Shivam Gupta & Associates - Chartered Accountants

09/09/2024

🌺 *Summary of Outcomes from the 54th GST Council.*


🍎 *1. Rates Reduced*
👉 *1.1 Namkeens* and Extruded/Expanded Savoury Food Products: GST rate reduced *from 18% to 12%* for certain savoury food products.

👉 *1.2 Cancer Drugs*: GST rate reduced from 12% to 5% on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

🍎 *2. Rates Increased*
👉 *Car and Motorcycle Seats*: GST rate increased *from 18% to 28%* on car seats to bring parity with motorcycle seats.

🫐 *3. New Section to be Inserted*
👉 *Section 128A of CGST Act, 2017*: Introduction of procedures for waiver of interest or penalty under section 73 for FYs 2017-18, 2018-19, and 2019-20.

🍒 *4. New Rule to be Inserted*
👉 *Rule 164 in CGST Rules, 2017*: Provides procedure and conditions for waiver of interest or penalty under section 128A of CGST Act, 2017.

🍋‍🟩 *5. Clarifications*
👉 *5.1 Roof Mounted Package Unit (RMPU)* Air Conditioning Machines for Railways: Classified under *HSN 8415 with 28%* GST.

👉 *5.2 Life and Health Insurance*: A Group of Ministers (GoM) will examine GST on life and health insurance.

👉 *5.3 Flying Training Courses*: GST exemption clarified for DGCA-approved courses.

👉 *5.4 Preferential Location Charges (PLC)*: Clarified that PLC forms part of composite supply with construction services.

👉 *5.5 Affiliation Services*: Clarification on the taxability of affiliation services provided by educational boards and universities.

👉 *5.6 Ancillary/Intermediate Services by GTA*: Clarification that services provided by GTA in the course of transportation constitute a composite supply.

👉 *5.7 Import of Services by Branch Office*: GST exemption clarified for services imported by foreign airline companies without consideration.

🫐 *6. Others*
👉 *6.1 Reverse Charge Mechanism (RCM)*: Introduced on the supply of metal scrap and renting of commercial property by unregistered persons.

👉 *6.2 B2C E-Invoicing*: Pilot rollout recommended for selected sectors and states.

👉 *6.3 Invoice Management System (IMS)*: Introduction of new ledgers, including a Reverse Charge Mechanism (RCM) ledger and an Input Tax Credit Reclaim ledger.

👉 *6.4 Film Distribution Services*: GST liability for past periods regularised where the distributor acts on a principal basis.

👉 *6.5 Electricity Supply Services*: Exemptions provided for certain ancillary services related to electricity supply.

🍎 *7. New Recommendations*
👉 *Group of Ministers (GoM) on Compensation Cess*: Formation recommended to study the future of compensation cess.

✅ Regards:

22/03/2024

Financial Year 2023-2024 is about to close

Let's see Things to Do Before 31st March 2024:-

*Basic checklist for 31st March, 2024.*

*Income Tax:*

1. Make necessary investments eligible for deductions thereby reducing taxable income for FY 2023-24 and ultimately save tax. (Eg: PPF, LIC, ELSS Mutual Funds, Health Insurance, etc..).

2. Calculate tax liability and pay necessary advance tax.

3. Last chance to file updated income tax return for FY 20-21 by paying 50% additional tax.

4. Last chance to file updated income tax return for FY 21-22 by paying only 25% additional tax; thereafter, it would increase to 50% additional tax.

5. Ensure 43B(h) compliance which deals with timely payment to Micro and Small Enterprises.
Such payments have to be made within 45days/15 days as applicable.

6. If turnover for FY 2023-24 exceeds Rs. 10 Crores, then, TDS provisions under section 194Q, TCS provisions under section 206C(1H) will become applicable for FY 2024-25.

7. Obtain declarations from transporters for non-deduction of TDS under section 194C.

8. Reconcile and/or account for the TDS and TCS credit in books of accounts.

*Goods and Services Tax:*

1. File Letter of Undertaking (LUT) for FY 2024-25. LUT has to be filed if you make exports of goods/services or supplies to SEZ units/developers without payment of IGST.

