Category: CA Chandrasekhar Kutty. B.Com, F.C.A.

After Gujarat HC, Bombay HC quashes the GST demand on assignment by sale and transfer of leasehold rights of the plot of land and building by original lessor to third party assignee; However, HC directs the Adjudicating Authority to issue a fresh order in the matter after considering the Gujarat HC judgment; In this case, the lessor had obtained leasehold land from MIDC and subsequently transferred the land and building to a third party.

GSTN advises taxpayers to file applications under waiver scheme as both Forms GST SPL 01 and GST SPL 02 are available on the portal; On eligibility regarding such cases where appeal applications (APL 01) is filed before March 21, 2023 (and not disposed of) as “withdrawal option is not available in GST portal” GSTN informs such taxpayers to submit their request for withdrawal of appeal applications to the concerned Appellate Authority; The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications from backend; Earlier GSTN had released step-by-step process to apply for GST Amnesty Scheme waiver of interest and penalty: GSTN Advisory 

DATENOTIFICATION NO.SUBJECT10/01/202501/2025Extension of date for filling of outward supplies in GSTR -1 for the month of December -2024 to 13th of January,2025. Extension of date for filling of outward supplies for the period October- December 2024 to 15th of January 2025 (Quarterly filers).10/01/202502/2025Extension of filling details in GSTR-3B for the month of December-2024 to 22nd January, 2025 and quarterly filling for the period October-December 2024 to 24th for Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep & 26 January 2025 for Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Vagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, Wes 3engal, Jharkhand or Odisha, the Union…

Jan 7th, 2025 The Central Government, on the recommendations of the 54th GST Council, had issued Notification No. 22/2024 – CT dated 08.10.2024 and notified that any registered person against whom any order confirming demand for wrong availment of ITC, on account of contravention of provisions of sub-section (4) of section 16 of the said Act had been issued, but where such ITC is now available as per the recently inserted sub-sections (5) and/or (6) of section 16 of the Act, would now be able to file an application for rectification of such demand orders. A functionality has now been made available on the Portal for taxpayers to file an application for rectification of such orders issued under section 73/74. They can file it, post login, by navigating Services > User Services >…

Circular No. 240/34/2024-GST dated 31.12.2024 Context This circular builds on Circular No. 167/23/2021-GST dated December 17, 2021. It addresses clarifications for ITC reversals related to services other than restaurant services supplied through ECOs under Section 9(5) of the CGST Act. Key Clarifications Applicability of Section 9(5): ECOs must pay tax under Section 9(5) of the CGST Act for specified services as if they are the suppliers. For other services, such as platform fees or commissions, they charge their users directly. ITC Utilization Rules: ITC can be availed for inputs and input services used for providing their own platform-related services. ITC cannot be utilized for paying tax liabilities under Section 9(5); such liabilities must be paid entirely in cash. ITC Reversal: ECOs are not required to reverse ITC proportionally for supplies…

Circular No. 243/37/2024-GST dated 31.12.2024 Key Issues Addressed: Classification of Transactions in Vouchers Vouchers may function as payment instruments creating obligations for suppliers to accept them as consideration for goods or services. Legal definitions of “goods,” “services,” and “vouchers” under the CGST Act are explained, establishing that: If recognized by RBI as pre-paid instruments, vouchers are categorized as “money,” excluded from goods or services. If not RBI-recognized, vouchers may be treated as actionable claims but still excluded from taxable supplies under Schedule III of the CGST Act. GST Treatment for Voucher Transactions by Distributors/Agents: Principal-to-Principal Basis: Pure trading of vouchers is not taxable as it is neither a supply of goods nor services. Agency Basis: Distributors or agents earning commission/fees for services provided (e.g., marketing or distribution) are liable to…

Circular No. 242/36/2024-GST dated 31.12.2024 The circular addresses issues arising from the incorrect determination of the place of supply for taxable online services provided to unregistered recipients. It aims to ensure compliance with Section 12(2)(b) of the Integrated Goods and Services Tax (IGST) Act, 2017, and Rule 46 of the Central Goods and Services Tax (CGST) Rules, 2017. Key Points Background Some suppliers incorrectly identify the location of the supplier as the place of supply instead of the recipient’s state, causing misallocation of tax revenues to incorrect states. This misinterpretation mainly affects online services provided directly or through electronic commerce operators Clarifications Provided Online Services Definition (Section 2(17), IGST Act): Includes services like advertising, cloud services, e-books, digital content, data storage, and online gaming (excluding money gaming). Place of Supply…

