The Central Board of Indirect Taxes and Customs has through a tweet intimated the extension of due date for filing of GSTR-9 and 9C for the year 2018-2019 from September 30, 2020 to October 31, 2020. The Notification in this matter will be issued by the Government in due course.

On further consideration of genuine difficulties being faced by taxpayers due to the Covid-19 situation, CBDT further extends the due date for furnishing of belated & revised ITRs for Assessment Yr 2019-20 from 30th September, 2020 to 30th November, 2020.Order u/s 119(2a) issued. https://t.co/QQii6qG3pt

Major relief for companies: MCA extends deadline for various schemes till December-end; check schemes

In an effort to provide greater ease of doing business, the Ministry of Corporate Affairs has extended the duration of several schemes till the end of the year 2020 in the wake of continued disruption caused by the coronavirus pandemic in certain parts of the country. Nirmala Sitharaman’s Office said that the Companies Fresh Start Scheme 2020, which was introduced by the MCA and was valid from 1 April 2020 to 30 September 2020, has now been extended. The scheme aimed to enable companies to clear their previous defaults.

In addition, the scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013, and the time for conducting EGMs through video conference or other audio-visual means has also been extended till December-end. The LLP Settlement Scheme 2020, has also been extended till the end of 2020, which was aimed at enabling the LLPs to settle their previous defaults.

It is to be noted that the LLP Settlement Scheme 2020 is a one-time relaxation provided to LLPs which have defaulted in filing the statutory documents within the required due dates. The LLPs which opt for this scheme are not required to pay additional fees. A large number of LLPs have defaulted leading to the electronic registry not being updated.

Meanwhile, all companies are required to follow statutory compliances such as annual returns, financial statements, and all the other necessary forms, documents, and statements annually. Non–compliance of the same results in the imposition of penalties and fines and if the company fails to adhere to the compliances, it is labeled as a defaulting company.

Amnesty Scheme for GSTR-4 (Quarterly) & GSTR-10
To encourage the composition dealers who have not filed their quarterly returns, the department has reduced the late fees on filing pending Form GSTR-4 (Quarterly Return). The taxpayer is not required to pay the late fee if the tax liability is ‘NIL’. For other cases, the late fee has been restricted to Rs.500. However, the pending GSTR-4 (quarterly) related to FY 2017-18 and 2018-19 has to be filed on or before 31.10.2020.A taxable person whose GST registration is cancelled or surrendered has to file a return in the form of GSTR-10, i.e. final return. The taxpayers who had not filed are now allowed to file the final return with a reduced late fee of Rs.500. However, the pending GSTR-10 has to be filed on or before 31.12.2020.

Delinking of Debit or Credit Notes from Invoice
GSTN has enabled the facility to report consolidated credit or debit notes under GST in GSTR-1. With this change, taxpayers need not declare the original invoice number and its date while reporting credit or debit notes in GSTR-1. The move is much-needed to reduce the disclosures required by a taxpayer on the GST portal and, in turn, the compliance burden.

Downloading e-Way Bills is made easy!
Until recently, taxpayers could download e-way bills for a limited period at five-day intervals. This caused taxpayers hardships as they needed to download e-way bills several times a month. The e-way bill portal has now enhanced this facility by giving taxpayers the option to download e-way bills for one month, with a single click. However, this facility is only available between 8 a.m. and 12 p.m., so as to not disrupt the normal working of the portal.

CBDT: Payment gateways won’t have to pay tax on e-commerce transactions under this scenario


Delhi : Issuing guidelines for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) on e-commerce transactions, the Central Board of Direct Taxes (CBDT) said that the payment gateway won’t have to deduct tax under section 194-O of the Income Tax Act on a transaction if it has been deducted by the e-commerce company. For example, according to CBDT’s circular issued on Tuesday, if a consumer buys goods worth X amount from an e-commerce company and pays through a payment gateway, since e-commerce payments are generally routed via such gateways, the liability currently under sector 194-O of the Act to deduct tax may fall on both the e-commerce company and the payment gateway. However, with the clarification by the board, if the tax has been deducted by the e-commerce firm, then the payment gateway won’t have to do so. For this, the e-commerce company can also get an undertaking from the gateway for the tax deduction.

