Delhi HC allows revision of GST Form TRAN-1 or TRAN-2 online or manually

Delhi HC allows revision of GST Form TRAN-1 or TRAN-2 online or manually

IN THE HIGH COURT OF DELHI AT NEW DELHI

The Text of the Order as follows :

CM APPL. 14908/2020 (for exemption)

1. Exemption allowed, subject to just exceptions.

2. The application is disposed of.

W.P.(C) 4143/2020

3. The present petition was heard on 21st December, 2020 along with other batch matters relating to difficulties faced by taxpayers in filing form GST TRAN-1 (hereinafter “TRAN-1 Form”). However, considering that the issue involved in the present petition is slightly different as compared to the other batch matters, it is being decided separately by way of this judgment.

4. The Petitioner- R.R. Distributors Private Limited, is engaged in the trading of paper and other like goods. It migrated from the Delhi Value Added Tax Act, 2004 into the GST regime, and as on the appointed date under the GST laws, it had a closing stock of finished goods of Rs. 7,44,41,433/- on which it was entitled to claim transitional input tax credit (hereinafter “ITC”) in terms of Section 140(3) of the CGST Act, 2017 (hereinafter “the Act”). Accordingly, on 22nd November, 2017, the petitioner filed the statutory TRAN-1 Form for transitioning ITC of Value Added Tax (hereinafter “VAT”) of Rs. 23,57,203/- under the DGST Act, 2017. On 27th December, 2017, an additional claim of State tax of Rs. 59,433/- was made and transitional ITC of Rs. 52,166/- was claimed under the Act. For claiming the ITC on the stock of Rs. 7,44,41,433/-, Petitioner filed TRAN-2 Form for which no date had been specified under Rule 117(4)(b)(iii) of the CGST Rules, 2017 (hereinafter “the Rules”). On 4th January, 2018, the Petitioner attempted to file the TRAN-2 Form for availing the transitional credit amounting to Rs. 17,35,293/- on the above stock under the proviso to Section 140(3) of the Act read with Rule 117(4) of the Rules. However, it was not allowed on account of the following reasoning:

a) “you have not declared anything in Part 7B of table 7(a) of TRAN-1, so you are not permitted to fill any details in table 4 of TRAN-2.

b) you have not declared anything in table 7(d) of TRAN-1, so you are not permitted to fill any details in table 5 of TRAN-2”

5. On the same date, the Petitioner informed GSTN about the nonacceptance of TRAN-2 Form via email, however, no response has been received till date.

6. Mr. Rajesh Jain, learned counsel for the Petitioner submitted that when the TRAN-1 Form was filed online, the facility to upload TRAN-2 Form was not available on the common portal. In these circumstances, the Petitioner was advised by his consultant that since its claim fell under proviso to sub-Section 140(3) of the Act, it needed to file the TRAN-2 Form as per Rule 117(4) of the Rules. Unlike Rule 117(1) which prescribed the initial time period of 90 days with further extensions by the Commissioner on the recommendation of the GST Council, initially no time period was specified for Rule 117(4)(b)(iii). Later, by way of Notification No.12/2018- CT dated 7th March, 2018, sub-Clause (iii) was amended, and the registered person was required to file a statement by 31st March, 2018. Mr. Jain submits that TRAN-2 Form was still not available on the portal and the Courts have taken a judicial notice of this fact, as evident by the judgment of Calcutta High Court in the case of M/s Subhas & Company v. Commissioner of CGST and CX, Kolkata North Commissionerate & Ors.1.

7. Mr. Jain further submitted that the respondents are not permitting the Petitioner to upload TRAN-2 Form on account of an inadvertent error committed by it in filing TRAN-1 Form, since it was not able to show the available stock of goods as on 30th June, 2017 in part 7B of table 7(a) and table 7(d) of TRAN-1 Form. After TRAN-1 Form was filed on 27th December, 2017, the portal got locked, thereby preventing the taxpayers from viewing/amending the TRAN-1 Form, and thus, no revision was possible. In these circumstances, when the Petitioner attempted to upload TRAN-2 Form it received the response as noted above, in para 4. The Petitioner was thus prevented, for reasons beyond its control and comprehension, to take transitional credit of CENVAT in accordance with the proviso to Section 140(3) of the Act.

8. Despite opportunity granted, no counter-affidavit has been filed on behalf of the Respondents. However, the counsels appearing for the Respondents controverted the contentions urged by the Petitioner and submit that the mistake committed by the Petitioner cannot be remedied. Since the Petitioner had given incorrect particulars while filing TRAN-1 Form 1, cannot be permitted to file TRAN-2 Form online.

9. We have duly considered the contentions urged by the counsels. Situation similar to the one faced by the present Petitioner has already been considered by this Court in the case of Blue Bird Pure Pvt. Ltd. v. Union of India and Ors.2 In the said case as well, the Petitioner had committed an inadvertent error in showing available stock of goods as on 30th June, 2017 in Column 7(d) instead of 7(a) of the TRAN-1 Form. Noting and relying upon the judgments of this Court in Bhargava Motors v. Union of India and Ors.3, and Kusum Enterprises Pvt. Ltd. and Ors. v. Union of India and Ors.,4 the Court had directed the Respondents to enable the Petitioner to rectify TRAN-1 Form.

10. As can be seen from the aforesaid decisions, this Court has held that inadvertent and genuine mistakes in filling up the correct details of credit in TRAN-1 Form should not preclude taxpayers from having claims examined by the authorities in accordance with law. This Court has consistently been issuing directions to the Respondents and granting relief to such taxpayers. When the Petitioner attempted to upload TRAN-2 Form, it was prevented to do so because of the error committed by him while making the declaration in the TRAN-1 Form, however, the system did not enable the Petitioner to revise TRAN-1 Form on the system. In Blue Bird Pure (supra), this Court had, in fact, observed that the Respondents ought to have provided a facility in the system itself for rectification of errors which are clearly bona fide. Further, the Court had also noticed that although the system provided for revision of a return, the deadline for making the revision coincided with the last date for filing the return i.e., 27th December, 2017, rendering such facility to be impractical and meaningless.

11. Further, this Court, in the case of Aadinath Industries & Ors. v. Union of India and Ors., Lease Plan India Private Limited v. Government of National Capital Territory of Delhi and Ors., Godrej & Boyce Mfg. Co. Ltd. v. Union of India and Ors., Arora & Co v. Union of India & Ors., and M/s Blue Bird (supra), has taken a similar view. In our view, the nonfiling of part 7B of table 7(a) and table 7(d) of TRAN-1 Form cannot impair the rights of the petitioner to claim transitional ITC, if he is otherwise eligible. This Court has observed in numerous decisions that the GST system was in a trial-and-error phase as far as its implementation was concerned and ever since GSTN network became operational, taxpayers genuinely faced difficulties in filing the returns and input tax credit in the GST portal. Acknowledging the procedure and difficulties in claiming input tax credit, this Court and several other High Courts have granted relief to such taxpayers. Failure on the part of the Petitioner to give relevant details in TRAN-1 Form can only be taken as a procedural lapse which should not cause any impediment to its right to claim transitional ITC.

