I.T. MIRROR VOL 24-25 VOL 1

MOUTH PIECE OF THE INCOME TAX BAR ASSOCIATION ç±l¢{Ýæ „±ü{ÝÐí{¢Ý}¢ì Year 2024-25 | Volume : 1 | Month : JUN 2024

Managing Committee for the Activity Year 2024-25

Chairman's Message - CA (Dr.) Vishves Shah 2 President's Message - CA Shridhar Shah 3 Hon. Secretary's Message - CA Kenan Satyawadi 4 Mastering Section 271B How to Safeguard Against Audit Penalty - CA Dipak Dama Unlocking Tax Benefits- A Guide to Applying for Lower or NIL TDS Certificate for Non-Resident Indians - CA. Ajay R. Vaswani Tax Tit Bits - CA Parag Raval Can a Registered Person claim an Input Tax Credit of IGST whose Place of Supply is different from the Recipient’s State - Adv Aditya Sinhal Input Tax Credit (ITC) on Motor Vehicles under GST A Detailed Analysis - CA. Bhavik P. Chudasama Provisions Relating to Cancellation And Revocation Of Cancellation of Registration Under GST Law - Adv Zalak Sohil Dalal All about Gujarat RERA 2.0 - CA Harsh Mehta and Adv. (CS) Lokesh Shah MOUTH PIECE OF THE INCOME TAX BAR ASSOCIATION ç±l¢{Ýæ „±ü{ÝÐí{¢Ý}¢ì Year 2024-25 | Volume : 1 | Month : JUN 2024 Adv. Ashutosh Thakkar Adv. (Dr.) Dhruven Shah CA (Dr.) Vishves Shah Invitee Members Bhavesh Govani CA Fenil Shah Hiren Patel Narendra Karkar CA Parth Doshi CA Raghav Thakkar CA Shivam Bhavsar CA Suvrat Shah Committee Members Adv Dhiresh T Shah President Emeritus CA Shridhar Shah President CA Maulik B. Patel Vice President CA Kenan Satyawadi Hon. Secretary CA Pratik Kaneria Hon. Joint Secretary CA Jaykishan Pamnani Hon. Treasurer CA Ashish Tekwani Immediate Past President CA (Dr.) Vishves Shah Chairman CA Nisha Tekwani CA Suvrat Shah CA Harshil Sheth Co – Chairman CA Bhavin Soni CA Jaykishan Vidhwani CA Pratik Kaneria Members IT Mirror Committee Managing Committee Room No. 402, Nature View Building, Nr. Mrudul Tower, Ashram Road, Ahmedabad - 380009. Tel. No. : 079-48011947 I e-mail: [email protected] I www.incometaxbar.org INCOME TAX BAR ASSOCIATION Disclaimer : The opinions, views, statements, results published in this IT Mirror are of the respective authors / contributors and Income Tax Bar Association is neither responsible for the same nor does it necessarily concur with the authors / contributors. It is advised that before taking any professional / legal decision based on the Articles, a legal opinion of proper professional may be obtained. These are articles are for educational purposes only. While every effort has been made to ensure accuracy of information contained in this Journal, the Association is not responsible for any error that may have arisen. 5 10 12 18 26 28 41 1

2 Chairman’s Message CA (Dr.) VISHVES SHAH Chairman Dear Readers, It is with great enthusiasm that I present to you the first edition of IT Mirror for the year 2024-25. As the official mouthpiece of the Income Tax Bar Association, IT Mirror continues to serve as a torch bearer of knowledge and insight for taxation professionals across the nation. This edition is particularly special, as it marks the beginning of a new activity year, a time of renewed focus and fresh perspectives. Our articles in this volume span a wide range of crucial topics, including Income Tax, NRI Taxation, Cancellation of Registration in GST, Input Tax Credit on Motor Vehicles, Place of Supply in GST, and the latest developments in Gujarat RERA 2.0. Each article is crafted to provide you with the latest updates with analyses, and practical guidance to navigate the evolving taxation landscape. The importance of understanding and adhering to taxation laws cannot be overstated. Taxation is not just a professional concern for many of us; it is a cornerstone of our nation's economic health and governance. Sound taxation policies and practices ensure the fair distribution of resources, support infrastructure development, and contribute to the overall prosperity of our society. As we move forward into 2024-25, we do so with an eye on the upcoming budget. The recent elections have set the stage for potential shifts in our economic policies, and the forthcoming budget will be a critical indicator of the government's direction. It is anticipated to bring significant changes that could reshape the taxation landscape, impacting both individuals and businesses. Our association stands ready to analyse, interpret, and provide insights on these developments to keep our members well-informed and prepared. In order to maintain the high standards of IT Mirror and to continue offering relevant and authoritative content, we invite all members and readers to contribute articles. Your expertise and perspectives are invaluable to us. Whether it’s a detailed analysis, a case study, or a commentary on recent tax developments, your contributions help us create a richer, more diverse publication that benefits the entire community. IT Mirror's reach extends across the nation, connecting tax professionals from various regions and backgrounds. This wide-ranging impact underscores the collective effort required to stay at the forefront of taxation law. We encourage you to share your knowledge and experiences, fostering a culture of continuous learning and professional growth. Thank you for your continued support and engagement. Together, let us make this edition of IT Mirror a reflection of our commitment to excellence in the field of taxation. Warm regards, CA (Dr.) Vishves A. Shah Chairman, IT Mirror Committee Income Tax Bar Association

3 Dear Esteemed Readers, Welcome to the first edition of IT Mirror for the year 2024-25. It is with great pleasure that I introduce this issue, which marks the beginning of another year dedicated to knowledge sharing and comprehensive coverage of taxation and allied laws. As we start this journey, our goal remains the same: to provide our readers with the most current, relevant, and in-depth information in the field of taxation. In today's dynamic and complex world, staying informed is more crucial than ever. As Benjamin Franklin aptly stated, "An investment in knowledge pays the best interest." This quote resonates deeply with our mission. The ITMirror is committed to being a valuable resource for tax professionals, scholars, and students alike& helping to stay updated. This edition features a diverse range of articles meticulously curated to cover the broad spectrum of taxation. We try to cover changes and updates related to Direct Taxes, Indirect Taxes and Corporate and other allied laws so that we can aim to cover 360-degree aspects of a business. As we move forward, we remain committed to enhancing the quality and breadth of our content. We believe that by spreading knowledge, we empower our readers to navigate the intricacies of taxation with confidence and precision. Also, please join me to welcome our editorial team which is working in the backend with efficiency which delivers carefully curated ITMirror edition one after another. Under guidance of the Chairman CA(Dr.) Vishves Shah and hard-working team of Co-Chairmen CA Suvrat Shah, CA Nisha Tekwani & CA Harshil Sheth and members CABhavin Soni, CAJaykishan Vidhwani& CAPratik Kaneria, I am sure that IT Mirror will keep serving the fraternity with knowledge. Our editorial team is dedicated to maintaining the highest standards of scholarship and relevance, ensuring that ITMirror remains an indispensable resource in the field. Now the world runs in two parallels: Digital & Physical. Looking at the demand of members for physical copy of IT Mirror, and considering other aspects, I am happy to announce for the first time, a subscription plan for getting physical copies of IT Mirror. Readers can subscribe to get 12 volumes of IT Mirror in physical copy with a subscription of Rs. 1500 (for Ahmedabad) & Rs. 1800 (Rest of India outside Ahmedabad). You can buy the subscription and get more details on https://payment.incometaxbar.org/. Thank you for your continued support and engagement. We look forward to accompanying you on this journey of exploration and learning throughout the year. Warm regards, CAShridharShah President Income Tax Bar Association President’s Message CA SHRIDHAR SHAH President

4 Dear Readers, We are delighted to present the latest volume of IT Mirror, the first for the activity year, an esteemed publication of the Income Tax Bar Association. This issue continues our tradition of providing valuable insights and updates on various aspects of taxation, which are essential for professionals and stakeholders in the field. This edition features a diverse array of articles that cover a range of topics relevant to today's taxation landscape. Our experts have meticulously examined these updates to help you navigate the complexities of the Income Tax system with greater ease. We also have a special article on NRI Taxation. With the increasing number of nonresident Indians engaging in financial activities back home, understanding the nuances of NRI taxation is more crucial than ever. Another significant area covered in this volume is the Cancellation of Registration in GST. This piece addresses the procedural and legal aspects of GST registration cancellations, offering insights into how businesses can handle this process smoothly and in compliance with the law. Similarly, our discussion on Input Tax Credit (ITC) on Motor Vehicles is sharing insights in to a very specific provision in GST Act. The Place of Supply in GST is another critical topic we explore in this edition. Proper determination of the place of supply is fundamental to the correct application of GST rates. Our article simplifies this complex topic, helping readers to correctly ascertain the place of supply in various scenarios. Additionally, we are pleased to present an overview of Gujarat RERA 2.0. This comprehensive analysis covers the latest developments and improvements in the Gujarat Real Estate Regulatory Authority regulations, which aim to bring more transparency and efficiency to the real estate sector. I extend my heartfelt gratitude to all the contributors for their invaluable articles and insights. Your expertise enriches our publication and provides our readers with the knowledge they need to excel in their professions. I hope you find this volume of IT Mirror informative and useful. Together, let us continue to advance our understanding and application of taxation laws for the benefit of all. Warm regards, CA Kenan Satyawadi Hon. Secretary Income Tax Bar Association Hon. Secretary’s Message CA KENAN SATYAWADI Hon. Secretary

