Executive Summary

Income Tax

  • Section 194N of Income Tax Act,1961- Payment of Certain amounts in cash- Approved Foreign Representations to whom provision of said section shall not apply.
  • Income Tax (Tenth Amendments) Rules, 2024- Insertion of Rules 10TI, 10TIA, 10TIB & 10TIC and Insertion of Form no. 3CEFC.
  • CBDT Launches Electronic Campaign to address Income and transaction mismatches for FY 2023-24 and FY 2021-22.

Goods And Service Tax (GST)

  • Notification No. 27/2024 – Central Tax [ (G.S.R. 729(E)) F. NO. CBIC-20016/2/2022-GST], Dated 25-11-2024, Officers under this act- Powers of officers – appointment of officers- Amendment in notification no. 2/2017 – Central Tax, Dated 19-6-2017
  • Notification No. S.O. 5063(E) [F. NO. A-50050/99/2024-GSTAT-DOR], Dated 26-11-2024[As amended by notification no. S.O. 5128(E) [F.NO. A-50050/99/2024-GSTAT-DOR], Dated 29-11-2024], appellate tribunal and benches thereof- constitution of-constitution of principal and state benches of Goods and Services Tax appellate services Tax appellate tribunal
  • Notification No. 28/2024- Central Tax [S.O. 5091(E)/F. NO. CBIC-20010/22/2024-GST], Dated 27-11-2024, Read with section 3 of the integrated Goods and Services Tax Act, 2017- Officers- Powers of- Appointment of officers to pass decision or orders in respect of notices issued to specified notices by officers of Directorate General Intelligence
  • Notification No. 29/2024 – Central Tax [G.S.R.735(E)/F. NO. CBIC-20001/9/2024-GST], Dated 27-11-2024, furnishing of returns – extension of due date to furnish return in Form GSTR-3B for month of October, 2024, for registered persons having Principal place of business in specified state
  • Notification No. S.O. 5128(E) [F. NO. A-50050/99/2024-GSTAT-DOR], Dated 29-11-2024, Appellate tribunal and benches thereof- Constitution of – Constitution of Principal and State benches of Goods and Services Tax Appellate Tribunal- Corrigendum to notification no. S.O. 5063(E), Dated 26-11-2024
  • Circular No. 239/33/2024 – GST [F. NO. CBIC-20016/2/2022-GST], Dated 4-12-2024, officers under this Act- notified proper officer under Sections 73 and 74 – Amendment in circular No. 31/05/2018-GST, Dated 9-2-2018
  • Notification No. 30/2024 – Central Tax [F. NO. CBIC-20001/10/2024-GST], Dated 10-12-2024, section 39 of the Central Goods and Services Tax Act, 2017 – Furnishing of returns – Extension of due date to furnish Form GSTR-3B for month of October, 2024, for registered persons having principal place of business at notified place
  • Notification No. 31/2024 – Central Tax [S.O. 5392(E)/F. NO. CBIC-20010/27/2024-GST], Dated 13-12-2024, officers – Powers of – appointment of officers to pass decision or orders in respect of notices issued to specified notices by officers of Directorate General of GST Intelligence

Companies Act 2013/ Other Laws

  • Caution to Public
  • Extension of Time for Filing Forms to Monitor Liquidation and Voluntary Liquidation Processes under the Insolvency and Bankruptcy Code, 2016, and the Regulations made thereunder
  • Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
  • Companies with turnover above Rs 250 crore must get onboard on ‘Trade Receivables Discounting Platforms’ by 31.03.2025

Section 194N of Income Tax Act, 1961-Payment of certain amounts in Cash- Approved Foreign Representatives to whom Provision of said section shall not apply

 

CBDT Notification No. 33/2023-Income Tax, Dated: 29th May, 2023

  • ·In exercise of the powers conferred by the fifth proviso to section 194N of the Income-tax Act, 1961, the Central Government after consultation with the Reserve Bank of India, hereby specifies that the provisions of section 194N of the said Act shall not apply to Foreign Representations duly approved by the Ministry of External Affairs of the Government of India including Diplomatic Missions, agencies of the United Nations, International Organisations, Consulates and Offices of Honorary Consuls which are exempt from paying taxes in India as per the Diplomatic Relations (Vienna Convention) Act 1972 (43 of 1972) and the United Nations (Privileges and Immunities) Act 1947 (46 of 1947).

     

    1. This notification shall come into effect from 1st day of December 2024.
    • Income-Tax (Tenth Amendment) Rules,2024- Insertion of Rules 10TI, 10TIA, 10TIB & 10TIC and  Insertion of Form no. 3CEFC

    In exercise of the powers conferred by section 295, read with sub-section (2) of section 92CB of the Income-tax Act, 1961, the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: —

    1. Safe Harbour-10TIA
    2. The income-tax authorities shall accept the option for safe harbour exercised by an eligible assessee in any relevant previous year under rule 10TIB, where the income declared by such assessee from an eligible business is in accordance with the circumstances as specified in sub-rule (2), unless such safe harbour is declared invalid under the provisions of sub-rule (3) of rule 10TIB.
    3. The circumstances referred to in sub-rule (1) in respect of the eligible business mentioned in column (1) of the Table below shall be as specified in column (2) thereof, namely:-
    Eligible BusinessCircumstances
    Selling of raw diamonds referred to in clause (b) of rule 10TIThe profits and gains of the eligible business chargeable to tax under the head “Profits and gains of business or profession” shall be 4 per cent. or more of the gross receipts from such business.

     

    1. Where the eligible assessee has expired the option for safe harbour under rule 10TIB in respect of the eligible business in any relevant previous year and such option is not declared invalid under the said rule, —
    2. Any deduction allowable under the provisions of sections 30 to 38 shall be deemed to have been already given full effect to and no further deduction under those sections shall be allowed;
    3. the written down value of any asset of such business shall be deemed to have been calculated as if the eligible assessee had claimed and had been actually allowed the deduction in respect of the depreciation for such previous year;
    • no set off of unabsorbed depreciation under sub-section (2) of section 32 or carried forward loss under sub-section (1) of section 72 shall be allowed to such assessee; and
    1. no set off loss from other business under sub-section (1) of section 70 or other head under subsection (1) or sub-section (2) of section 71 shall be allowed to such assessee for income chargeable to tax under the head “Profits and gains of business or profession” in respect of such business.
    2. For the purposes of exercising option for safe harbour, the assessee shall furnish Form No. 3CEFC, complete in all respects, to the Assessing Officer before furnishing the return of income under section 139 for the relevant previous year.
    3. The Assessing Officer may declare the option for safe harbour as invalid by an order in writing , where the assessee has-
    4. Availed the safe harbour by furnishing incorrect facts; or
    5. Concealed facts related to his business.
    • CBDT Launches Electronic Campaign to address Income and Transaction Mismatches for FY 2023-24 and FY 2021-22
    1. The Central Board of Direct Taxes (CBDT) has launched an electronic campaign to assist taxpayers in resolving mismatches between the income and transactions reported in the Annual Information Statement (AIS) and those disclosed in Income Tax Returns (ITRs) for the financial years 2023-24 and 2021-22. This campaign also targets individuals who have taxable income or significant high-value transactions reported in their AIS but have not filed ITRs for the respective years. The initiative is part of the implementation of the e-Verification Scheme, 2021.
    2. As part of this campaign, informational messages have been sent via SMS and e-mail to taxpayers and non-filers where mismatches have been identified between transactions reported in AIS and the ITRs filed. The purpose of these messages is to remind and guide individuals who may not have fully disclosed their income in their ITRs to take this opportunity to file revised or belated ITRs for FY 2023-24. The last date to file these revised or belated ITRs is December 31, 2024.
    3. For cases pertaining to FY 2021-22, taxpayers can file updated ITRs by the limitation date of March 31, 2025.
    4. Taxpayers can also provide their feedback, including disagreeing with the information reported in the AIS, through the AIS portal accessible via the e-filing website (https://www.incometax.gov.in/iec/foportal/).
    5. This initiative reflects the Income Tax Department’s commitment to leveraging technology to simplify compliance and ensure transparency. By utilizing third-party data, the department aims to create a more efficient, taxpayer-friendly system that aligns with the vision of Viksit Bharat.
    6. The CBDT encourages all eligible taxpayers to take advantage of this opportunity to fulfil their tax responsibilities and contribute to the nation’s economic development. This effort not only supports the government’s vision for a developed India but also promotes a culture of transparency, accountability, and voluntary compliance.

 

  • Notification No. 27/2024 – Central Tax [ (G.S.R. 729(E)) F. NO. CBIC-20016/2/2022-GST], Dated 25-11-2024, Officers under this act – Powers of officers – appointment of officers – Amendment in notification no. 2/2017 – Central Tax, Dated 19-6-2017

 

The Central Government has amended Notification No. 02/2017-Central Tax, dated 19th June 2017, under the powers of Sections 3 and 5 of the CGST Act, 2017, and Section 3 of the IGST Act, 2017.

 

Key Updates:

  • Revised Table V:

The updated table specifies the powers of Additional Commissioners or Joint Commissioners of Central Tax to pass orders or decisions on notices issued by officers of the Directorate General of Goods and Services Tax Intelligence (DGGI) under sections 67, 73, 74, 76, 122, 125, 127, 129, and 130 of the CGST Act, 2017.

  • Jurisdiction:

The table lists 23 Commissioners and Principal Commissioners from various locations across India, including Ahmedabad South, Bengaluru East, Delhi North, Chennai South, Kolkata North, and others, who can exercise these powers.

  • Effective Date:

This notification comes into effect on 1st December 2024.

  • Notification No. S.O. 5063(E) [F. NO. A-50050/99/2024-GSTAT-DOR], Dated 26-11-2024[As amended by notification no. S.O. 5128(E) [F.NO. A-50050/99/2024-GSTAT-DOR], Dated 29-11-2024], appellate tribunal and benches thereof- constitution of-constitution of principal and state benches of Goods and Services Tax appellate services Tax appellate tribunal

The Central Government, under the powers granted by sub-sections (1), (3), and (4) of section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017), and based on the recommendation of the GST Council, makes the following amendments to its notification dated 31st July 2024 (S.O. 3048(E)):

  • in clause (iii), in the Table of the said notification: –
  • For Serial Number 25: In Column (4), replace “Varanasi” with “Prayagraj. “In Column (5), replace “Prayagraj” with “Varanasi.”
  • For Serial Number 19: In Column (4), replace “Jalandhar” with “Chandigarh. “In Column (5), replace “Chandigarh” with “Jalandhar.”
    • Addition of New Clause:

A new clause (iv) is added to specify the districts under the jurisdiction of the State Benches of the GST Appellate Tribunal. The locations of the benches (Column 3), their jurisdictions (Column 4), and their sittings or circuits (Column 6) will take effect from the date of publication of this notification in the Gazette of India.

       High Court Jurisdictions in India

Sno.State NameLocationsJurisdiction
1.Andhra PradeshVijayawada, VisakhapatnamCovers all districts in Andhra Pradesh
2.BiharPatnaAll districts in Bihar
3.

 

ChhattisgarhRaipurAll districts in Chhattisgarh
4.DelhiDelhiAll districts in the Union Territory of Delhi
5.Gujarat and DNHDD (Dadra & Nagar Haveli and Daman & Diu)Ahmedabad, Surat, RajkotAll districts in Gujarat and the Union Territory of DNHDD
6.

 

HaryanaGurugram, HissarAll districts in Haryana
7.Himachal PradeshShimlaAll districts in Himachal Pradesh
8.Jammu & Kashmir and LadakhJammu, SrinagarAll districts in J&K and Ladakh
9.JharkhandRanchiAll districts in Jharkhand
10.KarnatakaBengaluruAll districts in Karnataka
11.Kerala and LakshadweepErnakulam, ThiruvananthapuramAll districts in Kerala and Lakshadweep
12.Madhya PradeshBhopalAll districts in Madhya Pradesh
13.Maharashtra and GoaMumbai, Pune, Nagpur, Panaji (Circuit)All districts in Maharashtra and Goa
14.OdishaCuttackAll districts in Odisha
15.Punjab and Chandigarh

 

Chandigarh, JalandharAll districts in Punjab and Chandigarh
16.RajasthanJaipur, JodhpurAll districts in Rajasthan
17.Tamil Nadu and PuducherryChennai, Madurai, Coimbatore, Puducherry (Circuit)All districts in Tamil Nadu and Puducherry
18.TelanganaHyderabadAll districts in Telangana
19.Uttar PradeshLucknow, Prayagraj, Varanasi, Ghaziabad, AgraAll districts in Uttar Pradesh
20.UttarakhandDehradunAll districts in Uttarakhand
21.West Bengal, Sikkim, Andaman & Nicobar IslandsKolkataAll districts in West Bengal, Sikkim, and Andaman & Nicobar Islands
22.Northeast States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura)Guwahati (Main), Aizawl (Mizoram), Kohima (Nagaland), Agartala (Tripura)Covers all districts of these states

 

  • Notification No. 28/2024- Central Tax [S.O. 5091(E)/F. NO. CBIC-20010/22/2024-GST], Dated 27-11-2024, Read with section 3 of the integrated Goods and Services Tax Act, 2017- Officers- Powers of- Appointment of officers to pass decision or orders in respect of notices issued to specified notices by officers of Directorate General Intelligence

Under the powers granted by Section 5 of the Central Goods and Services Tax Act, 2017, and Section 3 of the Integrated Goods and Services Tax Act, 2017, the Central Board of Indirect Taxes and Customs designates the officers Joint Commissioner or Additional Commissioner, CGST and Central Excise Thane Commissionerate. These officers are authorized to pass orders or decisions on notices issued to the individuals or entities by the Directorate General of Goods and Services Tax Intelligence under Sections 73, 74, 122, 125, and 127 of the Central Goods and Services Tax Act, 2017.

  • Notification No. 29/2024 – Central Tax [G.S.R.735(E)/F. NO. CBIC-20001/9/2024-GST], Dated 27-11-2024, furnishing of returns – extension of due date to furnish return in Form GSTR-3B for month of October, 2024, for registered persons having Principal place of business in specified state
  • The Commissioner, based on the recommendations of the GST Council, has extended the deadline for filing the GSTR-3B return for October 2024.
  • New Deadline: November 30, 2024.
  • Who is affected: Registered taxpayers whose primary business location is in Manipur and are required to file returns under Section 39(1) of the CGST Act, 2017, and Rule 61(1)(i) of the CGST Rules, 2017.
  • This notification is effective retrospectively from November 20, 2024.
  • Notification No. S.O. 5128(E) [F. NO. A-50050/99/2024-GSTAT-DOR], Dated 29-11-2024, Appellate tribunal and benches thereof- Constitution of – Constitution of Principal and State benches of Goods and Services Tax Appellate Tribunal- Corrigendum to notification no. S.O. 5063(E), Dated 26-11-2024

The Ministry of Finance (Department of Revenue) has issued a correction to its notification published in the Gazette of India on November 26, 2024 (S.O. 5063(E)):

  • In Serial No. 21, Column (1), for the Jaipur Bench (Column 3), under Sr. 1, Column (4), the word “Alwar” is replaced with “Ajmer.”
  • Circular No. 239/33/2024 – GST [F. NO. CBIC-20016/2/2022-GST], Dated 4-12-2024, officers under this Act- notified proper officer under Sections 73 and 74 – Amendment in circular No. 31/05/2018-GST, Dated 9-2-2018
  • Empowerment of Additional/Joint Commissioners:
  • Notification No. 2/2022-Central Tax (11th March 2022) added para 3A to empower Additional/Joint Commissioners in certain Central Tax Commissionerate’s with All India jurisdiction to adjudicate show-cause notices from the Directorate General of Goods and Services Tax Intelligence (DGGI).
  • Further, Notification No. 27/2024-Central Tax (25th November 2024) expanded this empowerment to more Additional/Joint Commissioners, effective from 1st December 2024.
  • Update to Circular No. 31/05/2018-GST:
  1. Para 7.1 of the circular is amended for adjudication of DGGI show-cause notices when:
  • Notices are issued to multiple entities (same or different PANs), or
  • Multiple notices are issued to entities with the same PAN.
  1. If these entities are under different Central Tax jurisdictions, adjudication can be done by any empowered Additional/Joint Commissioner with All India jurisdiction.
  2. Adjudication is based on the highest demand of tax in the notice. If the principal place of business with the highest demand is in a specific jurisdiction, the case will be handled by the corresponding Additional/Joint Commissioner.
  • Notification No. 30/2024 – Central Tax [F. NO. CBIC-20001/10/2024-GST], Dated 10-12-2024, section 39 of the Central Goods and Services Tax Act, 2017 – Furnishing of returns – Extension of due date to furnish Form GSTR-3B for month of October, 2024, for registered persons having principal place of business at notified place
  • The due date for filing the GSTR-3B return for October 2024 is extended to 11th December 2024 for registered persons whose principal place of business is in Murshidabad, West Bengal. This applies to those required to file under section 39(1) of the Central GST Act.
  • This extension is effective from 20th November 2024.
  • Notification No. 31/2024 – Central Tax [S.O. 5392(E)/F. NO. CBIC-20010/27/2024-GST], Dated 13-12-2024, officers – Powers of – appointment of officers to pass decision or orders in respect of notices issued to specified notices by officers of Directorate General of GST Intelligence

The Central Board of Indirect Taxes and Customs has appointed officers like Additional/Joint Commissioner, CGST, Chandigarh to make decisions or pass orders regarding notices by Joint Director, DGGI, Hqrs issued to the notices listed by the Directorate General of Goods and Services Tax Intelligence under sections 73, 74, 122, 125, and 127 of the Central Goods and Services Tax Act, 2017.

  • Caution To Public

The Securities and Exchange Board of India (SEBI) has issued a caution to the public regarding unregistered online platforms offering unlisted debt securities. These platforms lack regulatory oversight and basic investor protection. SEBI warns that these activities violate the Companies Act, 2013, SEBI Act, 1992, Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations, 2003, and SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. The public is advised to exercise caution when undertaking transactions on such platforms. SEBI has issued an interim order against some entities operating such platforms. Investors are advised to use online bond platforms operated by SEBI-registered stock brokers authorized by the Bombay Stock Exchange and/or the National Stock Exchange.

IBC

Extension of Time for Filing Forms to Monitor Liquidation and Voluntary Liquidation Processes under the Insolvency and Bankruptcy Code, 2016, and the Regulations made thereunder

The Insolvency and Bankruptcy Board of India has issued circular on Extension of time for filing forms to monitor liquidation and voluntary liquidation processes under the Insolvency and Bankruptcy Code, 2016, and the Regulations made thereunder. Last date of submission of the forms relating to the liquidation process is latest by December 30, 2024.

Other Laws

  • Companies with turnover above Rs. 250 crore must get onboarded on ‘Trade Receivables Discounting Platforms’ by 31.03.2025

In line with section 9 of the MSME Development Act, 2006, the Central Government has mandated that all companies registered under the Companies Act, 2013, with a turnover of more than Rs. 250 crores and all Central Public Sector Enterprises (CPSEs) be onboarded on the Trade Receivables Discounting System (TReDS) platforms as notified by the RBI. The onboarding process for these entities must be completed by March 31, 2025.

 

  • Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

The Securities and Exchange Board of India has notified amendment under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 wherein:

 

  1. Regulation 2, sub-regulation (1), in clause (d), sub-clause (i) shall be read as follows:

 

  • any person who is or has been, during the six months prior to the concerned act, associated with a company, in any capacity, directly or indirectly, including by reason of frequent communication with its officers or by being in any contractual, fiduciary or employment relationship or by being a director, officer or an employee of the company or holds any position including a professional or business relationship, whether temporary or permanent, with the company, that allows such a person, directly or indirectly, access to unpublished price sensitive information or is reasonably expected to allow such access, etc.

 

  1. They shall come into force on the date of their publication in the Official Gazette.

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for    the period 30.11.2024.

Executive Summary

Income Tax

  • Specifying Forms prescribed in Appendix-II of The Income Tax Rules, 1962 to be furnished electronically under Sub-Rule (1) and Sub-Rule (2) of Rule 131 of the Income Tax Rules,1962.
  • Specifying Forms prescribed in Appendix-II of The Income Tax Rules, 1962 to be furnished electronically under Sub-Rule (1) and Sub-Rule (2) of Rule 133 of the Income Tax Rules,1962.
  • Section 119, Read with Section 220 of The Income Tax Act, 1961- CBDT- fixing monetary limit of Income Tax Authorities in respect of reduction or waiver of interest paid or payable u/s 220(2)
  • Section 119 of The Income Tax Act, 1961- CBDT- Condonation of delay u/s 119(2)(b) in filing of Form no. 10-IC and Form no. 10-ID for A.Y. 2020-21, 2021-22 and 2022-23.

Goods And Service Tax (GST)

  • Circular No. 237/31/2024-GST [F.NO. CBIC-20001/6/2024-GST] Clarifying the issues regarding implementation of provisions of Sub- Section (5) and Sub-Section (6) in section 16 OF CGST ACT, 2017
  • Circular No. 238/32/2024-GST [F. NO. CBIC-20001/6/2024-GST] Clarification of various doubts related to Section 128A OF THE CGST ACT, 2017
  • Notification No. G.S.R. 644(E) [NO. 109 (F. NO. A-50050/2/20… Goods and Services Tax Council Secretariat, Group ‘A’ Executive posts recruitment (Amendment) Rules, 2024 – Amendment in Rule 7 and Schedule
  • Corrigendum G.S.R. 652(E) [F. NO. 190354/149/2024-TO (TRU-II)-PART-I CBEC], Dated 22-10-2024, Section 9 of the Central Goods and Services Tax Act, 2017
  • Corrigendum to Circular No. 237/31/2024-GST [F.NO. CBIC-20001/6/2024- GST, dated 25-10-2024, Clarifying the issues regarding implementation of provisions of Sub- Section (5) and Sub-Section (6) in section 16 of CGST ACT, 2017
  • Notification No. 26/2024–CENTRAL TAX [G.S.R. 713(E)/F. NO CBIC-20001/8/2024-GST], Dated 18-11-2024, Section 39 of the Central Goods and Services Tax Act, 2017-Furnishing of Returns- Extension of due date to furnish form GSTR-3B for month of October 2024, for registered person having specified principal place of business.

Companies Act 2013/ Other Laws

  • Filing of Financial Statements of Producer Companies within 60 days of Annual General Meeting
  • Reporting of Foreign Exchange Transactions to Trade Repository
  • Operational Framework for Reclassification of Foreign Portfolio Investment to Foreign Direct Investment (FDI)
  • Onboarding Process on the Trade Receivables Discounting System
  • SEBI (Bankers to an Issue) (Amendment) Regulations, 2024.

 

 

CBDT Notification No. 33/2023-Income Tax, Dated: 29th May, 2023

  • · Specifying Forms Prescribed In Appendix-Ii Of The Income Tax Rules, 1962, To Be Furnished Electronically Under Sub Rule (1) And Sub- Rule (2) Of Rule 131 Of The Income Tax Rules, 1962

    a)      In exercise of the powers conferred under sub-rule (1) and sub-rule (2) of Rule 131 of the Income-tax Rules, 1962 (‘the Rules’), the Director General of Income Tax (Systems), Bengaluru with the approval of the Board, hereby specifies that the following Forms shall be furnished electronically and shall be verified in the manner prescribed under sub-rule (1) of Rule 131:

    FormDescription
    Form 3CEDAApplication for the rollback of an Advance Pricing Agreement
    Form 3  COApplication form for approval under sub-section (1) of section 35CCC of the Income Tax Act, 1961

     

    1. This notification shall come into effect from 31st October 2024.
    • Specifying Forms Prescribed In Appendix-Ii Of The Income Tax Rules ,1962 To Be Fuurnished Elecctronically Under Sub-Rule (1) And Sub-Rule (2) Of Rule 133
    1. In exercise of the powers conferred under sub-rule (1) and sub-rule (2) of Rule 131 of the Income-tax Rules, 1962 (‘the Rules’), the Director General of Income Tax (Systems), with the approval of the Board, hereby specifies that the following Forms that shall be furnished electronically and shall be verified in the manner prescribed under sub-rule (1) of Rule 131:—

     

    FormDescription
    Form 42Appeal against refusal to recognise or withdrawal of recognition from a provident fund
    Form 43Appeal against refusal to approve or withdrawal of approval from a superannuation fund
    Form 44Appeal against refusal to approve or withdrawal of approval from a gratuity fund

     

    1. This notification shall come into effect from 22-11-2024.
    • Section 119, Read With Section 220 Of The Income Tax Act, 1961-Cbdt-Fixing Monetary Limit Of Income–Tax Authorities In Respect Of Reduction Or Waiver Of Interest Paid Or Payable Under Section 220(2)
    1. Section 220(2) of the Income-tax Act (‘the Act’) deals with the consequences of non-payment of income tax by a taxpayer. As per Section 220(2) of the Act, if a taxpayer fails to pay the amount specified in any notice of demand under section 156 of the Act,the person shall be liable to pay simple interest at the rate of 1 % per month or part of the month for the period of delay in making the payment. Further, section 220(2A) of the Act empowers the Principal Chief Commissioner (Pr. CCIT) or Chief Commissioner (CCIT) or Principal Commissioner (Pr. CIT) or Commissioner (CIT) for reduction or waiver of the amount paid or payable under section 220(2) of the Act in the circumstances specified therein.
    2. The Central Board of Direct Taxes, for the proper administration of the Act, hereby specifies the following monetary limits as below:
    Income-Tax AuthorityMonetary limits for reduction or waiver of interest
    Pr. CIT/CITUpto Rs. 50 lacs
    CCIT/DGITAbove Rs. 50 lacs to Rs. 1.5 crore
    Pr. CCITAbove Rs. 1.5 crore

     

    1. The powers of reduction or waiver of interest paid or payable u/s 220(2) of the Act shall continue to be subject to satisfaction of all the following conditions-
    • Payment of such amount has caused or would cause genuine hardship to the assessee,
    • Default in the payment of the amount on which interest has been paid or was payable under the sub-section was due to circumstances beyond the control of the assessee; and
    • The assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.
    1. The above shall come into effect from the date of issue of this circular.