12. We also find force in the submissions of Mr. Jain that the taxpayers were not provided sufficient time to upload the data in TRAN-2 Form. On 4th January, 2018, when the Petitioner attempted to load TRAN-2 Form, no time had been specified under the Rules, which could be deemed to be mandatory. The time period was introduced on 7th March, 2018 through Notification No. 12/2018-CT. By virtue of this notification, in terms of Rule 117(4)(iii)(b), the time period was specified to be up to 31st March, 2018. Thus, even if the retrospective amendment to Section 140, (introduced through Section 128 of the Finance Act, 2020) is taken into consideration, there cannot be any denying the fact that on the date when the Petitioner made an attempt, no time period had been specified. On 7th March, 2018 when the notification was introduced, specifying the time, the Petitioner had already attempted to load TRAN-2 Form, which was denied on the ground of non-filing in part 7B of table 7(a) as well as table 7(d) of TRAN-1 Form.

13. In this view of the matter, we see no reason to deny the Petitioner the relief as sought for in the petition. Accordingly, the petition is allowed, and we direct the Respondents to either open the online portal so as to enable the Petitioner to file the rectified TRAN-1 Form electronically, or accept the same manually with necessary corrections, on or before 30th June, 2021. The Petitioner will thereafter be permitted to correspondingly file the TRAN-2 Form which also shall be accepted either electronically by opening the online portal, or manually.

14. The petition is disposed of in the above terms.

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Deadline of Online Declaration form to claim 20 Unstructured CPE Hours for CY 2020

Deadline of Online Declaration form to claim 20 Unstructured CPE Hours for CY 2020

The Institute of Chartered Accountants of India (ICAI) issued an Online Declaration form to claim 20 Unstructured CPE Hours for the calendar year 2020.

To claim the same you need to submit an Online Declaration form and claim 20 Unstructured CPE Hours for the calendar year 2020.

• Just visit Link.
• Login with your id (membership no.) & Password
• After login click on Submit ULA Online
• Fill in the details & Submit

Last Date to submit: 31st May 2021

“Please also refer to the CPE Advisory on Unstructured Learning Activities as hosted on the CPE Portal,” the ICAI said.

All the members (aged less than 60 years) who are holding Certificate of Practice (except all those members who are residing abroad) are required to Complete at least 120 CPE credit hours in a rolling period of three-years. Complete minimum 20 CPE credit hours of structured learning in each calendar year. Balance 60 CPE credit hours (minimum 20 CPE credit hours in each calendar year) can be completed either through Structured or Unstructured learning (as per Member’s choice).

All the members (aged less than 60 years) who are not holding Certificate of Practice; and all the members who are residing abroad (whether holding Certificate of Practice or not) are required to Complete at least 60 CPE credit hours either structured or unstructured learning (as per Member’s choice) in rolling period of three-years, Complete minimum 15 CPE credit hours of either structured or unstructured learning (as per member’s choice) in each calendar year.

All the members (aged 60 years & above) who are holding Certificate of Practice, are required to Complete at least an aggregate of 90 CPE credit hours of either Structured or Unstructured Learning (as per member’s choice) in a rolling period of three years. Complete minimum of 20 CPE credit hours being an aggregate of either Structured or Unstructured Learning (as per member’s choice) in each calendar year.

What will happen if the CPE hours are not completed?

As per ICAI announcement if a member fails to complete his CPE hours requirement the names of the members with their CPE hours Requirements for the block period of 3 years would be hosted on the website of the ICAI for information of public at large.

Further, the ICAI will not be responsible in any way for any action taken by any of the regulatory authorities on the basis of the names hosted on the website for allotting the professional work to them as sole proprietor or to their partnership firm.

To strike out the name/s from the list so hosted on the website, the member/s shall have to make up any shortfall in their CPE credit hours for the above block period of 3 years by obtaining twice of the amount of the shortfall. Such addition shall be in addition to the regular CPE hours requirement for the particular Calendar year in which they are making up the shortfall.

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GoM on concessions or exemption from GST to COVID relief material

GoM on concessions or exemption from GST to COVID relief material

F.No. S-31011/12/2021-DIR(NC)-DOR
Government of India
Ministry of Finance
Department of Revenue

New Delhi. 29 May, 2021

Office Memorandum

Subject: Constitution of a Group of Ministers (GoM) on concessions/ exemption from GST to COVID relief material-reg.

In pursuance of the decision of the GST Council at its 43rd meeting on 28 May 2021, a Group of Ministers (GOM) has been constituted to examine the issue of GST concessions/ exemption to COVID relief material. The GOM shall consist of the following members:

S. No.	Name	Designation and State
1	Shri Conrad Sangma	Chief Minister. Meghalaya	Convenor
2	Shri Nitinbhai Patel	Deputy Chief Minister, Gujarat	Member
3	Shri Ajit Pawar	Deputy Chief Minister, Maharashtra	Member
4	Shri Mauvin Godinho	Minister for Transport & Panchayati Raj, Housing, Protocol and Legislative Affairs, Goa	Member
5	Shri K.N. Balagopal	Minister for Finance, Kerala	Member
6	Shri Niranjan Pujari	Minister for Finance and Excise, Odisha	Member
7	Shri T. Harish Rao	Minister for Finance, Telangana	Member
8	Shri Suresh Kr Khanna	Minister for Finance, U. P.	Member

2. Terms of Reference: The GOM shall examine the need for GST concession/exemption and make recommendations on –

(i) COVID vaccines, drugs and medicines for COVID treatment, and testing kits for COVID detection;

(ii) Medical grade oxygen, Pulse oximeters, Hand sanitizers, Oxygen therapy equipment such as Concentrators, Generators and Ventilators, PPE kits, N 95 masks, surgical masks, temperature checking equipment; and

(iii) any other items required for COVID relief.

3. The GOM on COV1D relief shall be assisted by a Committee of officers from the Centre and the States as convened by the GOM.

4. The secretarial assistance to this GOM shall be provided by Joint Secretary (TRU-I), CBIC.

5. The GOM shall submit its recommendations to the Council latest by 8 June. 2021.

(Dinesh Bouddh)
Director

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ICMAI Exams for June 2021 Rescheduled

ICMAI Exams for June 2021 Rescheduled

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Ref. No. G/128/05/2021                                                              31st May, 2021

NOTIFICATION

Sub: Reschedule of the time table for Foundation, Intermediate and Final course of June,
2021 term of Examinations

In view of the present acute pandemic situation arising out of the spread of COVID-19, it is hereby notified for information of all concerned that the dates of conducting June, 2021 term of Examinations of the Institute are being rescheduled. The rescheduled time table for Foundation, Intermediate, and Final Course of June, 2021 Examinations will be announced soon.

Those candidates who have already applied will be entitled to appear in the rescheduled examination and the candidates who could not apply will be allowed to submit online Examination Application Form for the rescheduled examination soon.

CMA Kaushik Banerjee
Secretary

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Changes recommended by 43rd GST Council Meeting

Changes recommended by 43rd GST Council Meeting

GST Amnesty Scheme to provide relief to the GST Taxpayers

The late fee for non-furnishing of returns in FORM GSTR-3B for the tax periods from July 2017 to April 2021 has been reduced as under :

Category of Taxpayers	The maximum amount of Late Fee
Taxpayers having NIL tax liability during the respective tax period	Rs. 500/- (Rs. 250/- each for CGST & SGST) per return
Other Taxpayers	Rs. 1000/- (Rs. 500/- each for CGST & SGST) per return

A reduced rate of the late fee would apply if return in FORM GSTR-3B for these tax periods are furnished between 01.06.2021 to 31.08.2021.