5 Unpacking Section 271B: A Introduction : - Section 271B of IT Act, 1961 which mandates that certain taxpayers whose turnover surpass specific thresholds must have their accounts audited by certified accountant. Requirement is designed to ensure transparency & compliance with tax laws, helping prevent tax fraud & maintain accurate financial records. Audit not only aids in tax assessment but also encourages disciplined financial management. Failure to meet these can lead to penalties intended to promote adherence and deter potential noncompliance. In this article, we will explore who is subject to these requirements, the penalties involved for non-compliance, and strategies to ensure adherence to Section 271B & its Real-world Applications: by Analyzing recent as well as old case Laws Who is Bound by Section 271B? Section 271B of the Income Tax Act, 1961, sets specific rules for who must have their financial accounts formally checked by a certified accountant. This includes: • Business Owners:- Any business whose total sales, turnover, or gross receipts exceed ₹ 1 crore in any previous year is required to get its accounts audited. This threshold was earlier set at ₹ 40 lakh but was revised to reduce the compliance burden on smaller businesses and align with current economic conditions. • Professionals:- Individuals engaged in a profession whose gross receipts exceed ₹ 50 lakhs in any previous year must also have their accounts audited. The threshold for professionals was similarly increased from 10 lakh to accommodate changes in the professional services market. • Businesses with Estimated Earnings :- If assessee runs business under rules like Sections 44AD, 44AE, 44AF, 44BB, and 44BBB, which estimate your earnings, and you claim that your actual profit are less than these estimates, then an audit is mandatory under Section 271B. Understanding the Stakes: Penalties for Breach U/s. 271B of IT Act, audits must be conducted by a chartered accountant to ensure that financial statements accurately reflect the business's fiscal situation and comply with tax laws. After the audit, assessee must submit detailed audit report using the prescribed forms (Form No. 3CA or 3CB) along with Form No. 3CD, typically by October 31st of the next financial year. Failure to meet these requirements may result in a penalty of 0.5% of total sales, turnover, or gross receipts, up to a maximum of ₹ 1,50,000, However, the penalty can be waived if the taxpayer provides a reasonable cause for such non-compliance. This provision ensures that businesses maintain a high standard of financial transparency and adhere strictly to tax laws, thus underscoring serious financial stakes involved in complying with this section. Mastering Section 271B: How to Safeguard Against Audit Penalty - CA DIPAK C. DAMA

Lest Navigate Safe Harbors: Exemptions to Penalties In the intricate landscape of tax compliance, understanding the safe harbors and exemptions to penalties u/s. 271B of IT Act is crucial for taxpayers. These legal provisions offer a amnesty in cases where non-compliance with audit requirements can be attributed to reasonable causes such as illustrated hereunder and taxpayers can effectively navigate potential penalties, ensuring they are well-prepared to present valid defences if necessary. This knowledge not only aids in maintaining financial integrity but also in reinforcing the importance of proactive compliance management. Example Cases A taxpayer's chief accountant suffers a serious illness during the audit period, delaying submission. A business in a flood-affected area is unable to complete their audit on time due to damaged records. Riots in the vicinity of the business premises prevent access to financial records for the audit. A company undergoing a change in management fails to complete an audit due to transitional chaos. A taxpayer receives incorrect advice on the deadline for audit report submission from an accountant. The government delays appointing an auditor, which in turn delays the taxpayer's compliance. A taxpayer misinterprets tax rules based on outdated information but acts in good faith. Description Exemption granted when key personnel or the taxpayer themselves are severely ill. Disruptions caused by events like earthquakes, floods, or hurricanes. Compliance is prevented by local or national instability, such as riots or strikes. Significant administrative changes within the company that delay compliance processes. Delays caused by late or incorrect advice from financial advisors or accountants. Delays caused by late actions from government bodies, such as late appointment of auditors. Non-compliance based on incorrect but good faith understanding of tax requirements. Exemption Reason Severe Illness Natural Disasters Civil Unrest Management Changes Advisory Delays Governmental Delays Good Faith Mistakes Real-world Applications: Analyzing Case Law Exploring real-world applications through the lens of case law provides invaluable insights into the practical implications of legal statutes like section 271B of the IT Act. Lets analyse case laws that enables taxpayers and legal professionals to understand how penalties are applied and what defenses have proven effective in different scenarios. Each case serves as narrative that outlines the taxpayer’s challenges, the judicial reasoning behind decisions & specific factors that influenced such outcomes. This examination not only improves our understanding of law but also equips stakeholders with the knowledge to better navigate audit requirements & potential penalties. I. T. MIRROR 6

Summary of Case Decision Given The appeal addresses the penalty imposed under Section 271B for failure to audit accounts, with a focus on procedural aspects and reasonable cause arguments. The case involves penalty impositions under Section 271B due to the assessee's failure to get books audited as required. The case discusses penalties under Section 271B, focusing on whether the assessee's failure to audit books due to an incorrect assumption of turnover qualifies for penalty. Appeal against penalty under Section 271B for not auditing accounts as per Section 44AB, considering health and unforeseen professional circumstances as a defense. Assessee appeals against penalties for non-compliance with auditing requirements under Section 271B, involving health issues and misunderstanding of tax provisions. Challenge to penalties imposed under Section 271B, where the assessee failed to submit audited reports on time due to miscommunication and health problems. The case revolves around the imposition of Section 271B penalties for failing to audit financial statements, with a focus on administrative challenges as a defense. Discussion on penalties under Section 271B for failing to conduct mandatory audits, with emphasis on procedural fairness and the impact of personal crisis. The Tribunal vacated the penalty under Section 271B, acknowledging reasonable cause for the failure to furnish the Tax Audit Report in time. The Tribunal allowed the appeal, citing that the penalty under Section 271B could not be imposed if books of account are not maintained. The Tribunal upheld the p e n a l t y , e m p h a s i z i n g compliance failure despite the submitted claims and discussions of past case law. Penalty was not justified; Tribunal accepted reasonable cause for delay in audit submission. Tribunal removed penalties, recognizing the valid health concerns and misunderstanding as reasonable cause. The Tribunal decided in favor of the assessee, canceling the penalties due to reasonable cause shown. Penalties were dismissed by the Tribunal recognizing administrative delays and reasonable cause. Tribunal vacated the penalty, citing reasonable excuses related to personal and unforeseen professional issues. Date of Issuance 07-Mar-24 17-Jan-24 23-Feb-24 07-Mar-24 13-March -24 05-Oct-23 16-Oct-23 16-Nov-23 Name of Case Sanjeev Kumar Goyal v. ITO, 2024 TaxPub(DT) 1129 (Del-Trib) Pradipbhai Dayabhai Aghara v. ITO, 2024 TaxPub(DT) 1061 (Rkt-Trib) Haresh Ghanshyamdas Makhija v. ITO, 2024 TaxPub(DT) 1441 (Mum-Trib) Sanjeev Kumar Goyal v. ITO ITA No. 3187/DEL/2023 Manish Mali v. ITO ITA No. 372/JODH/2019 Jai Kumar Gurbani v. DCIT IT(IT)A No. 06/JP/2023 Tapi Jwil JV v. ITO ITA No. 6722/DEL/2018, & ITA No. 4873/DEL/2019 Pratibha Bisht v. ITO ITA No. 2318/DEL/2023 I. T. MIRROR 7

