#Reply to GST Assessment

[noticegstka]

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[bhattandjoshiassociates-blog]

Critical Issues Under GST - Care to be Taken by Taxpayers

A comprehensive guide to the challenges and solutions for GST compliance Introduction GST, which stands for Goods and Services Tax, is a comprehensive indirect tax system that was introduced in India in 2017. It replaced various taxes levied by the central and state governments, such as excise duty, service tax, VAT, etc. GST aims to simplify the tax structure, eliminate cascading of taxes, widen the tax base, and promote ease of doing business. However, GST also poses many challenges and complexities for taxpayers and professionals. There are various aspects of GST compliance that require utmost attention and caution from taxpayers. Non-compliance or ignorance of GST laws and rules can result in heavy penalties and litigation. This article discusses the critical issues under GST that taxpayers should be aware of and take care of. It covers various topics such as scrutiny, audit, returns, appeals, input tax credit, e-way bills, e-invoicing, and more. It also provides some tips and suggestions for taxpayers to avoid pitfalls and disputes in GST. GST Scrutiny & Audit GST scrutiny and audit are the processes by which the tax authorities verify the correctness of the returns filed by the taxpayers and the taxes paid by them. The tax authorities can select any case for scrutiny or audit on various parameters, such as excess claim of input tax credit, short payment of tax, payment of interest for delayed payment of tax, mismatch in GST TDS data, etc. The tax authorities issue notices to the taxpayers online through the GST portal or email, asking them to furnish information or documents related to their returns or transactions. The taxpayers are required to respond to the notices within a specified time limit, failing which the tax authorities can pass ex-parte orders against them. The taxpayers should be alert and vigilant about any notice issued by the tax authorities and respond to them promptly and accurately. The taxpayers should also keep proper records and documents to support their returns and claims. The taxpayers should also consult their tax advisors or professionals before submitting any reply or information to the tax authorities. Correct Filing of GST Returns GST returns are the periodic statements filed by the taxpayers online through the GST portal, declaring their outward supplies, inward supplies, tax liability, input tax credit, etc. The taxpayers are required to file different types of returns depending on their turnover, registration status, nature of business, etc. The taxpayers are also required to file annual return and reconciliation statement at the end of each financial year. The correct filing of GST returns is crucial for ensuring compliance and avoiding penalties. Many taxpayers are not serious in filing accurate returns and they are getting penalized in future. One instance is of reporting taxable outward supply, which if not reported in the same month attracts payment of interest even if paid through input tax credit in future period. The rule 88B read with section 50 (1) of CGST Act is a draconian provision for genuine taxpayers who made unintentional mistakes in filing GST returns. The taxpayers should be careful and diligent in filing their GST returns timely and accurately. The taxpayers should also reconcile their returns with their books of accounts and invoices. The taxpayers should also rectify any errors or omissions in their returns within the prescribed time limit. The taxpayers should also use the online tools and software available on the GST portal or from third-party service providers to facilitate their return filing process. Timely Filing of GST Appeals GST appeals are the legal remedies available to the taxpayers who are aggrieved by any order passed by the tax authorities under GST law. The taxpayers can file appeals against any order relating to assessment, refund, penalty, interest, etc. The appeals can be filed before different forums depending on the hierarchy and jurisdiction of the order. The first appeal can be filed before the first appellate authority within three months from the date of communication of the order. The second appeal can be filed before the Appellate Tribunal within three months from the date of communication of the order passed by the first appellate authority or an order passed by the Commissioner (Appeals) under section 107(6) of CGST Act. The third appeal can be filed before the High Court within 180 days from the date of communication of the order passed by the Appellate Tribunal or an order passed by National Appellate Authority for Advance Ruling under section 101(3) of CGST Act. The fourth appeal can be filed before the Supreme Court within 90 days from the date of communication of the order passed by High Court or an order passed by National Appellate Authority for Advance Ruling under section 101(4) of CGST Act. The timely filing of GST appeals is important for safeguarding the rights and interests of the taxpayers. The tax authorities have passed a large number of ex-parte assessment orders against the taxpayers in many cases, which the taxpayers themselves were not aware of. The GST provision allows filing of GST appeal within three months along with one month delay condonation. However, after that, the appellate authority has no power to condone the delay howsoever genuine the ground be for the delay. The only recourse left is to knock the doors of High Court for getting relief. The taxpayers should be careful and vigilant about any order passed against them and its timeline for filing GST appeals. The taxpayers should also keep track of their appeals and their status online through the GST portal or email. The taxpayers should also seek legal advice or representation from tax experts or lawyers before filing or pursuing any appeal. Proper Claim of Input Tax Credit. Input tax credit (ITC) is the credit available to the taxpayers for the tax paid on their inward supplies of goods or services or both, which are used or intended to be used in the course or furtherance of their business. ITC is one of the key features of GST, which eliminates the cascading effect of taxes and reduces the tax burden on the taxpayers. However, ITC is also one of the most contentious and litigious issues under GST. A lot of cases are being observed where penal action is taken by the department on the grounds of ITC violation. Non-payment of tax by supplier, cancellation of suppliers’ GST number, non-filing of GST return either by supplier or recipient, claim of ineligible input credit, delay claiming of input credit by recipient after the time limit prescribed in section 16 (4) of CGST Act, etc. are giving sleepless nights to the genuine taxpayers. The taxpayers should be cautious and prudent in claiming ITC under GST. The taxpayers should ensure that they fulfill all the conditions and restrictions prescribed under GST law and rules for availing ITC. The taxpayers should also verify and match their ITC with their suppliers’ returns and invoices through the online facility provided on the GST portal. The taxpayers should also rectify any discrepancies or mismatches in their ITC within the prescribed time limit. E-way Bill E-way bill is an electronic document generated on the GST portal for the movement of goods from one place to another. E-way bill is mandatory for inter-state movement of goods worth more than Rs. 50,000 and for intra-state movement of goods as per the rules notified by each state. E-way bill contains details such as invoice number, date, value, quantity, HSN code, transporter details, vehicle number, etc. E-way bill is a tool to monitor and track the movement of goods under GST. A lot of cases are being observed where penal action is taken by the department on the grounds of e-way bill violation. Non-generation or wrong generation or non-updation or non-cancellation or non-extension or non-acceptance or non-rejection or non-printing or non-carrying or non-production or non-verification or non-compliance or non-reporting or non-furnishing or non-disposal or non-discharge or non-disposition or non-delivery or non-distribution or non-dispatch or non-declaration or non-disclosure or any other irregularity related to e-way bill can attract penalty under section 122 or 129 or 130 or 132 or 133 or 134 or 135 or 136 or 137 or 138 or 139 or 140 or 141 or 142 or 143 or 144 or 145 or 146 or 147 or 148 or 149 or any other section of CGST Act. The taxpayers should be very careful and diligent while dealing with e-way bills under GST. The taxpayers should ensure that they generate and update e-way bills correctly and timely as per the GST law and rules. The taxpayers should also carry and produce e-way bills whenever required by the tax authorities. The taxpayers should also use the online tools and software available on the GST portal or from third-party service providers to facilitate their e-way bill process. Other Issues Apart from the above-mentioned issues, there are some other issues that taxpayers should be aware of and take care of under GST. Some of these issues are: - E-invoicing: E-invoicing is a system where invoices are generated electronically on a common portal for B2B transactions. E-invoicing is mandatory for registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds Rs. 50 crores. E-invoicing aims to standardize and automate the invoice generation process and reduce errors and frauds. - Business Promotional Expenses: Business promotional expenses are expenses incurred by a registered person for promoting his business, such as advertisement, sponsorship, free samples, gifts, etc. Business promotional expenses are generally not eligible for ITC under GST as they are not used in the course or furtherance of business. However, there are some exceptions and conditions for availing ITC on such expenses as per GST law and rules. - Annual Return and Reconciliation: Annual return is a consolidated statement filed by a registered person at the end of each financial year, declaring his annual turnover, tax liability, ITC, etc.         Read the full article

[mygstrefund]

Step-by-Step Guide to GST Refund

The GST Refund Service process requires the citizen to follow elaborate advances, submit records and statement whenever expected, to the GST experts for guaranteeing a GST discount. The discounts under GST can be the money balance in the electronic money record kept in overabundance or expense paid unintentionally or the collected Info Tax break (ITC) unfit to be used for charge installments because of zero-evaluated deals or altered charge structure.

The structures wherein a GST discount is guaranteed fluctuates as per the sort of GST discount being guaranteed. For example, the discount of IGST in sends out (with charge installment) can be guaranteed by just announcing subtleties in the GSTR-1 and GSTR-3B. While the discount of money paid in overabundance of the electronic money record can be asserted by applying in structure RFD-01. Hence, the means or the interaction varies with the sort of GST discount.

Latest Updates on GST Refund

05th July 2022 Taxpayers can exclude the COVID pandemic period (1st March 2020 and 28th February 2022) while calculating the time limit for filing GST refund applications under Sections 54 or 55 of the CGST Act. 1st February 2022 Budget 2022 update- 1. Section 54 is amended to provide that refund claim of any balance in the electronic cash ledger can be made in a particular form and manner prescribed. 2. The time limit to claim refund by UN agencies is now two years from last day of quarter when supply was received instead of six months. 3. The restriction to refund taxpayers for tax defaults, that earlier applied to unutilised ITC refund, is now extended to other types of refunds. 4. The relevant date to file refund claim application for supplies to SEZ is clarified in new sub-clause (ba) of clause (2) of the explanation. 1st May 2021 Where the time limit to pass orders for rejecting any refund claim fully or partly falls between 15th April 2021 and 30th May 2021, it is extended. The extended time limit shall be later of two dates: (1) 15 days after reply to notice OR (2) 31st May 2021

Steps to submit a refund pre-application form

Discount pre-application is a structure that citizens should finish up to offer data about their business, Aadhaar number, personal expense subtleties, send out information, use and speculation, etc. Citizens should record this pre-application structure for a wide range of GST discount. This structure need not be marked and can't be altered once submitted. Consequently, the client should be cautious while entering the subtleties.

The two stages engaged with recording the GST discount pre-application structure are as per the following:

Stage 1: Sign in to the GST gateway, go to the 'Administrations' tab, click on 'Discounts' and select the 'Discount pre-application structure' choice.