     

    • Section 119 of the income tax act,1961-cbdt-condonation of the dealy under section 119(2)(b) in filing of form no. 10-ic and from no. 10-id for assessment years 2020-21, 2021-22 and 2022-23
    1. In exercise of the powers conferred under section 119(2)(b) of the Income-tax Act, 1961, the Central Board of Direct Taxes by Circular No. 6/2022, dated 17-03-2022 and Circular No. 19/2023, dated 23-10-2023 condoned the delay in filing of Form No. 10-IC as per Rule 21AE of the Income-tax Rules, 1962 for Assessment Years 2020-21 and 2021-22 in cases where the conditions mentioned in the said Circulars are satisfied.
    2. With a view to avoid genuine hardship to the assessee in exercising the option, under section 115BAA of the Act, read with Rule 21AE of the Rules or under section 115BAB of the Act, read with Rule 21AF of the Rules, the CBDT in exercise of the powers conferred under section 119(2)(b) of the Act, hereby authorizes: –
      • the Pr. Commissioners of Income Tax (‘Pr. CsIT’)/ Commissioners of Income Tax (‘CslT’) to admit and deal with the applications for condonation of delay in filing of Form No. 10-IC or Form No. 10-ID for Assessment Years 2020-21, 2021-22 and 2022-23 where there is a delay of upto 365 days.
      • the Pr. Chief Commissioners of Income Tax (‘Pr. CCsIT’)/Chief Commissioners of Income Tax (‘CCsIT’)/ Directors General of Income Tax (‘DsGIT’) to admit and deal with the applications for condonation of delay in filing of Form No. 10-IC or Form No. 10-ID for Assessment Years 2020-21, 2021-22 and 2022-23 where there is a delay of more than 365 days.
    3. The Pr. CCsIT/CCsIT/DsGIT/Pr. CsIT/CsIT shall ensure that the following conditions are satisfied, while deciding such applications: –
      • The return of income for relevant assessment year has been filed on or before the due date specified under the section 139(1) of the Act.
      • The assessee has opted for taxation, u/s 115BAA of the Act in case condonation of delay is for Form No. 10-IC and u/s 115BAB of the Act in case condonation of delay is for Form No. 10-ID, in “Filing Status” in “Part A-GEN” of the Form of Return of Income ITR-6; and
      • The assessee was prevented by reasonable cause from filing such Form before the expiry of the time allowed and the case is of genuine hardships on merits.

    No application for condonation of delay in filing of Form No. 10-IC or Form No. 10-ID shall be entertained beyond three years from the end of the assessment year for which such application is made. The time limit for filing of such application within three years from the end of the assessment year will be applicable for application filed on or after the date of issue of this Circular. A condonation application should be disposed of, as far as possible, within six months from the end of the month in which such application is received by the Competent Authority.

 

  • Circular No. 237/31/2024-GST [F.NO. CBIC-20001/6/2024-GST] Clarifying the issues regarding implementation of provisions of Sub- Section (5) and Sub-Section (6) in section 16 OF CGST ACT, 2017
  • Section 16 Amendments:
  • The Finance (No. 2) Act, 2024 extends the time for claiming Input Tax Credit (ITC) retrospectively, especially for taxpayers affected by wrongful ITC claims under Section 16(4) of the CGST Act.
  • ITC can be claimed under newly inserted provisions 16(5) and 16(6) for past periods where it was previously denied.
  • Refunds and Appeals:
  • No refund for taxes or ITC reversals due to violations of Section 16(4), even if ITC is now allowed under Section 16(5) or 16(6) (as per Section 150 of the Finance Act, 2024).
  • Taxpayers who were denied ITC due to Section 16(4) can now apply for rectification through a special procedure (Notification No. 22/2024, dated 8th October 2024).
  • Rectification applications must be submitted electronically within 6 months from the notification date.
  • Action for Rectification:
  • Taxpayers can apply for rectification if ITC was wrongly denied due to Section 16(4). The rectification will be handled by the officer who issued the original order and must be completed within 3 months.
  • In case of adverse effects from rectification, natural justice principles will apply.

 

 

  • Implementation:
  • The tax authorities must consider the new provisions when issuing orders or rectifications for cases involving wrongful ITC claims under Section 16(4).
  • Suitable notices should be issued to inform the public about these changes.
  • Limitations:

Rectification applications under Notification No. 22/2024 can only be filed for cases where ITC was denied under Section 16(4) but is now allowed under Section 16(5) or 16(6). Other cases must follow the regular process within the set time limits.

  • Further Clarifications: Any difficulties in implementation should be communicated to the Board for resolution.

 

  • Circular No. 238/32/2024-GST [F. NO. CBIC-20001/6/2024-GST] Clarification of various doubts related to Section 128A OF THE CGST ACT, 2017
  • Waiver of Interest/Penalty: Section 128A, effective from 1-11-2024, allows taxpayers to waive interest or penalty related to tax demands under Section 73 for FY 2017-18 to 2019-20, subject to certain conditions. The waiver applies only if the taxpayer fulfills the specified conditions.
  • Key Provisions:
  • Notification & Rule: Rule 164, effective from 1-11-2024, outlines the procedure for applying for the waiver. Taxpayers must pay the demanded tax by 31-03-2025 or within six months if re-determined by a proper officer.
  • Application Forms: Taxpayers must file applications in FORM GST SPL-01 or FORM GST SPL-02 on the portal by 31-03-2025 or within six months in specific cases.
  • Payment Process:
  • Payment Deadlines: Tax must be paid through FORM GST DRC-03 or ELR before the waiver can be processed. Any amounts due to Section 16(4) violations, now eligible under Sections 16(5) or 16(6), are excluded from the tax amount for waiver eligibility.
  • Waiver Eligibility: The waiver applies only to tax demands related to the specified periods and issues like erroneous refunds.
  • Processing Applications:
  • Applications are reviewed by the proper officer. If they meet criteria, the officer issues a waiver order (FORM GST SPL-05). If not, the application may be rejected (FORM GST SPL-07).
  • Appeals: Appeals can be filed against rejection orders but not against approvals. The appellate authority can modify the tax liability in such cases.

 

  • Additional Clarifications:
  • Rejection & Appeal: If a waiver application is rejected, the taxpayer may file an appeal. If the appeal is in his favor, the liability is adjusted in the Electronic Liability Register (ELR).
  • Final Decisions: Once an order is passed, the taxpayer must pay any remaining interest or penalties within three months to keep the waiver valid. This process ensures clarity on tax demands and provides taxpayers with an opportunity to avoid interest and penalty payments under specified conditions.

Further, the following issues with respect to availing the benefit of waiver of interest or penalty or both provided under Section 128A, are also clarified hereby: –

  • Tax Paid Before Section 128A Came into Effect: Tax paid before or after Section 128A came into effect will be considered for the waiver, as long as it was paid for the specified demand.
  • Tax Paid by Another Person on Behalf of Taxpayer: Amount recovered by tax officers from another person on behalf of the taxpayer can be counted as tax paid under Section 128A, if it was recovered before the notified date.
  • Interest/Penalty Adjustments: Interest or penalty amounts cannot be adjusted against tax dues for Section 128A benefits.
  • Tax Paid & Only Interest/Penalty Demand: If tax is already paid and only interest/penalty remains, Section 128A benefits can still apply, except for interest due to delayed returns or supply reporting.
  • Partial Waiver & Litigation: Partial payments for interest/penalty and litigation are not allowed; full payment is required for Section 128A benefits.
  • Multiple Tax Periods in One Notice: For a notice covering multiple periods, tax for the entire period must be paid, but the waiver only applies to the periods under Section 128A.
  • Erroneous Refund Demand: Tax must be paid in full (including for erroneous refunds) to avail waiver, but the waiver applies only to tax demand, not the erroneous refund penalty.
  • Appeals & Enhanced Tax Liability: If the tax liability is increased in an appeal, the taxpayer must pay the additional amount within 3 months for the Section 128A waiver to remain valid.
  • Pending SLP in Supreme Court: If an SLP is pending, the taxpayer must withdraw it and apply in FORM GST SPL-01 or SPL-02, with proof of withdrawal.
  • IGST & Compensation Cess: Section 128A applies to IGST and Compensation Cess, provided the full tax (including CGST, SGST, IGST, and Cess) is paid.
  • Irregular Transitional Credit: If wrongly availed transitional credit is involved and the demand is under Section 73, it’s covered under Section 128A.
  • Late Fees and Redemption Fine: Late fees and redemption fines are not covered by Section 128A, but penalties under sections 73, 122, and 125 are.
  • Payment Using ITC: Tax payments for Section 128A can be made using ITC, except for reverse charge or erroneous refund cases, which require payment in cash.
  • Reduced Tax Due to Retroactive Changes: Pay only the adjusted tax amount after applying the changes due to Sections 16(5) or (6) for transitional credit issues.
  • Filing Adjustments for DRC Payments: If tax is paid through FORM GST DRC-03, the taxpayer must adjust the payment using FORM GST DRC-03A before filing an application in FORM GST SPL-02.

 

 

  • It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
  • Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board.
  • Notification No. G.S.R. 644(E) [NO. 109 (F. NO. A-50050/2/20… Goods and Services Tax Council Secretariat, Group ‘A’ Executive posts recruitment (Amendment) Rules, 2024 – Amendment in Rule 7 and Schedule

The Goods and Services Tax Council Secretariat, Group ‘A’ Executive Posts Recruitment (Amendment) Rules, 2024 are as follows:

  1. Title and Commencement: These are called the “Goods and Services Tax Council Secretariat, Group ‘A’ Executive Posts Recruitment (Amendment) Rules, 2024” and will come into force from the date of publication in the Official Gazette.
  2. Amendments:
  • Rule 7: Add “Other Backward Classes” after “Scheduled Tribes”.
  • Schedule Changes:
  • For the Director post (Serial No. 1), the requirement “is necessary” in column (13) is changed to “is not necessary”.
  • For the Deputy Secretary post (Serial No. 2), the requirement “is necessary” in column (13) is changed to “is not necessary”.
  • For the Under Secretary post (Serial No. 3), the requirement “is necessary” in column (13) is changed to “is not necessary”.

 

 

  • Corrigendum G.S.R. 652(E) [F. NO. 190354/149/2024-TO (TRU-II)-PART-I CBEC], Dated 22-10-2024, Section 9 of the Central Goods and Services Tax Act, 2017

In the Notification No. 09/2024-Central Tax (Rate) dated 8th October 2024, the term “any property” in serial number 5AB, column (2), line 12 is corrected to “any immovable property”.

  • Corrigendum to Circular No. 237/31/2024-GST [F.NO. CBIC-20001/6/2024- GST, dated 25-10-2024, Clarifying the issues regarding implementation of provisions of Sub- Section (5) and Sub-Section (6) in section 16 of CGST ACT, 2017

The following is added to the end of para 4 of the circular:

“The restriction on refunds under Section 150 of the Finance (No. 2) Act, 2024 does not apply to refunds of pre-deposits made by the taxpayer under Section 107(6) or Section 112(8) of the CGST Act, if the appeal is decided in the taxpayer’s favor.”

  • Notification No. 26/2024–CENTRAL TAX [G.S.R. 713(E)/F. NO CBIC-20001/8/2024-GST], Dated 18-11-2024, Section 39 of the Central Goods and Services Tax Act, 2017-Furnishing of Returns- Extension of due date to furnish form GSTR-3B for month of October 2024, for registered person having specified principal place of business.

The Commissioner, based on the GST Council’s recommendation, extends the deadline for filing FORM GSTR-3B for October 2024 until November 21, 2024, for registered taxpayers whose principal place of business is in Maharashtra or Jharkhand.

 

  • Filing of Financial Statements of Producer Companies within 60 days of Annual General Meeting

 

The Ministry of Corporate Affairs has notified that Producer companies shall file their Financial Statements with the Registrar within 60 days of the annual general meeting, as per section 378ZA(10) of the Companies Act,2013. Additional fee logic changes in Form AOC-4 are expected to be deployed in the next week to enable filing within 60 days with nominal fee.

 

 

RBI

  • Reporting of Foreign Exchange Transactions to Trade Repository

 

The Reserve Bank of India has expanded the reporting requirements for foreign exchange contracts. Authorised Dealers are now required to report all foreign exchange spot, cash, and tom deals to the Trade Repository of Clearing Corporation of India Limited (CCIL), ensuring completeness of transaction data. Starting February 10, 2025, inter-bank FX contracts must be reported in hourly batches, while client FX contracts exceeding USD One Million (USD 1,000,000) and USD Fifty Thousand (USD 50,000) must be reported by May 12, 2025, and November 10, 2025, respectively. Dealers must ensure the accuracy of transactions and reconcile outstanding balances with the Trade Repository.

  • Operational Framework for Reclassification of Foreign Portfolio Investment to Foreign Direct Investment (FDI)

The Reserve Bank of India (RBI) has informed that the the Central Government has notified the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, which require that foreign portfolio investors (FPIs) and their investor group limit their investments to less than Ten (10%) of a company’s total paid-up equity capital on a fully diluted basis, if this limit is breached, FPIs must either divest their holdings or reclassify them as Foreign Direct Investment (FDI), An operational framework for this reclassification has been provided in the Circular, and AD Category – I banks are tasked with facilitating the reporting of such transactions. The directions are effective immediately.

 

Other Laws

  • Onboarding Process on the Trade Receivables Discounting System Description

The Ministry of Micro, Small and Medium Enterprises has issued a notification  wherein:

  1. All companies registered under the Companies Act, 2013 (18 of 2013) with a turnover of more than Rs. 250 crore (two hundred and fifty crore rupees) and all Central Public Sector Enterprises shall be required to get themselves onboarded on the Trade Receivables Discounting System platforms, set up as per the notification of the Reserve Bank of India.
  2. The onboarding process on the Trade Receivables Discounting System platforms shall be completed by 31st March 2025

 

  • SEBI (Bankers to an Issue) (Amendment) Regulations,2024

The Securities and Exchange Board of India has notified amendments in the SEBI (Bankers to an Issue) Regulations, 1994 wherein Regulation 2 and 3  has been amended as specified therein and these regulations may be called SEBI (Bankers to an Issue) (Amendment) Regulations, 2024. They shall come into force from immediate effect.

 

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for    the period 30.11.2024.

Executive Summary

Income Tax

  • Further Extension of due date for furnishing Audit Report in Form nos. 10B and 10BB by Trusts and Financial Institutions.
  • Section 206 of The Income Tax Act,1961- TCS – Profits and Gains from business of trading in alcoholic liquor, forest produce, scrap etc. – No TCS shall be made under section 206(1F) on any payment received from RBI.
  • Ease in Claiming credit for TCS collected/TDS deducted for salaried employees by introducing Form no. 12BAA and enabling claiming TCS credit of minors in the hands of parents.

Goods And Service Tax (GST)

  • Instruction No. 4/2024 – GST [F. NO.: CBIC-20016/26/2024-GST], Dated 4-10-2024, Systemic improvement with respect to Mapping/ De-Mapping of the officers on the GSTN portal -Regarding
  • Notification No. 8/2024- Central Tax (Rate) [G.S.R. 620(E)/F. NO. 190354/149/2024-TO(TRU-II) – PART-I CBEC], Dated 8-10-2024
  • Notification No. 9/2024- Central Tax (Rate) [G.S.R. 623(E) /F. NO. 190354/149/2024-TO(TRU-II) – PART-I CBEC], Dated 8-10-2024
  • Notification No. 20/2024 – Central Tax [G.S.R. 626(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024
  • Notification No. 21/2024– Central Tax [S.O. 4372(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024
  • Notification No. 22/2024– Central Tax [S.O. 4373(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024
  • Notification No. 23/2024– Central Tax [S.O. 4374(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024
  • Notification No. 24/2024- Central Tax [G.S.R 628(E)/F.NO. CBIC-190354/149/2024-TO(TRU-II)], Dated 9-10-2024
  • Circular No. 234/28/2024 – GST [F. NO. CBIC-190354/149/2024-TO(TRU-II)-CBEC], Dated 11-10-2024
  • Circular No. 235/29/2024 – GST [F. NO. CBIC-190354/149/2024-TO(TRU-II)-CBEC], Dated 11-10-2024
  • Circular No. 236/30/2024 – GST [F. NO. CBIC-190354/149/2024-TO(TRU-II)-CBEC], Dated 11-10-2024

Companies Act 2013/ Other Laws

  • Companies (Indian Accounting Standards) Third Amendment Rules, 2024
  • Directions – Compounding of Contraventions under FEMA, 1999
  • Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Amendment Rules, 2024
  • Companies (Adjudication of Penalties) Second Amendment Rules, 2024
  • Directions – Compounding of Contraventions under FEMA, 1999 (Notification Date: 2024-10-01 vide Notification No: RBI/FED/2024-25/78 A.P. (DIR Series) Circular.No.17/2024-25

 

Income Tax

Further Extension Of Due Date For Furnishing Audit Report In Form Nos.10b And 10bb By Trusts And Financial Institutions

 

a)      By Circular NO. 2/2024, CBDT had allowed those trusts/institutions/funds which have furnished audit report on or before 31st October, 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa to furnish the audit report under clause (b) of the tenth proviso to clause (23C) of section 10 and sub-clause (ii) of clause (b) of sub-section (1) of section 12A of the Income-tax Act, 1961, in the applicable Form No. 10B/10BB for the assessment year 2023-24, on or before 31st March, 2024,

 

  1. On consideration of the matter, with a view to avoid genuine hardship to those trusts/institutions/funds, for which the date of 31st March, 2024 was prescribed to furnish the audit report in the applicable Form No. 10B/10BB, by the above mentioned Circular No. 2/2024, dated 5-3-2024, the CBDT in exercise of the powers conferred under section 119 of the Act, hereby further allows such trusts/institutions/funds to furnish such audit report in the applicable Form No. 10B/10BB on or before 10th November, 2024.

 

  • Section 206 of the income tax act, 1961 – tcs – profits and gains from business of trading in alcoholic liquor, forest produce, scrap, etc. – no collection of tax shall be made under sub-section (1f) of said section on any payment received from reserve bank of india
  1. Central Government hereby specifies that no collection of tax shall be made under sub-section (1F) of section 206C of the said Act on any payment received from the Reserve Bank of India.
  2. This notification shall come into force on the date of its publication in the Official Gazette.

 

  • CBDT Notifies Amendments In Income-Tax Rules For Ease In Claiming Credit For Tcs Collected/Tds Deducted For Salaried Employees And Enabling Claiming Tcs Credit Of Minors In The Hands Of Parents
  1. Sub-section (2B) of Section 192 of the Income-tax Act, 1961 was amended videthe Finance (No. 2) Act, 2024 (FA (No. 2)) to include any tax deducted or collected at source under the provisions of Chapter XVII-B or Chapter XVII-BB, as applicable, for the purpose of making tax deductions in the case of salaried employees.
  2. Vide CBDT Notification No. 112/2024, dated 15-10-2024, the Income-tax Rules, 1962 have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Act. Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192. The employer, in turn, shall deduct TDS on salary after taking into account the furnished particulars.
  3. Further, sub-section (4) of Section 206C of the Act was amended videFA (No. 2) to allow the credit of TCS to a person other than the collectee —such as a parent in the case of a minor collectee—when the minor’s income is clubbed with that of the parent. Accordingly Vide CBDT Notification No. 114/2024, dated 16-10-2024 Rule 37-I of the Rules has been amended to allow credit of tax collected at Source to a person other than the collectee, in whose hands the income of the collectee is assessable.

  • Instruction No. 4/2024-GST [F. NO.: CBIC-20016/26/2024-GST], Dated 4-10-2024, Systemic improvement with respect to Mapping/ De-Mapping of the officers on the GSTN portal -Regarding
  1. A reference has been received from the DGoV, CBIC, New Delhi stating therein that a GST officer, mapped in the GSTN portal, was not de-mapped with immediate effect after his relieving from the charge, which resulted into fraudulent sanction of refund by the officer.
  2. DGoV (Hqrs) has recommended that officers should be immediately de-mapped from the GSTN portal upon completing the GFR-33. Supervisory officers, ideally at the Joint or Additional Commissioner level, should monitor this process and submit a compliance report to the jurisdictional Commissioner within a specified timeframe. Additionally, responsibility and accountability for mapping/un-mapping officers on the GSTN portal should be clearly assigned to the relevant jurisdictional officers.
  3. In view of the above, it is requested that all Principal Commissioners/ Commissioners or equivalent, may be directed to ensure strict compliance of the directions given by the Directorate General of Vigilance (DGoV) in this regard.

 

  • Notification No. 8/2024- Central Tax (Rate) [G.S.R. 620(E)/F. NO. 190354/149/2024-TO(TRU-II) – PART-I CBEC], Dated 8-10-2024, Section 11 of the Central Goods and Services Tax Act, 2017- Power to grant exemption from tax – CGST exempt services (NIL rated services) – Amendment in Notification No. 12/2017-Central Tax (Rate), Dated 28-6-2017

The Central Government, exercising its powers under the Central Goods and Services Tax Act, 2017, amends notification number 12/2017-Central Tax (Rate) dated 28th June 2017, based on the Council’s recommendations. The key amendments are as follows:

  1. New Entries Added:

25A: Services related to metering equipment on rent and ancillary services for electricity transmission and distribution are classified under HS 9969 or 9986 with a GST rate of Nil.

    • 44A: Research and development services funded by government entities or specific institutions under HS 9981 also attract a Nil GST rate.
    • 66A: Services of affiliation provided by educational bodies to government-controlled schools are classified under HS 9992 with a Nil GST rate.
  1. Amended Entry:
    • 69: Services provided by recognized skill development entities related to national skill programs are classified under HS 9983, 9991, or 9992, attracting a Nil GST rate.
  2. Terminology Update:
    • “National Council for Vocational Training” is replaced with “National Council for Vocational Education and Training” in multiple instances.
  3. Effective Date:
    • These amendments will come into force on 10th October 2024.

 

  • Notification No. 9/2024- Central Tax (Rate) [G.S.R. 623(E) /F. NO. 190354/149/2024-TO(TRU-II) – PART-I CBEC], Dated 8-10-2024, Section 9 of the Central Goods and Services Tax Act, 2017 – Levy and collection of Tax – Reverse charge on certain specified supplies of services -Amendment in Notification No. 13/2017 – Central Tax (Rate), Dated 28-6-2017

In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 13/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely: –

  • In the said notification, in the Table, after serial number 5AA and the entries relating thereto, the following serial number and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely: –
  (1)                             (2)        (3)        (4)
“5ABService by way of renting of any property other than residential dwelling.Any unregistered personAny registered person.”

 

  • This notification shall come into force with effect from the 10th day of October, 2024.

 

  • Notification No. 20/2024 – Central Tax [G.S.R. 626(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024, Central Goods and Services Tax (Second Amendment) Rules, 2024 – Amendment in rules 36, 46, 66, 86, 88B, 88D, 89, 96, 96B, 121 & 142, and forms GST REG-31, GSTR-9, GST APL-01, GST-APL-05, GST INS-01 and GST DRC-01A; insertion of rules 47A & 164, and forms GST SPL-01, GST SPL-02, GST SPL-03, GST SPL-04, GST SPL-05, GST SPL-06, GST SPL-07 and GST SPL-08; Substitution of Form GST REG-20.
  1. In the said rules, after rule 163, the following rule shall be inserted with effect from the 1st day of November, 2024, namely: –

“164. Procedure and conditions for closure of proceedings under section 128A in respect of demands issued under section 73.-

  • Eligible individuals can apply for a waiver of interest or penalty related to a notice or statement under section 128A by submitting FORM GST SPL-01 electronically on the common portal, including relevant details and payment information from FORM GST DRC-03.
  • Eligible individuals can apply for a waiver of interest or penalty related to orders under section 128A by submitting FORM GST SPL-02 electronically on the common portal. The application must include order details and payment information. Payments should be made by crediting the electronic liability register against the debit entry created by the order. If payment was made through FORM GST DRC-03, the individual must first file FORM GST DRC-03A to credit that amount in the register before submitting FORM GST SPL-02.
  • Where the notice or statement or order mentioned in sub-section (1) of section 128A includes demand of tax, partially on account of erroneous refund and partially for other reasons, an application under sub- rule (1) or sub-rule (2) may be filed only after payment of the full amount of tax demanded in the said notice or statement or order, on or before the date notified under the said sub-section.
  • Where the notice or statement or order mentioned in sub-section (1) of section 128A includes demand of tax, partially for the period mentioned in the said sub-section and partially for the period other than that mentioned in the said sub-section, an application under sub-rule (1) or sub-rule (2) may be filed only after payment of the full amount of tax demanded in the said notice or statement or order, on or before the date notified under the said sub-section.
  • The amount payable under sub-rule (1) or sub-rule (2) shall be the amount that remains payable, after deducting the amount not payable in accordance with sub-section (5) or sub-section (6) of section 16, from the amount payable in terms of the notice or statement or order under section 73, as the case may be.
  • Any person who wishes to file an application under sub-rule (1) or sub-rule (2), may do so within a period of three months from the date notified under sub-section (1) of section 128A:

Provided that where an application in FORM GST SPL-02 is to be filed in cases referred to in the first proviso to sub-section (1) of section 128A, the time limit for filing the said application shall be six months from the date of communication of the order of the proper officer redetermining such tax under section 73.

