AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OCTOBER-2022

The Institute of Chartered Accountants of India

(Setup by an Act of Parliament)

Ahmedabad Branch of WIRC of ICAI

E-NEWSLETTER

Volume: 09 | ISSUE NO: 08 | October-2022 Chairperson’s Message

OFFICE BEARERS Respected Members,
Chairperson
CA. Bishan R. Shah During the month of September, we all were busy in
98250 23573 finalizing the audits and were working hard to fulfill our
Vice Chairperson prime duty as an auditor. "A DREAM DOESN'T BECOME
CA. (Dr.) Anjali Choksi REALIT Y THROUGH MAGIC; IT TAKES SWEAT,
98257 73179 DETERMINATION AND HARD WORK." We are working
Secretary towards excellence and I am sure that we have been
CA. Neerav A. Agarwal determined to give our best to all the stake holders. We
9879672485 are committed to work for the country and we are contributing extensively
Treasurer towards nation building under the guidance of our visionary President
CA. Samir S. Chaudhary CA. (Dr.) Debashis Mitra Sir and Vice- President CA. Aniket Talati Sir.
9377471779
Members Under the dynamic leadership of our CCM CA. Purshottam Khandelwal Sir,
CA. Chetan J. Jagetiya the Ahmedabad Branch had made a representation to the RERA
CA. Abhinav A. Malaviya Chairperson Dr. Amarjeet Singh Sir for extension of the Annual Return-
CA. Rinkesh K. Shah Form 5 under GujRERA based upon which the Authority was kind enough to
CA. Sunil Sanghvi consider our request and extend the due date.
CA. Sunit J. Shah
Ex. Officio Members During the month of September, we all have worked extensively and for
CA. Aniket Talati, long office hours to complete our audit assignments, this attitude
(VicePresident) 98255 51448 displayed by us reflects our dedication, discipline, and commitments for
CA. Purushottam H. the work during the audit season which is a festival of learning for us.
Khandelwal, CCM
9825020844 Keeping in mind our hectic schedule for the month of September and the
CA. Chintan Patel, RCM need to refresh ourselves, we have organized a drama for our members and
90999 21163 students on learning management lessons from Mahatma Gandhi on 2nd
CA. Hitesh Pomal, RCM October 2022. During the initial days of this Festival of Navratri i.e. Navratri
98240 49402 2022 we were all busy in performing our Dharma as auditors, so we at the
Newsletter Committee Ahmedabad Branch thought to organise a grand celebration for our
Chairperson: Members and in furtherance of the same the Branch Garba is organised
CA. Samir S. Chaudhary on 5th October 2022 at Rajpath Club, we are thankful to all the members
Co-Chairperson: and students for their overwhelming response and we extend our special
CA. Hemlata Dewnani thanks to CA. Gautam Choksi Sir for his support in connecting the
Convener: renowned artist Shyamal-Saumil and President of Rajpath Club Shri
CA. Jay Pankajbhai Shah Jagdishbhai Patel and his TEAM. It will be a vibrant ICAI Navratri to
Members: celebrate. We are also organising our national student conference on 23rd
CA. Abhishek Bardia and 24th December 2022 at the University Convention Hall. I urge and
CA. Ajay Daga request all the members to encourage their articles to attend this event.
CA. Akash Pawankumar Jain
CA. Homesh Mulchandani This year ICAI is hosting The World Congress of Accountants (WCOA) for
CA. Jaiminkumar G. Shah the first time in past 118 years, this is organised from 18th November to
CA. Karan Gopalbhai Gupta 21st November, 2022. This is a historic event for all of us and it will be a
CA. Karan Ranka golden opportunity for us to participate in the same. From Ahmedabad
CA. Karim Lakhani more than 150 members have registered and we from Ahmedabad branch
CA. Kushal B. Reshamwala
CA. Mahadev Birla
CA. Mahavir Shah
CA. Manishkumar Dubey
CA. Mohit R Tibrewala
CA. Monish S. Shah
CA. Parth Joshi
CA. Naveen Surana
CA. Nehal Sheth
CA. Vishal P. Desai

Whats Inside???

Editorial 03 GST Quick Connect 08 How to Convert... 14
Direct Tax Updates 04 12 Motivational Story 15
GST Updates 06 From the RBI 13 Event in Images 16
Excel in Excel Media Coverage 18

