DIRECT TAXES UPDATES
Recent circulars/ notifications/ rules/ clarifications/News
♦ CBDT extends limitation dates for passing of assessment or reassessment orders under the IT Act, that are getting time barred on 31st March, 2021 due to extension of limitation date by the notification dt. 31st December, 2020 has been extended to 30th April, 2021 (Notification No. 10/2021-Income Tax/S.O. 966(E) dated 27/02/2021)
♦ CBDT further extends the date for filing of declarations under the Vivad Se Vishwas (VSV) Act, 2020 to 31st March, 2021. Date for payment without additional amount under VSV extended to 30th April, 2021 (Notification No. 09/2021/S.O. 964(E) dated 26/02/2021)
♦ CBDT notifies revised procedure for Faceless Assessment (Notification No. 08/2021-Income Tax /S.O. 813(E) dated 22/02/2021)
Income Tax Compliance calendar – March 2021
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Things to remember |
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| Due Date | Particulars |
| 7th March 2021 | Payment of TDS/TCS deducted /collected in February 2021 |
| 31st March 2021 | Extended due date to file TDS return for AY 2020-21(Extended due date)
-Filing ITR for AY 2020-2021 with penalty for both audit and non-audit cases. -Payment of Tax under Vivad se Vishwas act, 2020 -Last date to revise ITR for the financial year 2019-20 -Last date to link Aadhar with PAN |
Important cases decided
♦ ITAT restricts addition for on-money received on sale of flats to 12% (M/s. Bhalchandra Trading P. Ltd. Vs DCIT (ITAT Mumbai)
♦ Provision for actual delays and defaults is ascertained liability & allowable (Huawei Telecommunications (India) Pvt. Ltd.Vs. DCIT (ITAT Delhi)
♦ AO can look into ESOP sale income, based on form 16 during IT return process (Dr. S. Muthian Vs ACIT (ITAT Chennai)
♦ An independent building having multiple residential units can be treated as one residential house for section 54F (Halesh K.C. Vs ITO (ITAT Bangalore)
♦ Section 271(1)(c ) is not leviable if there is no concealment in ITR (Balee Plastics Pvt. Ltd. Vs ITO (ITAT Mumbai)
INDIRECT TAXES UPDATES
GST Compliance Calendar – Returns to be filed in the M/O March 2021
| GST Return Form Name | Filing Period | Due Dates in March 2021 |
| GSTR-1 (Outward return) | Monthly (February 2021) | 11th March 2021 |
| GSTR 3B (Tax summary return) | February ‘2021 | 20th March 2021 ( In case Aggregate turnover more than or equal to Rs 5 crore in the previous Year)
22nd / 24th March 2021 (in case Aggregate turnover less than or equal to Rs 5 crore in the previous financial year registered in X /Y category respectively. |
| GSTR 5A (online information & data access) | February ‘2021 | 20th March 2021 |
| GSTR 05 (by non taxable resident persons) | February 2021 | 20th March 2021 |
| GSTR 06 (ISD) | February ‘2021 | 13th March 2021 |
| GSTR 07 (TDS) | February’2021 | 10th March 2021 |
| GSTR 08 (TCS) | February 2021 | 10th March 2021 |
| Annual Returns | FY 2019-20 | 31st March 2021 |
Annual Retunes (GSTR-9 and GSTR(C) for FY 2019-20 has been extended to 31st March 2021- Department of revenue update this vide Press Note dated 28th Feb ‘2021 that in view of the difficulties expressed by the taxpayers in the meeting time limit to file by 28th Feb’2021.
