The CESTAT on 21st September 2023 vide Notification No 2 of 2023 has notified hearing on virtual mode and the copy of the notification enclosed for your reference.
The ministry of finance through Notification No. A-50050/150/2018-CESTAT-DoR dated 14th September 2023 has notified State level benches for Goods and Service Tax appellate tribunals and copy of notification has been enclosed for your easy reference.
The GSTIN on 19th September 2023 has issued an advisory note on enablement of Geocoding functionality for additional place of businesses. This facility has been already enabled in GST portal and the advisory note can be accessed through the link
The GSTN has issued an advisory note on the availability of a new functionality in the e-invoicing portal that allows taxpayers who are by default enabled for e-invoicing but are exempted from implementing it under the CGST (Central Goods and Services Tax) Rules to declare their exemption. The advisory note can be accessed through the link
A new functionality has been introduced by the GSTN for issuance of intimation in Form GST DRC-01B in cases where the liability declared in Form GSTR-1 exceeds the liability discharged through Form GSTR-3B, by a pre-defined limit or the percentage of such difference exceeds a threshold as recommended by the GST Council. Taxpayers are required to respond to such intimation in Part B of Form GST DRC-01B within 7 days from the issuance of notice, either by (a) discharging such differential tax liability through Form GST DRC-03 or (b) provide a suitable explanation for such difference. In case the differential tax liability is not paid or the explanation or reasons provided by the taxpayer are not accepted by the Proper Officer, recovery proceedings can be initiated. Detailed manual containing step-by-step guidelines on how to navigate this functionality can be accessed here.
With effect from 01.08.2023, CBIC has lowered the threshold of Aggregate Annual Turnover (AATO) from 10 crores to 5 crores, for applicability of e-Invoicing for B2B transactions. To facilitate the same, GSTN has now enabled e-invoice reporting by eligible taxpayers on all the six IRPs. Taxpayers can check their status of enablement of e-Invoicing through this link. The enablement status indicated on the e-Invoice portal does not indicate a legal obligation on taxpayers to use e-Invoicing and the onus is placed on the taxpayers to check the applicability and compliance of the e-invoicing provisions.
GSTN has launched a mobile application (“EInvoice QR Code Verifier” App) to facilitate the verification of accuracy and authenticity of the value / information embedded in the QR code in the e-invoices. The app operates on a non-login basis and is currently available on Google Play Store (iOS version to be available soon)
(a) Based on data analytics and risk parameters, risk rating of high / medium / low will be assigned to each application by the system which the proper officer should consider to verify and process such application.
(b) Proper Officer to check whether the registration/s has been obtained on the same PAN earlier [either within the same State or other State(s)]. In such cases, the compliance record of the GSTINs will also be verified on the portal.
(c) In case the registration application is found to be deficient, or any further information / clarification is required by the officer for verification of such application, notice in Form GST REG-03 to be issued by the proper officer (within 7 days where the applicant has undergone Aadhar authentication and 30 days for other cases).
(d) The Applicant should submit the response / additional documents against the notice in Form GST REG-04 within 7 workings from the date of receipt of such notice.
(e) If no reply is furnished / reply is not satisfactory, the application may be rejected in Form GST REG-05 by giving his reasons in writing.
(f) Where GST registration is already granted on deemed approval basis or High-Risk rate is assigned in “DGARM Report Series 400” and physical verification is not conducted before grant of registration, the CPC officer should communicate the same to the jurisdictional Commissionerate to conduct physical verification of place of business within 15 days from the date of such registration.
As per the CBIC notification issued on 10th May 2023, turnover limit for E-invoice is reduced to Rs.5 crores from Rs. 10 Crore w.e.f. 01st Aug 2023.
Services provided by ‘Courts’ and ‘Tribunals’ will now be covered under the provisions of Reverse Charge Mechanism and the reference to Central / State Government in the RCM provisions would include a reference to ‘Courts’ and ‘Tribunals’. For instance, renting services in the nature of renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.
