What is due date for claiming ITC for FY 2021-22 ?

Vide Finance Act 2022 Government has amended Sec 16(4) of CGST Act 2017 and extended due date for claiming ITC to 30th November of next year.

⦁ However it is to be noted that, yet this amendment is not made effective by government.

⦁ Therefore as of now , kindly claim pending ITC of FY 2021-22 before due date of Sep 2022 return.

#gst #itc #gstreturn #gstitc #inputtaxcredit

New Disclosures in Board’s Report –

As we all are aware that the Board’s Report is prepared under subsection 3 of section 134 of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014

⦁ Now, the Ministry of Corporate Affairs has amended Rule 8, after the amendment along with the existing matter contained in the Board’s Report two new matters shall be added to the Board’s Report.

⦁ The two new disclosures (along with the existing disclosures) shall be applicable for the Financial year 2021-22 and the two new disclosures are:-

Details of applications under the IBC, 2016 during the year along with their status as at the end of the financial year.

The details of the difference between the amount of the *valuation done at the time of one-time settlement and the valuation done while taking a loan from the Banks or Financial institutions along with the reasons thereof. So, you can add the above clauses in Board’s Report as follows:-


During the year under review, there were no applications made or proceeding pending in the name of the company under the Insolvency and Bankruptcy Code, 2016


During the year under review, there has been no time settlement of loans taken from Banks and Financial institutions

Kindly note that the above two matters shall be made in the Board’s Report only in case there is no application or proceeding pending under IBC; or where there is no loan taken or no settlement happened from the Bank.

#boardsreport #boardreport #companiesact2013 #audit #companiesaudit #statutoryaudit

Due to recent changes in ITC Table of GSTR 3B, additional details to be checked for the purpose of GSTR 3B –

1.    Details of Ineligible Credit – Ineligible ITC is now required to reversed from the gross ITC availed in GSTR 3B and therefore, the complete details of Ineligible ITC is required to be reported in GST return. Such Ineligible ITC should include the following details:
·      ITC not allowed as per section 17(5) of CGST Act
·      ITC not allowed on account of POS rules
·      ITC pertaining to the invoices which are pending for payment for more than 180 days to be counted from the date of invoice
2.    Details of ITC which was claimed inadvertently in the previous periods – It may include the following:
·      Ineligible ITC wrongly claimed earlier
·      ITC claimed twice and to be reversed now
·      ITC to be reversed due to other reasons

#gstreturn #gstindia #gstregistration #gst #gstlitigation #gstupdates

Practicing CAs issue various certificates at the request of their clients and authorities take them as documentary proof to support a transaction.

One of the certificates which are generally asked for by Banks and financial institutions is End Use Certificate. It is part of the banks’ monitoring process after the loan amount’s disbursal.

Utmost care is required from the professional in issuing these certificates. A CA should satisfy himself with documentary proof before the issue of such certificates. There should not be any chance of tolerable error.

It’s beneficial in accepting the assignment if CA knows the level of integrity of the client. The basis of certification and management explanations should be included in the relevant work papers.

#CACertificate #Audit #CompanyAudit #StatutoryAudit #TaxAudit #StockAudit #InternalAudit

Lot of CAs are burdened with the Tax Audits in the month of September as the 30th is the last date. Please go through the below points:

👉🏻 Standards on Auditing are mandatory to be followed in planning and performing the audit.

👉🏻 For clarity on any specific matter, members can refer to the Guidance note issued by the ICAI.

👉🏻 Risk assessment is a critical element which should never be ignored.

👉🏻 One should never compromise on the audit procedures due to paucity of time.

👉🏻 Review mechanism within the practicing firm improves the quality of audit.

✅️ Never to forget Integrity, Objectivity, and Independence.

#audit #tax #auditing #icai #ca #standards

CGST Mumbai South Commissionerate busts Rs. 142 Crore fake GST invoice racket

Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to pass on fake GST Input Tax Credit (ITC) of Rs. 27.80 crore on invoices of Rs 142 Crore, and have arrested the Director of M/s Techno Satcomm India Pvt. Ltd. for issuing GST invoices without actual supply of goods.

Acting on a specific input received from the Central Intelligence Unit of CGST Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate initiated an investigation against this company. During the investigation, the company was found to be non-existent at the declared business address. Subsequently, the statement of its Director was recorded on September 05, 2022 wherein he admitted his role in the generation of fake ITC and passing on this ITC in the downward supply chain.

Investigation revealed that this company had fraudulently claimed input tax credit of Rs. 27.80 Crore in its GST returns and passed on this ITC to its various recipients. Bogus invoices of around Rs. 142 Crore were issued for passing on this tax credit, without any supply of goods, in gross violation of provisions of the CGST Act, 2017.

Based on material evidence gathered during the investigation, the Director of the company was arrested on September 06, 2022 and produced before the Hon’ble Additional Chief Metropolitan Magistrate, Esplanade on the same day who has remanded him to judicial custody for 14 days. Further investigation is under progress.

This is the seventh arrest by the officers of CGST Mumbai South Commissionerate, in the current financial year. During the financial year 2021-22, the CGST Mumbai South Commissionerate had detected GST evasion of Rs. 949 Crore, recovered Rs. 18 Crore and arrested 9 tax evaders

CGST officers are using data analysis and network analysis tools to identify and trace potential fraudsters. This case is a part of the special drive launched by the CGST Mumbai Zone against tax fraudsters and fake ITC networks. The CGST officers will intensify this drive against the tax evaders in the coming days.

Tata Play ordered to pay ₹450 crore for alleged GST related profiteering

The National Anti-Profiteering Authority (NAA) has ordered Tata Play Ltd. to deposit ₹450 crores with interest in designated consumer welfare funds for allegedly profiteering after the introduction of Goods and Services Tax (GST), showed an official order. 

NAA said in an order posted on its website that the period of alleged profiteering from subscribers was from 1 July 2017 to 31 January 2019. The decision came on the basis of an application filed by a consumer based in Karnataka which led to an investigation by the Director General of Anti-Profiteering (DGAP). 

The investigation looked into allegation that in the direct to home service by the company, commensurate benefit of input tax credit that became available to the company after GST rollout, was not passed on to the consumer as mandated under the Central GST Act. 

The company informed NAA that post February 2019, the Telecom Regulatory Authority of India orders have specified the pricing regulations based on network carriage fees and channel package price which were being followed by them. The order quoted Tata Play’s submission that there is no impact of taxes on its package pricing to the consumer.  

The order said that half of the amount of alleged amount of profiteering has to be deposited in central consumer welfare fund and the rest in state consumer welfare funds.

Bombay High Court seeks response from Attorney General, Advocate General in challenge to GST Rules amendment

The petition was filed challenging the validity of the amendment to sub-rule 2 of Rule 21A of the Central GST Rules 2017 which deprives the assessee of the opportunity to be heard before suspending the GST registration.

The Bombay High Court recently issued notice to the Attorney General for India and Advocate General of Maharashtra in a petition challenging the amendment to the Goods and Services Tax Rules of 2017 (GST Rules) which deprives the assessee of the opportunity to be heard before suspending the GST registration [SAT Industries Ltd. v. Union of India & Ors.]