Harsh*t G. & Co., Chartered Accountants

CBDT releases FAQs on TCS applicable to luxury items w.e.f 22/04/2025

TCS will be levied on sale of a single item of the goods which is of the value exceeding 10 lakh rupees.

The FAQs can be accessed at the following link:https://incometaxindia.gov.in/news/faqs-notification-no-36-2025-dated-23-04-2025.pdf

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India is set to adopt a new accounting standard, IndAS 118, aligning with global IFRS 18 norms, to improve transparency and clarity in financial statements.

It will require companies to classify income and expenses into operating, investing, and financing categories, and include key performance metrics within audited statements.

Applicable from April 2027, this change targets listed and large unlisted firms to aid better investor decision-making.

The Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious bills to evade crediting the GST to the department.

The Court orally wondered how could the purchaser be held liable for the incorrect GST registration of the suppliers when they have genuinely made purchases and paid the money, including the GST amount.

A bench of Chief Justice of India Sanijv Khanna and Justice Sanjay Kumar was hearing an interlocutory application filed by the GST department.

Addressing the department, CJI Khanna said, "This is a problem occurring in GST matters. What is happening is, people are purchasing materials. The person says- I'm giving you these bills..they make payment of those bills. The material is certainly purchased. The payment is certainly made. Now you say that the persons who have raised the bills are fictitious. How can he(purchaser) be held responsible? How much can he do?"

Emphasising that the GST department should sort out the issue, CJI cautioned that the Court will come down heavily on it in one of the cases.

"That's a problem you have to sort it out, we are going to come down in one of these cases and pull you up."

CJI added that it was the duty of the department to carry out due diligence regarding the bill. "The problem is, he is giving you the bills. You are the one who has to carry out that work. Diligence work is your responsibility under the GST Act."

CJI pointed out in most cases, there was a genuine procurement of materials.

"Normally material is certainly procured. They also tell the person who has given them. But what happens is that the bill which is given or the invoice which is given, is from a third party. They also make payments to the third party," CJI said.

Continuing, the CJI said that many legal professionals can also be in trouble. "Look if we start doing this in the legal profession, all of you will be in problem....most of you will be in problem if we started making inquiries of this nature"

The counsel for the GST department submitted : "In fact, the learned ASG(Additional Solicitor General) had put to the officers to devolve a mechanism for this very purpose- so that there can be one mechanism where the supplier as well the provider of the GST Input, it can be linked through an online..."

The CJI however pointed out that such a suggestion would not the solve issues permanently.

"You wanted it to be done, it was not found workable, because the system couldn't be taking those....let me put it, even if that happens, the problem will persist. Suppose the invoice is uploaded, and the person also takes it, even then, this problem will arise. Because you yourself will later on find out that the GST registration is incorrectly given."

Counsel replied, "Yes mylords, its a practical problem, it is there, and we will rectify it"

"Look at it from the point of view of the taxpayer, don't look at it from your point of view.....this problem will arise. Material is procured, payment is certainly made, only thing is later on you feel that the payment was made to the person it was a benamidar of others. And how will he know? Most of the cases, this is happening," CJI added.

The bench however allowed the the Interim Application to be withdrawn.

'Will Pull You Up' : Supreme Court Asks GST Department To Rectify Issues Over Fake Invoices, Asks How Genuine Purchasers Are Liable The Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious...

From 1st June 2025, invoice numbers on the IRP will be treated as case-insensitive and auto-converted to uppercase to avoid duplication during IRN generation.

*GST E-Invoicing:*

*Effective from April 1 2025,* annual aggregate turnover (AATO) of *Rs 10 crore and above* will now be mandated to upload e-invoices to the Invoice Registration Portal (IRP) *within 30 days* from the date of invoice issuance.

*Previously,* this 30-day requirement *only* applied to businesses with an AATO of *Rs 100 crore or more.*

MSME Section 43B(h): New MSME 45 Days Payment Rule
The newly added clause (h) states that any sum payable by the assessee to a Micro & Small Enterprise beyond the time limit specified in Section 15 of the MSMED Act shall be allowed as a deduction only in the previous year in which the sum has been actually paid (irrespective of the accounting method employed).