For the returns filed upto December 2022 (return period), details of Credit Notes (CN) issued by vendors was being auto-populated separately in Table 4B(2) of the autopopulated Form GSTR-3B i.e. Other Reversals and taxpayers were advised to file the same accordingly. Now, as per the latest advisory, for the returns filed from January 2023 (return period), taxpayers are advised to declare the details of Credit Notes (CN) issued by vendors on a net basis itself in Table 4(A) i.e. ITC available of Form GSTR-3B, instead of declaring the ITC for the period in full in Table 4(A) and credit notes separately in Table 4(B)(2).
Based on the above changes, if the ITC available is lesser than the credit notes uploaded, value in Table 4(A) will be auto populated as a negative amount and such negative amounts can be entered in Table 4(A) i.e. ITC available of Form GSTR-3B. Hitherto, only positive amounts could be entered in such table.
GSTN has launched a new user-friendly E-invoicing portal (www.einvoice.gst.gov.in) which is a reference site for master data, news, updates and latest releases. However, for registering e-invoices and generation of IRN, taxpayers should continue using the current portal i.e. . 3 new Invoice Reporting Portals (IRPs) for reporting e-invoices are in the works and are expected to be active shortly.
Goods Transport Agencies (GTA) have an option to pay tax under forward charge by submitting ‘Annexure V’ on the GST portal every year before the commencement of a financial year. The cut-off date for exercising the said option is 15th March of the preceding financial year and once exercised the same cannot be withdrawn during the year. For FY 2023-24, facility of submission of ‘Annexure V’ has been enabled on the portal for GTA’s to exercise their option by 15th March, 2023 by navigating to: Services > User Services > Opting Forward Charge Payment by GTA (Annexure V) on the GST portal.
The CBIC has introduced the functionality for geocoding the principal place of business address (i.e. the process of converting an address or description of a location into geographic coordinates) on the GST Portal. This feature is introduced to ensure the accuracy of address furnished in the GSTN records and streamline the address location and verification process. Currently, this functionality is being made available for taxpayers registered in Delhi and Haryana only and can be accessed under Services>>Registration>>Geocoding Principal Place of Business after logging in to the GSTN portal.
The CBIC has notified the provisions of Finance Act, 2022 related to GST which shall be effective from October 1st, 2022. The key changes include extension in time limit of availment of ITC till 30th November of next financial year, amendment to GSTR 1 return till 30th November of next financial year, credit notes can be issued till 30th November of next financial year, Form GSTR-2 has been done away with, extension in time-limit to rectify errors or omission in Form GSTR -1 or GSTR-3B, omission of sections 42, 43 and 43A etc.
As per the directions of Hon‘ble Supreme Court, the facility for filingTRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the common portal by an aggrieved registered assessee will be made available by GSTN during the period from 01.10.2022 to 30.11.2022. In order to ensure uniformity in implementation of the directions of Hon‘ble Supreme Court, the CBIC has issued guidelines for the applicants for filing TRAN-1/TRAN-2 or revising earlier filed TRAN-1/TRAN-2.
The CBIC issued Notification No. 17/2022–Central Tax dated August 01, 2022 to amend Notification No. 13/2020 – Central Tax, dated March 21, 2020 to decrease the e-Invoicing aggregate turnover limit from 20 crore to 10 crore w.e.f. October 01, 2022. Hence, w.e.f. 01-10-2022 onwards Einvoice is applicable if aggregate turnover of taxpayer is exceeding Rs.10 crores in any one of the years from FY 2017-18 onwards.
Increase in Tax Rates
Withdrawal of Exemption
|Input Tax Credit is available to the buyer only if the supplier file their return w.e.f. 01-01-2022 onwards.||Notification number and reference document|
As per the Central Tax notification number 39/2021, the new condition in clause (aa) of Section 16(2) of the CGST Act is implemented giving effect to Section 109 from the Finance Act, 2021 effective from 1st Jan 2022.