October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

will also there to help our members. We had also organised a virtual workshop jointly
Registrations are still open and if you want any with Gujarat University on intellectual property
information kindly visit rights where faculties from all over India joined
www.wcoa2022mumbai.org or do contact us. us and deliberated on various topics. We are
We at Ahmedabad branch are happy to assist thankful to Advocate Nakul Sharedalal for
our member for the same. helping us in carving out this wonderful virtual
series.
Ahmedabad Branch recently had an opportunity
to host an event for the “Committee For On the occasion of Teachers' Day as a mark of
Members In Practice” where two MOU's were paying our resects to our faculties and teachers
signed with Microvista and Onlinepsbloan for at the branch we celebrated Teachers' Day and
the benefits of the members in practice. felicitated our teachers. With time ESOPs are
gaining importance and therefore to provide
We at the Branch were also fortunate to have better clarity to our members on the same we
been invited by Gyanvatsalswamiji for the full had organised a Virtual seminar titled “360
day conference in Pramukhswami Shatabdi degree on ESOP”.
Mahotsav to be held in December, 2022. There are a slew of amendments that are
brought into the Foreign Exchange
We were fortunate to participate in Management Act and to update the knowledge
international conclave on forensic accounting of our members on the same we also organised
and fraud investigation detection organised by a lecture meeting
Digital Accounting and Assurance Board, ICAI
jointly with National Forensic University of We had also organised Explorer 2022 - A
India. We also had hosted a National Women National Level Business Conclave jointly with
Conference, where more than 140 female GLS University's faculty of commerce and we are
members participated, with learning, thankful to CA. Dr M.E. Jokhi Sir and CA. Sneha
TALETHON- A talent Hunt and ACCELERATOR – Master for the same. It was a mix of Finance,
An exhibition of women entrepreneurs. It gave a Marketing, Analysis, and Crisis, which are the
great sense of confidence and happiness to our functions necessary for managing corporates
female members. Kudos to our Vice- and start-ups. The objective behind organising
Chairperson CA. Anjali Chokshi for the this business conclave is to provide students i.e.,
successful conference. our future members with a plethora of
knowledge-enhancing opportunities.
It is our endeavor to promote CA startups and
enhance our role in startup ecosystem. "Hard work beats talent when talent doesn't
Ahmedabad Branch has taken initiative to work hard." My best wishes to all of you, for the
achieve the same and as a result Committee on coming Festive Season and I hope that the
MSME and start-up, ICAI has signed a MOU with almighty gives us the strength to do the HARD
I-Hub Gujarat, to help startups of CAs. Members WORK to achieve success.
are requested to come forward to help and
guide start-ups and wherever required we are CA. Bishan R. Shah,
ready to support them in nurturing. Chairperson,
Ahmedabad Branch of WIRC of ICAI

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EDITORIAL

On this auspicious day, I wish Even after the new tax portal, the culture of
all persons covered u/s 2(31) extension continues…. The income tax
and all their relatives covered department on Friday extended the due date
u/s 40(A)2b prosperity in your for filing tax audit reports for fiscal 2021-22 by 7
income from salary u/s 17, days till October 7.
business & profession u/s 28
and gains u/s 45 of Income Tax This extension gave relief to the professionals
Act, a very Happy Diwali in but it also ruined the plans of Navratri for many
advance!!! of my fraternity members. The battle is not over
yet, along with the extension of Tax Audit
Diwali is a festival of inspiration and hope. The Report the due date of DIR-3 KYC is also
celebration of lights is eagerly awaited by the extended. And no to mention the due dates of
Hindus living across the globe. Diwali is an Quarterly returns & half yearly compliances also
auspicious time to share happiness and fall in the month of October and they remain the
greetings with your relatives and friends. same. This could result into yet another month
of workload for the professionals.
When Rama finally returned after 14 years, it
was once again full of light. The denizens Talking about notifications, the Central Goods
welcomed their leader by illuminating their and Services Tax (Second Amendment) Rules,
homes and streets. This story has an inner 2022 was introduced on 29 Sep 2022, which
significance. It teaches us that each person must extended the time limit to claim ITC, issue credit
transform his own heart into an Ayodhya — an notes & file returns up to 30th November 2022,
abode of the Lord, a source of light and love and and also introduced many new restrictions on
peace. monthly claim and utilization of credit.

Where there is true love, there is light, and vice This month is going to be of a great haste but we
versa. Without these virtues, life becomes being members of this esteemed Institute have
miserable. The citizens of Ayodhya were fully faced many such cases in past, so I am sure we
aware of the cause of the darkness that will conquer this time as well and meet all the
enveloped their lives and the resulting due dates on time.
agonizing pain. They knew that the vacuum was I also request to all the members who are willing
created by the absence of God in their city, to contribute for newsletter on any topic can
which was, in reality, their own hearts. share the same with us at
Conversely, people in today's world are unaware [email protected]
of this emptiness in their lives.

'TOGETHER EVERYONE ACHIEVES MORE'
Stay Safe and Stay Happy!!
Happy learning!!

CA Samirkumar Chaudhary
Treasurer, MCM (Ahmedabad Branch)
Chairman, Newsletter Committee

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October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