Circular No. 241/35/2024-GST dated 31.12.2024 Key Points: Context and Issue: Scenario: Automobile sector contracts between dealers and Original Equipment Manufacturers (OEMs) are often Ex-Works (EXW) contracts. Goods are considered delivered when handed over to the transporter at the OEM’s factory gate. Issue: Field formations questioned the eligibility of dealers to claim ITC before physically receiving goods at their business premises. Show cause notices were issued for alleged wrongful ITC claims Legal Background: Section 16(2)(b), CGST Act, 2017: A registered person can claim ITC only if goods or services have been “received.” Explanation in the Act: Goods are deemed “received” if delivered to the recipient or their agent (e.g., transporter) before or during movement, either through transfer of documents of title or otherwise. Clarifications Provided: No Physical Receipt Requirement: The Act…

Advisory for Waiver Scheme under Section 128A Dec 29th, 2024 1.  Taxpayer’s attention is invited to the advisory on the above subject issued by GSTN on 08.11.2024. The link for the said advisory is given here:https://services.gst.gov.in/services/advisoryandreleases/read/546 2.  Under the waiver scheme, for a demand notice or statement or order which has been issued under Section 73 for the tax periods between July 2017 & March 2020, the taxpayers are required to file an application either in FORM GST SPL-01 or SPL02 in GST portal accordingly. Presently, Form GST SPL 02 is made available in the GST portal. Form GST SPL 01 will be available soon in the GST portal. 3.  The process of filing SPL-02 electronically is detailed in below document:https://tutorial.gst.gov.in/downloads/news/help_document_on_filing_of_spl_02.pdf 4.  Difficulty if any faced by the taxpayers may be reported to https://selfservice.gstsystem.in by raising a…

Advisory on Updates to E-Way Bill and E-Invoice Systems Dec 17th, 2024 GSTN is pleased to announce that NIC will be rolling out updated versions of the E-Way Bill and E-Invoice Systems effective from 1st January 2025. These updates are aimed at enhancing the security of the portals, in line with best practices and government guidelines. 2. Multi-Factor Authentication (MFA): One of the key changes involves the implementation of Multi-Factor Authentication (MFA). Currently, MFA, which requires login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms), is mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs 100 Crores since 20th August 2023 and optional for those with AATO exceeding Rs 20 Crores since 11th September 2023. a) Starting 1st January 2025, MFA will become mandatory…

Key Recommendations and Decisions: Changes in GST Rates of Goods: Fortified Rice Kernel (FRK): GST rate reduced to 5%. Gene Therapy: GST fully exempted. LRSAM System: IGST exemption extended to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant for assembly/manufacture. Merchant Exporters: Compensation Cess rate reduced to 0.1% on supplies. IAEA Inspection Team: IGST exemption on imports of all equipment and consumable samples. Food Preparations: Concessional 5% GST rate extended on food inputs supplied for free distribution to economically weaker sections under a government program. Changes in GST Rates of Services: Sponsorship Services: Brought under Forward Charge Mechanism. Motor Vehicle Accident Fund: GST exempted on contributions made by general insurance companies from third-party motor vehicle premiums. Hotel Services: Definition of declared tariff omitted and linked with actual value…

CBIC notifies jurisdiction of Central Tax Officers effective from December 01, 2024; Inserts ‘Table V’ enlisting Commissioner/Principal Commissioner for passing an order or decision in respect of notices issued by the officers of Directorate General of Goods and Services Tax Intelligence for enforcement provisions under the GST Act viz. sections 67 (Power of inspection, search and seizure), 73 and 74( Demand and Recovery for fraud, non-fraud cases), 76 (Tax collected but not paid to Government), 122 (Penalty for certain offences), 125 and 127(General Penalty), 129 and 130 (Detention, seizure and release of goods and conveyances in transit) of CGST Act, 2017

To cover cos that evaded EPFO enrolment to avoid fin responsibility or defaulted on depositing employee contributionsThe Employees’ Provident Fund Organisation (EPFO) is readying an amnesty scheme for companies which have evaded enrolment with the retirement fund body to avoid additional financial responsibility or defaulted on depositing the contributions of their employees with it. The scheme could be launched along with the employment-linked incentive (ELI) schemes by the end of 2024, said people familiar with the development.The move would help attract enrolments under the ELI schemes, enhance formalisation of the workforce and ensure social security benefits to more workers, they said. Currently, establishments with at least 20 workers have to register with the EPFO to contribute towards provident fund, pension and insurance benefits for employees under the Employees’ Provident Fund…