Income Tax appeals to be finalised in a faceless manner: Know the online process for taxpayers


Delhi : The Income Tax Department has launched the mechanism of Faceless Income Tax Appeals. Under Faceless Appeals, all Income Tax appeals will be finalised in a faceless manner under the faceless ecosystem with the exception of appeals relating to serious frauds, major tax evasion, sensitive & search matters, International tax and Black Money Act. The PM on 13th August 2020 while launching the Faceless Assessment and Taxpayers’ Charter as part of “Transparent Taxation – Honoring the Honest” platform, had announced the launching of Faceless Appeals on 25th September 2020. Under the Faceless Appeals, from now on, in income tax appeals, everything from e-allocation of appeal, e-communication of notice/ questionnaire, e-verification/e-enquiry to e-hearing and finally e-communication of the appellate order, the entire process of appeals will be online, dispensing with the need for any physical interface between the appellant and the Department. There will be no physical interface between the taxpayers or their counsel/s and the Income Tax Department. The taxpayers can make submissions from the comfort of their home and save their time and resources. “This scheme is another significant step by the Income Tax department to almost end the personal interaction between Taxpayers and tax authorities. The scheme is intended to eliminate personal bias and decide the appeals on objective evaluation and merits of the case. While the intent of the Government is undoubtedly very good in this entire initiative, implementation alongwith necessary training of the officers handling these matters will be the most important factor for success of the scheme. A lot will also depend on quality and clarity of written submissions/ details filed by taxpayers and if those are badly prepared, then chances of success in these faceless proceedings reduce substantially for the taxpayers,” says Rakesh Nangia, Chairman, Nangia Andersen India.

Scrip-wise reporting in ITR must only for LTCG exemption, not for day-trading, short-term gains: CBDT


Delhi : The Central Board of Direct Taxes has clarified that there is no requirement for scrip wise reporting for day trading and short-term sale or purchase of listed shares in the filing of income tax return (ITR) in assessment year (AY) 2020-21. The ministry, in a statement on Saturday, said that the gain from share trading in case of stock traders or day traders is generally categorised as short-term capital gains or business income. “This is because their holding period of shares/units in most of the cases is less than one year which is a prerequisite for the gains to be categorised as long-term capital gains.” The clarification came following certain media reports around “stock traders/day traders are required to furnish scrip wise details in the return of income for AY 2020-21,” the ministry added. The scrip wise details are needed while filing ITR for AY 2020-21 for reporting long-term capital gains (LTCG) for listed shares or specified units eligible for the benefit of grandfathering. The Finance Act, 2018 exempted gains made on the listed shares/specified units up to January 31, 2018, by introducing grandfathering mechanism for computation of LTCG for these shares. The ministry added that since the grandfathering is allowed by comparing different values inlcuding cost, sale price and market price as on January 31, 2018, for each shares/units, the scrip wise details for computing LTCG of these shares/units are required. “Without this reporting requirement, there may be situations where a taxpayer may not claim or wrongly claim the benefit of grandfathering due to lack of understanding of the provisions,” the statement added.

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Key GST tasks and implications in September 2020
The government has recently made some changes in the GST return filing system. The return forms proposed earlier called the RET forms with ANX (annexures) have been shelved. The existing GST returns in forms GSTR-1, GSTR- 2A and GSTR-3B are getting a complete makeover. GSTR-1 relates to returns filed by suppliers for all outward supplies. GSTR-2A relates to purchases of a business. While GSTR-3B is a return for payment of GST taxes. Let’s understand some key tasks that taxpayers must attend to during the month of September and also look at the new forms for taxpayers.