8 I. T. MIRROR Other Referred case law list in above recent cases in which it was mentioned that without maintained accounts, there can't be an audit or related penalties. • Surajmal Parsuram Todi v. CIT (1996) 222 ITR 691 (Gauhati) : - • CIT v. Bisauli Tractors (2008) 299 ITR 219 (All.) : - • CIT, Bareilly v. Bisauli Tractors (2007) 165 Taxman 1 (All) • Nirmal Kumar Jain v. ITO (ITA No. 6696 & 6645/DEL/2014) : - • Varadagovind Parthasarthy Iyer (through legal heir Arvind Iyer) v. ITO (ITA No. 1716/MUM/2023): - Name of Case with Citation Summary of Case Decision Given Other Old Cases :- Penalty not justified; reasonable cause recognized. Audit report obtained before the due date but not submitted due to a mistaken belief by the assessee’s counsel. Parjanya Associates v. Asstt. CIT (2006) 100 TTJ (Ahd-Trib) 736 Penalty not imposed due to bona fide belief. Assessee believed his income was below taxable limit, therefore did not audit. ITO v. Narendra Kumar (2006) 103 TTJ (Jod-Trib) 591 No penalty leviable due to illness and reasonable cause. Business increased but a partner's illness prevented timely audit. Star Agencies v. ITO (2006) 10 (II) ITCL 407 (Coah-Trib) Penalty not sustained; management change a reasonable cause. Change in management led to delays in finalizing the tax audit report. Aleli & Co. (P) Ltd. v. Dy. CIT (2006) 7 SOT 639 (Mum-Trib) Penalty cancelled due to genuine and bona fide delays. Delay in audit due to partners’ lack of education and accountant issues. CIT v. Ashoka Dairy (2006) 7(I) ITCL 225 (P&H-HC) : (2005) 279 ITR 32 (P&H) Penalty not imposed due to bona fide misunderstanding. Misunderstanding over whether freight charges needed auditing. Anoop Kumar Beri v. Asstt. CIT (2006) 10 (II) ITCL 219 (Del-Trib) N o p e n a l t y d u e t o government-related delays. Audit delayed due to government's failure to appoint an auditor. CIT v. U.P. Co-operative Cane Union Federation Ltd. (2006) 7(I) ITCL 236 (All) : (2005) 147 Taxman 477 (All) Penalty not leviable; seizure by department a valid excuse. Records seized by the department, causing delays in audit. Asstt. CIT v. Kamlesh R. Agarwal (HUF) : (2006) 10 (II) ITCL 125 (Ahd-Trib) Penalty cancelled due to external uncontrollable factors. Business operations in areas affected by adverse weather and terrorism. ITO v. Road King Transport Service (2006) 10 (II) ITCL 410 (Asr-Trib) Penalty cancelled due to lack of knowledge, reasonable cause. First business year; unaware of audit requirements. Madan Lal Gupta, Prop. Shree Ganesh Engineering Works v. ITO (2005) 185 Taxation 119 (Del-Trib)

9 I. T. MIRROR Conclusion: Ensuring Alignment with Section 271B Penalties through Judicial Interpretations The case laws presented in this article offer compelling narrative on how taxpayers can navigate complexities of Section 271B of the Act, which mandates the auditing of accounts for certain taxpayers. These cases collectively underscore critical pathway from the initial issue of non-compliance to the ultimate resolution through judicial appeal. Issue Identification: Each case initiates with the core issue of non-compliance with Section 271B, where taxpayers face penalties for failing to have their accounts audited as prescribed. This is often triggered by an assessment notice from the Income Tax Department, which identifies discrepancies or the absence of mandatory audits. Challenge of Penalties: Taxpayers typically challenge these penalties by filing appeal against the same The appeals often argue on grounds such as reasonable cause as narrated in case laws for non-compliance, including illness, misinterpretation of financial thresholds, administrative oversights, or genuine misunderstandings of the law. Judicial Scrutiny: The ITAT’s scrutiny in these cases focuses on whether the reasons cited by taxpayers qualify as 'reasonable cause' under the Act, which can exempt them from penalties. The Tribunal examines the specifics of each case, such as the timing of audit reports, the health of the taxpayer or key personnel, and the clarity of legal obligations at the time of the supposed breach. Legal Precedents and Doctrines: Several cases refer to established precedents which argue that nonmaintenance of accounts can negate the requirement for audit, thus voiding the penalties under Section 271B. there are other decisions also which highlight that when books are maintained and discrepancies are found, not having them audited as per statutory deadlines without a valid reason does not shield a taxpayer from penalties. Resolution: The resolution in these cases often hinges on the interpretation of what constitutes a 'reasonable cause'. The ITAT has shown leniency in instances where the taxpayer could demonstrate unforeseen circumstances or administrative challenges that directly impacted their ability to comply with the auditing requirements. Implications for Compliance: These judgments serve as vital precedents for both taxpayers and practitioners, illustrating the importance of maintaining thorough and timely accounting records and being proactive in seeking audits. They also highlight the necessity of staying informed about changes in tax regulations to avoid inadvertent non-compliance. Through these cases and basic understanding of this section, a pathway emerges for navigating the audit requirements of Section 271B, offering both cautionary tales and benchmarks for lawful tax management. It emphasizes the judiciary’s role in interpreting tax laws with a balance of strictness and empathy, considering the factual matrix of each case. Disclaimer: This article is not served as professional advice.

10 This article emphasizes applying for Lower or NIL TDS Certificate for cases where NRIs sell their immovable property in India. Whenever a property is being purchased, at the time of purchase, the buyer must deduct TDS at the rate of 1% from the value of sale consideration and pay the balance to the seller if he happens to be a resident of India for transactions where the sale value exceeds Rs 50 Lacs or more under section 194IA. Online return cum challan is to be filed in form of 26QB for same. However, if the seller happens to be a non-resident of India (NRI), the tax to be deducted would be at a higher rate of 20%, irrespective of the value of sale consideration. So even if the value is below Rs 50 Lacs, TDS at a rate of 20% is applicable. The amount deducted is to be deposited to tax authorities through challan and the TDS return is to be filed for payment under section 195. The higher rate of 20% is prescribed considering the tax rate on the taxability of long-term capital arising out of the sale of immovable property and for a reason that the NRI community at large are non-taxpayers or non-filers of Income Tax returns in India. Since the TDS at the rate of 20% is to be deducted from the sale value of the transaction and not on the actual capital gain, the TDS amount is bound to happen to be more than the actual tax liability. In such a scenario, the assessee ends up paying more tax amount in form of TDS and later claims a refund by way of filing the income tax return. Genuine difficulty is caused to the assessee in such cases, specifically where there is no or negligible capital gain or in case of capital loss. The funds are blocked until the refund is processed back by the income tax department resulting in unnecessary withholding of capital. To eliminate such a situation of creating a burden on non-resident Indian assessees, the Income tax law provides an option to apply for a Lower Deduction Certificate to the concerned assessing officer (AO) under the provisions of section 197, allowing TDS to be deducted at a NIL rate in case of long-term capital loss or at a rate as commensurate to cover the effective tax liability of the taxpayer. Lower or NIL TDS certificates serve as a powerful tool for NRIs selling immovable property in India, allowing them to reduce or eliminate the TDS deduction on the sale proceeds. By obtaining these certificates, NRIs can retain a higher portion of the sale proceeds and minimize their tax liability. Application by an NRI for issuance of a lower deduction certificate under section 197 of the Income-tax Act, 1961, for no deduction of tax or deduction of tax at a lower rate has to be made in Form 13 online. In case there is more than one seller, the application has to be made separately for all sellers. Documents and Details to be submitted along with the application are as follows: 1) PAN card 2) Property purchase deed 3) Payment schedule/details of purchase for the source of funds Unlocking Tax Benefits: A Guide to Applying for Lower or NIL TDS Certificate for Non-Resident Indians (NRIs) - CA AJAY R. VASWANI

11 I. T. MIRROR 4) Agreement / Memorandum of understanding for the sale of property 5) Valuation certificate as per section 50C for income tax purpose 6) Computation of capital gain 7) Bank statement reflecting token amount received from the buyer 8) Proof of Non-Resident Indian (OCI card, Passport, Residency VISA, Employment Letter, Entry and Exit Stamps etc) 9) Proof of expenses being claimed if any 10) Copy of Income Tax Return, 26AS and Computation for last 3 years 11) TAN of the Buyer 12) Communication details 13) Supporting documents if claiming exemption under section 54 Once the application is filed successfully, the assessing officer will review the documents/information submitted and ask for further queries and documents before issuing the certificate/rejecting the application. Application can be filed in city having jurisdiction over the property or that of an assesse. On being satisfied that a lower deduction of TDS is justified, AO shall issue a certificate. On successful issuance of the lower deduction certificate, the TDS will be deducted as per the TDS Rate stated in the Certificate. Surcharge and Education Cess as applicable are to be added as per the rules. This certificate would be issued online, and the taxpayer can download it from the portal. The power of the assessing officer is to issue a minimum rate of lower TDS certificates at a rate of 3%, however, for a rate below that prior approval of CIT is needed to be taken by the AO, in most cases which are accorded. The usual time taken is 30 - 45 days to get the certificate from the assessing officer after the successful application is made. A lower deduction certificate is issued for a particular period, It holds its validity from the date of issuance till the end of the validity as mentioned in the certificate which is generally end of the relevant financial year or unless cancelled by the assessing officer before its expiry. Example to Consider the benefits of applying for a lower TDS certificate: PARTICULARS CLAIM REFUND APPLY LOWER TDS Sale Price 80 Lakhs 80 Lakhs Less: Indexed Cost of Acquisition 70 Lakhs 70 Lakhs Capital Gain 10 Lakhs 10 Lakhs Tax @ 22.88% 2.28 Lakhs 2.28 Lakhs (Tax @ 20% + Surcharge @ 10% + Education Cess @ 4%) TDS Deduction 18.30 Lakhs 2.28 Lakhs (Rate of 22.88%) Lower Rate of 2.85% (2.28 Lakhs / 80 Lakhs) Refund Claim 16.02 Lakhs NIL