Stage 2: On the page showed called 'Discount pre-application structure', fill in the subtleties asked, and click on 'Submit'. An affirmation of accommodation will be shown on the screen.

The accompanying subtleties should be accounted for:

Nature of business - Maker, shipper exporter, merchant, and specialist co-op Date of issue of IEC (just for exporters) - Those applying for a discount by virtue of products (without installment of duty) should outfit the date of issue of the Import Commodity Testament. Aadhaar number of the essential approved signatory is compulsory. Worth of commodities made in the FY 2019-2020 (just for exporters) - This should be registered at the GSTIN level and not Container level. Personal duty paid in FY 2019-2020 Advance assessment paid in FY 2021-2022. Capital consumption and venture made in FY 2019-2020

Discount interaction of IGST paid on commodity of products (with charge installment) Sends out are considered as 'Zero-evaluated supplies' under GST. Consequently, the duty paid (IGST and cess, if any) is qualified for a discount by the exporter. Since the quantum of exchanges can be colossal in exporters, the GST entrance works with a less difficult finish up of GST discount. No different application in structure RFD-01 is expected for this situation. Certain circumstances should be fulfilled by the exporter for a GST discount.

First and foremost, Table 6A in GSTR-1 should be topped off with Delivery bill subtleties connected with trade exchanges (with installment of expense) and recorded by the due date. Furthermore, the outline subtleties should be accounted for in thing 3.1 (b) of Table 3.1 of GSTR-3B, the relating charge should be paid, and the return ought to be documented by the due date recommended by GST regulation.

In the commodity receipt information gave under Table 6A of Structure GSTR-1, the right and complete delivery bill number, transporting charge date, and port code subtleties should be given. It ought to be noticed that send out exchanges did in a duty period should be documented in the GSTR-1 and GSTR-3B of a similar important expense period. Care should be taken to report the complete of IGST and cess as a figure equivalent to or higher in Table 3.1 of GSTR-3B than Table 6A and Table 6B of GSTR-1.

The GST authority considers the delivery bill as a discount application. The GST entryway sends trade subtleties to the ICEGATE as uncovered on GSTR-1. Likewise, an affirmation that GSTR-3B was petitioned for the pertinent duty time frame is sent. The Traditions framework looks at the data on GSTR-1 to the data on their delivery bill and Product General Manifest (EGM) and afterward handles the discount.

The ICEGATE framework will impart installment data to the GST entrance once the discount installment has been credited to the citizens' records. The GST gateway will impart the data to the citizens by SMS and email.

Moves toward apply in structure RFD-01 for most sorts of GST discount RFD-01 should be petitioned for the accompanying kinds of GST discount claims:

Abundance cash balance from the electronic money record or overabundance charge installment. IGST paid on product of administrations (with installment of duty). Gathered ITC because of commodities of labor and products without installment of duty. Collected ITC because of provisions made to SEZ unit/SEZ engineer (without installment of expense). ITC collected because of upset charge structure (charge on inputs higher than a duty on yields). Assuming a beneficiary of considered trades has paid the duty on internal supplies that qualify as considered sends out and has guaranteed ITC for the expense paid in their electronic credit record, the beneficiary of these considered products is qualified for a discount of the duty sum paid (on a condition that the provider of such considered trades doesn't guarantee a discount). Charge paid on provisions made to SEZ units/SEZ engineers (with installment of expense). Charge paid on an intrastate stockpile later held as highway supply as well as the other way around. On the off chance that a provider of considered sends out paid charge on considered supplies without charging and gathering charge from the purchaser of considered trades, then he would be qualified to guarantee it as a discount (on a statement that the beneficiary or purchaser of such considered trades doesn't guarantee a discount). Because of Evaluation or Temporary Appraisal or Allure or some other request. There is likewise an arrangement for guaranteeing a discount on 'Some other ground' in RFD-01. Care should be taken to announce predictable data of the solicitations in both GSTR-1, where it applies, and RFD-01. A declaration by a sanctioned bookkeeper/cost bookkeeper should be submitted along in specific cases.

Follow the beneath moves toward record a discount application in RFD-01: Stage 1: Sign in to the GST gateway and go to the 'Administrations' tab, click on 'Discounts' and select the 'Utilization of discount' choice.

Stage 2: In the page that shows up, select the justification for discount or the kind of discount and snap on 'Make discount application'.

Stage 3: Select the period for which a discount is to be applied and select 'Yes' or 'No' on the exchange box 'to document a nothing discount'. n instance of nothing discount application, the citizen can mark of approval the announcement and continue to record utilizing either DSC or EVC.

This step isn't appropriate in kinds of discounts, for example, overabundance cash balance in the record, intrastate stock later held as highway supply as well as the other way around, appraisal or temporary evaluation or allure or some other request.

Stage 4: Enter the subtleties on the pertinent page that gets shown, in view of the kind of discount chosen in the past step.

Type 1: Abundance cash balance in electronic money record Type 2: Overabundance charge paid through GSTR-3B Type 3: Gathered ITC because of products of labor and products without installment of assessment Type 4: Collected ITC because of provisions made to SEZ unit/SEZ engineer (without installment of expense) Type 5: ITC gathered because of transformed charge structure.

For Following Issues Visit:- 

GST Refund Sanctioned but not Received

GST TDS Refund

[charteredaccountantjanakpuri]

GST Suspended? What to do Next?

The national GST laws have enabled a strong network of compliance. GST laws are regularly amended to ease up the GST regime and make the regulation fair for all. However, simultaneously, the government is also focusing on making the GST taxation laws more stringent than ever before. A failure to comply with GST regulations may lead to the cancellation/suspension of GST registration which one cannot afford to let happen as it is not lawful to make any taxable supply after the suspension of GST Registration. So, let us take a more in-depth look at the reasons and possible measures to help you deal with this GST registration suspension situation.

 Reasons behind Cancellation/Suspension of GST Registration

 As a taxpayer, you may wonder why a GST registration may be cancelled or fear of getting your registration suspended. However, it is to be noted that no registration is cancelled without valid reasons. So, it becomes very important to be extra-cautious to watch out for any possibility of GST Registration cancellation.

 Here are some of the reasons why your GST registration may be suspended-

 1: In case there is a change in the constitution of your business. 

 2: In case a business is discontinued, transferred, merged or closed down. 

 3: It may be suspended if the taxpayer fails to abide by the provisions of the CGST Act.  

4:  The taxpayer may voluntarily apply for a cancellation of registration, and in that case, the proper officer puts the GST into suspension.

 5: If the GST registration was obtained using fraudulent methods, the officer has the right to suspend the registration.

6:  Registration also gets suspended if it is found out that the business is being operated from a place other than the one mentioned. 

7:  As per GST regulations, a failure to start the business within six months of GST registration may lead to a cancellation/suspension of the registration.

8:  If the taxpayer is found to be issuing invoices without supplying goods or services

 9: If the taxpayer fails to furnish valid bank account details, the registration can be suspended after a warning.

 10: If a person who is covered under the composition scheme has not furnished his returns for three continuous tax periods 

11:  In case a person conducting business, other than under the composite scheme, has not furnished the returns for a period of six months. 

 Understanding suspension of GST registration

 An authorised officer can only suspend registration if he has reasons to consider that the registration is liable to be cancelled. The officer may offer a warning or a chance to rectify the situation before the GST is suspended. 

The taxpayer is intimated through Form GST REG-31 regarding discrepancies. The form also mentions that GST may be cancelled if the taxpayer does not provide a valid explanation. Further, the officer can still order a suspension if, in his opinion, the explanation is found to be incomplete or unsatisfactory. 

 Consequences of GST Registration Suspension

 In case a GST registration of a person is suspended, the business entity may not be able to pay taxes or file for a GST return. If you are under the category of the taxpayer and your GST registration has been suspended, you must immediately contact an assessing officer and request for activation of GSTIN. A failure to do the same in time can lead to cancellation of registration and further penalties due to non-compliance with GST regulations. 

 What to do after Suspension of GST Registration?

 In case the taxpayer has not voluntarily applied for cancellation of registration and yet have received a notice, here are some of the things you can consider-

 1: On receiving a notice for discrepancies

 If a taxpayer receives a notice for discrepancies, he needs to furnish a reply to the tax authority within one month of receiving the notice. The reply should include details of all the corrective measures and actions taken to comply with the non-compliances and the reasons as to why the registration should not be cancelled. 

 2: On receiving a notice of cancellation

 In this scenario, one needs to reply to the tax officer using Form GST Reg 18 online through the official GST portal within one month of getting the notice. 

 3: Receiving a notice due to non-filling of returns

 Non-filing of returns is the most common scenario. If the notice for suspension or cancellation of registration is issued on the ground of non-filing of returns, the said person may file all the due returns and submit the response. 

 How To Activate suspended GST Registration?

 As a registered taxpayer, you can apply for reactivation of your GST registration as per GST laws within 30 days. But this can only be done when an authorised GST officer suspends the registration. A voluntarily suspended registration cannot be revoked under any circumstances. There is no doubt that the rules for suspension provide relief to taxpayers to some extent. 

 The government has streamlined the process, but it is still advisable to take the help of a professional for revoking the suspended GST registration. A consultation with a GST professional or a certified CA can help you stay under compliance and get possible remedies to deal with the suspension of GST registration without going through much trouble.

 Source: https://www.manishanilgupta.com/blog-details/gst-suspended-what-to-do-next

[shlipayadavblog]

Ashneer Grover, wife Madhuri Jain pay Rs 8.2-cr advance tax for FY23

Former BharatPe managing director Ashneer Grover has paid Rs 7.1 crore advance tax for the assessment year 2022-23, a source said on Wednesday.

Grover's wife Madhuri Jain has paid Rs 1.1 crore advance tax, the source said.

"Ashneer Grover has paid Rs 7.1 crore advance tax on March 8 and Madhuri Jain has paid Rs 1.1 crore in advance tax for assessment year 2022-23. This makes him one of the highest taxpayers among startup founders for two years in a row," the source, who did not wish to be named, said.

A query sent to Grover did not elicit any reply. Grover is currently under the lens of tax authorities for tax evasion due to alleged misappropriation of funds at BharatPe.

GST authorities are now scrutinising BharatPe books of the last four years to see if bogus invoices were issued for services as well.

BharatPe had stripped its co-founder Ashneer Grover and his wife Madhuri Jain of all positions after a preliminary report of an external audit commissioned by the fintech firm's board showed that the duo indulged in alleged misdeeds and financial irregularities.