2. Application to opt for composition scheme for FY 2024-25.

3. GTA services providers need to file a declaration for opting to pay tax under forward charge mechanism for FY 2024-25. Recipient are recommended to obtain and maintain a record of such declaration from GTA to justify non-payment of tax under reverse charge mechanism.

4. If turnover for FY 2023-24 has exceeded Rs. 5 Crores for the first time since inception of GST, then, generate and issue E-Invoice for supplies from 01st April, 2024.

5. If payments to creditors are due for more than 180 days, then, reverse the input tax credit availed on such transactions.

6. Start new invoice series from 01st April, 2024, unique for FY 2024-25.

7. Reconcile the data filed in GST returns with books of accounts and pass necessary entries, if any. (Eg: Reconcile the turnover, Match balance in Electronic Credit/Cash Ledger with books of accounts, make necessary adjustment to ITC available in books but not appeared in GSTR-2B, reverse the excess ITC claimed, if any, discharge the RCM liability if any, missed during the year, etc…)

8. Reconcile and/or account for the GST-TDS and GST-TCS credit in books of accounts.

*Others:*

1. Make necessary year end provisions. Also, account for depreciation, amortization.

2. Verify closing stock, cash balance, bank balance, inter branch balance.

3. Collect FD statements from bank and account interest income.

4. Double check the statutory compliances on all the transactions. (Eg: TDS, TCS, RCM)5. Account for foreign exchange fluctuations.

6. Balance Confirmation with third parties.

P.S.:
1. The post is neither an opinion nor an advice in any manner.
2. This is a general, inclusive list and not exhaustive.

Thanks & regards
CA Shivam Gupta
Shivam Gupta & Associates

22/02/2024

Glimpse of seminar conducted by us for Invertis university students. Thanks to the faculty of commerce Department, Invertis for inviting us..

02/02/2024

🌺 *Top 75 Highlights of Budget FY 2024-25 by Finance Minister Nirmala Sitharaman* (Compiled by Young CAs Group)

👉 1. *No Changes* in Income Tax Slabs.

👉 2. *No Change in Tax rates for Company, LLP or any other person.*

👉 3. Some Exemption to Srartups and Extend some concession - extension of tax sops for soverign wealth funds and startups to *March 2025.*

👉 4. Tax payers service - Withdrawal of direct tax demands of period upto *₹25000 for period upto 2009-10* and *₹10000 for period upto 2014-15*, 1 Crore people will benefit.

👉 5. 40,000 normal railway bogies will be converted to vande Bharat standards.

👉 6. 1-lakh crore corpus will be made available with 50 year interest free (long-term financing or refinancing) to encourage the private sector to *scale up R&D*. Corpus of 1 Lakh Crore for Reduced Rate Loans to Private Sector for Research in Sunrise Domains.

👉 7. Rooftop solarisation and free electricity Through rooftop solarisation, 1 crore households will be enabled to obtain up to *300 units of free electricity every month*.

👉 8. This scheme follows resolve of Prime Minister, on the historic day of consecration of *Ram Mandir in Ayodhya.*

👉 9. *Garib, Mahila, Annadata and Yuva* will be focus groups.

👉 10. Sithraman Working to make India a *Vikasit Bharat by 2047.*

👉 11. Worries about food have been eliminated with *free rations for 80 crore people.*

👉 12. 25 crores Indians were pulled out of multi dimensional poverty by the govt over *past 10 yrs.*

👉 13. Govt could *save 2.7-lakh crore* through avoidance of leakages.

👉 14. Electronic agri Mandi has connected 1051 mandis, transacting ₹2-lakh crore.

👉 15. Minimum support prices for ‘Annadata’ (farmers) increased periodically.

👉 16. Direct financial assistance was extended to 11.8 crore farmers.

👉 17. For our government, social justice is an effective and necessary model.

👉 18. *Female enrolment in higher education has gone* up by 28 per cent in 10 year.