  • Applications under sub-rule (1) or sub-rule (2) must include documents proving the withdrawal of any appeal or writ petition to demonstrate eligibility for a waiver of interest or penalty under section 128A. If the withdrawal order has not been issued at the time of application, the applicant should upload the withdrawal request along with the application. Additionally, the order for withdrawal must be uploaded on the common portal within one month of its issuance.
  • Where the proper officer is of the view that the application made in FORM GST SPL-01 or FORM GST SPL-02 is liable to be rejected as not being eligible for waiver of interest, or penalty, or both, as per section 128A, he shall issue a notice on the common portal to the applicant in FORM GST SPL-03 within three months from the date of receipt of the said application and shall also give the applicant an opportunity of being heard.
  • On receiving the notice under sub-rule (8), the applicant may file a reply to the said notice on the common portal in FORM GST SPL-04, within a period of one month from the date of receipt of the said notice.
  • If the proper officer is satisfied that the applicant is eligible for waiver of interest and penalty as per section 128A, he shall issue an order in FORM GST SPL-05 on the common portal accepting the said application and concluding the proceedings under section 128A.
  • In cases where the order in FORM GST SPL-05 is issued by the proper officer under sub-rule (10). –
  • In respect of an application filed in FORM GST SPL-01 pertaining to a notice or statement referred to in clause (a) of sub-section (1) of section 128A, the summary of order in FORM GST DRC-07 as per sub-rule (5) of rule 142 shall not be required to be issued by the proper officer, in respect of the said notice or statement;
  • In respect of an application filed in FORM GST SPL-02 pertaining to an order referred to in clause (b) or clause (c) of sub-section (1) of section 128A, the liability created in the part II of Electronic Liability Register, shall be modified accordingly.
  • If the proper officer is not satisfied with the reply of the applicant, the proper officer shall issue an order in FORM GST SPL-07 rejecting the said application.
  • (a) In cases where notice in FORM GST SPL-03 has not been issued, the proper officer shall issue the order under sub-rule (10) within a period of three months from the date of receipt of the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be.

(b) In cases where notice in FORM GST SPL-03 has been issued, the proper officer shall issue the order in sub-rule (10) or sub-rule (12) within a period of three months from the date of receipt of reply of the applicant in FORM GST SPL-04, or within a period of four months from the date of issuance of notice in FORM GST SPL-03 where no reply is received from the applicant.

  • If no order is issued by the proper officer within the time limit specified in sub-rule (13), then the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be, shall be deemed to be approved and the proceedings shall be deemed to be concluded.
  • (a) In cases where no appeal is filed against the order in FORM GST SPL-07 within the time period specified in sub-section (1) of section 107, the original appeal, if any, filed by the applicant against the order mentioned in clause (b) or clause (c) of sub-section (1) of section 128A, and withdrawn for filing the application in FORM GST SPL-02 in accordance with sub-section (3) of section 128A, shall be restored.

(b) In cases where an appeal is filed against the order in FORM GST SPL-07 for rejection of application for waiver of interest, or penalty, or both, if

  • the appellate authority has held that the proper officer has wrongly rejected the application for waiver of interest, or penalty, or both, in FORM GST SPL-07, the said appellate authority shall pass an order in FORM GST SPL-06 on the common portal accepting the said application and concluding the proceedings under section 128A; or
  • If the appellate authority upholds the rejection of an interest or penalty waiver in FORM GST SPL-07, any original appeal withdrawn to file an application in FORM GST SPL-02 (under section 128A(3)) will be reinstated. This is conditional on the applicant submitting an undertaking in FORM GST SPL-08 electronically within three months of the appellate order (FORM GST APL-04), affirming they have not and will not appeal the decision.
  • In cases where the taxpayer is required to pay an additional amount of tax liability as per the second proviso to sub-section (1) of section 128A, and such additional payment is not made within the time limit specified in the said proviso, the waiver of interest, or penalty, or both, under the said section as per the order issued in FORM GST SPL-05 or FORM GST SPL-06, if any, shall become void.
  • If a taxpayer must pay interest, penalty, or both for demands related to an erroneous refund or a period outside that specified in section 128A (1), as stated in FORM GST SPL-05 or SPL-06, they must pay this amount within three months of the order date. Failure to pay within this period will void any waiver granted under section 128A in FORM GST SPL-05 or SPL-06.

Explanation. – For the purposes of this rule, the proper officer for issuance of order under this rule, –

(a) In cases where the application for waiver of interest, or penalty, or both is made with respect to a notice or statement mentioned in clause (a) of sub-section (1) of section 128A, shall be the proper officer for issuance of order as per section 73; and

(b) In cases where the application for waiver of interest, or penalty, or both, is made with respect to an order mentioned in clause (b) or clause (c) of sub-section (1) of section 128A, shall be the proper officer referred to in section 79 of the Act.”

  • In the said rules, for FORM GST REG-20, the following form shall be substituted, namely: –
  • In the said rules, in FORM GST REG-31, after paragraph 6, the following shall be inserted, namely: –

OR

 

SUSPENSION DUE TO VIOLATION OF RULE 10A

  1. You have not provided valid bank account details within 30 days of your registration, as required by Rule 10A.
  2. This non-compliance indicates a violation of the Central Goods and Services Tax Act, 2017, which could lead to the cancellation of your registration if not satisfactorily explained.
  3. Due to the seriousness of this issue, your registration is suspended effective immediately under Rule 21A.
  4. You are required to submit valid bank account details on the common portal or respond to the jurisdictional tax officer within 30 days, addressing the discrepancies. Report any potential misuse of your GST credentials.
  5. The suspension will be lifted once you provide the valid bank account details within the specified time.
  6. Failure to comply may result in cancellation of your registration.

OR

  1. It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details of bank account within thirty days from the grant of registration. The information regarding bank account details furnished by you are not matching with the details available with bank.
  2. These discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017(12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.
  3. Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of rule 21A.
  4. Accordingly, you are requested to furnish the valid details of bank account on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on GST common portal, by any person, in any manner, may also be specifically brought to the notice of jurisdictional officer.
  5. The suspension of registration shall be lifted after you furnish the valid details of bank account on the common portal within stipulated time.
  6. You may please note that your registration may be cancelled in case you fail to furnish the valid details of bank account on the common portal within stipulated time or fail to furnish a reply within the stipulated time.

OR

SUSPENSION DUE TO VIOLATION OF RULE 21

  1. It has been noticed that as per the provisions of clause (h) or clause (i) of rule 21, requiring you to file return under sub-section (1) of section 39, have not furnished for a continuous period of six months or for a continuous period of two quarters.
  2. These discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017(12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.
  3. Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of sub-rule (2A) of rule 21A.
  4. You are requested to file a return under section 39(1) on the common portal or submit a response to the jurisdictional tax officer within 30 days of this notice, explaining the noted discrepancy or anomaly. Any suspected misuse of your GST portal credentials should also be reported to the jurisdictional officer.
  5. The suspension of registration shall be lifted after you file the returns under sub-section (1) of section 39 on the common portal.
  6. You may please note that your registration may be cancelled in case you fail to file returns under sub-section (1) of section 39 on the common portal within stipulated date or fail to furnish a reply within the stipulated time.”

 

  • In the said rules, in FORM GSTR-9, in the table, in Pt. III, in serial number 8, for serial number A and the entries relating thereto, the following serial number and entries shall be substituted, namely: –

 

“AITC as per GSTR-2B (table 3 thereof)<Auto><Auto><Auto><Auto>”

 

  • In the said rules, in FORM GST APL-01, with effect from the 1st day of November, 2024. –

(a)  in entry number 15, –

(i)   in clause (a), in the Table, in the first column relating to “Particulars”, in item (b) relating to “pre-deposit”, for the brackets, letters, words and figures “(b) Pre- deposit (10% of disputed tax /cess but not exceeding Rs. 25 crore each in respect of CGST, SGST or cess or not exceeding Rs.50 crore in respect of IGST and Rs. 25 crore in respect of cess)”, the brackets, letters, words, and figures “(b) Pre- deposit (10% of disputed tax /cess but not exceeding Rs. 20 crore each in respect of CGST, SGST, cess, and not exceeding Rs. 40 crore in respect of IGST)” shall be substituted;

 

(ii)  in clause (b), in the opening portion, for the brackets, words, figures and letters ” (pre-deposit 10% of disputed tax and cess but not exceeding Rs. 25 crore each in respect of CGST, SGST or cess or not exceeding Rs.50 crore in respect of IGST and Rs. 25 crore in respect of cess)”, the brackets, words, figures and letters “(pre- deposit 10% of disputed tax and cess but not exceeding Rs. 20 crore each in respect of CGST, SGST, cess, and not exceeding Rs. 40 crores in respect of IGST)” shall be substituted.

 

 

  • In the said rules, in FORM GST APL-05, with effect from the 1st day of November, 2024, –

(a)in entry number 14, –

(i) In clause (a), under “Particulars” in item (b) for “pre-deposit,” replace “(20% of disputed tax/cess, max Rs. 50 crores for CGST, SGST, or cess, Rs. 100 crores for IGST, Rs. 50 crore for cess)” with “(10% of disputed tax/cess, max Rs. 20 crores for CGST, SGST, cess, and Rs. 40 crores for IGST).”

(ii) In clause (b), for the opening portion, the following shall be substituted, namely: –

(b) Details of payment of admitted amount and pre-deposit of 10% of the disputed tax and cess but not exceeding Rs. 20 crore each in respect of CGST, SGST, cess and not exceeding Rs. 40 crores in respect of IGST.”.

 

 

  • In the said rules, after FORM SBY-06, the following forms shall be inserted with effect from the 1st day of November, 2024, namely: –

 

  • ‘FORM GST SPL – 01 [See rule 164(1)]- Application for waiver of interest or penalty or both under section 128A in respect of a notice or a statement mentioned in clause (a) of sub-section (1) of the said section
  • FORM GST SPL -02 [See rule 164(2)]- Application for waiver of interest or penalty or both under section 128A, in respect of an order mentioned in clause (b) or clause (c) of sub-section (1) of the said section
  • FORM GST SPL -03 [See rule 164(2)]- 1 Notice in response to an application filed under Section 128A
  • FORM GST SPL-04 [See rule 164(9)]– Reply to notice issued under rule 164(8)
  • FORM GST SPL -05 [See rule 164(10)]- Order for conclusion of proceedings as per section 128A
  • FORM GST SPL -06 [See Rule 164(15)(b)(i)]- Order for conclusion of proceedings as per section 128A
  • FORM GST SPL -07 [See rule 164(12)]- Order for Rejection of Application submitted under section 128A
  • FORM GST SPL -08 [See rule 164(15)(b)(ii)]- Undertaking submitted under rule 164(15)(b)(ii)

 

  • Notification No. 21/2024– Central Tax [S.O. 4372(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024, Waiver of Interest or Penalty or both relating to demands raised under Section 73, for certain Tax periods

In exercise of the powers conferred by sub-section (1) of section 128A of the Central Goods and Services Tax Act, 2017 (12 of 2017) (the said Act), the Central Government, on the recommendations of the Council, hereby notifies the respective date specified in Column (3) of the Table below, as the date up to which payment for the tax payable as per the notice, or statement, or the order referred to in clause (a) or clause (b) or clause (c) of the said section, as the case may be, can be made by the class of registered person specified in the corresponding entry in column (2) of the said Table, namely:-

 

Sl. No.Class of registered personDate up to which payment for the tax payable as per the notice or statement or the order referred to in clause (a) or clause (b) or clause (c) of section 128A of the said Act, as the case may be, can be made for waiver of interest, or penalty, or both, under the said
(1)(2)(3)
1Registered persons to whom a notice or statement or order, referred to in clause (a) or clause (b) or clause (c) of section 128A of the said Act, has been issued.31-3-2025
2Registered persons to whom a notice has been issued under sub-section (1) of section 74, in respect of the period referred to in sub-section (1) of section 128A of the said Act, and an order is passed or required to be passed by the proper officer in pursuance of the direction of the Appellate Authority, or Appellate Tribunal, or a court, in accordance with the provisions of sub-section (2) of section 75, for determination of the tax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73 of the said Act.Date ending on completion of six months from the date of issuance of the order by the proper officer redetermining tax under section 73 of the said Act.

    

  1. This notification shall come into effect from the 1st day of November, 2024

 

  • Notification No. 22/2024– Central Tax [S.O. 4373(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024, Section 148, read with Section 16 of the Central Goods and Services Tax Act, 2017- special procedure for certain processes – special procedure for certain processes- special procedure for rectifying an order confirming incorrect input tax credit availment under Sub-Section (4) of Section 16, where credit is now available under Sub-Sections (5) OR (6) and no appeal has been filled
  1. Under section 148 of the Central Goods and Services Tax Act, 2017, the Central Government, based on Council recommendations, notifies a special procedure for order rectification. This applies to registered persons with confirmed demands under sections 73, 74, 107, or 108 for wrongful input tax credit (ITC) availment due to contraventions under section 16(4). This procedure applies if the ITC is now permissible under sections 16(5) or 16(6) and no appeal has been filed against the order.
  2. The said person shall file, electronically on the common portal, within a period of six months from the date of issuance of this notification, an application for rectification of an order issued under section 73 or section 74 or section 107 or section 108 of the said Act, as the case may be, confirming demand for wrong availment of input tax credit, on account of contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the said Act, and where appeal against the said order has not been filed.
  3. The said person shall, along with the said application, upload the information in the proforma mentioned the notification.
  4. The proper officer for carrying out rectification of the said order shall be the authority who had issued such order, and the said authority shall take a decision on the said application and issue the rectified order, as far as possible, within a period of three months from the date of the said application.
  5. Where any rectification is required to be made in the order referred to in paragraph 1 and, the said authority has issued a rectified order thereof, then the said authority shall upload a summary of the rectified order electronically-
(i) in FORM GST DRC-08, in cases where rectification of an order issued under section 73 or section 74 of the said Act is made; and
(ii) in FORM GST APL-04, in cases where rectification of an order issued under section 107 or section 108 of the said Act is made.

 

  1. The rectification is required to be made only in respect of demand of such input tax credit which has been alleged to be wrongly availed in contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of the said section 16.
  2. Where such rectification adversely affects the said person, the principles of natural justice shall be followed by the authority carrying out such rectification.

 

  • Notification No. 23/2024– Central Tax [S.O. 4374(E)/F. NO. CBIC-20006/20/2023-GST], Dated 8-10-2024, Section 47, read with Sections 51 and 128 of the Central Goods and Services Tax Act, 2017- Return- Levy of late fee – Waiver of late fee for failure to furnish return in form GSTR-7 for month of June, 2021 onwards, by due date, which is in excess of an amount of twenty- five rupees for every day during which such failure continues

Under section 128 of the Central Goods and Services Tax Act, 2017, the Central Government, with Council recommendations, supersedes the previous notification (No. 22/2021-Central Tax, dated June 1, 2021) and waives late fees under section 47 for registered persons required to deduct tax at source under section 51, for delays in filing FORM GSTR-7 from June 2021 onwards, except for an excess of twenty-five rupees per day of delay.

Provided that the total amount of late fee payable under section 47 of the said Act by such registered person for failure to furnish the return in FORM GSTR-7 for the month of June, 2021 onwards, by the due date, shall stand waived which is in excess of an amount of one thousand rupees:

Provided further that the total amount of late fee payable under section 47 of the said Act by the registered person, who fails to furnish the return in FORM GSTR-7 for a month by the due date, where the total amount of central tax deducted at source in the said month is nil, shall stand waived.

  1. This notification shall come into force on the 1st day of November, 2024.

 

  • Notification No. 24/2024- Central Tax [G.S.R 628(E)/F.NO. CBIC-190354/149/2024-TO(TRU-II)], Dated 9-10-2024, Section 23, read with section 9 of the central Goods and Services Tax Act, 2017 – registration – persons not liable for – notified persons-

In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 5/2017- Central Tax, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ivide number G.S.R. 607(E), dated the 19th June, 2017, namely:—

In the said notification, after the opening paragraph, the following proviso shall be inserted, namely: –

Provided that nothing contained in this notification shall apply to any person engaged in the supply of metal scrap, falling under Chapters 72 to 81 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975).”.

  1. This notification shall come into force with effect from the 10th day of October, 2024
  • Circular No. 234/28/2024 – GST [F. NO. CBIC-190354/149/2024-TO(TRU-II)-CBEC], Dated 11-10-2024, Section 9 of the Central Goods and Services Act, 2017- Levy and collection- Clarifications Regarding applicability of GST on certain services
  • Based on the recommendations of the GST Council in its 54th meeting held on 9th September 2024, at New Delhi, in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, clarifications on the following issues are being issued through this Circular as under:
  • Applicability of GST on the service of affiliation provided by universities to colleges:
  • Representations have been received seeking clarification on the applicability of GST on the service of affiliation provided by universities to colleges.
  • The activity of affiliation is to monitor and ensure whether the institution possesses the required infrastructure in terms of space, technical prowess, financial liquidity, faculty strength, etc. and is thereby eligible for the privileges to conduct the course/program of study for the degree/title extended by the University to the students enrolled in such institutions. The affiliation services provided by the universities to colleges are not by way of services related to the admission of students to such colleges or the conduct of examinations by such colleges.
  • Thus, as recommended by the 54th GST Council, it is hereby clarified that the affiliation services provided by universities to their constituent colleges are not covered within the ambit of exemptions provided to educational institutions in the notification No. 12/2017-CT(R), dated 28-6-2017 and GST at the rate of 18% is applicable on the affiliation services provided by the universities.
  • Applicability of GST on the service of affiliation provided by Central and State educational boards or Councils, or other similar bodies, to schools:
  • Representations have been received to clarify the applicability of GST on the service of affiliation provided by the Central and State educational boards or councils, or other similar bodies, to schools and to regularize the payment of tax on such services for the past period.
  • The activity of affiliation carried out by educational boards or councils, or other similar bodies, is to monitor and ensure whether the schools possess the required infrastructure, finances, faculty strength etc. and are thereby eligible for the privileges to operate under the aegis of said boards or councils. The services of affiliation provided to schools by educational boards or councils, or other similar bodies, are not by way of services related to the admission of students to such schools or the conduct of examinations by such schools.
  • The GST Council, in its 54th meeting on 9th September 2024, clarified that affiliation services provided by educational boards to schools are taxable. However, it recommended exempting affiliation services provided to government schools (established or controlled by the government or local authority). This exemption is effective from 10th October 2024, as per notification No. 08/2024-Central Tax (Rate), dated 8th October 2024.
  • In its 54th meeting, the GST Council further recommended regularizing the GST liability on such services provided to all schools for the period from 1-7-2017 to 17-6-2021, e., the date of issuance of Circular No. 151/07/2021-GSTwherein accreditation services of boards are clarified to be taxable at the rate of 18%.
  • Therefore, as recommended by the GST Council, it is clarified that services of affiliation, provided to schools by Central or State educational boards or councils, or other similar bodies, by whatever name called, are taxable. Further, as recommended by the Council, the payment of GST on the services of affiliation provided by Central and State educational boards or Councils, or other similar bodies, to all schools is regularized on ‘as is where is’ basis for the period from 1-7-2017 to 17-6-2021.
  • Applicability of GST on the Directorate General of Civil Aviation (DGCA) approved flying training courses conducted by Flying Training Organizations approved by the DGCA:
  • Representations have been received regarding the applicability of GST on the DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) which are approved by the Directorate General of Civil Aviation (DGCA). The same has been examined.
  • Under GST Law, vide  No. 66 of the notification No. 12/2017- Central Tax (Rate), dated 28-6-2017, services provided by educational institutions to its students, faculty and staff are exempt from levy of GST. In the above notification, “educational institution” has been defined to mean an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.
  • In exercise of the power vested by Section 5 of the Aircraft Act, 1934, the Central Government has made the Aircraft Rules, 1937, which, inter alia, provide for ‘approved training’, e.training the curriculum of which has been approved by the DGCA, and ‘approved training organization’, i.e. a flying training organization which shall obtain the approval of DGCA before the students are enrolled to acquire flying experience. The said rules further state that flying experience required for the issue of private pilot and commercial pilot licenses shall be acquired at the Flying Training Organization (FTO) approved/recognized by the DGCA. The Civil Aviation Requirements (CAR) issued under the said rules also provide for a completion certificate to be issued by an approved FTO to each student who completes its approved course of training.
  • It is evident from the above that the DGCA not only approves FTOs but also flying training courses and mandates the requirement of course completion certificates to be issued to successful candidates in terms of the Aircraft Act, 1934 and the rules prescribed thereunder. Therefore, the approved flying training courses conducted by FTOs approved by DGCA, wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 and are hence, exempt.
  • Regularizing payment of GST on transport of passengers by helicopter:
  • 54th GST Council has recommended that the GST rate on transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis may be notified at 5%. Accordingly, notification No. 07/2024- Central Tax (Rate), dated 8-10-2024 effective from 10-10-2024 has been issued.
  • The Council further recommended to regularize payment of GST on transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis on ‘as is where is’ basis.
  • In addition to above, the Council also recommended to clarify that charter of helicopter would continue to attract GST at the rate of 18%.
  • Thus, as recommended by the 54th GST Council, payment of GST on transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis is hereby regularized on ‘as is where is’ basis for the period from 1-7-2017 to 9-10-2024.
  • Further, as recommended by the 54th GST Council, it is hereby clarified that transport of passengers by helicopter on other than seat share basis e., for charter operations will continue to attract GST at the rate of 18%.
  • Whether incidental/ancillary services such as loading/unloading, packing, unpacking, transshipment, temporary warehousing etc., provided in relation to transportation of goods by road is to be treated as part of Goods Transport Agency service, being composite supply, or these services are to be treated as separate independent supplies:
  • Representations have been received to clarify whether incidental/ ancillary services such as loading/ unloading, packing, unpacking, transshipment, temporary warehousing etc., provided in relation to transportation of goods by road is to be treated as part of Goods Transport Agency (GTA) service, being composite supply, or these services are to be treated as separate independent supplies.
  • It has been brought to notice that enforcement agencies are raising demands for such services holding them leviable to GST at the rate of 18% by interpreting last para of Question No. 6 of the FAQ issued by CBIC which states that “If such incidental services are provided as separate services and charged separately, whether in the same invoice or separate invoices, they shall be treated as separate supplies”, to mean that if a GTA shows packing charges, loading, unloading charges etc., separately in the invoice, the GTA becomes liable to pay GST at the rate of 18% on these services by treating them as cargo handling services.
  • Following the 54th GST Council’s recommendations, it is clarified that ancillary services provided by Goods Transport Agencies (GTAs) during the transportation of goods by road—such as loading, unloading, packing, unpacking, transshipment, and temporary warehousing—are considered a composite supply of transport. The invoicing method used by GTAs generally does not change this classification. However, if these ancillary services are invoiced separately and not provided during transportation, they will not be classified as a composite supply of transport.
  • Regularizing payment of GST on import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration:
  • 54th GST Council has recommended to exempt import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration. Accordingly, notification No. 08/2024-Integrated Tax (Rate), dated 8-10-2024 effective from 10-10-2024 has been issued.
  • The Council further recommended to regularize payment of GST on import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration for the past period on ‘as is where is’ basis.
  • Therefore, on recommendations of the 54th GST Council, the payment of GST on import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration is hereby regularized for the period from 1-7-2017 to 9-10-2024 on ‘as is where is’ basis.
  • Applicability of GST on Preferential Location Charges (PLC) collected along with consideration for sale/transfer of residential/commercial properties:
  • Allowing choice of location of apartment is integral part of supply of construction services and therefore, location charge is nothing but part of consideration charged for supply of construction services before issuance of completion certificate. Being charged along with supply of construction services for the apartment, the same attract GST at same rate as of construction services before issuance of completion certificate.
  • Therefore, based on the recommendations of the 54th GST Council, it is hereby clarified that location charges or Preferential Location Charges (PLC) paid along with the consideration for the construction services of residential/commercial/industrial complex forms part of composite supply where supply of construction services is the main service and PLC is naturally bundled with it and are eligible for same tax treatment as the main supply of construction service.
  • Regularizing payment of GST on certain support services provided by an electricity transmission or distribution utility:
  • GST Council in its 54th meeting held on 9th September, 2024 has recommended to exempt supply of services by way of providing metering equipment on rent, testing for meters/transformers/capacitors etc., releasing electricity connection, shifting of meters/service lines, issuing duplicate bills etc., which are incidental or ancillary to the supply of transmission and distribution of electricity provided by transmission and distribution utilities to their consumers.
  • The same have been exempted vide notification No. 08/2024- Central Tax (Rate), dated 8-10-2024 effective from 10-10-2024.
  • The GST Council in its 54th meeting has also recommended to regularize the payment of GST for supply of such services for the period e., from 1-7-2017 to 9-10-2024 on ‘as is where is’ basis.
  • Therefore, as recommended by the 54th GST Council, the payment of GST on services provided by an electricity transmission or distribution utility which are incidental or ancillary to the supply of transmission and distribution of electricity by such utility, such as those listed in para 9.1 above is hereby regularized on ‘as is where is’ basis from 1-7-2017 to 9-10-2024.