Relevant notification to implement the above recommendation is being issued.

Taxpayer Friendly changes recommended by 43rd GST Council Meeting

Rationalization of late fee leviable on account of delay in furnishing return in FORM GSTR-4 by composition taxpayers for prospective tax periods (FY 21-22 onwards)

Category of Taxpayers	Maximum amount of Late Fee
Taxpayers having NIL tax liability	Rs. 500/- (Rs. 250/- each  for CGST & SGST) per return
Other Taxpayers	Rs. 2000/- (Rs. 1000/- each  for CGST & SGST) per return

Taxpayer Friendly changes recommended by 43rd GST Council Meeting

Rationalization of late fee leviable on account of delay in furnishing return in FORM GSTR-3B and FORM GSTR-1 for prospective tax period (June, 2021 onwards)

To reduce burden of late fee on taxpayers, the late fee is being capped, as follows:

Category of Taxpayers	Maximum amount of Late Fee
Taxpayers having nil tax liability/ nil outward supplies	Rs. 500/- (Rs. 250/- each  for CGST & SGST) per return
Other Taxpayers
• For taxpayers having aggregate turnover in preceding FY upto Rs. 1.5 crores	Rs. 2000/- (Rs. 1000/- each  for CGST & SGST) per return
• For taxpayers having aggregate turnover in preceding FY between Rs. 1.5 crores to Rs. 5 crores	Rs. 5000/- ( Rs. 2500/- each for CGST & SGST) per return
•  For For taxpayers having aggregate turnover in preceding FY above Rs . 5 crores	Rs. 10000/- ( Rs. 5000/- each for CGST & SGST) per return

Relevant notification to implement the above recommendation is being issued.

Taxpayer Friendly changes recommended by 43rd GST Council Meeting

Rationalization of late fee leviable on account of delay in furnishing return in FORM GSTR-7

Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.

Taxpayer Friendly changes recommended by 43rd GST Council Meeting

Compliance related relief for Taxpayers registered under the Companies Act

Taxpayers registered under the Companies Act to be permitted to furnish GST returns by using Electronic Verification Code (EVC) instead of Digital Signature Certificate (DSC) till 31.08.2021.

Taxpayer Friendly changes recommended by 43rd GST Council Meeting

105% Cap on ITC Availment applicable on a cumulative basis [Rule 36(4) Relaxation]

Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021.

Taxpayer Friendly changes recommended by 43rd GST Council Meeting

Due Dates Extension

Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days

Extension of the due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.

Extension of the due date of filing ITC-04 for QE March 2021 to 30.06.2021.

Exemption related to Covid relief items

As a COVID-19 relief measure, a number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021. Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.20201. It may be mentioned that these goods are already exempted from Basic Customs duty. Further in view of rising Black Fungus cases, the above exemption from IGST has been extended to Amphotericin B.

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Extension of due date of filing Application for Revocation of Cancellation of GST Registration

Extension of due date of filing Application for Revocation of Cancellation of GST Registration

31/05/2021

“In view of the decision of GST Council taken in its 43rd meeting dt. 28.05.2021, the timeline for filing of the ‘Application for Revocation of Cancellation’ for those applicants, for whom the due date of filing such application was falling between 15 April to 29th June, 2021, has been extended up to 30th June, 2021.”

Thanking You,
Team GSTN

Extension of due date of filing Application for Revocation of Cancellation of GST Registration

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Canara Bank Invites Application for Empanelment as Concurrent Auditors for 529 Branches

Canara Bank Invites Application for Empanelment as Concurrent Auditors for 529 Branches

Canara Bank invites application from the eligible / interested Proprietary Concerns / Firms / LLP for empanelment as Concurrent Auditors for conducting Concurrent / Continuous Audit in the identified 529 branches / units for the period from 01.07.2021 to 30.06.2022.

Terms and conditions for Appointment, Fee structure, Methodology for application / selection, conducting audit / reporting and review of performance of the auditors are furnished.

The letter of Acceptance, undertaking letter and do’s and don’ts to be sent by the selected auditors on receiving the offer letter by way of e-mail from the Bank is furnished in Annexure.

The list of 529 identified branches/ units with address is furnished inAnnexure IV.

Eligible/ interested Propreitary Concerns / Firms / LLP, who are agreeable to the above terms & conditions, may apply online only in the application, on or before 12.06.2021

Application received through online only will be entertained and no other mode will be considered. Refer to instructions.

Please note that hard copies of applications / annexures should not be sent to the Bank unless called for. Bank will not entertain any correspondence/ communication from the applying firms till selection of the firms.

TERMS AND CONDITIONS

A. FOR APPOINTMENT OF EXTERNAL CONCURRENT AUDITORS,
B. FOR CONDUCTING CONCURRENT AUDIT / CONTINUOUS AUDIT OF IDENTIFIED BRANCHES AS PER LIST
C. REGARDING METHOD OF REPORTING & REVIEW OF PERFORMANCE

The following are the terms and conditions for applying for empanelment as Concurrent Auditor in Canara Bank from 1st July 2021 to 30th June 2022:

I. MANDATORY CONDITIONS FOR APPOINTMENT:

1. Applicant should either be a LLP / Partnership firm or Proprietorship, already in the panel of the RBI, which are circulated among the Banks for Statutory Branch Audit of the Banks from time to time. Registration with RBI and category allotted by RBI are mandatory.

2. The empanelment and allocation of branches to the auditors will be purely the prerogative of the Bank. Such empanelment shall be initially for a period of twelve months and can be extended for a period of one year (twice), subject to condition that maximum period of empanelment is not more than three years (36 months).

3. The Concurrent Audit firm should furnish the name, qualification and skill set of the persons, who shall be conducting audit in the branch, to the Bank before commencing audit assignment and such persons will have to continue audit for all the Twelve (12) months.

4. The Concurrent Audit firm shall undertake that they will not sub contract the audit assignment.

5. The Concurrent Audit firm shall not lobby directly or indirectly for considering any credit proposals of their friends / clients to the Bank / auditee branch.

6. “The eligible auditor / firm should be qualified under provisions of Section 141 of Companies Act 2013 for appointment as auditors of the Bank. Auditors should not be disqualified under Section 141 of the Companies Act, 2013 read with Rule 10 of The Companies (Audit and Auditors) Rules,2014 to accept this appointment.”

7. The Concurrent Audit firm or the partners / LLP or its designated partners / or the proprietor or any of their clients should not have any credit facilities with the auditee branch for which they are applying for except credit facilities against their own deposits.

8. The LLP / firm / any partners/designated partners / Proprietor should not have statutory audit (Central audit or Branch Audit), credit audit, valuation of fixed / current assets or any other similar assignments with Bank / or / any branch of Canara Bank.

9. The LLP / firm / any partners/designated partners of the firm / Proprietor should not have any disciplinary matters pending with IBA / ICAI / RBI / National Financial Reporting Authority- NFRA and they should not have suffered any disqualification.

