Tax Talkers

Press Release: 54th GST council meeting

GST Council recommends Group of Ministers (GoM) on life and health insurance-related GST with the existing GoM on Rate Rationalisation; to submit a report by the end of October 2024.

GST Council also recommends the formation of a GoM to study the future of compensation cess.

GST Council recommends exempting the supply of research and development services by a Government Entity, or a research association, university, college, or other institution notified under section 35 of the Income Tax Act using government or private grants.

GST Council recommends a reduction in GST rates on cancer drugs – Trastuzumab Deruxtecan, Osimertinib, and Durvalumab from 12% to 5%.

GST Council recommends rolling out a pilot for B2C e-Invoicing.

*Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time period*

The Council has recommended providing an amnesty scheme through a special procedure under section 148 of CGST Act, 2017 for taxable persons, who *could not file an appeal under section 107 of the said Act*, against the demand order under section 73 or 74 of CGST Act, 2017 *passed on or before the 31st day of March, 2023*, or whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in sub-section (1) of section 107. In all such cases, filing of appeal by the taxpayers will be allowed against such orders upto *31st January 2024*, subject to the condition of payment of an amount of pre-deposit of 12.5% of the tax under dispute, out of which at least 20% (i.e. 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger. This will facilitate a large number of taxpayers, who could not file appeal in the past within the specified time period.

*30th September (Saturday) is the due date for the following:*

1. Filing of Tax Audit Report (3CA/3CB+3CD) for FY 2022-23 other than Transfer Pricing
2. DIR 3 - KYC - For Directors
3. TDS/ TCS Return - Q1 (April June 23)
4. Exchange/ Deposit of ₹2000 banknotes
5. Last Date to hold AGM for companies.
6. KYM Form & Membership Payment - For CAs

Tax Talkers
CA Prakash Mohta

Tax Talkers Update
*Recommendations of 50th meeting
SUMMARY OF KEY DECISIONS (50th GST Council Meeting)

Brief given below:

1. Transporters will not be required to file declaration for paying GST under forward charge every year

2. No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company.

3. Relief for taxpayer, Govt has extended the special procedure regarding mismatch in ITC availed in GSTR-3B and 2A for two more years i.e 2019-20 and 2020-21.

4. Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns, revocation of cancellation of registration extended till 31.08.2023

5. To do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant

6. To provide for physical verification in high risk cases even where Aadhaar has been authenticated.

7. System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B

8. Supply of food and beverages in cinema halls is taxable at 5%

9. If the sale of cinema ticket and supply of food and beverages clubbed together then gst rate of cinema ticket will apply.

10. 28% GST on the value of the chips purchased in casinos.

11. 28% GST on the full value of the bets placed in Online Gaming.

12. GST Appellate tribunal will be started in a phased manner

13. Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23

14. No GSTR-9 for turnover upto 2 crores.

15. Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory prospectively

16. Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period

17. Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B

18. Only Name of state on tax invoice, not the name and full address of the recipient, in cases of supply of taxable services by or through an ECO.

https://www.gst.gov.in/newsandupdates/read/588

Fake companies and ewa ..

Read more at:

Fake companies and eway bills to spin Rs 10,000-crore GST fraud | Noida News - Times of India Police on Thursday busted a gang believed to be behind a Rs 10,000-crore GST fraud, which it allegedly orchestrated by registering more than 2,000 com

Tax Talkers Latest Updates:
Important accounting and audit trail requirements from 01.04.2023

As per Ministry of Corporate Affairs (MCA) notifications No. G.S.R. 205(E) dated 24.03.2021, G.S.R. 247(E) dated 01.04.2021 & G.S.R. 235(E) dated 31.03.2022 (Copy of Notifications attached) states that every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled

Comment: such trail shall include deleted transactions trail also plus as auditors we need to amend audit programs and internal control checks suitably and if any deviation found then it needs to be reported in our reporting too.

kindly check accounting software having all above features w.e.f. 1st April, 2023

Team Tax Talkers
CA Prakash Mohta