Professional Updates

What is compulsory registration under GST? In the GST era, businesses whose aggregate turnover exceeds specified threshold limit is required to register as a normal taxable person under section 22 of the CGST Act. However, there are certain cases under section 24 of the CGST Act, where registration under GST is mandatory irrespective of amount of aggregate turnover.  The category of persons to whom GST registration is mandatory is as follows: • Person making inter-state taxable supply of goods . • Casual taxable persons making taxable supply • Persons who are required to pay GST under reverse charge mechanism on inward supplies received  • Non-resident taxable persons making taxable supply • E-commerce : o Electronic Commerce Operator who is required to collect tax at source under section 52  o Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to c

Udyam registration (Udyog Aadhar) applicable for traders! MSME registration for traders ! In recent times, for boosting small-scale businesses i.e. MSME sector, the Government of India launched various schemes and incentives, subsidized loan etc. To avail various MSME benefits Government started Udyog Aadhaar Registration now known as Udyam Registration . Earlier, these documents were known as SSI registration or MSME registration.  Since the launch of Udyog Aadhar or Udyam Registration almost every bank or other departments ask for MSME certificate/ Udyog Aadhar or Udyam registration. Even for opening bank accounts of small proprietary firms banks are asking for MSME registration / Udyog aadhar, without knowing whether MSME registration applicable to Traders or not?  Being the aadhar of small business/MSME, businessman used to get it by any means whether such registration is really required for his/her business or not.  Can trader register under MSME? Traders were barred from MSME reg

If your GST Refund struck due to SB005 error CBIC provides permanent mechanism to resolve invoice  mismatch. What is SB005 error? SB005 error is the most common error faced by the exporters, which arises due to mismatch of invoice number as declared in the Invoice Table in the Shipping Bill and that declared in the GST- 1 for the same invoice. Very common reason for mismatch can be due to typing mistake while filing data in GSTR-1 or in the Shipping Bill. CBIC issued number of circulars to address issue of SB005 error. There have been several representations from the Trade to extend the Officer Interface to resolve the genuine error committed during data entry. Now vide Circular No. 05 /2021-Customs dated February 17th, 2021 it has been decided as a measure of trade facilitation to keep the Officer Interface available on permanent basis to resolve such errors on payment of specified fee i.e. Rs 1000/ - by the exporters. Read here full text of Circular No. 05 /2021-Customs:

Application of certain provision of the Companies Act 2013 to Limited Liability Partnerships Stakeholders are hereby informed that the Central Government, in Ministry of Corporate Affairs, under section 67(1) of LLP Act, 2008 will be extending Sub- sections (1) to (11) of section 90, Sub- sections (1) and (2) of section 164 , Sub-sections (1) and (3) to (6) of section 165, Sub-section (1) to (3) of section 167, Sub-section (5) of section 206, sub-section (3) of section 207, Sub-sections (1) to (3) of section 252 and Sub-sections (1) to (4) of Section 439 of the Companies Act, 2013 to limited liability Partnerships with modification and adaptation soon. Accordingly, limited liability Partnerships, Partners and Designated partners thereof are advised to take note of the same for appropriate action. Summary of the above news in tabulated form Section Sub-section Description 90 (1) to (11) Investigation of beneficial ownership of sha

Submit Letter of Undertaking (LUT) for FY 2021-22 by March 31, 2021   U nder GST Law, Export of goods or services can be made without payment of integrated tax under the provisions of rule 96A of the Central Goods and Services Tax Rules, 2017 (the CGST Rules). Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero-rated supplies. 

Update IEC code every year, else face de- activation i.e. KYC of IEC Code Directorate General of Foreign Trade (DGFT)  has issued notification 58/2015-20 dated 12th February 2021, amending of Importer-exporter code (IEC) related provisions. Vide the notification 58/2015-20 it has been provided that, IEC holder has to ensure that details in IEC be updated annually between Apr-June period. Even though there are no change in thee IEC particulars same has to confirm annually. I.e. the notification 58/2015-20 provide for annual KYC of IEC Code.  As per the notification if IEC holder failed to update particulars within prescribed time, IEC code will be de-activated. Upon successful updation of IEC will be re-activated. Notification also provide for scrutiny of IEC. IEC may be flagged for scrutiny , which need to address on time. Else IEC may be deactivated  DGFT vide Public Notice No. 49/2015-20 dated March 31, 2021 w.r.t. amendment in Appendix-2K of the Foreign Trade Policy, 2015- 2020 pro

Whether GST Audit applicable for FY 2019-20? Union government in Finance Bill 2021 proposed to omit mandatory requirement of furnishing a reconciliation statement (GSTR-9C) duly audited by a practicing chartered accountant or cost accountant. Government proposes filing of the annual return (GSTR-9) on self-certification basis with a reconciliation statement. Budget speech created confusion amongst taxpayers and professionals about applicability of GST audit for FY 2019-20 for which due date is 28/02/2021. Many stakeholders start asking is GST Audit abolished? GST audit abolished for FY 2019-20? What about form GSTR-9/9C? Gst audit applicability for FY 2019-20 as per budget 2021 Based on queries received, CBIC clarified that GSTR9C duly audited by specified professionals is applicable for FY 2019-20 as changes will come into effect from a date to be notified later. For FY 2019-20, the existing provisions shall continue. It is important to note that, only certification by specified prof

Is GST registration mandatory for interstate supply of services? In the current digital era, numerous small service providers and freelancers offer their services online, catering to clients both within their home states and abroad, all from the comfort of their homes. However, it's essential to consider the tax implications associated with conducting business in this virtual landscape. A very common and important question arises whether such interstate supply of services required GST registration if turnover is below ₹ 20 lakh or (₹ 10 lakh for special category states)?  As, we knows GST registration is not mandatory ( except certain cases u/s 24 of CGST Ac t)  if aggregate turnover in a financial year does not exceeds threshold limit. CBIC issued Notification No. 10/2017 – Integrated Tax dated 13/10/2017 to address the concern. Crux of the notification is as follows: Person making interstate supply of taxable services and having all India pan basis turnover up to threshold of