In an official advisory (No. 623) issued on 23rd January 2024, the Goods and Services Tax Network ( GSTN ) has emphasised the crucial requirement for registered taxpayers to furnish their bank account details under Rule 10A of the Central Goods and Services Tax Rules ( CGST ), 2017.
Under the provisions of the CGST Act, 2017, and the corresponding rules, all registered taxpayers are mandated to submit details of their bank accounts within 30 days from the date of registration or before the due filing date of GSTR-1/IFF, whichever occurs earlier.
To ensure compliance and prevent any disruptions in business activities, taxpayers who have not yet provided their bank account details are strongly advised to do so promptly, especially if the 30-day period is nearing expiration. Failure to comply may result in the suspension of GSTIN and subsequent debarment from filing GSTR-1/IFF.
To facilitate this process, a new functionality with specific features is currently under development and will be deployed in the near future.
KEY FEATURES
Cancellation of Registration: If the bank account details are not updated even after 30 days of issuance of FORM REG-31, the registration after suspension may also be taken up for cancellation process by the Officer.
On August 28, 2023, the Directorate General of Foreign Trade (DGFT) released notification number 28/2023, announcing the revised registration fee for the Steel Import Monitoring System (SIMS) with immediate effect.
Exercising the authority granted by Section 3 and Section 9 of the Foreign Trade (Development and Regulation) Act, 1992, in conjunction with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government made changes to Policy Condition No. 4(c) of Chapter 72, Policy Condition No. 3(c) of Chapter 73, and Policy Condition No. 3(c) of Chapter 86 within Schedule 1 – Import Policy – ITC(HS) 2022, with immediate effect:
Existing Policy Condition
The Steel Importing Monitoring System (SIMS) shall require importers to submit advance information in an online system for import of items and obtain an automatic Registration Number by paying registration fee of Rs. 1 per thousand subject to minimum of Rs. 500/ and maximum of Rs. 1 lakh on CIF value.
The importer can apply for registration not earlier than 60th day before the expected date of arrival of import consignment. The automatic Registration Number thus granted shall remain valid for a period of 75 days.
Revised Policy Condition
The Steel Importing Monitoring System (SIMS) shall require importers to submit advance information in an online system for the import of items and obtain an automatic Registration Number by paying the registration fee of Rs.500 /-. The importer can apply for registration not earlier than 60 days before the expected date of arrival of the import consignment. The automatic Registration Number thus granted shall remain valid for a period of 75 days.
Subscribe Taxscan Premium to view the JudgmentThe Goods and Services Tax Network (GSTN) issued an advisory for the GST registration applicants marked for the biometric aadhaar authentication on 28th August 2023.
According to the advisory issued, Rule 8 of Central Goods and Services Tax (CGST) Rules had been amended to provide that those applicants who had opted for authentication of their Aadhaar number and identified on the common portal, based on data analysis and risk parameters, shall be placed for biometric-based Aadhaar authentication and taking photograph(s) of the applicant.
The Pilot for implementation of the above change is ready and the functionality is ready for rollout by the GSTN portal. This functionality is being launched in Puducherry from 30th August 2023 in the pilot phase.
After the submission of the application in Form GST REG-01 and before the generation of the Application Reference Number (ARN), the applicant will either get the message for visiting GST Suvidha Kendra (GSK) or a link on the declared Mobile and Email ID; as may be applicable at TRN stage, based on identification by common portal so that registration process may be completed.
Those applicants who get the link on Mobile and email ID for Aadhaar Authentication can proceed to complete their application as per existing implementation. However, those applicants who get a message for visiting GSK will be required to visit the designated GSK as conveyed on Mobile/Email and get biometric authentication for all required persons as per the GST Application Form REG-01.
The applicants are requested to visit GSK before the TRN expiry date as detailed in the Email for the Biometric-based Aadhaar Authentication process. In this case, ARN will be generated only after the completion of the Biometric-based Aadhaar Authentication process. The days of operation of GSK would be as advised by the administration in your state. Also, the days of operation of GSK would be as advised by the administration in your state.
The Chairman of Central Board Direct Taxes (CBDT) Nitin Gupta unveiled the revamped user-friendly income tax website at ‘Chintan Shivir’ organized by the Directorate of Income Tax (Systems) at Udaipur. The redesigned website stands as another step towards improved taxpayer services, continuing its mission to educate taxpayers and streamline tax adherence.
With the aim of improving the taxpayer’s interaction and staying abreast of emerging technology, the Income Tax Department has redesigned its national website, www.incometaxindia.gov.in. This revamp includes a more user-friendly interface, additional features that offer value, and the incorporation of new modules.
The newly updated website acts as a thorough collection of tax and associated information. It grants entry to Direct Tax regulations, numerous supplementary legislations, regulations, Income Tax Circulars, and Notifications, all interlinked and easily accessible.
The platform includes a ‘Taxpayer Services Module’ that presents diverse tax utilities to aid individuals in submitting their income tax returns.
The new ‘Mega Menu’ in the website facilitates new features and functionalities. For the convenience of the visitors to the website, all these new additions are explained through a guided virtual tour and new button indicators.
The updated features enable users to contrast various Acts, Sections, Regulations, and Tax agreements. All pertinent content on the platform is now labeled with Income Tax sections for effortless browsing.
