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The GST Council, in its 37th meeting held on 20.09.2019, has recommended introduction of electronic invoice ('e-invoice') in GST in a phased manner. E-invoicing was initially made applicable w.e.f 01.10.2020 for the registered person having aggregate turnover of Rs. 500 crore and above only. Since then, aggregate turnover is being reduced in a phased manner so as to cover maximum taxpayers under the e-invoicing in following manner: Phases Applicable to W.e.f. Notification No. taxpayers having aggregate turnover of more than 1. INR 500 crore 01.10.2020 Notification No. 61/2020- Central Tax dated 30.07.2020 2. INR 100 crore 01.01.2021 Notification No. 88/2020–Central Tax dated 10.11.2020 3. INR 50 crore 01.04.2021 Notification No. 05/2021–Central Tax dated 08.03.2021 4. INR 20 crore 01.04.2022 Notification No. 01/2022- Central Tax dated 24.02.2022 5. INR 10 crore 01.10.2022 Notification No. 17/2022–Central Tax dated 01.08.2022 Notes: E-invoicing provisions are applicable when the stated aggregate turnover threshold limits crosses in any of previous financial year(s) starting from FY 2017-18. Thus, aggregate turnover limit of current financial year is not to be considered. Certain Entity are not required to generate e-invoicing even though their annual aggregate turnover crosses specified limit viz. SEZ units (not developer), insurer or banking company or financial institution, GTA, passenger transport service provider and invoicing in case of services by way of admission to exhibition of cinematograph films in multiplex screens, a government department, a local authority. Applicable only for B2B Taxable Supplies of Goods or Services or both, DN/ CN, Exports. Not Applicable for B2C Supplies, Exempted Supplies (Bill of Supply), Receipt Voucher (on advance received for supply of services), Refund Voucher (Refund of advance money received), Payment Voucher & Self-Invoice (for RCM liability received from unregistered person), ISD Invoice. Compliance The registered person to whom e-invoicing is applicable have to generate tax invoice with specified particulars as per e-schema INV-01 from taxpayer's own account and billing software, then convert the same into JSON file, and transmit such file on dedicated Invoice Registration Portal ("IRP") launched by the Government. Subsequently, IRP will generate unique e-invoice reference number with Quick Reference ("QR") Code and digitally signed JSON file and send it to the concerned supplier and will also push the data to GST Portal for auto population of date in GSTR-1 (outward supply statement) and E-waybill portal for generation of e-way bill.

Arjuna (Fictional Character): Krishna, what are the recent guidelines given by CBDT for Compulsory selection of cases for Scrutiny? Krishna (Fictional Character): Arjuna, CBDT has provided Guidelines for compulsory selection of returns for Complete Scrutiny for FY 2022-23. Also, procedure for compulsory selection has also been provided in the guidelines provided by CBDT. Arjuna: Krishna, what is a Scrutiny of Income Tax? Krishna: Arjuna, once the assessee files his return of income, irrespective of whether it is filed within the due date or in pursuance to a notice requiring the assessee to file his return, the department can initiate scrutiny proceedings if it has reason to believe that income is escaping assessment, i.e., income is under stated or expenditure is overstated. Therefore, a notice is issued on the assessee asking him to attend the department’s office and produce additional documents if any required. A mere receipt of a notice does not indicate any crime; it simply indicates conducting of investigation to find out if any income has escaped assessment. It indicates a difference of opinion of AO from that of Assessee. Arjuna: Krishna, what are the guidelines and procedures provided by CBDT for Compulsory selection of returns in Scrutiny? Krishna: Arjuna, the returns filed under following categories shall be taken for compulsory Scrutiny: If any case pertains to Survey u/s 133A of Income Tax Act shall receive compulsory Scrutiny with prior approval of concerned officer but following people are excluded even though the case pertains to survey u/s 133A if books of accounts were not seized during the survey and Income shown in return is not less than the Income assessed during the assessment. If any case pertains to Search and Seizure. Cases where no return has been furnished in response to notice u/s 142(1) shall be selected for Scrutiny but AO shall upload the underlying documents based on which notice u/s 142(1) was issued and then the Directorate of Income tax shall forward these cases to NaFAC(National Faceless Assessment Centre) which will take the further necessary action. Cases in which notices u/s 148 were issued whether or not response was furnished to notices u/s 148. Cases where registration/approval u/s 12A, 35(1)(ii)/(iia)/(iii), 10(23C) etc have not been granted or have been cancelled or withdrawn, yet the assessee claims tax deductions in his ITR. However, if order of withdrawal has been reversed by authority, then cases such shall not be selected for Scrutiny. Cases where additions have been made during earlier assessment shall also be compulsory selected for scrutiny if the addition during earlier assessment exceeds Rs 25 Lakhs in Metro cities and Rs 10 Lakhs in cities other than metro cities. Cases where specific information regarding tax-evasion is available shall also be selected for Scrutiny. Arjuna: Krishna, what should one learn from this? Krishna: Arjuna, by this circular, the department has sent a message to the taxpayers to beware of the consequences that will happen if their returns fall in the above categories. Hence this is a warning signal for taxpayers to taker utmost care while filing their Income Tax Returns, also the department is trying to keep a check on assesses who had previously made mistakes and is making sure that such types of mistakes are not repeated by them in future. Arjuna (Fictional Character): Krishna, what are the recent guidelines given by CBDT for Compulsory selection of cases for Scrutiny? Krishna (Fictional Character): Arjuna, CBDT has provided Guidelines for compulsory selection of returns for Complete Scrutiny for FY 2022-23 also procedure for compulsory selection has also been provided in the guidelines provided by CBDT. Arjuna: Krishna, what is a Scrutiny of Income Tax? Krishna: Arjuna, once the assessee files his return of income, irrespective of whether it is filed within the due date or in pursuance to a notice requiring the assessee to file his return, the department can initiate scrutiny proceedings if it has reason to believe that income is escaping assessment, i.e., income is under stated or expenditure is overstated. Therefore, a notice is issued on the assessee asking him to attend the department’s office and produce additional documents if any required. A mere receipt of a notice does not indicate any crime; it simply indicates conducting of investigation to find out if any income has escaped assessment. It indicates a difference of opinion of AO from that of Assessee. Arjuna: Krishna, what are the guidelines and procedures provided by CBDT for Compulsory selection of returns in Scrutiny? Krishna: Arjuna, the returns filed under following categories shall be taken for compulsory Scrutiny: If any case pertains to Survey u/s 133A of Income Tax Act shall receive compulsory Scrutiny with prior approval of concerned officer but following people are excluded even though the case pertains to survey u/s 133A if books of accounts were not seized during the survey and Income shown in return is not less than the Income assessed during the assessment. If any case pertains to Search and Seizure. Cases where no return has been furnished in response to notice u/s 142(1) shall be selected for Scrutiny but AO shall upload the underlying documents based on which notice u/s 142(1) was issued and then the Directorate of Income tax shall forward these cases to NaFAC(National Faceless Assessment Centre) which will take the further necessary action. Cases in which notices u/s 148 were issued whether or not response was furnished to notices u/s 148. Cases where registration/approval u/s 12A, 35(1)(ii)/(iia)/(iii), 10(23C) etc have not been granted or have been cancelled or withdrawn, yet the assessee claims tax deductions in his ITR. However, if order of withdrawal has been reversed by authority, then cases such shall not be selected for Scrutiny. Cases where additions have been made during earlier assessment shall also be compulsory selected for scrutiny if the addition during earlier assessment exceeds Rs 25 Lakhs in Metro cities and Rs 10 Lakhs in cities other than metro cities. Cases where specific information regarding tax-evasion is available shall also be selected for Scrutiny. Arjuna: Krishna, what should one learn from this? Krishna: Arjuna, by this circular, the department has sent a message to the taxpayers to beware of the consequences that will happen if their returns fall in the above categories. Hence this is a warning signal for taxpayers to taker utmost care while filing their Income Tax Returns, also the department is trying to keep a check on assesses who had previously made mistakes and is making sure that such types of mistakes are not repeated by them in future.