 

  • Regularizing payment of GST on services of film distributors or sub-distributors who act on a principal basis to acquire and distribute films:
  • Representations have been received to clarify regarding the GST liability for the period from 1-7-2017 to 1-10-2021 on transaction between distributors and exhibitors wherein the distributors grant the theatrical rights to the exhibition centers. Field formations have viewed that such transaction are classifiable under SAC 9996 and attracts GST at the rate of 18%.
  • Before 1st October 2021, GST was charged at 18% on “Motion Picture, videotape and television programmed distribution services” (Heading 9996) and at 12% on “temporary or permanent transfer or permitting the use of intellectual property rights” (Heading 9973). Both entries included licensing rights to broadcast films. The issue was discussed in the 45th GST Council meeting on 17th September 2021, leading to a recommendation for a uniform GST rate of 18% on both entries effective from 1st October 2021.
  • The GST Council in its 54th meeting held on 9th September 2024 has recommended to regularize the payment of GST on transaction between distributors and exhibitors wherein the distributors grant the theatrical rights to the exhibition centers on ‘as is where is’ basis from 1-7-2017 to 30-9-2021.
  • Therefore, as recommended by the GST Council, the payment of GST on transaction between distributors and exhibitors wherein the distributors grant the theatrical rights to the exhibition centers is regularized for the period from 1-7-2017 to 30-9-2021 on ‘as is where is’ basis.
  • Difficulties, if any, in the implementation of this circular may be brought to the notice of the Board.

 

  • Circular No. 235/29/2024 – GST [F. NO. CBIC-190354/149/2024-TO(TRU-II)-CBEC], Dated 11-10-2024, Section 9 of the Central Goods and Services Tax Act, 2017- Levy and Collection- Clarification Regarding GST rates & classifications (Goods) bases on recommendations of the GST council in its 54TH GST Council in its 54th meeting held on 9-09-2024, at New Delhi

Based on the recommendations of the GST Council in its 54th meeting held on 9th September, 2024, at New Delhi, in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, the Board hereby clarifies the following issues through this circular for the purpose of uniformity in their implementation:

  1. Clarification regarding GST rate on Extruded/Expanded Savoury food products:

Clarifications regarding the classification of savoury or salted extruded snack pellets under HS 2106 have been made. Effective from 10th October 2024, extruded or expanded savoury or salted products (excluding un-fried or un-cooked snack pellets) will be classified under HS 1905 90 30, attracting a GST rate of 12%. This rate aligns with namkeens and similar ready-to-eat preparations under HS 2106 90. Un-fried or un-cooked snack pellets will continue to have a GST rate of 5%. The 12% rate on extruded products will apply prospectively, while an 18% GST will be payable for the past period.

  1. Clarification regarding GST rate on Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways:

Representations have been received regarding the classification of Roof Mounted Air Conditioners (RMPUs) for Railways. It has been clarified that these units should be classified under HS 8415, which has a GST rate of 28%. In contrast, goods under HS 8607, such as parts for railway locomotives, attract an 18% GST rate.

According to Section Note 2 of Section XVII of the Customs Tariff Act, machines under HS 8415 are excluded from classification as ‘parts’ under HS 8607. Therefore, RMPUs for Railways will definitively fall under HS 8415, confirming the applicable 28% GST rate.

  • Clarification regarding GST rate on Car and Motor cycle seats:
    1. Clarifications were sought on the GST classification and rates for seats designed for four-wheeled cars and two-wheelers.
    2. Seats for two-wheelers are classified under HS 8714, which includes saddles (seats) and attracts a GST rate of 28% as per Schedule IV of notification No. 1/2017-Central Tax (Rate).
    3. Seats for four-wheeled vehicles fall under HS 9401, which covers vehicle seats and parts. This category does not exclude vehicle seats, so car seats are also classified under HS 9401.
    4. Car seats (HS 9401) attract a GST of 18%, while two-wheeler seats (HS 8714) attract 28%.
    5. To align the GST rates for both categories, car seats classified under HS 9401 will attract a GST of 28% starting from October 10, 2024, as per notification No. 1/2017-Central Tax (Rate).
    6. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board.
  • Circular No. 236/30/2024 – GST [F. NO. CBIC-190354/149/2024-TO(TRU-II)-CBEC], Dated 11-10-2024, clarification regarding the scope of “AS IS/AS IS, where is basis” mentioned in GST circulars issued on basis of recommendation of GST council in its meetings
  • Instances were brought to the notice of the Board pertaining to the prevailing doubts among the field formations/trade as regards the scope of regularization on “as is” or “as is, where is basis” vide various GST Circulars issued for clarification regarding applicable GST rates and appropriate classification of specified goods or service or both on the basis of recommendation of the GST Council in its various meetings.
  • The GST Council in its 54th Meeting held on 9th September 2024 has recommended issuance of clarification to clarify the intent behind the regularization done in the past meetings. Therefore, this Circular is being issued in exercise of power under Section 168 of CGST Act, 2017 to clarify scope of “as is” or ” as is, where is basis”.
  • Circulars have been issued based on GST Council recommendations to regularize GST non-payment or short-payments for past periods on an “As is” basis in certain cases. This applies when genuine doubts arise from competing entries with different rates or diverse interpretations leading to varying GST payments by suppliers. It is clarified that taxpayers who paid a higher GST rate are not entitled to refunds.
  • The phrase “as is where is” refers to transferring property in its current condition, accepting all faults and defects. In the context of GST, “regularized on as is where is basis” means that payments made at a lower rate or claims for exemptions by taxpayers will be accepted, with no refunds for those who paid a higher rate. The Council’s intention is to treat payments at a lower or nil rate as full discharge of tax liability, as indicated in the returns filed by the taxable person, which declare the applicable tax rate or relevant exemptions.
  • Thus, in cases where the matters have been regularized on “as is” or ” as is, where is basis”, in case of two competing rates and the GST is paid at lower of the two rates, or at nil rate where one of the competing rates was nil under notification entry, by some suppliers while other suppliers have paid at higher rate, payment at lower rate shall be treated as tax fully paid for the period that is regularized.
  • Accordingly, suitable instructions shall be passed on to the field formations under your charge.
  • Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board.

  • Companies (Indian Accounting Standards) Third Amendment Rules, 2024 (Notification on 2024-09-28)

 

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Third Amendment Rules, 2024 wherein:

 

  1. Rule 5 of Companies (Indian Accounting Standards) Rules, 2015, the following proviso shall be inserted:

Provided that an insurer or insurance company may provide its financial statement as per Ind AS 104 for the purpose of Consolidated Financial Statements by its parent or investor or venturer till the Insurance Regulatory and Development Authority notifies the Ind AS 117 and for this purpose, Ind AS 104 shall, as specified in the Schedule to these rules, continue to apply, etc.

 

  1. They shall come into force on the date of their publication in the Official Gazette.

 

  • Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Amendment Rules, 2024 (Notification Date: 2024-10-03, Notification No: G.S.R. 607(E)

 

The Ministry of Corporate Affairs has notified Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Amendment Rules, 2024 wherein:

 

  1. In the Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Rules, 2018, in rule 5, in sub-rule (2), for the words “one Member”, the words “the chief executive officer” shall be substituted.

 

  1. They shall come into force on the date of their publication in the Official Gazette.

 

  • Companies (Adjudication of Penalties) Second Amendment Rules, 2024

 

The Ministry of Corporate Affairs has notified Companies (Adjudication of Penalties) Second Amendment Rules, 2024 wherein:

  1. In the Companies (Adjudication of Penalties) Rules, 2014, in sub-rule (1) of rule 3A, the following proviso shall be inserted, namely:-

“Provided that the proceedings pending before the Adjudicating Officer or Regional Director on the date of such commencement shall continue as per provisions of these rules existing prior to such commencement.”

  1. They shall come into force on the date of their publication in the Official Gazette.

 

 

                                                    RBI
  • Directions – Compounding of Contraventions under FEMA, 1999 (Notification Date: 2024-10-01 vide Notification No: RBI/FED/2024-25/78 A.P. (DIR Series) Circular.No.17/2024-25

 

The Reserve Bank of India has reiterated that in terms of Section 11(3) of FEMA, 1999, the Reserve Bank may impose on the authorized person a penalty for contravening any direction given by the Reserve Bank under this Act or failing to file any return as directed by the Reserve Bank, Additionally, provided a list of earlier circulars that are superseded by this notice, and advised Authorised Dealer to take necessary steps to ensure that checks and balances are incorporated in systems relating to dealing with and reporting of foreign exchange transactions so that contraventions of provisions of FEMA, 1999, attributable to the Authorised Dealers do not occur.

Disclaimer: Information in this note is intended to provide only a general update on the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for the period 31.10.2024.

 

 

Executive Summary

Income Tax

  • National Savings Scheme (Amendment) Rules, 2024 – Amendment in Rule 6.
  • Section 35(1)(ii) of the income-tax act, 1961, read with rules 5C and 5E of the income-tax rules, 1962 – scientific research expenditure – approved scientific research association/institution
  • Section 88 of the Finance Act, 2024 – Direct Tax Vivad se vishwasScheme, 2024 – Notified date of enforcement of said scheme.

Goods And Service Tax (GST)

  • Press release recommendations during 54th meeting of GST Council dated 09-09-2024.
  • Clarification in respect of Advertising Services provided to foreign clients Circular No. 230/24/2024-GST [F.NO. CBIC-20001/6/2024-GST], dated 10-09-2024.
  • Clarification on availability of Input tax credit in respect of DEMO VECHICLES Circular No. 231/25/2024-GST [F. NO. CBIC-20001/6/2024-GST], dated 10-09-2024
  • Clarification on Place of Supply of Data Hosting Services provided by service providers located in India to Cloud Computing Service Providers located outside India Circular No. 232/26/2024-GSTL [F.NO. CBIC-20001/6/2024-GST], dated 10-09-2024.
  • Clarification regarding Regularization of refund of IGST availed in Contravention of Rule 96(10) OF CGST Rules, 2017, in cases where the exporters had imported certain inputs without payment of Integrated Taxes and compensation Cess Circular No. 233/27/2024-GST [F.NO. CBIC-20001/6/2024-GST], dated 10-09-2024.

Companies Act 2013/ Other Laws

  • Notifying the National Bank for Financing Infrastructure and Development as a Public Financial Institution
  • Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2024
  • Companies (Indian Accounting Standards) Second Amendment Rules, 2024
  • Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024
  • Launching Company Adjudication (ADJ) Form
  • Companies (Prospectus and Allotment of Securities) Amendment Rules, 2024
  • Clarification on the holding of Annual General Meeting (AGM) and EGM through Video Conference (VC) or Other Audio Visual Means (OAVM) and passing of Ordinary and Special resolutions by the companies under the Companies Act, 2013 read with Rules made thereunder -Extension of timeline
  • Company e-Filing Form IEPF-1
  • Liberalized Remittance Scheme (LRS) for Resident Individuals Discontinuation of Reporting of Monthly Return
  • Foreign Exchange (Compounding Proceedings) Rules, 2024
  • SEBI (Listing Obligations and Disclosure Requirements) Regulations
  • SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2024

 

Income Tax

    • National savings scheme (amendment) rules, 2024 – amendment in rule 6

    In the National Savings Rules, 1992, in rule 6, in sub-rule (1), for clause (v), the following clauses shall be substituted, namely: –

    “(v) For the period commencing from the 1st day of March, 2003 but before 1st day of October, 2024, the interest at the rate of seven-and-a-half per cent per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited to the account at the end of each year.

    (vi) The balances at the credit of the subscribers of the National Savings Scheme under these rules, on or after the 1st day of October 2024, shall bear no interest.

    • Section 35(1)(ii) of the Income-Tax Act, 1961, read with rules 5C and 5E of the Income-Tax Rules, 1962 – Scientific Research Expenditure – Approved scientific research association/institution
    • The Central Government approves ‘Advanced Manufacturing Technology Development Centre (PAN: AAEAA9272B), Chennai’ as ‘Other Institution’ under the category of ‘University, College or Other Institution’ for ‘Scientific Research’ for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.
    • This Notification shall apply with effect from the date of publication in the Official Gazette and accordingly it shall be applicable for Assessment Years 2025-26 to 2029-30.

     

    AND

    • The Central Government hereby approves Auroville Foundation (PAN: AAATA0037B) as ‘Other Institution’ for research in social science or statistical research for the purposes of clause (iii) of sub-section (1) section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.

    This Notification shall apply with effect from the date of publication in the Official Gazette (i.e. from the Previous Year 2024-25) and accordingly it shall be applicable for Assessment Years 2025-26 to 2029-30.

  • Press release recommendations during 54th meeting of GST Council dated 09-09-2024.
  • The 54th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi on 09-09-2024.
  • The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana; besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
  • GST Council recommends Group of Ministers (GoM) on following Services:
  1. Life and Health insurance related to GST
  2. GoM on Rate Rationalisation and asked to submit report by end of October 2024
  3. GST Council also recommends formation of a GoM to study the future of compensation cess
  4. GST Council recommends to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution notified u/s 35 of Income Tax Act using government or private grants.
  • The GST Council inter-alia made the following recommendations:
  1. Relating to changes in GST tax rates,
  2. Provide relief to individuals and,
  3. Measures for facilitation of trade and measures for streamlining compliances in GST.
  4. Changes/Clarifications in GST Tax Rates: – Goods
  5. Namkeens and Extruded/Expanded Savoury food products:
  • The GST rate of extruded or expanded products, Savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 to be reduced from 18% to 12% at par with namkeens, bhujia, mixture, chabena(prepackaged and labelled) and similar edible preparations in ready for consumption form which are classifiable under HS 2106 90.The GST rate of 5% will continue on un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion.
  • To also clarify that the reduced GST rate of 12% on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 is applicable
  1. Cancer Drugs:

The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab to be reduced from 12% to 5%.

  1. Metal Scrap:
  • Reverse Charge Mechanism (RCM) to be introduced on supply of metal scrap by an unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold.
  • TDS of 2% will be applicable on supply of metal scrap by registered person in B2B supply.
  1. Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways:

To clarify that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28%.

  1. Car and Motor cycle seats:
  • To clarify that car seats are classifiable under 9401 and attract a GST rate of 18%.
  • GST rate on car seats classifiable under 9401 to be increased from 18% to 28%. This uniform rate of 28% will be applicable prospectively for car seats of motor cars in order to bring parity with seats of motorcycles which already attract a GST rate of 28%.

 

  1. Changes/ Clarifications in GST Tax Rates: – Services
  2. Life and Health insurance:
  • GST Council recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on the life insurance and health insurance.
  • The GoM members are Bihar, UP, West Bengal, Karnataka, Kerala, Rajasthan, Andhra Pradesh, Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat.
  • The GoM is to submit the report by end of October 2024.
  1. Transport of passengers by helicopters:
  • To notify GST @ 5% on the transport of passengers by helicopters on seat share basis and to regularise the GST for past period on ‘as is where is’ basis.
  • To also clarify that the charter of helicopter will continue to attract 18% GST.
  1. Flying training courses:

To clarify by way of a circular that the approved flying training courses conducted by DGCA approved Flying Training Organizations (FTOs) are exempt from the levy of GST.

  1. Supply of research and development services:
  • The GST Council recommended to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961 using Government or private grants.
  • Past demands to be regularised on ‘as is where is’ basis.
  1. Preferential Location Charges (PLC):

To clarify that location charges or Preferential Location Charges (PLC) paid along with the consideration for the construction services of residential/commercial/industrial complex before issuance of completion certificate forms part of composite supply where supply of construction services is the main service and PLC is naturally bundled with it and are eligible for same tax treatment as the main supply that is, construction service.

  1. Affiliation services:
  • To clarify that affiliation services provided by educational boards like CBSE are taxable. However, to exempt affiliation services provided by State/Central educational boards, educational councils and other similarly placed bodies to Government Schools prospectively.
  • The issue for the past period between 01.07.2017 to 17.06.2021 to be regularized on ‘as is where is’ basis.
  • To clarify by way of circular that the affiliation services provided by universities to their constituent colleges are not covered within the ambit of exemptions provided to educational institutions in the notification No. 12/2017-CT(R) dated 28.06.2017 and GST at the rate of 18% is applicable on the affiliation services provided by the universities.
  1. Import of service by Branch Office:

To exempt import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration. The council also recommended to regularise the past period on ‘as is where is ‘ basis.

  1. Renting of commercial property:

To bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM) to prevent revenue leakage.

  1. Ancillary/intermediate services are provided by GTA:
  • To clarify that when ancillary/intermediate services are provided by GTA in the course of transportation of goods by road and GTA also issues consignment note, the service will constitute a composite supply and all such ancillary/intermediate services like loading/unloading, packing/unpacking, transshipment, temporary warehousing etc. will be treated as part of the composite supply.
  • If such services are not provided in the course of transportation of goods and invoiced separately, then these services will not be treated as composite supply of transport of goods.

      Other changes:

  • To regularize the GST liability for the past period prior to 01.10.2021 on ‘as is where is’ basis, where the film distributor or sub-distributor acts on a principal basis to acquire and distribute films.
  • To exempt supply of services such as application fees for providing electricity connection, rental charges against electricity meter, testing fees for meters/ transformers/capacitors, labour charges from customers for shifting of meters/service lines, charges for duplicate bills etc. which are incidental, ancillary or integral to the supply of transmission and distribution of electricity by transmission and distribution utilities to their consumers, when provided as a composite supply.
  • GST for the past period to be regularized on ‘as is where is’ basis.

 

  1. Measures for facilitation of trade:
  2. Procedure and conditions for waiver of interest or penalty or both, in respect of tax demands under section 73 of CGST Act, 2017 for FYs 2017-18, 2018-19 and 2019-20 as per section 128A of CGST Act, 2017:
    • The GST Council recommended insertion of rule 164 in CGST Rules, 2017, along with certain Forms, providing for the procedure and conditions for availment of benefit of waiver of interest or penalty or both, relating to tax demands under section 73 of CGST Act, pertaining to FYs 2017-18, 2018-19 and 2019-20, as per section 128A of CGST Act.
    • The Council also recommended to notify under sub-section (1) of section 128A of CGST Act, 31-3-2025 as the date on or before which the payment of tax may be made by the registered persons, to avail the said benefit as per section 128A of the CGST Act.
    • The Council also recommended the issuance of a circular to clarify various issues related to availment of waiver of interest or penalty or both as per section 128A of CGST Act.
    • The Council also recommended that section 146 of Finance (No. 2) Act, 2024, which provides for insertion of section 128A in CGST Act, 2017, may be notified with effect from 1-11-2024.
  3. Providing a mechanism for implementation of newly inserted sub-section (5) and sub section (6) in section 16 of CGST Act, 2017:
  • The GST Council recommended that sections 118 and 150 of the Finance (No. 2) Act, 2024, which provides for insertion of sub-section (5) and sub-section (6) in section 16 of CGST Act, 2017 retrospectively with effect from 1-7-2017, may be notified at the earliest.
  • The Council also recommended that a special procedure for rectification of orders may be notified under section 148 of the CGST Act, to be followed by the class of taxable persons, against whom any order under section 73 or section 74 or section 107 or section 108 of the CGST Act has been issued confirming demand for wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such input tax credit is now available as per the provisions of sub-section (5) or subsection (6) of section 16 of the CGST Act, and where appeal against the said order has not been filed.
  • The Council also recommended issuance of a circular to clarify the procedure and various issues related to implementation of the said provisions of sub-section (5) and subsection (6) of section 16 of CGST Act, 2017.
  1. Amendments in rule 89 and rule 96 of CGST Rules, 2017 and to provide clarification in respect of IGST refunds on exports where benefit of concessional/ exemption notifications specified under rule 96(10) of CGST Rules, 2017 has been availed on the inputs:
  • The GST Council recommended to clarify that where the inputs were initially imported without payment of integrated tax and compensation cess by availing benefits under Notification No. 78/2017-Customs, dated 13-10-2017 or Notification No. 79/2017-Customs dated 13-1-2017, but IGST and compensation cess on such imported inputs are subsequently paid, along with applicable interest.
  • the Bill of Entry in respect of the import of the said inputs is got reassessed through the jurisdictional Customs authorities to this effect, then the IGST paid on exports, refunded to the said exporter shall not be considered to be in contravention of provisions of sub-rule (10) of rule 96 of CGST Rules.
  • Considering the difficulty being faced by the exporters due to restriction in respect of refund on exports, imposed viderule 96(10), rule 89(4A) & rule 89(4B) of CGST Rules, 2017, in cases where benefit of the specified concessional/ exemption notifications is availed on the inputs, the Council recommended to prospectively omit rule 96(10), rule 89(4A) & rule 89(4B) from CGST Rules, 2017. This will simplify and expedite the procedure for refunds in respect of such exports.
  1. Issuance of clarifications through the circulars to remove ambiguity and legal disputes in certain issues:

The GST Council recommended issuance of circulars to provide clarity and to remove doubts and ambiguities arising in the following issues due to varied interpretations by the field formations:

  1. Clarification on the Place of Supply of advertising services provided by Indian advertising companies to foreign entities.
  2. Clarification regarding availability of Input Tax Credit on demo vehicles by the dealers of the vehicle manufacturers.
  • Clarification on Place of Supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
  1. The Council also recommended amendments in some other provisions of CGST Rules, 2017.
  2. Other measures:
  3. B2C E-invoicing:
  • The GST Council recommended roll out of a pilot for B2C e-Invoicing, following the successful implementation of e-invoicing in the B2B sector.
  • The Council recognized potential benefits of e-invoicing in retail, such as improved business efficiency, environmentally friendly, cost efficiency to the business, etc.
  • It would also provide an opportunity to the retail customers to verify the reporting of the invoice in the GST return. The pilot will be rolled out on voluntary basis in selected Sectors and States.
  1. Invoice Management System and new ledgers:
  • The Council also took note of the agenda on the enhancements being made to the existing GST return architecture. These enhancements include the introduction of a Reverse Charge Mechanism (RCM) ledger, an Input Tax Credit Reclaim ledger and an Invoice Management System (IMS).
  • Taxpayers would be given the opportunity to declare their opening balance for these ledgers by 31st October 2024.
  • IMS will allow the taxpayers to accept, reject, or to keep the invoices pending for the purpose of availment of Input Tax Credit. This will be an optional facility for taxpayers to reduce errors in claiming input tax credit and improve reconciliation. This is expected to reduce notices issued on account of ITC mismatch in the returns.
  • The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law.
  • Clarification in respect of Advertising Services provided to Foreign Clients

