30 april 1

NEWSLETTER 30TH APRIL 2023

In-Direct Taxes

GSTN mandates businesses with over Rs 100 crore turnover to upload e-invoice on IRP within 7 days

  • Businesses with turnover of Rs 100 crore and above will have to upload their electronic invoices on IRP within 7 days of the issue of such invoice with effect from May 1, GST Network has said. Currently, businesses upload such invoices on Invoice Registration Portal (IRP) on the current date, irrespective of the date of issue of such invoice.
  • In an advisory to taxpayers, GST Network (GSTN) said the government has decided to impose a time limit on reporting old invoices on the e-invoice IRP portals for taxpayers with aggregate annual turnover greater than or equal to Rs 100 crore.
  • To ensure timely compliance, taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting,” GSTN said.
  • In order to provide sufficient time for taxpayers to comply with this requirement, this new format would be implemented from May 1, 2023.
  • This restriction will apply to invoice, and there will be no time restriction on reporting debit/credit notes, it added.
  • Giving example, the GSTN said if an invoice has a date of April 1, 2023, it cannot be reported after April 8, 2023.
  • The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the 7-day window.

Aadhar Authentication

  • “Aadhaar Authentication” is a process by which the Aadhaar number along with demographic information (such as name, date of birth, gender etc) or biometric information (Fingerprint or Iris) of an individual is submitted to UIDAI’s Central Identities Data Repository (CIDR) for its verification and UIDAI verifies the correctness of the details submitted, or the lack thereof, on the basis of information available with it.
  • What are the different types of Aadhaar authentication?
    UIDAI provides authentication facility with different modes such as demographic, biometric (fingerprint, Iris or face) or One Time Password (OTP).

Late Fees reductions in GST

  • Reduced the late fee for GSTR-9 from FY 2022-23: Taxpayers whose Annual Aggregate Turnover (AATO) is up to Rs.5 cr shall pay Rs. 50 per day subject to a maximum of 0.04% of turnover in state or union territory.
  • GST Late Fees have been capped to Rs. 20000/- (CGST + SGST) for filing pending Annual Return (GSTR-9/9C) for Financial Years from 2017-18 to 2021-22, if the same is filed between April 01, 2023 to June 30, 2023

ITR1 & 4 JSON schema released

The Income Tax Department has released the JSON Schema for ITR-1 and ITR-4 for the Financial Year 2022-23 or Assessment Year 2023-20424. ITR-1 is applicable for individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income

How do I get a JSON file for my income tax return? Step-by-Step Guide to Download JSON Offline Utility

  1. Visit the Income Tax e-Filing Portal. Go to the Income Tax e-Filing Portal, i.e, the IT Portal 2.0.
  2. Downloads
  3. Download the Common Utility.
  4. Open the ITR Utility Folder.
  5. Utility will start installing.
  6. Now, click on Continue.
  7. File your ITR.

IEC to be updated before 30.06.2023

IEC(Import Export Code) is a mandatory identification document for carrying out any import/export activity in the Country.

A businesscannot make any import/export supply until and unless IEC has been obtained except under expressly provided exemptions.

Earlier after making an application for IEC, a separate identification number used to be issued by the department. But after the introduction of GST, the PAN of an individual or a business entity acts as his IEC number after making an application with DGFT(Directorate General of Foreign Trade). The application is approved on a self-certification basis using the authorised representative’s digital signature or using aadhar based KYC.

An IEC application must be filed online by a business entity on the DGFT portal. Some of the documents required for the IEC application are:

  1. PAN of the individual or business entity
  2. Valid Address Proof
  3. Bank account in the name of the business entity.

IEC registration, once taken, is valid for a lifetime. However, DGFT, vide its notification number 58/2015-2020 dated 12th February 2021, has amended the IEC-related provisions under chapter 1 & chapter 2 of the Foreign Trade Policy. As per the notification, an IEC holder has to update its IEC electronically every year from April to June. If there is no change in the IEC particulars, then also updation and confirmation are required from the IEC holder. For the FY 2021-22, 30th June is the last date to update or modify your IEC particulars.

If an IEC holder fails to update his IEC in the specified period, his IEC will become inactive and will only be activated after updation. It is essential to provide correct particulars at the time of registration/updation of IEC to save from any scrutiny proceedings.

Annual Renewal or Updation of IEC

You must be aware that the Import Export Code (IEC) is a PAN Based unique Id maintained by the DGFT, being a prerequisite for doing any transaction involving import or export. Though an IEC is a permanent code, the government of India, with effect from 2021, has come up with an annual updation requirement applicable to all persons having an IEC. The IEC updation is an online process and can be completed with the use of DSC or Aadhar based OTP for authentication. The purpose of this annual Renewal of the IEC is to have correct and updated particulars of the business and the users of the DGFT portal. It is essential to have the IEC updated on an annual basis with the correct OTP Verified email and mobile numbers of the business so that the database of the DGFT is correct and reliable.

The DGFT, in its Trade Notice No 01/2021-22 dated 29/04/2021, introducing the requirement of annual updation of the IEC, has made it mandatory with effect from the FY 2021-22, where the IEC holder must update the IEC during April to June .It is further provided that non-updation shall lead to the deactivation of IEC.

HSN Code Reporting in e-Invoice on IRPs Portal

  • We would like to bring to your attention notification no. 78/2020 Central Tax dated 15th October 2020. As per the above-said notification, it is now mandatory for taxpayers to report a minimum of six-digit valid HSN code for their outward supplies having AATO of more than 5 crores in any previous financial year.
  • We would like to inform you that this requirement has already been implemented in the GST system, and we are now in the process of implementing the same at IRPs portal in collaboration with our IRP partners including NIC. It is further suggested that in case wherever valid six digit HSN code is not available, a corresponding valid eight digit HSN code be reported instead of artificially creating six digit HSN code.
  • We understand that this requirement may require changes to your systems as well. We would like to assure you that we intend to provide sufficient time for taxpayers and IRP partners to make the necessary changes to comply with this requirement.
  • We will communicate the exact date of implementation to you shortly.

