Professional Updates

Initial Remarks: -

Budget 2023 is the 1st Budget of Amrit Kaal. With India presiding over G20, focus is on sustainable economic development. Current year growth is   estimated at 7% which is highest among other countries which indicates that India is on right path. Mission is to have Technology driven & Knowledge based economy with robust finance sector.

With the 1st announcement, that free foodgrain which were provided over past 28 months to 80 crores will be further provided for period of 12 months starting from 1/1/23, Finance minster introduce the theme of budget quoting “Budget is based on 7 priorities to act as SaptaRishi that’ll guide us through Amrit kaal: -

       Inclusive development: -

• • •  Stretched the need of “Sabka Saath, Sabka Vikas”, pointed out the sustained focus on Jammu & Kashmir, Ladakh and North East

       Reaching last mile: -

• • •  Focus was on how the development should reach to each & every district.

       Infrastructure & Investment: -

• • • This was major focus of everyone which met the expectations as capital expenditure is increased 3rd time in a row by 33% to 10 lac crores which is 3.3% of GDP and 3 times the outlay of 19-20.

    • Railway has been allotted 2.4 lac crore capital outlay which is 9 times the outlay made in 13-14.

    • 50 additional Airports, Heliports for improving regional air connectivity.

       Unleashing the Potential: -

• • • Stressed on how the strengths of India be utilized for overall development of nation.

       Green Growth: -

• • At global platforms India has talked about “Life style  for environment” & “Net zero emission” which found mention in Budget speech. Finance minister said that India is moving efficiently towards its goal to achieve Net zero emission by 2070.

  • Schemes like Green Growth Credit & PM PRANAM yojana for balance use of Fertilizer will be launched.

       Youth Power: -

• • • National Education policy found mention in the speech. PM Kaushal Vikas Yojana 4.0 will be launched to skill lacs of youth over period of next 3 years. For skill development of Youth for international opportunity 30 skill India international centers will be setup across states. Skills like coding, AI, drones  (mainly technology driven) will be focused.

       Finance Sector: -

• • Revamp of scheme for Credit Guarantees for MSME’s from 1/4/23 through infusion of 9000 crore & also to reduce cost of capital by 1%.

  • Various regulations for GIFT City IFSC.

  • Setting up National Financial Information registry.

  • Mahila Samman Bachat Patra – One-time new small savings scheme for a 2-year period with deposit facility up to 2 lac for women.

Revised estimates (2022-2023)

Fiscal deficit estimated at 6.4% of GDP with receipts estimated at 24.3 lac crore including tax receipts of 20.9 lac crore & expenditure of 41.9 lac crore including capex of 7.3 lac crore

Budgeted estimates (2023-2024)

Fiscal deficit estimated at 5.9% of GDP, Govt has set a goal to bring fiscal deficit below 4.5% by 2025-26, Finance minister said that we’re confident of achieving the same at current developments.

Receipts estimated at 27.20 lac crore including tax receipts of 23.30 lac crore & expenditure of 45 lac crore including capex of 10 lac crore.

PART B – Direct & Indirect Taxes

   Direct Taxes  

    (Changes are made to simplify & rationalize provision to reduce compliance burden & provide tax relief)

• • •       Slab rate changes for new tax regime: -  

  0 – 3 lacs        - 0%             

  3 – 6 lacs        - 5%             

  6 – 9 lacs        - 10%         

  9 – 12 lacs      - 15%

  12 – 15 lacs    - 20%

  above15 lacs  - 30%

•       Standard deduction for salaried employees increased up to 52500 under new tax regime.

•       Limit for Rebate under 87A increased from 5 lac to 7 lac under new tax regime.­­­­

•       Highest surcharge reduced from 37% to 25% under new tax regime.

•       Tax exemption on leave encashment for non govt salaried employees increased from 3 lacs to 25 lacs.

•       New tax regime = Default tax regime, Tax payer can opt for old tax regime.

•       MSME’s having turnover up to 3 crores (earlier 2 crore) & professionals having gross receipts up to 75 lacs (earlier 50 lacs) can avail                  presumptive taxation provide cash receipts are not more than 5%.

•       Extended date of incorporation for startups to avail Income Tax benefits from 31/3/23 to 31/3/24.

•       Cap of 10 crore for claiming deduction from capital gains under section 54 & 54F.

•       Limited exemption from proceeds of LIC with higher value

•       New manufacturing companies can opt to tax at lower rate of 15%, date extended till 31/3/24.

•      100 joint commissioners for disposal of small appeals.

   Indirect Taxes  

    (Changes are made to promote exports, increase domestic manufacturing & green energy)

•      Customs duty on various things have been increased / decreased.­

•      CD on goods to be reduced, Relief on CD on import of certain parts of mobile phones

•      CD on electric chimney. Compounded rubber & cigarettes increased.

            "Direct Tax Collections Surge by Nearly 18% in FY 2023-24"

• The provisional figures of Direct Tax collections up to 09.10.2023 continue to register steady growth, with gross collections at INR 11.07 lakh crore, which is 17.95% higher than the gross collections for the comparable period of last year.

• Direct Tax collection, net of refunds, stands at INR 9.57 lakh crore which is 21.82% higher than the net collections for the comparable period of last year. This collection is 52.50% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24.

• Refunds amounting to INR 1.50 lakh crore have been issued during 01.04.2023 to 09.10.2023.