Arjuna (Fictional Character): Krishna,what circular has been passed on 6th July, 2022 for GSTR-1, GSTR-3B and GSTR-9? Krishna (Fictional Character): Arjuna, Circular No. 170/02/2022-GST on 6th July 2022 was passed for furnishing correct and proper information about inter state supplies and supplies and amount of ineligible/ blocked Input Tax Credit and reversal thereof in GSTR-1 &3B. Circular No.14/2022-GST on 5th July 2022 stated about GSTR-9 & 9C Arjuna (Fictional Character): Krishna, what information is to be provided regarding inter state supplies in form GSTR-1 & GSTR-3B? Krishna (Fictional Character): Arjuna, it has been noticed that several registered persons are not Furnishing the correct details about the address of unregistered person, composition taxable persons and UIN holders.So, correct information of person making interstate supply i.e. place of supply wise is to be provided: In Table 3.2 of GSTR-3B that has already been reported in Table 3.1 in the same form and Table no.7B/5 or Table 9/10 of GSTR-1 in case of Unregistered Recipient. In table 3.2 of GST-3B and Table 4A or 4C or 9 of Form GSTR-1 in case of Composition Dealer or UIN holders. Further if any amendments are made in GSTR 1 then also they are required to be shown in Table 3.2. Arjuna (Fictional Character): Krishna, what circular says about amount of ineligible / blocked Input Tax Credit and reversal thereof in GSTR- 3B? Krishna (Fictional Character): Arjuna, FORM GSTR-2B for all registered persons has been introduced from August 2020 it is auto-drafted which provides invoice-wise total details of ITC and of ITC of import of goods. Because of which following clarifications were given and asked by the department to adhere: Earlier ineligible ITC,block credit u/s 17(5) was not a part of calculation of eligible ITC, but now it is auto populated in Table 4(A). Hence, it is important to identify ineligible ITC and show it in Table 4(D) And any reversal thereof should not be part of Net ITC Available in Table 4(C) and should not get credited into the ECL. In simple words now in GSTR 3B we have mention total ITC (including ineligible ITC) and then reverse the ineligible ITC alongwith reversals of Rule 42 and 43. Registered person will have to reverse the ITC for non payment of consideration to supplier within 180 days – this reversal is required to be mentioned in GSTR 3B in Table No. 4B(2) i.e. other reversal. Further after fulfilment of necessary conditions this ITC can be reclaimed so this is required to be mentioned in Table 4A i.e. in column all other ITC. Arjuna (Fictional Character): What are the new changes for GSTR-9 & 9C as per the recent circular? Krishna (Fictional Character): Arjuna, GSTR-9 is applicable to assessee if turnover exceeds 2 crore and GSTR-9 and 9C is applicable when the turnover exceeds 5 crores. Following are the change in Form GSTR-9 for FY 2021-2022: It is now mandatory to furnish Credit & Debit notes, Amendment separately for taxable B2B supply, zero-rated supply/SEZ supply on payment of tax and nil-rate supply, separately. In preceding financial year, taxpayers having annual turnover upto 5 cr is mandatory to provide 4-digit HSN Code for all B2B supplies and to provide 6-digit HSN code if annual turnover exceeds 5cr. Arjuna (Fictional Character): What one should learn from these changes? Krishna (Fictional Character): Arjuna, some taxpayers were filing returns on the basis of auto populated details. Through these circular government has given clarifications for submitting information in GSTR 3B, GSTR 1 and GSTR 9.Further detailed information were asked by the department in the returns. So department may take actions on the basis of information called for. All taxpayers must file returns after considering provisions and notifications and circulars.

Earlier, there was exemption from GST on Unbranded or Branded Commodities where right on the brand has been foregone which has been done away w.e.f July 18, 2022, and now GST exempted only when it is not a pre-package and labelled commodities. Now, GST leviable on pre-package and labelled commodities, on which declaration is required under Legal Metrology Act, 2009 and rules made there under and the concept of branded or unbranded has been done away with. For example, items like pulses, cereals like rice, wheat, and flour (aata), etc., earlier attracted GST at the rate of 5% when branded and packed in unit container. W.e.f. July 18, 2022, these items would attract GST when "pre-packaged and labelled". Additionally, certain other items such as Curd, Lassi, puffed rice etc., when "pre-packaged and labelled" would attract GST @ 5% with effect from July 18, 2022. The expression 'pre-packaged and labelled' has been defined as: "a 'pre-packaged commodity' as defined in clauses (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder." Thus, supply of such specified commodity having the following two attributes would attract GST: It is pre-packaged; and It is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder. However, if such specified commodities are supplied in a package that do not require declaration(s)/compliance(s) under the Legal Metrology Act, 2009, and the rules made thereunder, the same would not be treated as pre-packaged and labelled for the purposes of GST levy. It is to be noted that Section 2(l) of the Legal Metrology Act, 2009 defines 'pre-packed commodity' as under: "(l) " pre-packaged commodity" means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity;" Further, the definition of retail package and wholesale package is defined in the chapter II (retail sale) and III (wholesale) of the Legal Metrology (Packaged Commodities) Rules, 2011: 2(k) "retail package" means the packages which are intended for retail sale to the ultimate consumer for the purpose of consumption of the commodity contained therein and includes the imported packages: Provided that for the purpose of "retail food package", the definition of the same contained in the rules or regulations made under the Food Safety and Standards Act, 2006 (34 of 2006) shall apply 2(l) "retail sale", in relation to a commodity, means the sale, distribution or delivery of such commodity through retail sales shops, agencies or other instrumentalities for consumption by an individual or a group of individuals or any other consumer (r) "wholesale package" means a package containing- (i) a number of retail packages, where such first mentioned package is intended for sale, distribution or delivery to an intermediary and is not intended for sale direct to a single consumer; or (ii) a commodity sold to an intermediary in bulk to enable such intermediary to sell, distribute or deliver such commodity to the consumer in similar quantities; or (iii) packages containing ten or more than ten retail packages provided that the retail packages are labeled as required under the rules." Specific Exclusion from levy of GST when Packages of commodities containing quantity of more than 25 kilogram or 25 litre; Cement, fertilizer, and agricultural farm produce sold in bags above 50 kilograms; and Packaged commodities meant for industrial consumers or institutional consumers Certain important clarifications and illustrations Supply of pre-packed atta meant for retail sale to ultimate consumer of 25 Kg shall be liable to GST. However, supply of such pack of 30 Kg thereof shall be exempt from levy of GST. Single package of these items [cereals, pulses, flour etc.] containing a quantity of more than 25 Kg/25 litre would not fall in the category of pre-packaged and labelled commodity for the purposes of GST and would therefore not attract GST. If several packages intended for retail sale to ultimate consumer, say 10 packages of 10 Kg each, are sold in a larger pack, then GST would apply to such supply. Such package may be sold by a manufacturer through distributor. These individual packs of 10 Kg each are meant for eventual sale to retail consumer. A package of say