Moreover, the interactive due date alerts feature includes reverse countdowns, informative tooltips, and direct links to relevant portals, simplifying the compliance process for taxpayers.
The Enforcement Directorate (ED) has carried out a search at the workplace of P. Murali Mohana Rao, who is an auditor at M/s Brightcom Group Limited, under the provision of the Foreign Exchange Management Act (FEMA), 1999. ED seized 3.30 crore unaccounted cash and 9.30 crore worth jewellery and bullion.
Additionally, the Enforcement Directorate has carried out searches in different locations, which encompass the residences of the CEO and CFO of the company. The inquiry was instigated following an investigation by the Securities and Exchange Board of India (SEBI) into the devaluation of assets valued at 868.30 crore by Brightcom Group via its overseas subsidiaries.
ED uncovered that Brightcom utilized subsidiaries and intermediary entities to circularly channel funds, self-financing the preferential offerings. Brightcom also deceitfully asserted to have received complete payment for preferential shares/warrants, substantiating this with ‘counterfeit and contrived bank statements’ submitted to SEBI.
It was further disclosed that over three hundred crore rupees, which had been provided as loans to subsidiaries, were partially misappropriated or lacked proper records. The company’s statutory auditors, namely M/s P Murali & Co. and M/s PCN & Associates (an affiliated entity of P Murali & Co.), not only neglected to report clear-cut fraud but also collaborated with the company’s management and promoters. Following the search operation, the Enforcement Directorate secured the premises belonging to Auditor Murali. The investigation is ongoing.
The Central Board of Direct Taxes (CBDT) has issued a circular with guidelines for the removal of difficulties under sub-section (3) of section 194BA of the Income Tax Act, 1961, for much-needed clarity in the matter of income tax on online gaming.
Finance Act, 2023 had inserted a new Section 194BA in the Income Tax Act, 1961 with effect from 1st April 2023.
The new section mandates a person, who is responsible for paying to any person any income by way of winnings from any online game during the financial year to deduct income tax on the net winnings in the person’s user account.
Tax is required to be deducted at the time of withdrawal as well as at the end of the financial year. Net winning is required to be computed in the manner as may be prescribed. The manner of computation of net winning has now been prescribed in Rule 133 of the Income-tax Rules 1962, vide notification no. 28/2023 dated 22nd May 2023.
Sub-section (3) of Section 194BA of the Income Tax Act authorises Central Board of Direct Taxes (CBDT) to issue guidelines, for the purposes of removal of difficulties with the previous approval of the Central Government.
These guidelines are required to be laid before each House of Parliament and are binding on the income-tax authorities and the person liable to deduct income-tax. Accordingly, in exercise of the power conferred by sub-section (3) of section 194BA of the Income Tax Act, CBDT issued the following guidelines:
1. There are multiple wallets under one user. How “net winnings” is to be computed with respect to multiple wallets of one user –
Answer: It has been clarified in the Rule 133 that user account shall include every account of user, by whatever name called, which is registered with online gaming intermediary and where any taxable deposit, non-taxable deposit or the winning of the user is credited and withdrawal by the user is debited.
Thus each wallet which qualifies as user account shall be considered as user account for the
purposes of computing net winnings. It has further been clarified in the Rule 133 that whenever there are multiple user accounts of the same user, each user account shall be considered for the purposes of calculating net winnings. The deposit, withdrawal or balance in the user account shall mean aggregate of deposits, withdrawals or balances in all user accounts.
For illustration, a user has multiple user accounts under one deductor (one TAN).
For the purposes of calculating tax required to be deducted under section 194BA of the Income Tax Act, each of these user accounts is to be considered. Deposit in any of these user accounts would be considered as deposit (non-taxable or taxable as per the definition in Rule 133 and withdrawal from any user accounts would be considered as withdrawal.
Let us suppose that there is first withdrawal from any of these user accounts. Net winnings for the purposes of calculating tax required to be deducted under Section 194BA shall be calculated as under Net winnings =A-(B+C), where
A = Amount withdrawn from the user account;
B = Aggregate amount of non-taxable deposit made in the user account by the owner of such account during the financial year, till the time of such withdrawal; and
C = Opening balance of the user account at the beginning of the financial year.
Here for the purposes of calculating amount B, the non-taxable deposits in all of the user accounts under that deductor (one TAN) is to be aggregated. Same would apply for calculating all other amount for calculation under Rule 133.
However, if the one deductor (one TAN) is having multiple platforms and it is not technologically feasible for him to integrate multiple user accounts across platforms then he may, at his option, calculate tax required to be deducted for the purposes of Section 194BA of the Act for each platform separately. But even in that case all the user accounts under one user in one platform need to be considered for the purposes of calculating net winnings in the formulas provided in Rule 133.
It may also be noted that Rule 133 has also clarified that transfer from one user account to another user account, maintained with the same online gaming intermediary, of the same user shall not be considered as withdrawal or deposit, as the case may be. However, if the deductor is deducting tax under Section 194BA of the Income Tax Act for each platform separately, as discussed in the immediately preceding paragraph, transfer from one user account to another user account under same online gaming intermediary across platforms shall be considered as withdrawal or deposit for the purposes of calculation of net winnings under Rule 133.
2. If a user borrows some money and deposits in his user account, will it be considered taxable deposit or non-taxable deposit?