12 A. Tax Recovery Officer cannot declare the sale by assessee to third party void: Madras HC :K. N. Subramaniam Vs PCIT (Madras High Court) Appeal Number : W.P.No.5336 of 2023 Facts: 1. The Income Tax Department, through the Tax Recovery Officer (TRO), attached the property for recovery of tax dues. The petitioner challenged the attachment, claiming ownership of the property through the sale deed. The TRO, however, declared the sale deed void, considering it was made during the pendency of tax proceedings. 2. The petitioner challenged the attachment, claiming ownership of the property through the sale deed. The TRO, however, declared the sale deed void, considering it was made during the pendency of tax proceedings. Hon. Madras HC held as below: 1. As per Rule 11(4) of the Income Tax Rules, the TRO, has to examine who is in possession of the property and in what capacity. He can only attach property in possession of the assessee in his own right, or in possession of a tenant or a third party on behalf of/for the benefit of the assessee. He cannot declare any transfer made by the assessee in favour of a third party as void. 2. If the Department finds that a property of the assessee is transferred by him to a third party with the intention to defraud the Revenue, it will have to file a suit under Rule 11(6) to have the transfer declared void under Section 281. B. Expenses wholly incurred for transfer is allowable as a deduction while computing capital gains:Adil Rehman, Hyderabad (ITA No. 15/Hyd/2024) Facts: 1. While computing capital gains in respect of the immoveable property sold during the financial year 2013- 14, the assessee claimed the transfer expenses at Rs. 2,81,425/- which included expenses towards obtaining special power of attorney from India Consulate in USA, air tickets, hotel accommodation receipts, postal charges receipts, conveyance charges, lawyer fees, photocopying expenses receipts, etc., which was specifically needed to execute the sale. 2. Learned Assessing Officer allowed transfer expenses to the tune of Rs. 46,000/- incurred in respect of brokerage, air tickets, hotel accommodation receipts, postal charges receipts, conveyance charges, lawyer fees, photocopying expenses and disallowed Rs. 2,35,425/- claimed by the assessee in respect of brokerage, air tickets, hotel accommodation receipts, postal charges receipts, conveyance charges, lawyer fees, photocopying expenses. 3. Assessee preferred objections before the learned DRP and submitted that all the expenses incurred by the assessee in connection with transfer are allowable expenditure and relied upon by the decision of the Hon'ble Bombay High Court in the case of CIT vs. Shakuntala Kantilal (1991) 190 ITR 56 (BOM). TAX TIT-BITS – CA PARAG RAVAL

13 I. T. MIRROR 4. Learned DRP, however, was of the opinion that such an expenditure was merely incidental to the sale transaction and cannot be allowed to be deduction since such an expenditure was not wholly and exclusively for the transfer of property. ITAT Hyderabad held as below: 1. The assessee is a non resident and for the purpose of effecting transfer of property, he has to travel to India and has incurred expenses for obtaining power of attorney from Indian consulate in USA, air tickets, accommodation receipts, postal charges receipts, conveyance charges, lawyer fees, photocopying expenses, without which, the transfer could not have taken place. 2. So the said expenses are covered by Sec 48(i) of the Income Tax and are allowable expenses. C. More on recent HRA fraud detected by the IT Authorities: 1. Recently a case came to light where income tax authorities found alleged rent receipts of around Rs 1 crore by an individual. Further probe revealed that the individual indeed did not receive the rent that was shown against his name. 2. The case prompted the income tax department to further investigate the matter and it turned out that there was rampant misuse of PANs by unscrupulous individuals to claim tax deductions from their employers. 3. So much so that officials have now come across cases where employees of certain companies have used the same PAN to claim tax deductions. 4. Tax officials have announced a crackdown on employees who have made fraudulent claims, with the aim of recovering owed taxes. It remains uncertain whether legal action will be pursued against these individuals. 5. This situation underscores another occurrence of PAN misuse. Complicating matters further is the current application of TDS only for monthly rents exceeding Rs. 50,000 or annual payments surpassing Rs. 6 lakh. 6. Consequently, many employees have exploited this loophole to evade taxes on rental income. 7. Are employers liable for this? Tax officials have emphasized that the responsibility rests solely on the employee, absolving the employer of any liability, even in cases where multiple individuals cite the same PAN for rent payments. 8. While employers are not required to conduct extensive investigations, they are expected to implement reasonable checks and balances when verifying proof of rent paid for HRA exemption. Some employers have established policies wherein employees found to have submitted false claims for HRA or LTA shall face termination from employment. D. Sum Received on Maturity of Keyman Insurance Policy Purchased by Employee From Employer is Exempt u/s 10(10D) | ITAT :Mihir Parikh vs. ACIT - [2024] 160 taxmann 141 (Delhi-Trib.) Facts: 1. A Keyman Insurance policy was taken by a proprietorship concern in which the assessee was a Keyman. Subsequently, the proprietorship concern was dissolved, and the assessee purchased the Keyman Insurance policy after paying a surrender value. 2. During the year under consideration, the assessee received maturity proceeds from such insurance policy. 3. While furnishing the return of income, the assessee claimed exemption of such maturity proceeds under section 10(10D) of the Income Tax Act.

14 I. T. MIRROR 4. During the assessment proceedings, the Assessing Officer (AO) contended that the maturity proceeds were received from the Keyman Insurance policy and denied exemption under section 10(10D). 5. On appeal, CIT(A) confirmed the additions made by AO. Aggrieved by the order, the assessee filed an appeal before the Delhi Tribunal. ITAT Delhi held as below: 1. There was merit in the assessee's contention that if the policy was transferred before its maturity, it would lose its character. There was no prohibition on the assignment or conversion under the Income-tax Act. 2. Once there is an assignment, it leads to conversion, and the character of the policy changes. The insurance company has also clarified that on assignment, the policy does not remain a keyman policy but is converted into an ordinary one. 3. In these circumstances, it is not open to the AO to still allege that the policy in question is a keyman policy, and when it matures, the advantage drawn from it is taxable. 4. One has to keep in mind that at maturity, it is not the company but the individual who is getting the matured value of the insurance. 5. Accordingly, the AO was directed to delete the additions. E. Payments made under distribution agreements by ESPN India is not taxable in India: Delhi HC CIT – International Taxation Vs. ESPN Star Sports Mauritius S.N.C ET Compagnie (Delhi High Court); ITA 333/2023 Facts: 1. Taxpayer, a Mauritius based company entered into two distribution agreements with ESPN Star Sports and ESPN Software India Private Limited [“ESPN India”] (collectively, with ESPN Start Sports referred to as “Indian Distributors”), for the distribution of Star Sports and ESPN channels in India. 2. The agreements between Taxpayer and the Indian Distributor was such that: Indian Distributors stood conferred with an independent right to enter into contracts with cable operators for channel distribution and the Taxpayer was not privy to those agreements The Indian Distributors bear associated distribution costs and expenses. The agreements unequivocally establish that the Taxpayer is in no manner connected with the contracts executed by the Indian Distributors with cable operators and other intermediaries. Even the right to initiate legal action by the latter is available to be exercised only against the Indian Distributors. 3. The AO however held that the Taxpayer had a fixed place PE in India and consequently assessed 70% of the gross distribution revenue as business income of the Taxpayer in India. Hon Delhi HC held as below: 1. The transaction is on a principal to principal basis between the Taxpayer and the Indian Distributors and is limited only to conferring the right of distribution of sport channels in India through the cable operators. No privity of contract between the Taxpayer and the end customers/cable operators.

15 I. T. MIRROR 2. The agreements unequivocally establish that the Taxpayer is in no manner connected with the contracts executed by the Indian Distributors with cable operators and other intermediaries. 3. The taxpayer does not a fixed PE in India in terms of Article 5(2) of India- Mauritius DTAA. 4. Taxpayer does not have a Dependent Agent PE in accordance with Article 5(4) of India-Mauritius DTAA 5. Since there is no PE in the present case, the issue of profit attribution would clearly not arise F. What is Form 10IE and Form 10IEA: 1. Form 10IE is a form which is required to be filed when an assessee wants to shift from old tax regime to new tax regime. 2. In last year's budget, the new tax regime was made the default regime, due to which the taxpayers automatically moved to the new tax regime, that is, for opting of the old tax regime, they will have to choose it separately through form 10IEA. 3. Both the forms should be filed before the last date of filing of the income tax return. 4. Both these forms have to be filed by professionals and business owners. G. ITAT: TDS is Not Deductible U/S 195 for Expenses Related to Support Services Paid to a Foreign Company NTL Lemnis India Pvt Ltd. Vs. The ACIT, Circle 18(2), New Delhi (ITA No. 6006/Del/2019) Facts: 1. The taxpayer is in the business of import/export, trading, manufacturing, commission agency, consulting, and advising in any way dealing with lighting products and lighting solutions in the fields of home lighting, public lighting, greenhouse lighting, and solar lighting. The company is also involved in research and development in the area of lighting products and solutions. 2. The taxpayer availed management and sales and marketing support services amounting to Rs. 9,85,54,700/ – and Rs. 1,08,57,200/- from NTL Lemnis Holding BV. The AO ruled that the type of services considered under the Agreement was that of advisory and consultancy services which shall be counted under the meaning of 'fee for technical services' (“FTS”) both under the Income Tax Act 1961 along with the treaty. 3. Directing to the provisions of section 9(1) and the Explanation to section 9 of the Income Tax Act, AO ruled that FTS is liable to be paid via a resident and shall become an income of the nonresident payee supposed to accrue or emerge in India and shall be levied to tax under the provisions of the Income Tax Act. ITAT Delhi held as below: 1. The amount obtained via NTL Lemnis Holding BV for management and sales marketing support services is non-taxable because of the beneficial provisions of the India-Netherland tax treaty read with the MFN clause and the India-Netherland treaty. Also the make available clause in the DTAA is not satisfied. H. Impact of Supreme Court Judgement on Political Contributions: 1. The Supreme Court had delivered a seminal judgement in the case of Association for Democratic Reforms &Anr v/s Union of India &Ors. declaring Section 182(3) of the Companies Act (as amended by Section 154 of the Finance Act 2017) violative of Article 19(1)(a) and unconstitutional. 2. The Court also declared the deletion of the proviso to Section 182(1) of the Companies Act that permits unlimited corporate contributions to political parties is arbitrary and violative of Article 14. Further, the