10. The Auditors’ Services should not have been terminated or stopped by our bank earlier for (i) want of satisfactory performance or (ii) serious acts of commission or omission or (iii) professional misconduct or (iv) any other adverse reasons.

If the name of the ECA is appearing in the list of Third Party Entities- TPEs prepared by IBA, or list of entities blacklisted by professional bodies such as ICAI or blacklist of other banks, then no empanelment would be considered.

11. The eligible auditor / LLP / Firm should be having sufficient experience in conducting concurrent audits of Banks / Bank branches.

12. The eligible auditor / LLP / Firm should have their office / infrastructure in the proposed Centre / town / city opted for.

13. No weightage shall be given for audit experience in small finance banks and payment banks.

14. Only one branch will be allotted to a selected firm. However, the Bank has the discretion to change the allocation of the branches based on any administrative exigencies.

15. The offer of appointment shall be treated as provisional till the empaneled audit firm takes up the audit assignment within the stipulated date in the stipulated auditee unit.

For Online Apply

https://canarabankcsis.in/eca/user_valid.aspx

Last Date to Apply 12.06.2021

For Complete Details – https://canarabankcsis.in/eca/

For More Details, Download PDF Given Below Repectively.

List of 529 Branches

Terms and Conditions  

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Join Tally Prime Basic to Advance Certification Course by Studycafe

Join Tally Prime Basic to Advance Certification Course by Studycafe

Tally Prime Basic to Advance Certification Course

In our continuous endeavor to empower more and more finance professionals, this Tally Prime Basic to Advance Certification Course has been designed for you.  A detailed 6 Days course has been designed where daily more than 2 hrs sessions have been organized. This Course contains Videos along with study material. Live training on Tally will be given.

How I will get the course:

This is an online Tally Prime Basic to Advance Certification Course so there will not be any physical delivery of the lectures. After the purchase of the Tally Prime Basic to Advance Certification Course you can see the Tally Prime Basic to Advance Certification Course under my account option under purchased courses. All the videos, stydy materials, PDF files, PPT’s will be uploaded there for quick access of participants. This Tally Prime Basic to Advance Certification Course is valid for 60 Days.

Who is Eligible to Join Tally Prime Basic to Advance Certification Course:

There is no bound on the eligibility from our side for Tally Prime Basic to Advance Certification Course. Any person who want to learn and master in Tally can join this course. However, it will be more beneficial for the below-mentioned persons:

 

Commerce Graduates/CA/CS/CMA/Law students

 

Tax professionals whether in JOB or Practice

 

Qualified CA/CS/CMA/LLB

 

Semi-qualified CA/CS/CMA working in CA Firms or in Industry

 

Any other person not covered above can join course if interested.

Course Duration:

The course duration is around 12 hours.

Certificate:

A Certificate of Participation from the Studycafe will be provided on completion of the Tally Prime Basic to Advance Certification Course.

Views Limitation:

This is a Completely online course, no bar on the number of views. During 60 days you can access this Tally Prime Basic to Advance Certification Course from anywhere at any time with unlimited views.

Course Start Date:

Tally Prime Basic to Advance Certification Course is starting from June 04, 2021.

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What relief GST Amnesty Scheme 2021 has missed to provide?

What relief GST Amnesty Scheme 2021 has missed to provide?

This article discusses all about the “GST Amnesty Scheme 2021”. We will also discuss that who are the taxpayers for which this scheme is beneficial and the taxpayers for which this scheme is not beneficial.

GST Council in its 43rd GST Council Meeting has announced a very much awaited benefit to MSME Sector. The Benefit was GST Amnesty Scheme 2021.

First, let us understand what benefit has been given in GST Amnesty Scheme 2021.

Late Fees for Non-Furnishing GSTR-3B has been waived for the period July 2017 to April 2021. The Waiver/Reduction is as Follows:

• Late Fees Capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) for taxpayers with No Tax Liability
• Late Fees Capped to Rs 1000 (Rs 250 CGST + Rs 250 SGST) for taxpayers with Tax Liability

To avail of this benefit, you need to file your GSTR-3B between 1st June 2021 – 31st August 2021.

Who Benefitted the Most?

This Scheme is helpful especially for Taxpayers who have nill tax liability but could not file their GSTR-3B due to heavy Late Fees Burden.

What relief GST Amnesty Scheme 2021 has missed to provide?

Input Tax Credit [ITC] Relief not given in the GST Amnesty Scheme 2021

As per Section 16 of the CGST Act 2017, the due date for Claiming ITC for Financial Years Covered in the Scheme is as follows:

Year	Due Date of Claiming ITC
FY 2017-18	Due Date of Furnishing GSTR-3B for the month of March 2019
FY 2018-19	Due Date of Furnishing GSTR-3B for the month of September 2019
FY 2019-20	Due Date of Furnishing GSTR-3B for the month of September 2020

Now please understand now since these due dates have lapsed, Taxpayers having Tax Liability have to pay tax, but are not allowed to take Input Tax Credit. For That Reason, the Industry was demanding GST Amnesty Scheme with ITC.

You May Also Refer: GST Amnesty Scheme with ITC

No Cash Refund for Taxpayers who have already paid heavy amount of GST Late Fees

There is no clarification that if a taxpayer who has paid late fees and filed GSTR-3B before the announcement of this scheme will get any Tax Refund. Ideally this an Injustice for them.

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GST Return Late Fees Caping Amendment Proposed in Section 47 of CGST Act

GST Return Late Fees Caping Amendment Proposed in Section 47 of CGST Act

As per Section 47, The Late Fees Applicable on the filing of GSTR-1 & GSTR-3B is Rs 200 Per Month (Rs 100 CGST + Rs 100 SGST/UTGST). The Upper Ceiling is Rs 10000 (Rs 5000 CGST + Rs 5000 SGST/UTGST).

This GST Return Late fee per day was Later Reduced keeping in mind the rationalization of GST Late Fees.

GSTR-1, GSTR-3B & GSTR-4 Late Fees Structure:

Particulars	Amount
Late Fees Per Day in case of Nil Return (CGST+SGST/UTGST)	Rs 20
Late Fees Per Day in case of other than Nil Return (CGST+SGST/UTGST)	Rs 50
Maximum Late Fees (CGST+SGST/UTGST)	10000

The Upper Ceiling of Rs 10000 (Rs 5000 CGST + Rs 5000 SGST/UTGST) was not changed.

Now, this Upper Ceiling has also been rationalized for Form GSTR-1, GSTR-3B & GSTR-4

Thus the GSTR-1 & GSTR-3B New GST Late Fees Structure is as follows:

Late Fees	Per Day	Upper Ceiling
For taxpayers having nil tax liability (CGST+SGST/UTGST)	Rs 20	Rs 500
For taxpayers having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore (CGST+SGST/UTGST)	Rs 50	Rs 2000
For taxpayers having AATO in the preceding year between Rs 1.5 crore to Rs 5 crore (CGST+SGST/UTGST)	Rs 50	Rs 5000
For taxpayers having AATO in the preceding year above Rs 5 crores (CGST+SGST/UTGST)	Rs 50	Rs 10000

Form GSTR-4 Late Fees by Composition Taxpayers

New GST Late Fees Structure

Late Fees	Per Day	Upper Ceiling
For taxpayers having nil tax liability (CGST+SGST/UTGST)	Rs 20	Rs 500
For Other Taxpayers (CGST+SGST/UTGST)	Rs 50	Rs 2000

Besides this Late Fees on GSTR-7 have also been amended. At present the Late Fees is Rs 200 per Day (CGST+SGST/UTGST). The New GSTR-7 Late Fees Structure is as follows:

Form GSTR-7 Late Fees

Late Fees	Per Day	Upper Ceiling
GSTR-7 (CGST+SGST/UTGST)	Rs 20	Rs 2000

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What will happen if you Don’t Link your PAN with Aadhar?