There are taxpayers who claim ITC on their motor vehicles (cars and bikes) thinking if they buy in their business name, credit is available.Please bear in mind as per section 17(5) clause (a) motor vehicles for the transportation of passengers (cars & bikes) less than 13 seater including driver ITC will not be available unless if(a) you are a dealer of such motor vehicles or(b) you are in the business of transportation of passengers(c) you are a driving schoolAny motor vehicles used for transportation of passengers more than 13 seater, there is no restriction on claiming ITC.Goods Motor vehicle also there is no restriction on availing ITC.Very important, if the credit of motor vehicle is blocked as per above provisions, then all ITC on related expenses like repairs & maintenance,…

GSTN issues advisory on the non-generation of GSTR-2B for October 2024 and informs that:1 GSTR-2B will not be generated for the first and second months of a quarter for taxpayers who opted for Quarterly Returns with Monthly Payments (QRMP) Scheme;2 If the taxpayer hasn’t filed GSTR-3B for previous period, GSTR-2B will not be generated. Pending GSTR-3B need to be filed to generate GSTR-2B

GSTN, through its official X (formerly Twitter) handle informs that the GSTN team has identified the issue of taxpayers getting the same invoices in GSTR-2B  for the months of September and October 2024 and is working to resolve it in an exigent manner; Advises taxpayers to raise tickets at https://selfservice.gstsystem.in to help with their queries and urges them to share the ticket number through Direct Message only; Further informs that the rate-wise details of invoice/records will not be available in GSTR-2B generated through Invoice Management System (IMS), for which GSTR-2A shall be referred: GSTN Tweet

ADVISORY FOR WAIVER SCHEME UNDER SECTION 128ANov 8th, 2024For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025. In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated. 8th October 2024, effective from 1st November 2024. This rule provides procedural guidelines for the said waiver scheme. As…

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Advisory for Form GST DRC-03A It has been observed that some taxpayers have paid the demanded amount vide DRC 07/DRC 08/MOV 09/MOV 11/APL 04 through DRC-03 instead of using payment facility ‘Payment towards demand’ available on GST portal. This led to a situation where demand has been paid by the taxpayer, however the demand is not closed in the electronic liability register. To address this issue, the government has notified a new form named GST DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024. Accordingly, GSTN has developed the new Form GST DRC-03A on GST portal which is available now to adjust the paid amount through DRC-03 against the corresponding demand order. Therefore, it is advised to the taxpayers to use the DRC-03A form to link the…

With reference to the earlier advisory dated 13th September 2023, where a time limit of 30 days for reporting e-Invoices on IRP portals for taxpayers with an AATO of 100 crores and above was implemented, the threshold has now been lowered to cover taxpayers with an AATO of 10 crores and above. Therefore, from 1st April 2025, taxpayers with an AATO of 10 crores and above would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP portals. This restriction would apply to all document types (Invoices/Credit Notes/Debit Notes) for which an IRN is to be generated. For example, if an invoice is dated 1st April 2025, it cannot be reported after 30th April 2025. The validation built into the invoice registration portals…

Barring of GST Return on expiry of three yearsOct 29th, 2024 As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9.The said changes are going to be implemented in the GST portal from early next year (2025). Hence, the taxpayers are advised to reconcile their records and file…

CBIC issues a corrigendum clarifying that “any property” will read as “any immovable property” in the GST Notifications that brings commercial property renting by unregistered persons to a registered person under the Reverse Charge Mechanism; To that effect, the phrase “Service by way of renting of any property other than residential dwelling”, appearing in Notification No. 09/2024-CT (Rate), Notification No.  09/2024-Union Territory Tax (Rate), Notification No.  09/2024-Integrated Tax (Rate), all dated October 8, 2024, will read as “Service by way of renting of any immovable property other than residential dwelling”; Thus, aligns with  recommendations of 54th GST Council Meeting.

