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CBIC proposes mandatory GST scrutiny on quarterly basis

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The Central Board of Indirect Taxes and Customs (CBIC) has proposed mandatory Goods and Service Tax (GST) scrutiny on a quarterly basis to enhance compliance through effective and standardised scrutiny of returns.

“CBIC to soon introduce mandatory quarterly scrutiny of GST returns. Scrutiny exercise is aimed at better compliance and enhancement of GST collections,” reported CNBC-TV18, citing sources.

The CBIC would use business intelligence and other enterprise data available to run the quarterly scrutiny, the report said.

According to the news channel’s sources, tax evasion to the tune of Rs 52,000 crore was detected in the period between July 2017 and April 1, 2021.

“Fake invoices noted as biggest tax evasion practice by taxpayers,” the report stated.

It was reported on April 11, 2022 that the CBIC began an inspection of the first tranche of about 50,000 taxpayers for alleged lapses in the financial year 2018.

The examination of GST returns is initiated to bring transparency and plug tax leakages that remain undetected in the system.

Post the first tranche, another tranche of scrutiny will be opened for FY19, followed by FY20, FY21 and FY22 so that several leakages are plugged.

On March 22, 2022, the CBIC issued a standard operating procedure for the scrutiny of GST returns for financial years 2017-18 and 2018-19, the first two years of the roll-out of the new taxation regime.

The Directorate General of Analytics and Risk Management (DGARM) has been assigned the task to select the GST identification numbers (GSTINs) registered, whose returns are to be scrutinised, and to communicate the same to the field officers from time to time.

Field formations have been authorised to open scrutiny of  GSTINs based on artificial intelligence inputs and risk assessment parameters finalised by the department.

Click Here for Official Instruction / Notification issued by CBIC

Click here for News Article

Extension of Various Due Dates of Income Tax Compliances

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In view of the severity of the COVID-19 Pandemic, The Central Board of Direct Taxes (CBDT) has proactively extended time limits of certain compliances in order to provide relief to the taxpayers vide Circular No. 9 of 2021 dated 20th May, 2021.

We have summarized the due dates for various compliances as follows:

Particulars of CompliancePeriodOriginal Due Date  Extended Due Date
Statement of Financial Transactions (SFT)F.Y. 2020-21  31st May, 202130th June, 2021
Statement of Deduction of Tax (i.e. TDS Return)Quarter ended March, 2021  31st May, 202130th June, 2021
Certificate of Tax Deducted at Source in Form No. 16F.Y. 2020-21  15th June, 202115th July, 2021
TDS / TCS Book Adjustment Statement in Form 24G  May, 202115th June, 202130th June, 2021
Return of Income for Assessees NOT Liable to Tax Audit / Transfer Pricing Audit  F.Y. 2020-2131st July, 202130th September, 2021 *
Tax Audit Report in Form 3CA-3CD / 3CB-3CD  F.Y. 2020-2130th September, 202131st October, 2021
Return of Income for Assessees Liable to Tax Audit  F.Y. 2020-2131st October, 202130th November, 2021 *
Transfer Pricing Report in Form 3CEB    F.Y. 2020-2131st October, 202130th November, 2021
Return of Income for Assessees Liable to Transfer Pricing  F.Y. 2020-2130th November, 202131st December, 2021 *
Furnishing of Belated / Revised Return of Income  F.Y. 2020-2131st December, 202131st January, 2022

Note (*):

  1. Interest u/s 234A of the Income Tax Act, 1961 shall be applicable where Self Assessment Tax payable is exceeding Rs. 1 Lakh.
  2. In case of Individual Resident Assessee, if Self Assessment Tax is Paid within Original Due date as mentioned above, the same shall be deemed to be Advance Tax for the purpose of Section 234A.

To view the Circular: CLICK HERE

Ministry of Corporate Affairs: Extension to Conduct Annual General Meeting (AGM) for Companies by 3 Months

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A huge relief is provided by the Ministry of Corporate Affairs (MCA) by providing an Extension to conduct Annual General Meeting (AGM) by 3 Months from 30th September, 2020 to 31st December, 2020.

This extension came in the backdrop of various representation received nationwide ranging from Stakeholders, Companies, Industry Bodies and Professional Institutes.

Following such announcement of relief from MCA, the Registrar of Companies (ROCs) passed orders issuing a blanket three-month extension to companies within its jurisdiction.

The extension of AGM is unconditional and No additional Forms have to be filed with the MCA.