      "Form 60 Exemption"

The Income-tax (Twenty-fourth Amendment) Rules, 2023 were notified on 10.10.2023, by the Central Board of Direct Taxes (CBDT). These rules amend the Income-tax Rules, 1962, to exempt non-resident individuals (not being companies) and foreign companies from submitting Form 60 in respect of certain transactions specified under Rule 114B of the Income-tax Rules, 1962, provided that:

• the transaction is entered into with an IFSC banking unit, and

• the non-resident individual or foreign company does not have any income chargeable to tax in India.

52nd GST Council meeting took place on 07.10.2023 at Sushma Swaraj Bhawan, New Delhi. The meeting was presided by Smt. Nirmala Sitharaman, the Union FM and attended by MoS (F) Shri Pankaj Chaudhary, the Revenue Secretary, Chairman CBIC, Member CM, Member GST, Member TP and senior officers from Union Government and States.

The 52nd GST Council meeting is being held about two months after the 51st GST Council meeting on 02.08.2023.

1. Recommendations:

• Recommends Amendments in conditions of appointment of President and Member of the proposed GST Appellate Tribunals regarding eligibility and age.

• Recommends Nil rate for food preparation of millet flour in powder form and containing at least 70% millets by weight when sold in loose form, and 5% if sold in pre-packaged and labelled form.

• Recommends to keep Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption outside GST.

• Recommends reducing GST on molasses from 28% to 5% in relief to cane farmers for faster clearance of dues and to reduce cost of manufacturing cattle feed.

• To promote tourism, GST Council recommends conditional and limited duration IGST exemption to foreign flag foreign going vessel when it converts to coastal run.

• Recommends Amendments in conditions of appointment of President and Member of the proposed GST Appellate Tribunals regarding eligibility and age.

• A GST Amnesty Scheme to extend the appeal filing time till 31.01.2024 against the three-month time limit under the law for all the orders passed till March 2023 with 12.5% pre-deposit of tax, out of which 2.5% is paid in cash. A GST Amnesty Scheme to extend the appeal filing time till 31.01.2024 against the three-month time limit under the law for all the orders passed till March 2023 with 12.5% pre-deposit of tax, out of which 2.5% is paid in cash. A GST Amnesty Scheme to extend the appeal filing time till 31.01.2024 against the three-month time limit under the law for all the orders passed till March 2023 with 12.5% pre-deposit of tax, out of which 2.5% is paid in cash. A GST Amnesty Scheme to extend the appeal filing time till 31.01.2024 against the three-month time limit under the law for all the orders passed till March 2023 with 12.5% pre-deposit of tax, out of which 2.5% is paid in cash. 

• CGST Section 159 to be amended: Automatic restoration of provisionally attached property after completion of one year.

• Clarified that no GST would apply on personal guarantee offered by directors to the bank against the credit limits/loans sanctioned to the company.

• Defined the taxable value for corporate guarantee provided between related persons (a holding company to its subsidiary) as 1% of the amount of such guarantee offered, or the actual consideration, whichever is higher. 

2. "Rules defined for Composition of GSTAT"

• Minimum age limit is 50 years while the maximum is 70 years for the President and 67 years for members of GSTAT. 

• Advocates with 10 years experience can only be appointed as judicial members.

3. "Clarifications given on Key Issues"

• The District Mineral Foundation Trust (DMFT) in mineral mining are eligible for the same GST exemptions as other government authorities. 

• Job work services to process barley into malt attract 5% GST and not 18%, being "job work in relation to food and food products”.

• 18 states have passed the amendments to charge 28% GST on gaming companies w.e.f 1.10.2023 along with the GST Rules while 13 are yet to notify changes.

4. "GST Rate changes"

• Millet flour in powder form is blended with any other atta with 70% composition of millets under (HS1901) to attract 0% GST if sold loose and 5% GST if sold pre-packaged and labelled.

• GST on molasses has been reduced from 28% to 5%.

• GST on ENA for industrial use to attract 18% by a separate tariff HS code. 

• 5% GST on imitation zari thread or yarn made out of metallised polyester film or plastic film (HS 5605) without refund due to inversion.

• GST exempted on water supply services, public health, etc., supplied to the government authorities, including composite services with up to 25% of the above services. 

• A conditional IGST exemption is given to a foreign flag and foreign going vessel when it converts to coastal run subject to its reconversion in six months.

• GST exempted on pure and composite services to Central/State/UT governments and local authorities for Panchayat/Municipality functions.

• Bus operator companies selling through e-commerce are excluded from CGST Section 9(5) to allow them to pay GST and avail ITC claims. 

• All services provided by Indian Railways will be subjected to forward charge, with ITC available for discharging liabilities.

"GST Revenue Collection in September 2023"

• In September 2023, the gross GST revenue collected reached an impressive INR 1,62,712 crore. 

• This amount includes contributions from various GST components: 

a). CGST (Central Goods and Services Tax): INR 29,818 crore 

b). SGST (State Goods and Services Tax): INR 37,657 crore 

c). IGST (Integrated Goods and Services Tax): INR 83,623 crore (including INR 41,145 crore collected on the import of goods) 

d). Cess: INR 11,613 crore (including INR 881 crore collected on the import of goods)

• This marks the 4th time in the fiscal year 2023-24 that gross GST collection has crossed the INR 1.60 lakh crore mark

"Over 30 lac Audit reports filed successfully"

The Ministry of Finance reported that More than 30.75 lakh audit reports, encompassing approximately 29.5 lakh Tax Audit Reports (TARs), have been successfully filed for the assessment year 2023-24. These filings were made on the Income Tax Department’s e-filing portal, and they were completed by the due date of 30.09.2023.