Foreign Trade Policy 2023 (FTP 2023)

  • Foreign Trade Policy 2023 (FTP 2023) contain 11 chapters and applicable from 01.04.2023. 11 Chapter incudes chapters on Legal Framework and Trade Facilitation, General Provisions Regarding Imports and Exports, Developing Districts as Export Hubs, Duty Exemption / Remission Schemes, Export Promotion Capital Goods (EPCG) Scheme, Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs), Deemed Exports, Quality Complaints and Trade Disputes, Promoting Cross Border Trade in Digital Economy, SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies and Definitions. Extract of Foreign Trade Policy 2023 (w.e.f. 1st April, 2023) is as follows:
  • The Foreign Trade Policy (FTP) 2023 incorporating provisions relating to export and import of goods and services, shall come into force with effect from 1st April, 2023 and shall continue to be in operation unless otherwise specified or amended. All exports and imports made up to 31.03.2023 shall, accordingly, be governed by the relevant FTP, unless otherwise specified.
  • Amendment to FTP
    Central Government, in exercise of powers conferred by Section 3 and Section 5 of FT (D&R) Act, 1992, as amended from time to time, reserves the right to make any amendment to the FTP, by means of notification, in public interest.

Hand Book of Procedures (HBP) and Appendices & Aayat Niryat Forms (ANF)

Director General of Foreign Trade (DGFT) may, by means of a Public Notice, notify Hand Book of Procedures, including Appendices and Aayat Niryat Forms or amendment thereto, if any, laying down the procedure to be followed by an exporter or importer or by any Licensing/Regional Authority or by any other authority for purposes of implementing provisions of FT (D&R) Act, the Rules and the Orders made there under and provisions of FTP.

  • Specific provision to prevail over the general
    Where a specific provision is spelt out in the FTP/Hand Book of Procedures (HBP), the same shall prevail over the general provision.
  • Online facility for e-Certificate of Origin (e-CoO)
    DGFT has created a common digital platform for handling Quality Control and Trade Disputes cases as per Chapter 8 of Foreign Trade Policy where all jurisdictional Indian Mission abroad and Regional Authorities of DGFT have been onboarded to work towards amicable resolution of disputes raised by Indian/Foreigner Importer/Exporter in online environment.

IT Initiatives in DGFT

DGFT has undertaken a number of IT Initiatives to enable a paperless, contactless and transparent environment for availing benefits under the export promotion schemes with a view to improve the ease of doing business. The details of these initiatives have been provided in Para 1.04 of Handbook of Procedures.

Bank Validation Status on GST Portal

Bank account validation has been integrated with the GST system based on a new advisory from the GST Network (GSTN) on 24th April 2023. It ensures the accuracy of the bank account details for all kinds of GST taxpayers.

Overview of the GSTN advisory on bank account validation in GST

The advisory has directed taxpayers to check bank validation for their GSTINs on the portal. The GSTN released the advisory on 24th April 2023, advising taxpayers to cross-check the bank account validation in GST. The taxpayer must take suitable action or wait, depending on the bank account validation status. Following are the types of bank account validation status-

  • Success
  • Failure
  • Success with remark
  • Pending for verification

The advisory also informs that taxpayers can add or delete bank accounts later. Bank account validation in GST is crucial for several reasons. Most importantly, integrating bank accounts with the GST system allows the seamless online processing of GST refunds into the correct bank accounts declared on the GST portal. Hence, every taxpayer under GST must correctly report their active bank accounts on the GST portal, especially if they missed doing the same at the time of GST registration.

How to check bank validation in the GST portal?

Follow the steps below to check the bank account validation status with the GST system.

Step 1: Log in to the GST portal.

Step 2: On the top-right corner of the dashboard, click on the down arrow against the account name. After that, click on the ‘My Profile’ option from the drop-down menu, as shown below.

Step 3: Click on the ‘Bank Account Status’ tab from the list appearing on the left-hand side of the profile screen under the ‘Quick Links’ section.

Step 4: The ‘Bank Account Status’ screen appears with the list of bank accounts added.

Step 5: If the user hovers the mouse over the icon, they can view the instruction of what the icon means as follows. They can take action suitably, depending on their respective status

MCA

In exercise of the powers conferred by sub-section (1), (2) and (4) of section 248 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, namely:-

  1. Short title and commencement.-
    1. These rules may be called the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023.
    2. They shall come into force on lst May, 2023.
  2. In the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 (hereafter referred to as the said rules), in rule 4,-
    1. for sub-rule (1), the following sub-rule shall be substituted, namely:-
      “(1) An application for removal of name of a company under sub-section (2) of section 248 shall be made to the Registrar, Centre for Processing Accelerated Corporate Exit in Form No. STK-2 along with fee of ten thousand  rupees.”;
    2. (ii) in sub-rule (3), clause (iv) shall be omitted;
    3. after sub-rule (3) the following shall be inserted, namely:-
      “(3A) The Registrar, Centre for Processing Accelerated Corporate Exit established under sub-section (1) of section 396, shall be the Registrar of Companies for the purposes of exercising functional jurisdiction of processing and disposal of applications made in Form No. STK-2 and all matters related thereto under section 248 having territorial jurisdiction all over India.”.
  3. In the said rules, for Form No. STK-2, Form No. STK-6 and Form No. STK-7 Forms shall be substituted.
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About SBS

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