Answer: For non-taxable deposit it is necessary that the amount deposited by the user is not taxable i.e. it is from already taxed income or it is not chargeable to tax. In a case where user borrows the money and deposit in his user account, it shall be considered as non-taxable deposit.
3. How will bonus, referral bonus, incentives etc. be treated?
Answer: Bonus, referral bonus, incentives etc are given by the online game intermediary to the user. They are to be considered as taxable deposit under Rule 133. The taxable deposit will increase the balance in user account and is not allowed to be deducted in calculation of net winnings as only non-taxable deposits are allowed to be deducted. Thus any deposit in the form of bonus, referral bonus, incentives etc would form part of net winnings and tax under Section 194BA of the Income Tax Act is liable to be deducted at the time of withdrawal as well as at the end of the financial year.
Some deposit could be money equivalent too like coins, coupons, vouchers, counters etc. In such a situation the equivalence in money of such deposit shall be considered as taxable deposit and would accordingly form part of balance in user account.
However, it is seen that there is some incentives/bonus which is credited in user account only for the purposes of playing and they cannot be withdrawn or used for any other purposes. Rule 133 has provided that such deposit shall be ignored for calculation of net winnings. Thus they shall not be included in non-taxable deposit and they shall also not be included in opening balance or closing balance of user account. Thus, to the extent they will not be part of net winnings. However, person liable to deduct tax under section 194BA of the Act must keep separate accounts of such deposits.
Further, if and when these incentive / bonus are recharacterised and they are allowed to be withdrawn, they would be treated as taxable deposit at the time when they are recharacterised. Thus, they will become part of net winnings in the year of recharacterisation.
4. At what point we consider that amount has been withdrawn?
Answer: As stated earlier, it has also been clarified in the Rule 133 that transfer from one user account to another user account, maintained with the same online gaming intermediary, of the same user shall not be considered as withdrawal or deposit, as the case may be. However, when the amount is withdrawn from the user account to any other account, it shall be considered as withdrawal. With respect to deductor, any account of user which is not registered with the online game intermediary (for which he is a deductor) is an account which is not a user account and any transfer from user account to such account is a withdrawal.
When in consideration of amount in user account, some coupons etc are issued for purchase of goods or services, or some item in kind is issued, that will also be considered as withdrawal. It is the duty of the person who is required to deduct tax at source under section 194BA of the Act to ensure that the tax, as required to be deducted, is deducted at source under Section 194BA, before issuing such coupons or items in kind .
The clarification provided in answer to Question no 1 is also needed to be kept in mind. It has been clarified that if the deductor is deducting tax under section 194BA of the Income Tax Act for each platform separately, transfer from one user account to another ser account under same online gaming intermediary across platform shall be considered as withdrawal or deposit for the purposes of calculation of net winnings under Rule 133.
5. There are a large number of gamers who play with very insignificant amount and withdraw also very small amount. Deducting tax at source under section 194BA of the Act for each insignificant withdrawal would increase compliance for tax deductor. Can there be relaxation to ease compliance?
Answer: In order to remove difficulty in deducting tax at source under Section 194BA of the Income Tax Act for insignificant withdrawal, it is clarified that tax may not be deducted on withdrawal on satisfaction of all of the following conditions, namely:-
(i) net winnings comprised in the amount withdrawn does not exceed Rs 100 in a month;
(ii)tax not deducted on account of this concession is deducted at a time when the net winnings comprised in withdrawal exceeds Rs 100 in the same month or subsequent month or if there is no such withdrawal, at the end of the financial year; and
(iii) the deductor undertakes responsibility of paying the difference if the balance in the user account at the time of tax deduction under section 194BA of the Income Tax Act is not sufficient to discharge the tax deduction liability calculated in accordance with Rule 133.
6. When the net winnings is in kind how will tax deduction under section 194BA operate?
Answer: At the outset, it may be clarified that where money in user account is used to buy an item in kind and given to user then it is net winnings in cash only and the deductor is required to deduct tax at source under section 194BA of the Income Tax Act accordingly.
However, there could be a situation where the winning of the game is a prize in kind. In that situation provision of sub-section (2) of section 194BA of the Act will operate.
According to this where the net winnings are wholly in kind or partly in cash, and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of the net winnings. In these situations, the person responsible for paying, shall, before releasing the winnings, ensure that tax has been paid in respect of the net winnings. In the above situation, the deductor will release the net winnings in kind after the deductee provides proof of payment of such tax (e.g. Challan details etc.). This year Form 26Q also has included provisions for reporting such transactions under section 194BA of the Act (vide Notification no. 28/2023 dated 22nd May 2023).
In the alternative, as an option to remove difficulty if any, the deductor may deduct the tax under section 194BA of the Act and pay to the Government. In the Form 26Q the deductor will need to show this as tax deducted by him on net winning under Section 194BA of the Income Tax Act, 1961.
7. How will the valuation of winnings in kind required to be carried out?
Answer: The valuation would be based on fair market value of the winnings in kind except in following cases:-
(i) The online game intermediary has purchased the winnings before providing it to the user. In that case the purchase price shall be the value for winnings.
(ii) The online game intermediary manufactures such items given as winnings. In that case, the price that it charges to its customers for such items shall be the value for such winnings.
It is further clarified that GST will not be included for the purposes of valuation of winnings for TDS under section 194BA of the Act.
