplied by them during a Financial Year shall be exercised by making a declaration in Annexure V or Annexure VI from the 1 January of the current Financial Year till 31 March of the current Financial Year, for the next Financial Year. To comply with the above notification, online filing in Annexure V Form and Annexure VI Form is available on the portal for the existing GTA taxpayers for filing declaration in…

Last date to report the opening balance of Electronic Credit Reversal and Re-claimed Statement is extended till 31st January 2024 and the same can be amended 3 times up to 29th February 2024. Find below the advisory

CBIC extends time limit for issuance of Orders u/s 73(9) for recovery of tax not paid or short paid or of ITC wrongly availed or utilized for the FY 2018-19 to April 30, 2024 and FY 2019-20 to August 31, 2024 Note: Notice time limit is now extended for FY 2018-19 from Dec 31st 2023 to January 31st 2024 and for FY 2019-20 notice has to be issued before March 31st 2024.

The GSTN has introduced the much-awaited feature to file Annexure-V online on the GST Portal. This option is specifically designed for newly registered Goods Transport Agencies (GTAs) opting for Forward Charge. The new facility allows users to upload manual Annexure-V, which might have been submitted to the jurisdictional office before the commencement of the online filing option. If you are a GTA providing services and wish to pay tax under Forward Charge for the current financial year and beyond, filing your declaration Annexure V Form by January 28, 2024, is essential. By selecting “YES,” you will be directed to the Annexure V Form. If you are not involved in providing GTA services or prefer to pay tax under Reverse Charge, you can choose “NO.” It’s important to note that the…

SC dismisses Revenue’s SLP against  Calcutta HC decision which quashed demand of ITC against service recipient for mismatch in GSTR 2A and GSTR 3B in absence of any investigation done at the end of the supplier whose invoices are not reflecting in GSTR 2A; HC cited lack of exceptional case like missing dealer, closure of business by supplier or supplier not having adequate assets etc. and concluded that, straight away Revenue “was not justified” in directing the assessee to reverse the ITC availed by it. Order copy awaited

Judgment of the Hon’ble Supreme Court in the case of Northern Operating Systems Private Limited (NOS). Attention is invited to the Hon’ble Supreme Court’s judgment dated 19.5.2022 in the case of CC, CE & ST, Bangalore (Adj.) etc. Vs. Northern Operating Systems Private Limited (NOS) in Civil Appeal No. 2289-2293 of 2021 on the issue of nature of secondment of employees by overseas entities to Indian firms and its Service Tax implications. Representations have been received in the Board that, subsequent to the aforesaid judgment, many field formations have initiated proceedings for the alleged evasion of GST on the issue of secondment under section 74(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the ‘CGST Act’).  The matter has been examined by the Board. It…

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GSTN issues advisory for online compliance pertaining to ITC mismatch, explains that, a new functionality has been developed to generate automated intimation in Form GST DRC-01C which enables a taxpayer to explain the difference in ITC available in GSTR-2B statement & ITC claimed in GSTR-3B return online as directed by GST Council; Notifies that, the functionality compares the ITC declared in GSTR-3B/3BQ with ITC available in GSTR-2B/2BQ for each return period and if the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01C; On such intimation, the taxpayer shall file a response using Form DRC-01C and has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both…

CBIC in a relief to taxpayers, introduces amnesty scheme which allows appeal filing till January 31, 2024 for taxable persons who could not file an appeal against the order passed by the proper officer on or before March 31, 2023, u/s 73 or 74 of CGST Act within the time period specified in section 107; States that it shall also apply to the taxable persons whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in section 107 and prescribes special procedure for the same; Appeals to be filed in FORM GST APL-01 in accordance with subsection (1) of Section 107; Specifies that no appeal shall be filed under this notification, unless the appellant has paid…

Kerala HC rules on GST implementation challenges during initial stages faced by small dealers and consequently, sets aside order disallowing input tax credit (ITC) for GSTR 2A -3B mismatch; Discrepancies were noticed in assessee’s GSTR-3B and so considering the difference between GSTR-2A and 3B, Assessing Authority passed DRC-01 disallowing ITC as well as levied interest of Rs. 1 lakh approximately under CGST and SGST with penalty; Assessee contends that due to the initial period of the implementation of the GST regime, assessee and other small dealers were facing a lot of difficulty; Court concurs to this submission noting that “period involved is 2017-18 when the GST regime was rolled out…. petitioner faced enormous difficulty in understanding the provisions of the GST Act”; In this context, Court also notes that Government is not at a loss since tax has…

Amnesty scheme for filing appeals Amnesty scheme for taxable persons who could not file appeal under section 107 of CGST Act. Against demand order under section 73 or 74 of the CGST Act, 2017. Order should be passed before 31st March 2023 or Appeal against such order was rejected solely on the grounds that such appeal was not filed within specified period. Appeal in such cases to be filed before 31st January 2024 Pre-deposit of 12.5% of the disputed tax to be paid in that 2.5% should be paid through electronic cash ledger. Clarifications regarding taxability of personal guarantee offered by directors to banks. Circular to be issued clarifying that when no consideration is paid by the Company to the director in any form, directly or indirectly, for providing personal…

The CBIC has amended IGST Rate notifications in order to provide that IGST will not be levied on importer under RCM on supply of ocean freight services by foreign shipping line to foreign exporter. In this regard, three notifications have been issued and these notifications shall be effective from October 1st, 2023. Notably, these changes are incorporated to give effect to decision of Apex Court in case of Mohit Minerals since the Government has already amended place of supply provisions for services of transportation of goods by vessel.