Direct Tax Updates

Compiled by: CA Mohit R. Tibrewala

1. Circular No. 18/2022 dated 13.09.2022 – In which such benefit or perquisite is
Additional Guidelines for removal of provided by him.
difficulties under sub-section (2) of Accordingly, in exercise of the power
section 194R of the Income Tax Act, conferred by sub-section (2) of section
1961. 194R of the Act, CBDT had issued
Finance Act 2022 inserted a new section guidelines in the form of the Circular no
194R in the Income-tax Act, 1961 12 of 2022 dated 16th June 2022.
(hereinafter referred to as "the Act") Subsequently, some more clarifications
with effect from 1st July 2022. are requested by stakeholders on various
The new section mandates a person, who issues. Accordingly, this Circular is also
is responsible for providing any benefit issued under sub-section (2) of section
or perquisite to a resident, to deduct tax 194R to provide clarification on Issues
at source @ 10% of the value or which will help to remove difficulties in
aggregate of value of such benefit or implementation of this provision. Please
perquisite, before providing such benefit refer the link for the same.
or perquisite. The benefit or perquisite
mayor may not be convertible into money h ps://www.incometaxindia.gov.in/communica
but should arise either from carrying out
of business, or from exercising a ons/circular/circular-no-18-2022.pdf
profession, by such resident. 2. Notification No. 110/2022 dated
This deduction is not required to be 19.09.2022 – Income Tax 31st
made, if the value or aggregate of value Amendment Rules, 2022.
of the benefit or perquisite provided or The modified return of income to be
likely to be provided to the resident furnished by a successor entity to a
during the financial year does not exceed business reorganisation, as referred to in
twenty thousand rupees. section 170A, for an assessment year,
The responsibility of tax deduction also shall be in the Form ITR-A and verified in
does not apply to a person, being an the manner specified therein. The return
Individual/Hindu Undivided Family (HUF) of income referred to in sub-rule (1) shall
deductor, whose total sales / gross be furnished electronically under digital
receipts / gross turnover from business signature. If the assessment or
does not exceed one crore rupees, or reassessment proceedings for an
from profession does not exceed fifty assessment year relevant to a previous
lakh rupees, during the financial year year to which the order of the business
immediately preceding the financial year reorganisation applies have been
completed or are pending on the date of
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October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

furnishing of the modified return in corresponding period of the immediately
accordance with the provisions of section preceding Financial Year i.e FY 2021-22,
170A, the Assessing Officer shall, pass an showing a growth of 17%. The Advance
order modifying the total income of the Tax collection of Rs. 2,95,308 crore
relevant assessment year determined in comprises Corporation Tax (CIT) at Rs.
such assessment or reassessment, or 2,29,132 crore and Personal Income Tax
proceed to complete the assessment or (PIT) at Rs. 66,176 crore.
reassessment proceedings, as the case
may be, in accordance with the order of h ps://pib.gov.in/PressReleasePage.aspx?PRID=
the business reorganisation and the
modified return so furnished. 1860359
4. Press Release dated 17.09.2022 – CBDT
h ps://www.incometaxindia.gov.in/communica
issues revised Guidelines for
ons/no fica on/no fica on-no-110-2022.pdf Compounding of offences under the
3. Press Release dated 18.09.2022 – Gross Income Tax Act, 1961.
In conformity with the Government's
Direct Tax Collection for the F.Y. 2022- policy of facilitating Ease of Doing
23 Business and decriminalisation of
The figures of Direct Tax collections for offences, CBDT has taken steps in this
the FY 2022-23, as on 17.09.2022 show direction and issued revised Guidelines
that net collections are at Rs. 7,00,669 for Compounding of offences under the
crore, compared to Rs. 5,68,147 crore in Income-tax Act, 1961(the 'Act') dated
the corresponding period of the 16.09.2022 with reference to various
preceding Financial Year i.e. FY 2021-22, offences covered under the prosecution
representing an increase of 23%.The provisions of the Act.
Net Direct Tax collection of Rs. 7,00,669 Some of the major changes made for the
crore(net of refund)includes Corporation benefit of taxpayers include making
Tax (CIT) at Rs. 3,68,484 crore and offence punishable under Section 276 of
Personal Income Tax (PIT) including the Act as compoundable. Further, the
Securities Transaction Tax(STT) at Rs. scope of eligibility for compounding of
3,30,490 crore. cases has been relaxed whereby case of
The Gross collection of Direct Taxes an applicant who has been convicted with
(before adjusting for refunds) for the FY imprisonment for less than 2 years being
2022-23 stands at Rs. 8,36,225 crore previously non-compoundable, has now
compared to Rs. 6,42,287 crore in the been made compoundable. The
corresponding period of the preceding discretion available with the competent
Financial Year i.e. FY 2021-22, registering authority has also been suitably
a growth of 30% over collections of FY restricted.
2021-22. The time limit for acceptance of
The Gross collection of Rs. 8,36,225 crore compounding applications has been
includes Corporation Tax (CIT) at Rs. relaxed from the earlier limit of 24
4,36,020 crore and Personal Income Tax months to 36 months now, from the date
(PIT) including Securities Transaction of filing of complaint. Procedural
Tax(STT) at Rs. 3,98,440 crore. Minor complexities have also been
head wise collection comprises Advance reduced/simplified.
Tax of Rs. 2,95,308 crore; Tax Deducted at Specific upper limits have been
Source of Rs. 4,34,740 crore; Self- introduced for the compounding fee
Assessment Tax of Rs. 77,164 crore; covering defaults across several
Regular Assessment Tax of Rs. 20,080 provisions of the Act. Additional
crore; and Tax under other minor heads compounding charges in the nature of
of Rs. 8,933 crore. penal interest @ 2% per month up to 3
The cumulative Advance Tax collections months and 3% per month beyond 3
for the first and second quarter of the months have been reduced to 1% and 2%
FY 2022-23 stand at Rs. 2,95,308 crore respectively.
as on 17.09.2022, against Advance Tax
collections of Rs. 2,52,077 crore for the h ps://pib.gov.in/PressReleasePage.aspx?PRID=1860175