Circular No. 230/24/2024-GST [F.NO. CBIC-20001/6/2024-GST], dated 10-09-2024

  • References have been received from the trade and industry requesting for clarification regarding advertising services being provided by Indian advertising companies/agencies to foreign entities, as some of the field formations are considering the place of supply of the said services as within India, thereby denying the export benefits to such advertising companies.
  • In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issues in succeeding paragraphs.
  1. Issue in Brief
  • A foreign company or firm hires an advertising company/agency in India for advertisement of its goods or services and may enter into a comprehensive agreement with the advertising company/agency encompassing all the issues related to advertising services ranging from media planning, investment planning for the same, creating and designing content, strategizing for maximum customer reach, the identification of media owners, dealing with media owners, procuring media space, etc. for displaying/broadcasting/printing of advertisement including monitoring of the progress of the same. In such a case, the advertising agency provides a one stop solution to the client who outsources the entire activity to the agency.
  • In this scenario, media owners raise invoice to the advertising agency for inventory costs, which are then paid by the advertising agency. Subsequently, the advertising agency raises invoice to the foreign client for the rendered advertising services and receives the payments in foreign exchange from the foreign client. In this regard, clarification has been sought as to:
  1. Whether the advertising company can be considered as an “intermediary” between the foreign client and the media owners in terms of section 2(13) of Integrated Goods and Services Tax Act, 2017 (herein after referred to as the “IGST Act”), thereby resulting in determination of place of supply under section 13(8)(b) of the IGST Act?
  2. Whether the representative of foreign client in India or the target audience of the advertisement in India can be considered as the recipient of the services being supplied by the advertising company under section 2(93) of CGST Act?
  3. Whether the advertising services provided by the advertising companies to foreign clients can be considered as performance-based services as per section 13(3)of the IGST Act?
  4. Clarification
  5. Issue 1 -Whether the advertising company can be considered as an “intermediary” between the foreign client and the media owners as per section 2(13) of IGST Act?
  • As per section 2(13) of IGST Act, read with Circular no. 159/15/2021-GST, dated 20-09-2021, a broker, agent or any other person who arranges or facilitates the main supply of goods or services or both or securities and has not involved himself in the main supply on his own account is considered as intermediary.
  • In the instant scenario, it is observed that the foreign clients enter into a comprehensive agreement with advertising companies/agencies in India and outsource the entire activity of advertising services to the advertising companies/agencies. Further, these advertising companies/agencies enter into an agreement with the media owners in India for implementing the said media plan and procurement of media space for airing or releasing or printing advertisement
  • The advertising agency, in this case, enters into two agreements:
  1. With the client located outside India for providing a one stop solution starting from designing the advertisement to its display in the media as agreed to with the client. The advertising company raises invoice to its foreign client for the above advertising services and the payments of the same is received from the foreign client in foreign exchange.
  2. With the media company to procure media space for display of the advertisement and to monitor campaign progress based on data shared by the media company. The media company bills the advertising agency and the payment for same is made by the advertising agency to the media company.
  3. Thus, the agreement, in the instant case, is in the nature of two distinct principal-to-principal supplies and no agreement of supply of services exists between the Media company and the foreign client. The advertising company is not acting as an agent but has been contracted by the client to procure and provide certain services. The advertising agency is providing the services to the client on its own account.
  4. Clarification: In view of above, in the present scenario the advertising company is involved in the main supply of advertising services, including resale of media space, to the foreign client on principal-to-principal basis as detailed above and does not fulfil the criteria of “intermediary” under section 2(13) of the IGST Act. Thus, the same cannot be considered as “intermediary” in such a scenario and accordingly, the place of supply in the instant matter cannot be linked with the location of supplier of services in terms of section 13(8)(b) of the IGST Act.
  5. Issue-2 Whether the representative of foreign client in India or the target audience of the advertisement in India can be considered as the “recipient” of the services being supplied by the advertising company under section 2(93) of CGST Act?
  • As per Section 2(93)(a) of the CGST Act, the “recipient” of the services means the person who is liable to pay consideration where a consideration is payable for the supply of goods or services or both.
  • In the instant scenario, the foreign client is liable to pay the consideration to advertising company for the supply of advertising and not the consumers or the target audience that watches the advertisement in India.
  • In this case, even if a representative of the foreign client in India, such as a subsidiary or related person, interacts with the advertising company, the representative cannot be deemed the recipient of the service. If the agreement is between the foreign client and the advertising company, the invoice is issued to the foreign client, and payment is received directly from the foreign client, then the foreign client remains the true recipient of the service.
  • Further, the target audience of the advertisements may be based in India but such target audience cannot be considered as recipient of the said advertising services being supplied by the advertising company as per the definition of the recipient under section 2(93) of CGST Act.
  • Clarification: In view of above, it is clarified that the recipient of the advertising services provided by the advertising company in such cases is the foreign client and not the Indian representative of the foreign client based in India or the target audience of the advertisements, as per section 2(93) of the CGST Act, 2017.
  1. Issue-3 Whether the advertising services provided by the advertising companies to foreign clients can be considered as performance-based services as per section 13(3) of the IGST Act?
  • The place of supply of performance-based services is provided in sub-section (3) of section 13 of IGST Act. The provisions of clause (a) of the said sub-section pertain to the services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services.
  • However, in the instant matter, there does not appear to be any such involvement of goods which are required to be physically available with supplier of advertising services. Therefore, the said provisions of clause (a) of the said sub-section cannot be made applicable for determination of place of supply of advertising services.
  • Further, clause of (b) of sub-section (3) of section 13(3)(b) of IGST Act provides that the place of supply shall be the location where the services are actually performed in case, where,
  • services are supplied to an individual,
  • represented either as the recipient of services or a person acting on behalf of the recipient, and
  • which requires the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of services
  • In the present scenario, the supply of advertising services does not require physical presence of the recipient (foreign client or representative or a person acting on his behalf) with the advertising company for availing the said advertising services. Thus, the said supply of advertising services cannot be considered as being covered under section 13(3)(b) of the IGST Act for being considered as the services actually performed in India in terms of the said section.
  • Clarification: Accordingly, it is clarified that the place of supply of advertising services in such cases can neither be determined as per the provision of section 13(3)(a) nor as per the provisions of section 13(3)(b) of IGST Act.
  • Observations:
  • Further, it is observed that in the present scenario, the place of supply of the above-mentioned advertising services does not appear to be covered under any other provisions of sub-sections (3) to (13) of Section 13 of the IGST Act.
  • Therefore, in view of foregoing discussion, it appears that the place of supply of the said advertising service being supplied by the advertising company to the foreign clients can only be determined as per the default provision, i.e. sub-section (2) of section 13 of IGST Act, e.the place of location of the recipient of the services.
  • Since the recipient of the advertising services in such scenario is the foreign client, who is located outside India, the place of supply of the said services appears to be the location of the said foreign client e.outside India as per Section 13(2) of IGST Act, and the said service can be considered to be export of services, subject to the fulfilment of conditions mentioned in section 2(6) of IGST Act
  1. In cases where an advertising company in India acts as an agent for a foreign client in securing media space, the contract for media space and ad broadcast is directly between the media owner and the foreign client. The media owner invoices the foreign client and receives payment directly from them. The media services are thus provided directly by the media owner to the foreign client. The advertising company merely facilitates this arrangement and does not provide the media space services itself. The advertising company charges the foreign client only for its facilitation services.
  • Consequently, in such cases, the advertising company is an “intermediary” in accordance with Section 2(13) of the CGST Act, 2017, as elucidated in Circular No. 159/15/2021-GST, dated 20.09.2021, in respect of the said services of facilitating the foreign client and accordingly, the place of supply in respect of the said services provided by the advertising company to the foreign client is determinable as per section 13(8)(b) of IGST Act, e.the location of the supplier, i.e. the location of the advertising company.
  • It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
  • Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board.
  • Clarification on availability of Input tax credit in respect of Demo Vehicles Circular No. 231/25/2024-GST [F. NO. CBIC-20001/6/2024-GST], dated 10-09-2024
  • The demo vehicles are the vehicles which the authorized dealers for sale of motor vehicles are required to maintain at their sales outlet as per dealership norms and are used for providing trial run and for demonstrating features of the vehicle to the potential buyers.
  • These vehicles are purchased by the authorized dealers from the vehicle manufacturers against tax invoices and are typically reflected as capital assets in books of account of the authorized dealers.
  • As per dealership norms, these vehicles may be required to be held by the authorized dealers as demo vehicle for certain mandatory period and may, thereafter, be sold by the dealer at a written down value and applicable tax is payable at that point of time.
  • Reference has been received to issue clarification regarding availability of input tax credit in respect of demo vehicles on the following issues:
  • Availability of input tax credit on demo vehicles, which are motor vehicles for transportation of passengers having approved seating capacity of not more than 13 persons (including the driver), in terms of clause(a) of section 17(5) of Central Goods & Services Tax Act, 2017 (hereinafter referred to as the ‘CGST Act”).
  • Availability of input tax credit on demo vehicles in cases where such vehicles are capitalized in the books of account by the authorized dealers.
  • In order to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168(1) of the CGST Act, hereby clarifies the above issues as below.
  • Availability of input tax credit on demo vehicles, which are motor vehicles for transportation of passengers having approved seating capacity of not more than 13 persons (including the driver), in terms of clause(a) of section 17(5) of CGST Act.
  • Clause (a) of Section 17(5) of CGST Act provides that input tax credit shall not be available in respect of motor vehicles for transportation of persons having approved seating capacity of not more than 13 persons (including the driver), except when they are used for making following taxable supplies, namely:
  • further supply of such motor vehicles; or
  • transportation of passengers; or
  • imparting training on driving such motor vehicles
  • The law’s intention, as indicated by the phrase “when they are used for making the following taxable supplies” in section 17(5)(a) of the CGST Act, is to exclude certain cases from the restriction on input tax credit for specified motor vehicles, specifically those used for transporting up to thirteen persons (including the driver). The taxable supplies that are exempt from this input tax credit blockage include the further supply of such motor vehicles, transportation of passengers, and providing driving training for these vehicles.
  • As demo vehicles are used by authorized dealers to provide trial run and to demonstrate features of the vehicle to potential buyers, it is quite apparent that demo vehicles cannot be said to be used by the authorized dealer for providing taxable supply of transportation of passengers or imparting training on driving such motor vehicles.

Therefore, demo vehicles are not covered in the exclusions specified in sub-clauses (B) and (C) of clause (a) of section 17(5) of CGST Act. Accordingly, it is to be seen whether or not the Demo vehicles in question can be said to be used for making “further supply of such motor vehicles”, as specified in the sub-clause (A) of the clause (a) of section 17(5) of CGST Act.

  • The use of the phrase “such motor vehicles” in section 17(5)(a)(A) of the CGST Act indicates that lawmakers intended to exclude from input tax credit (ITC) blockage not only the motor vehicle being further supplied but also those used for promoting the sale of similar vehicles. Since demo vehicles are used to promote the sale of similar motor vehicles, they can be considered part of the “further supply” of such vehicles. Therefore, ITC on demo vehicles is not blocked under section 17(5)(a) of the CGST Act, as it qualifies for exclusion from the blockage.
  • There may be some cases where motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver) are used by an authorized dealer for purposes other than for making further supply of such motor vehicles, say for transportation of its staff employees/ management etc. In such cases, the same cannot be said to be used for making ‘further supply of such motor vehicles’ and therefore, input tax credit in respect of such motor vehicles would not be excluded from blockage in terms of sub-clause (A) of clause (a) of section 17(5) of CGST Act.
  • In cases where an authorized dealer acts as an agent or service provider for the vehicle manufacturer, facilitating marketing services such as test drives, and is not involved in direct vehicle sales, the manufacturer issues the sale invoice directly to the customer. The dealer may purchase demo vehicles for test drives and later sell them, charging applicable GST. Since the dealer provides marketing services rather than supplying vehicles on their own account, the demo vehicle is not used for further vehicle supply. Therefore, input tax credit (ITC) on such demo vehicles is blocked under section 17(5)(a) of the CGST Act and is not available to the dealer.
  • Availability of input tax credit on demo vehicles in cases where such vehicles are capitalized in the books of account by the authorized dealers.
  • As per provisions of section 16(1) of CGST Act, every registered taxpayer is entitled to take input tax credit charged on any supply of goods and services made to him, where such goods or services are used in the course or furtherance of business of such person, subject to such conditions and restrictions as may be prescribed and in the manner which is specified.
  • Further, “goods” has been defined in section 2(52) of CGST Act, as,

“Goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

  • Also, section 2(19) of CGST Act defines “capital goods” as,

“Capital goods” means goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

  • Demo vehicles used by authorized dealers to promote sales are considered to be used in the course or furtherance of their business. If these vehicles are capitalized in the dealer’s books, they qualify as “capital goods” under section 2(19) of the CGST Act. According to section 16(1) of the CGST Act, the recipient of goods, including capital goods, is entitled to claim input tax credit (ITC) on the tax paid for the inward supply of those goods. Therefore, ITC on demo vehicles remains available, even if the vehicles are capitalized, subject to other provisions of the Act.
  • However, it is to be mentioned that in case of capitalization of demo vehicles, availability of input tax credit would be subject to provisions of section 16(3) of CGST Act, which provides that where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed. It is further mentioned that in case demo vehicle, which is capitalized, is subsequently sold by the authorized dealer, the authorized dealer shall have to pay an amount or tax as per provisions of section 18(6) of CGST

Act read with rule 44(6) of the Central Goods and Service Tax Rules, 2017.

  • It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
  • Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board.
  • Clarification on Place of Supply of Data Hosting Services provided by service providers located in India to Cloud Computing Service Providers located outside India Circular No. 232/26/2024-GSTL [F.NO. CBIC-20001/6/2024-GST], dated 10-09-2024.
  • Representations have been received from the trade and industry seeking clarification on the place of supply in case of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
  • Issue
  • It has been represented that some field formations are of the view that the place of supply of data hosting services provided by the service providers located in India to cloud computing service providers located outside India is the location of data hosting service provider in India and therefore, the benefit of export of services is not available on such supply of data hosting services.
  • Thus, clarification has been sought in respect of the following issues-
  1. Whether data hosting service provider qualifies as ‘Intermediary’ between the cloud computing service provider and their end customers/users/subscribers as per Section 2(13) of the Integrated Goods and Services Tax Act, 2017 (herein after referred to as the “IGST Act”) and whether the services provided by data hosting service provider to cloud computing service providers are covered as intermediary services and whether the place of supply of the same is to be determined as per section 13(8)(b) of IGST Act
  2. Whether the data hosting services are provided in relation to goods “made available” by recipient of services to service provider for supply of such services and whether the place of supply of the same is to be determined as per section 13(3)(a) of the IGST Act
  3. Whether the data hosting services are provided directly in relation to “immovable property” and whether the place of supply of the same is to be determined as per section 13(4) of the IGST Act.
  • Clarification
  1. Whether data hosting service provider qualifies as ‘Intermediary’ between the cloud computing service provider and their end customers/users/subscribers as per Section 2(13) of the IGST Act and whether the services provided by data hosting service provider to cloud computing service providers are covered as intermediary services and whether the place of supply of the same is to be determined as per section 13(8)(b) of IGST Act.
  • As per section 2(13) of the IGST Act, read with Circular no. 159/15/2021-GST, dated 20-09-2021, a broker, agent or any other person who arranges or facilitates the main supply of goods or services or both or securities and has not involved himself in the main supply on his own account is considered as ‘intermediary’. Persons who supply goods or services, or both on their own account are not covered in the definition of “intermediary”.
  • Cloud computing service providers typically contract with data hosting service providers to use their data centers for hosting services. The data hosting provider, either owning or leasing the premises, manages the infrastructure, human resources, monitoring, IT management, and equipment maintenance. They oversee all aspects of the data center, including rent, hardware, software, power, connectivity, security, and personnel. Importantly, data hosting providers do not interact with or have knowledge of the end users of the cloud computing services.
  • Observation:

In this scenario, the data hosting service provider delivers services to the cloud computing provider via a web platform using computing and networking equipment for data storage, processing, and access. The provider operates independently on a principal-to-principal basis, not as a broker or agent between the cloud computing provider and its end users. The cloud computing provider offers services like data storage, AI, machine learning, and analytics to its customers, who access these services online. There is no direct interaction between the data hosting provider and the end users of the cloud computing service.

  • Clarification: Accordingly, it is clarified that in such a scenario, the services provided by data hosting service provider to its overseas cloud computing service providers cannot be considered as intermediary services and hence, the place of supply of the same cannot be determined as per section 13(8)(b) of IGST Act.
  1. Whether the data hosting services are provided in relation to goods “made available” by recipient of services to service provider for supply of such services and whether the place of supply of the same is to be determined as per section 13(3)(a) of the IGST Act, 2017.
  • Section 13(3)(a) of the IGST Act provides that in cases where the services are supplied in respect of goods which are made physically available by the recipient of services to service provider, the place of supply will be location of service provider.
  • Observation: In this scenario, a data hosting service provider independently offers services to overseas cloud computing providers. The service provider manages and maintains the entire data center infrastructure, including hardware, software, cooling systems, power supply, network, and security, all through their personnel. They either own or lease the premises and are solely responsible for its operation. The cloud computing providers pay for these services based on agreements. Since the infrastructure is entirely managed by the data hosting provider, it is not considered owned or physically available to the cloud computing providers.
  • Clarification: In view of above, it is clarified that data hosting services provided by data hosting service provider to the said cloud computing service providers cannot be considered in relation to the goods “made available” by the said cloud computing service providers to the data hosting service provider in India and hence, the place of supply of the same cannot be determined under section 13(3)(a) of the IGST Act.
  • In cases where the cloud computing service provider supplies some hardware to the data hosting service provider, the latter still manages all aspects of the data center, including premises, software, power, connectivity, security, and maintenance. Therefore, despite using hardware provided by the cloud computing provider, the data hosting services are not considered to be “in relation to” those goods. As a result, the place of supply cannot be determined under section 13(3)(a) of the IGST Act in such cases.
  1. Whether the data hosting services are provided directly in relation to “immovable property” and whether the place of supply of the same is to be determined as per section 13(4) of the IGST Act.
  • Section 13(4) of the IGST Act provides for the place of supply where services supplied are directly in relation to immovable property.
  • Observation: In this scenario, data hosting service providers use either owned or leased premises and manage all necessary infrastructure such as hardware, power supplies, cooling systems, network connectivity, security, and personnel. They also handle operations like server monitoring, IT management, and equipment maintenance. These services are not merely passive or directly related to immovable property but involve a comprehensive range of activities necessary for data hosting. This ensures that cloud computing providers can offer uninterrupted services to their end users, making the data hosting services essential to their operations.
  • Clarification: Accordingly, it is clarified that in such a scenario, the data hosting services cannot be considered as the services provided directly in relation to immovable property or physical premises and hence, the place of supply of such services cannot be determined under section 13(4) of IGST Act.
  • Further, the place of supply for the data hosting services provided by data hosting service provider located in India to overseas cloud computing service providers does not appear to fit into any of the specific provisions outlined in sections 13(3) to 13(13) of the IGST Act. Therefore, the place of supply in such cases needs to be determined according to the default provision under section 13(2) of the IGST Act, e.the location of the recipient of the services. Where the cloud computing service provider receiving the data hosting services are located outside India, the place of supply will be considered to be outside India according to section 13(2) of the IGST Act.
  • Accordingly, supply of data hosting services being provided by a data hosting service provider located in India to an overseas cloud computing entity can be considered as export of services, subject to the fulfilment of the other conditions mentioned in section 2(6) of IGST Act.
  • It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
  • Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board.

 

  • Circular No. 233/27/2024-GST [F.NO. CBIC-20001/6/2024-GST] clarification regarding Regularization of refund of IGST availed in Contravention of Rule 96(10) OF CGST Rules, 2017, in cases where the exporters had imported certain inputs without payment of Integrated Taxes and compensation Cess Circular No. 233/27/2024-GST], dated 10-09-2024.
  • Sub-rule (10) of rule 96 of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) provides for a bar on availment of the refund of integrated tax (IGST) paid on export of goods or services, if benefits of certain concessional/exemption notifications, as specified in the said sub-rule, have been availed on inputs/raw materials imported or procured domestically.

In this regard, references have been received from the field formations and trade/ industry wherein clarification has been sought on whether refund of integrated tax paid on exports of goods by a registered person can be regularized in a case where the registered person had initially imported inputs without payment of integrated tax and compensation cess, by availing the benefits under Notification No. 78/2017-Customs, dated 13-10-2017 or Notification No. 79/2017-Customs, dated 13-10-2017, but subsequently, at a later date, the said person has either paid the IGST and compensation cess, along with interest, on such imported inputs or is now willing to pay such IGST and compensation cess, along with interest.

  • The issue has been examined and in order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the following:
  1. Vide Notification No. 16/2020-CT, dated 23-3-2020, an Explanation was inserted in sub-rule (10) of rule 96 of CGST Rules retrospectively with effect from 23-10-2017, which reads as follows:

Explanation. – For the purpose of this sub-rule, the benefit of the notifications mentioned therein shall not be considered to have been availed only where the registered person has paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed exemption of only Basic Customs Duty (BCD) under the said notifications.”

  1. The explanation, inserted with retrospective effect, clarifies that if exemption benefits for IGST and compensation cess have not been availed, it will be deemed that the notifications’ benefits were not availed for the purpose of sub-rule (10) of rule 96 of the CGST Rules. This implies that if inputs were initially imported without paying IGST and compensation cess, but these taxes are later paid with interest, it can be considered that the exemption benefits were not availed. Consequently, claiming a refund of IGST on exports with tax payment in such cases would not violate sub-rule (10) of rule 96.
  2. In view of the above, it is clarified that where the inputs were initially imported without payment of integrated tax and compensation cess by availing benefits under Notification No. 78/2017-Customs, dated 13-10-2017 or Notification No. 79/2017-Customs, dated 13-10-2017, but subsequently, IGST and compensation cess on such imported inputs are paid at a later date, along with interest, and the Bill of Entry in respect of the import of the said inputs is got reassessed through the jurisdictional Customs authorities to this effect, then the IGST, paid on exports of goods, refunded to the said exporter shall not be considered to be in contravention of provisions of sub-rule (10) of rule 96 of CGST Rules.
  • It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
  • Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board.

 

  • Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification New Delhi, the 27th September, 2024 No. 17/2024–Central Tax

In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby appoints.—(a)the  date  of  publication  of  this  notification  in  the  Official  Gazette,  as  the  date  on  which  the  provisions  of sections (118, 142, 148 and 150 of the said Act shall come into force; and(b)the 1st day of November, 2024, as the date on which the provisions of sections (114 to 117, 119 to 141, 143 to 147, 149 and 151 to 157) of the said Act shall come into force.

  • Notifying National Bank for Financing Infrastructure and Development as Public Financial Institution

Ministry of Corporate Affairs in consultation with the Reserve Bank of India, hereby notifies National Bank for Financing Infrastructure and Development as a public financial institution. 

  • Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2024

The Ministry of Corporate Affairs has notified amendments in Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 wherein Schedule II, Schedule III and Schedule IV are substituted as per the notification. These rules shall be called Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2024 and come into force with immediate effect.

  • Companies (Indian Accounting Standards) Second Amendment Rules, 2024

Ministry of Corporate Affairs has notified amendments in Companies (Indian Accounting Standards) Rules, 2015 wherein various new paragraphs has been inserted. These rules shall be called Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and come into force with immediate effect.

  • Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024

The Ministry of Corporate Affairs has notified amendments in Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 wherein new sub rule 25A(5) has been inserted as specified therein. These rules shall be called Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024 and come into force from September 17, 2024.

  • Launching Company Adjudication (ADJ) Form

The Ministry of Corporate Affairs is launching Company Adjudication (ADJ) form on 16th September 2024 at 12:00 AM and has advised stakeholders to note the following points to facilitate implementation of this form in V3 MCA21 portal:

  1. ADJ form on V2 portal will be disabled from 12th September 2024 12:00 AM to 15th September 11:59 pm which is planned for roll-out on 16th September 2024 at 12:00 AM
  2. All stakeholders are advised to ensure that there are no SRNs in pending payment and Resubmission status
  3. Offline payments in V2 using Pay later option would be stopped from 04th September 12:00 AM
  4. V3 portal will not be available for filing of Company/LLP forms on 15th September due to ADJ form roll-out
  5. V2 Portal for company filing will remain available for all the forms which are currently in V2 system. Stakeholders may plan accordingly.
  • Companies (Prospectus and Allotment of Securities) Amendment Rules, 2024

The Ministry of Corporate Affairs has notified Companies (Prospectus and Allotment of Securities) Amendment Rules, 2024 wherein in Rule 9B (2) a new proviso shall be inserted. These Rules shall come in force on September 20, 2024.

  • Clarification on holding of Annual General Meeting (AGM) and EGM through Video Conference (VC) or Other Audio Visual Means (OAVM) and passing of Ordinary and Special resolutions by the companies under the Companies Act, 2013 read with Rules made thereunder -Extension of timeline

The Ministry of Corporate Affairs has issued clarification on holding of Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) through Video Conference (VC) or Other Audio Visual Means (OAVM) and passing of Ordinary and Special resolutions by the companies under the Companies Act, 2013 upto September 30, 2025. It is further clarified that General Circular shall not be construed as conferring any extension of statutory time for holding of AGMs by the companies under the Companies Act, 2013 (the Act) and the companies which have not adhered to the relevant statutory timelines shall be liable to legal action under the appropriate provisions of the Act.

  • Company e-Filing Form IEPF-1

The Ministry of Corporate Affairs (MCA) has issued the User Guide for the Procedure to fill the details in the Company e-Filing Form IEPF-1. The objective of Company e-Filing Form IEPF-1 is to make statement of amount credited and transfer of amounts process simplified.

 

RBI

  • Liberalised Remittance Scheme (LRS) for Resident Individuals Discontinuation of Reporting of Monthly Return

The Reserve Bank of India has announced that, effective from September 2024, AD Category-I banks will no longer be required to submit the Liberalised Remittance Scheme (LRS) monthly return (Return code: R089). Instead, these banks will need to upload transaction-wise information under the LRS daily return (CIMS return code: R010) by the close of business on the next working day via the CIMS platform (URL: https://sankalan.rbi.org.in). If there are no transactions to report, banks must upload a ‘NIL’ report. Additionally, certain circulars related to the monthly return requirement has been withdrawn.