rice containing 50 Kg (in one individual package) would not be considered a pre-packaged and labelled commodity for the purposes of GST levy, even if Rule 24 of Legal Metrology (Packaged Commodities) Rules, 2011, mandates certain declarations to be made on such wholesale package. X' is a rice miller who sells packages containing 20 kg rice but not making the required declaration under legal metrology Act and the Rules made thereunder (although the said Act and the rules requires him/her to make a declaration), such packages would be considered as pre-packaged and labelled commodity for the purposes of GST as it requires making a declaration under the Legal Metrology (Packaged Commodities) Rules, 2011 (rule 6 thereof). Hence, miller 'X' would be required to pay GST on supply of such package(s). At what stage, GST would apply on such supplies GST would apply whenever a supply of such goods is made by any person, i.e. manufacturer supplying to distributor, or distributor/dealer supplying to retailer, or retailer supplying to individual consumer. Further, the manufacturer/wholesaler/retailer would be entitled to input tax credit on GST charged by his supplier in accordance with the Input Tax Credit provisions in GST. A supplier availing threshold exemption or composition scheme would be entitled to exemption or composition rate, as the case may be, in usual manner. Important Notification for effecting changes in GST Changes particularly in respect of food items like pulses, flour, cereals, etc. (specified items falling under Chapters 1 to 21 of the Tariff), as has been notified vide Notification No. 6/2022-Central Tax (Rate), dated July 13, 2022 by amending Notification No. 01/2017- CGST Rate Schedule Central Tax (Rate) dated June 28, 2017 ("the Goods Rate Notification") and the corresponding notifications issued for SGST/ UTGST and IGST. Schedule I - 5% S. No. Chapter/ Heading Particulars 1. 0202, 0203, 0204, 0205, 0206, All goods, other than fresh or 0207, 0208, 0209, 0210 chilled, pre-packaged and labelled. 2. 0303, 0304, 0305, 0306, 0307, All goods, other than fresh or 0308, 0309 chilled and, pre-packaged and labelled. 9A. 0403 Curd, Lassi, Butter milk, pre- packaged and labelled. 13. 0409 Natural honey, pre-packaged and labelled. 16. 0504 All goods, other than fresh or chilled, pre-packaged and labelled. 25. 0713 Dried leguminous vegetables, shelled, whether or not skinned or split, pre-packaged and labelled. 26. 0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, frozen, whether or not sliced or in the form of pellets, pre-packaged and labelled. 30. 08 Dried makhana, whether or not shelled or peeled, pre- packaged and labelled. 45. 10 All goods i.e. cereals, pre- packaged and labelled 46. 1001 Wheat and meslin, pre- packaged and labelled. 47. 1002 Rye, pre-packaged and labelled. 48. 1003 Barley, pre-packaged and labelled. 49. 1004 Oats, pre-packaged and labelled. 50. 1005 Maize (corn), pre-packaged and labelled. 51. 1006 Rice, pre-packaged and labelled. 52. 1007 Grain sorghum, pre-packaged and labelled. 53. 1008 Buckwheat, millet and canary seed; other cereals such as Jawar, Bajra, Ragi, pre-packaged and labelled. 54. 1101 Wheat or meslin flour, pre- packaged and labelled. 55. 1102 Cereal flours other than of wheat or meslin, maize (corn) flour, Rye flour, etc., pre- packaged and labelled. 56. 1103 Cereal groats, meal and pellets, including suji and dalia, pre- packaged and labelled. 58. 1105 Meal, powder, Flour flakes, granules and pellets of potatoes pre-packaged and labelled. 59. 1106 Meal and powder of the dried leguminous vegetables of than guar meal 1106 10 10 and guar gum refined split 0713, of sago or of roots or tubers of heading 0714 or of the products of Chapter 8 pre- packaged and labelled. 101A 210690 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready-for- consumption form, other than those pre-packaged and labelled 182. 3101 All goods i.e. animal or vegetable fertilisers or organic fertilisers, pre-packaged and labelled. 215. 5305 to 5308 All goods other than coconut coir fibre including yarn of flax, jute, other textile bast fibres, other vegetable textile fibres; paper yarn, including coir pith compost, pre-packaged and labelled Schedule II - 12% S. No. Chapter/ Heading Particulars 41A 2009 89 90 Tender coconut water, pre- packaged and labelled. 46. 2106 90 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready-for- consumption form [other than roasted gram], pre-packaged and labelled Further, the CBIC vide Notification No. 07/2022-Central Tax (Rate) dated July 13, 2022 has issued amendments in the Goods Exemption Notification No. 02/2017-Central Tax (Rate) so as to withdraw exemption on certain specified food items, grains etc.,in the following manner: S. No. Chapter/ Heading Particulars 9. 0202, 0203, 0204, 0205, All goods, other than fresh or 0206, 0207, 0208, 0209, chilled, other than pre- 0210 packaged and labelled. 22. 0303, 0304, 0305, 0306, All goods, other than fresh or 0307, 0308, 0309 chilled and, other than pre- packaged and labelled. 26. 0403 Curd, Lassi, Buttermilk, other than pre-packaged and labelled. 27. 0406 Chena or paneer, other than pre-packaged and labelled. 29. 0409 Natural honey, other than pre- packaged and labelled. 30B. 0504 All goods, other than fresh or chilled, other than pre- packaged and labelled. 45. 0713 Dried leguminous vegetables, shelled, whether or not skinned or split, other than pre- packaged and labelled. 46A 0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, frozen, whether or not sliced or in the form of pellets, other than pre-packaged and labelled. 46B 08 Dried makhana, whether or not shelled or peeled, other than pre-packaged and labelled. 65. 1001 Wheat and meslin, other than pre-packaged and labelled. 66. 1002 Rye, other than pre- packaged and labelled. 67. 1003 Barley, other than pre- packaged and labelled. 68. 1004 Oats, other than pre-packaged and labelled. 69. 1005 Maize (corn), other than pre- packaged and labelled. 70. 1006 Rice, other than pre-packaged and labelled. 71. 1007 Grain sorghum, other than pre- packaged and labelled. 72. 1008 Buckwheat, millet and canary seed; other cereals such as Jawar, Bajra, Ragi, other than pre-packaged and labelled. 73. 1101 Wheat or meslin flour, other than pre-packaged and labelled. 74. 1102 Cereal flours other than of wheat or meslin, maize (corn) flour, Rye flour, etc., other than pre-packaged and labelled. 75. 1103 Cereal groats, meal and pellets, other than pre-packaged and labelled. 77. 1105 Flour, powder, flakes, granules or pellets of potatoes, other than pre- packaged and labelled. 78. 1106 Flour, of the dried leguminous vegetables of heading 0713 (pulses) , other than guar meal 1106 10 10 and guar gum refined split 1106 10 90, of sago or of roots or tubers of heading 0714 or of the products of Chapter 8 i.e. of tamarind, of singoda, mango flour, etc., other than pre- packaged and labelled. 94. 1701 or 1702 Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery; Khandsari Sugar, other than pre-packaged and labelled. 95. 1904 Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki, other than pre-packaged and labelled. 97A 2009 89 90 Tender coconut water, other than pre-packaged and labelled. 108. 3101 All goods and organic manure, other than pre-packaged and labelled. 132A 53 Coir pith compost, other than pre-packaged and labelled

1. Vide Notification No. 78/2020 - Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. 2. To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal as below 3. Part 1 of Phase I has already been implemented from 01st April 2022 and is currently live on GST Portal. From 01st August, 2022, Part-II of Phase-I would be implemented on GST Portal and the taxpayers would need to report HSN in table 12 of GSTR-1 as per below mentioned scheme 4. Further phases will be implemented on GST Portal shortly and respective dates of implementation and nature of change would be updated from time to time.