Dear Taxpayer, GSTN has introduced an update to facilitate the registration compliance for buyers of metal scrap through form GST REG-07. This update follows the new GST provisions for metal scrap buyers as outlined in the advisory issued on October 13. Taxpayers in this category are required to select "Others" in Part B of Table 2 under the "Constitution of Business" section. A text box will appear where the taxpayer must enter “Metal Scrap Dealers.” This entry is mandatory for those selecting the "Others" option. Once this is completed, the remaining details in form GST REG-07 should be filled and submitted on the common portal to meet the registration requirements as per Notification No. 25/2024 - Central Tax, dated October 9, 2024.Please click here for more details.Thanking You,Team GSTN

Dear Taxpayer,GSTN has implemented a validation process for cases where a taxpayer attempts a non-core amendment to update bank account details. Taxpayers are requested to follow the procedure outlined in the link provided below while adding bank account details on the portal.https://https://tutorial.gst.gov.in/downloads/news/fo_advisory_validate_bank_account_details.pdf.Thanking You,Team GSTN

Oct 17th, 20241.In order to assist taxpayers in filing their returns and minimizing human errors, GSTN has continuously improved the GST return filing process and in this endeavor the GST Portal now provides a pre-filled GSTR-3B form, where the tax liability is auto-populated from the declared supplies in GSTR-1/ GSTR-1A/ IFF, while the Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed system generated pdf of the auto populated GSTR-3B is also provided to all the taxpayers.2.Now, taxpayers also have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B. Additionally, to manage inward supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed actions of accept/reject/pending on inward…

The Circular No. 237/31/2024-GST dated 15.10.2024 addresses clarifications regarding the implementation of sub-sections (5) and (6) in section 16 of the Central Goods and Services Tax (CGST) Act, 2017. These provisions were inserted retrospectively, effective from July 1, 2017, to extend the time limit for availing input tax credit (ITC) under certain conditions.Key Provisions: Sub-sections (5) and (6) of Section 16 of CGST Act: Sub-section (5): Allows registered persons to avail input tax credit (ITC) retrospectively in respect of invoices or debit notes for the financial years 2017-18 to 2020-21, provided returns are filed up to November 30, 2021. Sub-section (6): Specifies that a person whose registration was canceled under section 29 and later revoked, may also claim ITC on relevant invoices or debit notes, subject to specific conditions. 2.…

The Circular No. 238/32/2024-GST issued on 15th October 2024 provides detailed clarifications related to Section 128A of the Central Goods and Services Tax (CGST) Act, 2017. This section was introduced based on the GST Council’s recommendations to address the waiver of interest, penalties, or both for certain demands under Section 73 of the CGST Act for the Financial Years 2017-18, 2018-19, and 2019-20. The waiver is subject to specific conditions and is aimed at easing compliance burdens for taxpayers.Key Provisions of Section 128A: Waiver of Interest or Penalty: The waiver applies to demands raised under Section 73 of the CGST Act for tax periods falling within FYs 2017-18, 2018-19, and 2019-20. Taxpayers can avail the waiver by making full payment of the demanded tax by 31st March 2025, or within…

Clarification on GST Regularization “As Is” or “As Is, Where Is Basis”Circular No. 236/30/2024-GSTF. No. CBIC-190354/149/2024-TO(TRU-II)-CBECDated: October 11, 2024Overview:This circular provides clarity on the scope and intent of the phrase “as is” or “as is, where is basis” used in various GST circulars based on the recommendations of the GST Council. The directive is issued to address confusion within field formations and among taxpayers regarding the regularization of GST payments and applicable rates.Key Clarifications:1. Background:Circulars were issued following recommendations by the GST Council to regularize GST payments made in the past, particularly in cases of genuine doubts where multiple GST rates or interpretations led to varying tax payments.2. Council Recommendations:In its 54th meeting (September 9, 2024), the GST Council advised issuing this clarification to explain the rationale behind regularizing past…

Circular No. 235/29/2024-GSTDate: 11th October 2024Issued by: Ministry of Finance, Government of IndiaKey Highlights Based on the 54th GST Council Meeting (9th September 2024)1. GST on Extruded/Expanded Savoury Food Products• Issue: There were disputes on whether savoury or salted extruded snack pellets should be classified as “Namkeens” under HS 2106.• Clarification:• 12% GST will apply to extruded or expanded savoury or salted products (excluding un-fried or un-cooked snack pellets) under HS 1905 90 30 from 10th October 2024.• 5% GST remains applicable on un-fried or un-cooked snack pellets manufactured through extrusion.• Prior to this date, an 18% GST applies to the past period.2. GST on Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways• Issue: Clarification needed on classification, whether under HS 8415 (28% GST) or HS 8607 (18%…

