Anubhav Nagelia & Associates, Chartered Accountants

*GST UPDATE*

*Summary of Outcomes from the 54th GST Council Meeting held on 9th Sept, 2024.*


*1. GST Rates Reduced*
*1.1 Namkeens* and Extruded/Expanded Savoury Food Products: GST rate reduced *from 18% to 12%* for certain savoury food products.

*1.2 Cancer Drugs*: GST rate reduced from 12% to 5% on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

*2. GST Rates Increased*
*Car and Motorcycle Seats*: GST rate increased *from 18% to 28%* on car seats to bring parity with motorcycle seats.

*3. New Section to be Inserted*
*Section 128A of CGST Act, 2017*: Introduction of procedures for waiver of interest or penalty under section 73 for FYs 2017-18, 2018-19, and 2019-20.

*4. New Rule to be Inserted*
*Rule 164 in CGST Rules, 2017*: Provides procedure and conditions for waiver of interest or penalty under section 128A of CGST Act, 2017.

*5. Clarifications*
*5.1 Roof Mounted Package Unit (RMPU)* Air Conditioning Machines for Railways: Classified under *HSN 8415 with 28%* GST.

*5.2 Life and Health Insurance*: A Group of Ministers (GoM) will examine GST on life and health insurance.

*5.3 Flying Training Courses*: GST exemption clarified for DGCA-approved courses.

*5.4 Preferential Location Charges (PLC)*: Clarified that PLC forms part of composite supply with construction services.

*5.5 Affiliation Services*: Clarification on the taxability of affiliation services provided by educational boards and universities.

*5.6 Ancillary/Intermediate Services by GTA*: Clarification that services provided by GTA in the course of transportation constitute a composite supply.

*5.7 Import of Services by Branch Office*: GST exemption clarified for services imported by foreign airline companies without consideration.

*6. Others*
*6.1 Reverse Charge Mechanism (RCM)*: Introduced on the supply of metal scrap and renting of commercial property by unregistered persons (URP) to Registered Persons ( RP)

*6.2 TDS of 2% on supply of metal scrap by RP in B2B Supply*

*6.3 ITC allowed on demo vehicles to dealers of car*

*6.4 B2C E-Invoicing*: Pilot rollout recommended for selected sectors and states.

*6.5 Invoice Management System (IMS)*: Introduction of new ledgers, including a Reverse Charge Mechanism (RCM) ledger and an Input Tax Credit Reclaim ledger.

*6.6 Film Distribution Services*: GST liability for past periods regularised where the distributor acts on a principal basis.

*6.7 Electricity Supply Services*: Exemptions provided for certain ancillary services related to electricity supply.

*7. New Recommendations*
*Group of Ministers (GoM) on Compensation Cess*: Formation recommended to study the future of compensation cess.

Regards:
*CA Anubhav Nagelia*
*Anubhav Nagelia & Associates*

*Key Recommendations made by 53rd GST council meeting held on 22nd June 2024* -

1. Waver of interest and penalty on demand notices issued under section 73 for Fy 17-18, 18-19, 19-20. Applicable in cases where tax is paid entirely by March 2025.

2. ⁠time limit to avail ITC u/s16(4) filed till 30th Nov 2021 instead of Oct For FY 17-18 18-19 19-20 20-21 if GSTR 3B filed till 30th Nov 2021.

3. ⁠Monetary limit for filing appeal by tax dept. of 20 lakh for Appellate tribunal; 1cr for High Court and 2 cr for Supreme court.
4. ⁠max amount of pre deposit for filing appeal before appellate authority reduced from 25 cr to 20 cr each for cgst and sgst.
5. ⁠per deposit for filing appeal before tribunal reduced to 20% and 20 cr each for cgst and sgst.

6. ⁠Amendment in law for providing that time limit for filing appeal before tribunal will start from the date government notifies.
7. ⁠extension of time limit to file GSTR 4 till 30 June.

8. ⁠Interest won’t be charged for amount available in Electronic cash ledger at time of filing GSTR 3B.