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October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

GST Updates

Compiled by: CA. Parth Joshi

I. ₹ 1,43,612 Crore gross GST revenue Instructions:
collected in the month of August 2022:
· The gross GST revenue collected in the 1. The Central Board of Indirect Taxes and
Customs has issued guidelines for launching of
month of August 2022 is ₹1,43,612 crore of prosecution under the CGST Act, 2017.
which CGST is ₹ 24,710 crore, SGST is ₹ [Instruction No. 04/2022-23-GST-Inv dated
30,951 crore, IGST is ₹ 77,782 crore 01st September, 2022]
(including ₹ 42,067 crore collected on
import of goods) and cess is ₹ 10,168 crore § III. GST Portal Related Updates:
(including ₹ 1,018 crore collected on import 1. Module wise new functionalities
of goods). deployed on the GST Portal for taxpayers:
· Revenues for the month of August 2022, Various new functionalities are implemented on
28% higher than the GST revenues in the the GST Portal, from time to time, for GST
same month in 2021. stakeholders. These functionalities pertain to
· Monthly GST revenues more than the ₹ different modules such as Registration,
1.4 lakh crore for six months in a row. Read Returns, Advance Ruling, Payment, Refund and
more at - other miscellaneous topics. Various webinars
[https://pib.gov.in/PressReleaseIframeP are also conducted as well informational videos
age.aspx?PRID=1855967] prepared on these functionalities and posted on
GSTNs dedicated YouTube channel for the
§ II. Important Notifications / Circulars / benefit of the stakeholders.
Orders / Instructions: [https://www.gst.gov.in/newsandupdates/]
Circulars:

1. In accordance with the orders of Hon'ble 2. S u p r e m e C o u r t a l l o w s 4 w e e k s
Supreme Court dated 22.07.2022 & 02.09.2022 extension to open common portal for Tran 1 &
in the case of Union of India vs. Filco Trade Tran 2: Hon'ble Supreme Court while hearing an
Centre Pvt. Ltd., the facility for filing TRAN-1/ application from GSTN, has allowed extension
TRAN-2 or revising the earlier filed TRAN- of 4 weeks-time to comply with their order
1/TRAN-2 on the common portal by an dated 22/07/2022 issued in the matter of UOI &
aggrieved registered assessee will be made Anr. V/s Filco Trade Centre Pvt. Ltd. & Anr.
available by GSTN during the period from bearing SLP (C) nos. 32709-32710/2018.
01.10.2022 to 30.11.2022. Based on the same, Accordingly, GSTN would open the common
the CBIC has issued detailed guidelines for portal for filing transitional credit through
aggrieved registered assessee. [Circular No. TRAN-1 and TRAN-2 w.e.f. 01/10/2022.
180/12/2022-GST dated 9th September, 2022] [https://www.gst.gov.in/newsandupdates/]

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3. Changes in Table 4 of GSTR 3B - perhaps a SCN will be issued to petitioner. That
Reporting of ITC availment, reversal and being the position, continuation of provisional
Ineligible ITC: Government vide Notification attachment beyond prescribed period makes no
No. 14/2022 – Central Tax dated 05th July, 2022 sense. Accordingly, respondents are directed to
has notified few changes in Table 4 of Form lift provisional attachment within two days.
GSTR-3B for enabling taxpayers to correctly Insofar as challenge to order dated 28.09.2020
report information regarding ITC availed, ITC is concerned, it loses legal efficacy in view of
reversal and ineligible ITC in Table 4 of GSTR-3B. direction issued by court for lifting provisional
The Notified changes of Table 4 of GSTR-3B attachment.
have been incorporated in GSTR-3B and are
available on GST Portal since 01.09.2022. The Case: Neuron Steel Trading Pvt. Ltd. v. Union
taxpayers are advised to report their ITC of India – [2022] – Hon'ble Delhi HC – Civil
availment, reversal of ITC and ineligible ITC Appeal No. 1392 of 2021
correctly as per new format of Table 4 of GSTR- 3. Process of hearing of the petitioner
3B at GST Portal for the GSTR-3B to be filed for and consideration the case of the petitioner
the period August 2022 onwards. and documents produced by the petitioner is
[https://www.gst.gov.in/newsandupdates/] underway before the authorities; Counsel for
revenue submits that appropriate decision
§ IV. Important Judicial shall be taken on or before 30th September,
Pronouncements: 2022:
1. The time for opening the GST Common Issue/Facts: Grievance in this petition is with
Portal is extended for a further period of four regard to the action on part of the authorities in
weeks i.e., from 01.09.2022: blocking the benefit of Input Tax Credit to the
Issue/Facts: The issue is relating to extension tune of Rs. 44,74,080/- in the electronic credit
of time for opening the GST Common Portal for ledger of the petitioner. It was contended that it
filing TRAN-1/ TRAN-2 or revising the earlier was without giving opportunity of hearing to
filed TRAN-1/TRAN-2. the petitioner and that it was a negative
blocking in the nature of futuristic action.
Held: The time for opening the GST Common Petitioner further submitted that while the
Portal is extended for a further period of four Input Tax Credit of Rs. 43,71,672/- has been
weeks from today. It is clarified that all unblocked, the remainder Rs. 1,02,468/-
questions of law decided by the respective High remains still blocked for no good reasons; that
Courts concerning Section 140 of the Central while not lifting the blocking of the Input Tax
Goods and Service Tax Act, 2017 read with the Credit on the part-amount, no reasons are
corresponding Rule/Notification or direction indicated nor any opportunity of hearing was
are kept open. afforded to the petitioner.