👉 19. Avg real income has increased by *50 per cent.*

👉 20. Every year under PM Kisan Samman Yojana, Direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers.

👉 21. PM SVANIDHI has provided credit assistance to 78 lakh street vendors, from that total, 2.3 lakh have received credit for the third time.

👉 22. PM JANMAN Yojana reaches out Particularly Vulnerable Tribal Groups.

👉 23. PM Vishakarma Yojana provides end to end support to artisans and craftspeople.

👉 24. Scheme for empowerment of Divyang and transgender people reflects our resolve to leave no one behind.

👉 25. PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs. 22.5 lakh crore for entrepreneurial aspirations of your youth
26. Fund of Funds, Startup India and Startup Credit Guarantee Schemes are assisting our youth.

👉 27. The National Education Policy 2020 is ushering transformational reforms.

👉 28. PM Shri is delivering quality teaching.

👉 29. Skill India Mission has trained 1.4 crore youth, upskilled and reskillled 54 lakh youth and established 3,000 new ITIs.

👉 30. Large no. of institutions of higher learning namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMSs and 390 universities have been set up.

👉 31. The country received its highest ever medal tally in Asian Games and Asian Para Games in 2023.

👉 32. Chess prodigy and our No. 1 ranked player Praggnanandhaa put up a stiff fight against world champion Magnus Carlsen in 2023, today, India has over 80 chess grandmasters compared to little over 20 in 2010.

👉 33. The earlier approach of tackling poverty resulted in very modest outcomes When the poor became empowered partners in development process, government's power to assist them increases manifold. In the last 10 years, the government has assisted 25 crore people to get freedom from multidimensional poverty.

👉 34. 2cr more houses will be built under PM Awas Yojana Gramin 1cr houses will be taken to rooftop solar units to generate free electricity.

👉 35. Housing for Middle Class, Govt will launch a new scheme to buy and build their own houses.

👉 36. Making Triple Talaq illegal, one third women's reservation in Lok Sabha and state assemblies, giving over 70% houses under PM Awas Yojana in rural areas to women as sole or joint owners have enhanced their dignity.

👉 37. Empowerment of Women through entrepreneurship, ease of living and dignity has gained momentum in last 10 years.

👉 38. 30 crore MUDRA Yojana loans have been given to woman entrepreneurs.

👉 39. Female enrollment in higher education has gone up by 28% in 10 years.

👉 40. In STEM courses, girls and women constitute 43% of enrollment, one of the highest in the world.

👉 41. All these are getting reflected in increasing participation of women in workforce.

👉 42. Making Triple Talaq illegal, one third women's reservation in Lok Sabha and state assemblies, giving over 70% houses under PM Awas Yojana in rural areas to women as sole or joint owners have enhanced their dignity.

👉 43. Besides delivering on high growth, the government is equally focussed on a more comprehensive GDP - I.e., Governance, Development and Performance.

👉 44. Ayushman Bharat scheme cover will be extended to all Asha, Anganwari worker and helpers.

👉 45. To ensure housing for middle class, the government will launch a scheme for middle classThis is to help them to buy or build their own houses for those living in slums, chawls or rented houses, she added.

👉 46. A committee to set up more medical colleges, free cervical Cancer vaccines for girls from 9-14 years.

👉 47. Nano DAP on various crops will be expanded in all agro-climatic zones.

👉 48. GST has enabled One Nation One Market One Tax.

👉 49. GIFT IFSC and Unified Regulatory Authority IFSCA are creatin a robust gateway for global capital and financial resources.

👉 50. Proactive inflation management has helped keep inflation within the policy band.

👉 51. Matsya Sampada Yojana to be expanded to generate more employment, increase earnings.

👉 52. Despite the challenges due to COVID, implementation of PM Awas Yojana Rural continued and we are close to achieving the target of 3 crore houses. 2 crore more houses will be taken up in the next 5 years.

👉 53. India U.S. Europe sponsored Middle East- europe corridor: potential gateway for world trade for 100s of years..