Several amendments have been proposed in the 47th GST Council Meeting.The government issued nine Central Tax (Rate) notifications starting from number 03/2022 to 11/2022 on 13th July 2022. These notifications provide details about the changes in GST rates and shall come into effect from 18th July 2022. The same has been listed below- GST rate hikes and cuts Description of goods or services Old Rate New Rate Cut and Polished diamonds 0.25% 1.50% Tetra Pack (Aseptic Packaging Paper) 12% 18% Tar (From coal, or coal gasification plants, or producer gas plants and coke oven plants) 5%/18% 18% Import of tablets called Diethylcar- -bamazine (DEC) free of cost for National Filariasis Elimination Programme (IGST) 5% Nil Import of particular defence items by private businesses or suppliers for end-consumption of Defence (IGST) Applicable rates Nil Ostomy Appliances 12% 5% Orthopedic appliances such as intraocular lens, artificial parts of the body, splints and other fracture appliances, other appliances which are worn or carried, or body implants, to compensate for a defect or disability 12% 5% Transport of goods and passengers by ropeways (with ITC of services) 18% 5% Renting of truck or goods carriage including the fuel cost 18% 12% List of GST Exemptions Withdrawn Description of goods or services Old Rate New Rate Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed Nil 12% Cheques, lose or in book form Nil 18% Parts of goods of heading 8801 Nil 18% Air transportation of passengers to and from north-eastern states and Bagdogra now restricted to economy class Nil Condition added Transportation by rail or a vessel of railway equipment and material, storage or warehousing of commodities attracting tax such as copra, nuts, spices, jaggery, cotton, etc, fumigation in a warehouse of agri produce, services by RBI, IRDA, SEBI, FSSAI, and GSTN, renting of residential dwelling to GST-registered businesses, and services by the cord blood banks for preserving stem cells Nil Applicable rate Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITC Nil 5% Common bio-medical waste treatment facilities for treating or disposing biomedical waste shall be taxed with availability of ITC, like CETPs Nil 12% Hotel accommodation priced up to Rs.1,000 per day Nil 12% Training or coaching in recreational activities on arts or culture, or sports other than by individuals Nil Applicable rate Earlier partially exempted, now withdrawn Petroleum/ Coal bed methane 5% 12% e-Waste 5% 18% Scientific and technical instruments to public funded research institutes 5% Applicable rate Correction of Inverted tax structure Description of goods or services Old Rate New Rate Solar water heaters and systems 5% 12% Prepared or finished leather or chamois leather or composition leathers 5% 12% Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing 5% 12% Earthwork works contracts and sub-contracts to the Central and state governments, Union Territories and local authorities 5% 12% Pawan Chakki being air-based atta chakki, wet grinder, cleaning, sorting or grading machines for seeds and grain pulses, and milling machines or cereal making machines, etc; 5% 18% Ink for drawing, printing, and writing 12% 18% Knives with paper knives, cutting blades, pencil sharpeners and its blades, skimmers, cake-servers, spoons, forks, ladles, etc 12% 18% Centrifugal pumps, submersible pumps deep tube-well turbine pumps, bicycle pumps that are power-driven mainly for handling water 12% 18% Milking machines and dairy machinery, cleaning, sorting or grading machines and its parts for eggs, fruit or other agri produce 12% 18% Lights and fixture, LED lamps, their metal printed circuits board 12% 18% Marking out and drawing instruments 12% 18% Services by the foreman to chit fund 12% 18% Works contract for railways, metro, roads, bridges, effluent treatment plant, crematorium, etc. 12% 18% Works contract and sub-contract to the Central and state governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals, etc 12% 18% Refund of accumulated ITC for edible oils and coal is disallowed.

Every working individual knows about the CTC (cost to the company) as salary, and some people don't worry about various deductions after seeing them in CTC. Still, some become skeptical after seeing that a chunk of the salary will be deducted as Provident Fund (PF) or EPF (Employees Provident Fund). The primary goal of all financial planning is to achieve a financially secured future. This goal may include getting good interest on savings, a pension after retirement, and other such goals. The Government of India, to ensure this security, has taken some measures such as Employee Provident Fund (EPF) Employees' Provident Fund (PF) is a statutory benefit available to all Indian employees. The Employees' Provident Fund (EPF) is administered and managed by the Central Board of Trustees (CBT), founded by the Central Government, and consists of members from the government, employers, and employees. The Employees' Provident Fund Organization (EPFO) supports board activities. What is Concept of Provident Fund? The Employees' Provident Fund (EPF) is administered and managed by the Central Board of Trustees (CBT), founded by the Central Government, and consists of members from the government, employers, and employees. The Employees' Provident Fund Organization (EPFO) supports board activities. Employers must contribute on behalf of their employees, and employees must donate a portion of their salaries to the provident fund. The money in the fund is retained and administered by the government, with retirees or their surviving families eventually withdrawing it. Eligibility of an employee for Provident Fund Any employee earning up to Rs 15,000 per month is eligible. However, most Indian companies include it as part of every employee's salary package. Any person employed through a contractor or engaged as an apprentice but not being an apprentice under Apprentices Act, 1961. Any person employed for wages for any work of an establishment either manual or otherwise. Different Types of Provident Funds The General type of PF is maintained by government bodies, such as local authorities, the railways, and other such local bodies. The recognized provident fund is applicable to all the organisations with more than twenty employees. These organisations will provide a Universal Account Number (UAN); this helps in transfer of funds from one employer to another. The public provident fund is a voluntary provident fund an employee can associate minimum Rs 50 to maximum Rs 1.5 lakhs and for a compulsory lock in period of 15 years. Contribution to Provident Fund Both the employee and employer contribute equally to the Provident fund. Employer contributes 12% of basic salary and employee contributes 10 or 12% which totals to 24 percent. From this 24%, 3.7% goes to the provident fund and remaining 8.33% towards pension fund. How to check PF balance? One can check the passbook by going to the EPFO portal and following the procedure mentioned on the EPFO website. The important thing is you should have a UAN, which should be linked to your Mobile number. Also, one can download the UMAANG app and view the passbook. How to Withdraw Provident Fund? An individual can withdraw provident funds partially or entirely. An employee can withdraw the provident fund only upon retirement or after unemployment for more than two months and if certain conditions are fulfilled. An Individual can withdraw PF either by online process or offline process. The EPFO portal website has described both the process in detail. Employee provident funds (EPFs) have long been the most popular way for salaried Indians to save for retirement. The author Sushant Gangurde is a legal analyst @Taxblock India who aims to educate people about various tax laws and financial planning.