What will happen if you Don’t Link your PAN with Aadhar?

In this article, we have covered all the consequences of Non-Linking of PAN & Aadhar. Please note that as per section 139AA in case of failure to link PAN with the Aadhaar number the Permanent Account Number [PAN] allotted to the person shall be made inoperative. As of now the due date for linking PAN & Aadhar is 30th June 2021.

Below are the consequences of Non-Linking PAN & Aadhar:

1. PAN card cannot be used as proof of Identity

Nowadays PAN Card is widely accepted as proof of Identity. Invalid PAN, definitely cannot be used as proof of Identification.

2. TDS @20% will be deducted by your customer/payee

Inoperative PAN is as good as no PAN. In case the deductee does not hold a valid PAN, Deductor is supposed to Deduduct TDS @20%. [Section 206AA]

You May Also Refer: TDS Rates applicable in case of non-liking of Aadhaar or non-compliance due to non-filing of ITR

3. You will not be able to claim the TDS or TCS

TDS/TCS deducted by Payee is linked with PAN of Deductor which is reflected in 26AS of the Deductee when Deductor files return. Obviously, in case, a deductee with no Permanent Account Number [PAN] cannot claim TDS or TCS.

You May Also Refer: TCS Rate applicable for Financial Year 2021-22

You May Also Refer: TDS Rate applicable for Financial Year 2021-22

4. You will not be able to file your Income Tax Return [ITR]

PAN is the First thing you need to file Income Tax Return. Without PAN a taxpayer cannot file Return of Income Tax which will further lead to various other Non-compliance. To Denote some:

TDS Rate in the case of Non-Filing of ITR

Section 206AB  was introduced by Finance Act 2021. As per this Section, the TDS Rate of

• twice the rate specified in the relevant provision of the Act; or
• twice the rate or rates in force; or
• the rate of five percent

Whichever is higher will be applicable in the case of the Specified non-filers of income tax return [ITR]. Read the Article TDS Rates applicable in case of non-liking of Aadhaar or non-compliance due to non-filing of ITR for Deep Understanding.

Refunds can be processed only if you File ITR

If your TDS has been deducted and you don’t file ITR, you will not get an Income Tax Refund even if your Excess TDS has been deducted.

Carry Forward of Loss

Losses cannot be carry Forwarded in case of Non-Filing of ITR [Income Tax Return] on or before the due date of Return of Income Tax as per Section 139.

You May Also Refer: Extended Due Dates for compliance under Income Tax

Difficulties in Getting Bank Loan

ITR is the primary document demanded by Bank in case you want to avail bank loan. The taxpayer will Face Difficulty in availing Bank Loan in case of non-filing of ITR.

These are just very few consequences. In today’s time, if you want to do business, you just cannot escape the compliance of Filing ITR.

5. GST Number will become Invalid.

Your Permanent Identification Number [PAN] is the base of your GST Number. You need a valid PAN for Goods & Service Tax Number. Else Your GST Number will be canceled. Without a Valid GST Number, one cannot make a Taxable Supply under the Goods & Service Tax Act if you are crossing the threshold of Section 22 of the CGST Act or are compulsorily required to get registered as per Section 24 of CGST Act. Also if you are carrying business on your name, then due to cancellation/suspension/disablement of PAN, you will not be able to generate an E Waybill. All the non-compliances in GST will also fall upon you in case you don’t have a PAN.

6. You will not be able to trade on the stock exchange;

You need a valid PAN for opening a DEMAT Account. Without Valid PAN Stock Market Trading is not Possible.

7. DIN number allotted under Companies Act 2013 and LLPIN used in LLP Act would be invalidated

Director Identification Number [DIN] and  Limited Liability Partnership Identification Number [LLPIN] are linked with your PAN. Without Valid PAN, the same would be invalidated.

8. Overseas remittances would pose challenges;

Without a valid PAN, you cannot make overseas Remittance where you are required to issue bank Form 15CA.

7. IEC number could be suspended.

Again Import Export Code or IEC number is liked with PAN and, your IEC number can be suspended in case you don’t hold a valid PAN.

Besides in the case of Non-Linking, you may be Charged a Fine of Rs. 10,000 as per Section 272B of the Income Tax Act.

These are just some of the consequences. The list is exhaustive, not inclusive. Go link your PAN with Aadhaar now. Don’t wait for tomorrow.

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Few Hrs Left to Join 4 Days Stock Market Certification Course by Studycafe

Few Hrs Left to Join 4 Days Stock Market Certification Course by Studycafe

Join 4 Days Stock Market Certification Course by Studycafe

Stock Market Certificate Course

In our continuous endeavor to empower more and more finance professionals, this Stock Market certification course has been designed for you.  Detailed 4 Days course has been designed where daily more than 2 hrs sessions have been organized. This Course contains Videos along with study material, Excel Files. Live trainning on Excel will be given.

How I will get the Stock Market course:

This is an online Stock Market Certification course so there will not be any physical delivery of the lectures. After the purchase of the Stock Market Certification course you can see the Stock Market Certification course under my account option under purchased courses. All the videos, stydy materials, PDF files, PPT’s, excel files will be uploaded there for quick access of participants. This Stock Market Certification course is valid for 60 Days.

Who is Eligible to Join Stock Market Certification Course:

There is no bound on the eligibility from our side for Stock Market Certification Course. Any person who want to learn and master in Stock Market can join this course. However, it will be more beneficial for the below-mentioned persons:

Click Here to Enroll for Course

 

Commerce Graduates/CA/CS/CMA/Law students

 

Tax professionals whether in JOB or Practice

 

Qualified CA/CS/CMA/LLB

 

Semi-qualified CA/CS/CMA working in CA Firms or in Industry

 

Any other person not covered above can join course if interested.

Stock Market Course Duration:

The course duration is around 8 hours.

Certificate:

A Certificate of Participation from the Studycafe will be provided on completion of the Stock Market Certification course.

Views Limitation:

This is a Completely online course, no bar on the number of views. During 60 days you can access this Stock Market Certification course from anywhere at any time with unlimited views.

Course Start Date:

Microsoft Stock Market Certification Course is starting from May 30, 2021 and will be completed on June 02, 2021.

Course Timing:

Timing: 07:00 PM to 09:00 PM.

Click Here to Enroll for Course

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New Structure of GST Return Late Fees: GST Council Meeting Proposals

New Structure of GST Return Late Fees: GST Council Meeting Proposals

This Article has deeply analysed all the Proposals of 43rd GST Council Meeting like GST Amnesty Scheme, New Structure of GST Late Fees, Interest and Late fee waiver for March, April, May 2021 Monthly GSTR 3B filling, GSTR-4, GSTR-1 & CMP-8 Due Date Extension etc.

Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns:

OLD GSTR 3B: July 2017 to April 2021

Taxpayers	*Maximum late fee	CGST	SGST
Nil Tax Liablity	500	250	250
Other tax payers	1000	500	500

Rationalization of late fee imposed under section 47 of the CGST Act:

New GSTR 3B and GSTR 1* 

Taxpayers	Maximum late fee	CGST	SGST
Nil Tax Liability in GSTR 3B or Nil outward supply in GSTR 1	500	250	250
Other taxpayers	Maximum late fee	CGST	SGST
AATO >=1.5Cr in PY	2000	1000	1000
AATO 1.5 cr to 5 Cr in PY	5000	2500	2500
AATO >5Cr in PY	10000	5000	5000

*Separate late fee for GSTR 3B & GSTR 1- Above limits are not combined

GSTR 4

Taxpayers	Maximum late fee	CGST	SGST
NIL	500	250	250
OTHER	2000	1000	1000

GSTR 7

Taxpayers	Maximum late fee	CGST	SGST
PER DAY	50	25	25
Maximum	2000	1000	1000

Interest and Late fee waiver for March, April, May 2021: Monthly GSTR 3B filling

Tax Period: March 2021

Tax Period	Class of taxpayer (Based on AATO)	Due date of filing	Reduced Rate of Interest			Waiver of late fee till
			First 15 days from due date	Next 45 days	From 61st day onwards
March, 2021	> Rs. 5 Cr.	20th April	9%	18%	18%	5th May 2021
	Up to Rs. 5 Cr	20th April	Nil	9%	18%	19th June 2021

Tax Period: April 2021

Tax Period	Class of taxpayer (Based on AATO)	Due date of filing	Reduced Rate of Interest			Waiver of late fee till
			First 15 days from due date	Next 30 days	From 46st day onwards
April, 2021	> Rs. 5 Cr.	20th May	9%	18%	18%	4th June, 2021
	Up to Rs. 5 Cr	20th May	Nil	9%	18%	4th July 2021

Tax Period: May 2021

Tax Period	Class of taxpayer (Based on AATO)	Due date of filing	Reduced Rate of Interest			Waiver of late fee till
			First 15 days from due date	Next 30 days	From 46st day onwards
May, 2021	> Rs. 5 Cr.	20th June	9%	18%	18%	4th July,2021
	Up to Rs. 5 Cr	20th June	Nil	9%	18%	20th July,2021

QRMP PMT 06-Interest and Late fee waiver for March, April, May 2021

Tax Period: March 2021

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 45 days	From 61st day onwards
March, 2021	20th April	Nil	9%	18%

Tax Period: April 2021

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 30 Days	From 46st day onwards
April-21	25th May	Nil	9%	18%

Tax Period: May 2021

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 15 Days	From 31st day onwards
May-21	26th June	Nil	9%	18%

QRMP GSTR 3B Late fee wavier

Quarter	Due Date	Waiver of late fee till
Jan – March 2021	20th April	19th June 2021

Composition Interest wavier

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 45 days	From 61st day onwards
Jan – March 2021	18th April	Nil	9%	18%

Composition GSTR 4

Tax period	Due Date	New Due date
FY 2020-21	30th April 2021	30th July 2021

Composition GSTR 4- Late fee waiver

Tax liability	Maximum late fee	CGST	SGST
NIL	500	250	250
OTHER	2000	1000	1000

Various Due date extension

Returns	Month	Year	QTR	New Due date
GSTR 1	May-21			26th June,21
GSTR 4		FY 20-21		31st July,21
ITC 04			Jan-March 21	30th June,21

Other benefits

Rule 36(4) of CGST Rules

Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021

Use of EVC By companies

Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.

Section 168A of CGST Act

Relaxations under section 168A of the CGST Act: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April 2021 to 29th June 2021, to be extended upto 30th June 2021, subject to some exceptions. [Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply]

Simplification of Annual Return for Financial Year 2020-21:

Return	Period	Optional for AATO UPTO	Self- Certified
GSTR 9/9A	FY 2020-21	2 CR	YES
GSTR 9C	FY 2020-21	5 CR	YES

Section 50 of CGST Act

Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on a net cash basis, to be notified at the earliest.

Youtube link: https://www.youtube.com/c/CARAHULGOYAL

The contents of this draft are for information purposes only and do not constitute any advice or a legal opinion and are personal views of the creator. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above video. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the creator is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors, or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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Updated GST Return Due Dates as announced in GST Council Meeting

Updated GST Return Due Dates as announced in GST Council Meeting

Due Date for GST Compliances and GST Returns were Further Extended in this GST Council Meeting. This Article Tries to compile the Due Dates for Filing Various Returns.

Monthly Filing for Turnover upto 5 Crore

For Taxpayers who have not Opted for QRMP

Period	Mar-21	Apr-21	May-21
GSTR-1	11-04-2021	26-05-2021	26-06-2021
GSTR-3B	20-04-2021	20-05-2021	20-06-2021
No Late Fees	19-06-2021	04-07-2021	20-07-2021
Interest @ 0%	05-05-2021	04-06-2021	05-07-2021
Interest @ 9%	19-06-2021	04-07-2021	20-07-2021
Interest @ 18%	After 19-06-2021	After 04-07-2021	After 20-07-2021

For Taxpayers who have Opted for QRMP

Period	Jan-21 to Mar-21	Apr-21	May-21
IFF	NA	28-05-2021	28-06-2021
PMT-06	NA	25-05-2021	25-06-2021
GSTR-3B – Category 1	22-04-2021	NA	NA
GSTR-3B – Category 2	24-04-2021	NA	NA
GSTR-1	13-04-2021	NA	NA
No Late Fees for GSTR-3B [C1]	21-06-2021	NA	NA
No Late Fees for GSTR-3B [C2]	23-06-2021	NA	NA
Interest @ 0% [C1]	07-05-2021	09-06-2021	10-07-2021
Interest @ 0% [C2]	09-05-2021
Interest @ 9% [C1]	21-06-2021	09-07-2021	25-07-2021
Interest @ 9% [C2]	23-06-2021
Interest @ 18% [C1]	After 21-06-2021	After 09-07-2021	After 25-07-2021
Interest @ 18% [C2]	After 23-06-2021

Updated GST Return Due Dates as announced in GST Council Meeting

Monthly Filing for Turnover More than 5 Crore

Period	Mar-21	Apr-21	May-21
GSTR-1	11-04-2021	26-05-2021	26-06-2021
GSTR-3B	20-04-2021	20-05-2021	20-06-2021
No Late Fees for GSTR-3B	05-05-2021	04-06-2021	05-07-2021
Interest @ 9%	05-05-2021	04-06-2021	05-07-2021
Interest @ 18%	After 05-05-2021	After 04-06-2021	After 05-07-2021

Composition Dealers

Period	Jan-21 to Mar-21	FY 2020-21
CMP-08	18-Apr-21	NA
Interest @ 0%	03-05-2021	NA
Interest @ 9%	17-06-2021	NA
Interest @ 18%	After 17-06-2021	NA
GSTR-4	NA	31-07-2021

Updated GST Return Due Dates as announced in GST Council Meeting

Certain other COVID-19 related relaxations that are provided are:

1. Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
2. Cumulative application of rule 36(4) for availing Input Tax Credit [ITC] for tax periods April, May and June, 2021 in the return for the period June, 2021.
3. Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended upto 30th June, 2021, subject to some exceptions. It has been clarified that wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply.