8. These guidelines have been issued after 1.4.2023 while the law has come into effect from 1.4.2023. Will there be any relaxation on penal consequences in the intervening period i.e. between 1.4.2023 and the date on which the Rules I guidelines are issued? Answer: Taxpayers were expected to deduct tax at source under Section 194BA even before issuance of the Rule 133 or this guidance. It is expected that they have carried out that responsibility. However, if there is a shortfall in deduction of tax due to time lag in issuance of Rule 133 or this Circular, for the month of April, 2023 that shortfall may be deposited with the tax deduction for the month of May 2023 by 7th June 2023. In that case there will not be any penal consequences.
Subscribe Taxscan Premium to view the JudgmentThe Bombay High Court, on Tuesday, upheld the levy of IGST on liability on service provided by intermediaries to persons located abroad under section 13(8)(b) of the Integrated Goods and Services Tax Act, 2017. Justice G. S. Kulkarni was considering a bunch of petitions where the petitioners challenged the constitutional validity of the provisions of…
A two-judge bench of the Delhi High Court has held that the central excise department can continue the proceedings for adjudication of the impugned show cause notice, after the lapse of almost thirteen years. Justice Vibhu Bakhru and Justice Amit Mahajan were hearing a petition filed by Mr. Nanu Ram Goyal claiming that such proceedings…
The Union Finance Minister Nirmala Sitaraman chaired the 49th meeting of the GST Council today, at Vigyan Bhawan, New Delhi. The Key Highlights from the Council Meeting, include a clarification on the Goods and Services Tax levy on Services provided by courts.
Reverse charge is applicable on certain activities of courts/tribunals, the GST Council noted. However, it was clarified that only the activities of commercial nature rendered by the Registries of Courts and Tribunals, such as renting out of premises will attract GST under Reverse Charge Mechanism.
The Council clarified that “It has been decided to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.”
The Reverse Charge Mechanism (RCM) is a concept under the Goods and Services Tax (GST) system in India where the recipient of the goods or services is liable to pay the tax to the government instead of the supplier. In other words, under RCM, the burden of paying the tax shifts from the supplier to the recipient.
Section 9(3) of the Central Goods and Services Tax (CGST) Act, 2017: This section provides that the government may notify certain supplies of goods or services or both, on which the tax is payable on reverse charge basis by the recipient of such goods or services.
Section 5(3) and 7(3) of the Integrated Goods and Services Tax (IGST) Act, 2017: These sections provide that the tax on the supply of goods or services or both, under the reverse charge mechanism, shall be paid by the recipient of such goods or services. In the matter of Goods and Services Tax Levy on Courts, the 49th Goods and Services Tax Council meeting has clarified that the levy of tax is applicable only for services of commercial nature, such as renting out of court premises by the Registry of Courts and Tribunals.
The Union Finance Minister Nirmala Sithraman is set to present the Union Budget 2023 today.
As the aspiring Chartered Accountants are awaiting for the results of the CA exam conducted in November 2022, sources said that the Institute of Chartered Accountants of India ( ICAI ) may announce the same on 10th January 2023.
A few days ago, the ICAI has confirmed that it may announce the results of CA Exams Final, Intermediate & PQC Examinations – November 2022 on any dates starting from 10th January to 16th January 2023.
In pursuance of Regulation 22 of the Chartered Accountants Regulations, 1988, the Council of the Institute of Chartered Accountants of India has conducted the Chartered Accountants Intermediate and Final Examinations from November 2nd to 16th.
Ahead of the CA exam in November, the ICAI had invited the observations of the candidates on the question papers of CA examinations – November 2022.
Reports stated that as per reports, the ICAI is expected to announce Chartered Accountancy (CA) Inter and Final results, November 2022, between January 10 and 15. Central Council Member Dhiraj Khandelwal shared this information on Twitter.
Once announced, students can check ICAI CA Inter and Final results on icai.org or icaiexam.icai.org. As per past trends, candidates will have to download their results using registration number and PIN number. The institute may also make arrangements for candidates to get their results via SMS or email. ICAI conducted CA Final examinations from November 1 to November 16, 2022. CA Intermediate exams were held from November 2 to 17 in offline mode. Along with results, the institute is also expected to announce names of course-wise all-India toppers.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
The GST portal has issued an advisory as the Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for furnishing FORM GSTR1 for November 2022 for registered persons whose principal place of business is in certain districts of Tamil Nadu.
The Government vide Notification No.25/2022- Central Tax dated 13th December, 2022 has extended the due date for furnishing of Form GSTR-1 for November, 2022 for registered persons whose principal place of business is in the districts of Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Tiruvannamalai, Ranipet, Vellore, Villupuram, Cuddalore, Thiruvarur, Nagapattinam, Mayiladuthurai and Thanjavur in the State of Tamil Nadu.
“Thus, the due date for the said 10 districts of the State of Tamil Nadu is extended from 11th to 13th of December. Since, the Notification for extension has been issued yesterday after the expiry of normal period of filing, i.e., 11th of December, 2022, the credit of invoices covered in the returns pertaining to GSTINs of aforesaid districts, filed during 12th to 13th December, 2022 will not be populated in GSTR-2B generated for December, 2022. Thus, the taxpayers are advised to take the Input Tax Credit (ITC) in respect of suppliers of the aforesaid districts on the basis of GSTR-2A“, the GST Portal said.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates.
The Institute of Chartered Accountants of India ( ICAI ) has announced the schedule for Information System Audit – Assessment Test ( ISA-AT) in December 2022.