Goods and Services Tax: Extension of Due Dates of and Waiver / Reduction in Interest and Late Fees

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The Central Board of Indirect Tax and Customs (CBIC) on 24th June, 2020 vide Notification No. 51/2020, 52/2020, 53/2020 and 54/2020, notified various relaxation for due date of returns and waiver / reduction in Interest and Late Fees of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “The Act”).

The key extracts of various relaxation are as follows:

1. Notification No. 51/2020 and 52/2020:

Seeks to Waive off / reduce the rate of Interest and late fees for delay in filing of GSTR-3B if return is filed within due date as mentioned below:

i. For Taxpayers having aggregate turnover > 5 Cr in the preceding financial year:

Tax PeriodOriginal Due DateNIL Rate of Interest till
(NIL LATE FEES)		9% Interest from date
in Column (3) till
(NIL LATE FEES)
(1)(2)(3)(4)
February, 202020/03/202004/04/202024/06/2020
March, 202020/04/202005/05/202024/06/2020
April, 202020/05/202004/06/202024/06/2020

ii. For Taxpayers having aggregate turnover < 5 Cr in the preceding financial year:

Tax PeriodNIL Rate of Interest
and NIL Fees for
Category 1 States / UT  till		NIL Rate of Interest
and NIL Fees for
Category 2 States / UT  till		9% Interest from
date in Column
(2) and (3)
respectively till
(1)(2)(3)(4)
February, 202030/06/202030/06/202030/09/2020
March, 202003/07/202005/07/202030/09/2020
April, 202006/07/202009/07/202030/09/2020
May, 202012/09/202015/09/202030/09/2020
June, 202023/09/202025/09/202030/09/2020
July, 202027/09/202029/09/202030/09/2020

iii. Moreover, a benefit in form of Reduced / Late Fees has been prescribed for failure of filing of GSTR-3B for the period July, 2017 to January, 2020 as follows:

Tax PeriodTax LiabilityMaximum Late Fees
u/s 47 of the Act		Condition of Return
to be filed within
July, 2017 to January, 2020NILNIL01/07/2020 to 30/09/2020
July, 2017 to January, 2020Other than NILRs. 25001/07/2020 to 30/09/2020

2. Notification No. 53/2020:

Seeks to Waive off late fees for delay in furnishing GSTR-1 if return is filed within due date as mentioned below:

Month / QuarterDates
March, 202010/07/2020
April, 202024/07/2020
May, 202028/07/2020
June, 202005/08/2020
January to March, 202017/07/2020
April to June, 202003/08/2020

3. Notification No. 54/2020:

Prescribes the due dates of GSTR-3B for the month of August, 2020 for Taxpayers having aggregate turnover < 5 Cr in the preceding financial year.

ParticularsDates
Category 1 States / UT01/10/2020
Category 2 States / UT03/10/2020

Category 1 States / UT:

Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.

Category 2 States / UT:

Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.

Similar Notifications have been notified under the Integrated Goods and Services Tax Act, 2017 and Union Territories Goods and Services Tax Act, 2017.

To View the Notification: CLICK HERE

Income Tax: Extension of Time Limits and Compliance

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The Central Board of Direct Taxes (CBDT) on 24th June, 2020 vide Notification No. 35/2020, extended the due dates under various sections of the Income Tax, 1961 (hereinafter referred to as “The Act”).

The key extracts of extension of time limits and compliances are as follows:

1. The Due date for furnishing Return of Income for the F.Y. 2018-19 (A.Y. 2019-20) has been extended upto 31st July, 2020

2. The Due date for furnishing Return of Income for the F.Y. 2019-20 (A.Y. 2020-21) has been extended upto 30th November, 2020.

3. In Case of an Office of Government, Due date for furnishing Statement of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been extended upto 15th July, 2020.

4. In Case of Other than an Office of Government, Due date for furnishing Statement of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been extended upto 31st July, 2020.

5. The Due date for Furnishing of Certificate of Deduction or Payment of Tax under Section 192 (Form 16) of the Act has been extended upto 15th August, 2020.

6. No Interest u/s 234A (Interest for defaults in furnishing return of income) of the Act for the F.Y. 2019-20 (A.Y. 2020-21) where Self Assessment Tax is upto Rs. 1 Lakh.

The above mentioned Notification shall come into Force from 30th June, 2020

To View the Notification: CLICK HERE

Recommendations of the 40th GST Council Meeting related to Law and Procedure

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The 40th GST Council was help under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing Today i.e. 12th June, 2020.