Case: Union of India v. Filco Trade Centre Pvt. Held: It appears that respondent No. 2 has
Ltd. – [2022] – Hon'ble SC – Miscellaneous issued communication dated 24.8.2022
Application Nos.1545-1546/2022 in SLP(C) whereby the earlier stand is reiterated,
No. 32709-32710/2018 however, the respondents have expressed
2. Provisional attachment should be inclination to consider the documents
lifted as more than two years have passed submitted by the petitioner in support of the
since it was ordered; period of one year is genuineness of its purchases and duty paid. The
provided in Section 83 of the Act: process of hearing of the petitioner and
Issue/Facts: The issue arises is whether consideration the case of the petitioner and
provisional attachment should be lifted. The documents produced by the petitioner, is
other issue concerns legal efficacy of order underway before the authorities. Counsel for
dated 28.09.2020. revenue submits that appropriate decision shall
be taken on or before 30th September, 2022.
Held: More than two years have passed since
the provisional attachment was ordered of Case: Pancham Plasto Chem v. State of
subject bank account. Period of one year Gujarat – [2022] – Hon'ble Gujarat HC –
provided in Section 83 of the Act stands crossed. R/Special Civil Application No. 11282 of 2022
Provisional attachment order cannot survive.
Investigations are about to conclude and

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GST Quick Connect

Compiled by: CA. MONISH S SHAH

Important AAR /AAAR/HC JUDGMENTS/ SC JUDGMENTS

1. Karnataka HC - M/s RAJEEV TRADERS under Section 130 would not be available.

Vs UNION OF INDIA the statutory framework does not permit

confiscation proceedings merely because it

BOTH Section 129 & 130 of GST Act are is found by the proper officer that applicable

independent: Goods & Conveyance bound to tax has not been paid on the goods and he

be released if 100% Tax and Penalty is exercises his power to detain the goods and

deposited as per 129 .ST - Challenge to order conveyances. If the owner of the goods or a

of confiscation under Section 130 of the person other than the owner comes forward

CGST Act – Scope of power to confiscate the to abide by the stipulations contained in

goods under Section 130 - Since the E-Way Section 129, Proper Officer is bound to

bill had not been tendered for the goods in release the goods and the conveyances.

movement, physical verification and Thus, the positive obligation to release the

inspection of the goods in movement was detained goods cannot be overridden by

conducted in the presence of the person in permitting the proper officer to invoke

charge of the goods vehicle – upon confiscatory proceedings under Section 130

inspection the goods were found to of the Act. Procedure adopted by the proper

difference in the quantity from mentioned in officer, in this case, to embark on

the invoice - the Proper Officer proceeded to confiscation proceedings after invoking his

pass an order of confiscation under Section power under Section 129 to detain and seize

130 of the CGST Act - Whether the Proper the goods is contrary to the statutory

officer, while detaining the goods which are scheme. Entire procedure adopted by the

in transit in the exercise of powers under proper officer from converting the

Section 129 of the CGST Act, possess the detention proceedings into a confiscatory

power to initiate proceedings to confiscate proceeding, ultimately leading to the order

under Section 130 of the Act and thereafter of confiscation is wholly illegal and contrary

conduct an enquiry and proceed to order to the statutory scheme of the Act. The

confiscation of the goods – HELD - the Appellate Authority has mechanically

proper officer does not possess the power accepted the reasoning of the order of the

to refuse the release of the detained goods proper officer without examining the

and conveyances, if the applicable tax and statutory scheme of the Act. The impugned

penalty of 100% of the tax is paid by the orders cannot be sustained and quashed,

owner or if 50% of the value of the goods Petition is answered in favour of assesse

reduced by the applicable tax, is paid by a

person other than the owner or if security The power to detain under Section 129

equivalent to the aforesaid sums are cannot be converted to a proceeding under

furnished. Section 130 of the Act since both these

This indicates that the true intent to detain provisions operate independently of each

the goods or the conveyances is to other and in completely different contexts.

ultimately facilitate the recovery of the The power to detain is only to stop the

applicable tax and if the same is paid along transit of the goods and thereby prevent its

with the penalty, the goods and conveyances movement till the tax and penalty is paid.

are bound to be released. The power to However, the power to confiscate is the

confiscate is a distinct and independent process of divesting the owner of the goods

power conferred under the Act which can be of all title to the goods for a contravention of

exercised only in cases where the power to the provisions of the Act and Rules. The

detain and seize has not been invoked. Once intent behind conferring power to detain the

the power to inspect, seize or detain the goods under Section 129 is fundamentally to

goods and conveyances is invoked either ensure that the applicable tax and penalty is

under Section 67 of the Act or under Section recovered whereas the intent behind

129 of the Act, the power to confiscate confiscation under Section 130 is to divest