16 I. T. MIRROR Court has declared the Electoral Bond Scheme, the proviso to Section 29C(1) of the Representation of the People Act 1951 (as amended by Section 137 of Finance Act 2017) and Section 13A(b) (as amended by Section 11 of Finance Act 2017) as violative of Article 19(1)(a) and unconstitutional. 3. Now, the amendment made under Section 182 in 2017 is void or as if it was not made at all. Therefore, the original provisions of Section 182 (i.e. prior to the amendment made by the Finance Act, 2017) are restored. Considering the amendment made to Section 182 of the Companies Act, 2013 vide Finance Act, 2017 have been declared unconstitutional, now a Company needs to ensure the following :- Contribution to a Political Party (either directly or through an Electoral Trust) in any financial year should not exceed 7.5% of the average net profits during the 3 immediately preceding Financial years. Details of name of the Political Parties and the amounts contributed to such political parties have to be disclosed in the Profit and Loss account. Note: 1. Proviso to Sec 182(1) before 2017 amendment, restricted the contributions to political parties to 7.5% of the average net profits of the last three preceding financial years. 2. Under Section 182(3) as it existed before the amendment, if a Company contributed funds to a political party, the company was required to disclose in its Profit and Loss account, the details of the specific contributions made to that political party. However, after the 2017 amendment, the Company is only required to disclose the contribution to a political party without disclosing the details of the political party to which the contribution was made. 3. Section 29C of the Representation of the People Act exempts political parties from disclosing information of contributions received through Electoral Bonds. I. Exemption U/S 54 cannot be denied merely due to mistake by the developer: ITAT Mukesh Harilal Mehta Vs ITO 16(3)(1) (ITAT Mumbai) Appeal Number : ITA No. 2256/MUM/2023 Facts: 1. During the course of assessment proceedings, the Appellant was asked to provide the details of purchase/sale of property, and exemption claimed u/s. 54 of the Income Tax Act. 2. Appellant responded it received sale consideration of INR 14,40,00,000/- as his share from sale of property. The sale transaction resulted in capital gains income of INR 11,27,41,786/. However, since the Appellant had paid INR 12,00,00,000/- towards purchase of a residential flat, being payment towards the cost of purchase including, stamp duty, pre-possession charge, service tax etc., the Appellant was entitled to claim deduction u/s. 54 of the Act in respect of the same. 3. However, AO rejected the submission and brought to tax capital gains income of INR 11,27,41,786/-. AO noted that there was no registered sale deed evidencing purchase of new flat/asset. Further, the details of new flat/asset purchased mentioned in the possession letter were different from the flat/asset towards the purchase of which the payment of INR 12,00,00,000/- was said to have been made by the Appellant. ITAT Mumbai held as under: 1. The denial of exemption under section 54 of the Income Tax Act is unjustified as appellant cannot be penalized for the mistake committed by the developer/seller in allocating the flat.

17 I. T. MIRROR 2. Appellant cannot be penalized for the mistake committed by the developer/seller by allotting Flat No. B-702 to the Appellant and thereafter selling the same Flat to Mr. C.N. Jha. Clearly, the developer/seller had accepted the aforesaid mistake and accommodated the Appellant by allotting a similarly placed flat (i.e. Flat No. B-902) in the same building. 3. Appellant is entitled to claim deduction under Section 54 of the Act in respect of payment of INR 12,00,00,000/- as claimed by the Appellant. Accordingly, the addition of INR 11,27,41,786/- made by the Assessing Officer, which was confirmed by the CIT(A), is set aside. J. Taxation of unexplained income or investment: 1. Section 68 of Income Tax Act Cash Credits : Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income- tax as the income of the assessee of that previous year. 2. Section 69 – Un Explained Investments : Where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year. 3. Section69 A – Un Explained Money etc. : Where in any financial year the assessee is found to be the owner of any money, bullion, jewelry or other valuable article and such money, bullion, jewelry or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewelry or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewelry or other valuable article may be deemed to be the income of the assessee for such financial year. 4. Section115 BBE – Rates of Tax : Those incomes referred in sections 68, 69, 69 A, 69 B, 69 C and 69 D shall be taxed at the rate specified under section 115 BBE inserted via Finance Act 2012. After amendment w.e.f. 1st of April 2017, it is expressly provided that no set of any losses shall be allowed in respect of these incomes and also to increase the rate of tax to 60% (prior to which it was 30%). 5. This means that such income, though already offered to tax by the taxpayer, would be taxable at flat rate of 60 per cent on gross basis (i.e., without any deduction / allowance), (plus surcharge @ 25% on such tax and cess, as applicable). Thus, effectively the rate comes to 77.25 per cent if such income is reflected in the return of income furnished u/s. 139. 6. Section 115BBE of the Act is only a machinery provision to levy tax on income and it should not enlarge the ambit of before mentioned sections of the Act to create a deeming fiction to tax any sum already credited/offered to tax as income. 7. Burden of proof: The Supreme Court in the cases of Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT [1963] 50 ITR 1 (SC) has held that the law is well-settled that the onus of proving the source of a sum of money found to have been received by an assessee is on him. Where the nature and source of a receipt, whether it be of money or other property, cannot be satisfactorily explained by the assessee, it is open to the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that the income is from any particular source.

There has always been a nebulousness about the availability of the Input tax credit [ITC] of IGST whose Place of supply [POS] is lying in a state different from the recipient's state of registration. Let's fathom what the statute and the prescribed rules,tell about the concerned topic. LEGISLATIVE FRAMEWORK For the availability of ITC of IGST, we need to refer: Section 20 of the IGST Act which speaks about the, 'Application of provisions of Central Goods and Services Tax Act':Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,–– (iv) input tax credit; shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act: Hence, to learn about the availability of IGST now we have to refer to section 16 of the CGST Act – 'Eligibility and conditions for taking input tax credit.' (i)Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. Note: - Assuming for the time being, that all other clauses of section 16 have been duly complied with, and that the concerned ITC is not blocked under section 17 The primary condition to avail of the ITC of IGST is that the person shall be “registered” and the credit should fall under the definition of “input tax” Now let's refer to the definitions given under the CGST Act: REGISTERED PERSON: Section 2(94)“registered person” means a person who is registered under section 25 but does not include a person having a Unique Identity Number. Now to ascertain who is a “registered person” under the CGST Act we need to check section 25. Section 25. Procedure for registration.-(1)Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed Can a Registered Person claim an Input Tax Credit of IGST whose Place of Supply is different from the Recipient's State? – ADV ADITYA SINHAL 18

I. T. MIRROR Let's refer to Sections 22 & 24: Section 22. Persons liable for registration.(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupees Section 24. Compulsory registration in certain cases.Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,– Hence a person needs to be registered in a state from where he “makes a taxable supply”i.e. where the person has a Fixed Establishment or Place of business. Once the person takes registration in a state from where he makes a taxable supply, the person qualifies as a“Registered Person”. INPUT TAX CREDIT: Section 2(62) “input tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes-………. Definition of Integrated tax under IGST ACT: Section 2(12) “integrated tax” means the integrated goods and services tax levied under this Act. There is a single IGST Act [unlike state-specific SGST Acts] which governs all the IGST-related provisions and once the person gets registered under the CGST Act [as there is no separate registration required under the IGST Act as per Section 20(5) of IGST Act],he becomes eligible to avail of the Input tax credit of IGST. *CBIC CIRCULAR No. 184/16/2022-GST* The relevant portion of the circular is reproduced below: “Subject: Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017 – reg. Attention is invited to sub-section (8) of section 12 of Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as “IGST Act”) which provides for the place of supply of services by way of transportation of goods, including by mail or courier, where location of the supplier as well as the recipient of services is in India. As per clause (a) of the aforesaid sub-section, the place of supply of services by way of transportation of goods, including by mail or courier, to a registered person shall be the location of such registered person. However, the proviso to the aforesaid sub-section which was inserted vide the Integrated Goods and Services Tax (Amendment) Act, 2018 w.e.f. 01.02.2019 provides that where the transportation of goods is to a place outside India, the place of supply of the said service shall be the place of destination of such goods. In such cases, as the place of supply of services, as per the proviso to sub-section (8) of section 12 of IGST Act, is the concerned foreign destination and not the State where the recipient is registered under GST, doubts are being raised regarding the availability of input tax credit of the said services to the recipient located in India.” 19