👉 54. India assumed G20 Presidency during very difficult times, global economy was going through high inflation, low growth, high interest rates, very high public debt, low trade growth and climate changes.

👉 55. Pandemic has led to a crisis of food, fertilizer, fuel and finances while India successfully navigated its way and showed the world the way forward.

👉 56. India built consensus on global problems, the recently announced India Middle East Europe Economic Corridor is a strategic and economic game changer for India and others.

👉 57. Our government is ready to assist states in faster development of aspirational districts and blocks Government will pay utmost attention to make eastern region and its people a powerful driver of India's growth.

👉 58. Social Justice was largely a political slogan. For our government, social justice is an effective and necessary governance model !! The saturation approach of covering all eligible people is the true and comprehensive achievement of social justice, this is secularism in action, reduces corruption, prevents nepotism There is transparency and assurance that benefits are received to all eligible people, all regardless of their social standing get access to opportunities We are addressing systemic inequalities which have plagued our society, our focus is on outcomes and not on outlays so that socioeconomic transformation is achieved.

👉 59. Charging of electric vehicles Entrepreneurship opportunities to a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenance.

👉 60. Rooftop solarisation and free electricity.

👉 61. Through rooftop solarisation, 1 crore households will be enabled to obtain up to 300 units of free electricity every month

👉 62. FDI inflows stand at $596 billion, twice more than 2014-15.

👉 63. The govt will form a high powered committee to address the concerns of fast population growth and demographic change.

👉 64. Fisheries scheme to help reach the target of INR 1 lakh crore exports.

👉 65. 2 Crore More Houses To Be Built Under PMAY-Gramin.

👉 66. Fiscal deficit for FY 24 revised at 5.8%. lower than earlier estimate of 5.9% in BE.

👉 67. FDI is 'First Develop India. FDI inflow during 2014 to 2023 was Rs 596 billion US dollars, marking a golden era. This was twice the FDI inflow between 2005 to 2014. For sustained FDI, we are negotiating bilateral investment treaties with foreign partners.

👉 68. PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs. 22.5 lakh crore for entrepreneurial aspirations of our youth.

👉 69. Revised fiscal deficit estimated for FY24 has been pegged at 5.8% of GDP and the deficit for FY25 is pegged at 5.1%.

👉 70. To address fervour for domestic tourism, projects for port connectivity, tourism infra & amenities will be taken on our islands including Lakshadweep.

👉 71. Government will further promote private and public investment in post harvest activities including aggregation, modern storage, supply chains, primary and secondary processing, marketing and branding.

👉 72. After successful adoption of nano urea, Nano DAP application on various crops will be expanded in all agroclimatic zones.

👉 73. Electronic National Agricultural Market has integrated 1,361 mandis and is providing services to 1.8 crore farmers with trading volume of 3 lakh crores of rupees. The sector is poised for inclusive, balanced and higher growth and productivity.

👉 74. I propose to retain the same tax rates for direct and indirect taxes including import duties.

👉 75. Govt will lay a white paper in house on mismanagement of the economy before 2014

✅ Regards:

17/11/2023

Advisory for Online Compliance Pertaining to ITC mismatch -GST DRC-01C

Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-R3B

Dear Taxpayers,

1. It is informed that GSTN has developed a functionality to generate automated intimation in Form GST DRC-01C which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B statement & ITC claimed in GSTR-3B return online as directed by the GST Council. This feature is now live on the GST portal.

2. This functionality compares the ITC declared in GSTR-3B/3BQ with the ITC available in GSTR-2B/2BQ for each return period. If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a predefined limit or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01C.

3. Upon receiving an intimation, the taxpayer must file a response using Form DRC-01C Part B. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both options.

4. In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such taxpayers will not be able to file their subsequent period GSTR-1/IFF.

Thanking you,

24/07/2023

10/05/2023

My Mom forced me to help her in the kitchen...

My Observations....

1. There is no stock ledger maintained. Procurement is not in line with provision factor. Purchase orders are placed verbally. Inventory maintenance is very low.

