2024MONTHLY NEWS & UPDATES FOR DECEMBER 2024

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

• ·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).

   

  2024. This notification shall come into effect from 1^st 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 Business	Circumstances
  Selling of raw diamonds referred to in clause (b) of rule 10TI	The 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
  22. 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.
  23. 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.
  24. For cases pertaining to FY 2021-22, taxpayers can file updated ITRs by the limitation date of March 31, 2025.
  25. 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/).
  26. 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.
  27. 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

• 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:

7. 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.

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.

• 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.

2. 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.