GST officials have since last year been investigating the books of BharatPe for alleged issuance of invoices without any actual supply of goods and the Directorate General of GST Intelligence (DGGI) in October 2021 had conducted a search operation at the fintech firm's head office.

[ezybizadviser]

FACELESS ASSESSMENT UNDER INCOME TAX- AN OVERVIEW

Income Tax Assessment  

India has witnessed major tax reforms in recent years both under Indirect Tax as well as Direct Tax. Under Indirect Tax, GST was introduced in India in July 2017 and under Direct Tax, Indian government has announced 2 major changes in Income Tax Assessment and Appellate matters in August 2020 in order to bring transparency in tax matters and also in order to honor the honest taxpayers. These are

a)      Faceless Income Tax assessment OR Faceless assessment under Income Tax and

b)      Faceless Appeal under Income tax

The objective of introduction of faceless assessment and faceless appeals are to reduce tax disputes matters and to minimize the harassment faced by the taxpayers.

The Income Tax faceless assessment scheme is a right step towards ease of doing business and bringing more transparency in disputes of tax matters, and compliances.

Under the faceless assessment scheme, a taxpayer (assessee) is not required to visit the Income Tax Department Office or to meet any officer for their income tax-related dispute.

The objective of this scheme is to promote effective tax administration, minimize physical interface, increase accountability and less harassment. The scheme will create a positive impact for the taxpayers and it will be flexible for individuals and taxpayers. It also results in time-saving, avoiding corruption.

Under this scheme, a centralized National E Assessment Centre (“NEAC”) has been established which will act as single point of contact between the taxpayers and assessing officer. Here,an electronic automation system will automatically pick up income tax returns for scrutiny assessment on the basis of mismatches, fact error, clerical error, and risk parameters which will then be allotted randomly to any tax officer in any city or location without the knowledge of taxpayers or any other tax authorities. Any queries raised by the assessing officer would be communicated to the taxpayers via email or posting on the portal. Any replies received from the taxpayers would be forwarded to the assessing officer by NEAC.

Under this scheme, a random selection of tax cases through artificial Intelligence will lead to a reduction in discretionary power of tax officials. The objective of this scheme is to completely eliminate physical contact between the taxpayer and the Income-tax Officer to make it transparent and corruption-free.

The key features of the Income Tax Faceless Assessment Scheme are:-

Ø  No Human Intervention.

Ø  More transparency

Ø  Saving of time

Ø  Improvement in Quality

Ø  All communication electronically

Ø  Ease of Doing

Ø  No Hard Copy requirement

Ø  Video conferencing facility

Ø  Random allocation of cases

Ø  E-Verification

Since it is a new scheme and still in nascent stage, the tax payers are witnessing lot of issues in making effective use of same. Accordingly, the Income Tax department has released three different email IDs for taxpayers to register grievances and complaints under this scheme. All the complaints and queries can be furnished under three different email IDs created for their individual purposes below:-

1.      For faceless assessments: samadhan.faceless.assessment@incometax.gov.in

2.      For faceless penalty: samadhan.faceless.penalty@incometax.gov.in

3.      for faceless appeals: samadhan.faceless.appeal@incometax.gov.in

Income Tax department also dedicated an e-mail ID which is feedback.notice.neac@income tax.gov.in , for the taxpayers to register grievances related to Faceless Assessment Scheme.

This e-mail ID will closely monitored by the National e-Assessment Centre of the Income Tax Assessment Department.

Thus, faceless assessment scheme introduced by the government is a welcome step towards reduction of corruption and harassment of taxpayers and will facilitate the transparent and fair Income tax assessment.

[vjmglobal]

Demand order passed without giving opportunity of being heard is liable to be set aside

In the given case, the respondent issued a show cause notice to the petitioner on 20th January, 2021. However, the petitioner failed to file a response to such notice. Therefore, The respondent passed a demand order for tax liability, interest and penalty on 17th March, 2021. The petitioner filed a written objection against such a demand order on 18th March, 2021. The petitioner also filed a writ petition before Hon’ble High Court contending that impugned order is liable to be set aside on ground of violation of mandatory provisions of Section 75(4) of CGST Act, 2017. The respondent contended that the petitioner has failed to file a reply to show cause notice. Also, the petitioner is available with an alternate remedy of filing an appeal before Appellate Authority.  

Hon’ble High Court Held that as per Section 75(4) of CGST Act, 2017, an opportunity of being heard is required to be granted when a request has been received from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person. In case of adverse action,  opportunity of hearing is indispensable and is required to be followed scrupulously. Therefore, in the given case, impugned order is liable to be set aside not only on grounds of violation of Section 75(4) of CGST Act, 2017 but also on ground of violation of principle of natural justice.

1. Brief Facts of the case

The Petitioner (Ocean Sparkle Limited) has received the Assessment Order (Ref. No. ZD370321001535W dated 17th March, 2021) from Assessing Authority (“The Respondent”) regarding the Tax demand and the penalty for the period of July 2017 to March 2018.

The Respondent issued a show cause notice to the petitioner under section 73 of CGST Act, 2017 read with Rule 142(1) of CGST Rules, 2017 on 20th January, 2021.

However, the petitioner failed to respond to such Show Cause Notice. However, written objections were filed on 18th March, 2021.

The Petitioner contended that such demand order is liable to be set aside on the ground of non-compliance of mandatory provisions of Section 75(4) of CGST Act 2017.

Therefore, the Petitioner filed a writ petition before Hon’ble High Court challenging the validity of assessment order.

2. Relevant Legal Extracts

Chapter XV of CGST Act, 2017 deals with “Demand & Recovery”.

Section 73 deals with “Determination of tax not paid or short paid or erroneously refunded o/r input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts”.

Section 74 deals with “Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts”.

Section 75 deals with “General provisions relating to determination of tax”.

Section 75 (4) is relevant for the matter under discussion and relevant extract of which reiterated below for ready references

“Section 75 – General provisions relating to determination of tax

[…….]

(4) An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.”

3. Contentions of the Petitioner

The Petitioner contended following points:

The petitioner could not file an objection to the show cause notice within the stipulated time period due to various reasons.

However, a written objection was filed on 18th March, 2021.

The Respondent have not followed the mandatory provisions of GST law. Therefore, impugned order is liable to be set aside.

4. Contentions of Respondent

The Respondent contended that:

The petitioner has failed to file response to show cause notice dated 20th January, 2021. Therefore, now it is not open for the petitioner to raise any objection against impugned order.

The respondent has passed the impugned order only after granting the full fledged opportunity to the petitioner.

Further, in case of any objection, the petitioner has alternate remedy available under Section 107 of CGST Act to file an appeal before Appellate Authority. Therefore, writ petitioner before Hon’ble High Court is not maintainable.

5. Analysis by Hon’ble High Court

Hon’ble High Court interpreted following points:

As per Section 75(4) of CGST Act, 2017, in each of the following scenarios, opportunity of being heard is required to be granted:

In case of adverse action,  opportunity of hearing is indispensable and is required to be followed scrupulously.

In the given case, the respondent has issued a show cause notice to the petitioner proposing an adverse action.

However, on the ground that the petitioner failed to respond to show cause notice, the respondent confirmed the demand order.

When a course of action is prejudicial to the interest of the assessee, provisions of Section 75(4) of CGST Act, 2017 is required to be follow carefully.

Therefore, impugned order is liable to be set aside not only on ground of violation of Section 75(4) of CGST Act, 2017 but also on ground of violation of principle of natural justice.

Further, contention of the respondent of availability of alternate remedy is liable to be rejected

when a request has been received from the person chargeable with tax or penalty, or

where any adverse decision is contemplated against such person.

Click on this link to be continued: click here 

[hostbooks-limited]

The Complications In GST System Still Troubling Dealers, The Part of Accounting Software Will Be Pivotal

The government has enforced the GST system to simplify and ameliorate the being deals duty system. Since the perpetration of the GST system across the country on July 1, 2017, numerous emendations have been made to it. Still, dealers find it delicate to manage with its complications. This is assessing an overdue burden on the dealers.

  Replying to the new GST governance, the trafficker association CAT has formerly called the current GST system colonizer. It still assures to work together with the government to increase the GST duty base and the government's profit on the condition that the duty system must be accounted and simplified. Talking about the complications, the GST gate is still working on the old pattern. In around four times since GST has been enforced in the country, numerous rules have been changed, but the gate has not been streamlined in time. CAT claimed that the GST authorities are taking a special interest in GST compliance rather than the fact that indeed moment businesses of the country aren't completely motorized.

  Along with that, there are several other complications in new GST rules that CAT has claimed similar as the GST enrollment of dealers is being cancelled if any crimes made by dealers’ end, merchandisers aren't indeed being given previous notice before cancellation of GST enrollment, there's a heavy penalty if missed the due dates of GST form, and so on.

A GST Compliance Software Will Play a Pivotal Part

In such a script where so numerous changes have been done and thereby complications have been increased, an effective GST software will play a pivotal part to let your business fulfil GST compliance with ease. Similar software is featured with automated medication & advertisement of GSTR-1 data to the GSTN gate, therefore it reduces the complications and the compliance time significantly and cuts down the operation cost by nearly half. Similar software is Pall- grounded, so one can pierce it anytime & anywhere. Thought, it will modernize you with any changes or updates in the GST system, it saves you from paying penalties. Therefore, it's easier for dealers to fulfil their GST compliance with similar pall- grounded software.

[siya123sharma]

Facility for E-Personal Hearing in GST

The Bangalore Zonal Unit of Directorate of Systems and Data management is entrusted with the task of development of Dispute settlement and resolution (DSR), Investigation, Audit, Mobility and E-way Bill modules.

Adjudication is one of the modules encompassed in the compendious Dispute Settlement and Resolution(DSR) module, for which it was deemed necessary to hold personal hearings to meet the principles of natural justice.

Thus keeping in mind the necessity and principles of natural equity, the functionality for the personal hearing proceedings of Adjudication module is now available for use by the departmental officers via the DSR Advisory no. 04/2021 which was issued on April 26, 2021.

1. What are the Legal provisions in effect

Below are given the sections which are necessary to be explained in order to understand what is given in the advisory.

