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BSMART is an organization of 100+ professionals which include diversely-experienced Chartered Accountants, Company Secretaries, Lawyers, MBAs and a dedicated support staff with state-of-the-art infrastructure. Our services span a diverse range starting from domestic & foreign funding in the form of equity, debt & strategic investment, financial structuring , mergers & acquisitions, legal consultancy, registrations under various Acts, licensing, secretarial compliance , IPO guidance , liaisoning , project management consultancy, auditing services – internal, statutory, GST, tax audits, etc., accounting services, FEMA compliance, setting up of entities in India, Income Tax and GST consultancy and compliance, SOP implementation, succession planning and so on. Headquartered in Pune, BSMART has offices in Mumbai and London. BSMART CA Firm in Pune

Updates

 

KEY DECISIONS TAKEN IN 45th GST COUNCIL MEETING

 

  • RECOMMENDATIONS RELATING TO GST LAW AND PROCEDURE

 

  1. Measures for Trade facilitation:

 

  1. Relaxation in the requirement of filing FORM GST ITC-04:

Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:

  1. Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
  2. Taxpayers whose annual aggregate turnover in preceding financial year is up to Rs. 5 crores shall furnish ITC-04

 

  1. Interest on liability:

In the spirit of earlier Council decision that interest is to be charged only in respect of net cash liability, section 50 (3) of the  CGST Act  to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”. It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.

 

  1. Transfer of unutilized CGST and IGST cash ledger balance:

Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards.

 

  1. Measures for streamlining compliances in GST :

 

  1. Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next month’s FORM GSTR-3B.

 

  1. Refund to be disbursed in the bank account, which is linked with PAN on which registration has been obtained under GST.

 

  1. Rule 59(6) of the CGST Rules to be amended e.f 01.01.2022 to provide that a registered person shall be allowed to furnish FORM GSTR-1, only after FORM GSTR-3B for the preceding month is filed

 

  1. Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.

 

  1. Clarification on circulars to remove ambiguity :

 

Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large:

 

  1. Clarification on scope of “intermediary services”;

 

Clarification relating to interpretation of the term “merely establishment of distinct personin condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services.

A person incorporated in India under the Companies Act, 2013 and a person incorporated under the laws of any other country are to be treated as separate legal entities and would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for considering a supply of service as export of services;

 

  1. Clarification in respect of certain GST related issues:

 

  1. e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017

 

  1. There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017

 

  1. Only those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund of accumulated ITC.

 

  1. Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding

                    Procedure and time limit for filing refund of tax wrongfully paid as specified in section

                  77(1) of the CGST/SGST Act and section 19(1) of the IGST Act.

 

 

 

 

 

 

  • RECOMMENDATIONS RELATING TO GST RATES ON GOODS AND SERVICES

 

  1. COVID-19 relief measure in form of GST rate concessions

           

  1. Extension of existing concessional GST rates (currently valid till 30th September, 2021) on following Covid-19 treatment drugs, up to 31st December, 2021, namely-
    1. Amphotericin B – NIL
    2. Remdesivir – 5%
    3. Tocilizumab – NIL
    4. Anti-coagulants like Heparin – 5%

              

  1. Reduction of GST rate to 5% on more Covid-19 treatment drugs, up to 31st December, 2021, Namely
    1. Itolizumab
    2. Posaconazole
    3. Infliximab
    4. Favipiravir
    5. Casirivimab & Imdevimab
    6. 2-Deoxy-D-Glucose
    7. Bamlanivimab & Etesevimab

          

   Major recommendations on GST rate changes in relation to Goods [w.e.f 1.10.2021 unless otherwise stated]

 

Sr.no.

Description

From

To

1.

Retro fitment kits for vehicles used by the disabled

Applicable Rate

5%

2.

Fortified Rice Kernels for schemes like ICDS etc.

18%

5%

3.

Medicine Keytruda for treatment of cancer

12%

5%

4.

Biodiesel supplied to OMCs for blending with Diesel

12%

5%

5.

Ores and concentrates of metals such as iron, copper, aluminum, zinc and few others

5%

18%

6.

Specified Renewable Energy Devices and parts

5%

12%

7.

Cartons, boxes, bags, packing containers of paper etc.

12 % /18%

18%

8.

Waste and scrap of polyurethanes and other plastics

5%

18%

9.

All kinds of pens

12 % / 18%

18%

10.

Railway parts, locomotives & other goods in Chapter 86

12%

18%

11.

Miscellaneous goods of paper like cards, catalogue, printed material (Chapter 49 of tariff)

12%

18%

12.