2. There is no budgeting documents.

3. There is no indexing off products.

4. No bin cards were displayed.

5. No annual, monthly or quarterly stock taking has been taken out.

6. No inspection has been carried out for years. Most of the spoons and plates are off the wrong pattern and do not match with the original party number.

7. No procedure of inventory valuation.

8. Weighing scale non existing.

9. No handing over/taking over files maintained.

10. No SOP and menu displayed.

11. Fire fighting equipment not held.

12. Sufficient reserves are not maintained.

13. Annual balance sheet and other financial statements have not been prepared since inception.

14. Lots of unaccounted cash was found in many boxes in the kitchen.

I have been removed from kitchen duty and now given toilet cleaning duty... 🙈😱😂🤣

22/02/2023

These are the *50 transactions* which IT dept is doing data mining from various sources like banks, register office, etc...

Kindly do not miss any such transaction in reporting while filing your IT return or GST return.

*Ensure you have reported all those 50 transactions* without fail apart from your other transactions which might not covered in these 50.

This shows the future approach of IT, GST authorities while reviewing the filed returns.

Slowly it will become a AI based comparabilities and system throws the differences with out assessing officers review.

Be prepared from now on...!

24/10/2022

रोशनी से घर आपका जगमगाए,
इस दिवाली आपके घर खुशियां अपार आएं |
हैप्पी दिवाली!

22/04/2022

Invited as a key speaker in Guest Seminar on "Recent Changes in Income Tax & GST" organized by Faculty of Management, Invertis University.
Interactive session with University Students.
It always feels great to share knowledge and enhance skills of our future generation.

01/02/2022

QUICK SUMMARY

DEFICIT/EXPENDITURE
1. Proposes fiscal deficit of 4.5% of GDP by 2025/26
2. Projects fiscal deficit of 6.4% of GDP in 2022/23
3. Revised fiscal deficit for 2021/22 at 6.9% of GDP
4. Total expenditure in 2022/23 seen at 39.45 trillion rupees
5. States will be allowed 4% fiscal deficit to GDP in FY23
6. 50 year interest free loans over and above normal borrowing allocated to states
7. Scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees in 2022/23

TAXATION
1. Import duty on certain chemicals are being reduced
2. Customs duty exemption on steel scrap to be extended for another year for small- and medium-sized businesses
3. Customs duty on stainless steel, flat products, high steel bars to be revoked
4. Unblended fuel to get additional duty of 2 rupees per litre from October 2022

FINANCE
1. Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023
2. Energy transition and climate action will be a major government priority
3. Public issue of Life Insurance Corporation expected shortly
4. Initiatives from last year's budget have been provided adequate allocations in this budget
5. Special Economic Zones Act to be replaced with new legislation
6. To amend bankruptcy code to speed up resolution process
7. Aims to lower winding up of companies to 6 months from 2 years currently8.
8. Long term capital gain surcharge to be capped at 15%

DIGITAL CURRENCY
1. To launch digital rupee using blockchain technology starting 2022/23
2. To launch scheme for taxation of virtual digital assets
3. Losses from sale of virtual digital assets cannot be offset against other income
4. Income from virtual digital assets to be taxed at 30%

DEFENCE
1. Govt committed to reducing defence imports

INFRASTRUCTURE
1. 5G spectrum auctions to be conducted in 2022
2. Scheme for design-led manufacturing for 5G will be part of production-linked scheme
3. To award contracts to lay optical fibre in rural areas, completion in 2025
4. 480 billion rupees set aside for affordable housing in 2022/23
5. To allocate additional 195 billion rupees for production-linked incentives towards solar equipment manufacturing

AGRICULTURE
1. Domestic scheme introduced to reduce dependence on oilseed imports
2. Fund with blended capital raised under co-investment model to finance agriculture startups
3. Railways to develop infrastructure for small farmers in 2022/23

TRANSPORT
1. 400 energy efficient trains to be manufactured over next three years
2. National highways network to be expanded by 25,000km in 2022/23
3. Highways expansion to cost 200 billion rupees in 2022/23
4. India to bring out battery swapping policy