20 I. T. MIRROR Sr. No. Issue Clarification The place of supply of services by way of transportation of goods, including by mail or courier, where both the supplier and the recipient are located in India, is determined in terms of subsection (8) of section 12 of the IGST Act which reads as follows: “(8) The place of supply of services by way of transportation of goods, including by mail or courier to,— (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation: Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods” Hence, in case of supply of services by way of transportation of goods, including by mail or courier, where the transportation of goods is to a place outside India, and where the supplier and recipient of the said supply of services are located in India, the place of supply is the concerned foreign destination where the goods are being transported, in accordance with the proviso to the sub-section (8) of section 12 of IGST Act, which was inserted vide the Integrated Goods and Services Tax (Amendment) Act, 2018 w.e.f. 01.02.2019. Illustration: X is a person registered under GST in the state of West Bengal who intends to export goods to a person Y located in Singapore. X avails the services for transportation of goods by air to Singapore from an air cargo operator Z, who is also registered under GST in the state of West Bengal. In this case, the place of supply of the services provided by Z to X is the place of destination of goods i.e., Singapore, in terms of the proviso to sub-section (8) of section 12 of IGST Act. In case of supply of services by way of transportation of goods, including by mail or c o u r i e r , w h e r e t h e transportation of goods is to a place outside India, and where the supplier and recipient of the said supply of services are located in India, what would be the place of supply of the said services? 1 Section 16 of the CGST Act lays down the eligibility and conditions for taking input tax credit whereas, section 17 of the CGST Act provides for apportionment of credit and blocked credits under circumstances specified therein. The said provisions of law do not restrict availment of input tax credit by the recipient located in India if the place of supply of the said input service is outside India. Thus, the recipient of service of transportation of goods shall be eligible to avail input tax credit in respect of the IGST so charged by the supplier, subject to the fulfilment of other conditions laid down in section 16 and 17 of the CGST Act. In the case given in Sl. No. 1, whether the recipient of service of transportation of goods would be eligible to avail input tax credit in respect of the said input service of transportation of goods? 2

21 I. T. MIRROR Sr. No. Issue Clarification In the illustration given in Sl. No. 1 above, X would be eligible to take input tax credit of IGST in respect of supply of services received by him from Z, subject to the fulfilment of other conditions laid down in section 16 and 17 of the CGST Act. The supplier of service shall report place of supply of such service by selecting State code as '96-Foreign Country' from the list of codes in the drop-down menu available on the portal in FORM GSTR-1. In the case mentioned at Sl. No. 1,what state code has to be mentioned by the supplier of the said service of transportation of goods, where the transportation of goods is to a place outside India, while reporting the said supply in FORM GSTR-1? 3 As clearly stated in clarification to issue number 3, subject to fulfilment of sections 16 and 17 (which we already discussed above), the recipient of service of transportation of goods shall be eligible to avail of the input tax credit, even if the place of supply of said input service is outside India. POS of such service in the recipient's GSTR-2B would be '96-Foreign Country' and would not be the state of registration of the recipient of such service. Given the above clarification, we can draw a similar principle for itc of IGST on domestic goods and services too and the same shall also be eligible irrespective of POS. *REFLECTION IN GSTR-2B “itc available or not” TABLE* It is quite evident from the fact that the GSTN is also allowing such IGST and showing them “available” in contrast to the ITC of CGST-SGST whose POS lies in a state other than the recipient's state, intending not to restrict such ITC. CONCLUSION: From the perusal of the relevant portion of the statute, circulars and GSTN forms, it can be easily concluded that it is immaterial to check the state in which the POS of IGST falls because once the person becomes a “Registered Person” under the law, he becomes eligible to avail of the “Input tax” credit of IGST. For confirming the state in which a person is required to take registration, it is important to check the location from where such a person makes a taxable supply and not where the POS of input tax credit [IGST] falls,and, to confirm whether a tax is an “Input tax” or not one needs to ascertain if it is levied under the IGST Act, which is a single centralized law and shall not be tagged state-specific. REVENUE APPROPRIATION It has also been alleged sometimes that such IGST (whose POS lies in another state) is not eligible because of issues in the revenue appropriation. Let's go through relevant sections, rules and forms to have a better understanding of the same; Chapter VIII of the IGST Act speaks about the “Apportionment of tax and settlement of funds” and,

22 I. T. MIRROR Section 18 of that chapter talks about the “Transfer of input tax credit”:On utilisation of credit of integrated tax availed under this Act for payment of,–– (a) Central tax in accordance with the provisions of sub-section (5) of section 49 of the Central Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the central tax account in such manner and within such time as may be prescribed; (b) Union territory tax in accordance …………………………….; (c) State tax in accordance with the provisions of the respective State Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and shall be apportioned to the appropriate State Government and the Central Government shall transfer the amount so apportioned to the account of the appropriate State Government in such manner and within such time as may be prescribed. Explanation.––For the purposes of this Chapter, “appropriate State” in relation to a taxable person, means the State or Union territory where he is registered or is liable to be registered under the provisions of the Central Goods and Services Tax Act. The explanation confirms that once the recipient avails IGST input to offset the output liability of CGST/SGST, then the central government (custodian of IGST revenue)will transfer such utilized/offsetted portion of IGST to the “appropriate state”, i.e. the state where the recipient is registered, leading to which revenue transmits to the recipient's state and not to the state where the POS lies. Let us now go through the “Goods and Services Tax Settlement of Funds Rules, 2017” framed in this regard:- Rule 4 of the relevant rules talks about, Report of Cross-Utilisation and Apportionment of Integrated Tax between Centre (Integrated Tax) and State (State Tax) or Central (Integrated Tax) and Centre (Union Territory Tax).— (1) The details relating to the transfer of funds to be made between Centre (Integrated Tax) and State (State Tax) or Centre (Integrated Tax) and Centre (Union territory Tax) shall be sent by Goods and Services Tax Network to the Authorities, in FORMS GST STL 01.01 to GST STL – 01.12, for each State and Union Territory, as follows— (a) monthly consolidated statement for each State in FORM GST STL – 01.01containing the details referred to in clause (b) relating to the total amount to be transferred from the Centre (Integrated Tax) to the State (State Tax) or the Centre (Union Territory Tax), or vice-versa, on account of cross-utilisation of credit as per section 53 of the Central Goods and Services Tax Act and the Goods and Services Tax Act of the concerned State(hereinafter referred to as State Goods and Services Tax Act), section 21 of the Union Territory Goods and Services Tax Act and section 18 of the Integrated Goods and Services Tax Act, and from the Centre (Integrated Tax) to the State (State Tax) or the Centre (Union Territory Tax) on account of apportionment as provided for in section 17 of the Integrated Goods and Services Tax Act; (b) the monthly reports containing State-wise details pertaining to the information contained in FORM GST STL – 01.01 are as under— (i) ………. (ii)list of registered persons of the State or Union territory who have adjusted liability of State Tax or Union Territory Tax, as the case may be, from the input tax credit of Integrated Tax, as provided under section 18 of the

23 I. T. MIRROR Integrated Goods and Services Tax Act, in FORM GST STL – 01.03. Rule 5 of the relevant rules talks about, Report of Cross-Utilisation and Apportionment of Integrated Tax between Centre (Integrated Tax) and Centre (Central Tax).— The details relating to the transfer of funds between Centre (Integrated Tax) and Centre (Central Tax) to be made in a particular month relating in FORMS GST STL 02.01 to GST STL – 02.02, are as follows: (a) monthly consolidated statement containing State-wise details in FORM GST STL – 02.01containing themonth-wise details relating to the total amount to be transferred from the Centre (Integrated Tax) to theCentre (Central Tax), or vice-versa, on account of cross-utilisation of credit as provided for in section 53 ofthe Central Goods and Services Tax Act and section 18 of the Integrated Goods and Services Tax Act, andfrom the Centre (Integrated Tax) to the Centre (Central Tax) on account of apportionment as provided for insection 17 of the Integrated Goods and Services Tax Act; (b) monthly reports containing State-wise details containing list of registered persons who have adjusted liabilityof Central Tax from the input tax credit of Integrated Tax, as provided under section 18 of the IntegratedGoods and Services Tax Act, in FORM GST STL – 02.02. Note: The summary of Central Tax paid from the input tax credit of Integrated Tax shall be reflected in column 4of FORM GST STL 02.01. Relevant forms are reproduced below:

24 I. T. MIRROR It can be easily understood that GSTN sends monthly consolidated statements and lists of registered persons, for whom IGST was used to pay off CGST-SGST liability in Report GST STL – 01.01, 01.03, 02.01, 02.02 as per rule 4(1) clause (a)-(b)& rule 5 clause (a)-(b), having details of the transfer of fund between Centre [IGST] & State [SGST], and books adjustment between Centre [IGST] & Centre [CGST] based on returns filed by person. As we know primarily GSTR-3B is the only return in which offsetting of liability takes place, hence the transfer/adjustment shall also happen based on GSTR-3B filed by the recipient, and not as per GSTR-1 filed by the Supplier. Let us understand this with an example: Transaction 1 - A person registered in Gujarat makes a taxable supply to a person registered in Madhya Pradesh and shows POS as Rajasthan charging IGST Rs 1,00,000/-. Transaction 2 - Thereby, the recipient registered in Madhya Pradesh avails the ITC of that IGST (1,00,000/-) in GSTR-3B and supplies further to a person registered in Madhya Pradesh charging CGST-SGST each Rs 55,000/- total Rs 1,10,000/-, utilizing complete ITC of IGST (1,00,000/-) to offset liability of CGST-SGST. In transaction 1, the IGST paid (1, 00,000/-) by the person registered in Gujarat gets accrued to the IGST Account in the custody of the Central Government. In transaction 2, as per section 18 clause (a) and (c) of the IGST Act already discussed earlier, as soon as the person registered in Madhya Pradesh utilizes the ITC of IGST to set off or for the payment of liability of CGST-SGST,

25 I. T. MIRROR “the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and the Central Government shall transfer an amount (50,000/-) equal to the amount so reduced from the integrated tax account to the central tax account (i.e., book adjustment), and submit it in the statement as per rule 5 of GST Settlement rules, also the integrated tax shall be apportioned to the appropriate State Government and the Central Government shall transfer the amount (50,000/-) so apportioned to the account of the appropriate State Government, i.e. to the state of registration of the recipient [Madhya Pradesh not Rajasthan], and submit it in the statement as per rule 4(1) (a) GST Settlement rules. CONCLUSION: Settlement/Appropriation of IGST upon utilisation for the CGST-SGST liability can be done even in cases where the POS of such IGST falls in a state other than the state of registration of recipient, based upon the understanding developed on perusal of section 18 of the IGST Act and rules of settlement thereof. Additional learnings: In cases where ITC of IGST is being used to offset IGST liability, no book adjustment or appropriation is done. There is no provision in the settlement of fund rules for transfers/appropriation of CGST-SGST mutually because they don't get offset mutually which aligns with Section 49(5) (e & f) of the CGST Act. Appropriation of IGST in case of supply to a recipient who is URD or Composition person, is ascertained as per table 3.2 of Form GSTR-3B, for which a circular number 89/08/2019 dated 18-02-2019 was also issued confirming the importance of the said table, and the appropriation of such IGST is done as per section 17(1) (a) of the IGST Act. Once a registered person avails the ITC of IGST and reverses/pays it back on account of section 17(5) of the CGST Act, the appropriation of such revenue is done in accordance with section 17(1) (b) of the IGST Act.

26 In the Goods and Services Tax (GST) regime, claiming Input Tax Credit (ITC) on purchases made for business purposes plays a crucial role in reducing the overall tax burden. However, specific restrictions apply to claiming ITC on motor vehicles. This article delves into the eligibility of ITC on motor vehicles, with a particular focus on exceptions for vehicles exceeding 13 seating capacity and the scenario of renting motor vehicles. Understanding ITC on Motor Vehicles Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017, restricts ITC on certain supplies received by a registered taxpayer. One such restriction applies to motor vehicles used for the transportation of persons. General Rule: ITC Ineligibility for Passenger Cars As per the general rule, ITC is not available on motor vehicles with an approved seating capacity of less than or equal to 13 persons (including the driver). This encompasses most cars commonly used for business travel. Exceptions for ITC Eligibility on Motor Vehicles There are exceptions to the general rule, allowing ITC to be claimed on specific categories of motor vehicles: • Vehicles exceeding 13 seating capacity: ITC is available for motor vehicles designed to carry more than 13 passengers (including the driver). This category typically includes buses used for public transportation or staff transportation by companies. • Vehicles NOT exceeding 13 seating capacity: o Vehicles used for supplying other vehicles: If a business is involved in the supply of vehicles (e.g., a car dealership), ITC can be claimed on motor vehicles used for that purpose, irrespective of their seating capacity. o Vehicles used for transportation of goods: Businesses can claim ITC on motor vehicles primarily used for transporting goods in the course of their business. This includes trucks, tempos, and other goods carriers. ITC is also available on services like insurance, repair, and maintenance related to such vehicles. o Vehicles used for Imparting motor driving or training skills: Businesses can claim ITC on motor vehicles primarily used for imparting motor driving or training skills in the course of their business. This includes buying a Car by Driving School for teaching driving skills and knowledge to its customers o Vehicles used for transportation of Passenger: Businesses can claim ITC on motor vehicles primarily used for transporting passenger in the course of their business. This includes buying a Car and riding it for Ola/Uber, in such cases ITC on purchase of car is available if GST is charged on Outward supply to Ola/Uber or any Cab Aggregator. In recent times it will be difficult to claim ITC as such Cab Aggregators are covered u/s 9(5) wherein they are required to pay Pay GST on the supply. Input Tax Credit (ITC) on Motor Vehicles under GST: A Detailed Analysis – CA BHAVIK P. CHUDASAMA

27 I. T. MIRROR Renting/Hiring/Leasing of Motor Vehicles and ITC The eligibility of ITC on rented motor vehicles depends on the type of vehicle and its intended use: • Renting vehicles exceeding 13 seating capacity: Similar to owned vehicles, ITC can be claimed on the rent paid for buses or other large passenger vehicles used for business purposes. • Renting vehicles for transporting goods: ITC is available on the rent for goods carriers like trucks and tempos if they are used for transporting business goods. • Renting cars (seating capacity less than 13): ITC cannot be claimed on the rent for passenger cars with a seating capacity of less than 13 people, except when used for making outward taxable supply of o the Same Category of goods or services or both or – o As an Element of a taxable composite or mixed supply or – o The Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force o Vehicles used for Imparting motor driving or training skills o Vehicles used for transportation of Passenger Important Points to Remember • The onus of proving the intended use of the motor vehicle for claiming ITC lies with the taxpayer. Proper documentation like bills, invoices, and trip logs are essential for this purpose. • Businesses operating under the composition scheme are not eligible to claim ITC. Conclusion Understanding the intricacies of ITC on motor vehicles under GST is crucial for businesses to optimize their tax liability. While ITC is generally restricted for passenger cars, exceptions exist for larger vehicles used for public transportation, staff transportation, or goods carriage. Similarly, the eligibility of ITC on rented vehicles depends on the type and intended use of the vehicle. Consulting a tax professional for guidance on specific situations is always recommended.

28 Cancellation of Registration: - Introduction: - Cancellation of GST registration is a process of de-registering a business entity from the Goods and Services Tax (GST) system. A GST registration can be cancelled for various reasons, which are: 1. Closure of business operations. 2. Change in business ownership or structure. 3. Change in the nature of business activities. 4. Non-compliance with GST regulations. 5. Transfer of business ownership. • To cancel the GST registration, the business entity must file an application in the prescribed form (Form GST REG-16) on the GST portal. The application for cancellation of GST registration must be filed within 30 days from the date on which the cancellation of registration is required. • Once the application is filed, the GST officer may request additional information or documents for processing the application. If the officer is satisfied that all the conditions are met, the GST registration will be cancelled within a period of 30 days from the date of application. Before the GST registration is cancelled, the business entity must file all the pending GST returns and pay any outstanding taxes, interest or penalties before the cancellation is effective. • Cancellation of GST Registration implies that taxpayer will no longer be a GST registered person any more. He will not have to pay or be able to collect GST or claim input tax credit and accordingly, doesn't need to file GST returns. • FORMs of GST which are used in Cancellation of Registration are: Form GST Description Relevant Rule REG-16 Application for Cancellation of Registration REG-17 Show Cause Notice for Cancellation of Registration Rule 22(1) REG-18 Reply to the Show Cause Notice issued for Cancellation Rule 22(1) for Registration REG-19 Order For Cancellation of Registration REG-20 Order for Dropping the proceedings for Cancellation of Registration Provisions Relating to Cancellation And Revocation Of Cancellation of Registration Under GST Law - ADV ZALAK SOHIL DALAL