While Section 16(2) of the CGST Act had conditions for recipients to fulfil before claiming Input Tax Credit (ITC) in their GSTR-3B, the GST Council suggested an amendment to Rule 36(4) during the 45th meeting in September 2021 and notified during December 2021 through the Central Tax notification no. 39 & 40/2021. As per this notification, additional condition got added to claim Input Tax Credit (ITC) in GSTR-3B. Now, registered person shall be entitled to take the credit of any input tax only if the supplier furnish the details of invoice/Debit note in GSTR-1 and the relevant invoice is populating in GSTR-2B of registered person.
In an ever-evolving landscape of taxation, where accuracy, compliance, and transparency are paramount, this Guidance Note stands as a beacon of knowledge and insight for all Chartered Accountants engaged in the intricate world of tax audit.
Tax audit, an essential tool in ensuring adherence to tax laws and regulations, demands a profound understanding of intricate legal framework, attention to detail and commitment towards ethical practice. To enable our members to perform tax audits efficiently, the Direct Taxes Committee of the Institute of Chartered Accountants of India (ICAI) has taken an initiative of updating the ‘Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961’. This Guidance Note provides a comprehensive roadmap to navigate the complexities of tax audit in a strategic and informed manner and also delves into the intricacies of audit procedures.
As the regulatory environment evolves, it is imperative for our members to stay updated and compliant with the ever-changing tax requirements. This Guidance Note not only delves into the core concepts of tax audit but also provides practical insights that will aid taxpayers in ensuring adherence to the statutory norms.
Section 44AB has been introduced in the Income-tax Act, 1961, by the Finance Act, 1984. This section provides for audit of accounts of assessees having total sales, turnover or gross receipts exceeding the specified limits of Rs.40 lakhs for business and Rs.10 lakhs for profession. New Rule 6G, inserted in the Income-tax Rules, prescribes the Forms of Audit report for the above purpose. The requirements for the above audit will apply to accounts relating to previous year relevant to assessment year 1985-86 and subsequent years.
Audit of accounts in the corporate sector has been made compulsory by legislation over a period of years. Realising the importance of audit, in recent years, this requirement is being extended to non-corporate sector also.
The CBDT notified the e-Appeals scheme, 2023 for the expeditious disposal of appeal proceedings in a faceless manner. The CBDT has now notified certain appeals that will be disposed outside the purview of the e-Appeals scheme. Some of these appeals excluded are those appeals against assessment orders which were passed before 13.08.2020 under sub-section 143(3) or 144 of the Act and having disputed demand more than Rs. 10 lakhs; ii. appeals pertaining to international transaction etc. A complete list of appeals excluded from the e-Appeals scheme has also been provided.
The Finance Act, 2023 brought in certain amendments to the TCS provisions on LRS remittances and purchase of overseas tour packages intended to be effective from 01.07.2023. However, considering the practical difficulties faced by the stakeholders, certain relaxations were provided on the said amendments including restoration of the threshold of Rs. 7 lakhs on the TCS applicability and application of higher rates of 20% from 01.10.2023 as against 01.07.2023 proposed by the Finance Act, 2023.
The CBDT brought in amendments to provisions relating to registration and approvals for charitable trusts and other institutions under section 10(23C) and introduced new Forms 10A (applicable for applications seeking provisional registration / approval) and 10AB (applicable for applications seeking registration/approvals). In this regard, the relevant rules 2C, 11AA and 17A have been amended to provide for the amended provisions of the section 10(23C).
Forms 26Q, 27Q and 27EQ for the first quarter of FY 2023-24 were due to be filed on or before 31.07.2023. The CBDT has now provided that these forms can be filed on or before 30.09.2023.