Summary: The Circular No. 234/28/2024-GST, dated October 11, 2024, provides clarifications regarding the applicability of GST on various services based on the recommendations of the GST Council from its 54th meeting. The key points covered include: 1. Affiliation Services for Colleges and Schools:Universities providing affiliation services to colleges will be subject to an 18% GST, as these services are not exempt under educational provisions. Affiliation services provided by educational boards to schools are also taxable, except for government schools, which have been exempted from October 10, 2024. Retroactive regularization of GST payment on such services from July 1, 2017, to June 17, 2021, has also been recommended.2. Flying Training Courses:DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) are exempt from GST, as they fall under the definition of…

S. NoChapter /Heading/Sub-Heading/Tariff ItemDescription of SupplySupplierRecipient872, 73, 74, 75, 76, 77, 78, 79, 80 or 81Metal ScrapAny unregistered personAny registered person

S. No.ServiceSupplierRecipientNotification ReferenceEffective Date5AARenting of residential dwellingAny unregistered personAny registered personNotification No. 05/2022-Central Tax (Rate)18.07.20225ABRenting of any property other than residential dwellingAny unregistered personAny registered personNotification No. 09/2024-Central Tax (Rate)10.10.2024 Note: Any renting of property whether residential or commercial if supplied from unregistered person will be liable for reverse charge.

Rule 164, introduced as an amendment to the Central Goods and Services Tax (CGST) Rules, 2017, defines the detailed procedure for closing proceedings related to tax demands under section 128A of the CGST Act. It focuses primarily on cases where taxpayers seek waivers of interest, penalties, or both for specific types of tax demands. Here’s a detailed breakdown:1. Application Process for Waivers:• Taxpayers eligible for waivers under section 128A can apply using specific forms:• FORM GST SPL-01 for cases involving notices or statements.• FORM GST SPL-02 for cases involving demand orders.• These forms must be submitted electronically on the GST portal, along with required documentation, such as the notice or statement details and evidence of payments made through FORM GST DRC-03.2. Eligibility and Conditions:• Waivers apply to interest, penalties, or…

CBIC issues Central Tax, Integrated Tax, and Union Territory Tax notifications to notify GST rate changes in respect of certain cancer medicines (5%), Namkeens and extruded/expanded savoury food products (12%), and car seats (28%) pursuant to recommendations of 54th GST Council Meeting; Also, notifies the introduction of reverse charge mechanism (RCM) on supply of metal scrap by unregistered to registered person; Clarifies that 18% GST will be levied on ‘un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion, extruded or expanded products, savoury or salted’; Apprises that these changes will be effective from October 10, 2024

Notification No. 23/2024 – Central Tax dated 08.10.2024 Issued By: Ministry of Finance (Central Board of Indirect Taxes and Customs) Subject: Reduction of the late fee for GSTR-7 under Section 128 of the Central GST Act, 2017. Key Details: The notification reduces the late fee for registered persons required to deduct tax at source under Section 51. It applies to those who failed to submit the GSTR-7 return from June 2021 onwards. The late fee is capped at INR 25 per day of delay, not exceeding INR 1,000. Additionally, if the return is delayed for a month with no tax deducted, the fee will be fully waived. The effective date for this reduction is November 1, 2024.

Notification No. 22/2024 – Central Tax dated 08.10.2024 Issued By: Ministry of Finance (Central Board of Indirect Taxes and Customs) Subject: Special procedure for rectification of orders under Section 148 of the Central GST Act, 2017. Key Details: This notification outlines a procedure for rectification of orders related to the wrong availment of input tax credit (ITC) due to a violation of sub-section (4) of Section 16. Taxpayers must apply for rectification electronically within six months from the issuance date of this notification if the ITC is now eligible under sub-sections (5) or (6) of Section 16. Along with application also need to upload Annexure A. The concerned officer will review the application and, if necessary, issue a rectified order within three months (as far as possible). Rectified order will…

Notification No. 21/2024 – Central Tax dated 08.10.2024 Issued By: Ministry of Finance (Central Board of Indirect Taxes and Customs) Subject: Procedure under Section 128A of the Central GST Act, 2017. Key Details: The Central Government, upon the Council’s recommendations, has notified a specific date by which registered taxpayers can pay the due taxes as per the notices or orders issued under Section 128A. The notification specifies that taxpayers who have received such notice or statement or order under section 73, can make payments of tax until March 31, 2025, for waiver of interest and penalty. For cases where notice has been issued under section 74(1) and an order is passed or is required to be passed by the proper officer in pursuance of the direction of the Appellate Authority…

