Direct Tax

Relaxation from the requirement of electronic filing of Form 3CF

[Circular No. 5/2022 dated 16 March 2022]

In light of the difficulties in filing Form 3CF, CBDT has provided the following relaxations under Section 119.

Taxpayers seeking approval under Section 35(1)(ii)/(iia)/(iii) of the Act may file the application in Form No. 3CF physically during the period from the date of issuance of this Circular till:

  • 30 September 2022; or
  • the date of availability of Form No. 3CF for electronic filing on the e-filing website whichever is earlier.

CBDT condones delay in filing of Form 10-IC for AY 2020-21

[Circular No. 6/2022 dated 17 March 2022]

In order to avoid genuine hardship to the domestic companies in exercising the option under Section 115BAA of the Act, the CBDT under Section 119(2) (b) of the Act has provided the below:

The delay in filing Form 10-IC as per Rule 21AE of the Rules for AY 2020- 21 is condoned in cases where the following conditions are satisfied:

  • The return of income for AY 2020-21 has been filed on or before the due date specified under Section 139(1) of the Act;
  • The taxpayer has opted for taxation under Section 115BAA of the Act in the Form of Return of Income ITR-6 and
  • Form 10-IC is filed electronically on or before 30 June 2022 or three months from the end of the month in which this Circular is issued, whichever is later.

Indirect Tax

Applicability of e-invoicing to specified taxpayers

[Notification No. 01/2022 - Central Tax dated 24 February 2022]

From 1 April 2022, e-invoicing would be applicable to all taxpayers having turnover above INR 200 million in a financial year. Accordingly, such taxpayers would be required to have Invoice Reference Number (IRN)/Quick Response (QR) code printed on their outward B2B and export invoices, credit and debit notes. However, the above requirement is not applicable to:

  1. An insurer or a banking company, or a financial institution, including a non-banking financial company.
  2. Goods Transport Agency.
  3. Supplier of passenger transportation service.
  4. Supplier of services by way of admission to the exhibition of cinematograph films on multiplex screens.

Power to adjudicate show cause notices to specified officers

[Notification No. 02/2022-Central Tax dated 11 March 2022 amending Notification No. 2/2022-Central Tax dated 19 June 2017]

The Additional Commissioners/Joint Commissioners of specified Central Tax Commissionerates have been empowered with pan India jurisdiction to adjudicate show cause notices issued by the officers of the Directorate General of Goods and Services Tax Intelligence (DGGI).

Proper officer for adjudication

[Circular No. 169/01/2022-GST dated 12 March 2022]

CBIC has clarified that officers of Audit Commissionerates and the DGGI shall exercise powers only to issue show cause notices. The notices so issued shall be adjudicated by the competent Central Tax officer of the executive Commissionerate in whose jurisdiction the noticee is registered.

In the case where the principal place of business of a noticee falls under the jurisdiction of multiple Commissionerates or multiple notices have been issued on the same matter to different noticees, including the persons having the same PAN but different GSTINs having a place of business falling under the jurisdiction of multiple Central Tax Commissionerates, the Additional/ Joint Commissioner of Central Tax of specified Commissionerates have been empowered with all India jurisdiction to adjudicate such notices.

A proposal for appointment of common adjudicating authority may be sent to the Board in respect of show cause notices issued by the Audit Commissionerates and DGGI. Furthermore, the notices already issued by DGGI officers and where no adjudication order has been issued till date may be made answerable to the Additional/Joint Commissioners having all India jurisdiction by issuing corrigendum to such notices.

Standard Operating Procedure (SOP) for scrutiny of GST returns

[Instruction No. 02/2022-GST dated 22 March 2022]

The CBIC has issued a detailed SOP for initiating scrutiny of GST returns for FY 2017-18 and FY 2018-19 by the officers of Central GST. The SOP has been issued as an interim measure in order to ensure uniformity in - (i) selection/identification of returns for scrutiny, (ii) methodology of scrutiny of such returns, and (iii) other related procedures.

Sr. No. Source Parameter to be Scrutinized
1. Outward Tax Liability
  1. Difference between the tax liability as per GSTR-1 vis-à-vis GSTR-3B.
  2. Outward taxable value disclosed in GSTR-3B visà-vis amount reflected under TDS/TCS Table of GSTR-2A.
  3. Tax liability disclosed in GSTR-3B vis-à-vis amount reflected in E-Way bill data.
2. Tax Liability under RCM

RCM Liability paid to be verified with

  • Corresponding credit availment.
  • With corresponding entries reflected in GSTR-2A.
  • Cash payment in GSTR-3B.
3. Credit availment and reversal
  1. Credit passed through ISD vis-à-vis credit reflected in GSTR-2A.
  2. Amount of credit availed in GSTR-3B (All other ITC/Import of goods) vis-à-vis amount reflected in relevant tables of GSTR-2A.
  3. Claim of credit in respect of supplies from taxpayers whose registrations have been canceled retrospectively shall be ineligible. The effective date of cancellation of registrations of the suppliers, if any, is made available in the relevant tables of GSTR-2A.
  4. Ineligible ITC availed in respect of invoices/debit notes issued by the suppliers who have not filed their GSTR-3B returns for the relevant tax period.
  5. Credit not to be allowed if GSTR-3B of a tax period is filed after the last date of availment of ITC in respect of any invoice/debit note as per Section 16(4).
  6. Whether the assessee has made reversals of ITC in accordance with provisions of Rule 42 and Rule 43 of the CGST Rules, if applicable.
4. Interest and Late Fees

Whether the assessee has paid interest liability in terms of Section 50 or late fee in terms of Section 47 in respect of returns/statements.
Tax Street March 2022