The CBDT has notified that for AY 2023-24, where the variation between Arm’s length price and international transaction does not exceed: i. 1% of the value of international transaction in respect of wholesale trading; and ii. 3% of the value of international transaction in respect of other cases then such transactions shall be deemed to be at arm’s length price. Such tolerance benefits are available only in cases where the ALP is determined by either of Profit split method or Other methods.
The Finance Act, 2020 introduced as an option, a new taxation regime which taxed incomes of individuals and HUFs at a lower tax rate after restricting certain exemptions and deductions while computing the total income. The Finance Act 2023 further extended this tax regime to Association of Persons, Body of Individuals and other artificial juridical persons and has made such tax regimes as the ‘default’ tax regime with effect from AY 2024-25. The CBDT has now amended the relevant rules and introduced Form 10IEA to give effect to the amendments brought in by the Finance Act 2023.
The CBDT has notified ITR Forms 1-7 applicable for AY 2023-24. This would enable the taxpayers to collate the necessary information required for filing the return of income well in advance.
Finance Act, 2016 introduced the Equalisation Levy (‘EL’) to be collected by taxpayers entering into certain transactions. These transactions are required to be reported to the income-tax department by filing an annual statement. The Finance Act, 2016 authorized the CBDT to formulate a scheme for processing the EL statements filed. The CBDT has now exercised such powers and formulated a scheme for processing such statements.
A trust or institution or other taxpayers involved in charitable activities or educational activities and claiming income-tax exemptions under section 10(23C) or 12A is required to get its accounts audited and furnish such report in form 10B and 10BB.
|Due date for filing of tax audit report in form 3CA/ 3CB & 3CD for the assessment year 2021-22||15-Feb-22|
|Due date for filing of accountant’s report on international/ specified domestic transactions in form 3CEB under Section 92E for the assessment year 2021-22||15-Feb-22|
Due date for filing return of income for the assessment year 2021-22 if the Assessee (Other than Transfer pricing audit u/s.92E) is a
Due date for filing return of income for the assessment year 2021-22 if the Assessee (subject to Transfer pricing audit u/s.92E) is a
|Extension of time limit to link PAN and Aadhar under Section 139AA||31-Mar-22|
Due date for filing return of income for the assessment year 2021-22 for all Assessee other than
|Due date for filing tax audit report for the assessment year 2021-22 in the case of assessees/ partnership firms who are subjected to audit under the Income Tax Act.||15-Jan-22|
|Due date for filing audit report for the assessment year 2021-22 in the case of assessees who have entered into international/ specified domestic transcation under the Income Tax Act.||31-Jan-22|
|Due date for filing return of income for the assessment year 2021-22 in the case of assessees/ partners of partnership firms who are subjected to audit under the Income Tax Act||15-Feb-22|
|Due date for filing return of income for the assessment year 2021-22 in the case of assessees who have entered into international/ specified domestic transction under the Income Tax Act.||28-Feb-22|
|Due date for filing revised/ belated return of income for the Assessment Year 2021-22 under the Income Tax Act.||31-Mar-22|
|Filing TDS Statements||From June 30 to July 15|
|Issuing tax deduction certificate||From July 15 to July 31|
|Filing foreign remittance statement||From July 15 to July 31|
|Submission of registration of trusts and institutions||From June 30 to August 31|
|Submitting form for equalisation levy||From June 30 to July 31|
|Uploading of form of no TDS claims cases||From July 15 to August 31|
|Submitting objection to dispute resolution panel||From June 1 onwards to August 31|
|Submitting option to withdraw cases from settlement commission||From June 27 to July 31|
Amount paid for medical treatment to an employee by employer or to any person by any other person on account of treatment of Covid for FY 19-20 and subsequent year would not be taxed in the hands employee or the person receiving the benefit.
Ex-gratia payment by an employer to an employee’s family, or by any other person to any person’s family on death of the employee or any other person on account of Covid for FY19-20 or subsequent year would be exempt from tax, restricted to 10lakhs