The ICAI has said that the next Information Systems Audit (ISA) Course Assessment Test (Old as well as New Syllabus) which is open to the members of the Institute will be held on 24th December 2022 (Saturday) from 9 AM to 1 PM (IST) at the following cities provided that the sufficient number of candidates offers themselves to appear therefrom.
The ICAI also said that, The Council reserves the right to withdraw any center at any stage without assigning any reason. The above Test is open only to the Members of the Institute who are already registered with the Institute for the ISA course and fulfill the eligibility criterion laid down. The fee payable for the above Assessment Test is ₹ 2000/-. An application for admission to the Information Systems Audit (ISA) Course – Assessment Test is required to be made online at isaat.icaiexam.icai.org from 28th November 2022 to 6th December 2022 and remit the examination fee of ₹ 2000/- online by using VISA or MASTER or MAESTRO Credit / Debit Card / Rupay Card / Net Banking / Bhim UPI.
For the Full Text of the Notification Click here.
A division bench of the Supreme Court headed by Chief Justice Uday Umesh Lalit has delivered a significant ruling against State Bank of India (SBI), that TDS shall be levied on the leave travel allowance for the foreign travel of employees as the Leave Travel Concession ( LTC ) is allowed for the travel within the country only.
The appellant, SBI, a Public Sector Bank, approached the action against the Revenue treating the appellant to be an “assessee in default”, for not deducting the tax at the source of its employees.
A bench of Chief Justice Uday Umesh Lalit, Justice S. Ravindra Bhat, and Justice Sudhanshu Dhulia observed that the provisions of law prescribe that the airfare between the two points, within India, will be given and the LTC which will be given will be of the shortest route between these two places, which have to be within India.
“A conjoint reading of the provisions discussed herein with the facts of this case cannot sustain the argument of the appellant that the travel of its employees was within India and no payments were made for any foreign leg involved,” the Supreme Court held.
Rejecting the arguments raised by the SBI, the Court observed that “We do not want to get into the role of the travel agencies and the present dynamics of airfare, but it is difficult for us to accept that a person will avail foreign tour without paying any price for it. We leave it at that.”
Overruling a contention of SBI that the payments made to these employees were of the shortest route of their actual travel, the Court held that “It has already been clarified above, that in view of the provisions of the Act, the moment employees undertake travel with a foreign leg, it is not a travel within India and hence not covered under the provisions of Section 10(5) of the Income Tax Act.”
Upholding the proceedings against SBI, the Supreme Court held that “The aforementioned order passed by the CIT(A) has rightly held that the obligation of deducting tax is distinct from payment of tax. The appellant cannot claim ignorance about the travel plans of its employees as during the settlement of LTC Bills the complete facts are available before the assessee about the details of their employees’ travels. Therefore, it cannot be a case of bonafide mistake, as all the relevant facts were before the Assessee employer and he was therefore fully in a position to calculate the ‘estimated income’ of its employees. The contention of Shri K.V. Vishwanathan, learned senior advocate that there may be a bonafide mistake by the assessee-employer in calculating the ‘estimated income’ cannot be accepted since all the relevant documents and material were before the assessee-employer at the relevant time and the assessee employer, therefore, ought to have applied his mind and TDS as it was his statutory duty, under Section 192(1) of the Act.”
Subscribe Taxscan Premium to view the JudgmentThe GST Common Portal is not allowing the taxpayers to open GSTR-3B of October, if GSTR-1 for the same tax period i.e. October has not been filed.
Amended section 39(10) restricts the filing of GSTR-3B for the current tax period if any of the GSTR-1 for the previous period including the current period has not been furnished by the taxpayer.
The Central Government has amended Section 37 & Section 39 of the Central Goods & Service Tax Act (CGST), 2017 vide Notification No. 18/2022–Central Tax dated 28th September 2022 with effect from 01 October, 2022.
According to section 37(4) of the CGST, Act, a taxpayer shall not be allowed to file GSTR-1 if a previous GSTR-1 is not filed and as per sec 39(10) a taxpayer shall not be allowed to file GSTR-3B if GSTR-1 for the same tax period is not filed.
Section 37(4) of Central Goods & Service Tax Act, 2017, a registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period if the details of outward supplies for any of the previous tax periods has not been furnished by him. As per Section 39(10), the registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods or the details of outward supplies under sub-section (1) of section 37 for the said tax period has not been furnished by him.
The Institute of Chartered Accountants of India ( ICAI ) has prohibited the use of ‘Chartered Accountant’ or ‘CA’ by members while using Social Media.
The ICAI has said that, A Firm of Chartered Accountants may have an account on Social Networking website(s), wherein it may mention its name and other contents in accordance with the Advertisement Guidelines, 2008 issued by the Institute, appearing in Volume-II of Code of Ethics.
A member in practice may have an account on the Social Networking website(s), wherein he may represent himself as a proprietor or partner in a Firm. The contents of the said website shall be in accordance with the Advertisement Guidelines, 2008 issued by the Institute. A Firm or a member may give a link to his website or webpage, as the case may be, on the social networking site, the ICAI also added.
Also Read: Supreme Court and High Courts Weekly Round-Up
A member, whether in practice or in service, may be maintaining an account on social networking website(s) in his personal capacity. Besides contents of personal nature, the following contents, pertaining indirectly to the member’s professional domain may also be mentioned on such website(s):-
The ICAI clarified that the members can use the prefix “CA” with their name on such social networking website(s).