A new statement called GSTR-2B, which is applicable for all normal taxpayers has been launched. The information in GSTR-2B is being auto-populated from GSTR-1. Further, GSTR-1 details will be auto populated into GSTR-3B, to pay GST dues. GSTR-2B and auto-linking of GSTR-1 with GSTR-3B are being implemented from July and August 2020 return period onward.There is a shift in the need to reconcile purchase registers from GSTR-2A to GSTR-2B from July 2020 return period onwards. In this statement, taxpayers can view the summary of eligible and ineligible ITC with a further invoice-wise break up of purchases as well as imports. For instance, ITC for August 2020 return period will be taken based on the documents reported by their respective suppliers between 12th August and 11th September 2020.

GST Network issues FAQs on invoicing scheme ahead of Oct 1 launch
Delhi : E-invoicing will not be applicable for business-to-consumer supplies or import bills of entries, while special economic zone units, banking companies, insurers, goods transport agencies and passenger transport companies will be exempt from issuing them. The GST Network issued clarifications through frequently asked questions on Monday, ahead of the October 1 launch of the scheme for businesses with more than Rs 500 crore turnover. The scheme will introduce a standard invoicing standard for all companies. “Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement to enable reporting of invoices to Invoice Registration Portals (IRP) and obtain Invoice Reference Number (IRN), will be made by ERP or accounting and billing software providers in their respective software,” the IT backbone provider of GST said. Businesses will need to get the updated version having this facility, GTSN clarified. A dedicated mobile app to scan and verify validity of e-invoice quick response (QR) code will be provided by the government. “These FAQs not only clarify the key doubts of the industry on the subject matter, but also throw light on the modus-operandi of e-invoicing system,” said Abhishek Jain, tax partner at EY.

Starting this month, GST taxpayers to get more help in filing returns
Delhi : Starting this month, GST taxpayers will have the assistance of auto-generated documents detailing tax liability and availability of input tax credit (ITC) to make it easier for them to file their monthly summary returns (GSTR-3B), the Goods and Services Tax Network (GSTN) said on Wednesday. Usually, the taxpayers face two main issues while filing their GSTR-3B which are related to their liability and ITC. Till now, taxpayers were required to compute these values but now the system has been upgraded to enable linking of summary returns and the outward supply return or GSTR-1. Taxpayers above `1.5 crore turnover are required to file GSTR-1 by the 11th of every month and GSTR-3B by 20th. This linking of these two returns has been done for these taxpayers but the functionality for others, who are allowed to file GSTR-1 quarterly, would be enabled later. The linking will provide taxpayers with available credit they can claim. In this enhancement, system will auto-generate the invoice-wise ITC statement based on information furnished by the suppliers of the taxpayer in GSTR-1. “A new form GSTR-2B has been launched for this purpose which is, unlike GSTR-2A, a static statement and will be made available for each month on the 12th day of the succeeding month,” GSTN said. It added that linking of returns is expected to give GSTN a big edge in curbing under-reporting of liability and over-reporting of ITC which has been a major concern for the government.

CBDT deploys two-third of its workforce for faceless assessment scheme
Delhi : The Central Board of Direct Taxes (CBDT) has deployed two-third of its workforce to deal with the faceless assessment scheme. “Now, the National e-Assessment Centre (NeAC) which is headed by Principal Chief Commissioner of Income Tax is having a team of 32 Commissioners, 96 Principal Commissioner, 261 Assistant and Deputy Commissioners and 1274 Income Tax Officers,” senior Income Tax officers told ANI. Faceless Assessment Scheme was inaugurated as Phase 1 on October 7, 2019, with 58,320 assigned cases. On August 13 this year, Prime Minister Narendra Modi launched the platform for transparent taxation. All cases other than those assigned to the Central charges (Serious frauds, Major Tax Evasion, Sensitive and Search matters, Black Money and Benami cases) and International Tax charges to be done through faceless assessment. According to officials, Regional e-Assessment Centre (ReAC) has also been increased to 34 from 8 earlier. Last year, NeAC has 8 ReACs at New Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Ahmedabad, Pune and Bengaluru