The incidence of the erroneous payment of tax or wrong availing of Input Tax Credit may be caused because of an inadvertent mistake or might be a case of intentional attempt (fraud) to evade the tax under section 73 and 74 off the act.

Thus, section 75 provides that an opportunity of hearing shall be granted to the person chargeable with tax where a request is received or where any adverse decision is contemplated.

Herein it is mandatory for the proper officer to issue a speaking order and to set out all relevant facts and the basis of his decision in the Order issued by him so as to refer the same for personal hearings.

Given below are mentioned the sections and rules that are mentioned in the advisory to facilitate the proceedings of e personal hearing.

Section 75(4) which states that:

An order is required to be issued in certitude of the direction of the Tribunal or a Court shall be issued within two years from the date of communication of the said direction and an opportunity of hearing shall be given where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is scrutinized against such person.

Section 75(5) which states that:

The proper officer, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be  recorded in writing.

But no such adjournment shall be granted for more than three times to a person during the proceedings.

Rule 142(4) which states that:

The representation of a person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent of tax or ten thousand rupees, whichever is higher, due from such person and issue an order [s.73(9)], where the person makes the payment of tax and interest along with penalty, the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings [s. 74(9)], and where the proper officer shall, after considering the representation, if any, made by the person on whom the notice is served, determine the amount due from such person and thereupon such person shall pay the amount so determined..shall be in FORM GST DRC-06.

2. What are the forms used

1.FORM GST DRC-01

If a person is chargeable with tax, interest and penalty then the proper officer hereafter will first need to communicate the details of tax, interest and penalty, as ascertained by him, in Part A of Form GST DRC-01.

As per the Rules, previously, at the time of serving of a notice or statement, the proper officer had to issue a summary. However, now, with this new sub-rule inserted, the tax, interest and penalty payable will need to be communicated to the taxpayer first, before the notice or statement gets served. Hence, it is an intimation rather than a show-cause notice.

2.FORM GST DRC-02

After issuing the show cause notice under FORM GST DRC-01, if the proper officer wants to issue details of tax unpaid or short paid for the same ground but for any other period, then he can issue a statement abiding the respective sections.

3.FORM GST DRC-06

This is a reply to the show cause notice as mentioned above in form DRC-01. Under the GST regime, tax is paid on a self-assessment basis. If the self-assessment is incorrect, the Department can issue a Notice. A Notice can be issued for short payment/non-payment of taxes, claiming an erroneous refund, wrong availment of ITC, etc. after which if the person wants to reply to the same, they reply under this FORM GST DRC-06.

3. What has been brought in via the advisory for E-Personal Hearing

An online platform for E-personal hearings. This is built for the Adjudicating Authority and is the process that is to be held after the issuance of DRC-01/02 (Show Cause Notice/Statement of Demand) to meet the principles of natural Justice.

The opportunity for personal hearing can be allowed by the officer through FORM GST DRC-01 (Show Cause Notice) or as desired by the taxpayer through FORM GST DRC-06 (which is a reply) or provided by the Adjudicating Authority himself by fixing the personal hearing.

The pre-requisite for executing this functionality is that FORM GST DRC-01/DRC-02 should have been issued in the system i.e. the online platform itself.

The online platform provides space where the adjudicating authority can function, but for that the authority first of all has to select DRC-01 Number from the ‘DRC-01s pending for adjudication’ list.

After the authority has selected the same, they have to follow a specific path i.e. to click on the DISPUTE SETTLEMENT AND RESOLUTION (DSR) tab where they will find an option ‘common list page’, after clicking on the same they will be able to the ‘SHOW CAUSE NOTICE’ (SCN) list, from where they will be able to view all the scheduled hearing and notices.

Options such as ‘View Reply’ and ‘Fix PH’ are provided in the list and the Adjudicating Authority can make use of such options depending upon the circumstances.

‘View Reply’ displays the FORM GST DRC-06 and its contents.

‘Fix PH’ leads to ‘Personal Hearing Management’, wherein platform for 1st ‘Personal Hearing’ gets created and the officer can select date & time and issue personal hearing notice to the tax payer through GSTN portal.

In case personal hearing is fixed while issuing FORM GST DRC-01, the system displays that the personal hearing is fixed and accordingly the Adjudicating Authority can proceed further.

4. What happens after the 1st personal hearing is setup

Any of the following circumstances may take place:

1.‘Adjourn PH’:

Herein the personal hearing already fixed is adjourned and the next personal hearing is enabled. The officer has to select date and time and issue a personal hearing notice. Limitations of such adjournments are a maximum of three times.

2.‘Record PH’:

This changes the status of personal hearing already fixed to a record hearing, and the officer afterwards can enter details of representative and record the personal hearing.

3.‘Close PH’:

This option closes the hearing proceedings and changes the status to closed.

4.‘Issue OIO’:

This leads to the next process i.e. ‘preparation and issue of order-in-original’. This option is a mandatory one and is required for using to move to the next stage of adjudication, otherwise the task of adjudication stops at this stage only.

However, the request for adjournment or cancellation of personal hearing has to be made by the taxpayer offline. This can be documented by the adjudicating authority while adjourning or cancelling ’Remarks’ text box and at the same time the offline document/record can be uploaded in the tabs provided.

It may also be noted that the advisory includes to ensure that notices or any other documents, which are legal in nature are signed by the respective authorities offline, as the facility for digital signature is not available for the time being.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

Read for more - https://vjmglobal.com/gst/

[tridelcondocompany]

Selling Property in Canada

At the point when a non-inhabitant sells Canadian real estate, he/she is needed to pay the fitting measure of charges on any capital addition. The typical Canadian assessment rates will be applied to half of the addition.

 Notwithstanding, a non-inhabitant is needed to pay a gauge of the assessment before the deal, a sum equivalent to 25% of the increase. This sum is to be held by the seller's attorney until such time as a freedom testament is gotten from the Canada Revenue Agency (CRA) regarding the offer of the property. 

Upon installment, the CRA will give a freedom authentication to the seller, yet not until there has been an agreement of procurement and deal with all subjects (conditions) eliminated. The sit tight for the authentication is typically 6 two months. In the event that the authentication isn't acquired, the buyer is needed to retain from the deal continues, a level of the selling cost (normally 25-half).

Prior to the end date, the home loan cash is moved to the seller's legal counselor and afterward to the seller and the title is moved to the buyer's name.

The non-inhabitant seller should record a Canadian annual government form for the year in which the deal happens and ought to hope to get a discount of a part of the charges paid. The tax assessment from Canadian real estate relies upon whether the utilization of the property is for a central home, a functioning business or as an investment property. If you want to know the current trend and price of the pre-construction condo then enquire now.

On the off chance that it is utilized as an investment property, a 25% non-inhabitant charge should be paid on the gross lease an occupant pays. Notwithstanding, in the event that you utilize an expert property chief, the director will, by law, retain 25% of the gross rental income at source to be transmitted to the Canada Revenue Agency. 

At that point prior to March 31 of the next year, the property chief issues a NR4 structure and you at that point reserve the privilege to record a Canadian government form. The government form is expected before June 30 and empowers you to guarantee costs against that pay and conceivably demand a discount.

Numerous nations, like the U.S., have charge arrangements with Canada that keep you from being burdened in both Canada and your nation of origin. It is prudent to contact an assessment bookkeeper in your country for more data.

Extra Costs and Fees when Buying and Selling Property

The accompanying addresses a considerable lot of the extra expenses and charges consolidated when buying property. Your realtor will actually want to tell you which are pertinent in your Province.

Duties

Non-inhabitants of Canada pay charge on pay got from sources in Canada. The sort of expense paid, and the prerequisite to document annual government forms, relies upon the kind of pay got.

Canada has charge arrangements with numerous nations, including the United States and the UK. An expense settlement is intended to stay away from twofold tax assessment for individuals who might somehow or another compensation charge on similar pay in two nations.

Property Transfer (or Purchase) Tax/Land Transfer Fees are determined between 0.5-2% of the property's all out esteem (not relevant in Alberta, country Nova Scotia or Saskatchewan). They are by and large 1% of the first $200,000 of the worth and 2% of the rest of.

Since the 2005 Provincial Budget, Property Transfer Tax (PTT) is currently excluded for people buying their first home as long as they meet certain rules, in particular that they are a Canadian resident or Permanent Resident and have never possessed a home anyplace on the planet; that they have lived in the area for at any rate one year before buy; that they have documented two Canadian assessment forms inside the most recent six years; and that they should involve the property as their essential home for the main year of proprietorship. 

There are likewise corresponding exclusions to PTT for first-time home buyers which differ by locale dependent on the honest assessment of the property.

As of December 2007, the Ontario Provincial Land Transfer Tax exclusion for first time buyers (up to $2,000) presently applies to resale just as recently developed homes. Also, from February 2008, Toronto (and this may spread to other commonplace urban communities) has its own Land Transfer Tax which permits first time home buyers of both new and resale homes to fit the bill for a discount.

On the off chance that the property is empty land, the house should be developed inside one year of shutting and the buyer should live in the house for the equilibrium of the year.

There are different models required too to fit the bill for the PTT exception, so it is ideal to counsel a legal advisor or legal official.

Leeway Certificate The average charges related with getting ready and recording a freedom authentication, paid by the seller, range from $300-$1000, contingent upon the intricacy of the exchange.

Capital Gains Tax isn't appropriate on your important home.

Products and Ventures Tax (GST) of 5% is just payable on recently built homes and is regularly remembered for the provided deals cost estimate. New home buyers of homes costing $350,000 or less can apply for a fractional discount of the 5% GST material on the price tag as long as the house will be the buyer's essential spot of home. The refund is up to 36% of the GST to a greatest discount of $6,300.

For new homes evaluated somewhere in the range of $350,000 and $450,000 before GST, the GST discount diminishes proportionately. New homes estimated $450,000 before GST or higher don't get a discount. There is no GST on resale lodging except if the home has been generously remodeled, and afterward the duty is applied as though it were another home.

As of April 1, 2013, British Columbia (BC) supplanted the 12% HST with the GST at the pace of 5% and a commonplace deals charge. Temporary principles, including the BC change charge, apply to specific exchanges for lodging that ride that date. The BC change charge discount is accessible in specific circumstances where the progress charge applies.

GST questions are best replied at source ie: the Revenue Canada site, or by a bookkeeper who knows about real estate income tax assessment.

Commonplace Sales Tax (PST) in BC is 7% and once more, is typically remembered for the provided deal cost estimate.