Loans and credit cards are used borrow funds and have many of the same standard credit provisions. In both loan and credit card agreements you will typically find funds offered from a lender at a specified interest rate, where the payments will be monthly, quarterly, or annually. But beyond having the similar attributes loans and credit cards share also have key differences, such as repayment terms, amount of credit etc. LOANS Lenders offer a variety of options of loans that can affect the credit terms of the borrower. A Loan can be used for many reasons. An unsecured loan can offer funds to finance large purchases, consolidate credit card debt, repair, or upgrade a home, or provide funding to fill a gap in receipt of income. Unsecured loans are not backed by collateral pledged from the borrower. There are several other types of loan with a specific objective such as home loans, auto loans, and other types of secured loans. These loans follow a standard procedure for credit approval, but they may be easier to obtain since they are backed by a lien on assets. Pros Generally suited for purchasing capital assets like homes or cars The rate of interest rate is comparative lesser than a credit card Borrower can avail funds in lump sum or on a quarterly basis Cons Typically includes a service fee and may have other fees that increases the amount of repayment Property used as collateral, such as a car or home, can be seized if you don't repay in a timely manner. CREDIT CARDS Credit cards are classified into different classes of borrowing known as revolving credit where the borrower typically has ongoing access to the funds if their account remains in good standing. Revolving credit card accounts can also be eligible for credit-limit increases on a regular basis. The rates of interest of credit cards are usually higher than personal loans. Credit cards can come in many varieties and offer a lot of conveniences. All credit cards can usually be used anywhere electronic payments are accepted. Credit also gives various rewards points such as cash back, points for discounts on purchases, points for store brand purchases, and points toward travel. can be utilized by the holders while making for subsequent purchases. Pros Ongoing revolving credit cards only charges interests when funds are used for purchases For those with good credit scores, offers like 0% introductory interest rates, grace periods, and rewards are also given Accounts in good standing typically eligible for credit limit increases on a regular basis Cons Interest charged on the credit card are higher than personal loans

Prior to 18th of July, 2022, GST applied on specified goods when they were put up in a unit container and were bearing a registered brand name or were bearing brand name in respect of which an actionable claim or enforceable right in a court of law is available. With effect from the 18th July 2022, this provision undergoes a change and GST has been made applicable on supply of such "pre-packaged and labelled" commodities attracting the provisions of Legal Metrology Act. For example, items like pulses, cereals like rice, wheat, and flour (aata), etc., earlier attracted GST at the rate of 5% when branded and packed in unit container (as mentioned above). With effect from 18.7.2022, these items would attract GST when "prepackaged and labelled". Additionally, certain other items such as Curd, Lassi, puffed rice etc. when "prepackaged and labelled" would attract GST at the rate of 5% with effect from the 18th July, 2022. 1. Now, doubt has raise what is meaning of pre-packed and what is scope of labelled. So, according to Legal Metrology Act, 2009 "pre-packed commodity" means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity. Scope of labelled items Package of commodities containing a quantity of more than 25 kg or 25 litres does not require a declaration to be made under rule 6 thereof. Accordingly, GST would apply on such specified goods where the pre-packaged commodity is supplied in packages containing a quantity of less than or equal to 25 kilogram. So, the declaration will be a must if sold in quantity lesser than 25 kg/ltr, even if seller does not want to declare to avoid GST. Illustration Supply of pre-packed atta meant for retail sale to the ultimate consumer of 25 Kg shall be liable to GST. However, supply of such a 30 Kg pack thereof shall be exempt from levy of GST 2. Even if several packages intended for retail sale to the ultimate consumer, say 10 packages of 10 Kg each, are sold in a larger pack, then GST would apply to such supply. Such packages may be sold by a manufacturer through a distributor. These individual packs of 10 Kg each are meant for eventual sale to retail consumers. 3. GST applies when such goods are sold in pre-packaged and labelled packs. Therefore, GST would apply when the prepackaged and labelled package is sold by a distributor/ manufacturer to such a retailer. However, if for any reason, the retailer supplies the item in loose quantity from such package, such supply by the retailer is not a supply of packaged commodity for the purpose of GST levy.

Q-1 What is Annual Information Statement (AIS)? Ans. Annual Information Statement (AIS) is comprehensive view of information for a taxpayer displayed in Form 26AS. Taxpayer can provide feedback on information displayed in AIS. AIS shows both reported value and modified value (i.e. value after considering taxpayer feedback) under each section (i.e. TDS, SFT, Other information). The objectives of AIS are: Display complete information to the taxpayer with a facility to capture online feedback Promote voluntary compliance and enable seamless prefilling of return Deter non-compliance Q-2 What is the Difference between AIS and Form 26AS? Ans. AIS is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits, GST turnover etc. AIS also provides the taxpayer the option to give feedback on the transactions reported. Further, the aggregation of transactions on information source level is also reported in TIS. Q-3 How can I view the Annual Information Statement? Ans. You can access the Annual Information Statement functionality by following below mentioned steps: Step 1: Login to URL https://www.incometax.gov.in/ Step 2: Click on "Annual Information Statement (AIS)" under "Services" tab from the e-filing portal after successful login on e-filing portal. Step 3: Click on AIS tab, on the homepage. Step 4: Select the relevant FY and click on AIS tile to view the Annual Information Statement. Q-4 What are the components of Annual Information Statement (AIS)? Ans- The information shown on AIS is divided in two parts: PART A- General Information Part-A displays general information pertaining to you, including PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/ Incorporation/ Formation, mobile number, e-mail address and address of Taxpayer. PART- B TDS/TCS Information: Information related to tax deducted/collected at source is displayed here. The Information code of the TDS/TCS, Information description and Information value is shown. SFT Information: Under this head, information received from reporting entities under Statement of Financial transaction (SFT) is displayed. The SFT code, Information description and Information value is made available. Payment of Taxes: Information relating to payment of taxes under different heads, such as Advance Tax and Self-Assessment Tax, is shown. Demand and