Monthly Tax Chronicle Containing Income Tax & GST Updates of December 2023 Impacting your Current Tax Year
Stay updated on the latest Income Tax and GST developments with our comprehensive monthly Tax Chronicle, offering a concise overview of crucial tax updates and amendments/reforms by the respective Tax authorities. Our initiative aims to streamline information, providing the readers an easy access to all the essential and recent tax developments in one page. Covering a span of about a month, our chronicle encompasses key insights into income tax and GST, ensuring that you stay informed about recent changes that may impact your business or profession.
Hereby we strive to deliver a reader-friendly experience by making the below stated tax developments both interesting and accessible for your convenience.
GSTN Advisory 619: Extension of Deadline for declaration of opening balance for ITC Reversal
To support the taxpayers, the GSTN has extended the deadline for declaring the opening balance for ITC reversal in the statement. Now, taxpayers have until January 31, 2024, to take the advantage of this opportunity. After declaring the opening balance for ITC reversal, only three opportunities for amendments will be provided. This allows corrections for any inadvertent mistakes or inaccuracies in the initial reporting.
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CBIC Notification 56/2023-CT: Extension of Time Limit for Order Issuance under Section 73(9) for Tax Recovery
In line with the dynamic tax landscape, CBIC Notification 56/2023-CT has been issued to extend the time limits for the issuance of orders under section 73(9) of the Central Goods and Services Tax Act, 2017. This pertains specifically to the recovery of tax or excess Input Tax Credit (ITC) utilized in the financial years 2018-19 and 2019-20.
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CBDT Circular 20/2023: Guidelines on TDS Deduction by E-Commerce Operators Under Section 194-O of Income Tax
Section 194-0(4) of the Act empowers the Board, with the Central Government’s approval, to provide guidelines for addressing challenges. Circular No. 17 of 2020 (dated 29th September 2020) and Circular No. 20 of 2021 (dated 25th November 2021) previously outlined guidelines for section 194-0. Following received representations seeking further clarifications, the Board, under the authority of section 194-0(4) of the Act and with Central Government approval, now issues additional guidelines vide this Circular No. 20/2023.
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CBDT Notification 104/2023: Amendment in Rule 10TA & 10TD Pertaining to Safe Harbour Rules for International Transactions
The Central Board of Direct Taxes (CBDT) vide its Notification No.104/2023 Dated. 19th December 2023 has notified some amendment in Rule 10TA and 10TD of Income Tax Rules 1962 pertaining to Safe harbour rules for International transactions. These Rules may be called the Income Tax (Twenty Ninth Amendment) Rules 2023 and they shall come into force from the 1st April, 2024.
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CBIC Instruction No. 5/2023: Instruction to GST Officers to Apply a Nuanced Approach in Secondment of Employee Cases
The directive emphasizes that the Supreme Court ruling in the Northern Operating Systems Pvt Ltd case should not be applied mechanically. Specifically, the CBIC has instructed officers to invoke Section 74(1) of the CGST Act for issuing show cause notices only when there is concrete evidence of fraud, wilful misstatement, or suppression of facts aimed at evading taxes by the taxpayer.
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CBDT Notification No. F. No.225/132/2023/ITA-II: Direction to Expedite Processing ITRs of AY 2018-19 to 2020-21 with Refund Claims for Sending Intimation by 31.01.2024
The Central Board of Direct Taxes (CBDT) has issued direction to Income Tax Authorities vide its Notification No. F. No.225/132/2023/ITA-II dated 1 December 2023 and instructs to expedite the processing of electronically filed valid income tax returns with refund claims for Assessment Years 2018-19, 2019-20, and 2020-21 and sending intimation to taxpayers by 31 January 2024.
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GSTN Advisory 618: Introduction of Two-Factor Authentication for Taxpayers
The Goods and Services Tax Network (GSTN) has issued Advisory No. 618 dated December 1, 2023, notifying taxpayers about a crucial update aimed at enhancing the security of log-in procedures on the GST portal. The advisory highlights the implementation of a two-factor authentication system, emphasizing the importance of bolstering security measures for user access.
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GSTN Advisory 616: Biometric Based Aadhar Authentication and Document Verification for a Streamlined GST Registration
In a recent update, the Goods and Service Tax Network (GSTN) has rolled out Advisory No. 616, dated December 1, 2023, shedding light on significant enhancements to the GST registration application process. The CGST Rules, 2017 (Rule 8) have been amended to allow applicants to be identified on the common portal using advanced Biometric-based Aadhaar Authentication. This involves capturing the applicant’s photograph and verifying the original documents uploaded during the application.
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New ‘Discard ITR’ Option Introduced by Income Tax Department from AY 2023-24
In a significant development, the Income Tax Department has rolled out a pivotal feature ‘Discard ITR’ on its website, empowering taxpayers to discard previously filed but unverified Income Tax Returns (ITRs). This latest functionality goes beyond the traditional scope of ITR revisions, offering taxpayers greater flexibility in managing their tax filings.
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GST Instruction 4/2023: CBIC Directive for Electronic Uploading of Summary Notices (DRC-01) and Summary Orders (DRC-07) on Portal by Proper Officers
The CBIC, vide this Instruction No. 4/2023 Dated. 23 November 2023, has specified that, as per Rule 142(1) of CGST Rules, 2017, along with the notices issued under above mentioned sections of CGST Act, a summary of such notice is also required to be uploaded by the proper officer electronically on the portal in FORM GST DRC-01 and as per Rule 142(5) of CGST Rules 2017, along with the notices issued under above mentioned sections of CGST Act, a summary of such order is also required to be uploaded electronically on the portal by the proper officer in FORM GST DRC-07. Related sections of notices and orders referred here are available in the article linked below.
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