Fit Sales Tax (HST) is 12% - a mix of GST and PST - and is utilized in British Columbia (see note underneath), Ontario, and the Atlantic territories of New Brunswick, Newfoundland and Labrador, and Nova Scotia. On July 1, 2010, Ontario presented a governmentally controlled Harmonized Sales Tax (HST) that applies to most buys and exchanges. The HST applies to recently built homes, yet doesn't have any significant bearing to resale homes. Buyers of new homes will get a discount of up to $24,000 paying little heed to the cost of the new home.

Kindly note, a submission was held in B.C. in the late spring of 2011 which brought about a nullification of the HST charge which will bring about a re-visitation of the previous 7% PST charge framework on April first, 2013. Meanwhile, on Friday, February seventeenth, B.C. Account Minister Kevin Falcon divulged a progression of HST help estimates which will give B.C. home buyers and manufacturers a more strong establishment to progress out of the questionable HST charge. 

Beginning April first, 2012, the public authority will raise the HST refund edge for new home buyers to $850,000, up from the current $525,000, which means over 90% of recently assembled homes will presently be qualified for a common HST discount of up to $42,500. After the HST end date, the individuals who buy a home worked before April 1, 2013, will pay a 2% progress charge on the full house cost.

Property Tax is a yearly charge imposed inside neighborhood networks, which implies there are a wide range of rates inside every area. The contrast between Property Tax and Property Transfer Tax is that PTT is a one-time common expense which endless supply of property and Property Tax is paid yearly to the neighborhood tax collection specialists. 

It is dictated by applying the estimation of the property as evaluated by the common appraisal power to the current assessment rates as expressed by the nearby expense authority. The sum can contrast every year except by and large Property Tax falls between 0.5-2.5% of the home's reasonable worth.

[noticegstka]

Understanding GST Notices in India

A Comprehensive Guide

GST notices serve as official communications from tax authorities to address discrepancies or gather additional information related to a business’s tax returns. These notices cover various scenarios, including non-compliance, return filing errors, mismatched tax credit claims, and audit triggers. Let’s explore the details:

Types of GST Notices:

Show Cause Notice (SCN): Issued for suspected GST law violations. Timely responses are crucial.

Demand Notice: Sent when there’s outstanding tax liability.

Scrutiny Notice: Detailed examination of GST returns and compliance.

Common Reasons for Receiving GST Notices:

Mismatch between GSTR-1 and GSTR-3B details.

Differences in input tax credit claims (GSTR-3B vs. GSTR-2B/2A).

Consecutive delay in filing GSTR-1 and GSTR-3B.

Inconsistent declarations in GSTR-1 and e-way bill portal.

Non-reduction of prices despite reduced GST rates (profiteering).

Non-payment or short-payment of GST liability.

Incorrect GST refund claims.

How to Respond:

Act promptly within the specified time limit.

Provide accurate clarifications.

Rectify any errors in returns or compliance.

Seek professional advice.

Remember, timely and accurate responses are essential to maintain compliance and avoid legal consequences .

If you’ve received a GST notice, consult a tax advisor for guidance from GST ka Notice.

Feel free to ask if you need further assistance!

[mycountsolutions]

Why Startups Require Best Accounting Mechanism

A small business organization is an organization or a startup that is made of at least one business visionaries and aims at bringing a new product or service to the market. People search ‘best small business CPA near me’.  In most cases, founders fund initially for setting up a startup. They contribute a considerable measure of time and cash in research. For the most part, small business owners are engaged with the procedure. Along these lines, since the startups don't have a solid foundation at the underlying phase of activities, accounting gets significant for them.

Accounting Mechanism

Accounting is the way toward recording financial exchanges of a business every day that incorporate deals, buy, receipts, installments. It is a piece of bookkeeping that records financial undertakings of the business as diary sections. It is fundamentally a method for entering information into the bookkeeping framework.

Here is a portion of the significant reasons why startups require small business accountants.

Better tracking development

For startups, it's critical to follow their development as they are in their underlying phase of tasks and they are contributing a significant measure of time and cash. In this way, accounting furnishes them detail concerning benefit and development. A business can develop if you dissect the development by following the financial records, which can be just given by precise accounting.

Tax management

Each organization is required to pay taxes as a personal duty and backhanded expenses like GST. They are required to document Income assessment forms and GST returns as on due dates. For this, they need nitty-gritty and precise data on revenue, deals, purchases, and so forth. Here, small business owners get the data from the accounts kept up and along these lines, accounting helps in the calculation of both the types of taxes. Additionally, the books of accounts kept up help in a deep examination of the financial transactions, which can be utilized for tax management.  For most of the reasons people search for ‘Quickbooks bookkeeping services near me’.

An appropriate review of accounts

During the review of books of accounts, accounting becomes significant because it gives clear and periodical information to the reviewer. Additionally, the inquiries raised by the evaluator can be appropriately replied if the auditor keeps up legitimate books of accounts. This spares the auditor from an ominous comment in the review report.

No headache for the business owners

At the point when startups settle on great accounting administrations, they can concentrate on their procedures and objectives as opposed to concentrating on the support of books of accounts. Their work gets decreased to checking the subtleties of financial exchanges recorded and breaking down the outcomes.

Conclusion

Opportune accounting is key for monitoring the financial transactions of the organization. It empowers the administration to settle on educated choices knowing how the organization is performing and what remedial activities are required. In this way, startups ought not to ignore the significance of accounting as it is a proportion of business execution as far as cash and not weight. So, startups should not overlook the importance of bookkeeping as it is a measure of business performance.

My Count Solutions provide best small business accountant Fort Worth.

[whyspeakin]

Zerodha Brokerage Charges | Share Buying and Selling | Demat | Brokerage | Review and Evaluations 2020 | Low-cost Brokers

  Zerodha Brokerage Charges | Share Buying and Selling | Demat | Brokerage | Review and Evaluations 2020 | Low-cost Brokers

  Zerodha Brokerage Charges are the lowest in industry. Zerodha is a Bangalore, India primarily based, Low-cost Broker. (Also referred to as Discount Service stock Broker,  Flat Rate Share Broker / Pay Per Order Brokerage Firm) for buying and selling in Inventory, Commodity and Forex By-product. It fees a brokerage of 0.01% or ₹20 per executed order, whichever is decrease, no matter the variety of shares or their costs (Besides fairness supply trades that are free). With Zerodha, most brokerage you pay for any transaction is ₹20 for an order (of any dimension and in any section). Zerodha would not have minimal brokerage. Included in 2010; Zerodha is first and No. 1 low-cost dealer in India by quantity, the variety of prospects and development. As of Jan 2020, Zerodha has 9.79+ lakh, energetic purchasers. Zerodha contributes to over 10% of day by day retail buying and selling volumes throughout NSE, BSE, MCX. Just lately it has taken a lead as the most important inventory broking firm in India primarily based on the variety of purchasers. Zerodha has over 1,000 workers positioned at its Bangalore workplace. Like different online inventory buying and selling firms, Zerodha presents buying and selling providers to purchase & promote shares, futures & choices (in Fairness, Forex & Commodity segments). Zerodha's has constructed its personal buying and selling software named 'Kite' and back-office software program named 'Console'. All buying and selling software program functions together with buying and selling terminal, web site and cell buying and selling (android / iOS) are made out there to its buyer without charge. Zerodha's brokerage construction is very simple and really straightforward to know. A buyer who moved to Zerodha has reported 80% to 90% saving in brokerage compared to full-service brokers. Zerodha is among the many most technologically superior and least expensive inventory dealer in India for all form of buyers together with individuals who commerce only a few occasions in a month at the moment merchants who execute 100's of trades every day. Zerodha additionally has wonderful academic initiatives like Varsity and Buying and selling Q&A. These platforms are actively utilized by its prospects to work together with Zerodha group.