Refund: You will be able to view the details of the demand raised and refund initiated (AY and amount) during a financial year. (Details related to Demand will be released soon) Other Information: Details of the information received from the other sources, such as data pertaining to Annexure II salary, Interest on refund, Outward Foreign Remittance/Purchase of Foreign Currency etc., is displayed here. Q-5 What does "General information" part contains under AIS? Ans: General information displays the general information pertaining to you, including PAN, Masked Aadhaar Number, Name of the Taxpayer, Date of Birth/ Incorporation/ Formation, mobile number, e-mail address and address of Taxpayer. Q-6 Can I track the Activity history in AIS? Ans- Yes, you can track the activity history in AIS by clicking on the Activity history button on AIS homepage. You will be provided a summary view of activity performed on the AIS functionality. System generated Id (Activity ID) will be created for each performed activity, Activity date, Activity description and detail will be displayed under this tab. Q-7 What does Taxpayer Information Summary (TIS) contain under AIS? Ans. Taxpayer Information Summary (TIS) is an information category wise aggregated information summary for a taxpayer. It shows processed value (i.e. value generated after deduplication of information based on pre-defined rules) and derived value (i.e. value derived after considering the taxpayer feedback and processed value) under each information category (e.g. Salary, Interest, Dividend etc.). The derived information in TIS will be used for prefilling of return, if applicable. You will be shown various details within the Taxpayer Information Summary such as, Information Category Processed Value Derived Value Further, within an Information Category following information is shown: Part through which information received Information Description Information Source Amount Description Amount (Reported, Processed, Derived) Q-8 In what all formats can I download my AIS? Ans. You can download Annual Information Statement (AIS) in PDF, JSON, CSV file formats. Q-9 How do I submit feedback on the information? Ans. You can submit feedback on active information displayed under TDS/TCS Information, SFT Information or Other information by following below mentioned steps: Step 1: Click on "Optional" button mentioned in the Feedback column for relevant information. You will be directed to 'Add Feedback' screen. Step 2: Choose the relevant feedback option and enter the feedback details (dependent on the feedback option). Step 3: Click "Submit" to submit the feedback Q-10 What will happen once I submit the feedback? Ans. Upon successful submission of feedback on AIS information, the feedback will be displayed with the information and the modified value of the information will also be visible with the reported value. The activity history tab will also be updated, and you will be able to download Acknowledgement Receipt. Email and SMS confirmations for the submission of feedback will also be sent. Q- 11 Is there any confirmation will be received on submission of AIS feedback? Ans- Yes, after successful submission of your feedback on AIS information, the activity history tab will be updated, and you will be able to download Acknowledgement Receipt of the same. Email and SMS confirmations for submission of feedback will also be sent. Q-12 What is AIS Consolidated Feedback file? Ans. AIS Consolidated Feedback file (ACF) gives the taxpayers a facility to view all their AIS feedback (other than feedback, 'Information is correct') related information in one pdf for easy understanding. After submitting the feedback of the AIS, you can download the AIS consolidated feedback file (PDF). Q-13 Is there any limit on the number of times I can modify given feedback? Ans. Currently, there is no limit on the number of times you can modify previously given feedback. Q-14 Can I verify the GST turnover in AIS? Ans- Yes AIS does display the information related to GST turnover under the information code (EXC-GSTR3B). The same would be visible in the Other Information tab in AIS. Q-15 Is there any video tutorial available for AIS? Ans- Yes, there is an informational video available on YouTube for AIS. This video can be accessed as mentioned below.

One of the biggest chunks of our earnings goes into paying for accommodation. This could be in the form of home loan EMIs or rent. But if you're a renter, you'd be happy to know that salaried employees who live in rented apartments can claim their House Rent Allowance (HRA) to reduce their taxes. HRA is essentially a part of your salary and is tax exempted under section 10 (13A). In other words, HRA is an allowance given by your employer to pay for your accommodation. You are entitled to claim this allowance even if your employer doesn't pay an HRA or if you're self-employed. The only catch here is that you should be living in rented accommodation to be able to claim HRA on your taxes. Things to Keep in Mind about HRA Deductions You cannot claim HRA if you're paying rent to your spouse HRA can be claimed even if you've taken a home loan HRA can be claimed if you live with your parents by getting a receipt Submitting your landlord's PAN details is mandatory if your rent exceeds INR 1 Lakh How is HRA Calculated? Now that you know what is HRA, let's understand how it's calculated. If you reside in a metropolitan city, your HRA could be close to 50 percent of your basic salary, whereas it will account for 40 percent if you live in any other city. The following factors can also help you estimate your HRA. Actual payable rent – 10% of your basic salary Prescribed HRA amount 50% of the basic salary The minimum estimated amount out of the above mentioned above can be claimed as HRA on your taxes. Let's take an example to understand what is HRA and how is it calculated. Ms. Priya Bhatt lives in a rented apartment in Gurgaon. She pays Rs. 10,000/- every month as rent, which accounts for Rs. 1,20,000 annually. Here's her salary breakup – Basic Salary Rs. 30,000 HRA Rs. 13,000 Conveyance Rs. 2000 Special Allowance Rs. 3000 Medical Rs. 1250 Leave Travel Allowance (LTA) Rs. 5000 Total Rs. 54,250 Deductions PF - INR 2000/- Professional Tax – INR 200/- Now let's calculate Ms Priya's HRA. Actual rent - 10% of basic salary = (₹10,000 x 12) - ₹36,000 = ₹84,000 Actual HRA = ₹13,000 x 12 = ₹1,56,000 50% of basic salary = ₹1,80,000 The least of the three amounts, which is 84,000 in Priya's case, is the HRA deduction that she can claim on her taxes. HRA Exemption Rules 1. Tax Exemption on HRA if the employer doesn't provide deduction benefits Even if your employer doesn't provide tax benefits on house rent allowance, you can claim HRA while filing your income tax. This amount will be received as a refund on TDS. 2. Tax Exemption on HRA if house rent is paid by multiple members of the family In case two members of the family are paying rent, they can both claim HRA if they can provide separate rent receipts. However, only one of them can claim HRA for a single rent payment. 3. Tax exemptions under Section 80GG As mentioned above, Section 80 GG of the Income Tax Act provides tax exemptions against expenditures made toward house rent. However, HRA exemptions under this particular section apply to an employee only when they have not claimed deductions under any other section of the Income Tax (IT) Act.