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NPS Functionalities released by CRAs during Quarter IV of FY 2020-21

NPS Functionalities released by CRAs during Quarter IV of FY 2020-21

Pension Fund Regulatory and Development Authority

CIRCULAR

CIR No.: PFRDA/2021/15/SUP-CRA/11                                          Date: May 27, 2021

To,

All stakeholders under NPS

Subject: NPS Functionalities released by CRAs during Quarter IV of FY 2020-21

Central Record Keeping Agencies (CRAs) have been appointed by PFRDA to provide system level functionalities as per the evolving needs of NPS stakeholders in accordance with Sec 21 of PFRDA Act 2013.

2. CRAs have the responsibility to develop new functionalities, utilities, establish new processes, and offer multiple models of interface for the uploading offices in order to provide maximum flexibility in terms of operation for the benefit of the subscribers as an ongoing exercise to fulfill their obligations.

3. The functionalities which are developed and made available by CRAs (Refer Annexure I for NSDL-CRA & Annexure II for K Fintech – CRA) during Quarter IV of the FY 2020-21 are categorized as under –

(i)NPS Regular / eNPS

(ii)NPS – Lite/ APY

This Circular is placed in the intermediary section of CRA in PFRDA website (www.pfrda.org.in) for the information of all Stake holders. Any suggestion/feedback on technology features related to NPS/APY and its interface can be offered to the undersigned.

Yours Sincerely

(K. Mohan Gandhi)

k.mohangandhi@pfrda.org.in
General Manager

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Penalty for non display of GST number at declared place of business

Penalty for non display of GST number at declared place of business

Is GST Number is Mandatory to Display on Board?

As per Rule 18 of Goods and Service Tax, every registered person who has opted GST Registration under any state, then that person has mandatorily displayed their registration number on the name board in a prominent location at his principal place of business and at every additional place or places of business.

Display of registration certificate and Goods and Services Tax Identification Number {GSTIN} on the name board.

As Per Rule 18 of CGST Rules 2017, (1) Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or place of business.

(2) Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or place of business.

Penalty for non-display of GST number at declared place of business was imposed under ‘General Penalty’ Section 125 of CGST Act 2017, Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.

Expected Compliance:  The above rule clearly says that every registered person shall display his certificate of registration at his principal place of business and at every additional place or place of business. It is also required to display his GSTIN on the name board which should be exhibited at the entry of his principal place of business and at every additional place or place of business.

Penalty: Section 125 of the Central Goods and Service Tax Act, 2017 read with relevant provisions of SGST/UTGST Act, prescribes a general penalty for contravention of any of the provisions of the Act or the Rules made thereunder. Therefore, a registered taxable person who does not follow the provisions contained in Rule 18 will be liable for a penalty that may extend to Rs. 50,000/- [Rs. 25,000/- as per CGST Act + Rs. 25,000/- as per SGST Act].

To conclude this article, I just wanted to say that if you are taking registration under GST in the state, then no matter whether it is voluntary or compulsory or under composition scheme you have to mandatorily display GSTIN on Board.

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RBI- Threshold level of inflation of Indian economy

RBI- Threshold level of inflation of Indian economy

RESERVE BANK OF INDIA

PRESS RELEASE

May 24, 2021

DRG Study No. 45: Threshold Level of Inflation – Concept and Measurement

The Reserve Bank of India today released on its website the DRG Study∗ titled, “Threshold Level of Inflation – Concept and Measurement”. The study is co-authored by Professor Ravindra H. Dholakia, Dr. Jai Chander, Smt. Ipsita Padhi and Shri Bhanu Pratap.

The study examines the concept of threshold inflation and defines it as the long run equilibrium rate of inflation that maximises the steady state growth within the relevant range of values. The empirical findings of the study broadly confirm higher threshold inflation and higher growth in emerging market economies than in advanced economies.

(Yogesh Dayal)
Chief General Manager

Press Release: 2021-2022/265   

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Reap the potentials of healthcare sector with cheaper investment option

Reap the potentials of healthcare sector with cheaper investment option

Balwant Jain

Investors are expecting the healthcare sector to perform better than other sectors in the long term. In this article I wish to explain why and how one should invest in the healthcare sector to reap the potentials.

Why investment in health sector looks attractive

The Second wave of Covid-19 has already shattered all of us and there are warnings about the third wave looming large. The speed with which the second wave spread has taken everyone by surprise and shock.

It has made all of us realise the importance and inadequacies of medical infrastructure in the country. This realisation will push the governments to make huge investments in healthcare sector in the years to come. The inadequacies of the available facilities is evident from the economic survey of 20-21 which mentioned that a total of 15,99,870 lives were lost due to poor quality of healthcare in the country. Ramping up of health infrastructure is not a short term task which can be completed in a few months. It will take years altogether for us to have a reputable level of infrastructure in place.

Moreover, healthcare is a sector which needs to constantly innovate to remain relevant. The innovations relate to the process of treatments as well the diagnostic and treatment methods used for treatment of the patient. The innovations need constant investment and spending.

Schemes like Ayushyaman Bharat Yojana will hugely increase the demand of hospital infrastructure as well other dependent services like diagnostics and pharmaceutical products. All these will open up huge opportunities for the companies engaged in various activities connected with healthcare sector. This all points to importance of investing in healthcare sector.

How one can invest safely in healthcare sector

Since health infrastructure comprises of various activities related with health service and as there are hundreds of companies engaged in providing these services, it is not possible for an average investor to identify and invest in companies which have potentials to perform better.

In order to measure performance of various sectors, NSE and BSE have devised various indexes. NSE has Nifty Healthcare Index to measure performance of health care sector. The Nifty Healthcare index represents various companies engaged in manufacturing of pharmaceutical products, diagnostics, medical equipment and tools and those running hospitals. It is represented by 20 leading companies engaged in the above four segments of health care.

Since you can neither invest in the index directly nor can practically invest in all the constituent companies of the index, mutual fund houses offer you passive schemes which imitate various indexes. In order to cater to the needs of the investors to invest in the healthcare Sector ICICI prudential mutual fund has come out with new fund offer of Nifty Healthcare Index Exchange Traded Exchange (ETF). The New Fund offer was open from 6th May and 14th May. You can invest in these ETFs on stock exchanges as the same have now been listed. This offers you the opportunity to invest in all the top 20 companies of the sector without having to do any research. It will not be out of place to point out that the Nifty Healthcare Index has outperformed the Nifty 50 Index 6 out of 10 times till 2021.

Why invest through ETF

Exchange traded funds are generally the units of schemes which track a particular index fund but are traded on stock exchanges. So the ETFs are passive funds imitating an index. The days of actively schemes beating the benchmark consistently are over and therefore investors have started investing in passive funds. The same is evident from the fact that global AUM of ETF has gone up from 1313 Billion USD in 2010 to 7336 billion USD in 2020 representing CAGR of 18.77%.