IGST on import of medicines for personal use, namely
i. Zolgensma for Spinal Muscular Atrophy
ii. Viltepso for Duchenne Muscular Dystrophy
Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals.

12%

Nil

13.

IGST exemption on goods supplied at Indo-Bangladesh Border haats

Applicable Rate

Nil

14.

Unintended waste generated during the production of fish,meal except for Fish Oil

 

Nil (for the period 1.7.2017 tomeal except for Fish Oil 30.9.2019)

 

  1. Other changes relating to GST rates on goods :

 

  1. Supply of mentha oil from unregistered person has been brought under reverse charge.

Further, Council has also recommended that exports of Mentha oil should be allowed only against LUT and consequential refund of input tax credit.

 

  1. Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.

 

  1. Correction in Inverted Duty structure in Footwear and Textiles sector :

GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, as was discussed in earlier GST Council Meeting and was deferred for an appropriate time, will be implemented with effect from 01.01.2022.

 

  1. In terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether

     Specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage.

 

  1. Major GST changes in relation to rates and scope of exemption on Services [w.e.f 1.10.2021 unless otherwise stated] :

 

Sr.no.

Description

From

To

1

Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended up to 30.9.2022.

--

Nil

2

Services by way of grant of National Permit to goods carriages on payment of fee

18%

Nil

3

Skill Training for which Government bears 75% or more of the expenditure [presently exemption applies only if Government funds 100%].

18%

Nil

4

Services related to AFC Women's Asia Cup 2022

18%

Nil

5

Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programmes [ to bring parity between distribution and licensing services]

12%

18%

6

Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media)

12%

18%

     

  • Exemption on leasing of rolling stock by IRFC to Indian Railways withdrawn.

 

  • E Commerce Operators are being made liable to pay tax on following services provided through them
  1. Transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022]
  2. Restaurant services provided through it with some exceptions [w.e.f. 1st January, 2022]

 

  • Certain relaxations have been made in conditions relating to IGST exemption relating to import of goods on lease, where GST is paid on the lease amount, so as to allow this exemption even if (i) such goods are transferred to a new lessee in India upon expiry or termination of lease; and (ii) the lessor located in SEZ pays GST under forward charge.

 

 

  1. Clarification in relation to GST rate on Goods :

 

  1. Pure henna powder and paste, having no additives, attract 5% GST rate under Chapter 14.

 

  1. Scented sweet supari and flavored and coated illachi falling under heading 2106 attract GST at the rate of 18%.

 

  1. Carbonated Fruit Beverages of Fruit Drink" and "Carbonated Beverages with Fruit Juice" attract GST rate of 28% and Cess of 12%. This is being prescribed specifically in the GST rate schedule.

 

  1. Tamarind seeds fall under heading 1209, and hitherto attracted nil rate irrespective of use. However, henceforth they would attract 5% GST rate (w.e.f. 1.10.2021) for use other than sowing. Seeds for sowing will continue at nil rate.

 

  1. External batteries sold along with UPS Systems/ Inverter attract GST rate applicable to batteries [28% for batteries other than lithium-ion battery] while UPS/inverter would attract 18%.

 

  1. GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, during the period from 1.7.2017 to 31.12.2018, in the same manner as has been prescribed for the period on or after 1st January 2019.

 

  1. Due to ambiguity in the applicable rate of GST on Fibre Drums, the supplies made at 12% GST in the past have been regularised. Henceforth, a uniform GST rate of 18% would apply to all paper and paper board containers, whether corrugated or non corrugated.

 

  1. Distinction between fresh and dried fruits and nuts is being clarified for application of GST rate of “nil” and 5%/12% respectively;

 

  1. It is being clarified that all pharmaceutical goods falling under heading 3006 attract GST at the rate of 12% [ not 18%].

 

  1. Essentiality certificate issued by Directorate General of Hydrocarbons on imports would suffice; no need for taking a certificate every time on inter-state stock transfer.

 

  1. Brewers' Spent Grain (BSG), Dried Distillers’ Grains with Soluble [DDGS] and other such residues, falling under HS code 2303 attract GST at the rate of 5%.

 

  1. All laboratory reagents and other goods falling under heading 3822 attract GST at the rate of 12%.

 

  1. Clarification in relation to GST rate on services :

 

  1. Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of ‘Scholarships for students with Disabilities” is exempt from GST.

 

  1. Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST [without ITC].

 

  1. Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by parlors would attract GST at the rate of 18%.