In the words of Prime Minister Narendra Modi, the Goods and Services Tax (GST) is "a path-breaking legislation for New India". This revolutionary taxation system was rolled out on the midnight of 1 July, 2017 in a ceremony held in the Central Hall of Parliament. GST is not merely a tax reform but a milestone in realising Sardar Vallabhbhai Patel's dream of building 'Ek Bharat - Sreshtha Bharat'C Need For GST Before 1 July 2017, the Indian indirect tax regime was highly fragmented. The Centre and States were separately taxing goods and services. There were many taxes like excise duty, service tax, VAT, CST, purchase tax, entertainment tax etc. In addition, there was a multiplicity of rates, laws and procedures. This caused a heavy compliance burden. Imposition of tax on tax was another serious problem. For example, VAT was levied on a value that included excise duty Input tax credit chain broke as goods moved from one state to another, resulting in hidden costs for the business. There were tax nakas at every inter-state border, creating bottlenecks in inter-state transport of goods. Every state was effectively a distinct market for the industry as well as consumer. Industry's choice of locating factories or warehouses was heavily influenced by the prevailing tax regime rather than pure business consideration, making the industry uncompetitive. The Journey to GST - Timeline 2000 - PM conceptualised GST and set up a committee to design GST model 2003-04 - FRBM Committee formed which recommended introduction of GST 2006 - Union Finance Minister, in the 2006-07 Budget Speech, announced the introduction of GST from April 1, 2010. 2009 - First discussion paper on GST released 2011 - Constitution (115th Amendment) Bill 2011 for incorporating relevant provisions of GST introduced in Parliament 2011-13 - GST Bill referred to Standing Committee 2014 - Constitution (115th Amendment) Bill lapsed with the dissolution of 15th Lok Sabha, necessitating a fresh Constitutional Amendment Bill 2014-15 - The Constitution (122nd Amendment) (GST) Bill, 2014 was introduced and passed in May 2015 August 2016 - The Constitution (101st Amendment) Act was enacted September 2016 - Constitutional changes made vide 101st Amendment come into force. GST Council created, 1st GST Council Meeting held May 2017 - GST Council recommended all the rules 1st July 2017 - GST Launched Post 2014, the Central Government expedited the process, resumed discussions with states and all other stakeholders with new vigour. Two significant initiatives of the Government of India - creation of the GST Council and assuring the States of a guaranteed revenue flow to them proved to be decisive in bringing the States on board. Government of India assuring each State a minimum growth of 14 per cent per year for five years over their revenues. This commitment of Centre clearly showed its belief in the long-term benefits of GST and helped assuage the concerns of the States. Creation of Goods and Service Tax Network (or GSTN), a special purpose vehicle, by the Central Government, for automation of business processes with equal participation of Centre and States, with its adequate resourcing was also a major step taken by the Central Government towards GST. GST collection for the Last Four Years There was a record GST collection of Rs 1.42 lakh crore in March, 2022. The revenue for the month of March 2022 is 15% higher than the GST revenues in March 2021 and 46% higher than the GST revenues in March 2020. Total number of e-way bills generated in the month of February 2022 is 6.91 crore as compared to e-way bills generated in the month of January 2022 (6.88 crore) despite being a shorter month, which indicates recovery of business activity at faster pace. Recent GST Updates 2022 GST Updates 24th June 2022 The 47th GST Council meeting is being held on the 28th and 29th of June 2022 in Chandigarh. Union FM Nirmala Sitharaman is chairing this meeting and may make key recommendations to revise rates for 14 goods and 22 services. Further, the GST exemption list could be trimmed down and modifications to the GSTR-3B format are expected. 26th May 2022 As per the CGST Notification no.7/2022 dated 26th May 2022, the late fee has been waived for the delay in filing GSTR-4 for FY 2021-22, if it is filed between 1st May and 30th June 2022. 24th February 2022 The e-Invoicing system will get extended to those annual aggregate turnover ranging from Rs.20 crore up to Rs.50 crore starting from 1st April 2022, vide notification no. 1/2022 Composition taxable persons and those interested to opt into the scheme for FY 2022-23 must submit declaration on the GST portal in Form CMP-02 by 31st March 2022 1st Feb 2022 The Union Budget 2022 introduced key changes to the GST law- Additional Condition has been imposed for availment of ITC u/s 16(2)- ITC can be availed only if the same is not restricted under Section 38 - as per the details communicated to the purchaser in GSTR-2B. ITC availment: Now ITC Credit will be available till 30th November for the following financial year. (Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September.) Composition dealer registration cancellation dependent on non- filing of GST returns Section 10 Composition Taxpayers Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date. Non-composition tax payer registration cancellation on non-filing of GST returns Registration of a person, other than those paying tax under section 10, can be cancelled if has not furnished returns for such continuous tax period as may be prescribed. Extension in time limit to issue of Credit Notes in respect of supply made in a financial year can be issued by 30th November of next financial year (currently allowed till 30th September). GSTR 1/ GSTR-3B rectification allowed till 30th November Any rectification of error in GSTR-1/ GSTR-3B is now permitted till 30th November of next financial year (currently allowed till 30th September). GST Outward Supply process to be amended Sub Section 2 of Section 37 of CGST omitted by giving away with two way communication process in Return filing. Now filing of details of outward supplies for a tax period on a sequential basis. Now, you cannot file GSTR-1 for Current period if no GSTR-1 for the earlier period is not filed. Rectification of error in GSTR-1 is now permitted till 30th November of next financial year (currently allowed till 30th September). Section 38 of the CGST Act is being substituted for prescribing the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing. The due date for filing return under Section 39 (5), by a non-resident taxable person is prescribed as the 13th day of next month. Section 41 of the CGST Act is being substituted so as to do away with the concept of "claim" of ITC on a "provisional" basis and to provide for availment of self-assessed input tax credit. No ITC in case the supplier does not pay GST. Sections 42, 43 and 43A of the CGST Act are being omitted so as to do away with two-way communication process in return filing. Section 47 of the CGST Act is being amended so as to provide for levy of late fee for delayed filing of TCS returns under section 52. ITC availment on self-assessment basis Section 49 of the CGST Act is being amended so as to provide for prescribing restrictions for utilising the amount available in the electronic credit ledger. Section 49 of the CGST Act is being amended so as to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person. Section 49 of the CGST Act is being amended so as to prescribe the maximum proportion of output tax liability which may be discharged through the electronic credit ledger. Interest to be levied on ITC wrongly availed and utilised. If ITC is not utilised, then interest will not be levied. Section 50(3) substituted retrospectively w.e.f. 01.07.2017. (Clause 110) Section 54 dealing with refund is being amended Explicit refund claim of any balance lying in Electronic Cash ledger under Section 54. Time limit of 2 years provided for claiming tax refund on inward supplies of both goods or services u/s 55, from the last day of the quarter in which said supply was received. GST portal www.gst.gov.in notified Notified Retrospectively as the common portal for all the functions provided under CGST Rules 2017 except for E-way bill generation and for generation of invoices under Rule 48(4), (E- Invoicing) of CGST Rules. Rate of Interest under Section 50(3) (Reversal of Excess ITC wrongly availed and utilized) prescribed as 18% in all cases. GST Rates unintended waste generated during the production of fish meal (falling under heading 2301), except fish oil, is being exempted during the period commencing from the 1st day of July, 2017, and ending with the 30th day of September, 2019 (both days inclusive), subject to the condition that if said tax has been collected, the same would not be eligible for refund. Service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called by the State Governments, has been declared as an activity or transaction which shall be treated neither as a supply of goods nor a supply of service. Retrospectively w.e.f. 01.07.2017. However, no refund shall be made of tax which has been collected, but which would not have been so collected, had the said notifications been in force at all material times. 