Investing in ETF is very cost effective as the fund management charges of ETF are substantially lower than the actively managed fund. Moreover, as the ETFs are traded on the stock exchange on real-time basis reflecting movement of particular segment of the market at any given point of time, it offers you the opportunity to reap the benefit of intraday volatility in the market. This opportunity is not available for investments made through non ETF schemes of mutual funds as the transactions in these schemes are done at single NAV arrived at after close of the market. For investing in ETF, one needs to have a trading account with stock broker as well as demat account.

Taxation of the proposed EFT

ICICI prudential ETF is an equity oriented scheme so any capital gains made on transfer of these ETFs shall be taxed at concessional rates. Any gains made on transfer/sale of these ETFs within one year shall be taxed at 15% and shall also be eligible for rebate under Section 87A in case the total taxable income does not exceed five lakhs.

The profits made on selling of these ETFs after 12 months shall be taxed at flat rate of 20% after initial exemption of one lakh. The initial exemption of one lakh is available for the aggregate of profits made on all listed shares and equity oriented mutual funds schemes like this ETF taken together.

The writer is a tax and investments expert and can be reached at jainbalwant@gmail.com

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GST Audit for FY 2020-21 not required: GST Council Meeting

GST Audit for FY 2020-21 not required: GST Council Meeting

Amendments in sections 35 and 44 of CGST Act made through Finance Act, 2021 to be notified. This would ease the compliance requirement in furnishing reconciliation statements in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21.

The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore;

The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.

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43rd GST Council Meeting Decisions: Official Press Release

43rd GST Council Meeting Decisions: Official Press Release

43rd Meeting of the GST Council
New Delhi, 28th May, 2021
***
PRESS RELEASE
(GST rates on Goods and Services)

The GST Council in its 43rd meeting held on 28th May, 2021 at New Delhi took the following decisions relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure.

Covid relief items

1. As a COVID-19 relief measure, a number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021. Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.20201. It may be mentioned that these goods are already exempted from Basic Customs duty. Further in view of rising Black Fungus cases, the above exemption from IGST has been extended to Amphotericin B.

2. As regards individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021.

Other goods

3. To support the Lympahtic Filarisis (an endemic) elimination programme being conducted in collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%).

4. Certain clarifications/clarificatory amendments have been recommended in relation to GST rates. Major ones are:

a. Leviability of IGST on repair value of goods re-imported after repairs

b. GST rate of 12% to apply on parts of sprinklers/ drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) to apply even if these goods are sold separately.

5. Services

i. To clarify those services supplied to an educational institution including anganwadi (which provide pre-school education also), by way of serving of food including mid- day meals under any midday meals scheme, sponsored by Government is exempt from levy of GST irrespective of funding of such supplies from government grants or corporate donations.

ii To clarify these services provided by way of examination including entrance examination, where fee is charged for such examinations, by National Board of Examination (NBE), or similar Central or State Educational Boards, and input services relating thereto are exempt from GST.

iii To make appropriate changes in the relevant notification for an explicit provision to make it clear that land owner promoters could utilize credit of GST charged to them by developer promoters in respect of such apartments that are subsequently sold by the land promotor and on which GST is paid. The developer promotor shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of completion certificate.

iv To extend the same dispensation as provided to MRO units of aviation sector to MRO units of ships/vessels so as to provide level playing field to domestic shipping MROs vis a vis foreign MROs and accordingly, –

(a) GST on MRO services in respect of ships/vessels shall be reduced to 5% (from 18%).

(b) PoS of B2B supply of MRO Services in respect of ships/ vessels would be location of recipient of service

v. To clarify that supply of service by way of milling of wheat/paddy into flour (fortified with minerals etc. by millers or otherwise )/rice to Government/ local authority etc. for distribution of such flour or rice under PDS is exempt from GST if the value of goods in such composite supply does not exceed 25%. Otherwise, such services would attract GST at the rate of 5% if supplied to any person registered in GST, including a person registered for payment of TDS.

vi. To clarify that GST is payable on annuity payments received as deferred payment for construction of road. Benefit of the exemption is for such annuities which are paid for the service by way of access to a road or a bridge.

vii To clarify those services supplied to a Government Entity by way of construction of a rope-way attract GST at the rate of 18%.

viii To clarify that services supplied by Govt. to its undertaking/PSU by way of guaranteeing loans taken by such entity from banks and financial institutions is exempt from GST.

6. Measures for Trade facilitation:

1. Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns:

To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: –

i. late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;

ii. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;

The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.

2. Rationalization of late fee imposed under section 47 of the CGST Act:

To reduce burden of late fee on smaller taxpayers, the upper cap of late fee is being rationalized to align late fee with tax liability/ turnover of the taxpayers, as follows:

A. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be capped, per return, as below:
(i) For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST)

(ii) For other taxpayers:

a. For taxpayers having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore, late fee to be capped to a maximum of Rs 2000 (1000 CGST+1000 SGST);

b. For taxpayers having AATO in preceding year between Rs 1.5 crore to Rs 5 crore, late fee to be capped to a maximum of Rs 5000 (2500 CGST+2500 SGST);

c. For taxpayers having AATO in preceding year above Rs 5 crores, late fee to be capped to a maximum of Rs 10000 (5000 CGST+5000 SGST).

B. The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return, if tax liability is nil in the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST) per return for others.

C. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.
All the above proposals to be made applicable for prospective tax periods.

3. COVID-19 related relief measures for taxpayers:

In addition to the relief measures already provided to the taxpayers vide the notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers:

A. For small taxpayers (aggregate turnover upto Rs. 5 crore)

a. March & April 2021 tax periods:

i. NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, reduced rate of 9% thereafter for further 45 days and 30 days for March,2021 and April, 2021 respectively.

ii. Waiver of late fee for delay in furnishing return in FORM GSTR-3B for the tax periods March / QE March, 2021 and April 2021 for 60 days and 45 days respectively, from the due date of furnishing FORM GSTR-3B.

iii. NIL rate of interest for first 15 days from the due date of furnishing the statement in CMP-08 by composition dealers for QE March 2021, and reduced rate of 9% thereafter for further 45 days.

b. For May 2021 tax period:

i. NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, and reduced rate of 9% thereafter for further 15 days.

ii. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for taxpayers filing monthly returns for 30 days from the due date of furnishing FORM GSTR-3B.

B. For large taxpayers (aggregate turnover more than Rs. 5 crore)

i. A lower rate of interest @ 9% for first 15 days after the due date of filing return in FORM GSTR-3B for the tax period May, 2021.

ii. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax period May, 2021 for 15 days from the due date of furnishing FORM GSTR-3B.

C. Certain other COVID-19 related relaxations to be provided, such as

1. Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
2. Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
3. Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
4. Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021.
5. Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.

D. Relaxations under section 168A of the CGST Act:

Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended upto 30th June, 2021, subject to some exceptions.

[Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply]

4. Simplification of Annual Return for Financial Year 2020-21:

i. Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be notified. This would ease the compliance requirement in furnishing reconciliation statement in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21.

ii. The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore;

iii. The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.

5. Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.

7. Other Measures

i. GST Council recommended amendments in certain provisions of the Act so as to make the present system of GSTR-1/3B return filing as the default return filing system in GST.

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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.

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