 

  • Foreign Exchange (Compounding Proceedings) Rules, 2024

The Department of Economic Affairs has issued a notification with respect to Foreign Exchange (Compounding Proceedings) Rules, 2024 read with Foreign Exchange Management Act, 1999 and in supersession of the Foreign Exchange (Compounding Proceedings) Rules, 2000, such rules shall be effective on the date of their publication in the Official Gazette.

 

  • SEBI (Listing Obligations and Disclosure Requirements) Regulations

The National Stock Exchange of India has issued a Circular in respect of Disclosure for utilization of issue proceeds for Listed Entities on NSE EMERGE.This circular shall be applicable with immediate effect and shall not apply to the listed entity wherein the monitoring agency has been appointed.

 

  • SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2024

The Securities and Exchange Board of India has notified amendments in the SEBI (Foreign Venture Capital Investors) Regulations, 2000 wherein various regulations has been subsituted and these regualtions may be called SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2024. They shall come into force from January 01, 2025.

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for the period 30.09.2024.

 

 

Executive Summary

Income Tax

  • CBDT Issues clarification in respect of Income-Tax clearance certificate.
  • Section 10(46A) Exemptions – Income arising to a body or authority or Board or trust or Commission, not being a Company.
  • Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority.
  • Section 144B – Faceless Assessment – Order under proviso to sub-section (5) of Section 144B specifying circumstances for purposes of enquiries or verification functions by verification Unit.

Goods And Service Tax (GST)

  • Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal, dated Aug 2nd, 2024
  • Advisory in respect of Changes in GSTR 8, dated Aug 2nd, 2024
  • Notification no. 16/2024 – Central Tax [S.O. 3161(E)/F.NO. CBI…Section 1 of the Finance Act, 2024 – short title and commencement – notified date of enforcement of sections 11, 12 and 13 notification no. 16/2024– Central Tax [S.O. 3161(E)/F.NO. CBIC-20006/20/2023-GST], dated 6-8-2024.
  • Guidelines for second special all-India drive against fake registrations instruction no. 2/2024-GST [F. NO. CBIC- 20/16/30/2020-GST], dated 12-8-2024
  • Circular no. 228/22/2024-GST [F. NO. CBIC-190354/94/2024-TO(TRU-II)-CBEC], dated 15-7-2024 Section 3, read with section 5, of the central goods and services tax act, 2017 – officers under the act – guidelines for CGST field formations in maintaining ease of doing business while engaging in investigation with regular taxpayers – applying para 2(G) of the Instruction No. 1/2023-24-GST (inv.), dated 30-3-2024 in audit matters.
  • Instruction no. 3/2024-GST [F. No. GST/INV/INSTRUCTIONS/2023 24], dated 14-8-2024
  • Advisory for furnishing bank account details before filing GSTR-1/IFF Notification No. 38/2023 – Central Tax New Delhi, the 4th of August 2023, dated Aug 23rd, 2024
  • Introduction of RCM Liability/ITC Statement dated Aug 23rd, 2024

Companies Act 2013/ Other Laws

  • Companies (Registration of Foreign Companies) Amendment Rules, 2024 – Amendment in Rules 3
  • Limited Liability Partnership (Amendment) Rules, 2024 introduces the Centre for Processing Accelerated Corporate Exit, effective from 27th August 2024.
  • Amendment in DIR 3 KYC
  • IBBI mandates Registered Valuers to provide a ‘Valuation Report Identification Number’ for each valuation

 

  • SEBI bars stock exchanges/clearing corporations from ties with unregistered security advisors

 

  • SEBI amends Intermediaries Regulations; bars intermediaries from associating with unregistered security advisors

 

Income Tax

  • CBDT Issues clarification in respect of Income-Tax clearance certificate.
  • Section 230(1A) of the Income-tax Act, 1961 relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India.

In this context, CBDT has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances –

  1. where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or
  2. where the person has direct tax arrears exceeding Rs. 10 lakhs outstanding against him which have not been stayed by any authority.
  • Further, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax.

 

  • Section 10(46A) of the Income Tax Act, 1961 – Exemptions – Income arising to a body or authority or Board or trust or Commission, not being a Company.
  • The Finance Act, 2023 inserted clause (46A) in section 10 of the Income-tax Act, 1961 to exempt any income arising to a body or authority or Board or Trust or Commission, not being a company, which has been established or constituted by or under a Central or State Act with one or more of the following purposes, namely: –
  1. dealing with and satisfying the need for housing accommodation.
  2. planning, development or improvement of cities, towns and villages.
  3. regulating, or regulating and developing, any activity for the benefit of the general public, or
  4. regulating any matter, for the benefit of the general public, arising out of the object for which it has been created; and
  • It has also been provided that such body or authority or Board or Trust or Commission, referred to above is required to be notified by the Central Government in the official Gazette for the purposes of this Clause.
  • In order to standardize the manner of filing application u/s 10(46A) of the Act and to avoid procedural delays in processing the same, applicants are advised to file the applications along with requisite enclosures to the Pr. Commissioner/Commissioner of Income-tax/Pr. Director/Director of Income-tax under whose jurisdiction their cases fall.

 

  • Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority.

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961)

  • The Central Government notifies for the purposes of the above clause, ‘‘West Bengal Transport Workers’ Social Security Scheme’ (PAN AAALW0133G), a a body established by the Government of West Bengal, in respect of the following specified income arising to the said Society, as follows:
  1. Amount received in the form of Government grants.
  2. Amount received as Cess under the West Bengal Motor Transport Workers’ Welfare Cess Act, 2010 (West Bengal Act V of 2010) and rules framed thereunder.
  3. Amount received as registration fees paid by the registered beneficiaries; and
  4. Interest earned on bank deposits.
  • This notification shall be effective subject to the conditions that West Bengal Transport Workers’ Social Security Scheme –
  1. shall not engage in any commercial activity
  2. its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); and
  3. shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
  • This notification shall be applicable from AY 24-25 to AY 25-26.

AND

  • The Central Government notifies ‘Unique Identification Authority of India’, (PAN AAAGU0182Q), a statutory Authority established under the provisions of the AADHAAR Act, 2016 by the Government of India, in respect of the following specified income arising to the said Society, as follows:
  1. Grants/Subsidies received from Central Government
  2. Fees/ Subscriptions including RTI Fee, Tender Fee, Sale of Scrap, PVC card
  3. Authentication, Enrolment and Updation service charges received
  4. Term/Fixed Deposits; and
  5. Interest on bank deposits
  • This notification shall be effective subject to the conditions that ‘Unique Identification Authority of India’ –
  1. shall not engage in any commercial activity
  2. its activities and the nature of the specified income shall remain unchanged throughout the financial years.
  3. shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.
  • This notification shall be applicable from AY 24-25 to AY 28-29.

AND

  • The Central Government notifies ‘Karnataka State Natural Disaster Monitoring Centre’, (PAN: AAATD2434P), a body constituted by the State Government of Karnataka, in respect of the following specified income arising to the said Society, as follows:
  1. Grant –in-aid received from State Govt. and Govt. of India,
  2. Income received from data sharing activities, and
  3. Interest on bank deposits
  • This notification shall be effective subject to the conditions that ‘Karnataka State Natural Disaster Monitoring Centre’ –
  1. shall not engage in any commercial activity
  2. its activities and the nature of the specified income shall remain unchanged throughout the financial years.
  3. shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.
  • This notification shall be applicable for AY 24-25 to AY 25-26.

 

  • Section 144B of the Income Tax Act, 1961- Faceless Assessment – Order under proviso to sub section (5) of Section 144B – specifying circumstances for purpose of enquiries or verification functions by verification unit.
  • In pursuance of the proviso to sub-section (5) of Section 144B of the Income-tax Act, 1961 the Central Board of Direct Taxes hereby specifies the following circumstances, for the purpose of enquiry or verification functions referred to in Section 144B(3)(iii) of the Act by the Verification Unit: –
  1. Non-availability of digital footprint in respect of the assessee or any other person.
  2. Electronic or Online verification is not possible on account of no response to notice issued to the assessee or any other person.
  3. Physical verification of assets or premises or persons is required, regardless of the presence of digital footprint.
  • This order shall come into force with immediate effect.

 

48th GST Council Meeting Highlights: 17th December 2022

  • Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal, (Aug 2nd, 2024) and of Dadra and Nagar Haveli and Daman and Diu AND Chandigarh (Aug 24th, 2024)

 

  1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
  2. The above-said functionality has been developed by GSTN. It has been rolled out in Jammu & Kashmir and West Bengal on 02nd August 2024 and in Dadra and Nagar Haveli and Daman and Diu AND Chandigarh on 24th August 2024.
  3. The said functionality also provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,

(a)   A Link for OTP-based Aadhaar Authentication OR

(b)   A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail).

  1. If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the application as per the existing process.
  2. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail, she/he will be able to visit the designated GSK as per the chosen schedule.
  3. At the time of the visit to GSK, the applicant is required to carry the following details.

(a)   a copy (hard/soft) of the appointment confirmation e-mail.

(b)   the details of jurisdiction as mentioned in the intimation e-mail.

(c)   Aadhaar Card and PAN Card (Original Copies)

(d)   the original documents that were uploaded with the application, as communicated by the intimation e-mail.

  1. The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application Form REG-01.
  2. The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication process and document verification are completed.
  3. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Jammu & Kashmir and West Bengal, Dadra and Nagar Haveli, Daman and Diu AND Chandigarh.
  4. The operation days and hours of GSKs will be as per the guidelines provided by the administration in your respective state.

 

  • Advisory in respect of Changes in GSTR 8, Dated (Aug 2nd, 2024)

TCS rate has been reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.

Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:

  1.   Period from 1st July to 9th July 2024:
  • During this period, the old TCS rate of 1% will continue to apply. Taxpayers are required to collect & report TCS at this rate for all transactions that happened between these dates.
  1.   From 10th July 2024 onwards:
  • A revised TCS rate of 0.5% will come into effect from 10th July 2024. Taxpayers must ensure their systems and processes are updated to reflect this new rate for all transactions that happened from 10th July forward.

 

Further, as few taxpayers have reported validation error while filing GSTR-8 for the month of July 2024, it is to inform that GSTN team is working on the changes announced by GST Council in respect of GSTR 8, is expected to be complete in next couple of days, and users would be able to file returns from 06th August 2024 midnight onwards. Any inconvenience caused in this regard is regretted.

 

  • Notification no. 16/2024– Central Tax [S.O. 3161(E)/F.NO. CBI… Section 1 of the finance act, 2024 – short title and commencement – notified date of enforcement of sections 11, 12 and 13 Notification no. 16/2024–Central Tax [S.O. 3161(E)/F.NO. CBIC-20006/20/2023-GST], DATED 6-8-2024

 

In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2024 (8 of 2024), the Central Government hereby appoints, —

  • the 1st day of October 2024, as the date on which the provisions of section 13 of the said Act shall come into force.
  • the 1st day of April 2025, as the date on which the provisions of sections 11 and 12 of the said Act shall come into force.

 

  • Guidelines for second special all-India drive against fake registrations instruction no. 2/2024-GST [F. NO. CBIC- 20/16/30/2020-GST], Dated 12-8-2024

 

Attention is invited to the Instruction No. 1/2023-GST, dated 4-5-2023 vide which guidelines were issued for conducting a special All-India drive during the period from 16th May, 2023 to 15th July, 2023, for verification and detection of suspicious/ fake registrations and for taking timely remedial action to prevent any further revenue loss to the Government

 

  1. A meeting of the said National Co-ordination Committee held on 11th July 2024 was found quite effective in weeding out fake registrations. The Committee felt that there may be a need for further focused and coordinated action by Central and State tax authorities, therefore, decided that a second special All-India drive against fake registrations may be conducted by all Central and State tax authorities for a period of two months starting from 16th August 2024.

 

  1. In the light of above, in partial modification of the Instruction No. 1/2023-GST, dated 4-5-2023, the following guidelines are issued for such concerted action on suspicious/ fake registrations during the special All-India drive during this year: —
  2. Period of Special Drive is from 16th August 2024 to 15th October 2024 to detect suspicious/ fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.
  3. Identification of fraudulent GSTINs.

GSTN, in coordination with Directorate General of Analytics and Risk Management (DGARM), CBIC, will identify suspicious/ high-risk GSTINs, based on detailed data analytics and risk parameters, for the purpose of verification by the State and Central Tax authorities during the said drive and share the details of such suspicious GSTINs, jurisdiction wise, with the concerned tax administration. In case of such suspicious GSTINs falling under the jurisdiction of Central Tax, the details will be shared with the Central Tax authorities by GSTN through DGARM. Besides, the State and Central Tax Authorities, may, at their own option, supplement this list by data analysis/ intelligence gathering at their end, using various available analytical tools like BIFA/ GAIN, ADVAIT, NIC Prime, E-Way Bill Analytics etc., as well as through human intelligence, modus operandi alerts, experience gained through the past detections, as well as the first special All-India drive.

  • Action to be taken by field formations:
  1. Upon receiving data from GSTN, jurisdictional tax officers are required to promptly verify the suspicious GSTINs. If the verification confirms that the taxpayer is non-existent or fictitious, the officers must swiftly proceed with suspending and canceling the taxpayer’s registration in accordance with the provisions of section 29 of CGST Act, read with the rules thereof.
  2. Further, the matter may also be examined for blocking of input tax credit in Electronic Credit Ledger as per the provisions of Rule 86A of CGST Rules without any delay. Additionally, the details of the recipients to whom the input tax credit has been passed by such non-existent taxpayer may be identified through the details furnished in FORM GSTR-1 by the said taxpayer.
  • Where the recipient GSTIN pertains to the jurisdiction of the said tax authority itself, suitable action may be initiated for demand and recovery of the input tax credit wrongly availed by such recipient on the basis of invoice issued by the said non-existent supplier, without underlying supply of goods or services or both.
  1. In cases where the recipient GSTIN pertains to a different tax jurisdiction, the details of the case including the details of the recipient GSTIN, along with the relevant documents/ evidence, may be sent to the concerned tax authority, as early as possible, in the format mentioned in Annexure-B. For sharing such details/ information and coordination with other tax authorities, GSTN Back Office has an online functionality, ‘Initiate Enquiry’ in the Enforcement module, which is available to all tax officers who have been assigned the role of ‘Enforcement Officer’ on the Back Office (BO Portal).
  2. For the purpose of communicating this information to the recipient tax jurisdiction, a nodal officer shall be appointed immediately by each of the Zonal CGST Zone and State. The name, designation, phone number/ mobile number and E-mail Id of such Nodal officer(s) appointed by CGST Zones and States must be shared by the concerned tax authority with GST Council Secretariat within three days of issuance of this letter. GST Council Secretariat will compile the list of the Nodal officers after procuring the details from all the tax administrations and will make the compiled list available to all the tax jurisdictions and to GSTN.
  3. The nodal officer of the tax jurisdictions may be assigned the role of ‘Enforcement Officer’ on the BO Portal. Wherever the details of the recipient GSTIN needs to be shared to other tax jurisdiction, the same may be done through the nodal officer. The said nodal officer will accordingly share the information about the recipient GSTIN with the nodal officer of the concerned recipient tax administration, through the said functionality, attaching a pdf document in the format mentioned in Annexure-B. The nodal officer of the recipient tax administration will further share the details with the concerned jurisdictional tax officers, for necessary action.
  • GSTN will issue detailed guidelines/ advisory regarding usage of this functionality, which may be referred to.
  • Action may also be taken to identify the masterminds/ beneficiaries behind such fake GSTIN for further action, wherever required, and also for recovery of Government dues and/ or provisional attachment of property/ bank accounts, etc. as per provisions of section 83 of CGST Act. Further, during the investigation/ verification, if any linked suspicious GSTIN is detected, similar action may be taken/ initiated in respect of the same.

 

  • Feedback and Reporting Mechanism:
  1. An action-taken report in the format enclosed as Annexure-A and Annexure-A1 will be uploaded by each of the State as well as CGST Zones, through the nodal officer referred to in para 2(c)(v), on the portal provided for the same, on a weekly basis on the first working day after completion of the week, for enabling the GST Council Secretariat to monitor the same.
  2. If any novel modus operandi is detected during the verification/ investigation, the same may also be indicated in the said action taken report. On conclusion of the drive, GSTIN-wise feedback on the result of verification of the suspicious GSTINs shared by GSTN, will be provided by the field formations through the nodal officer to GSTN, as per the format enclosed in Annexure-C.

 

  1. The Principal Chief Commissioner/ Chief Commissioner of the Central GST Zones and the Chief Commissioner/ Commissioner of the States/ UTs may monitor the progress of action taken in respect of list of suspicious GSTINs received from GSTN and chosen locally. The action taken in respect of the GSTINs received from other tax administrations through the ‘Initiate Enquiry’ module may also be monitored.

 

  1. GST Council Secretariat will compile the reports received from various formations and make it available to the National Coordination Committee immediately. The unique modus operandi found during this special drive will be compiled by GST Council Secretariat and presented before National Coordination Committee, which will be subsequently shared with Central and State Tax administrations across the country.

 

  1. Difficulties, if any, in the implementation of these instructions may be brought to the notice of the Board.

 

  • Circular no. 228/22/2024-GST [F. NO. CBIC-190354/94/2024-TO(TRU-II)-CBEC], DATED 15-7-2024 Section 3, read with section 5, of the central goods and services tax act, 2017 – officers under the act – Guidelines for CGST field formations in maintaining ease of doing business while engaging in investigation with regular taxpayers – applying para 2(G) of the instruction no. 1/2023-24-GST (INV.), Dated 30-3-2024 in audit matters instruction no. 3/2024-GST [F.NO. GST/INV/INSTRUCTIONS/2023 24], Dated 14-8-2024

“The scenario may arise in a CGST Zone where an issue investigated by one of the (Pr.) Commissioners is based on an interpretation of CGST Act/Rules, notifications, circulars etc., and it is in the direction of proposing non-payment or short payment of tax, however, the background is that the taxpayer(s) is/are following, or have followed, a prevalent trade practice based on particular interpretation on that issue in the sector/industry. This scenario results in more than one interpretation and likelihood of litigation, change in practice etc.

In such cases, it is desirable that the zonal (Pr.) Chief Commissioner make a self-contained reference to the relevant policy wing of the Board i.e. the GST Policy or TRU. The endeavor, to make such reference before concluding investigation, and as much in advance, as is feasible, of the earliest due date for issuing of show cause notice, may be useful in promoting uniformity or avoiding litigation if the matter, after being processed, is amongst those that also gets placed before the GST Council.”

The Board desires that during the process of audit, wherever the relevant CGST Audit (Pr.) Commissioner comes across the scenario described above, the Zonal (Pr.) Chief Commissioner should follow the procedure and endeavor prescribed by Board in para 2(G) of above Instruction. This applies also to on-going audit proceedings.

 

  • Advisory for furnishing bank account details before filing GSTR-1/IFF Notification No. 38/2023 – Central Tax New Delhi, the 4th of August 2023, Dated Aug 23rd, 2024

 

  1. As per Rule 10A of Central Goods and Services Tax Rules, 2017 notified vide notification no. 31/2019 dated 28.06.2019, a taxpayer is required to furnish details of a valid Bank Account within a period of 30 days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both in FORM GSTR-1or using Invoice Furnishing Facility (IFF), whichever is earlier.
  2. Now, from 1st September 2024 this rule is being enforced. Therefore, for the Tax period August-2024 onwards, the taxpayer will not be able furnish GSTR-01/IFF as the case may be, without furnishing the details of a valid Bank Account in their registration details on GST Portal.
  3. Therefore, all the taxpayers who have not yet furnished the details of a valid Bank Account details are hereby requested to add their bank account information in their registration details by visiting Services > Registration > Amendment of Registration Non – Core Fields tabs on GST Portal.
  4. It is informed that in absence of a valid bank account details in GST registration, you will not be able to file GSTR-1 or IFF as the case may, be from August-2024 return period.
  • Introduction of RCM Liability/ITC Statement Dated Aug 23rd, 2024

 

To assist taxpayers in correctly reporting Reverse Charge Mechanism (RCM) transactions, a new statement called “RCM Liability/ITC Statement” has been introduced on the GST Portal. This statement will enhance accuracy and transparency for RCM transactions by capturing the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding ITC claimed in Table 4A (2) and 4A (3) of GSTR-3B for a return period. This statement will be applicable from tax period August 2024 onwards for monthly filers and from the quarter, July-September-2024 period for quarterly filers.

The RCM Liability/ITC Statement can be accessed using the navigation: Services >> Ledger >> RCM Liability/ITC Statement.

  • Reporting Opening Balance in RCM ITC Statement.
  • RCM ITC opening balance can be reported by following below navigation:

Login >> Report RCM ITC Opening Balance or Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance

  • In case the taxpayers have already paid excess RCM liabilities by declaring the same in Table 3.1(d) of GSTR-3B however he hasn’t availed corresponding ITC through Table 4(A)2 or 4(A)3 of GSTR-3B, due to any reason, in such cases taxpayer need to fill Positive value of such excess paid liability as RCM ITC as opening balance in RCM statement.
  • In case the taxpayers have already availed excess RCM ITC through Table in Table 4(A)2 or 4(A)3 of GSTR-3B however he hasn’t paid corresponding liability by declaring the same in table 3.1(d) of GSTR-3B, in such cases taxpayer will be needed to fill a negative value of such excess claimed ITC as RCM as opening balance in RCM Statement.
  • In case taxpayer need to reclaim the RCM ITC, which was reversed in earlier tax periods through Table 4(B)2 of GSTR-3B, if eligible, he can reclaim such RCM ITC in Table 4A ­(5) of GSTR-3B. Please note that such RCM ITC shall not be reclaimed through Table 4(A)2 and 4(A)3 of GSTR-3B. Such RCM ITC reversal need not to be reported as RCM ITC opening balance.

For Opening Balance pls reconcile till tax Period:

  • Monthly filers: Report the opening balance considering RCM ITC till the July-2024 return period.
  • Quarterly filers: Report the opening balance up to Q1 of FY 2024-25, considering RCM ITC till the April-June 2024 return period.
  • Deadline to declare Opening Balance: Opening balance can be declared till 31.10.2024.
  • Amendments in Opening Balance: Taxpayers can rectify any errors committed while declaring the opening balance on or before 30.11.2024, he shall be provided three opportunities for the same.

This amendment facility shall be discontinued after 30.11.2024.

 

  • Companies (registration of foreign companies) amendment rules, 2024 – amendment in rules 3

 

The Ministry of Corporate Affairs (MCA) issued a notification on 12th August 2024 amending Rule 3 and Rule 8 of the Companies (Registration of Foreign Companies) Rules. These amendments will come into effect from 9th September 2024. Below is a summary of the key changes:

 

  1. Rule 3 sub-rule (3) – A foreign company shall, within a period of thirty days of the establishment of its place of business in India, file with the Registrar, Central Registration Centre in Form FC-1, accompanied by a fee and documents as provided in Section 380 of Companies (Registration offices and Fees) Rules, 2014.

 

  1. Rule 8 sub-rule (1) – Any document which any foreign company is required to deliver to the Registrar shall be delivered to the Registrar having jurisdiction over New Delhi, and references to the Registrar in chapter XXII of the act, i.e., Companies Incorporated outside India, and these rules shall be constructed accordingly.

 

  • Limited Liability Partnership (Amendment) Rules, 2024 introduces the Centre for Processing Accelerated Corporate Exit, effective from 27th August 2024.

 

On August 5, 2024, the Ministry of Corporate Affairs issued a notification amending the Limited Liability Partnership Rules, 2009, under the Limited Liability Partnership Act, 2008. The Limited Liability Partnership (Amendment) Rules, 2024, effective from August 27, 2024, incorporate several changes, particularly to rule 37. The amendments include the introduction of the Centre for Processing Accelerated Corporate Exit, established under a notification dated March 17, 2023. This Centre is now mentioned alongside the Registrar in various sub-rules, specifically in clauses and provisions related to the accelerated exit process of LLPs. The explanation added to sub-rule (1) clarifies the definition and establishment of this Centre. These changes aim to streamline and expedite the corporate exit procedures for LLPs. (Filings under section 124 and section 125 of the Companies Act).

  • Amendment in DIR 3 KYC

 

The Ministry of Corporate Affairs (MCA) has recently issued a notification on 16th July 2024 regarding amendments to the DIR-3 KYC requirements, effective from August 1, 2024, and notified Companies (Appointment and qualification of Directors) Amendment Rules, 2024. This amendment impacts how Directors Identification Number (DIN) holders can update their email IDs and mobile numbers under the Companies Act, 2013.

 

Impact of Amendment: If a Din holder wants to change their email ID or mobile number at any time during the financial year, there are two options:

  1. If they want to make amendments after April 1st until September 30th, they can do so by filing the DIR-3 KYC (without any fees).
  2. If they are making amendments after September 30 or after filing DIR-3 KYC once for that year, then they need to file DIR-3 KYC again along with fees of Rs. 500/-

  • IBBI mandates Registered Valuers to provide a ‘Valuation Report Identification Number’ for each valuation

 

The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular mandating the generation of a Valuation Report Identification Number (VRIN) for each valuation report prepared by Registered Valuers (RVs) or Registered Valuers Entities (RVEs) under the Insolvency and Bankruptcy Code, 2016. This measure aims to ensure the authenticity and traceability of valuation reports.

