GST return Due Dates from March 21 to June 21.

 

GST Council Meeting Key decisions

 

 

COVID Equipments

Ø  As a COVID-19 relief measure, specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021. Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.20201. It may be mentioned that these goods are already exempted from Basic Customs duty.

 

Which tax deadlines not extended

 

The CBDT  vide circular no. 9 dated May 20, 2021, extended the number of Income tax due dates for the financial year 2021 to provide some relief to the taxpayer during the second wave of covid and lockdown in the country. However, we find that following CBDT gas not extended the due dates for the following compliances and this will continue the hardship to the taxpayer.

Tax challenges of CSR trust during Pandemic

I am a CSR trust of a company whose main purpose is to serve society. During this pandemic era, I am also required to help people in need and I am doing that. However, while performing my duty I found a few challenges and some of them are mentioned below.

Legal Maxims in GST

 

Legal Maxims simple meaning is legal phrase and in the Latin language, these are used to interpret or explain a legal principle. Though there are plenty of legal maxims, here are 5 commonly used Legal Maxims with meaning & application in GST

1. 𝘕𝘰𝘯-𝘰𝘣𝘴𝘵𝘢𝘯𝘵𝘦
Means ‘Notwithstanding’, used for overruling sections
Provision of blocked credit [Section 17(5)] is a non-obstante clause
 
2. 𝘔𝘰𝘥𝘶𝘴 𝘖𝘱𝘦𝘳𝘢𝘯𝘥𝘪
Refers to a specific mode of operation
Normally, used to describe the method of working of fictitious firms
 
3. 𝘔𝘶𝘵𝘢𝘵𝘪𝘴 𝘔𝘶𝘵��𝘯𝘥𝘪𝘴
Means making necessary changes without affecting the main point
Provision of refund, audit, ITC, etc., from the CGST Act are applicable under the IGST Act as well [Section 20]
 
4. 𝘘𝘶𝘪𝘥 𝘗𝘳𝘰 𝘘𝘶𝘰
Favour granted in return for something
Generally, used in the context of supply being made in exchange of consideration
 
5. 𝘈𝘶𝘥𝘪 𝘈𝘭𝘵𝘦𝘳𝘢𝘮 𝘗𝘢𝘳𝘵𝘦𝘮
Means the other side be heard as well; indicates principles of natural justice
‘Opportunity of being heard given to a person before passing an order  

Extension of Income tax due dates.

 

Circular No. 9  dated May 20, 2021.

Today CBDT almost tax due dates by one month and given below summary of important extension.

SN	Compliance	Actual due date	Extended due date.
1	Statement of Financial Transactions	May 31, 2021	June 30, 2021
2	E TDS return	May 31, 2021	June 30, 2021
3	Issuance for Form 16	June 15, 2021	July 15, 2021.
4	Income tax return – non audit case	July 31, 2021	Sep 30, 2021
5	Submission of tax audit report	Sep 30, 2021	Oct 31, 2021
6	Furnishing of TP report -  Form 3CEB	Oct 31, 2021	Nov 30,2021
7	Income tax return – audit case non TP	Oct 31, 2021	Nov 30,2021
8	Income tax return – audit case with TP	Nov 30,2021	Dec 31, 2021
9	Belated/ Revised return	Dec 31, 2021	Jan 31, 2022

No extension for payment of self asst. tax under section 234A if the amount payable exceeds Rs. 1 Lakh.

The Arbitrariness doctrine in tax laws

 

The year started off with a set of amendments in the CGST Rules, set in to add to the arsenal of the revenue authorities to deal with the GST fraudsters. With effect from 01 January 2021, not only do the executives have more powers to cancel the GST registration1, they also have the powers flowing from the CGST Act to impose penalties on persons who supposedly retain benefits out certain transactions2.

 

FAQ ON ACCOUNTING OF CSR

 

 

Frequently Asked Question on Accounting for amounts to be incurred towards Corporate Social Responsibility (CSR) pursuant to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021

This FAQ has been issued by the Accounting Standards Board of the Institute of Chartered Accountants of India.

UAE - Revision of Tax Penalties

 

 

 UAE Cabinet Ministry has amended certain penalties of “Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE”. Further the much-awaited Amnesty scheme has also been introduced for giving relief to taxpayers. We have listed below key amendments for easy reference:

 

Death of Proprietor- the Procedure for Transfer of Business as Going Concern to Successor- in GST

 

                                                                                                        

1. Registration of a New Entity in which business of deceased individual is to be transferred w. e. f. date of succession i.e. date of death of proprietor. If successor is a minor, his legal guardian will be the authorized signatory.

CBDT has eased the requirement of obtaining PAN by non-resident for investing in Category -III AIF and certain listed securities in IFSC.

 CBDT had inserted Rule 114AAB of the Income-tax Rules, 1962 from 10 August, 2020 to provide that non-resident investor in specified fund is not required to obtain PAN subject to certain conditions.

Specified fund were defined to mean fund registered as a Category I or Category II Alternative Investment Fund , located in IFSC and regulated under SEBI (AIF) Regulations, 2012.

CBDT has vide notification no. 42/2021 dated 04 May, 2021 have further relaxed requirement of obtaining PAN by

1.expanding definition of specified fund to include fund registered as category III AIF with SEBI as referred in section 10(4D) of the Act
 
2.inserting sub-rule (2A) covering eligible foreign investors ('EFI') investing only in capital asset referred to in section 47(viiab) of the Act listed in stock exchange in IFSC subject to following conditions.
 
-EFI does not earn income in Indian other than from transfer of a capital asset as referred above.

CBDT notifies rules, form and procedure for withdrawal of pending application before Settlement Commission

 

Executive summary

 

·         This Flash News summarizes a recent notification no. 40/2021 dated 30 April 2021 (Notification) issued by the Central Board of Direct Taxes ^[1] (CBDT) notifying the rules, procedure and form for withdrawing the applications pending before Settlement Commission (SetCom) as on 31 January 2021. 

Background: 

GST on Covid Medicine.

 

Most of the developed nation is providing all kinds of assistance to their citizen during this pandemic.  The government is providing all kinds of medical assistance to their citizen free of cost during their hard time.   The Indians cannot dream of such privileges. Further, due to inappropriate usage of political & influential people, the country already facing a shortage of Oxygen, beds in Hospitals, life-saving drugs, etc. The situation has now become so worsen that for sick people it is difficult to get their RT-PCR test. Patients have to first wait for 2-3 days to get their test done and then wait for another 4-5 days to get the report of their test. Hence, by the time patient gets the outcome of the report, his case may be severe due to delay in getting the report.  Thus, there is a situation of national emergency where we can see the country's medical infrastructure has been collapsed and the government became a silent audience.  The insurance companies further worsen the situation by denying the medical expenses incurred for home isolation. The insurance companies are taking the advantage of the situation of shortage of beds for the covid patients.  Thus, in a hard time, the citizen of the country has to arrange of all means of treatment of their own and with almost no source of income due to lockdowns. 

Thus citizens of our country are having a hard time and also paying GST when they are purchasing medicines for their treatment. Right now almost all members of the family get affected due to the virus and thus they are having a big medical bill with GST. Hence we can conclude that the rise in the case of infection in the country is also increasing the GST collection on Covid medicines.

The government must look into this and must admit that they had failed to control the situation in the country and accordingly, issue the order of not charging GST on covid medicines. This will give some financial assistance to the families whose members are suffering from the Pandemic.