"Extention of due date for filing of Form 10B/10BB and Form ITR-7"

The due date of furnishing Audit reports in Form 10B/Form 10BB for the Financial Year 2022-23, which is 30.09.2023 has now been extended by the Central Board of Direct Taxes (CBDT) to 31.10.2023.

• Form 10B is an audit report that must be filed by charitable and religious trusts under Section 12AB of the Income-tax Act, 1961.

• Form 10BB is an audit report that must be filed by educational and medical institutions under Section 10(23C) of the Income-tax Act, 1961.

• Form ITR-7 is the income tax return form that must be filed by charitable and religious trusts, political parties, scientific research institutions, universities, colleges, and other institutions.

"𝐒𝐭𝐚𝐭𝐞 𝐁𝐞𝐧𝐜𝐡𝐞𝐬 𝐨𝐟 𝐆𝐒𝐓 𝐀𝐩𝐩𝐞𝐥𝐥𝐚𝐭𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥 𝐎𝐟𝐟𝐢𝐜𝐢𝐚𝐥𝐥𝐲 𝐍𝐨𝐭𝐢𝐟𝐢𝐞𝐝"

The Finance Ministry notified the constitution of 31 Appellate Tribunals across 28 States and 8 Union Territories for the Goods and Services Tax (GST), setting the stage to resolve a growing number of taxpayer disputes with the Revenue Department. As of 30.06.2023, the number of pending appeals from taxpayers over central GST levies had spiked sharply to over 14,000. That marks a 20% growth from the number of such pending cases as on 31.03.2023. 

The establishment of these tribunals — envisaged at the time of the implementation of the GST regime from 01.07.2017 - got a final clearance from the GST Council this July, and was a much-awaited move for industry players, who had been approaching the High Courts and Supreme Court during the past 6 years. 

"Time limit for Reporting Invoices on the IRP Portal"

Taxpayers with AATO greater than 100 crores, will have a limited reporting window of 30 days. This means that invoices older than 30 days on the date of reporting will not be accepted by the e-invoice IRP portals. This restriction applies to all document types, including invoices, credit notes, and debit notes.

The implementation is scheduled to begin from 01.11.2023 onwards.

"Mandatory HSN Code Requirements in E-Invoices and E-Way bills"

Effective 01.10.2023, taxpayers with an aggregate annual turnover (AATO) of INR 5 crore or more will be required to use at least a 6-digit HSN code in their e-invoices and e-way bills. Taxpayers with an AATO of less than INR 5 crore will still be required to use at least a 4-digit HSN code.

As per Notification No. 78/2020 dated 15.10.2020, the taxpayers, having Aggregate Annual Turn Over ("AATO") above INR 5 Crore, shall use atleast 6 digit HSN code in the e-Invoices and e-Waybills and other taxpayers shall use atleast 4 digit HSN code in E-Invoices and E-Way Bills. Most of the taxpayers are already following this, Other taxpayers are requested to adapt to the change and comply by the due date. This will be made Mandatory from 01.10.2023, in e-Waybill and e-Invoice Systems.

"Intimations for discrepancies in Form 16"

Income Tax Department (ITD) has started sending intimations to salaried taxpayers whose deductions are not in sync with Form 16. This is part of the ITD's efforts to crack down on tax evasion.

Form 16 is a certificate issued by an employer to a salaried employee that specifies the amount of tax deducted from the employee's salary during the financial year. The ITD matches the information in Form 16 with the information in the employee's income tax return. If there is any discrepancy, the ITD will send an intimation to the employee.

"Income Tax Department Urges Taxpayers to Verify Bank Account Validation Status"

Income Tax Department (ITD) has advised taxpayers to verify the validation status of their bank account on the e-filing portal. This is because only validated bank accounts can be used to receive income tax refunds.

To verify the validation status of your bank account,  follow these steps:

• Go to the Income Tax Department website and login to your e-filing account.

• Click on the "Profile" tab.

• Click on the "My Bank Account" link.

• The status of your bank account will be displayed in the "Validation Status" column.

If the status is "Validated", then your bank account is ready to receive income tax refunds. If the status is "Pending", then your bank account is still being validated. If the status is "Failed", then there was an error in validating your bank account. You will need to contact your bank to resolve the issue.

"ICAI Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 (Revised 2023)"

The 2023 edition incorporates changes in law, notifications, circulars, and other directives that have occurred since the last publication. It’s updated to guide Chartered Accountants through the nuances of the current Form No. 3CD and other required documentation like Form No. 3CA/3CB.

"Issuance of Notice for Schedule 80P Deduction"

The Income Tax Department has clarified that the error in the 80P deduction notices was sent inadvertently. The department has assured taxpayers that an email communication addressing this issue will be sent out shortly. In the meantime, taxpayers are urged not to panic and to wait for further instructions from the department.

The error in the notices was due to a technical glitch in the department's system. The glitch caused the notices to be sent to taxpayers who had claimed deductions under Section 80P, even though they were not eligible for such deductions.

The department has said that it is taking steps to rectify the error and that the affected taxpayers will not be penalized. The department has also said that it will be issuing refunds to taxpayers who have already paid taxes based on the erroneous notices.

"Form 71 for TDS Credit"

CBDT (Central Board of Direct Taxes) notified Form 71 on August 30, 2023, to enable taxpayers to claim TDS credit for income that has been declared in their income tax returns (ITRs) for a previous assessment year, but the tax was deducted at source (TDS) in a subsequent financial year. The Finance Act of 2023 introduced a new sub-section (20) to Section 155 of the Income Tax Act, 1961, which provides for this facility. This new provision came into effect from October 1, 2023. 

To claim TDS credit under this provision, the taxpayer must submit Form 71 to the tax authorities. The form can be downloaded from the website of the Income Tax Department.