The GST Council has made the following recommendations on Law & Procedures changes:

1. Reduction in Late Fee for past Returns:

To bring in line pending return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under:

i. If there is no Liability               : NIL

ii. If there is any Tax Liability      : Maximum Rs. 500/- per return.

(Note: The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01/07/2020 to 30/09/2020.)

2. Further relief for small taxpayers for late filing of returns (February, March & April 2020):

For small taxpayers (Aggregate Turnover upto Rs. 5 Crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18% p.a. to 9% p.a. till 30.09.2020 i.e. For these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6th July 2020) and thereafter 9% interest will be charged till 30.09.2020.

3. Relief for small taxpayers for subsequent tax periods (May, June & July 2020):

In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 Crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).

4. One time extension in period for seeking revocation of cancellation of registration:

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30/09/2020, in all cases where registrations have been cancelled till 12/06/2020.

Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which alone shall have the force of law.

To read the Press Release : CLICK HERE

Modification in the Income Tax Return Acknowledgement (ITR-V) in the Assessment Year 2020-21

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The Central Board of Direct Taxes on 29th May, 2020, vide the Notification No. 31/2020, notified the Income Tax Return (ITR) Forms for the Assessment Year 2020-21.

A modification is made in the Income Tax Return Acknowledgement (ITR-V). Until the Assessment Year 2019-20, the Acknowledgement reflected the Taxable Income and Tax Details after filing the Income Tax Return Form. Once the return was verified (by the prescribed modes), the mode and details of verification were added to the Acknowledgement.

However, for the Assessment Year 2020-21, The Taxable Income and Tax Details (Along with Dividend Distribution Tax Details and Accreted Income & Tax Details) will be reflected only after the Assessee verifies the Income Tax Return through the prescribed modes. Until the verification of the return, only the e-filing acknowledgement number along with Basic Details (Name, PAN, Section of Filing and Form Number) will be reflected.

The Prescribed modes of verification of the Income Tax Return are as follows:

  1. Signed Copy of the ITR-V  to Centralized Processing Centre, Income Tax Department, Bengaluru – 560 500, by ORDINARY POST OR SPEED POST ONLY.
  2. Aadhaar OTP.
  3. Login to e-filing account through Net-Banking login.
  4. EVC obtained generated using Pre-Validated Bank Account/Demat Account.
  5. EVC generated through Bank ATM.

To view the ITR-V (Notified by CBDT) : CLICK HERE

Notification of Income Tax Return Forms for the A.Y. 2020-2021.

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Vide Notification No. 31/2020 of the Income Tax Act, 1961, the Central Board of Direct Taxes (CBDT) has notified the Income Tax Return (ITR) Filing Forms for the Assessment Year 2020-21.

As announced earlier by the Hon’ble Finance Minister of India, The due date for filing the Income Tax Return for the A.Y. 2020-21 has been extended to 30th November, 2020.

To view the Notification: CLICK HERE

Special economic and comprehensive package of Rs 20 lakh Crores

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India is presently in Lockdown 3 where the Economy is seeing a downward trend but the Hon’ble Prime Minister of India, Shri Narendra Modi Ji, on 12th May, 2020 announced aSpecial economic and comprehensive package of Rs 20 lakh Crores – equivalent to 10% of India’s GDP. He gave a clarion call for Self-Reliant India Movement. He also outlined five pillars of Aatmanirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.

Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman Ji held a press conference on 13th May, 2020 and announced measures for relief and credit support related to businesses, especially MSMEs to support Indian Economy’s fight against Novel COVID-19. The relief measures ranges across Micro, Small and Medium Enterprises (MSMEs), Employees Provident Fund (EPF), Non- Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) and Micro Finance Institutions (MFIs), Distribution Companies (DISCOMs), Contractors, Real Estate Sector and several other reliefs in Income Tax Act ranging from Extension in due dates for the Financial Year 2019-20 along with Reduction in TDS and TCS Rates by 25%.

COVID-19: Extension of Due dates and Relief in Compliances

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As the nation is amid country wide lockdown, the Economy is severely affected. To mitigate the Financial and Economic impact of COVID-19, The Honorable Finance Minister of India, Mrs. Nirmala Sitharaman Ji held a Press Conference on 24th March, 2020 and made several announcements relating the various sectors like Income Tax, Goods and Services Tax, Customs, Financial Service and Corporate Affairs where various Due dates of the relevant statutes are extended along with relief in reduced Interest Payment and Nil Late Fees and various relief in the Compliances to the Corporate Sector.