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October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

the owner of the goods itself and also impose Another question raised was whether the
liability of payment of the applicable tax and ITC of GST paid on the Canteen Service
penalty. Providers food bill would be available, given
that providing the canteen facility is
2. GST Not Leviable on Employee's Portion mandatory under Section 46 of the Factories
of Canteen Charges : AAR ( M/s. Troikaa Act, 1948.
Pharmaceuticals Limited )

The Gujarat Authority of Advance Ruling The AAR held that recovery of the amount
(AAR) has ruled that the GST is not leviable from contractual workers on account of
on the employee's portion of canteen third party canteen services provided by the
charges applicant would come under the definition
“outward supply “ as defined in Section 2
The two member bench Amit Kumar Mishra (83) of the CGST Act, 2017 and therefore be
and Atul Mehta has observed that GST is liable to tax as a supply under GST.
leviable on the amount representing the
contractual worker portion of canteen The AAR observed that the ITC of the GST
charges, which is collected and paid to the paid on canteen charges is available to the
canteen service provider. applicant on the food supplied to the
employees of the applicant company. As
The applicant provides canteen facilities to such, under Section 46 of the Factories Act, it
its employees and workers as per the is mandatory to provide canteen facility to
Factories Act, 1948.Section 46 stipulates the employees.
that any factory employing more than 250
workers is required to provide a canteen 3. The AAR, Karnataka in the matter of
facility to its employees. As a result, the M/s KNK Karts (P) Ltd [Advance Ruling No.
company makes arrangements to provide KAR ADRG 20/2022 dated August 12,
food (lunch and dinner) for the employees 2022] has held that the amusement park
and workers at the plant and godown ride karts (“the Product”) cannot be
location. classified as Motor Vehicle and will attract
GST @ 18% under HSN 9503 of the
The applicant made arrangements for food Customs Tariff Act, 1975 (“the Customs
(lunch and dinner) through an outside party, Tariff Act”).
who prepares the food supplies it to the Facts:
company's employees and contractual M/s KNK Karts (“the Applicant”) has
workers. The Food supplier raises an invoice manufactured amusement park ride karts
for the food bill as per the agreed billing (“the Product”) and supply them for joy
frequency by charging 5% GST. riding both for children and adults. The
Product was neither roadworthy nor meant
The applicant provides the canteen facility for transportation or carrying of passengers.
at a subsidised rate of 50% to its employees The Automotive Research Association of
and contractual workers. The food supplier India, an authority established to certify that
raises the invoices amount to the company the Product is not permitted on public roads
against food supplied to the employees. The and are not fit for certification and hence
company bears 50% of the food amount and cannot be registered with the Regional
recovers the balance 50% of the food Transport Authority (“the RTO”) as Motor
amount from the employee's salary pay out. vehicle. The Applicant were of the
impression that the Product are classified
The applicant has sought an advance ruling under HSN 9503 of the Customs Tariff Act
on the issue of whether GST shall be whereas the Central Excise Department
applicable on the amount recovered by the insisted them to classify the Product under
company from employees or contractual HSN 8703 of the Customs Tariff Act and pay
workers when the provision of third-party GST at the rate of 28% in terms of
canteen services is obligatory under Section Notification No.1/2017-Central Tax -Rate
46 of the Factories Act, 1948. dated June 28, 2017.

