Latest update 18.10.2024

A. GST update

GSTN – Hard Locking of auto-populated liability in GSTR-3B

It may be noted that tentatively from January 2025 tax period, the GST Portal is going to restrict making changes in auto-populated liability in pre-filled GSTR-3B from GSTR-1/1A/IFF to further enhance accuracy in return filing. It is once again suggested hereby that in case any change is required in auto-populated liability, the same may please be handled through GSTR-1A.

GSTN – Additional FAQs on IMS

The first GSTR-2B on the basis of actions taken in IMS would be generated for the return period Oct’24 on 14th November, 2024. Please see below attachment for some additional frequently asked questions (FAQs) on IMS to get a better understanding of the new functionality.

Lawgics – Judgment No. 185

Synopsis: Since the GST portal for filing Form ITC-02 was non-functional in 2017, faulting the Petitioner for not filing it electronically was unjustified. Hence, impugned order was set aside, emphasizing that procedural lapses caused by administrative failures should not be held against taxpayers.

Webinar on 22.10.2024
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Budgetary Support Scheme is not hit by Doctrine of Promissory Estopple and Legitimate Expectations

by CA Bimal Jain

The Hon’ble Jammu and Kashmir High Court in the case of Sudhir Power Ltd. dismissed the writ petition challenging the government order replacing the Budgetary Support Scheme (“BSS”) providing for reimbursement of Integrated Goods and Services Tax (“IGST”) with Turnover Incentive Scheme, 2021 (“Turnover Incentive Scheme”). Both the schemes were for the benefit of the taxpayers, hence, cannot be said to be “irrational, unreasonable or arbitrary. Therefore, they are not hit by any of the Doctrines i.e. promissory estoppel and legitimate expectation. However, BSS will shall be reviewed by the Finance Department at the end of every financial year to find out its viability with reference to its continuance in the next financial year.

Unless the ITC is both availed and utilized, interest cannot be levied on the registered taxpayer

by CA Bimal Jain

The Hon’ble Calcutta High Court, in the case of M/s Utpal Das v. State of West Bengal [Writ Petition No. 18241 of 2022 dated July 18, 2024] quashed the Orders of the proper officer and the Appellate Authority, where the Assessee claimed excess ITC due to clerical mistake but voluntarily debited its electronic credit ledger by filing Form GST DRC-03 to reverse ITC, interest could not be levied on Assessee.

ED conducts raids in Gujarat in GST fraud case

The Enforcement Directorate on Thursday conducted multi-city searches in Gujarat in connection with a money laundering case linked to a GST “fraud” in which eight people, including a journalist, were arrested recently by the state police, official sources said. About 23 premises in cities of Rajkot, Junagadh, Ahmedabad, Bhavnagar and Veraval were being raided by the federal agency after a case was filed under the Prevention of Money Laundering Act (PMLA), the sources said. Premises linked to arrested journalist Mahesh Langa, who works with The Hindu newspaper, were also being covered.

GST on Corporate-Guarantee from overseas group entity payable only one-time, not periodically: Rajasthan’s AAR

Goods & Services Tax (GST) on corporate-guarantee from overseas group entity payable only one-time, not periodically, Rajasthan’s Authority for Advance Ruling (RAAR) has held. Experts say though the ruling is in line with the Circular, it poses the challenge of paying the full tax upfront for the entire duration of the guarantee.

GoM on GST compensation cess holds first meeting: No new levies until future is decided

The 10-member group of ministers (GoM) on compensation cess decided in its first meeting on Wednesday not to extend the levy to any new item until a final call on its future is taken, said people with knowledge of the matter.

Panel discusses merger of GST compensation cess into taxes

The group of ministers (GoM) on GST compensation cess, under minister of state for finance Pankaj Chaudhary, on Wednesday discussed merger of Compensation cess into GST. States suggested that during the transition of cess, once it is decided to merge with taxes no new goods should be added to the list of luxury, sin and demerit goods.

B. DGFT

DGFT Trade Notice 21/2024-25 dt 17.10.2024

Directorate General of Foreign Trade (DGFT) issued Trade Notice 21/2024-25 dated 17.10.2024 ON Electronic Submission of Appendix 4H Certificates.

C. Income tax

Central Board of Direct Taxes (CBDT) issued notification no. 112/2024 dated 15.10.2024 to make further amendment in the Income-tax Rules, 1962, namely

Central Board of Direct Taxes (CBDT) issued notification no. 114/2024 dated 16.10.2024 to make further amendment in the Income-tax Rules, 1962, namely

Central Board of Direct Taxes (CBDT) issued notification no. 115/2024 dated 16.10.2024 where the Central Government specifies that no collection of tax shall be made under sub-section (1F) of section 206C of the said Act on any payment received from the Reserve Bank of India.

CBDT Notifies Amendments in Income-tax Rules for Ease in Claiming Credit for TCS Collected/TDS Deducted for Salaried Employees and Enabling claiming TCS Credit of Minors in the Hands of Parents

Central Board of Direct Taxes (CBDT) has notified amendments in income-tax rules for ease in claiming credit for TCS collected/TDS deducted for salaried employees and enabling claiming TCS credit of minors in the hands of parents. Sub-section (2B) of Section 192 of the Income-tax Act, 1961 (‘the Act’) was amended vide the Finance (No. 2) Act, 2024 (FA (No. 2)) to include any tax deducted or collected at source under the provisions of Chapter XVII-B or Chapter XVII-BB, as applicable, for the purpose of making tax deductions in the case of salaried employees.

CBDT issues Revised Guidelines for compounding offences under the Income- tax Act, 1961

 In conformity with the  Finance Minister’s budget announcement on simplification and rationalization of compounding procedure, CBDT has issued Revised Guidelines for Compounding of offences under the Income-tax Act, 1961(the ‘Act’) on 17.10.2024.

Direct Tax Vivad se Vishwas Scheme, 2024

Guidance Note 1/2024 on provisions of the Direct Tax Vivad se Vishwas Scheme, 2024 circulated vide CBDT Circular no. 12/2024 dated 15th October, 2024. 

CBDT further extended the due date to file audit report in correct Form 10B/10BB

CBDT  vide Order u/s 119 dated 07th October, 2024 has further extended the due date to file audit report in correct Form 10B/10BB as applicable for A.Y. 2023-24 to 10th November, 2024 from 31st March, 2024 for those taxpayers who have filed Form 10B/10BB till 31st October, 2023 but filed Form 10B instead of Form 10BB and vice-versa.

DGIT (Systems), Bengaluru, lays down the Procedurein relation to The Direct Taxes Vivad Se Vishwas Rules, 2024

The Director General of Income Tax (Systems), Bengaluru, lays down the Procedure for making declaration and furnishing undertaking in Form-1 under Rule 4 of The Direct Taxes Vivad Se Vishwas Rules, 2024

Income Tax raids Googee Properties, Anvita Builders in Telangana

The Income Tax Department conducted searches at the corporate offices of Googee Properties and Developers, as well as Anvita Builders, early Thursday morning.

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