Suspension/Cancellation of GST registration – CBIC notifies SOPs for CGST Rule 21A(2A) Central Board of Indirect Taxes and Customs (‘CBIC’) has notified standard operating procedures for implementation of the provision of suspension of registrations under sub-rule (2A) of Rule 21A of the Central Goods and Services Tax Rules, 2017. Said Rule provides for suspension of the GST registration when on comparison of GSTR-3B and GSTR-1, significant differences or anomalies are seen indicating contravention of the provisions of the CGST Act or the rules made thereunder. Circular No. 145/01/2021-GST, dated 11 February 2021, issued for the purpose provides guidelines for implementation of the provision till the time an independent functionality for Form REG-31 is developed on the portal
J&K – 100% GST linked incentive to be provided under New Central Sector Scheme for Industrial Development of Union Territory of J&K: The Ministry of Commerce and Industry has on 19 February 2021 notified a new Central Sector Scheme for Industrial Development of Union Territory of Jammu & Kashmir. The Scheme which will be effective from 1 April 2021 till 31 March 2037, provides for Capital Investment Incentive (CII), Capital Interest Subvention (CIS), Goods & Services Tax Linked Incentive (GSTLI) and Working Capital Interest Subvention (WCIS) to all manufacturing units (except those which manufacture certain products as provided in the negative list) and service sector units for services listed in the positive list. Under GSTLI, all eligible units will be granted Goods & Services Tax Linked Incentive equal to 100% of gross payment of GST, i.e. GST paid through cash and input tax credit for a maximum period of 10 years. However, it may be noted that GST paid on exported goods or services will not be counted towards eligible incentive amount. According to the Press Release of the Ministry, the scheme is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentive to offset the disadvantages that the UT of J&K face.
Cases Law
Officers of CERA Cannot Audit a Private Entity under GST- Bombay High Court – (Kiran Gems Private Limited (Writ Petition No. 1135 of 2019).
ITC not deniable if GSTR-3B is filed but TRAN-1 not filed: (Neptune Plastics v. Union of India & others – 2021 VIL 98 J&K)
E-way bill need not be cancelled if transportation of goods not takes place within 24 hours of its generation: (Anandeshwar Traders v. State of U.P. and others – 2021 TIOL 240 HC ALL GST )
Penalty equivalent to tax not imposable for lapses in e-way bill of tax-paid goods: (Sri Gopikrishna Infrastructure Pvt. Ltd. v. State of Tripura and others – 2021 TIOL 121 HC TRIPURA GST)
No detention on mere suspicion of mis-classification of goods: (Podaran Foods India Private Limited v. State of Kerala and others – 2021 VIL 30 KER)
Customs
Job work and out-sourcing for manufacture on job work allowed on goods imported under IGCR Rules, 2017: Central Board of Indirect Taxes (‘CBIC’) has issued Notification 9/2021-Cus. (N.T.), dated 1 February 2021 to give effect to the draft amendment of May 2019 to the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (‘IGCR Rules, 2017’). The amended Rules allow job work activity on imported goods and out-sourcing for manufacture of goods on job-work. Rule 6A has been inserted explaining procedure for allowing job work on imported goods. The maximum period for which the goods can be sent to the job-worker is six months from the challan date. Further, imported capital goods can now be cleared after being used for the specified purpose on payment of duty, along with interest, on the depreciated value, following the straight-line method, at the specified rates.
IGST refund in case of mismatch between GSTR-1 and GSTR-3B – Interim solution extended for shipping bills filed between 1 April 2019 till 31 March 2021: CBIC has extended the interim solution as stated in its Circular No. 12/2018-Cus., in respect of IGST refunds where there is a mis-match between GSTR-1 and GSTR-3B, to shipping bills filed from 1 April 2019 till 31 March 2021. As per Circular No. 4/2021-Cus., dated 16 February 2021, the corresponding CA certificate evidencing that there is no discrepancy between the IGST amount refunded on exports in terms of the Circular and the actual IGST amount paid on exports of goods for the period April 2019 to March 2020 and April 2020 to March 2021 needs to be furnished by 31 March 2021 and 30 October 2021, respectively.
Cases Law
Correction of mistake or error in self-assessed bill of entry is permissible: (Dimension Data India Pvt. Ltd. v. Commissioner – 2021 TIOL 224 HC MUM CUS)
Demurrage charges not payable when goods seized/detained by Customs authorities (Goodmatric Export Pvt. Ltd. v. UOI – 2021 (1) TMI 871-BOM HC)
Valuation – Related person – Evidence of influence in declared price required before review (Hanil Automotive India Pvt. Ltd. v. Commissioner – 2021 TIOL 61)
Excise & Service Tax Single transaction is covered under definition of ‘casual trader’: (Commercial Taxes Officer v. Bhagat Singh – 2021 VIL 15 SC)
Sabka Vishwas (LDR) Scheme – Statement by Director during enquiry is admission of liability: (Jai Sai Ram Mech & Tech India P. Ltd. v. Union of India – 2021 VIL 122 BOM ST).
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Information Source – M/s LKS, cbic.gov.in., various internet websites including Income tax website, Dailyhunt, Deloitte, livemint.com, related links and various notifications, circulars, orders, press releases and other sources-many thanks to all.
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