Zerodha Brokerage

Zerodha Varsity- It's an investor schooling initiative from Zerodha whereby prospects can educate themselves on varied elements of buying and selling and investments. Varsity has 10 modules or programs, every consisting of a number of chapters, on totally different elements of inventory buying and selling together with technical evaluation, basic evaluation, Choices methods and Futures buying and selling and so forth. The modules are complete whereby key monetary ideas are lucidly defined. Buying and selling Q&A- It's a free and open, community-driven Q&A discussion board whereby Zerodha prospects can ask questions on all issues associated to Zerodha platforms, its providers, inventory buying and selling and inventory markets and get solutions from different members of the group. The corporate representatives, infrequently, additionally reply to questions particularly these associated with Zerodha's services and products. Zerodha's Buying and selling Platforms A buyer can commerce with Zerodha in the following methods: Kite 3.0 (Internet-based Buying and selling Platform) Launched in November 2015, Zerodha Kite Internet is a web-based HTML 5 light-weight & quick buying and selling platform which can be utilized for buying and selling on cell, tablets in addition to on an internet browser. Kite is developed in-house by Zerodha and since its launch has undergone varied updates. At present, Kite 3.Zero net platform is obtainable by Zerodha. It presents full market watch, intensive charting with over 100 indicators and 6 chart varieties, superior order varieties like Brackets and canopy, millisecond order placements, and rather more for buying and selling at BSE, NSE and MCX. Kite Internet 3.Zero is accessible at no cost to all its prospects. Learn Zerodha Kite Assessment Kite Android / Kite iOS (Cell Buying and selling App) A smartphone software for Android and iOS. This app permits prospects to commerce from their cell phones. The kite Cell app is accessible at no cost all its buyer for buying and selling & monitoring shares and commodity markets in India. With reside streaming information from BSE, NSE and MCX, Kite Cell App is essentially the most superior buying and selling app out there in India. Console (Reporting Dashboard) Console is the back-office platform of Zerodha. It is a commerce and reporting dashboard whereby Zerodha prospects can view and monitor all their investments- shares, derivatives and mutual funds and so forth. They will additionally entry varied experiences, get account assertion, place withdrawal requests and obtain contract notes. The 'Console' additionally presents analytics instruments reminiscent of tradebook and heatmap. Zerodha Sentinel (Value Alert Instruments) Sentinel is a cloud-based instrument which permits Zerodha prospects to arrange value alerts on shares, futures and choices. The distinctive characteristic of Sentinel is that in contrast to different comparable value alert instruments which can be machine-dependent and solely set off when the pc is on, right here value alerts may be triggered for any time, even when the pc is off. Notifications are despatched on Kite and e-mail each time a value alert is triggered. With Sentinel, a dealer can set real-time value alerts on 80,000 shares, derivatives and bonds and so forth., throughout exchanges. Coin (Mutual Fund Funding) Zerodha Coin is a Mutual Fund funding platform by Zerodha. Coin permits individuals to put money into Direct Mutual Funds. This implies you can do commission-free direct MF funding. It presents financial savings of over 1.5% on commissions yearly. Mutual Funds are deposited in Demat account linked with Zerodha buying and selling account. Name & Commerce Prospects who are usually not on-line; can use Name & Commerce service for a further price of ₹50 per dealer. Accomplice Merchandise From Zerodha Zerodha not solely provides its prospects entry to its proprietary buying and selling platforms and instruments but additionally to merchandise developed by different firms utilizing the Zerodha platform. The instruments may be built-in with Zerodha's Kite platform. Buying and selling platforms and instruments provided by Zerodha companions are- Small case- It's one in all its type thematic funding platform that allows customers to put money into a ready-made portfolio of shares created round a theme/concept or a method. There are a number of selections in small instances like Prime 100 shares, Electrical Mobility, Insurance coverage and so forth., for an investor to decide on as per his funding technique and put money into a single click on. Streak- An end-to-end cloud-based platform for retail merchants to create algorithms without coding, Backtest it on historic information and execute them reside available in the market. It presents different options like real-time info, alerts and handles positions. Smart- It's a choice buying and selling platform that means buying and selling methods to merchants primarily based on their market view. Merchants can evaluate varied methods, consider their profitability, perceive dangers after which execute it from the platform. It additionally permits merchants to create customized possibility buying and selling methods. Stock Reports+- It presents complete analysis and evaluation on 3000+ shares, markets, and industries. Provided by Thomson Reuters, the instrument gives in-depth info and evaluation of 1500 Indian firms and rankings for shares and companies. https://www.upcomingipo.org/low-cost-discount-brokers-10-listed-india-2020/   Zerodha Brokerage Zerodha Particular Gives Free Fairness Supply Buying and selling Get free fairness supply buying and selling (really no brokerage) and pay flat ₹20 brokerages for Intraday and F&O trades. To open an account with Zerodha, merely leave your contact information with us and Zerodha representatives will name you. Zerodha Brokerage Expenses 2020 Zerodha Account Opening Expenses On-line Buying and selling & Demat Account Opening Expenses ₹200 Buying and selling Account AMC ₹0 Demat Account AMC ₹300 per yr Word: When you select to open an account offline, you can be charged ₹300 moreover. Zerodha Brokerage Expenses 2019 Buying and selling Phase Brokerage Expenses Fairness Supply ₹0 (Free Limitless Fairness Supply Trades) Fairness Intraday 0.01% or ₹20 per commerce whichever is decrease Fairness Future 0.01% or ₹20 per commerce whichever is decrease Fairness Choices 0.01% or ₹20 per commerce whichever is decrease (on Turnover) Forex Futures 0.01% or ₹20 per commerce whichever is decrease Forex Choices 0.01% or ₹20 per commerce whichever is decrease Commodity 0.01% or ₹20 per commerce whichever is decrease Mutual Fund ₹0 (Free Limitless Direct MF) Zerodha Fairness Brokerage Cost Sort Fairness Supply Fairness Intraday Brokerage ₹0 (No Brokerage) 0.01% or ₹20/Commerce whichever is a decrease Securities Transaction Tax (STT) 0.1% on each Purchase and Promote 0.025% on the Promote Aspect Transaction / Turnover Expenses NSE: 0.00325% | BSE: 0.003% per commerce (both sides) NSE: 0.00325% | BSE: 0.003% per commerce (both sides) Items and Companies Tax (GST) 18% on (Brokerage + Transaction Cost) 18% on (Brokerage + Transaction Cost) SEBI Expenses ₹10/Crore ₹10/Crore Stamp Expenses State clever State clever Zerodha Fairness F&O Brokerage Cost Sort Fairness Futures Fairness Choices Brokerage 0.01% or ₹20/Commerce whichever is a decrease 0.01% or ₹20/Commerce whichever is the decrease Securities Transaction Tax (STT) 0.01% on Promote Aspect 0.05% on Promote Aspect(on Premium) Transaction / Turnover Expenses NSE: 0.0019% | BSE 0.003% (both sides) NSE 0.05% | BSE 0.003% (both sides) (on premium) Items and Companies Tax (GST) 18% on (Brokerage + Transaction Cost) 18% on (Brokerage + Transaction Cost) SEBI Expenses ₹10/Crore ₹10/Crore Stamp Expenses State-wise State-wise Zerodha Forex F&O Brokerage Cost Sort Forex Futures Forex Choices Brokerage 0.01% or ₹20/Commerce whichever is a decrease 0.01% or ₹20/Commerce whichever is a decrease Securities Transaction Tax (STT) No STT No STT Transaction / Turnover Expenses NSE: 0.0009% | BSE: 0.00022% NSE: 0.04% | BSE: 0.001% (on premium) Items and Companies Tax (GST) 18% on (Brokerage + Transaction Cost) 18% on (Brokerage + Transaction Cost) SEBI Expenses ₹10/Crore ₹10/Crore Stamp Expenses State clever State clever Zerodha Commodities Brokerage Cost Sort Commodity Futures Commodity Choices Brokerage 0.01% or ₹20 per commerce (whichever is decrease) 0.01% or ₹20 per commerce (whichever is decrease) Securities Transaction Tax (STT) 0.01% on sell-side (Non-Agri) 0.05% on sell-side Transaction / Turnover Expenses Group A: Change txn cost: 0.0026% Group B: Change txn cost: Pepper - 0.00005%, Castorseed - 0.0005%, Rbdpmolein - 0.001% ₹0 Items and Companies Tax (GST) 18% on (Brokerage + Transaction Cost) 18% on (Brokerage + Transaction Cost) SEBI Expenses ₹10/Crore ₹10/Crore Stamp Expenses State-wise State-wise Zerodha Cost / Charge Construction: Securities Transaction Tax (STT): That is charged solely on the promote facet for intraday and F&O trades. It's charged on each side for Supply trades in Fairness. Stamp Duty: Charged as per the state of the shopper's correspondence deal with. Items and Companies Tax (GST): That is charged at 18% of the whole price of brokerage plus transaction fees. SEBI Expenses: That is charged at ₹10 per Crore. Different Expenses (Zerodha Hidden Charges): Name and Commerce characteristic is accessible at an additional price of ₹50 per name. An extra cost of ₹50 per executed order for MIS/BO/CO positions which aren't sq. off by the client. Digital Contract notes are despatched by way of E-mail. Bodily copies of contract notes may be ordered at a further cost of ₹20 per contract. Courier fees are additional. Commerce SMS alerts (optionally available) are charged at ₹1 for Fairness, F&O, and Forex commerce alerts and ₹0.50 for Commodity commerce alerts. On the spot cost gateway fees for over 22 banks - ₹9 per fund switch. DP fees for supply primarily based fairness promoting - ₹Eight per transaction. Customary NSE fees, transaction fees and statutory levies are charged. Take a look at Zerodha Brokerage Charges, Fees, AMC, Transaction Charges. Get element about Zerodha pricing, Zerodha brokerage calculator, Zerodha brokerage, Zerodha plans, Zerodha brokerage assessment, Zerodha brokerage plans, Zerodha fund switch, Zerodha intraday brokerage, Zerodha fees, Zerodha cost listing, Zerodha fees calculator, Zerodha pay as you go brokerage plans, Zerodha yearly fees, Zerodha charges, Zerodha yearly upkeep cost, Zerodha possibility brokerage and Zerodha buying and selling fees. The right way to open an account with Zerodha? For on-line buying and selling with Zerodha, the investor has to open an account. Following are the methods to open an account with Zerodha Fill an internet software kind. Click on right here to fill the Zerodha contact kind. Open your account immediately with AADHAAR. Learn Zerodha Account Opening Process Review to seek out details about Zerodha dealer, Zerodha branches, Zerodha sub-dealer, Zerodha assist, Zerodha buyer care, Zerodha consumer evaluations, Zerodha consumer handbook, Zerodha web site, Zerodha assessment and Zerodha toll-free quantity   Zerodha Execs and Cons Zerodha Benefits Hottest Dealer - Zerodha is the most important inventory dealer in India (by the variety of energetic purchasers and day by day buying and selling quantity). The very best buying and selling platforms & instruments within the trade - Kite, Console and Coin Brokerage free Fairness Supply Trades - You do not pay any brokerage if you purchase shares utilizing cash-and-carry (CNC). Supply commerce has no leverage. As soon as purchased, shares get delivered to your Demat account and if bought, shares will get debited out of your Demat account. Least expensive share dealer in India - They provide providers below an easy pricing mannequin. They cost 0.01% or ₹20 per executed order, whichever is decrease, whatever the commerce dimension. The utmost brokerage paid by the client is ₹20 per commerce. Zerodha Referral Program - Refer a buddy and earn 10% of brokerage share. Self-Clearing Dealer - Zerodha is a self-clearing dealer. They do not cost clearing fees from prospects. No Hidden Expenses - Zerodha doesn't cost any hidden charges i.e. Software program makes use of fees. No Minimal Stability required to open a Zerodha buying and selling account. No Minimal Brokerage - That is useful with small trades the place 0.01% brokerage is utilized. Brokers like ICICIDirect cost minimal brokerage of ₹35 in case your calculated brokerage is lower than that. Pay as you go Brokerage Plans - Zerodha has merely pay-as-you-go brokerage plan. There is no pay as you go brokerage plans out there. Zerodha GTT orders - Set long-standing cease loss and goal orders to your inventory investments. Zerodha Kite Three cell - An all-new cell app constructed for each, passive buyers and energetic day merchants, with vital pace and consumer expertise enhancements. Online IPO Utility - You may apply for brand new IPOs (Preliminary Public Choices) instantly with a Zerodha account. Zerodha Disadvantages Lifetime free AMC Demat account plans are usually not out there. Would not present inventory suggestions, analysis experiences or suggestions. Month-to-month limitless buying and selling plans are usually not out there. An extra cost of ₹50 per executed order for MIS/BO/CO positions which aren't sq. off by the client. Name & Commerce is accessible at a further charge of ₹50 per executed order. Buying and selling software program just isn't out there for Mac and Linux working techniques. 3-in-1 buying and selling account just isn't out there as Zerodha would not present banking providers. In contrast to most 3-in-1 accounts supplier, Zerodha Again Workplace (console) just isn't built-in with its buying and selling platform. The info within the again workplace will get up to date in a single day. https://www.upcomingipo.org/karvy-fraud-karvy-scam-avoid-karvy-causes-loss/ Zerodha Publicity Margin Zerodha leverage for intraday, supply, choices, foreign money and commodities. Learn Zerodha exposure limit review. Phase Publicity Margin Fairness Supply 1x (no margin) Fairness Intraday As much as 20x (primarily based on the inventory) Fairness Future Intraday - 40%(2.5x), Carry ahead - 100%(1x) of Whole margin (Span+ Publicity) Fairness Choices Intraday - 40%(2.5x), Carry ahead - 100%(1x) of Whole margin (Span+ Publicity) Forex Future Intraday - 40%(2.5x), Carry ahead - 100%(1x) of Whole margin (Span+ Publicity) Forex Choices Intraday - 40%(2.5x), Carry ahead - 100%(1x) of Whole margin (Span+ Publicity) Commodity Future Intraday - 40%(2.5x), Carry ahead - 100%(1x) of Span Commodity Choices Zerodha Complaints obtained at BSE/NSE   Variety of buyer complained in opposition to Zerodha share dealer. The Zerodha client complaints present the abstract of grievance which went to alternate for decision. Zerodha Buyer Complaints Change Monetary 12 months Variety of Shoppers * Whole Complaints ** BSE 2019-20 326,465 10 NSE 2019-20 1,257,180 343 BSE 2018-19 234,716 24 NSE 2018-19 887,267 265 BSE 2017-18 259,642 28 NSE 2017-18 540,905 339 BSE 2016-17 30,690 10 NSE 2016-17 165,586 99 BSE 2015-16 5,377 3 NSE 2015-16 61,970 25 Zerodha Quick Promoting Fairness F&O Phase - Zerodha permits intraday and in a single day brief promoting within the F&O section. Fairness Money Phase - Zerodha permits brief promoting just for Intraday, however not for in a single day position. What's new at Zerodha? March 2019 - Zerodha grow to be a self-clearing dealer with zero clearing fees to the purchasers. Jan 2019 - Zerodha turns into India's #1 inventory dealer each by the variety of energetic purchasers and the buying and selling turnover on the exchanges. Jan 2018 - Zerodha reached 7 Lakhs+ prospects. 8% of day by day retail buying and selling volumes throughout NSE, BSE, MCX. Dec 2017 - Kite 3.Zero is launched. It presents many new options. Mar 2017 - Launched 'Coin', a Direct Mutual Funds Funding platform FAQ's Is Zerodha really free? Whereas buying and selling in fairness supply is brokerage free, for all different buying and selling segments it fees brokerage of flat ₹20 per executed order or .01% whichever is decreased. Zerodha Brokerage Expenses Buying and selling Phase Brokerage Charge Fairness Supply ₹0 (Free) Fairness Intraday ₹20 or .01% whichever is decrease Futures & Choices (Fairness, Forex & Commodity) ₹20 per executed order or .01% whichever is decrease/ ₹20 for Fairness Choices Word: Along with brokerage, the client has to pay authorities taxes, Demat debit transaction fees and Demat account AMC.   What is Zerodha Demat account? A Zerodha Demat account is an internet account to carry monetary securities reminiscent of shares, bonds, and mutual funds, within the digital format. The Demat account makes on-line buying and selling potential with quick, safe and paperless transactions of shares. The Zerodha Demat account is opened with CDSL, who holds the Demat account. Zerodha service the Demat account.   Is Zerodha the best? Zerodha is finest within the following methods: Greatest buying and selling platform in India. Brokerage-free fairness supply buying and selling. Direct mutual funds (freed from any fee) earn 1.5% extra. A decrease brokerage (₹20 per commerce) in comparison with full-service brokers. Management has a transparent and thrilling imaginative and prescient for the long run. Extremely popular amongst frequent dealer in addition to informal buyers.   How much Zerodha charge for trading? Zerodha presents brokerage free fairness supply buying and selling and fees flat ₹20 for intraday and F&O trades. Order positioned by Name & Commerce facility in all segments is charged at ₹20 per executed order moreover.