"INR 1,59,069 crore gross GST revenue collected during August 2023"

The gross GST revenue collected in August 2023 stands at a substantial INR1,59,069 crore. This amount encompasses CGST (INR 28,328 crore), SGST (INR 35,794 crore), IGST (INR 83,251 crore, including INR 43,550 crore from import of goods), and Cess (INR 11,695 crore, including INR 1,016 crore from import of goods).

A remarkable 11% increase in GST revenues has been recorded in August 2023 as compared to the same month in the previous year. Additionally, revenue generated from the import of goods has witnessed a 3% rise, while domestic transaction revenues, including import of services, have soared by 14%.

   "Biometric-based Aadhaar Authentication for GST Registration"

Key Points of the Advisory:

• To whom it is applicable: Rule 8 of the CGST (Central Goods and Services Tax) Rules has been amended to introduce biometric-based Aadhaar authentication for applicants. Those who opted for Aadhaar number authentication during application submission may now need to undergo biometric verification based on data analysis and risk assessment. 

• Pilot Implementation: The new biometric authentication functionality is ready for rollout on the GSTN portal. The pilot phase of implementation is set to begin in Puducherry from 30.08.2023. 

• Process: Applicants who are instructed to visit a GST Suvidha Kendra (GSK) through a message, after the completion of the same existing process of Aadhaar authentication, will need to visit the designated GSK location as communicated through mobile and email. At the GSK, they must undergo biometric authentication for all individuals as per the details provided in Form GST REG-01. 

• Application Reference Number (ARN) Generation: For applicants undergoing biometric-based Aadhaar authentication, the Application Reference Number (ARN) will be generated only after the successful completion of the authentication process at the GSK. This step ensures a comprehensive and secure registration process. 

• GSK Operation Days: The operation days of GST Suvidha Kendras (GSKs) will be determined and communicated by the state administration. 

"Mera Bill Mera Adhikaar Scheme"

Designed by India's Central Board of Indirect Taxes and Customs (CBIC), the Mera Bill Mera Adhikar Scheme aims to encourage consumers to request GST-compliant invoices. The scheme rewards consumers with cash prizes, which are distributed through monthly and quarterly lotteries. 

To participate, first download the Mera Bill Mera Adhikar app from iOS or Android platforms. Alternatively, you can register through the official web portal by visiting https://web.merabill.gst.gov.in/login. Once registered, you'll be prompted to upload crucial invoice information such as the seller's GSTIN, invoice number, the total amount you've paid, and tax details. Consumers can win cash rewards in three categories: INR. 10,000, INR. 10 lakhs, and up to INR. 1 crore. These prizes are given out through a transparent process of monthly and quarterly draws.

The scheme has two primary goals: 

• Educating consumers about the importance of requesting GST invoices.

• Encouraging businesses to maintain proper invoicing practices. 

"LLP Amnesty Scheme"

The Ministry of Corporate Affairs (MCA) has notified the Limited Liability Partnership (LLP) Amnesty Scheme. The ministry vide circular number No. 8/2023 issued on 23rd August 2023 condoning the delay in filing of Form-3, Form-4 and Form-11 under Section 67 of Limited Liability Partnership (LLP) Act, 2008 read with Section 460 of Companies Act, 2013. 

These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). Also, the LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

"Challan Correction’ functionality on its e-filing portal"

A new functionality has been introduced by the Central Board of Direct Taxes (CBDT) on the Income Tax portal on 18th August 2023, allowing taxpayers to rectify their income tax challan online.

The taxpayers can correct the following in the challan:

• Assessment Year

• Change in Tax applicable (Major Head) i.e. Income tax other than company, income tax for companies

• Change in Type of Payment (Minor Head) i.e. Advance Tax, Self Assessment Tax, Tax on Regular assessment etc.

The scope of this feature covers challans pertinent to A.Y. 2020-21 & onwards.

"Clarification on Recent Income Tax Department SMS"

Income Tax Department recently sent out an SMS to individuals, addressing concerns related to certain transactions reported in Form 60/61 for the fiscal year 2021-22. The message has sparked queries and curiosity among taxpayers. In response, the Income Tax Department has issued a comprehensive reply, outlining the necessary steps to be taken.

The SMS in question reads: “Attention Sri..C, Income Tax Department has received information about certain transactions reported by you in Form 60/61 relating to FY 2021-22. It is requested that if you are not in occupation of a PAN Number, the same may be applied in Form 49A immediately or else, the PAN Number should be submitted to the Reporting Entity within 15 days from the campaign execution date. – Income Tax Department”

In response to the queries and concerns raised by taxpayers, the Income Tax Department issued a clarifying statement. The official reply outlines the following key points: 

1. PAN Application for Non-PAN Holders: Individuals who do not possess a PAN are strongly encouraged to apply for one. A PAN is a crucial identifier for tax-related transactions and is essential for compliance with tax regulations. 

2. PAN Disclosure for PAN Holders: Taxpayers who already have a PAN are reminded to disclose this PAN to the Reporting Entity. This step is important to ensure that all transactions are accurately linked to the respective PAN.

3. Definition of Reporting Entities (REs): The term “Reporting Entity” refers to various institutions such as banks, post offices, and registrars or sub-registrars of properties. These entities are defined under Section 285BA of the Income-tax Act, 1961. 

4. Contact for Further Clarification: For any additional queries or concerns, taxpayers are encouraged to reach out via email to cmcpc_support@insight.gov.in. Alternatively, they can seek assistance by contacting the Income Tax Department’s helpdesk at 1800 103 4215.