Suresh Chand Meena v. Anti Corruption Bureau Faridabad - [2024] 167 taxmann.com 96 (Punjab & Haryana) The petitioner was a GST Inspector and a complaint was filed against the petitioner for demanding bribe. It was alleged that he had demanded Rs.10,000 from complainant for approving his GST registration. The complainant recorded the conversation and filed complaint with Anti-Corruption Bureau. The petitioner filed application for anticipatory bail before the High Court. The department opposed the bail and submitted that there was evidence of petitioner taking bribe money and then he slipped away by taking advantage of secret passage in premises and absence of proper lighting in said secret passage. The Honorable High Court noted that the complainant had made a complaint about demand of bribe by petitioner and he explicitly referred…

The judgment from the Supreme Court of India in the case of Union of India & Ors. vs. Rajeev Bansal and related appeals primarily deals with the reassessment procedure under the Income Tax Act and the interplay between three significant statutes: the Income Tax Act, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act (TOLA), and the Finance Act of 2021. Key Issues Addressed in the Judgment:   1.  Background of Reassessment Procedures:   •  The Income Tax Act provides for reassessment of income that has escaped assessment. Sections 147 to 151 of the Act, before their amendment in 2021, governed this process.   •  With the onset of COVID-19, TOLA was enacted to provide relaxation in timelines for various statutory compliances, including reassessment actions under the Income Tax Act.   2.  Impact of TOLA…

This case, M/s. Shriram Investments v. The Commissioner of Income Tax III, Chennai (2024 INSC 760), involves a tax dispute that reached the Supreme Court of India. The primary issue revolves around the appellant, Shriram Investments, and their filing of revised income tax returns, which were submitted after the deadline prescribed by the Income Tax Act, 1961. Key Events:   1.  Initial Returns: Shriram Investments filed its initial return for the assessment year 1989-90 on November 19, 1989. It later submitted a revised return on October 31, 1990.   2.  Subsequent Revised Returns: Another revised return was filed by the appellant on October 29, 1991. However, the assessing officer did not take this into account, prompting the appellant to appeal to the Commissioner of Income Tax (CIT), Appeals.   3.  Appeal Dismissed: The CIT (Appeals) dismissed…

GSTN noting feedback from the trade, restores GST returns for July 2017 and August 2017 despite archival of data a few days back; Informs that according to the new data archival policy announced through an Advisory dated September 24, 2024, the return data is archived after seven years every month, and pursuant to this, the return data of July and August 2017 was archived; However, considering difficulties faced by taxpayers, the data is temporarily restored; GSTN recommends taxpayers to download and save the data, as it will be archived again after prior notice

Amendments effective w.e.f. 27.09.2024 Amendment in section 31(3)(f) – Pertaining to generation of self-invoice in the case of RCM Insertion of new section 128A – Waiver of interest and penalty if notice is issued under section 73 and tax is paid (FY’s from 2017-18 to 2019-20). Insertion of new section 6A (IGST Act) - Power not to recover Goods and Services tax not levied or short-levied as a result of general practice. Amendment in section 20 (IGST Act) – Reduction in the appeal fees for Appellate Tribunal All other amendments effective w.e.f. 01.11.2024 mainly being: Section 16(5) – Availability of input tax credit if availed in the GSTR 3B returns for the financial years 2017-18 to 2020-21 before 30.11.2021 Section 16(6) – Availability to claim input tax credit in the…

Advisory on issuance of Notices/Orders without digital signatures of the issuing authorites. September 25th, 2024 Doubts have been created regarding the validity of documents issued by the tax officers on thecommon portal viz. Show cause Notices, Order of Assessment, Refund Orders etc. which are notcontaining the Digital signatures on the pdf. document downloaded from the common portal. In thiscontext, it is to be mentioned that such documents (i.e. SCN/Orders) are generated on the commonportal from the login of the officer, who logs in through Digital Signatures. Further, these documentsbeing computer generated on the command of the officer, may not require physical signatures of theofficer as these documents can be issued by the officer only after logging into the common portal usingDigital Signature. Thus, all these documents in JSON format containing…

Veremax Technologie Services Limited Vs The Assistant Commissioner Of Central Tax Karnataka HC quashes common show cause notice (SCN) which groups multiple AYs from 2017-18 to 2020-21, holds same as "fundamentally flawed"; Finds that, practice of issuing a single, consolidated SCN for multiple AYs " contravenes the provisions of the CGST Act and established legal precedents".