Zerodha Brokerage Expenses

Phase Brokerage Fairness Supply ₹0 (Free) Fairness Intraday ₹20 per executed order Fairness Futures & Choices ₹20 per executed order Forex Futures & Choices ₹20 per executed order Commodity Futures & Choices ₹20 per executed order   How to open Zerodha account online? Zerodha presents an internet paperless account opening to all the purchasers. A person can open 2-in-1 account (buying and selling + demat account). Comply with the steps under to open Zerodha account: Go to zerodha.com Click on on the signup button out there on the right-hand facet of the highest menu Enter your cell quantity Enter the OTP obtained in your cell phone You'll be required to enter your particulars, PAN, and checking account within the course of.   Does Zerodha provide IPO? Sure, Zerodha presents online IPO application providers. In case you are a Zerodha buyer then you may apply for an IPO on-line from inside Console and pay utilizing any UPI 2.Zero enabled app. Listed here are the steps to use in an IPO on-line with Zerodha: Login to Zerodha Console Click on on the Portfolio menu and choose 'IPO'. Select the IPO you need to apply for from the listing Enter your UPI ID Enter bid particulars like value, amount, and so forth. Click on Submit You'll obtain a 'Mandate' request in your UPI app, click on 'Proceed' and also you're carried out.   Does Zerodha offer direct Mutual Funds? Sure, Zerodha presents commission-free direct Mutual Funds (MF) funding by its on-line platform referred to as 'Zerodha Coin'. With direct MF, an investor can save over 1.5% on commissions yearly. The mutual funds are credited into the client's demat account. The Coin additionally permits SIP of Mutual Funds.   Does Zerodha offer margin trading? No, Zerodha would not provide margin buying and selling (as per the SEBI law introduced in Jan 2020). The shopper has to pay the total margin prescribed by the inventory alternate.   How much safe is Zerodha? Zerodha is as secure and real as every other inventory brokers in India. It's regulated by SEBI and is a debt-free firm. It has not been concerned in any main regulation violation within the final 9 years.   Does Zerodha give tips? No, Zerodha would not provide inventory suggestions, suggestions, analysis and advisory. Zerodha is an internet low cost dealer that gives solely buying and selling, demat account and mutual fund providers. It doesn't provide different providers like advisory, analysis and wealth administration.   Why Zerodha charges for fund transfers? Zerodha makes use of 3rd social gathering providers for on-line instantaneous fund switch. It fees ₹9 for any transaction by this cost gateway and pays most of it to the service supplier. The fund switch is free if you use IMPS, NEFT/RTGS and Cheque transactions however the funds, on this case, are usually not out there immediately for buying and selling.   What is Zerodha varsity? Zerodha Varsity is an investor schooling platform from Zerodha whereby prospects can improve their information and expertise on buying and selling and investments. It has many modules or programs on totally different elements of inventory buying and selling.   What is the Zerodha console? The console is the back-office platform of Zerodha. It is a reporting dashboard whereby prospects can view and monitor all their investments, entry varied experiences, account statements, place withdrawal requests and obtain contract notes. Zerodha console makes use of the identical consumer id and password as Kite, the buying and selling platform.   How to change bank account in Zerodha? The checking account linked to Zerodha Buying and selling and Demat account may be modified by submitting an account modification request. This request needs to be submitted offline (signed paper kind). Zerodha would not provide on-line account modification i.e. altering the linked checking account facility. Steps to vary checking account in Zerodha: Go to Zerodha.com Click on on 'Downloads & sources' hyperlink within the footer 'Assist' part Obtain 'Account modification kind' from the 'Change request varieties' part. Print and fill the shape. Add proof of the brand new checking account*. Ship the shape to the Zerodha workplace in Bangalore. * The accepted financial institution proof is any one of many paperwork like: Cancelled cheque (title should be printed on the cheque) Financial institution assertion (with IFSC Code and MICR No.) (printed self-attested copy) Financial institution passbook (self-attested photocopy) Word: ₹25 can be charged for the modification. As soon as the shape is obtained, it takes 1 working day to replace.   https://www.upcomingipo.org/frauds-stock-brokers-cheat-wealth-protected/ For government Jobs, Please visit www.sarkarinaukri.ws Zerodha broker charges      brokerage charges Zerodha            brokerage charge in Zerodha           brokerage charge Zerodha             Zerodha com Read the full article

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GST Registration in Delhi

GOODS AND SERVICE TAX (GST)

Introduced in 2017, GST Accountants in Delhi is that the biggest reform by the Indian Government. With attention on strengthening the economic structure of the country, it has given the economy an incredible boost. to profit from this tax and to know it in reference to your organization, we a have team of GST Accountants in India return filing consultants. Compliance with the GST provisions may be a must-do task by you, as a registered taxpayer. Otherwise, you’ll end up paying penalty and late fees. 5 major steps include:1. List of all tax invoices and reconciliation thereof: 2. GST Audit: a) Prepare to file two annual returns, if applicable b) Adhere to the reporting requirements: 3. List of HSN for all the inward supplies 4. Segregation of ITC claimed 5. List of all amendment entries and reconciliation thereof:Collating all the information required for filing GST annual returns in one place is a very time-consuming task. We as experts will be glad to ease the process for you:-Our services in relation to the GST include the following:

GST implementation services in case of newly started organizations, review of the GST implementation in case of old organizations.

Undertaking due diligence reviews, both sell side and buy side.

GST advisory services on all matters including stock transfers, classification, valuation, input Tax Return Filing in Delhi credits, registration requirements, ISD, refunds, export benefits, cross charges, job work, reverse charge mechanism etc. The advisory inter alia include services like supply chain cost optimization, review of contracts from GST Registration in Delhi perspective, recommendations on tax clauses, negotiations with vendors/ customers, drafting of indemnification clauses, advising on day to day GST Return Filing Services in Delhi issues, automation solutions in compliances, developing of SOPs for compliances.

Advice on execution of turnkey projects / EPC Contracts involving planning at the pre-bidding stage, structuring of contracts, identification of tax optimization opportunities, devising the foremost tax efficient models and comprehensive range of compliance services subsequent to the bidding stage, etc.