"ITR filing hits  all time high"

The number of income-tax returns (ITRs) filed in the assessment year 2023-24 surged by 16.1% as compared to the previous assessment year. The cumulative number of filings recorded a peak of more than 6.77 crore, as of 31.07.2023. Comparatively, about 5.83 crore ITRs were filed in the previous assessment year as of 31.07.2022.

As compared to last year, no major issues were reported in the functioning of the e-filing portal. 

"50th GST Council meeting"

The GST Council at its 50th meeting held today, has taken the following key decisions:

• Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns and revocation of cancellation of registration, is now extended till 31.08.2023

• No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company.

• Transporters will not be required to file declaration for paying GST under forward charge every year.

• The special procedure regarding mismatch in ITC availed in GSTR-3B and 2A is now extended for two more years i.e 2019-20 and 2020-21.

• The Relaxations that were provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C is to be continued for FY 2022-23 as well.

• No GSTR-9 for turnover upto 2 crores.

• Waived the requirement that the physical verification of business premises is to be conducted in the presence of the applicant.

• GST Tribunal is to be operational within 4-6 months in a phased manner, and the benches will be established in the state capital and in the city where the High Court benches are located.

• System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B.

• Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B.

• Changes In Rates:

1. Supply of food and beverages in cinema halls is taxable at 5%. But, the sale of cinema ticket and supply of food and beverages clubbed together then gst rate of cinema ticket will apply.

2. 28% GST on the value of the chips purchased in casinos.

3. 28% GST on the full value of the bets placed in Online Gaming.

4. Tax rate for Zari thread or yarn known by any name in trade parlance has been reduced to 5% from 12%

5. GST rate on LD slag has been reduced from 18% to 5% to encourage better utilization of this product and for protection of environment.

6. Cancer fighting drugs, medicines for rare diseases and food products for special medical purposes exempted from GST.

"Geocoding Functionality Now Live for All States and Union Territories"

GSTN has successfully geocoded more than 1.8 crore addresses of principal places of business. Post March 2022, all new addresses are geocoded at the time of registration itself.

Here's how taxpayers can access and use this functionality:

1.  Accessing the Functionality: You can find this functionality under the Services/Registration tab in the FO portal.

2. Using the Functionality: The system-generated geocoded address will be displayed, and you can either accept it or update it as per your requirements. In cases where the system-generated geocoded address is unavailable, a blank will be displayed, and you can directly update the geocoded address.

3. Viewing the Geocoded Address: The geocoded address details will be saved separately under the "Place of Business" tab on the portal. They can be viewed under My profile>>Place of Business tab under the heading "Principal Geocoded" after logging into the portal. Please note that this will not change your existing addresses.

4. One-time Activity: The geocoding link will not be visible on the portal once the geocoding details are submitted by you. This is a one-time activity, and once submitted, revision in the address is not allowed. The functionality will not be visible to the taxpayers who have already geocoded their address through new registration or core amendment. Please note that the address appearing on the registration certificate can be changed only through the core amendment process. This geocoding functionality would not impact the previously saved address record.

5. Availability: This functionality is available for normal, composition, SEZ units, SEZ developers, ISD, and casual taxpayers who are active, cancelled, and suspended. 

'CA Final & Intermediate Results'

The results of the Chartered Accountants Final & Intermediate Examination held in May 2023 are declared today.

For those who were not able to clear the examination, we know that you have given your 100% before  the exams and that was the only thing under your control. Take rest for a day or two, reset, review your strategy and get back to study. You may be subjected to number of questions from surroundings, but     friends, we recognise your hard work and sacrifices 

For those who cleared, we wholeheartedly congratulate you and your family members. We welcome all those who qualified CA to the world of endless opportunities and wish you all the luck

'CA Final & Intermediate Results'

The results of the Chartered Accountants Final & Intermediate Examination held in May 2023 are likely to be declared on Wednesday, 05.07 2023.

We wish you all the best for your results. We understand that no words will be enough to bring back your heartbeats to the normal level, until the results are declared. But friends - we know that you have given your 100% before the exams and that was the only thing under your control. 

You have done your best, let god fix the rest. 

'Due date of TDS and TCS returns for Q1 of current FY extended'

The CBDT vide CBDT Circular dated 28.06.2023, has extended the due date for filing Form 27Q and Form 26Q, for the 1st quarter of the financial year 2023-24. Originally scheduled to be filed by July 15 or July 31, 2023, taxpayers now have until September 30, 2023, to submit these statements.

'Due date of filing return of deposits Form DPT-3'

Keeping in view the transition of MCA-21 Portal from Version -2 to Version -3, the MCA extended the due date of filing return of deposits Form DPT-3 by 1 month to July 31, 2023. Companies can file Form DPT -3 for the financial year ended on March 31, 2023 without paying additional fees up to July 31, 2023.  

"GSTN introduces E-Invoice verifier app"

Efficient and Accurate e-invoice verification is important and this app aims to simplify the process. Following are the key features:

• QR Code Verification: The application allows users to scan the QR code on an e-Invoice and authenticate the embedded value within the code. 

• Comprehensive Coverage: The app supports verification of e-Invoices reported across all six IRPs.

• User-Friendly Interface: The app provides a user-friendly interface with intuitive navigation, making it easy for users to navigate through the app's features and functionalities. 

• Non-Login Based: The app operates on a non-login basis, meaning users are not required to create an account or provide sensitive personal information to access its functionalities. 

ITR-1, 2, 3 and 4 Excel Utility now available on Income Tax Portal.

