CA.(Dr.) Arun Ahuja

49th GST Council Meeting LIVE Amnesty and Measures for facilitation of trade: 1. Extension of time limit for application for revocation of cancellation of registration and one time amnesty for past cases:  The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that - o the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days; o where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf for a further period not exceeding 180 days. The Council has also recommended that an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by...

  GST : Cancellation of registration without assigning proper reason was wholly mechanical and such cancellation on ground that petitioner was not present at time of spot visit was not sustainable [2023] 147 taxmann.com 313 (Gujarat)  Jatin Bhagwatlal Shah v. State of Gujarat Hon'ble HIGH COURT OF GUJARAT, Registration - Cancellation of registration - Registration was cancelled for not filing return for six months and alleging absence of conduct of business in principal place of business while assessee had shifted to new address -  HELD: A spot visit was conducted and registration was cancelled that petitioner was absent in the principal place of business at time of spot visit - Petitioner pointed out that he had already shifted to a new place - Cancellation of registration without assigning reason was wholly mechanical and stereotyped - Facts were explained by petitioner when he appeared before the authority - Order cancelling registration was cryptic without reasons - C...

 Changes Proposed in Budget 2023 –Charitable Trust and Institutions: The exemption to these trusts or institutions is available under the two regimes: (i) First Regime for any fund or institution or trust or any university or other educational institution or any hospital or other medical institution and   (ii) Second Regime for the trusts registered under section 12AA/12AB of the Act. Some of the important changes proposed in the Budgets are as follows: 1. Treatment of donation to other trusts: At present, the income of trusts/ institutions is exempt if they apply at least 85% of their income towards charitable/ religious purposes either by themselves or by donating to another trust/ institution with similar objectives, other than by way of the corpus. Further, trusts/ institutions are allowed to accumulate 15 % of their income each year. To curb the practice that at present multiple trusts/ institutions are formed to accumulate 15% at each stage, it is proposed to ...

 An increasing rate of TCS of certain remittances [Section 206C(1G)] Section 206C of the Act provides for TCS on business of trading in alcohol, liquor, forest produce, scrap etc. Sub-section (1G) of the aforesaid section provides for TCS on foreign remittance through the Liberalised Remittance Scheme and on sale of overseas tour packages. In order to increase TCS on certain foreign remittances and on sale of overseas tour packages, amendment is proposed in sub-section (1G) of section 206C of the Act.

  Extension of date of incorporation for an eligible start-up for exemption [Section 80-IAC]   The existing provisions of the section 80-IAC of the Act, inter alia , provides for a deduction of an amount equal to 100% of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years, beginning from the year of incorporation, at the option of the assessees subject to the condition that,   (i) the total turnover of its business does not exceed one hundred crore rupees,   (ii) it is holding a certificate of eligible business from the Inter-Ministerial Board of Certification, and   (iii) it is incorporated on or after 1-4-2016 but before 1-4-2023.   In order to further promote the development of start-ups in India and to provide them with a competitive platform, the Finance Bill, 2023 has proposed to amend the provisions of section 80-IAC of the Act so as to extend the period of incorporat...

  Bringing the non-resident investors within the ambit of section 56(2)(viib) to eliminate the possibility of tax avoidance [Section 56(2)(viib)]   Section 56(2)(viib) of the Act, inter alia , provides that where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to income-tax under the head „Income from other sources‟. Rule 11UA of the Income-tax Rules provides the formula for computation of the fair market value of unquoted equity shares for the purposes of the Section 56(2) (viib) of the Act.   Clause (viib) of sub section (2) of section 56 of the Act was inserted vide Finance Act, 2012 to prevent generation and circulation of unaccounted money through share premium received f...