Conducting anti-profiteering studies and assistance in relation anti-profiteering certification, assistance in reference to ITC — 02 certifications for transfer of credit just in case of sale, merger, de-merger, amalgamation etc of entity.

End to end assistance in reference to GST enquiries and assessments, including representation before the Income Tax advisers Authorities.

Preparation of application for obtaining of advance ruling and representation before the Authority for Advance Ruling/ Appellate Authority of Advance Ruling.

Drafting replies to show-cause notices and appeals, including representation before Adjudication and Appellate For.

Complete outsourcing of GST Return Filing Services in India compliances on presence across India basis like obtaining registrations, periodic and annual compliances, preparing reconciliations, analysing eligibility of input tax credits etc.

Assistance in reference to yearly GST Audits and credit reconciliations.

Drafting, filing and processing of refund claims like refund of unutilized credits just in case of export of goods/ services, refunds in case of inverted duty structure, refund in case of export with payment of tax etc.

Conducting trainings for clients and fixing GST help desks at client locations.

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GST Registration in Delhi

GOODS AND SERVICE TAX (GST)Introduced in 2017, GST is that the biggest reform by the Indian Government. With attention on strengthening the economic structure of the country, it has given the economy an incredible boost. to profit from this tax and to know it in reference to your organization, we a have team of GST return filing consultants. Compliance with the

GST Registration in Delhi

, provisions may be a must-do task by you, as a registered taxpayer. Otherwise, you'll end up paying penalty and late fees. 5 major steps include:1. List of all tax invoices and reconciliation thereof: 2. GST Audit: a) Prepare to file two annual returns, if applicable b) Adhere to the reporting requirements: 3. List of HSN for all the inward supplies 4. Segregation of ITC claimed 5. List of all amendment entries and reconciliation thereof:Collating all the information required for filing GST annual returns in one place is a very time-consuming task. We as experts will be glad to ease the process for you:-Our services in relation to the GST include the following:

GST implementation services in case of newly started organizations, review of the GST implementation in case of old organizations.

Undertaking due diligence reviews, both sell side and buy side.

GST advisory services on all matters including stock transfers, classification, valuation, input tax credits, registration requirements, ISD, refunds, export benefits, cross charges, job work, reverse charge mechanism etc. The advisory inter alia include services like supply chain cost optimization, review of contracts from GST perspective, recommendations on tax clauses, negotiations with vendors/ customers, drafting of indemnification clauses, advising on day to day  GST Return Filing Services in India, issues, automation solutions in compliances, developing of SOPs for compliances.

Advice on execution of turnkey projects / EPC Contracts involving planning at the pre-bidding stage, structuring of contracts, identification of tax optimization opportunities, devising the foremost tax efficient models and comprehensive range of compliance services subsequent to the bidding stage, etc.

Conducting anti-profiteering studies and assistance in relation anti-profiteering certification, assistance in reference to ITC – 02 certifications for transfer of credit just in case of sale, merger, de-merger, amalgamation etc of entity.

End to end assistance in reference to GST enquiries and assessments, including representation before the Tax Authorities.

Preparation of application for obtaining of advance ruling and representation before the Authority for Advance Ruling/ Appellate Authority of Advance Ruling.

Drafting replies to show-cause notices and appeals, including representation before Adjudication and Appellate For.

Complete outsourcing of GST compliances on presence across India basis like obtaining registrations, periodic and annual compliances, preparing reconciliations, analysing eligibility of input tax credits etc.

Assistance in reference to yearly GST Audits and credit reconciliations.

Drafting, filing and processing of refund claims like refund of unutilized credits just in case of export of goods/ services, refunds in case of inverted duty structure, refund in case of export with payment of tax etc.

Conducting trainings for clients and fixing GST help desks at client locations.

GST Return Filing Services in Delhi,GST Accountants in Delhi,  GST Accountants in India

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Rule 86A can’t be invoked without communicating reasons of invoking rule 86A to the assessee

M/s HCE India LLP is registered under GST and ITC of the appellant was blocked by the respondent. The respondent issued a SCN proposing for reversal of ITC on account of mismatch of ITC appearing in GSTR-2A and ITC claimed in GSTR-3B. The appellant furnished the reply to such SCN. The Appellant filed an appeal before Hon’ble High Court contended that ITC blocked by respondent by invoking Rule 86A of CGST Rules is not valid as no order was communicated to the appellant about reasons of invoking Rule 86A.

Hon’ble High Court held that power conferred under Rule 86A is very drastic. Power under Rule 86A should be invoked only if fraudulent ITC or ineligible ITC has been claimed by the assessee and the authority has recorded the reasons for the same in writing. In this matter, Hon’ble High Court relied on precedence of apex court in the matter of GKN Driveshafts (India) Limited Vs. ITO reported in (2003) 259 ITR 19 (SC) wherein it was held that in case of reopening of assessment under Section 143(3) of Income Tax Act,  the assessee should be afforded an opportunity of hearing and he is entitled to know the reasons for reopening and is also entitled to object to such reopening done by the Assessing Officer. Same analogy is applicable in the given case also, the authority is bound to record the reasons of invoking Rule 86A in writing and communicate such reasons to the assessee. On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.

Therefore, writ appeal made by appellant is allowed and order passed in writ petition is set aside.

1. Brief facts of the case

M/S. HEC INDIA LLP (The Appellant) is registered under Goods and Service Tax and the respondent blocked ITC of the appellant to the tune of INR 47,30,457/-.

The appellant received a Show Cause Notice from the respondent dated 17th December, 2020 proposing reversal of ITC on account of mismatch between ITC appearing in GSTR-2A and ITC claimed in GSTR-3B.

The appellant filed a reply on 12th January, 2021 to the Show Cause Notice. The respondent blocked the ITC of the appellant by invoking provisions of Rule 86A of CGST Rules, 2017. Appellant filed a representation on 22nd June, 2021.

The appellant filed a Writ before Hon’ble Madras High Court.

The grievance of the Appellant is blocking of ITC availed in the credit ledger of the appellant by invoking Rule 86-A of Central Goods and Services Tax Rules, 2017.

2. Contention of the Appellant

The Appellant filed following arguments before Hon’ble High Court:

The appellant contended that blocking of ITC under Rule 86A was not valid as no order was communicated to the appellant about invoking the power under Rule 86A of CGST Rules, 2017.

Hence, the appellant must be permitted to adjust the credit balance available in Electronic Credit Ledger.

3. Contention of the Respondent

The respondent submitted following points before Hon’ble High Court:

The respondent submitted that it has issued the show cause notice to the appellant on 17th December, 2020 and response was submitted by the appellant to such SCN on 12th January, 2021.

SCN was issued proposing demand for a certain sum for non payment of IGST on Ocean freight charges, wrong availment of Input tax credit etc.

The respondent considered the reply of the appellant and passed the order accordingly.

4. Legal Extracts

Relevant provisions are restated below for ready reference:

Rule 86A- Conditions of use of amount available in electronic credit ledger.-

“(1) The Commissioner or an officer authorized by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as

a)…..

(d)…

may, for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in electronic credit ledger for discharge of any liability under section 49 or for claim of any refund of any unutilised amount.”

5. Analysis of facts and provisions by Hon’ble High Court

Hearing both, Respondent and the Appellant, the Hon’ble court have found out the following as summarised:

Rule 86-A confers the power to the commissioner or an officer authorised by him (not below the rank of any Assistant Commissioner), having reasons to believe that ITC available in the Electronic credit ledger has been fraudulently availed or is ineligible, that he may not allow debit of an amount in electronic credit ledger for discharge of any liability or for claim of any refund.

However, reasons to believe are to be recorded in writing.

Rule 86-A defines various activities in Clause (a) to (d) which would render the assessee ineligible to avail credit.

The powers conferred under Rule 86A are very drastic and therefore, rules enumerate the circumstances under which such power can be invoked. All circumstances are related to ITC availed through fraudulent activity or ineligible ITC.

Power under Rule 86A should be invoked after considering following points:-

In the given case, the appellant has not been intimated in writing about reasons of invoking Rule 86A.

The respondent cannot invoke Rule 86-A without having reasons to believe and without recording such reasons in writing. This is a prerequisite and in the absence any reason, which has been recorded, the invocation Rule 86-A is unauthorised, illegal and without jurisdiction.

Communicating the reasons to assessee whill enable him to to put forth his objections and pray for release of the blocking of the electronic credit ledger.

In this matter, The Hon’ble court has relied on the Judgement of Hon’ble Supreme Court in the matter of GKN Driveshafts (India) Limited Vs. ITO reported in (2003) 259 ITR 19 (SC),  wherein, apex court held that:

Authorities have reasons to believe that the credit in electronic credit ledger has been fraudulently availed or assessee is ineligible to get the credit with regards to clauses (a) to (d) in rule 86-A.

The Authority is required to record such reasons.

The Hon’ble supreme court has laid down a procedure which is required to be followed by Assessing officer dealing cases in which assessments are reopened u/s 143(3) the Income Tax Act, 1961.

In that case, the assessee has the right to seek the reasons for reopening and the assessing officer is bound to furnish the same, if sought for.

Thereafter, the assessee is entitled to file their objections to the reopening of the assessment and the objections are required to be disposed of by the Assessing Officer by passing a speaking order.

The key principles laid down by the Hon’ble Supreme Court is that the assessee should be afforded an opportunity of hearing and he is entitled to know the reasons for reopening and is also entitled to object to such reopening done by the Assessing Officer.

Therefore, the same analogy is applicable to the case on hand.

If the authority has reasons to believe that ITC has been fraudulently availed or ineligible ITC has been availed on any of the grounds given in clauses (a) to (d) of Rule 86-A(1), then, the authority may allow not allow debt in Electronic Credit Ledger after recording the reasons.

After that the authority is bound to communicate the reasons on which such order is passed.

On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.

In the given case, the respondent is bound to consider the representation of the appellant submitted on 22nd June, 2021. The appellant stated in the representation that they have availed credit in accordance with the provisions of the Act and Rule.

Since the appellant did not know the reasons for invoking Rule 86A therefore, the representation is only general in nature. Therefore, for an effective representation to be made the Appellant is entitled to know the reasons, based on which the power under Rule 86-A was invoked by the second respondent.

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