1. Key Provisions:  - Section 39 (11) of the CGST Act, 2017, restricts taxpayers from filing GST returns after three years from the due date.  - GST data on the portal will be available for a limited time—only up to seven years for taxpayer viewing.2. Data Archival:  - Archival of GST return data began on August 1, 2024, starting with returns filed for July 2017.  - The archival process will continue monthly, with each subsequent month's returns being archived. For instance, September 2017 data will be archived by October 1, 2024.3. Action for Taxpayers:  - Taxpayers are advised to download any required return data for future reference before the seven-year availability period expires.Issued by: GSTN Team on September 24, 2024.

Judicial Scrutiny on Notification Extensions under GST: M/S Barkataki Print and Media Services v. Union of India & Ors. Introduction: This case revolves around the legal challenges posed by M/S Barkataki Print and Media Services regarding the validity of two central government notifications, namely, Notification No. 9/2023-CT dated 31.03.2023 and Notification No. 56/2023-CT dated 28.12.2023, which extended the deadline for issuing orders under Section 73(10) of the Central Goods and Services Tax (CGST) Act, 2017. The petitioners argued that these notifications were ultra vires, i.e., beyond the powers conferred by the CGST Act and Assam Goods and Services Tax (SGST) Act. Core Legal Issues: Extension of Deadlines under Section 168A of CGST Act: The notifications challenged were issued under Section 168A, which allows the government to extend deadlines due to…

Sr No.QuestionReply1What is Invoice Management System (IMS)?Invoice Management System (IMS) is a facility in GST system, where the invoices/records saved/filed by the supplier in GSTR-1/1A/IFF, can be accepted, rejected or kept pending by recipients in order to correctly avail ITC.2How can I access IMS?IMS can be accessed using below path on GST Portal : Dashboard > Services > Returns > Invoice Management System (IMS) Dashboard.3When will IMS be made available to taxpayers?IMS will be launched on the GST Portal from 1st October 2024 and shall be available to the taxpayers for taking actions on the received invoices/records from 14th October 2024 onwards.4What all records will be available in IMS for taking an action?All the saved or filed original invoices/records and their amendments by suppliers through GSTR-1/1A/IFF will be available to…

Gauhati HC allows a batch of writ petitions challenging Notification No. 56/2023 extending time period for issuing demand orders for FY 2018-19 and FY 2019-20, holds the same as ultra vires Section 168A on the ground that the notification was issued without the recommendation of the Council as mandated by the Section; In open Court order, HC observes that, while the notification had false statement claiming that a recommendation was made and the recommendation served as its basis, the Circular issued on May 20, 2024, along with the stand taken in the affidavit, clearly indicates that no such recommendation existed prior to issuance of said Notification; Further, Court states that, notification was merely cleared by the implementation committee, which holds no relevance and that no recommendation was sought during the…

Notification No. 14/2022 – Central Tax: Issued on July 5, 2022, this notification introduced changes in Table 4 of Form GSTR-3B. These changes pertain to the availment and reversal of ITC, as well as the reporting of reclaimed and ineligible ITC. Reclaimable ITC that was earlier reversed in Table 4(B)2 can now be claimed in Table 4(A)5 upon fulfilling necessary conditions and must also be reported in Table 4D(1) 1. Electronic Credit Reversal and Re-claimed Statement: To aid taxpayers in accurate ITC reporting and to minimize clerical errors, a new ledger called the Electronic Credit Reversal and Re-claimed Statement was introduced on the GST portal. This ledger has been available since August 2023 for monthly taxpayers and from the July-September 2023 quarter for quarterly taxpayers. Taxpayers were given the opportunity…

In pursuance of the advisory w.r.t. launch of the new feature of Invoice Management System (IMS), GSTN has issued Draft Manual on IMS; GSTN shares a detailed step wise procedure with screenshots from the GST common portal to guide the taxpayers for using the facility; The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct ITC; Also issues Advisory in respect of facility provided to Taxpayers to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for “Electronic Credit Reversal and Re-claimed Statement”: GSTN draft_manual_ims.pdf (gst.gov.in)