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Applicant's Contention: The expression 'motor car' or 'motor vehicle'
The Product manufactured and supplied by used in the HSN are defined under Section 2
them comprise of scale model karts and are (26) and (28) of the Motor Vehicle Act. The
supplied with an engine, transmission and Product supplied by the Applicant neither
tyres. In some cases, the same are supplied qualify as motor car nor motor vehicle as
as a 'rolling chassis' comprising of a chassis they are not road worthy and are also not
frame with no engine, transmission or tyres. designed for transport of persons and are
The legislature has amended the First meant only for amusement or
Schedule to the Customs Tariff Act with entertainment for use on a fixed or
effect from January 01, 2022 based on restricted course. Hence, they are not
realignment of the Explanatory Notes to classifiable under HSN 8703.
HSN. The amended HSN 9503 of the First The First schedule to the Customs Tariff Act
Schedule to the Customs Tariff Act has been amended with effect from January
specifically covers 'Amusement Park Ride 01, 2022 and the amended HSN 9508 covers
Karts' commonly known as 'Go-karts'. “travelling circuses and travelling
As per the Motor Vehicles Act 1988 (“the menageries; amusement park rides and
Motor Vehicle Act”) children below the age water park amusements” and further the
of 18 years are not permitted to ride or drive meaning of amusement park rides is given in
motor vehicles and require driving license to the notes of the HSN.
drive the vehicle. In case of violations, the The Product supplied by the Applicant are
vehicles will be seized and the person driving designed and shaped to run only on
the vehicle will be fined and also imprisoned extremely smooth specially designed
for the contraventions of the statute. surfaced tracks and are primarily used across
However, no such restrictions are imposed the globe as an amusement ride. Therefore,
under any of the statute to use the said the same may be considered as amusement
Product by children below the age of 18 park rides as per the meaning assigned to
years. amusement park rides.
Issues: The Product supplied by the Applicant
Whether the Product supplied by the attracts GST at the rate of 18% as per
Applicant meant solely for the purpose of Notification No.1/ 2017-Central Tax (Rate)
joy riding and are designed and shaped to dated June 28, 2017 as amended by
suit to run or drive only on extremely smooth Notification No.18/ 2021-Central Tax (Rate)
surfaced tracks, are classifiable under HSN dated December 28, 2021.
9508 of the First Schedule to the Customs
Tariff Act? Ø Important changes in GSTR 3B to hit on
Whether the Product supplied by the portal from 01-09-2022
Applicant which are not roadworthy and
cannot be registered as Motor Vehicles with a) ITC in GSTR 2B for a tax period not
the RTO are classifiable as 'Motor Vehicles claimable due to receipt of goods in next
meant for carrying of passengers under HSN period or goods not received at all or
8703 of the First Schedule to the Customs because supplier has failed to pay tax:
Tariff Act?
Whether the Product supplied by the I. To be claimed first in Table 4A (5) of
Applicant attracts GST at the rate of 18% GSTR 3B
under Notification No.1/2017-Central Tax
Rate dated June 28, 2017 as amended by II. To be reversed in Table 4B (2) of GSTR
Notification No.18/ 2021-Central Tax Rate 3B
dated December 28, 2021?
Whether the Product supplied by the III. To be claimed again in Table 4A (5) in
Applicant are covered under HSN 8703 or tax period in which goods are received or tax
HSN 9503 of the Customs Tariff Act? period in which supplier makes payment of
Held: tax
The AAR, Karnataka in Advance Ruling No.
KAR ADRG 20/2022 dated August 12, 2022 IV. To be shown in Table 4D (1) in the tax
has held as under: period in which ITC is re-claimed.

b) Reversal of ITC wrongly availed in previous
tax periods because of inadvertent mistake
may be done in 4B(2)

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c) Ineligible ITC u/s 17(5) to be first claimed in j) Reversal of ITC on inputs and capital goods
4A(5) and then reversed in 4B(1). Ineligible held in stock on the date of cancellation of
ITC u/s 17(5) shall no longer be reflected in registration may also be effected through
table 4D as was being done in old format of 4B (2).
GSTR 3B.
k) Supplies of restaurants, hotels, motorcabs
d) ITC ineligible due to place of supply etc., housekeeping through e commerce
restrictions or because of limitation period operator to be shown in table 3.1.1(ii) of
of claim of itc u/s 16(4) is shown in table 4 of GSTR 3B. Earlier Point 11 of Circular
GSTR 3B to be also shown in Table 4D(2) of 167/23/2021 dated 17-12-2021 had required
GSTR 3B. This information shall not be to reflect such supplies in table 3.1 (c) of
entered in Table 4A or 4B of GSTR 3B. GSTR 3B for the time being So, treatment as
per Circular 167 was only adhoc treatment.
e) Reversal of ITC by banking company's u/s
17(4) read with R.38: First full amount of ITC Note:
shall be shown in Table 4A and then reversal 1. 3.1(c) of GSTR 3B is for nil rated,
shall be made in Table 4B (1). exempted supply. Now corresponding to
that entry, supplies could be shown in Table
f) ITC reversed under Rule 42 and 43 because 8 of GSTR-1 by restaurants etc. But after
of partial exempt supplies, if reversed by changes in GSTR 3B, these supplies should
making entry in 4B(1) in excess may require not be shown in GSTR-1 (in opinion of
reclaim in Table 4A(5) because of Rule 42, author) because there is no corresponding
however no row has been kept in table 4D for change in GSTR-1 and thus if still such
reclamation of such ITC. Advisory issued by supplies are shown in table 8 of GSTR-1,
GSTN says that ITC reversed in 4B(1) is not there shall be mismatch in supplies.
reclaimable, however Rule 42 perceives the Treatment of such supplies in GSTR- 9 also
restoration of excess reversal. has not been laid down. This non
synchronisation shall result is mismatch of
g) Similarly if ITC blocked in 17(5) and respective statements with Profit and loss as
reversed in 4B(1) is subsequently found to per financial accounts.
be eligible, though may be reclaimed in 4A(5)
but there is no row in 4D to reflect such 2. Concept of non-reclaimable ITC to be
reclaim. Advisory of GSTN says that ITC parked in 4B (1) and reclaimable ITC to be
reversed in 4B (1) is not reclaimable. parked in 4B (2) laid down by GSTN advisory
is not only in contradiction with law but also
h) Reclaimable reversals for failure to pay contradicted in the advisory itself.
suppliers within 180 days may be parked in Generalization has been made without
4B (2). Reclamation at the time of payment resort to legal provisions.
through 4A (5) shall be supplemented by The above changes are available on portal
disclosure in 4D (1). since 01-09-2022 and ITC to be reported as
per new format for the period August 2022
i)Lapse of ITC on opting for composition onwards.
scheme or when taxable goods become [Source: NN 14/2022 dated 5-7-22; Circular
exempt shall be parked in 4B(2). 170/02/2022-GST dated 6-07-22; GSTN
Advisory dated 02-09-2022]