9. ⁠insertion of new Form GSTR 1A to allow correction in GSTR 1. It will be allowed to file it before filing 3B.

10. ⁠Bio metric based Aadhar authentication on PAN India basis in a phased manner.

11. ⁠clarification issued on various topics. Few of them are - 12% tax rate for milk can; uniform GST rate of 12% on all carton boxes; clarification on all types of sprinklers will attract 12% and past practice to be as is; 12% rate on all solar cases; services by railways, platform ticket, other services are exempt; service of hostal accommodation outside of educational institutions made exempt with conditions.

Regards
CÀ Anubhav Nagelia

According to section 2(85) of the Companies Act, 2013, a small company means a company that meets the following criteria:

Condition 1: Paid-up capital of the company should not exceed INR 4 Crores ; and

Condition 2: Turnover of the company should not exceed INR 40 Crores.
However, it is essential to note here that the following companies, even though they meet both of the above conditions, are not eligible to qualify as a small company-

👉A public ltd company
👉A holding company
👉A subsidiary company
👉Company registered under section 8
👉A company that is governed by any particular act

Regards
*CA. Anubhav Nagelia*
Anubhav Nagelia & Associates
Chartered Accountants
Ph: 9903957208

Anubhav Nagelia & Associates, Chartered Accountants We provide consultancy in the areas of Income Tax, GST, Books Maintenance, Audit, ROC and Incorpora

Private Limited Companies except small companies as on 31.03.2023 are required to have its existing shares converted into DEMAT within 18 months from closure of FY 23 i.e. 30.09.2024

*Regards CA. Anubhav Nagelia*

GST Update (31-03-2021)

Applicability of mandatory Dynamic QR Code for B2C invoices extended to July 1st, 2021

The requirement of mandatory Dynamic QR Code by registered persons having turnover exceeding Rs 500 crores for B2C invoices has been further extended to July 1st, 2021 (Notification No. 06/2021 – Central Tax, 30th March, 2021).

CBIC extends exemption from IGST and Compensation Cess to EOUs on imports till 31.03.2022

CBIC has further extended the exemption from payment of IGST and Compensation Cess to Export Oriented Units (EOUs) on imports till 31st March, 2022 (Notification No. 19/2021-Customs, 30th March, 2021).

Clarification regarding amendment in the Bill of Entry provisions by the Finance Act 2021

The Finance Act 2021 has made amendment under the Bill of entry provisions. The amended provision provides that the BOE would be required to be filed before the end of the day preceding the day of arrival of goods (except in specified cases notified by CBIC). In this regard, CBIC has issued a detailed clarification for complying with the amendment (Circular No.08 /2021-Customs dt. 29th of March, 2021)

CAG Audit Report on Goods and Services Tax, Central Excise and Service Tax revenue

Compliance Audit Report of the Comptroller and Auditor General of India on Goods and Services Tax, Central Excise and Service Tax revenue for the years ended March 2019 and March 2020 was presented in Parliament on 24 March 2021. The report contains audit findings relating to Goods and Services Tax and legacy Indirect Taxes viz. Central Excise and Service Tax (https://cag.gov.in/en/audit-report/details/113428).

Regards
CA. Anubhav Nagelia
Anubhav Nagelia & Associates
Chartered Accountants

Audit Reports | Comptroller and Auditor General of India Compliance Audit Report of the Comptroller and Auditor General of India on Goods and Services Tax, Central Excise and Service Tax revenue (Report No. 1 of 2021) for the years ended March 2019 and March 2020 was presented in Parliament on 24 March 2021.