2021 GST Updates 29th Dec 2021 The 46th GST Council meeting was held on 31st December 2021 in New Delhi. Union FM Nirmala Sitharaman led meeting has decided to defer the GST rate hike to 12% for textiles. CGST Rule 36(4) is amended to remove 5% additional ITC over and above ITC appearing in GSTR-2B. From 1st January 2022, businesses can avail ITC only if it is reported by supplier in GSTR-1/ IFF and it appears in their GSTR-2B. The due date to file GSTR-9 & self-certified GSTR-9C for the FY 2020-21 has been extended up to 28th February 2022. Further amendments are carried out to seizure and detention rules, penalties related to the same, and certain forms such as DRC-10, DRC-22, DRC-23 and APL-01 stands amended with the addition of new form DRC-22A as per Central Tax notification no. 40/2021. 21st Dec 2021 Following are the changes with effect from 1st January 2022- ITC claims will be allowed only if it appears in GSTR-2B as per Section 16(2)(aa). So, the taxpayers can no longer claim 5% provisional ITC under the CGST Rule 36(4) and ensure every ITC value claimed was reflected in GSTR-2B. The officer can issue notice under Section 74 to multiple persons for tax short paid or excess ITC claims by fraud. Now, it is amended that the officer can confiscate and seize goods or vehicles even after concluding proceedings against all persons liable to pay specific or general penalties. The taxpayers cannot file GSTR-1 if the previous period's GSTR-3B was not filed. The GST officers can initiate recovery proceedings without any show-cause notice against taxpayers who under-report sales in GSTR-3B compared to GSTR-1, under Section 75(12). All the e-commerce aggregators into food delivery services or cloud kitchens under Section 9(5) will be liable to pay tax on services provided through them. However, restaurants with accommodation with a tariff per unit of more than Rs.7,500 per day are kept out of the scope. The scope of passenger transport motor vehicles is expanded to include service rendered through omnibus and any other motor vehicle, but not just radio taxi or cab under Section 9(5). Following facilities will henceforth require taxpayers' aadhaar authentication- - To apply for a refund under the CGST Rules 89 (Excess tax, interest, penalty, fees paid) and 96 (IGST paid on goods or services exported out of India) in RFD-01. - To apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21. 24th Sept 2021 With effect from 1st October 2021, the frequency of filing the ITC-04 form has been revised through the Central Tax notification number 35/2021 dated 24th September 2021, as follows- Those with AATO more than Rs.5 crore - Half-yearly from April-September- due on 25th October and October-March due on 25th April. Those with AATO up to Rs.5 crore - Yearly from FY 2021-22 due on 25th April. 1st September 2021 45th GST Council meeting will be held on 17th September 2021. Tax concessions on COVID-19 essentials may be extended, Matter on GST compensation to states may be taken up, correction of inverted tax structure, etc are on the agenda. 29th August 2021 Time limit to avail GST Amnesty Scheme extended up to 30th November 2021. It continues to apply for GSTR-3B from July 2017 up to April 2021 via CGST notification number 33/2021 dated 29th August 2021. Taxpayers can get extended time up to 30th September 2021 to revoke cancelled GST registration if the last date for the same falls between 1st March 2020 and 31st August 2021. It applies if the GST registration is cancelled under Section 29(2) clause (b) or (c) of the CGST Act via CGST notification number 34/2021 dated 29th August 2021. Company taxpayers can continue filing GSTR-1 and GSTR-3B using EVC or DSC up to 31st October 2021 via the CGST notification number 32/2021 dated 29th August 2021. 26th August 2021 From 1st September 2021, taxpayers will not be able to file GSTR-1 or use the IFF for August 2021 on the GST portal if they have pending GSTR-3B filings. It applies if GSTR-3B is pending for the past two months till July 2021 (monthly filer) or for the last quarter ending 30th June 2021 (quarterly filer), as per CGST Rule 59(6). 30th July 2021 A GST registered person whose aggregate turnover in the financial year 2020-21 is up to Rs.2 crore has been given exemption from filing Form GSTR-9 (annual return) for the FY 20202-21. The section 35(5) is omitted and section 44 is amended, so that the taxpayer can submit the reconciliation statement on a self-certification basis instead of being furnished after audit and certification by CA/CMA. The taxpayers having aggregate turnover up to Rs.5 crore are not required to file self-certified GSTR-9C . Further, changes are notified to the format of Form GSTR-9C from FY 2020-21 onwards. 30th June 2021 Any late fee, otherwise chargeable for non-compliance with the dynamic QR code requirement from 1st December 2020 to 30th September 2021, is waived. 01st June 2021 The summary of CBIC notifications is as follows: The amendment of Section 50 through the Finance Act 2021 has been notified to come into effect from 1st July 2017, retrospectively. Now, interest shall be computed on the net tax liability after reducing eligible ITC from the total liability. It is to be noted that the interest shall be debited from the electronic cash ledger. The reduced late fee has been notified for GSTR-1 and GSTR-3B returns from June 2021 onwards. The maximum late fee for GSTR-4 that can be charged will be restricted to Rs.500 per return for nil filing and Rs. 2,000 for other than nil filing. The late fee chargeable for GSTR-7, i.e. TDS filing under GST, shall be a maximum of Rs. 2,000 while late fee per day charged is reduced from Rs.200 to Rs.50 per day of delay per return. CGST notification no. 13/2020 amended for fresh exclusions from the need to issue e-invoices. Now, the e-invoicing system shall not apply to a government department and local authority. 28th May 2021 43rd GST Council meeting took place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and was chaired by Union FM Nirmala Sitharaman. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021. Budget 2021: Updates as on 1st February 2021 Section 16 amended to allow taxpayers' claim of input tax credit based on GSTR-2A and 2B. Henceforth, ITC on invoices and debit notes may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies, and such details have been communicated to the recipient of such invoice or debit note. Section 50 of the CGST Act is being amended to provide for a retrospective charge of interest on net cash liability, with effect from 1st July 2017. With respect to orders received on detention and seizure of goods and conveyance, 25% of penalty needs to be paid for making an application for appeals under section 107 of the CGST Act. Date of applicability is yet to be notified. GST audit requirement by specific professionals such as CAs and CMAs has been removed from the GST law. Section 35 and 44 have been amended in this regard. As per the amendment, only GSTR-9 annual returns on a self-certification basis need to be filed on the GST portal by taxpayers, completely removing the requirement for GSTR-9C, i.e. the reconciliation statement. However, the financial year and date of applicability are yet to be clarified by the government. section 7 of the CGST Act was amended to include a new clause under the definition of supply. Activities or transactions involving the supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration falls under supply and will be liable to tax. Earlier, this supply would have been considered as only supply of goods under schedule II. So, the scope is expanded now for levy. Seizure and confiscation of goods and conveyances in transit are now made a separate proceeding from the recovery of tax from Section 74. Self-assessed tax referred to under section 75 of the CGST Act shall also cover the outward supplies/sales as reported in the GSTR-1 under Section 37 of the CGST Act, but which has been missed out while reporting in the GSTR-3B under Section 39. The provisional attachment shall remain valid for the entire period starting from the initiation of any proceeding till the expiry of a period of one year from the date of order made thereunder. Section 129 is delinked from Section 130. Accordingly, proceedings relating to detention, seizure and release of goods and conveyances in transit will be separate from the levy of penalty for the confiscation of goods and conveyance. The Jurisdictional Commissioner can now call for information from any person relating to any matter dealt with in connection with the Act under Section 151, together with section 168. Further, section 152 is amended to provide an opportunity of being heard before using information obtained under Sections 150 or 151 of the Act The IGST Act was also amended in Section 16, that defines a zero-rated supply. Three amendments were made - (1) To state that supply to SEZ units /developers will be zero-rated only if it is authorised operations. (2) Only notified persons or supplies of goods/services can avail the status of zero-rated when IGST is paid. (3) Foreign exchange remittance will be linked in case of export of goods with the refund.