 

  • SEBI bars stock exchanges/clearing corporations from ties with unregistered security advisors

 

SEBI has notified the Securities Contracts (Regulation) (Stock Exchange and Clearing Corporations) (Fourth Amendment) Regulations, 2024. A new chapter, VIA, regarding restrictions on dealing with unregulated entities has been introduced. It states that no recognised stock exchange or clearing corporation or their agent must have any association with another person who provides advice or any recommendation in respect of security unless the person is registered with or permitted by the Board.

 

  • SEBI amends Intermediaries Regulations; bars intermediaries from associating with unregistered security advisors

 

SEBI has notified SEBI (Intermediaries) (Amendment) Regulations, 2024. A new chapter, IIIA, regarding restrictions on dealing with other entities has been introduced. It states that a person regulated by the Board or agent of such a person must not have any direct or indirect association with another person who provides advice or recommendation directly or indirectly in respect of a security unless a person is registered with or permitted by the Board to provide such advice or recommendation.

 

  • Appointed date for SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2022

According to new modifications, the pre-open session for IPOs will be for a duration of 60 minutes i.e, from 9-10 am, out of which 45 minutes will be allowed for order entry, order modification and order cancellation and 10 minutes for order matching and trade confirmation.

 

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for    the period 31.08.2024.

 

 

Newsletter Aug 2024

Executive Summary

Income Tax

  • Section 10 (23FE) of the income-tax act, 1961 – exemption – income of specified person from an investment made in India – specified sovereign wealth fund.
  • Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority
  • Amendment as per Union Budget 2024 presented on July 23, 2024.

Goods And Service Tax (GST)

  • Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports
  • Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals
  • Refund of tax paid on Inward supply of goods by Canteen Store Department (FORM – GST RFD 10A)
  • Circular no. 228/22/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarifications regarding applicability of GST on certain services
  • Circular no. 229/23/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarification regarding GST rates and classification (goods).
  • Notification no. 3/2024, dated 12-7-2024 – Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – list of CGST exempt goods (nil rated goods)
  • Notification no. 14/2024, dated 10-7-2024 – Central Tax (Section 44 of the Central Goods and Services Tax Act, 2017 – Annual Return – Exemption to registered person from filing annual return whose aggregate turnover in the Financial Year 2023-24 is up to 2 crores
  • Notification no. 15/2024- Central Tax, dated 10-7-2024 section 52 of the Central Goods and Services Tax Act, 2017 – Collection of tax at source – electronic commerce operator to collect 0.25 per cent of net value of intra-state taxable supplies made through it where consideration with respect to such supplies is collected by said operator.
  • Notification no. 4/2024, dated 12-07-2024- Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – CGST exempt services (nil rated services)

Companies Act 2013/ Other Laws

  • Companies (Significant Beneficial Owners) Amendment Rules, 2024
  • (Companies (Management and Administration) Amendment Rules, 2024)
  • (Filings under section 124 and section 125 of the Companies Act)
  • Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024.
  • Companies Nidhi (Amendment) Rules, 2024
  • SEBI amends AIF Regulations, 2012; introduces norms for ‘Migrated Venture Capital Funds
  • Appointed Date for SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2022

 

CBDT Notification No. 33/2023-Income Tax, Dated: 29th May, 2023

  • Section 10 (23FE) of the income-tax act, 1961 – exemption – income of specified person from an investment made in India – specified sovereign wealth fund.
  • Sedction 10(23FE) provides an exemption to sovereign wealth funds and pension funds (specified fund) on their income like dividend, interest, and long-term capital gains arising from investment in infrastructure in India made between 01.04.2020 and 31.03.2024 subject to fulfillment of certain conditions.
  • Through Notification dated 18-7-2024, 31st March 2024 has been substituted with 31st March 2025.

AND

  • The Central Government through Notification No. 93/2024/F. NO. 500/PF12/S10(23FE) FT&TR-II-PART (1), specify the pension fund, namely, AIMCo India Infrastructure Limited as the specified person for the purposes of the said clause in respect of the eligible investment made by it in India on or after the date of publication of this notification in the Official Gazette but on or before the 31st day of March, 2025 subject to the conditions.
  • Violation of any of the conditions shall render the assessee ineligible for the tax exemption.
  • This notification shall come into force from the date of its publication in the Official Gazette.
  • Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority
  • The Central Government notifies ‘Punjab Skill Development Mission Society, Chandigarh’, a Society constituted by Government of Punjab, in respect of the following specified income arising to the said Society, as follows:
  1. Grants and contributions received from Central Government, State Government of Punjab, and other Government institutions
  2. CSR funds received from companies/firms.
  3. Levy of service charges or administrative charges for the schemes/projects.
  4. Interest on bank deposits.
  • This notification shall be effective subject to the conditions that Punjab Skill Development Mission Society, Chandigarh –
  1. shall not engage in any commercial activity
  2. its activities and the nature of the specified income shall remain unchanged throughout the financial years.
  3. shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.
  • This notification shall be deemed to be applicable for AY 21-22 to AY 23-24.

AND

  • The Central Government notifies ‘ Society for Applied Microwave Electronics Engineering & Research (SAMEER)’, a Society constituted by Central Government, in respect of the following specified income arising to the said Society, as follows:
  1. Grants received from Ministry of Electronics and Information Technology
  2. Fees received from test measurement and consultancy services.
  3. Design and development charges for systems/subsystems in RF/Microwave and allied areas.
  4. Revenue from Royalty and transfer of technology.
  5. Miscellaneous income as per Memorandum of Association of the SAMEER
  6. Interest on bank deposits.
  • This notification shall be effective subject to the conditions that Society for Applied Microwave Electronics Engineering & Research (SAMEER), Mumbai –
  1. shall not engage in any commercial activity
  2. its activities and the nature of the specified income shall remain unchanged throughout the financial years.
  3. shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.
  • This notification shall be deemed to be applicable for AY 21-22 to AY 24-25.
  • Amendment in Union Budget
  • Amendment u/s 115BAC

 

The proposed slab as per new regime u/s 115BAC is:

Income (INR)Rate of Tax
Up to Rs. 3,00,000NIL
Rs. 3,00,000 to Rs. 7,00,0005%
Rs. 7,00,000 to Rs. 10,00,00010%
Rs. 10,00,000 to Rs. 12,00,00015%
Rs. 12,00,000 to Rs. 15,00,00020%
More than Rs. 12,00,00030%
  • Additionally, Standard deduction has been increased from Rs. 50,000 to Rs. 75,000 along with family pension will be also allowed. The family pension amount has been amended from Rs. 15,000 to Rs. 20,000.
  • Deduction u/s 80CCD (2) – In case of employee other than Government employee, the contribution rate has been increased to 14% from 10% of employee’s salary.

This is being increased only in the case where the employee’s salary is chargeable to tax under sub-section (1A) of section 115BAC of the Act.

  • Amendment for Foreign Companies

It is proposed to reduce the tax rate from 40% to 35%. The surcharge and Health and Education Cess will remain same.

 

 

  • Amendment in TDS/TCS:

It is proposed to reduce the TDS rate for the following sections:

SectionExisting TDS RateProposed TDS RateWith effect from
Section 194D (Payment of insurance Commission – in case of person other company)5%2%01.04.2025
Section 194DA (Payment in respect of Life Insurance Company)5%2%01.10.2024
Section 194G (Commission etc. on sale of lottery of ticket)5%2%01.10.2024
Section 194H (Payment of Commission or Brokerage)5%2%01.10.2024
Section 194IB (Payment of Rent by certain Individual or HUF)5%2%01.10.2024
Section 194M (Payment of certain sums by certain individuals or Hindu undivided Family)5%2%01.10.2024
Section 194 O (Payment of certain sums by e-commerce operator to e-commerce participant)1%0.1%01.10.2024
Section 194F (Relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India)20%Proposed to be omitted01.10.2024
Section 194T (Insertion of new section – Payments made by Partnership Firm to partner of the firm in the nature of salary, remuneration, bonus, commission and interest to any account (including capital account) and such aggregate payment more than INR 20,000 in FY)0%10%01.10.2024
  • Section 192(B) – Salary

The amendment has been proposed that while computing the TDS deducted by an employer on salary income, the employer shall consider the TCS collected, subject to certain conditions. This amendment shall be applicable from 01.10.2024.

  • Section 194IA – Transfer of Immovable Property

It is proposed to amend the sub section (2) of the section 194-IA of the Act to clarify that where there is more than one transferor or transferee in respect of an immovable property then such consideration shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property. This amendment shall be applicable from 01.10.2024.

  • Excluding sums paid under section 194J from section 194C (Payments to Contractors)
  • Clause (iv) of the Explanation of section 194C defines “work” to specify which all activities would attract TDS under section 194C
  • There is no explicit exclusion of assessee who are required to deduct tax under section 194J from requirement or ability to deduct tax under section 194C of the Act
  • It is proposed to explicitly state that any sum referred to in sub-section (1) of section 194J does not constitute “work” for the purposes of TDS under section 194C.
  • The amendment shall be applicable from 01.10.2024.
  • Increase in the Interest Rate (TCS) – Delay in payment of TCS to government.

It is proposed to increase the interest rate from 1% to 1.5% for every month or part thereof on the amount of TCS from the date such amount collected to the date tax is actually paid.

  • TCS on notified goods (Luxury goods specified by Central Government)

It is proposed to levy TCS u/s 206C(1F) on notified goods of value exceeding Rs. 10 lacs. It will be applicable from 01.01.2025.

  • Filing of correction statement in case of TDS/TCS

TDS/TCS correction statements cannot be filed beyond 6 years after the end of the financial year in which the original statements under section 200 and section 206C were filed.

 

  • Amendment in Capital Gain:
IncomeRate of Tax (For transfer taking place before 23rd July 2024)Rate of Tax (For transfer taking place after 23rd July 2024
Long term capital gain u/s 115E10%12.5%
Long term capital gain u/s 112(1)(c)(iii)10%This clause is not applicable for transfer on or after 23rd July 2024
Long term capital gain u/s 112A10% (exceeding INR 1 lac)12.5% (exceeding INR 1.25 lacs)
Long term capital gain (not being long term capital gain u/s 10 (33)/(36)20%12.5%
Short term capital gain u/s 111A15%20%
Listed Bonds and Debentures20%12.5%

The Indexation has been removed in case of Long-Term Capital Gain from 23 July 2024

  • Holding Period: There will be only two holding periods, 12 months and 24 months, for determining whether the capital gain is short term capital gain or long- term capital gain.
Capital AssetsHolding Period
Listed Securities12 months
All other assets (Other than listed securities)24     Months
  • Section 47: Any gift paid by the company will be subject to Capital Gain Tax. This shall be applied to Assessment year 2025-26 and subsequent years.
  • Amendment in Section 37

Any expenditure incurred to settle proceedings related to legal contraventions, as notified by the Central Government, shall not be allowed as deduction u/s 37.

 

  • Amendment in Section 40(b): Remuneration to partner
ExistingProposed
Book ProfitRemuneration amountBook ProfitRemuneration amount
a)       On the first Rs. 3 lacs of the Book Profit

b)      or in case of Loss

Rs. 1,50,000 or

at the rate of 90% of book profit,

whichever is more

a)       On the first Rs. 6 lacs of the Book Profit

b)      or in case of Loss

Rs. 3,00,000 or at the rate of 90% of book profit,

whichever is more

a)  On the balance amount of Book ProfitAt the rate of 60%a) On the balance amount of Book ProfitAt the rate of 60%
  • Amendment in Section 94B(b): (Restriction on deduction of Interest expense in respect of any debt issued by non-resident, being an associate enterprise of the Borrower).

It is now proposed that the provision of this section shall not apply to finance companies located in IFSC as defined under IFSCA Regulation, 2021, which satisfy such conditions and carry on such activities as may be prescribed. This amendment shall be effective in relation to Assessment Year 2025-26 and subsequent assessment year.

  • Amendment: Buyback of shares

In Budget 2024, it is proposed that sum paid by domestic company for purchase of its own shares shall be treated as dividend in the hands of shareholder, who received payment from such buy-back of shares and shall be charged to income-tax at applicable rates. No deduction for expenses shall be available against such dividend income while determining the income from other sources.

The Cost of acquisition of the shares which have been bought back would generate a capital loss in the hands of the shareholder as these assets have been extinguished. Therefore, when the shareholder has any other capital gain from the sale of shares or otherwise subsequently, he would be entitled to claim his original cost of acquisition of all the shares.

 

GST

  • Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports

GST Council has approved that application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports may also be processed by Tax Administration.

Accordingly, Notification No. 12/2024 Central Tax dt. 10 July 2024 has also been issued. GSTN is in the process of development of a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports.

 

However, till the time such separate category for claiming refund of additional amount of IGST paid is developed on the common portal, such exporter(s) may claim refund of the additional IGST by filing an application of refund in FORM GST RFD-01 under the category “Any other” with remarks “Refund of additional IGST paid on account of increase in price subsequent to export of goods” and uploading of Statement 9A & 9B (Refer to Notification No. 12/2024-Central Tax dt. 10 July 2024) along with the relevant documents as specified in the Circular 226/20/2024-GST dated. 11.07.2024.

 

The Refund application filed under this category will be processed by the officer based on the documentary proof submitted by the refund applicant. The list of documents which are required to be accompanied with the refund claim are also mentioned in Para 6 of the said Circular.

 

  • Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals

GSTN wish to inform that NIC is releasing the integrated services from e-invoice-1 and e-invoice-2 portals on 18 July 2024 on sandbox portals and 01 Aug 2024 on the production portals. These portals run in parallel and now allow for seamless inter-operations. The highlights of the portal are as follows:

  1. Both the portals (NIC-IRP 1 & 2) provide the web and API modes for e-invoice related services.
  2. The taxpayers can use the same login credentials to operate e-invoice1 and e-invoice-2 portals.
  • In the case of API, the same token can be used for the services of e-invoices and e-waybills on both the portals.
  1. The taxpayers can use the e-invoice-2 portal during technical glitches in e-invoice main portal or any other exigencies.
  2. The Criss-Cross operations of printing, downloading and cancelling can be carried out on these portals. That is, printing, downloading and cancelling of e-invoices of portal 1 can be done at portal 2 and vice versa.
  3. In case e-invoice-1 is non-operational because of technical reasons, then the e-invoice-2 portal can be used for all the services of the e-invoices.
  • Please visit the sandbox portal (einv-apisandbox.nic.in) for URLs of APIs and other details.
  • Please test all the APIs in the sandbox environment before rolling on the production environment.
  1. In addition to NIC-IRP, four other e-invoice portals are operated for the convenience of the taxpayer. The users can avail similar e-invoicing services on IRP-3/IRP-4/IRP-5 and IRP-6 portals also.

 

  • Refund of tax paid on Inward supply of goods by Canteen Store Department (FORM – GST RFD 10A)

In reference to Circular No. 227/21/2024-GST issued by GST policy wing, CBIC on 11 July for online processing of refund applications filed by Canteen Stores Department (CSD), GSTN has developed an online functionality to enable CSDs to file an application for refund in FORM GST RFD-10A in GST common portal.

The pre-requisites & relevant date for filing refund application under this category are mentioned in Para 4, 5 & 6 of the said Circular. The applicants are advised to refer to the same for details in this regard.

 

The process to be followed for filing refund application under the said category is as below:

  1. Login into the GST portal. Click on Services -> Refund -> Application for Refund.
  2. Select “Refund of tax paid on Inward supply of goods by Canteen Store Department (CSD)”.
  3. Select Period for which refund is to be applied, by selecting from & To Period and then clicking on “Create Refund” application.
  4. The refund applications on GST portal are to be filed sequentially with respect to tax periods. If there is no refund to be claimed for a particular period, CSD needs to file a NIL refund claim for that period. Once a refund is filed or NIL refund claim is filed for a particular period, the system will not allow filing for the same period again. Similarly, it will not allow the taxpayer to file for any previous periods.
  5. In the GST portal, the Select Period is available from July 2017. If a taxpayer has already filed manual refund claims for the earlier periods or no refund claim is required to be filed for the earlier periods, they are advised to file NIL refund claim for such earlier periods.
  6. The details of invoices for which a refund is to be claimed shall be uploaded in the Statement. After successful validation of the statement, click on the Proceed button.
  7. The total tax paid on Inward supply of goods will be auto populated. Enter the value of IGST, CGST and SGST in “Total Refund applied for” table.
  8. While filing refund application, the applicant has to Select the “Bank Account number” in which the refund is to be disbursed.
  9. Before submitting the refund application, the applicant can Save & Preview the refund application. If any correction/addition or rectification is to be done in the refund application, it can be done only before submission. Once the application is submitted using the Submit button, the system will not allow any change in the refund application.

 

  • Circular no. 228/22/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarifications regarding applicability of GST on certain services

 

In exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017 and on the recommendations of the 53rd GST Council in its meeting held on 22 June 2024, at New Delhi, clarifications, related to the following issues are being issued through this circular: —

  1. GST exemption on the outward supplies made by the Ministry of Railways (Indian Railways).
  2. GST exemption on the transactions between Special Purpose Vehicles (SPVs) and Ministry of Railways (Indian Railways).
  • Applicability of GST on the statutory collections made by the Real Estate Regulatory Authority (RERA) in accordance with the Real Estate (Regulation and Development) Act, 2016.
  1. Applicability of GST on the incentive amount shared by acquiring bank with other stakeholders in the digital payment ecosystem under the notified Incentive Scheme for promotion of Ru Pay with Debit Cards and low value BHIM-UPI transactions.
  2. GST liability on the reinsurance of specified general and life insurance schemes.
  3. GST liability on the reinsurance of insurance schemes for which total premium is paid by the Government.
  • Applicability of GST on retrocession services.
  • GST Liability on certain accommodation services.

 

  • Circular no. 229/23/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarification regarding GST rates and classification (goods).

Based on the recommendations of the GST Council in its 53rd meeting held on 22nd June 2024, at New Delhi, in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, clarifications on the following issues are being issued through this Circular as under: —

Clarification regarding GST rate on Solar Cookers:

  1. Representations have been received seeking clarification regarding appropriate classification and applicable GST rate on supply of solar cookers that work on dual energy source.
  2. On the recommendations of GST Council, it is hereby clarified that solar cookers that work on dual energy of solar energy and grid electricity are appropriately classifiable under heading 8516 and already attract a GST rate of 12% vide SI. No. 201A of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated the 28th of June 2017.

Clarification regarding GST rate on Fire Water Sprinklers:

  1. Representations have been received seeking clarification as to whether the existing entry covering sprinkles at 12% GST rate also cover Fire Water Sprinklers.
  2. On the recommendations of the Council, it is hereby clarified that all types of sprinklers, including fire water sprinklers attract GST at the rate of 12% vide SI. No. 195 B of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated the 28of June 2017.
  3. Further, on the basis of the recommendation of the GST Council, in view of the prevailing genuine doubts, the issues for the past period are regularized on “as is where is basis”.

Clarification regarding GST rate on parts of Poultry-keeping machinery:

  1. Representations have been received seeking clarification regarding appropriate classification and applicable GST rate on supply of ‘parts’ of Poultry-keeping machinery.
  2. Parts of Poultry-keeping machinery are classifiable under tariff item 8436 91 00 and attract GST at the rate of 12% vide Sl. No. 199 of Schedule II of Notification No. 1/2017-Central Tax (Rate), dated the 28 June 2017. On the recommendations of the Council, to bring clarity on the issue, the relevant entry at Sl. No. 199 of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated the 28 June 2017, has been amended vide Notification No. 2/2024-Central Tax (Rate), dated the 12 July 2024 to specifically include ‘parts’ of Poultry-keeping machinery.
  3. Further, on the basis of the recommendation of the GST Council, in view of the prevailing genuine doubts, the issues for the past period are regularized on “as is where is basis”.

Clarification regarding the scope of expression ‘pre-packaged and labelled’ for supply of agricultural farm produce:

  1. Representations have been received seeking clarification regarding the scope of expression ‘pre-packaged and labelled’ for the purposes of levy of GST on supply of agricultural farm produce in view of amendment made in Legal Metrology (Packaged Commodities) Rules, 2011.
  2. On the basis of the recommendation of the GST Council, the definition of ‘pre-packaged and labelled’ in Notification No. 1/2017-Central Tax (Rate) and Notification No. 2/2017-Central Tax (Rate), both dated the 28 June 2017, has been amended vide Notification No. 2/2024-Central Tax (Rate) dated 12 July 2024 and Notification No. 3/2024-Central Tax (Rate) dated 12 July, 2024, respectively, to exclude the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre from the scope of ‘pre-packaged and labelled’. Consequently, supply of agricultural farm produce in package (s) containing quantity of more than 25 kilogram or 25 litre will not attract GST levy of 5%.
  3. Further, on the basis of the recommendation of the GST Council, in view of the prevailing genuine doubts, the issues for the past period are hereby regularized on “as is where is” basis.

Clarification regarding supplies of goods made to or by agency engaged by Government

  1. Prior to 17 July 2022, supplies of pulses and cereals attracted GST at rate of 5%, wherein the said goods were put up in a unit container and bearing a registered brand name and/or bearing a brand name on which an actionable claim or enforceable right in a court of law is available.
  2. On the basis of the recommendation of the GST Council, in view of the genuine interpretational issues, the issues for the past period from 1-7-2017 up to 17-7-2022 are hereby regularized on “as is where is” basis for supplies made to or by any agency engaged by Union Government or State Government/Union Territory for procurement and sale of such goods under any programme/scheme duly approved by the Central Government or any State Government intended to distribute such goods at free of cost or at subsidized rate to the eligible beneficiaries like economically weaker sections of the society subject to following conditions, namely:–

– the concerned supplier furnishes a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory concerned recommending that supplies have been made to or by an agency engaged by Union Government or State Government/Union Territory for procurement and sale of such goods under any programme/scheme duly approved by the Central Government or any State Government intended to distribute such goods at free of cost or at subsidized rate to the eligible beneficiaries like economically weaker sections of the society, within a period of 180 days from the date of issuance of this Circular to the jurisdictional commissioner of the Central Tax or jurisdictional commissioner of the State Tax, or jurisdictional officer of the Union Territory Tax, as the case maybe; and

– Input Tax Credit shall not be allowed on such inputs and, if availed on such inputs, it shall be reversed within a period of 180 days from the date of issuance of this Circular, if the supplier intends to take the benefit under the proposed regularisation.

Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board.

 

  • Notification no. 3/2024, dated 12-7-2024 – Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – list of CGST exempt goods (nil rated goods)
  1. In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28 June, 2017, namely:-

In the said notification, after the Schedule, in the Explanation, in clause (ii), after the entries relating thereto, the following proviso shall be inserted, namely:

“Provided that notwithstanding anything contained in the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder, as amended from time to time, the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litres shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’.”

  1. This notification shall come into force from the 15 July 2024.

 

  • Notification no. 14/2024, dated 10-7-2024 – Central Tax (Section 44 of the Central Goods and Services Tax Act, 2017 – Annual Return – Exemption to registered person from filing annual return whose aggregate turnover in the Financial Year 2023-24 is up to 2 crores

In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2023-24 is up to two crore rupees, from filing annual return for the said financial year

 

  • Notification no. 15/2024- Central Tax, dated 10-7-2024 section 52 of the Central Goods and Services Tax Act, 2017 – Collection of tax at source – electronic commerce operator to collect 0.25 per cent of net value of intra-state taxable supplies made through it where consideration with respect to such supplies is collected by said operator

 

  1. In exercise of the powers conferred by sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 52/2018-Central Tax, dated the 20th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 900(E), dated the 20 September, 2018, namely:-In the said notification, for the words “half per cent.”, the figure and word “0.25 per cent.” shall be substituted.
  2. This notification shall come into force from the date of its publication in official gazette.

 

 

  • Notification no. 4/2024, dated 12-07-2024- Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – CGST exempt services (nil rated services)

As per  No. 12/2017-Central Tax (Rate), dated the 28 June 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely: —

In the said notification, after serial number 12 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

  • Supply of accommodation services having value of supply less than or equal to twenty thousand rupees per person per month provided that the accommodation service is supplied for a minimum continuous period of ninety days.

This notification shall come into force with effect from the 15 July 2024.

 

  • Companies (Significant Beneficial Owners) Amendment Rules, 2024

 

Ministry of Corporate Affairs has amended the Companies (Significant Beneficial Owners) Rules, 2018 wherein Form No BEN-2 (Return to the Registrar in respect of declaration under section 90) has been substituted as specified therein and such rules shall be called Companies (Significant Beneficial Owners) Amendment Rules, 2024.

 

  • (Companies (Management and Administration) Amendment Rules, 2024)

 

Ministry of Corporate Affairs has amended the Companies (Management and Administration) Rules, 2014 wherein Form No MGT-6 (Return to the Registrar in respect of declaration under section 89 received by company) has been subsituted as specified therein and such rules shall be called Companies (Management and Administration) Amendment Rules, 2024.