 

  1. Overloading charges at toll plaza are exempt from GST being akin to toll.

 

  1. The renting of vehicle by State Transport Undertakings and Local Authorities is covered by expression ‘giving on hire’ for the purposes of GST exemption

 

  1. The services by way of grant of mineral exploration and mining rights attracted GST rate of 18% w.e.f. 01.07.2017.

 

  1. Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate of 28% applies only to admission to such facilities that have casinos etc.

 

  1. Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products.

 

  1. On the issue of compensation scenario, a presentation was made to the Council wherein it was brought out that the revenue collections from Compensation Cess in the period beyond June 2022 till April 2026 would be exhausted in repayment of borrowings and debt servicing made to bridge the gap in 2020-21 and 2021-22. In this context various options, as have been recommended by various committees/ forums were presented. The Council deliberated at length on the issue. The Council decided to set up a GoM to examine the issue of correction of inverted duty structure for major sectors; rationalize the rates and review exemptions from the point of view of revenue augmentation, from GST. It was also decided to set up a GoM to discuss ways and means of using technology to further improve compliance including monitoring through improved e-way bill systems, e-invoices, FASTag data and strengthening the institutional mechanism for sharing of intelligence and coordinated enforcement actions by the Centre and the States.

 

Nature of Compliance

 

 

 

 

(1)

Original Due Dates

 

 

 

 

(2)

1st Extended dates vide Circular No. 9/2021 dated 20.5.2021

 

(3)

New Extended due dates vide Circular No. 17/2021 dated 20.5.2021

 

(4)

IT Returns (Non-Audit)

31st Jul-2021

30th Sept-2021

31st Dec-2021

Filing an Audit Report

30th Sept-2021

30th Nov-2021

15th Jan-2022

IT Returns (Audit Case)

31st Oct-2021

30th Nov-2021

15th Feb-2022

Audit reports u/s 92E

31st Oct-2021

30th Nov-2021

31st Jan-2022

Filing of ROI for 92E entities

30th Nov-2021

31st Dec-2021

28th Feb-2022

Belated/revised Return

31st Dec 2021

31st Jan-2022

31st Mar-2022

 

 

 

 

 

Note:

The Extension of Due Date is subject to Interest U/s 234 A if net tax payable is above ₹ 1 Lakh as per original due dates (as mentioned in column 2)

EXTENSION OF TIME LIMITS FOR EASE OF TAX COMPLIANCE

Compliances related to uploading of declaration/exercising of option/ other compliances

Section of Income-tax Act, 1961/Rule or Form of Income-tax Rules, 1962

Existing Due Date

Extended due date

Uploading of the declarations received from recipients during the quarter ending 30th June, 2021

Form No. 15G/SH

15 July, 2021

31 August, 2021

Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission)

Sub-section (1) of Section 245M of the Act in Form No. 3488

27 June, 2021

31 July, 2021

Linkage of Aadhaar with PAN

Section 139AA

30 June, 2021

30 Sept. 2021

 

Compliances related to filing of Application/Investment, deposit etc.

Section of Income-tax Act, 1961/Rule or Form of Income-tax Rules, 1962

Existing Due Date

Extended due date

The application for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/Research Associations etc.

Section 10(23C), 12AB, 35(1/a)/) and 80C/ Form No. 10A/ Form No.10AR.

30 June, 2021

31 Aug. 2021

The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase. construction or such other action, by whatever name called, for the purpose of claiming any exemption

Section 54 to 54CB

The last date of such compliance falls between 1st April 2021 to 29th September 2021 (both days inclusive)

May be completed on or before 30th September, 2021

 

Compliances related to filing of Statements

Section of Income-tax Act, 1961/Rule or Form of Income-tax Rules, 1962

Existing Due Date

Extended due date

The Quarterly Statement to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021

Form No. 15CC/ Rule 37 BB

15 July, 2021

31 July, 2021

The Equalization Levy Statement for the Financial Year 2020-21

Form No. 1

30 June, 2021

31 July, 2021

The Annual Statement required to be furnished by the eligible investment fund for the Financial Year 2020-21

sub-section (5) of section 9A/Form No. 3CEK

29 June, 2021

31 July, 2021

 

Compliances related to passing of order/processing of returns

Existing Due Date

Extended due date

Time Limit for passing assessment order

30 June, 2021

30 Sept, 2021

Time Limit for passing penalty order

30 June, 2021

30 Sept, 2021

Time Limit for processing Equalisation Levy returns

30 June, 2021

30 Sept, 2021

 