The ICAI also directed that, Members are expected to exercise professional discretion and utmost dignity while using the designation of “chartered accountant” or prefix “CA’ on their personal account on the social networking website(s) for posting content/comments of the nature which do not fall under s.no. 4 mentioned above.
Also Read: ITAT Weekly Round-Up
The ICAI also said that, As a member of the esteemed Institute, it is not appropriate to post content/comments on social networking website(s) using words/caricatures which are derogatory or not in conformity with the dignity of the profession or result in the negative portrayal of the profession. Therefore, it is advised to strictly avoid posting such content/comments with the designation of “chartered accountant” or the prefix “CA’. In this regard, members should keep in mind the provisions of Clause (2) of Part-IV of First Schedule to The Chartered Accountants Act, 1949 relating to professional misconduct of a member resulting from their action, whether or not related to professional work, bringing disrepute to the profession.
The ICAI had earlier issued an advisory to its members and students to abstain from misconduct using social media to express grievances. The Advisory said that the ICAI has always been making efforts to protect the interest of the profession as also the development of all stakeholders by taking a number of initiatives targeted not only for regulating the profession but also to enhance the skills of the students and members to be contemporary as well as future-ready.
The Central Board of Direct Taxes ( CBDT ) has extended the due date for filing various reports of Income Tax Audit Reports for Assessment Year 2022-23 from 30th September 2022 to 7th October 2022 for certain categories of assessees.
“On consideration of difficulties faced by the taxpayers and other stakeholders in the filing of various reports of audit for the Assessment Year 2022-23 under the Income-tax Act, 1961 (Act), Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing of various reports of audit for the Assessment Year 2022-23, which was 30th September, 2022 to 07th October, 2022 in the case of a certain category of assessees for whom the due date was 30.09.2022.”
The due date of furnishing of Return of Income for the Assessment Year 2022-23, which was 30th September 2022 under sub-section (1) of section 139 of the Act, as extended to 07 October 2022 by CBDT Circular No. 19/2022 F.No.225/49/2022/ITA-II dated 30.09.2022 issued. The Board has clarified that this extension shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income is reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds Rs.1 Lakh. In the case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021, Circular No.17/2021 and this Circular) provided in that Act, shall be deemed to be the advance tax
The Central Board of Direct Taxes (CBDT) has clarified that one-time settlement of bank loans would not attract tax under section 194R of the Income Tax Act, 1961.
The new section mandates a person, who is responsible for providing any benefit or perquisite to a resident, to deduct tax at source @ 10% of the value or aggregate of the value of such benefit or perquisite, before providing such benefit or perquisite. The benefit or perquisite may or may not be convertible into money but should arise either from carrying out of business or from exercising a profession, by such resident.
With regard to treating the waiver or settlement of loan by the bank as a perquisite, the circular clarified that the same may be an income to the person who had taken the loan.
“It is also true that subjecting such a transaction to tax deduction under section 194R of the Act would put an extra cost on the such bank, as this would require payment of tax by the deductor in addition to him taking a haircut already. Hence, to remove the difficulty, it is clarified that one-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the following would not be subjected to tax deduction at source under section 194R of the Act,” the circular said.
The circular stated that there may be expenses during such dealer/business conference which need to be classified as benefit/perquisite and tax is required to be deducted under section 194R of the Act. However, there may be practical difficulties in identifying such benefit/perquisite to the actual recipient due to the fact that it is a group activity and reasonable allocation is not possible. Noncompliance of the provision of section 194R of the Act, in such a case, would not only result in disallowance under clause (ia) of section 40 of the Act but may also result in treating the benefit/perquisite provider as assessee in default under section 201 of the Act with all other consequences. “In order to remove these practical difficulties, it is clarified that if benefit/perquisite is provided in a group activity in a manner that it is difficult to match such benefit/perquisite to each participant using a reasonable allocation key, the benefit/perquisite provider may at his option not claim the expense, representing such benefit/perquisite, as deductible expenditure for calculating his total income. If he decides to opt so, he will not be required to deduct tax under section 194R on such benefit/perquisite and therefore he will not be treated as assessee in default under section 20 I of the Act. Thus, in such a case he must add back the expenditure, representing such benefit/perquisite, to calculate his total income if such expenditure is debited in the account,” the Board said.
Subscribe Taxscan Premium to view the JudgmentThe changes relating to GST rate, in pursuance of recommendations made by the GST Council in its 47th meeting, came into effect from today, 18th of July, 2022. One such change is moving from imposition of GST on specified goods when bearing a registered brand or brand in respect of which an actionable claim or enforceable right in a court of law is available to imposition of GST on such goods when “pre-packaged and labelled”.