*Income Tax Announcement on 31st March 2021*

Central Government *extends the last date for linking of Aadhaar number with PAN* from 31st March, 2021 to 30th June, 2021, in view of the difficulties arising out of the COVID-19 pandemic.

https://twitter.com/IncomeTaxIndia/status/1377265588347707398?s=20

*The Date for issue of notice under section 148* of Income-tax Act,1961, passing of consequential order for direction issued by the Dispute Resolution Panel (DRP) & processing of equalisation levy statements also *extended to 30th April, 2021*.

https://twitter.com/IncomeTaxIndia/status/1377265592323907584?s=20

Regards
*CA. Anubhav Nagelia*
Anubhav Nagelia & Associates
Chartered Accountants

Income Tax India on Twitter “Central Government extends the last date for linking of Aadhaar number with PAN from 31st March, 2021 to 30th June, 2021, in view of the difficulties arising out of the COVID-19 pandemic.(1/2) ”

*GST UPDATE*
Notification No. 5/2021- Central Tax Dated 08/03/2021

From 1st April 2021, *E-invoice* will be mandatory for registered persons whose *aggregate turnover in a Financial Year* *exceeds Rs. 50 Crores* . Earlier the limit was Rs. 100 Crores.

Regards
CA. Anubhav Nagelia
Anubhav Nagelia & Associates
Chartered Accountants

*EXTENSION OF DUE DATE OF GST ANNUAL RETURN AND GST AUDIT*

Due data of GSTR-9 (ANNUAL RETURN) and GSTR-9C (GST AUDIT) for FYR 2019-20 has been extended from 28/02/2021 to 31/03/2021 by Finance Ministry by Press Release today

Regards
CA. Anubhav Nagelia
Anubhav Nagelia & Associates
Chartered Accountants

**Direct tax proposals highlights as Proposed by FM today in Finance Bill*

*1.* Agriculture Infrastructure and Development Cess ( AIDC) has been introduced on few times including Petrol, Diesel, Gold, Apple, coal, lignite, peat, Fertilizer, urea, Cotton, Alcohol Beverages, Crude palm oil etc.

*2* . Reassessment u/s 148 of IT Act: Reduced from 6 years to 3 years now
Serious tax evasion cases: where income evasion evidence is Rs.50lac or more then File cab be reopened within 10 years-

*3* . Dispute resolution committee to be formed for small taxpayer: it will be faceless: anyone with total income less than 50 lacs and disputed income less than 10 Lacs can approach this committee

*4* . Faceless ITAT: faceless Income Tax Appellate Tribunal centre will be set where personal hearings will be conducted through Video Conferencing

*5* . Tax Audits: Entities having digital transactions of more than 95% (Both Purchase and Sale) shall not be required for tax audit upto Rs. 10 cr Turnover ( Earlier 5 crores)

*6* . Advance tax liability on dividend will arise only after declaration and payment of dividend

*7* . Affordable housing scheme 1.50 lac deduction will now be even available for loan taken till 31.3.2022

*8* . 80IBA: extended 31.3.2022

*9* . Tax incentive of affordable renting housing project

*10* . Pre filled income tax return will have pre filled data regarding Dividend, post office interest income, salary etc.

*11* . Trusts: educational and hospitals: limit increased from Rs.1 Cr to Rs. 5 crore for audit 10(23C)

*12* . Late deposit of employee contribution of PF/ESI by employer will now be not allowed as deduction to employer and chargeable as Income

*13* . No changes in Income Tax slab Rates this year

*14* . Custom duty reduced on gold and silver items

*15* . Mobile phones and accessories to become costly as custom duty hiked

*16* . Relief to senior citizen: for 75 years and above: Having only pension and interest income credited to same bank account: exemption from filing ITR: Paying banks will deduct TDS.

*17* . Vivad Se Vishwas Scheme extended till 28.02.2021

*18*. TDS on Purchase of Goods u/s 194Q introduced w.e.f. 01-07-02021 @ 0.10% to be deducted by buyer.