Excel Utility for ITR-1 and ITR-4 was released on 25.04.2023. The ITR-2 Excel utility was released on 11-May-2023. Now ITR-3 Form has also been released.

"E - Invoice threshold limit reduced to INR 5 crore"

Earlier registered person whose turnover exceeds INR 10 crore was required to comply with e-invoice provision. Which means he must generate e-invoice against each tax invoice, debit note, credit note issued to registered person.

On 10.05.2023, Ministry of Finance by Notification No. 10/2023 central tax has notified that person registered under GST and having turnover more than INR 5 Crore in any financial year from 2017-18 is required to comply with the e-invoice provisions w.e.f. 01.08.2023.

"Extended deadline to opt for forward charge by GTAs"

CBIC extended the deadline to opt for forward charge by GTAs for FY 2023-24 from 15.03.2023 to 31.05.2023 vide Notification No.05/2023 - Central Tax (Rate) dated 09.05.2023. 

A declaration / consent in Annexure V FORM is required to be submitted to opt for forward charge mechanism on the GST Portal by the GTA (Goods Transport Agencies) every year before the commencement of the Financial Year. 

"Reporting old E - Invoice"

The GSTN has issued an advisory dated 06.05.2023 regarding the deferment of the Implementation of the time limit on Reporting Old e-Invoices. The next date of implementation will be shared in due course of time. 

Earlier, an advisory was released on 13.04.2023, stating that taxpayers with AATO greater than or equal to INR 100 crores has to report invoices on the e-invoice IRP portals within 7 days. This was proposed from 01.05.2023, and the same has been deferred via Advisory dated 06.05.2023.

"Highest GST collection"

GST revenue collection in April 2023 (for transactions made during March 2023), rose 12% YoY basis to a record high of INR 1.87 lac crore. Previous record for highest collection in a month was INR 1.67 lac crore in April 2022 (for transactions made during March 2022).

Reasons for rise:

• Improved economic activity and recovery after second wave of covid 19 pandemic.

• Increased compliance and anti - evasion measures taken, such as e-invoicing, e-way bills, data analytics and audits. 

• Higher tax collections from sectors such as automobiles, consumer durables, FMCG, IT and e-commerce, which have witnessed strong demand and growth.

In the current 2024 fiscal year, the Centre expects to mop up INR 9.56 lac crore as its GST Share, a 12% rise over the FY 2023 collection.

The income tax department has released the offline forms for ITR 1 and ITR 4 for filing ITR for FY 2022-23. 

The department is yet to enable the online forms for ITR 1 and ITR 4, for now it has released the excel utility.  

"GSTN advisory on Bank Account validation"

This feature is introduced to ensure that the bank accounts provided by the taxpayer is correct. The bank account validation can be seen under the Dashboard > My profile > Bank account status.

Post validation, any bank account number in the database would have one status out of the following:

1. Success - no issues

2. Pending for validation - no issues

3. Success with remark - means that the account can not be validated since the bank is not integrated with NPCI. In such a case, provide an alternate bank account number.

4. Failure - following can be the reason:

• Invalid PAN.

• PAN not available in the concerned bank account.

• PAN under GST and Bank account are not the same.

• Invalid IFSC.

"Record Direct Tax collection in FY 23"

The net collection stood at INR 16.61 lac crore, registering a growth of 17.63% YoY. Direct tax collections stood at INR 14.42 lac crore in FY 22. The budgeted estimate for FY 23 was INR 14.20 lac crore which were revised to INR 16.50 lac crore. 

The reason for such increase is the tools deployed by the tax department to fetch data of taxpayers automatically along with the expansion of TDS and TCS.

Indirect tax collections increased 13% to INR 1,60,122 crore in March - second highest monthly collection. Collection for full year stood at INR 18.10 lac crore averaging at INR 1.51 lac crore a month.

"RBI keeps repo rate steady at 6.5%"

In a surprise move that went against street expectation of 25 basic points rate hike, RBI on 06.04.2023 kept the repo rate unchanged at 6.5% amid concern over global banking crisis.

Until May'22, repo rate was steady at 4% for long time, RBI started increasing repo rate since than and currently it is 6.5%. The decision to keep repo rate unchanged was taken unanimously by 6 member of Monetary Policy Committee. In the past few policies, MPC members had differences of opinion on the rate action.

One striking feature different from earlier policies is that it does not need an extension, modification would be made as and when needed. Hence, the new foreign trade policy (FTP) does not come with a five year expiry date like earlier policies. The current FTP 2015-20 expires on 31.03.2023 after having extended several times due to covid & war. 

FTP 2023 is ambitious as it aims to achieve $2 trillion goods and service exports by 2030 while encouraging trade settlements in rupee. Policy will adopt consultative approach to resolve issue of trade and Industry with wider participation of states and districts in promoting exports from the grassroots. India's exports were $435 billion in 2015-16 which have grown over 70% to nearly $760 billion in 2022-23. FTP 2023 also increased value limit for exports through courier service from INR 5 lakhs to INR 10 lakhs per consignment.

FTP 2023 has focused on the ease of doing business through paperless regulation and rule based automatic approvals. To enable more beneficiaries to achieve higher recognition, it has rationalized thresholds for export performance. For instance, qualifying criterion for three star export house has been reduced from $100 million to $50 million.

4 new Towns of Export Excellence (TEE) which are in addition to existing 39 TEE. This facility helps in global recognition, for instance 4 new TEE includes Varanasi for handloom and handicrafts.

FTP 2023 also streamlined special chemicals, organisms, materials, equipment and technologies (SCOMET) products at one place for ease of understanding and compliance by the Industry. Focus is on simplifying policies to facilitate export of dual use high end goods and technology such as UAV's, drones, tanks and certain chemicals.