Certain representations have been received seeking clarification on the scope of this change, particularly in respect of food items like pulses, flour, cereals, etc. (specified items falling under the Chapters 1 to 21 of the Tariff), as has been notified vide notification No. 6/2022-Central Tax (Rate), dated the 13th of July, 2022, and the corresponding notifications for SGST and IGST. Following are the Frequently asked Questions (FAQ) to clarify certain doubts/queries regarding the GST levy on ‘pre-packaged and labelled’ goods which came into effect from today, 18th of July, 2022:
| S. No. | Question | Clarification |
| What change has been made with respect to packaged and labelled commodity with effect from the 18th July, 2022? | Prior to 18th of July, 2022, GST applied on specified goods when they were put up in a unit container and were bearing a registered brand name or were bearing brand name in respect of which an actionable claim or enforceable right in a court of law is available. With effect from the 18th July 2022, this provision undergoes a change and GST has been made applicable on supply of such “pre-packaged and labelled” commodities attracting the provisions of Legal Metrology Act, as detailed in subsequent questions. For example, items like pulses, cereals like rice, wheat, and flour (aata), etc., earlier attracted GST at the rate of 5% when branded and packed in unit container (as mentioned above). With effect from 18.7.2022, these items would attract GST when “prepackaged and labelled”. Additionally, certain other items such as Curd, Lassi, puffed rice etc. when “prepackaged and labelled” would attract GST at the rate of 5% with effect from the 18th July, 2022. Essentially, this is a change in modalities of imposition of GST on branded specified goods to “pre-packaged and labelled” specified goods. [Please refer to notification No. 6/2022-Central Tax (Rate) and corresponding notification under respective SGST Act, IGST Act] | |
| What is the scope of ‘pre- packaged and labelled’ for the purpose of GST levy on food items like pulses, cereals, and flours? | For the purposes of GST, the expression ‘pre- packaged and labelled’ means a ‘pre-packaged commodity’ as defined in clause (l) of section 2 of the Legal Metrology Act, 2009, where the package in which the commodity is pre- packed, or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act and the rules made thereunder.Clause (l) of section 2 of the Legal Metrology Act reads as below: (l) “pre-packaged commodity” means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre- determined quantity.Thus, supply of such specified commodity having the following two attributes wouldattract GST: (i) It is pre-packaged; and(ii) It is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder. However, if such specified commodities are supplied in a package that do not require declaration(s)/compliance(s) under the Legal Metrology Act, 2009 (1 of 2010), and the rules made thereunder, the same would not be treated as pre-packaged and labelled for the purposes of GST levy In the context of food items (such as pulses, cereals like rice, wheat, flour etc), the supply of specified pre-packaged food articles would fall within the purview of the definition of ‘pre-packaged commodity’ under the Legal Metrology Act, 2009, and the rules made thereunder, if such pre-packaged and labelled packages contained a quantity upto 25 kilogram [or 25 litre] in terms of rule 3(a) of Legal Metrology (Packaged Commodities) Rules, 2011, subject to other exclusions provided in the Act and the Rules made thereunder. | |
| What is the scope of this coverage taking into account various exclusion(s) provided under the Legal Metrology Act and the rules made thereunder? | For such commodities (food items- pulses, cereals, flour, etc.), rule 3 (a) of Chapter-II of Legal Metrology (Packaged Commodities) Rules, 2011, prescribes that package of commodities containing quantity of more than 25 kg or 25 litre do not require a declaration to be made under rule 6 thereof. Accordingly, GST would apply on such specified goods where the pre-packaged commodity is supplied in packages containing quantity of less than or equal to 25 kilogram. Illustration: Supply of pre-packed atta meant for retail sale to ultimate consumer of 25 Kg shall be liable to GST. However, supply of such a 30 Kg pack thereof shall be exempt from levy of GST. Thus, it is clarified that a single package of these items [cereals, pulses, flour etc.] containing a quantity of more than 25 Kg/25 litre would not fall in the category of pre-packaged and labelled commodity for the purposes of GST and would therefore not attract GST. | |
| Whether GST would apply to a package that contains multiple retail packages. For example, a package containing 10 retail packs of flour of 10 Kg each? | Yes, if several packages intended for retail sale to ultimate consumer, say 10 packages of 10 Kg each, are sold in a larger pack, then GST would apply to such supply. Such package may be sold by a manufacturer through distributor. These individual packs of 10 Kg each are meant for eventual sale to retail consumer.However, a package of say rice containing 50 Kg (in one individual package) would not be considered a pre-packaged and labelled commodity for the purposes of GST levy, even if rule 24 of Legal Metrology (Packaged Commodities) Rules, 2011, mandates certain declarations to be made on such wholesale package. | |
| At what stage would GST apply on such supplies, i.e., whether GST would apply on specified goods sold by manufacturer/producer to wholesale dealer who subsequently sells it to a retailer? | GST would apply whenever a supply of such goods is made by any person, i.e. manufacturer supplying to distributor, or distributor/dealer supplying to retailer, or retailer supplying to individual consumer. Further, the manufacturer/wholesaler/retailer would be entitled to input tax credit on GST charged by his supplier in accordance with the Input Tax Credit provisions in GST. A supplier availing threshold exemption or composition scheme would be entitled to exemption or composition rate, as the case may be, in usual manner. | |
| Whether tax is payable if such goods are purchased in packages of up to 25 kg/25liters by a retailer, but the retailer sells it in loose quantities in his shop for any reason? | GST applies when such goods are sold in pre- packaged and labelled packs. Therefore, GST would apply when prepackaged and labelled package is sold by a distributor/ manufacturer to such retailer. However, if for any reason, retailer supplies the item in loose quantity from such package, such supply by retailer is not a supply of packaged commodity for the purpose of GST levy. | |
| Whether tax is payable if such packaged commodities are supplied for consumption by industrial consumers or institutional consumers? | Supply of packaged commodity for consumption by industrial consumer or institutional consumer is excluded from the purview of the Legal Metrology Act by virtue of rule 3 (c) of Chapter-II of Legal Metrology (Packaged Commodities) Rules, 2011. Therefore, if supplied in such manner as to attract exclusion provided under the said rule 3(c),it will not be considered as pre-packaged and labelled for the purposes of GST levy. | |
| ‘X’ is a rice miller who sells packages containing 20 kg rice but not making the required declaration under legal metrology Act and the Rules made thereunder (although the said Act and the rules requires him/her to make a declaration), would it still be considered as pre-packaged and labelled and therefore be liable to GST? | Yes, such packages would be considered as pre-packaged and labelled commodity for the purposes of GST as it requires making a declaration under the Legal Metrology (Packaged Commodities) Rules, 2011 (rule 6 thereof). Hence, miller ‘X’ would be required to pay GST on supply of such package(s). | |
| Any other relevant issue? | The Legal Metrology Act and the rules made thereunder prescribe criterion(s) for exclusion (as stated above) and provides certain exemptions under rule 26 of Legal Metrology (Packaged Commodities) Rules, 2011. It is reiterated therefore that, if supplied in such manner as to attract exclusion, or such exemption, the item shall not be treated as pre- packaged commodities for the purposes of GST levy. |
Support our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
The Institute of Chartered Accountants of India ( ICAI ) notified the Schedule of CA Exams Final, Intermediate & PQC Examinations – November 2022.