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From the RBI

Complied by CA. Mayur Modha

In the month of September-2022 RBI-Monetary liquidity adjustment facility (LAF) by 50 basis
Policy Statement, 2022-23 Resolution of the points to 5.90 per cent with immediate effect.
Monetary Policy Committee (MPC) September Consequently, the standing deposit facility
28-30, 2022 (SDF) rate stands adjusted to 5.65 per cent and
the marginal standing facility (MSF) rate and the
On the basis of an assessment of the current and Bank Rate to 6.15 per cent.
evolving macroeconomic situation, the
Monetary Policy Committee (MPC) at its There are various Master directions, Master
meeting on September 30, 2022 decided to: circulars, notifications issued by RBI, Summary
and brief understanding of few of them is as
· Increase the policy repo rate under the under:

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Excel in Excel

Compiled by: CA. CS. Hemlata Dewnani

Excel Settings to be more
PRODUCTIVE

I) How To Stay In The Same Cell After Enter keys together instead of just Enter key,

Pressing The Enter Key In Excel and you can see the entered cell is still selected.

1. Click File > Options to go the Excel Options
dialog.

2. In the Excel Options dialog box, click
Advanced from the left pane, and in the right

Samplelist box, under the Editing options section,
II) Long Phrases Shortcuts
Click File > Options > Proofing >AutoCorrect
Options

uncheck After pressing Enter, move selection,

see screenshot:

3. And then click OK button, from now on, when 3. Such as You want to auto correct bcoz as
you enter the content into a cell and because so You will mention bcoz in replace
press Enter key, the input cell is still selected column and because in with column and then
but not move. click OK button in the above screen .From now
In Excel, you can also use shortcut keys to solve onwards, when you enter bcoz and press space
this task. in any excel sheet than it will be automatically
After entering the content, please press Ctrl + replace with because

4. It can be used as Auto correction or
abbrevations to be converted in full forms or as
proof reader also

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October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

Thoughts from the Book – Do Epic Shit

Compiled by: CA. CS. Hemlata Dewnani

We know ourselves through our Persistent efforts are a habit.
thoughts. But we know others
through their actions. Sit on as many chairs as you can before you find
the one chair on which you feel you belong.
Success and failure were merely output. What
you carry on your heart to reach that destination If you don't ask, the answer is always no.
is conclusive.
There is temporary discomfort in doing the
Don't set targets. Set habits! unconventional. There is permanent discomfort
in living life as a template.
Curiosity has created more opportunities than
hard work ever will. Build a team so strong that someone from the
outside doesn't know who the boss is
The key to having more opportunities in life is to Moving out doesn't mean quitting what you
give yourself enough opportunity to get have. It means giving yourself space to explore
curious. other things.

Targets are the enemy of habits. Time goes away and leaves us with only one of
The more we get the process right, the closer these two things regret or results.
we get to the target.
Our emotions & feelings are temporary; we
Set your life in such a manner that you can think of them as permanent.
measure this progress.
We have just one life but we don't need to be
Even a tiny important in your productivity will one person, be an entrepreneur, sell painting on
yield results over time. instar, we crave novelty.

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How to convert figures in Thousands, Lakhs
and millions (Ten lakhs) in Excel

Compiled by: CA Hitesh Alwani,

1. Select the cells or Entire Sheet you want #\.00, (Zero Point Zero Zero Coma)
to convert See in below screenshot

2. After selecting click Right click from C. For convert Rupees
mouse, “Millions/Ten Lakhs”

3. Then select “Format Cells”, · -Type as below
4. Then from “Number” column select · #,, (Hash Coma Coma)
· See in below screenshot
“Custom”
5. Your Cell value remain Same, but

“Display”, by converting to desired
value,
A. For convert Rupees “Thousand”
-Type as below
0.00, (Zero Point Zero Zero Coma)
See in below screenshot

B. For convert Rupees “Lakhs”
-Type as below
Source: Google, \ Purpose: Little effort to easiness of work,
Disclaimer: Prepared for tutorial purpose only.

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Event in Images

International Conclave on Forensic Accounting And Fraud Investigation On 2nd And 3rd September, 2022

Entrepreneurs Exhibition-national Women Conference At Ahmedabad On 03.09.2022
Workshop on Intellectual Property Rights 5th September 2022 to 10th September 2022-Virtual Mode

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October- 2022 AHMEDABAD BRANCH OF WIRC OF ICAI

VCM on 360 Degree on ESOP On 09.09.2022 Seminar On Foreign Exchange Management
(overseas Investment) Rules, 2022 On 10.09.2022

President CA. (Dr.) Debashis Mitra visit Ahmedabad Branch

Celebration of Teacher’s Day on 05.09.2022

Visit of Shri Gyanvatsal Swami at Ahmedabad Branch

Meeting with Principal Secretary, Meeting with Chairman RERA Gujarat
Education For Career Counselling
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Media Coverage

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Disclaimer: The opinion expressed in this E-Newsletter are those of the authors. They do not purport to reflect the opinions or views of the ICAI or its
members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever
on the part of the ICAI concerning the legal status of any country, area or territory or its authorities, or concening the delimitation of its frontiers.

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