Income Tax & GST Return Services

06/02/2022

01/09/2021

Due to the difficulties reported by the taxpayers & other stakeholders, the CBDT has issued Circular No. 16/2021 for extending the due dates for e-filing of certain forms under the Income-tax Act, 1961. The due date for filing of application for registration or approval under Section 10(23C), 12A, 35 and 80G also stands extended to 31st March 2022.

01/09/2021

INCOME TAX UPDATES

📱 *iPads not substitute for computers, ineligible for depreciation at 60% - ITAT Bench of Amritsar held in the case of Kohinoor Indian Pvt. Ltd. vs ACIT [ITA Nos. 234 & 316/Asr/2017]*

*Facts and findings:* The Assessee Company claimed depreciation on iPads at 60% (rate applicable on computers), for AYs 2012-13 & 2013-14, whereas Revenue distinguished iPads from MacBooks and found it similar to iPhones to hold that the iPads were eligible for depreciation at 15%. The ITAT observed that in the absence of definition of computer in the Income-tax Act, definition of "computer" under Information Technology Act, 2000 can be taken as an aid of interpretation and also applies the common parlance test. The ITAT remarked that in the age of technology, most gadgets are working with the aid of computer but the predominant purpose of iPad is communication as its *main features are email, whatsapp, call, facetime, music, films etc.* and thought it discharges some of the functions of the computers, but it cannot be used as a computer.

👉 ITAT bench held *that iPads to be a communicating device, not a substitute for computers, thus, ineligible for higher rate of depreciation of 60%.*

03/08/2021

explanation of yesterday's changes regarding annual return and audit under GST

23/01/2021

a significant ruling granting relief to the Life Insurance Corporation of India (LIC), the Income Tax Appellate Tribunal (ITAT), Bangalore bench has held that the corporation does not required to deduct tax towards the payment of cash medical benefits to its employees as the same is in the nature of mere reimbursement outside the ambit of section 192 of the Income Tax Act, 1961.

24/12/2020

CGST(Fourteenth Amendment) Rules 2020*

1). Where there are significant deviation/anomalies between details of outward supply between GSTR 3B and GSTR1 or inward supplies (ITC) between GSTR 3B and GSTR 2B which indicate contravention of Act, department shall now serve a notice in FORM GST REG 31 to call explanation as to why GSTIN should not be cancelled. Taxpayer shall be required to submit his reply within 30 days of such notice being served to him.

2). Where a GSTIN is suspended no refund u/s 54 of CGST Act 2017 can be availed by the taxpayer. This means that first GSTIN Suspension proceedings have to be closed before applying refund.

*Restriction on claim of ITC as per Rule 36(4)*

3). The claim of ITC in respect of invoices not furnished by the corresponding vendors has now been restricted to 5% of the credit available in GSTR 2B. This limit earlier was 10% of ITC available. This would be mean that a taxpayer’s ITC claim shall now be restricted to 105% of the Credit reflected in his GSTR 2B. Any claim exceeding the specified limit shall result in violation of CGST Act read with rules which may result into suspension of GSTIN as described above. The provision shall come into effect from 1st January 2021.

*GSTR 1 to be blocked in case of non-filing of GSTR 3B*

4). Where a taxpayer fails to file GSTR 3B for two subsequent months, his GSTR 1 shall now be blocked. Earlier non filing of GSTR 3B used to result in blocking of E-way Bill facility but from now on it shall also result in blocking of GSTR 1 of the taxpayer. Similarly, for quarterly return filers, the taxpayer failing to file GSTR 3B for the preceding quarter shall not be permitted to file GSTR 1 of subsequent quarter.

21/11/2020

Monthly GST filing will not be necessary after e-invoice system is in place:-
E-invoicing is already under implementation in phases. It will be mandatory for all from the next financial year as part of the government’s ongoing efforts towards ‘Ease of Doing Business’ and ‘Honouring the Honest’. Once put into operation, both e-way bill system and filing of certain GST returns (GSTR) would be eventually be withdrawn.

19/10/2020

CBIC notifies due date of Form GSTR-3B for October 2020 to March 2021

10/10/2020

The Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that, Taxpayers are required to report only the values pertaining to Financial Year 2018-19, 2017-18 in the GST Annual Return. Vide notification No. 69/2020 – Central Tax, dated 30.09.2020, the due date for furnishing of the Annual Return for the FY 2018-19 has been extended till 31.10.2020. The CBIC said that, Certain representations have been received stating that the auto-populated GSTR 9 for the year 2018-19 (Tables 4, 5, 6, and 7) also includes the data for FY 2017-18. However, this information for FY 2017-18 has already been furnished by the taxpayers in the annual return (GSTR9) filed for FY 2017-18 and there is no mechanism to show the split of two years (2017-18 & 2018-19) in FORM GSTR-9 for 2018-19.
The CBIC clarified that the taxpayers are required to report only the values pertaining to Financial Year 2018-19 and the values pertaining to Financial Year 2017-18 which may have already been reported or adjusted are to be ignored. No adverse view would be taken in cases where there are variations in returns for taxpayers who have already filed their GSTR-9 of Financial Year 2018-19 by including the details of supplies and ITC pertaining to Financial Year 2017-18 in the Annual return for FY 2018-19.

05/10/2020

GST Council recommendations:

1).Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out.
2).Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next week.
3).Enhancement in features of return filing:-
a). Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarterw.e.f. 01.1.2021.
b).Roadmap for auto-generation of GSTR-3B from GSTR-1s by:
I). Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and
II). Auto-population of input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021

b).In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1would be mandatorily required to be filed before FORM GSTR3Bw.e.f. 01.04.2021
C). The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.

4).As a further step towards reducing the compliance burden particularly on the small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto-generated challan
5).Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1w.e.f. 01.04.2021.