Compliances related to filing of Objections to DRP and Assessing Officer

Section of Income-tax Act, 1961/Rule or Form of Income-tax Rules, 1962

Existing Due Date

Extended due date

The last date to file the objections to Dispute Resolution Panel (DRP) and Assessing Officer (AO)

Section 144C

1 June 2021 or thereafter

Within the time provided in Section 1440 of by 31 August 2021, whichever is later

 

Compliances related to filing of Statements/Certificate

Section of Income-tax Act, 1961/Rule or Form of Income-tax Rules, 1962

Existing Due Date

Extended due date

The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21

Rule 31A

30 June, 2021

15 July, 2021

The Certificate of Tax Deducted at Source required to be furnished to the employee

Form No. 16/Rule 31

15 July, 2021

31 July, 2021

The Statement of Income paid or credited by an investment fund to its unit holder for the Previous Year 2020-21

Form No 64D/Rule 12CB

30 June, 2021

15 July, 2021

The Statement of Income paid or credited by an investment fund to its unit holder for the Previous Year 2020-21

Form No. 64C/Rule 12CB

15 July, 2021

31 July, 2021

 

Compliances related to Vivad Se Vishwas Act, 2020

Act

Existing Due Date

Extended due date

Last date of payment of Amount under Vivad se Vishwas without additional amount)

Vivad se Vishwas Act, 2020

30 June, 2021

31 August, 2021

Last date of payment of Amount under Vivad se Vishwas with additional amount)

Vivad se Vishwas Act, 2020

-

Notified as 31 October, 2021

 

Area of our services

At BSMART we assist our clients in the availment of funding in the form of debt and / or equity. Basis our ties with fund houses / banks in and outside India, BSMART caters to specific needs of its clients.
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BSMART provides end to end services related to Secretarial Compliances and Registrations. The brief list is as follows – Company Registrations, LLP Registrations, Annual Filing and regulatory compliance …
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In the dynamic world of a business, BSMART plays a key managerial role by taking care of the financial health of an organization. At BSMART, we have developed a unique product – FHC (Financial Health Check)…
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BSMART provides consultancy services to our clients by formulating effective strategies for optimizing taxes, implementing innovative tax planning & effectively maintaining compliance in tax regime..
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BSMART provides tailor made SOP formation and implementation focusing on client needs. We help simplify the working of critical and routine business processes to achieve desired quality and consistency….
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BSMART assists clients with audit functions providing comprehensive year-round audit procedure, which goes well beyond the routine transactions. We help our clients with Statutory Audit, Tax Audit, GST Audit…
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BSMART provides advisory services on financial arrangement to various business houses. Some of the provided services are preparation of project report and liaison with Term Lending Institutions/Financial..
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BSMART assists its clients in restructuring their Business to ensure that they fetch optimum valuations. BSMART also helps in providing end to end services pertaining to Mergers & Acquisitions: Advisory& Assistance
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BSMART’s FAM department provides tailor made solutions for its clients and different options to choose from. The clients may either prepare accounts and get it reviewed from our experts……
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BSMART provides services right from setting up of the entity in India to commencement of operations and beyond. These include advisory on type of entity to be set up, modes of setting up, assistance in availment of registrations…
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BSMART has an in-house team of advocates and we are also associated with some of the top legal firms in India. We also assist in Drafting of Various Agreements such as Partnership Deed, HUF Deeds, Trust Deeds….
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IPO or Initial Public Offer gives investors the prospect to acquire an edge early in companies and gain higher investment returns during a shorter time span. We keep track of companies entering the capital markets…..
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Why Us?

Building a good client experience does not happen by accident. At BSMART, for more than two decades now we have been bringing smiles to the faces of all our stakeholders. Through our integrated service lines, we help our clients to capitalize on new opportunities, assess and improve existing practices to deliver growth. Our high-performing teams of professionals help them in fulfilling statutory and regulatory requirements, optimize performance and ultimately meet stakeholder needs. We strongly believe in sustainable growth and in order to offer services of the highest quality to our clients, we make sure to indulge in continuous improvement of our performance, investing in our people and foster innovation.

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Head Office:
Sujay Garden, Swayambhu, Ground floor, Sr.No 706 A & B , Mukund Nagar, Pune 411037
Tel: 020 48638899 , 48648899

Mumbai Branch:
The Capital, Level 7, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051

London Office:
BSMART London LTD.
71-75, Shelton Street, London, Greater London,
WC2H 9JQ, UNITED KINGDOM.

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