In pursuance of Regulation 22 of the Chartered Accountants Regulations, 1988, the Council of the Institute of Chartered Accountants of India has announced that the next Chartered Accountants Intermediate and Final Examinations will be held from November 2nd to 16th.
Similarly, Examinations in Post Qualification Course under Regulation 204, viz.: International Taxation –
Assessment Test (INTT – AT) and Insurance and Risk Management (IRM) Technical Examination (which
is open to the members of the Institute) will be held on the dates and places (centers in India only)
which are given below provided that a sufficient number of candidates offer themselves to appear from
each of the below-mentioned places.
The places for examination centres overseas are Abu Dhabi, Bahrain, Doha, Dubai, Kampala (Uganda), Kathmandu, Kuwait, and Muscat.
The Examination commencement timings at Abu Dhabi, Dubai and Muscat Centres will be 12.30 PM 1.e. Abu Dhabi, Dubai and Muscat local time corresponding/equivalent to 2 PM. (IST). The Examination commencement timing at Bahrain, Doha, Kampala and Kuwait Centre will be 11.30 AM I.e. Bahrain / Doha / Kampala / Kuwait local time corresponding / equivalent to 2 PM. (IST). The Examination commencement Timing at Kathmandu (Nepal) Centre will be 2.15 PM Nepal local time corresponding / equivalent to 2 PM (IST).
Online filling up of examination application forms:
As a part of automation and platform consolidation, ICAI is pleased to announce that all candidates in respect of Intermediate & Final Examinations will be required to apply online at https://eservices.icai.org (Self Service Portal – SSP) for November 2022 Exam onwards and also pay the requisite examination fee online. These forms are based on your eligibility of your course based on announcements and regulations. These forms will be available on SSP, and you are requested to login with your credentials (Username and password). These Exam forms will be available in SSP effective designated dates as would be announced on www.icai.org.
Kindly Note: If you have never registered as a user in SSP, Kindly open the following URL:
https://eservices.icai.org/EForms/configuredHtml/1666/57499/Registration.html?action=existing
Please use forgot password option in case you have forgotten or lost your password. Students are also
requested to Create User Name, Register Course, Convert Course, Revalidate, Update Photo, Signature
and Address on SSP only.
Members are desirous to apply for Post Qualification Course Examinations i.e. International Taxation –
Assessment Test (INTT – AT) and Insurance and Risk Management (IRM) Technical Examination (which
is open to the members of the Institute) are required to apply online at pqc.icaiexam.icai.org
The examination fee can be remitted online by using VISA or MASTER or MAESTRO Credit / Debit Card /
Rupay Card / Net Banking / Bhim UPI.
For Full Text of the Notification Click here.
The Central Board of Indirect taxes and Customs (CBIC) has issued a circular relating to mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.
A circular issued by the Board today stated that it is desirable that correct reporting of information is done by the registered person in FORM GSTR-3B and FORM GSTR-1 so as to ensure correct account and accurate settlement of funds between the Central and State Governments. Accordingly, the Board has clarified a few issues in the circular.
With regard to the issue of furnishing of information regarding inter-State supplies made to unregistered persons, composition taxable persons, and UIN holders, it is clarified that the information sought in Table 3.2 of FORM GSTR-3B is required to be furnished, place of supply-wise, even though the details of said supplies are already part of the supplies declared in Table 3.1 of the said FORM. For assisting the registered persons, Table 3.2 of FORM GSTR-3B is being auto-populated on the portal based on the details furnished by them in their FORM GSTR-1. It is further advised that any amendment carried out in Table 9 or Table 10 of FORM GSTR-1 or any entry in Table 11 of FORM GSTR-1 relating to such supplies should also be given effect while reporting the figures in Table 3.2 of FORM GSTR-3B.
Subscribe Taxscan Premium to view the Judgment
Buy books of essential tax practice with exciting offers at shopscan.in