 

  • (Filings under section 124 and section 125 of the Companies Act)

 

The Ministry of Corporate Affairs (MCA) has notified waiver for making compliances thereof, additional fee on filing of various IEPF e-forms (IEPF -1, IEPF-1A, IEPF-2, IEPF-4) and e- verification of claims filed in e-form IEPF-5, till 16 August 2024. Also, one time relaxation for filing of e-verification under third proviso to sub-rule (3) of rule 7 of IEPFA (Accounting, Audit, Transfer and Refund) Rules has also been provided till 16 August 2024.

 

  • Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024.

 

The amendment provides that if a director intends to update his personal mobile number or email address again at any time during the financial, he shall update the same by submitting e-form DIR-3 KYC on payment of fees of five hundred rupees.

They shall come into force from the 01 August 2024.

 

  • Companies Nidhi (Amendment) Rules, 2024

 

The Ministry of Corporate Affairs on 16 July 2024 has issued the Nidhi (Amendment) Rules, 2024. They shall come into force immediately. The amendment mandates that a company shall not use the words “Nidhi Limited” in its name unless it is declared as a Nidhi company under sub-section (1) of section 406 of the Companies Act, 2013.

 

  • SEBI amends AIF Regulations, 2012; introduces norms for ‘Migrated Venture Capital Funds

 

Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Alternative Investment Funds) (Third Amendment) Regulations, 2024, which amend the existing regulations for Alternative Investment Funds (AIFs). The amendment introduces a new category called “migrated venture capital fund” for funds previously registered under the Venture Capital Funds Regulations, 1996. It provides guidelines for the registration, operation, and reporting requirements for these migrated funds. Key changes include new definitions, eligibility criteria, private placement restrictions, and investment conditions. The regulations also address the procedures for fund registration and the prohibition on public solicitations for subscriptions. These amendments are effective from the date of their publication in the Official Gazette.

 

  • Appointed date for SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2022

According to new modifications, the pre-open session for IPOs will be for a duration of 60 minutes i.e, from 9-10 am, out of which 45 minutes will be allowed for order entry, order modification and order cancellation and 10 minutes for order matching and trade confirmation.

 

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for    the period 27.07.2024.

Executive Summary

Income Tax

  • Section 10(46) Of the Income-Tax Act, 1961-Exemptions–Statutory body/Authority/Board /Commission – Notified Body or Authority.
  • Amendment in Form No. 27Q.
  • Special provision for collection of Tax at Source for Non-Filer of Income Tax Returns u/s 206CCA
  • Special provision for Deduction of Tax at Source for Non-Filer of Income Tax Return u/s 206AB

 

Goods And Service Tax (GST)

  • Filing of information by manufacturers of Pan Masala and Tobacco taxpayers

 

Companies Act 2013/ Other Laws

  • Clarification Regarding Notification Pertaining to Restricting Import of Specific Items

 

  • Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees Recommendation Guidelines 2024
  • SEBI amends Insider Trading norms, mandates Compliance Officer to approve/reject trading plan within 2 days of receipt
  • SEBI modifies duration for call auction in pre-open session for IPOs and relisted scrips

 

Income Tax

Section 10(46) of the Income Tax Act, 1961- Exemption- Statutory body/ Authority/ Board/ Commission – Notified Body or Authority.

  • The Central Government hereby notifies the Mathura Vrindavan Development Authority, an authority constituted under the Uttar Pradesh Urban Planning Development Act, 1973 (President’s Act 11 of 1973), for the purposes of the (46) clause of Section 10.

 

  • This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Urban Planning Development Act, 1973 with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act

 

AND

 

  • The Central Government hereby notifies for the purposes of the said clause, ‘Real Estate Appellate Tribunal, Punjab’ (PAN AAALR2230D), a body constituted by the Government of Punjab, in respect of the following specified income arising to that body, namely: —
  1. Levy of fees/charges/fines collected under The Real Estate (Regulation and Development) Act, 2016 (Central Act No. 16 of 2016) and Punjab State Real Estate (Regulation and Development) Rules, 2017.
  2. Government Grants
  3. Interest on Bank Deposits
  • This notification shall be effective subject to the conditions that Real Estate Appellate Tribunal, Punjab –
  1. shall not engage in any commercial activity
  2. its activities and the nature of the specified income shall remain unchanged throughout the financial years
  3. shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
  • This notification shall be deemed to be applicable for Assessment Year 2023-2024 to Assessment Year 2027-2028.
  • Amendment in Form 27Q

 

In exercise of the powers conferred by section 295, read with sub-section (3) of section 200 of the Income-tax Act, 1961, The Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: –

  • These rules may be called the Income-tax (Sixth Amendment) Rules, 2024.
  • They shall come into force on the 1st day of July 2024.

In the Income-tax Rules, 1962, the following note shall be inserted in Form No. 27Q in the Annexure, under the heading “Verification” in the Notes, after Note No. 7 ––

  • ‘7A. Write “P” if lower deduction or no deduction is in view of notification issued under sub-section (1F) of section 197A.’.
  • Special provision for Collection of Tax at Source for Non-Filer of Income Tax Returns u/s 206CCA

 

  • Through Notification No. 46/2024/F.NO. 370142/8/2024-TPL dated 27.05.2024, Central Government notifies Reserve Bank of India to be a specified person to whom higher collection of Tax at Source will not be applicable as per Clause (ii) of the proviso to sub section (3) of Section 206CCA of Income Tax Act.
  • This notification shall come into force from the date of its publication in the Official Gazette.

 

 

  • Special provision for Deduction of Tax at Source for Non-Filer of Income Tax Returns u/s 206AB
  • Through Notification No. 46/2024/F.NO. 370142/8/2024-TPL dated 27.05.2024, Central Government notifies Reserve Bank of India to be a specified person to whom higher collection of Tax at Source will not be applicable as per Clause (ii) of the proviso to sub section (3) of Section 206AB of Income Tax Act.
  • This notification shall come into force from the date of its publication in the Official Gazette.

 

Extension of due date for Filing of Form 10F by Non-Resident having no PAN in India.

GSTFiling of information by manufacturers of Pan Masala and Tobacco taxpayers

Referring to the Notification No. 04/2024 – Central Tax dated 05-01-2024 to seek information from taxpayers dealing in the goods mentioned therein. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to the registration and disposal of machines while the latter asks for information on inputs and outputs for a month.

Form GST SRM-I meant for registration of machines, has already been made available on the portal w.e.f. 15-05-2024. Concerned taxpayers are using the same for the registration of machines and other information asked therein.

Now, the second form namely, Form GST SRM-II is also available on the portal.  Taxpayers dealing in the manufacture of Pan Masala and Tobacco products can now report the details of inputs and outputs procured and consumed for the relevant month.

 

MONTHLY NEWS & UPDATES FOR FEBRUARY 2024

  • Clarification Regarding Notification Pertaining to Restricting Import of Specific Items

 

Directorate General of Foreign Trade has issued a policy circular for clarification regarding Notification No. 17/2024-25 dated June 11, 2024 pertaining to restricting import of specific items under ITC (HS) Codes 71131912, 71131913, 71131914, 71131915 and 71131960, Representations have been received from SEZ wherein it is clarified that import made by SEZ units (Other than FTWZ units) under the ITC (HS) Codes 71131912, 71131913, 71131914, 71131915 and 71131960 are outside the purview of this notification.

 

    Insolvency and Bankruptcy Code

 

  • Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees Recommendation Guidelines 2024

 

Insolvency and Bankruptcy Board of India has issued guidelines to provide the procedure for preparing panel of Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees:

  1. These guidelines may be called the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2024
  2. The panel of IPs prepared as per these guidelines will be effective from 1st July 2024 to 31st December 2024.

 

Compliance Calendar - February 2024

  • SEBI amends Insider Trading norms, mandates Compliance Officer to approve/reject trading plan within 2 days of receipt

 

SEBI has notified the SEBI (Prohibition of Insider Trading) (Second Amendment) Regulations, 2024. As per the amended norms, the compliance officer must approve or reject the trading plan within 2 trading days of receiving it. Further, the compliance officer must notify the approved plan to the stock exchanges on which the securities are listed, on the day of approval. These regulations are effective from the 90th day of publication in the Official Gazette.

 

  • SEBI modifies duration for call auction in pre-open session for IPOs and relisted scrips

 

According to new modifications, the pre-open session for IPOs will be for a duration of 60 minutes i.e, from 9-10 am, out of which 45 minutes will be allowed for order entry, order modification and order cancellation and 10 minutes for order matching and trade confirmation.

 

Extension of due date for Filing of Form 10F by Non-Resident having no PAN in India.

Disclaimer: Information in this note is intended to provide only a general update on the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for   the period 01.06.2024 to 30.06.2024

 

 

Executive Summary

Income Tax

  • Cost inflation Index (CII) under section 48 for financial year 2024-25
  • Exemption under section 10 (46) of Income of Tamil Nadu Water Supply and Drainage Board subject to few conditions.
  • CBDT releases new functionality in AIS For Taxpayers.
  • CBDT issues guidelines for compulsory selection of Income-tax Returns (ITRs) for complete scrutiny during FY 2024-25

 

Goods And Service Tax (GST)

  • Advisory on launch of E-Way Bill 2 Portal
  • Information from manufacturers of Pan Masala and Tobacco taxpayer

 

Companies Act 2013/ Other Laws

  • Relaxation of Additional Fees and Extension of Last Date of Filing of Form No. LLP BEN 2 and LLP Form No. 4D under the Limited Liability Partnership Act, 2008
  • RBI decides to regularize prior issuance of partly paid units by AIFs to non-residents via compounding under FEMA
  • SEBI strengthens risk management framework for Clearing Corporations (CCs);
  • SEBI updates Investor Charter for stock exchanges and depositories to include new services and guidelines
  • Master Circular for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper

Income Tax

Income Tax

  • Cost inflation Index under section 48 For Financial Year 2024-25
  • In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961, the Central Government hereby makes the following further amendments in the notification published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) number O. 1790(E), dated the 5th June, 2017, namely: —
  • In the said notification, in the Table, after serial number 23 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

 

TABLE

 

Sl. No.Financial YearCost Inflation Index
(1)(2)(3)
“242024-25363″

 

  • This notification shall come into force with effect from the assessment year 2025-26 and subsequent assessment years.

 

  • Exemption under section 10 (46) of Income of Tamil Nadu Water Supply and Drainage Board subject to few conditions.

 

  • In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Tamil Nadu Water Supply and Drainage Board, Chennai’ (PAN: AAALT0834F), a Board constituted under the Tamil Nadu Water Supply and Drainage Board Act, 1970 (Tamil Nadu Act of 1971), in respect of the following specified income arising to the said Board, namely: —
  • Water charges for supply of water to recover the maintenance cost.
  • Centage charges received from local bodies work like water supply scheme and sewerage scheme to compensate for establishment charges.
  • Investigation and Detailed Project Report preparation charges for water supply and drainage scheme for establishment charges.
  • Interest earned on Bank Deposits.
  • This notification shall be effective subject to the conditions that Tamil Nadu Water Supply and Drainage Board, Chennai-

 

  • shall not engage in any commercial activity.
  • its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); and
  • shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
  • This notification shall be applicable from AY 2024-25 to AY 2028-29.

 

  • CBDT Releases new functionality in AIS For Taxpayers

In AIS, taxpayers have been provided with a functionality to furnish feedback on every transaction displayed therein. This feedback helps the taxpayer to comment on the accuracy of the information provided by the Source of such information. In case of wrong reporting, the same is taken up with the Source for their confirmation, in an automated manner. It may be noted that information confirmation is currently made functional with regard to information furnished by Tax Deductors /Collectors and Reporting Entities.

 

The Central Board of Direct Taxes (CBDT) has now rolled out a new functionality in AIS to display the status of information confirmation process. This will display whether the feedback of the taxpayer has been acted upon by the Source, by either partially or fully accepting or rejecting the same. In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the Source. The following attributes shall be visible to the taxpayer for status of Feedback confirmation from Source.

  • Whether Feedback is shared for confirmation: – This will let the taxpayer know if the feedback has been shared with the Reporting Source for confirmation or not.
  • Feedback Shared on: – This will let the taxpayer know the date on which the feedback has been shared with the Reporting Source for confirmation.
  • Source responded on: – This will let the taxpayer know the date on which the Reporting Source has responded on the feedback shared with it for confirmation.
  • Source response: – This will let the taxpayer know the response provided by the Source on the taxpayer’s feedback.

 

  • The CBDT has issued parameters and procedures for compulsory selection of ITRs during FY 2024-25, in below cases.

 

  • Cases pertaining to Survey u/s 133A of the Income-tax Act
  • Cases pertaining to Search & Seizure
  • Cases in which notice u/s 142(1) of the Income-tax Act has been issued, but no ITR has been furnished
  • Cases in which notice u/s 148 has been issued,
  • Cases relating to to registration / approval of charitable trusts / institutions claiming tax exemption
  • Cases involving addition in an earlier Assessment Year on a recurring issue of law / fact
  • Cases relating to specific information regarding tax evasion

 

Goods and Services Tax

GST

  • Advisory on launch of E0way Bill 2 Portal:

GSTN is pleased to inform that NIC is releasing the E-Way Bill 2 Portal (https://ewaybill2.gst.gov.in) on 1st June 2024. This portal ensures high availability and runs in parallel to the e-way Bill main portal. The e-way bill 2 portal synchronizes the e-way bill details with main portal within a few seconds. The highlights of the portal are as follows-:

  • Presently, E-Way Bill 2 Portal provides the critical services of E-Way Bill system, and gradually it will be extended with other services of e-way bill system.
  • E-Way Bills can be generated and updated on the E-Way Bill 2 Portal independently.
  • E-Way Bill 2 portal provides the web and API modes of operations for e-way bill services.
  • The taxpayers and logistic operators can use the E-Way Bill 2 portal with the login credentials of the main portal.
  • The taxpayers and logistic operators can use the E-Way Bill 2 portal during technical glitches in e-way bill main portal or any other exigencies.
  • The Criss-Cross operations of printing and updating of Part-B of E-Way Bills can be carried out on these portals. That is, updating of Part-B of the E-Way bills of portal 1 can be done at portal 2 and vice versa.
  • In case E-Way Bill main portal is non-operational because of technical reasons, the Part-B can be updated to the E-Way Bills, generated at Portal 1, at portal 2 and carry both the E-way Bill slips.
  • For further details, please visit the e-way bill portals.

 

  • Information from manufacturers of Pan Masala and Tobacco taxpayers:

The government had issued a notification to seek information from taxpayers dealing in the goods mentioned therein vide Notification No. 04/2024 – Central Tax dated 05-01-2024. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to registration and disposal of machines while the later asks information on inputs and outputs during a month.

To begin with, facility to register the machines have been made available on the GST Portal to file the information in Form GST SRM-I. All taxpayers dealing in the items mentioned in the said notification may use the facility to file the information about machines. Form GST SRM-II will also be made available on the portal shortly.

 

MONTHLY NEWS & UPDATES FOR FEBRUARY 2024

  • Relaxation of additional fees and extension of last date of Filing of Form No. LLP Ben 2 and LLP form no. 4D under The Limited Liability Partnership Act, 2008

The Ministry of Corporate Affairs (MCA) has notifed that relaxation of additional fees and extension of last date of filing of Form No. LLP BEN-2 and LLP Form No. 4 under the Limited Liability Partnership Act, 2008 in the view of transition of MCA-21 from version- to version-3. These forms shall be filed without any addition fees upto July 01, 2024.

 

MONTHLY NEWS & UPDATES FOR FEBRUARY 2024

  • RBI decides to regularize prior issuance of partly paid units by AIFs to non-residents via compounding under FEMA

The Reserve Bank of India (“RBI”) vide its circular dated May 21, 2024 (“Circular”) has required that issuance of partly paid-up units by Alternative Investment Funds (“AIFs”) to foreign investors prior to March 14, 2024, should be regularised through compounding under Foreign Exchange Management Act, 1999 (“FEMA”). Compounding by RBI is prescribed for the contravention of foreign exchange regulations as per Foreign Exchange (Compounding Proceedings) Rules, 2000, and involve payment of a fees. In many instances, compounding requires payment of a monetary penalty to RBI.

 

Compliance Calendar - February 2024

  • SEBI strengthens risk management framework for Clearing Corporations (CCs)

SEBI has reviewed the existing collaterals accepted by CCs and specified the prudential norms for exposure of CCs. As per the amended norms units of growth plan of overnight mutual fund schemes shall be accepted as Cash Equivalent by CCs with a haircut of 5%. Earlier, a limit of 10% was specified. The 10% haircut remains unchanged for other overnight mutual fund plans. Further, the Prudential Norms for Exposure of CCs has also been specified. The circular shall be effective from 01st Aug, 2024.

 

  • SEBI updates Investor Charter for stock exchanges and depositories to include new services and guidelines

In November 2021, SEBI formulated the Investor Charter for Depositories/ Depository Participants (DPs) and Stock exchanges. It contains information on services provided to investors, such as grievance redressal mechanisms, rights and obligations of investors, etc. With the recent introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 by SEBI, the Investor Charter has been updated to incorporate these new services.

 

  • Master Circular for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper

The Securities and Exchange Board of India has consolidated all the applicable circulars/ directions at one place which are applicable for for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper, till May 21, 2024.

 

Monthly Compliance Calendar

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for    the period 30.05.2024.

 

 

Executive Summary

Income Tax

  • Clarification on Time Limit for verification of return of income after uploading.
  • Notification of Donations to certain funds, charitable institutions, etc under Section 80G of Income Tax Act, 1961
  • Partial Modification of Circular No. 3 Of 2023, Dated 28-3-2023 regarding consequences of PAN becoming inoperative as per Rule 114AAA of the Income-Tax Rules, 1962
  • Section 10(46) of The Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority
  • Extension of Due Date for filing of Form 10A/10AB.

Goods And Service Tax (GST)

  1. Advisory Self Enablement For E-Invoicing
  2. Advisory on Reset and Re-filing of GSTR-3B of some taxpayers
  3. Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1
  4. Section 148 of the Central Goods and Services Tax Act, 2017 – Special Procedure for certain processes – Special Procedure to be followed by Registered Person engaged in manufacturing Notified Goods

Companies Act 2013/ Other Laws

  1. RBI issues revised master circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)

 

  1. SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period’.

 

  1. SEBI has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders.

Income Tax

Income Tax

  • Clarification Time limit for verification of return of Income after uploading.
  1. The notification was issued by the DGIT(Systems) specifying the time limit for verification of Income Tax Return (ITR) as 30 days from the date of transmitting the data of ITR electronically.

It is clarified that:

  • Where the return of income is uploaded and e-verification/ITR-V is submitted within 30 days of uploading – In such cases the date of uploading the return of income shall be considered as the date of furnishing the return of income.
    • Where the return of is uploaded but e-verification or ITR-V is submitted after 30 days of uploading – In such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow, as applicable.
    1. The duly verifed ITR-V in prescribed format and in the prescribed manner shall be sent either through ordinary or speed post or in any other mode to the following address only:

    Centralised Processing Centre,

    Income Tax Department,

    Bengaluru – 560500, Karnataka.

    1. The date on which the duly verified ITR-V is received at CPC shall be considered for the purpose of determination of the 30 days period from the date of uploading of return of income.

     

     

    1. It is further clarified that where the return of income is not verified within 30 days from the date of uploading or till the due date for furnishing the return of income as per the Income-tax Act, 1961 – whichever is later – such return shall be treated as invalid due to non-verification.
    2. This notification will come into effect from 1-4-2024.
    • Section 80G of Income Tax Act, 1961- Deductions- Donations to certain funds, charitable institutions, etc.

    In the exercise of the powers conferred by clause (b) of sub-section (2) of section 80G of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies “Shree Ramanuj Kot Laxmi Venkatesh Mandir” managed by Shree Ramanuj Kot Trust, Indore, Madhya Pradesh (PAN: AAATR0970L) to be place of historic importance and a place of public worship of renown throughout the state of Madhya Pradesh for the purposes of the said section.

     

    The Notification will be valid only for the renovation or repair of the “Shree Ramanuj Kot Laxmi Venkatesh Mandir” to the extent of Rs. 1,63,06,311/-(Rupees One Crore Sixty-Three Lakhs Six Thousand Three Hundred and Eleven only) and will cease to be effective after the said amount has been collected or on 31-3-2029, whichever is earlier

    • Partial Modification of Circular No. 3 of 2023, Dated 28-03-2023 in regard to consequences of PAN become in operative as per Rule 114AAA of the Income Tax Rules

    In partial modification and in continuation of circular no. 3 of 2023 hereby specifies that for the transactions entered into upto 31-03-2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31-05-2024, there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC, as the case maybe, and the deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.

     

    • Section 10(46) of The Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority
    1. In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam’ (PAN: AAATK3080E), a Board constituted by the Government of Kerala, in respect of the following specified income arising to the said Authority, namely: —
    • Grant received from the State Government of Kerala.
    • Contribution received from the workers registered as members in the Scheme.
    • Contribution received from self-employed persons and employers for workers, registering as members of the Scheme.
    • Registration Fees
    • Interest earned on Bank Deposits.
    1. This notification shall be effective subject to the conditions that Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam, –
    • shall not engage in any commercial activity.
    • activities and the nature of the specified income shall remain unchanged throughout the financial years.
    • shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
    1. This notification shall be applied from assessment year 2024-25 to 2028-29.
    • Extension of Due Date for filing of Form 10A/10AB.

    CBDT extends the due date for filing of Form 10A/10AB under the Income Tax Act, 1961 up to 30th June 2024 in respect of certain provisions of section 10(23C)/ section 12A/ section 80G/ and section 35 of the Act.

Goods and Services Tax

GST

 

  • Self-Enablement For E- Invoicing:

 

The Central Government, on the recommendations of the Council, introduced that if your turnover exceeds INR 5 crores in the financial year 2023-2024, you will be required to start e-Invoicing from the next financial year, i.e., from 1st April 2024 onwards. It may also be noted that the same is applicable if the threshold is crossed in any of the proceeding financial years too.

 

For those who meet the notification criteria but have not yet been enabled on the portal, you can self-enable for e-Invoicing by visiting https://einvoice.gst.gov.in and start reporting through any of the 4 new Invoice Registration Portals (IRPs) – from e-Invoice IRP 3 to e-Invoice IRP 6.

 

  • Reset and Re-filing of GSTR-3B of some taxpayers:

This has reference to the facility for re-filing of GSTR-3B for some of the taxpayers. It was noticed that there were discrepancies in the returns of some taxpayers during the filing process between the saved data in the GST system and filed data in the fields of ITC availment and payment of tax liabilities. The matter was examined and deliberated by the Grievance Redressal Committee of the GST Council and as a facilitation measure the Committee decided that these returns shall be reset, to give opportunity to such taxpayers to correct the discrepancy.

Accordingly, only the affected taxpayers have been communicated on their registered email-ids and the affected returns are visible on their respective dashboards for the purpose of refiling with the correct data. The taxpayers who have received such communication are requested to visit their dashboard and re-file their GSTR-3B within 15 days of receipt of such communication.

 

 

 

  • Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1

There is a new feature to auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data. The HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Before its submission, kindly ensure to reconcile the data with records.

Any discrepancies or errors should be manually corrected or added to Table 12 before final submission.

 

  • Section 148 of the Central Goods and Services Tax Act, 2017 – Special Procedure for certain processes – Special Procedure to be followed by Registered Person engaged in manufacturing Notified Goods

In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017, the Central Government, on the recommendations of the Council, hereby makes the following amendments in the Notification No. 4/2024-Central Tax, dated the 5th January, 2024 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), namely: —

 

In the said notification, in para 4, for the words and letters “1st day of April, 2024”, the words and letters “15th day of May, 2024” shall be substituted.

 

This notification shall come into force from the 1st day of April 2024.

 

MONTHLY NEWS & UPDATES FOR FEBRUARY 2024

  • RBI issues revised master circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)

 

RBI has issued the revised Master Circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’. This circular consolidates all instructions issued up to 23.04.2024. The purpose is to outline the RBI’s regulatory policy regarding the financing of NBFCs by banks. This circular applies to all Scheduled Commercial Banks (excluding RRBs). It highlights norms regarding bank finance to NBFCs registered with RBI, NBFCs not requiring registration and activities not eligible for bank credit.

 

Compliance Calendar - February 2024

  • SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period.’

SEBI has notified the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2024. As per the amended norms, a new regulation 29B relating to the dissolution period has been inserted. It states that a scheme of an Alternative Investment Fund may enter a dissolution period in the manner and subject to the conditions specified by the Board. Further, SEBI has introduced definitions of ‘dissolution period’ and ‘encumbrance’ under Regulation 2 of existing regulations.

 

  • SEBI has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders.

SEBI vide circular dated April 24, 2024, in order to promote ease of doing business has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders. In lieu of text only a reference of the applicable regulation regarding fit and proper status of shareholders needs to be made part of the contract note.

 

Monthly Compliance Calendar

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for    the period 30.04.2024.

 

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