In the matter of Muniyasamy Abinaya Tamil Nadu AAR transport services provided to students and staff of specific schools will not be subject to GST and consequently, the fees collected by service provider directly from parents for these services will also not be subject to GST; Applicant has sought advance ruling whether collection of transportation charges from parents will be taxed or exempted under GST, since only school students are picked up and dropped and school staff which will be covered in the agreement with school; In examining whether activity proposed to be undertaken by way of transport of staff and students of school as school bus operator, by school bus/ van service is applicable to GST or is exempted from GST and if GST applicable then what percentage is to be charged…

HC remarks, “tax authority should also act as a facilitator of business and economy and not merely as an extortionist, always looking to have the pound of flesh, to satisfy his hierarchical superiors to push his/her personal agendas. We have no doubt that the action complained of, was high handed and arbitrary”; Imposes a cost of Rs.5000 on the officer

PeriodDue dateFormDescriptionAugust 202310.09.2023GSTR 7Summary of Tax Deducted at Source (TDS) and deposited under GST lawsAugust 202310.09.2023GSTR 8Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators under GST lawsAugust 202311.09.2023GSTR 1GST Filing of returns by a registered person with aggregate turnover exceeding INR 5 Crores during the preceding financial year or any registered person have opted to file monthly returnAugust 202313.09.2023GSTR 1 / IFFDetails of B2B Supply of a registered person with turnover upto INR 5 Crores during the preceding year and who has opted for quarterly filing of return under QRMPAugust 202313.09.2023GSTR 6Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributors (ISD)August 202313.09.2023GSTR 5Summary of outward taxable supplies and tax payable by a non-resident taxable personAugust 202320.09.2023GSTR 5ASummary of outward taxable supplies…

The Goods and Services Tax Network (“GSTN”) has issued an Advisory on Reporting of ITC Reversal Opening Balance. Please read the following advisory carefully before proceeding ahead for reporting the ITC Reversal opening balance: Taxpayers are permitted to use this facility to report their ITC Reversal Balance that has not been re-claimed. The taxpayer is advised to report solely those reclaimable ITC reversal balances that meet the legal criteria for re-claim and have not been previously claimed by the taxpayers. Taxpayers may report their opening balance until 30th November 2023. After November 30, 2023, the option to report the opening balance will be removed, and it will be assumed that the taxpayer has no ITC Reversal Balance to report. Taxpayers may amend their opening balance until December 31, 2023. Any…

Patna HC upholds denial of ITC benefit to purchasing dealer (assessee) where the supplying/selling dealer has not paid up the amounts to the Government, despite collection of tax from the purchasing dealer; Referring to the case of Ecom Gill Coffee Trading Pvt Ltd, HC adds that, even if assessee produces not only the invoices but also account details and documents evidencing transportation of goods, “this does not absolve the assessee from the rigor provided under sub-clause (c) of Section 16(2)” and therefore, “unless the credit is available in the ledger account of the purchasing dealer ….” , ITC would not be available; Inviting attention to the nomenclature of ITC, HC explains that it itself contemplates a credit being available for the purchasing dealer in its credit ledger by way of payment of tax by the supplier to the Government; As a corrollary, envisages…

SC: Dismisses Revenue's SLP against HC order allowing release of cash seized during search SC dismisses Revenue’s SLP filed against Kerala High Court’s order directing the Department to release the cash seized during the search since, such cash does not form part of stock in trade or business Earlier the Kerala HC held that the seizure of cash from the premises of the Assessee at the time of investigation by GST authorities as wholly uncalled for and unwarranted, directs release of the same without any delay and at any rate within a week; Note that writ appeal was filed against the learned Single Judge’s order rejecting  the Assessee’s contention that the seizure of cash was unwarranted especially when the investigation itself was for alleged evasion of tax due; Determines that during the…

Delhi HC: Quashes communication placing debit freeze on bank account, ladles Revenue with cost Delhi HC sets-aside communication by Revenue officer of Anti-evasion group, to the extent that it seeks to place a debit freeze on assessee’s cash credit account; At the outset, Court observes “impugned communication is without authority of law…” reasoning that, same disregards provisions of CGST Act and its adverse effect; Citing well settled principle that, orders of provisional attachment of bank accounts or other assets of a tax payer has serious adverse effect on the business of the tax payer, as also SC dicta in Radha Krishan Industries.

Vide Notification no. 28/2023 dated 31st July 2023 Sub section 1B inserted in Section 122 of the CGST Act to levy penalty on the following: “(1B) Any electronic commerce operator who–– allows a supply of goods or services or both through it by an unregistered person other than a person exempted from registration by a notification issued under this Act to make such supply; allows an inter-State supply of goods or services or both through it by a person who is not eligible to make such inter-State supply; or fails to furnish the correct details in the statement to be furnished under sub-section (4) of section 52 of any outward supply of goods effected through it by a person exempted from obtaining registration under this Act, shall be liable to…