1. "PAN-Aadhaar linking date extended"

In order to provide some more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to 30.06.2023. Earlier, the last date to for linking was 31.03.2023.

If the PAN card are not linked to Aadhaar cards by 30.06.2023, the PAN card will not be operative.

1. "Crypto Transactions, Virtual Assets to come under Prevention of Money Laundering Act, 2002"

Finance Ministry has notified transactions involving the exchange, transfer & safe keeping of crypto assets under the PMLA. 

Measure is expected to aid investigative agencies in carrying out their actions against crypto companies, with the ED & IT department already probing several such cases against companies running cryptocurrency exchanges.

In august last year, ED had frozen bank balances of INR 64.67 crore belonging to a company running a popular cryptocurrency exchange named WazirX. Other companies and apps dealing with crypto, such as CoinSwitch and E-Nuggets have also been probed by ED last year.

In April 2022, India introduced a 30% income tax on gains made from cryptocurrency. Then in July 2022, rules regarding 1% TDS on cryptocurrency came into force.

Crypto exchanges and intermediaries dealing with Virtual Digital Assets (VDA) will now be required to perform KYC of their clients and users. Exchanges will have to report suspicious activity to Financial Intelligence Unit India. 

Entities dealing in VDA will be considered as 'reporting entity' under PMLA, so now they'll be required to maintain certain record of transactions as prescribed under PMLA.

"Budget laid out a slew of measures to bolster infrastructure for creating more jobs and attractive investments"

Govt increased spending on Farm Sector which accounts for around 19% of Economy. Allocation to be used for high value horticulture and setting up of an agriculture accelerator fund to finance Farm Startups. 

This will benefit companies such as Kaveri seed co., Dhanuka agritect ltd., Bombay super hybrid seeds, Rashtriya chemicals & fertilizers ltd.

India will select 50 destinations to promote domestic tourism & will also develop an application to guide tourists on food streets, security, physical & virtual connectivity to lift their experience.

This will benefit companies such as Indian railway catering & tourism corp., Thomas cook India ltd., Indian hotels & EIH ltd.

India has decided to build 50 additional airports, heliports & aerodromes. Railway will benefit from a record outlay of 24 trillion rupees. 

This will benefit airport operators like Adani airport holdings, GMR airports infrastructure, GVK airport developers & construction companies like L & T and BHEL.

Higher capital expenditure are in turn positive news for steel & cement makers.

This will benefit companies such as Tata steel, JSW steel, Jindal steel & power.

Electric vehicle market in India will see huge growth in coming years, custom duty exemption on import of capital goods required to manufacture lithium-ion cells used in electric vehicle batteries will benefit battery makers such as Exide manufactures ltd., Amara raja batteries ltd., Tata motors, Mahindra.

Military budget got a increase of 7% as compared to 33% increase in nation's overall capital expenditure. 

16% increase of tax on cigarettes, shares of Godfrey phillips India affected.

Oil companies suffered losses as govt kept a check on diesel & gasoline prices amid rising inflation, companies were demanding to partly cover losses via budgetary support but govt didn't announce any compensation. 

Custom duty on cars & EVs priced above $40,000 and imported as completely built units was increased to 70% from 60%. 

Foreign car makers like Mercedes Benz, BYD co. that rely on imported cars will face challenge.

1. "RBI hikes Repo rate by 25 basic points to 6.5%"

Monetary Policy Committee of RBI hiked  the Key policy rate, the Repo rate by 25 basic points to 6.5% in a bid to rein in retail inflation. It was 4:2 majority decision by RBI's policy panel to hike the Repo rate, sixth time since May 2022. 

Lending rates of banks are expected to go up, deposit rates are also expected to witness some realignment and this hike will help in moderating inflation in the country.

US federal reserve last week raised its benchmark by 25 basic points, giving no signs of its nearing end of its rate hike cycle.

Bank of England also raised rates by 50 basic points last week but it indicated that there will be smaller hikes in future. 

Today Chief Economic Advisor released Economic survey for current financial year 2022 - 23, Economic survey is always presented a day before Union Budget. As the name suggests it is a detailed report showing state of national economy for the financial year that is coming to close.

Here're the highlights from the economic survey: -

• Growth rate for the financial year 2023 -24 is estimated between 6% - 6.8%.

• Current inflation rate is 6.8%, which is believed to be at its peak and it will only reduce further. RBI has a target to keep inflation between 2% - 6%.

• Fiscal deficit for the current financial year is estimated at 6.4% and it will only decrease in upcoming year.

• Foreign exchange reserve, learning from neighboring country of its importance, is maintained at $563 billion which is sufficient for imports of 9 months. A reserve sufficient enough to import for 6 months is considered good. In 2021 - 22 Indian Forex reserve was at its peak at $642 billion strong.

• Food grain production remains stagnant. Year on year basis it has only increased unlike other sectors which saw downfall during covid and war.

• Survey also highlighted developments is health sector over the past 8 years: - 

1. Maternal mortality rate decreased to 97 per lacs in 2019-20 from 167 per lac in 2013-14.

2. Child mortality rate decreased to 39 per thousand in 2019-20 from 39 per thousand in 2013-14.

3. Institution births rose to 89% in 2019-20 from 79% in 2013.14.

4. Out of pocket health expense reduce to 48% in 2019-20 from 64% in 2013-14.

• Survey pointed policies that are adding to the success story of India:-

1. Energy transition for a cleaner tomorrow: Leading international solar alliance, Mass movement of life style for environment, sovereign green bonds.