Regards
CA. Anubhav Nagelia
Anubhav Nagelia & Associates
Chartered Accountants

*Shubho Asthami*

* Income Tax and GST Due Date Extension*

*Tax Audit* for FYR 2019-20 extended till *31st December 2020*

ITR (where audit is applicable) for FYR 2019-20 also till *31st January 2021*

ITR (where audit is not applicable) for FYR 2019-20 till *31st December 2020*

Link: https://pib.gov.in/PressReleasePage.aspx?PRID=1667281

Extension of due dates for GST Annual Return and Reconciliation Statement (FORM GSTR-9 AND GSTR-9C) for FYR 2018-19 extended to *31st December, 2020*

Link: https://t.co/bWvaFHNDir

Regards
CA. Anubhav Nagelia
Anubhav Nagelia & Associates
Chartered Accountants

Extension of due date of furnishing of Income Tax Returns and Audit Reports In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances due

*UPDATES OF THE WEEK:*

1️⃣ *Income Tax:*

▶️ CBDT has informed that it has *issued refunds* of *INR 101,308 crores* to more than 27.55 lakhs taxpayers including *corporate tax refunds of INR 70,540 crores* from April-20 to till date.

2️⃣ *Goods and Services Tax:*

▶️ *GSTR-2B* for the month of *August-20* is available on GST portal, *reconcile ITC* of GSTR-3B with GSTR-2B summary to *avoid 10% cap non-compliance*.

*_Note - Sep, 20 is the last month where “capping” will be seen in aggregate for the months of Feb to Sep, 20._*

3️⃣ *Corporate & Allied Laws:*

▶️ MCA has *extended* the due date of *holding AGM* for the financial year ended *31.03.2020* for the *period of 3 months* from the *DUE DATE* by which the *AGM ought to have been held* as per the provisions of Act.

▶️ MCA has *extended* the due date of *Submitting cost audit report* by the cost auditor for the financial year *2019-20 till 30.11.2020* and *CRA-4* can be filed with ROC *till 30.12.2020* (within 30 days of receiving audit report).
*DUE DATES*

1️⃣ *Income Tax:*

▶️ *15.09.2020* is the due date to pay *2nd Intstallment of Advance Tax* for FY 2020-21 (AY 2021-22).

▶️ *30.09.2020* is the due date to *file Belated/Revised* Income tax return for FY 2018-19.

▶️ *31.10.2020* is the due date *to file Tax Audit Report* in case of Tax Audit assessees for FY 2019-20 (AY 2020-21).

▶️ *31.03.2021* is the due date for *SFT (Significant Financial Transactions)* response (Form 61A/ Preliminary) for FY 2019-20.

▶️ *31.03.2021* is the due date of filing of *TDS/TCS Return of Q1 & Q2* (FY 20-21).

2️⃣ *Goods and Services Tax:*

▶️ GSTR-3B Due Dates:

❇️ *12.09.2020/ 23.09.2020/ 27.09.2020* for *May, June and July month* for the taxpayers having *turnover upto Rs. 5 Crores* and the principal place of business situated in *West and South India*.

❇️ *15.09.2020 /25.09.2020/ 29.09.2020* for *May, June and July month* for the taxpayers having *turnover upto Rs. 5 Crores* and the principal place of business situated in *East and North India*.

*Notes:*

a. *Interest @ 9%* shall be applied after passing above-mentioned *due date till 30.09.2020*.

b. For taxpayers with *turnover more than INR 5 crores*, normal due dates *(20th of next month)* will be applicable.

3️⃣ *Corporate & Allied Laws:*

▶️ *30.09.2020 is the due date*

a. To file *DPT-03* (Return of Deposits);

b. To file *DIR-3 KYC* (KYC of directors);

c. To file *MSME Form-1* for half year ended March 31,2020;

d. To file *PAS-6 (Reco of Share Capital)* duly certified by PCS or CA in practice for half year ended March 31,2020.

▶️ *30.09.2020* is the due date to file *Form 11* (Annual Return) in case *of LLP.*

▶️ MCA has announced a *“Moratorium Period”* from *01.04.2020 to 30.09.2020* for filing of ROC Forms and *no additional fees* will be charged for such period *due to late filing* of any form due within this period *subject to certain exceptions*.

Income tax due date for IT filing extended for A.Y. 2019-20