2. Physical & Digital Infrastructure: PM Gati Shakti for seamless movement of people & goods, National logistics policy, Capacity pf major ports doubled in past 8 years, UPI touched highest ever mark with 782 crore transaction in Dec'22.

3. Reforms for MSME business have yielded results: Portals like  Udhyan portal, CHAMPIONS portal, Samadhaan portal.

4. PLI Scheme: Generated more than 3 lacs employment, more than 100 beneficiaries are MSME's, Investment of INR 47,500 crores in FY 2022

• Budgeted capital expenditure rose 2.7 times in past 7 years.

1. "A calculated attack on India", Adani Group on Hindenburg allegations.

In a 413 page response, Adani group said that it is not merely an unwarranted attack on any specific company but a calculated attack on India.

Responding to 88 questions asked in report, Adani group said that 65 of 88 of them were matters that've been disclosed by Adani group companies in Annual reports, rests relate to public shareholders & 3rd parties & some were baseless allegations. 

Response included more than 350 pages annexes that included snippets from annual reports, public disclosures & earlier court rulings.

Adani group alleges that report was intended only to enable Hindenburg (Short selling firm) to book massive financial gains. 

2. "Budget 2024 will make India manufacturing capital of World"

Speculation over an expansion of government's production linked incentive scheme (PLI) is running rife. Govt. may either allocate more fund to existing sector or add new sectors to the scheme or consider both. PLI has been a success for manufacturing Sector, Scheme is one of the reason for Companies like Apple shifting their manufacturing facility from china to India. Recent surge in mobile phone exports being one of the discernible outcomes. 

"FY 2024 could be an inflection point for a surge in India's manufacturing capex ," says ICRA's report, If announcements of new manufacturing projects is factored in.

Manufacturing's share of total capex was 49% in 2021-22, up from 16% in pre-covid 2019-20. In 2015-16 manufacturing had 31% share in India's total capex.

1. "Budget 2023 Begins, Halwa ceremony" 

As a final stage of budget preparation, North block of Parliament observed traditional Halwa ceremony on 26th January.

It begins in Aug- Sept, around 6 months before the presentation of budget when Department of Economic Affairs request data through a formatted form from other ministries, data received is accumulated & scrutinized by top officials of department and upon approval the data & estimates are send again to respective ministries for examination. Finally the data & estimates are send to Finance Ministry.

Upon receipt of data, Finance Ministry holds consultation with various stake holders across sectors like industry, finance sector, agriculture & social sector to take their inputs & suggestion's into Budget making exercise. After analyzing every aspect carefully, Finance Ministry prepares Budget.

Held some days before the presentation of Budget, halwa ceremony includes distribution of halwa & sweets to ministry officials & staff, this marks beginning of Budget Lock in Period - means that officials & staff directly concerned with preparation of budget are cut off from everyone, including their family members, till the budget is presented.

1. "Indian stock market set to shift to world's fastest settlement cycle"

After China, India will be second country in World to start Trade plus one (T+1) settlement cycle, it means that trade related settlement's must be done within a day or 24 hours of completion of transaction. It will increase operational efficiency, faster fund remittances, share delivery & ease for stock market participants.

Until 2001, markets around the world has weekly settlement systems. In 2003 markets moved to T+2 settlement system which is still continued. Countries like US, UK & Eurozone markets are yet to move to T+1 settlement system.

According to SEBI, T+1 settlement system will not only reduces time frame but also reduces & frees up capital required to collateralize that risk . T+1 system is being implemented despite opposition from foreign investors.

1. "US research firm Hindenburg alleges stock manipulation, Adani group says malafide"

On 25.01.2023, Hindenburg released a report, which as per them is a result of 2 years of research, that caused INR 48,000 crore lose to Adani. Report claimed that 7 listed companies of Adani group have 85% downside on a fundamental basis due to high sky valuations, report also pointed out the debt of company saying it to be over levereged. Apart from financial factors report also pointed out that 8 out of 22 key roles of the Adani group  are held by its own family members.

Following the report Adani group also issued a statement saying that report is malicious and based on allegations that have been tested & rejected by India's highest courts. Adani group's CFO Jugeshinder singh in an statement issued also questioned the timing of the report as it is been relassed on a date closer to Adani Enterprise's FPO which is also India's biggest ever FPO.

On the report date, Adani group's 7 listed companies witnessned around 3-7 % downfall in stock prices which resulted in decrease in networth of Gautam Adani by nearly 5%. Gautam Adani lost $6 billion (INR 48,600 crore) in a day & his net worth currently (26.01.2023) stands at $113 billion.

1. Amidst rising inflation world wide and in India, Indian Gold prices hit record high, gold tends to follow & match the inflation. Gold therefore is still considered the safest investment and used as inflation hedging. 

For this time, Gold breaking all records has various reasons. One is inflation as stated above, another is that in the year 2022, Central Banks around the world has bought record amount of gold.

Following the scenario, Central government is expected to slash import duty on gold.

1. Big setback to YES Bank as the High Court set asides RBI's order to write off YES Bank's INR 8300 crore AT-1 Bonds. AT-1 Bonds  are unsecured bonds with perpetual tenor. Stocks of YES Bank fell by 10% today.

SEBI probe found that bonds were sold from Institutional investors to Individual investors without informing all the risks involved in subscription of bonds. 

1.  Global consultants - PwC, Deloitte & BCG were positive about Indian economy at "World Economic Forum" which ended on Friday. PwC's chairman Bob Moritz said that there is potential to crank up the growth from 6% to 8%.