29 I. T. MIRROR Types of Notices relating to Cancellation of Registration Sr No Relevant Form Particulars Relevant Rule (i) REG-31 Notice seeking cancellation of registration on account of 21A(2A) discrepancy in details furnished in Form GSTR-3B with that furnished in Form GSTR-1 (ii) REG-17 Notice seeking Cancellation of registration by proper 22(1) officer under Section 29 (Suo Motu Cancellation) (iii) REG-18 Reply to be furnished by taxpayer against SCN issued in 22(1) Form REG-17 within a period of 7 working days (iv) REG-23 Notice seeking Rejection of Application for Revocation 23(3) of Cancellation of Registration (v) REG-24 Reply to be furnished by taxpayer against notice issued in 23(3) FORM REG-23 above within a period of 7 working days Statutory Provision for Cancellation of Registration Section 29 prescribes for Cancellation or Suspension of Registration of CGST and SGST Act,2017. While Rule 20, 21, 21A, 22 prescribes procedure for Cancellation and Suspension of Registration of CGST and SGST Rules,2017. Rule Heading 20 Application for Cancellation of Registration 21 Registration to be Cancelled in Certain Cases 21A Suspension of Registration 22 Cancellation of Registration Comments on Section 29 Cancellation of Registration. • Originally the heading was “Cancellation of Registration” of Section 29 but the word “OR SUSPENSION” has been added by CGST Amendment Act,2018 w.e.f. 01.02.2019. • Section 29(1) Provides Application for Cancellation Sub Section (1) of Section 29 prescribes proper officer by his own motion or by application by the registered person or by the legal heirs in case of death of the person within such period and in prescribed manner in circumstances prescribed. These are: a) Discontinuance of business transferred fully for various reasons death of proprietor, amalgamation or demerger with other legal entity or otherwise dispose of b) Any change of constitution of business c) Taxable person no longer liable for to be registered under section 22 or Section 24 or intends to opt out of the registration voluntarily made under Sub Section (3) of section 25. In the above case, the application for cancellation of registration is generally made by the taxpayer or by legal heir of the tax payer in case of his death.

30 I. T. MIRROR • During the pendency of this cancellation proceeding, the Registration may be suspended for such period. – This proviso has been inserted by CGST (Amendment) Act,2018 w.e.f. 01.02.2019 vide Notification No 02/2019 dated 29-01-2019. So, the Concept of Suspension was not there when GST introduced in July 2017 but later on Concept of suspension was introduced from 1st Feb, 2019. • Here, the relevant Rule is Rule 20 of CGST Rules, 2017 which provides Procedure for making application for Cancellation of Registration. Rule 20 Application for Cancellation of Registration A Registered person, who seeks cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG-16 at the Common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner, with the details of - a) Inputs held in Stock or b) Inputs contained in Semi-Finished or c) Finished Goods held in Stock and d) Capital Goods held in Stock on the date from which the Cancellation of Registration is sought, e) Liability thereon, f) The details of the Payment, if any, made against such liability and may furnish, along with the application, g) Other Relevant Documents in Support thereof, • This procedure is prescribed for assesses other than a person to whom a registration has been granted under Rule 12. These are the Persons required to deduct TDS OR TCS or a person to whom a Unique Identity Number has been granted under Rule 17. • A proviso as existed upto 22nd January, 2018 was there which says that “Provided that no application for the cancellation of registration shall be considered in case of a Taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration” has been Omitted by CGST (Amendment) Rules,2018 Vide Notification No. 03/2018 dated 23.01.2018. So, one can apply for Cancellation of Registration before one year from effective date of registration only in case of Voluntary Registration. Hence, any person who has taken voluntary registration can apply for cancellation of the same at any time. • The CBIC Vide Circular No. 69/43/2018-GST, dated 26.10.2018 has clarified that the deadline of 30 days may be liberally interpreted and the taxpayers’ application for cancellation of registration may not be rejected because of the possible violation of the deadline as it may be difficult to pinpoint the date on which event occurs in all cases. • But in practice in regular course, we observed that 30 days deadline has not been interpreted liberally. After 30 days if the Cancellation of Registration applied in REG-16 from the date of effective date of cancellation, it results into rejection. Section 29(2) Provides for Suo Motu Cancellation by Proper Officer • Sub section (2) of Section 29 prescribes proper officer may cancel the registration from such date including any retrospective date, as he may deem fit, where –

31 I. T. MIRROR a) a Registered Person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or b) A Person paying tax under Section 10 Composition Levy has not furnished the return for a financial year beyond three months from the due date of furnishing the said return; or - The word “the return for a financial year beyond three months from the due date of furnishing the said return” has been Inserted by CGST 14th Amendment Rules, 2020 w.e.f. 22.12.2020 Vide Notification No 94/2020 dated 22nd Dec, 2020. c) Any Registered person, other than a person specified in clause (b), has not furnished returns for [such continuous Tax period as may be prescribed; or – the word “such continuous Tax period as may be prescribed” has been Inserted by CGST (2ND Amendment) Rules, 2022 w.e.f. 01.10.2022. Vide Notification No 18/2022 dated 28th Sept, 2022. It is pertaining to those who have taken Registration as Regular Tax payer. d) Any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or e) Registration has been obtained by means of fraud, wilful misstatement or suppression of facts: The proviso prescribes that the proper officer shall not cancel the registration without giving the person an opportunity of being heard. Further provided that the Proper officer may suspend the registration during the pendency of the cancellation of registration in the manner prescribed under Rule 21A. • Second proviso to Sub-Section (2) of Section 29 provides that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for certain time period. • Clause (a) of Sub- Section (2) of Section 29 empowers the proper officer to cancel the registration of taxable person where the registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed. Such contraventions are mentioned under Rule 21 of the CGST Rules, according to which the registration granted to a person would be liable to be cancelled. Rule 21 provides Registration to be Cancelled in certain cases The registration granted to a person is liable to be cancelled, if the said Person, - a) Does not conduct any business from the declared Place of business; or b) Issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder; or - Originally the words in clause “(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder." Substituted by CGST Amendment) Rules, 2017 dated 27.06.2017 w.e.f. 22.06.2017 and the word “or both” has been inserted by CGST (14TH Amendment) Rules, 2020 dated 22.12.2020 w.e.f. 22.12.2020 Vide notification No 94/2020 dated 22nd Dec. 2020 c) Violates the provisions of Section 171 of the Act or the rules made thereunder. Section 171 prescribes measures for Anti profiteering. d) Violates the provision of Rule 10A. – Inserted by CGST (4th Amendment) Rules, 2019 dated 28.06.2019 vide Notification No 31/2019 dated 28th June, 2019, which makes taxpayer to compulsory to furnish bank account information on GST portal within 45 days of grant of registration or the due date of first GSTR 3B, whichever is earlier by inserting Rule 10A of the CGST Rules' 2017. e) Avails Input tax credit in violation of the provisions of section 16 of the Act or the rules made thereunder; or f) Furnishes the details of Outward Supplies in FORM GSTR-1 under section 37 for one or more tax periods

32 I. T. MIRROR which is in excess of the outward supplies declared by him in his valid return under section 39 for the said tax periods; - So those who have shown more Outward Supplies and less in GSTR 3B of those Tax Period Registration can be cancelled by issuing FORM REG-31 which is an Intimation for Suspension and Notice for Cancellation of Registration for the discrepancy in filled GSTR-3B and GSTR-1 of Tax Period and details of inward supplies. This a system generated notice and Inserted by CGST (14TH Amendment) Rules, 2020 dated 22.12.2020 w.e.f. 22.12.2020 vide notification No 94/2020 dated 22nd Dec, 2020. g) Violates the provision of Rule 86B.- Rule has been regarding Payment of 1% tax if the turnover is more than 50 lakhs in a tax period subject to certain exception prescribed in the rule. Clause e, f, g has been inserted by CGST (14TH Amendment) Rules, 2020 dated 22.12.2020 w.e.f. 22.12.2020 vide notification No 94/2020 dated 22nd Dec, 2020. h) being a Registered person required to file return under subsection (1) of section 39 for each month or part thereof, has not furnished returns for a continuous period of six months; (i) being a Registered person required to file return under proviso to subsection (1) of Section 39 for each quarter or part thereof, has not furnished returns for a continuous period of two Tax periods. Clause h has been inserted by CGST (Second Amendment) Rules, 2022 dated 28.09.2022 w.e.f. 01.10.2022 Vide Notification No 18/2022 dated 28th September, 2022. Section 29(3) Cancellation doesn’t Affect liability (3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. • So, the cancellation of registration has no effect on the liability of the taxpayer for any acts of commission/omission committed before or after the date of cancellation. • Therefore, for the tax period during which a tax payer was registered though registration has been cancelled the taxpayer is still liable to pay tax, interest or penalty if not paid by tax payer whose registration is cancelled. Section 29(4) Cancellation for both at once (4) The cancellation of registration under The State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a Cancellation of Registration under this Act. So, as per Sub-Section (4) of Section 29, the Cancellation of Registration under the SGST Act or UTGST Act shall be deemed to be a Cancellation of Registration under the SGST Act and CGST Act reason being CGST Act is Pari Maetria with SGST Act under GST Law. Section 29(5) Payoff of debts (5) Every Registered person whose registration is cancelled shall pay an amount, by way of debit in the Electronic credit ledger or Electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or Capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the Output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: in Rule 44 • In terms of Para 8 of Circular No. 69/43/2018-GST, dt 26th OCT, 2018, for the purpose of this calculation, the stocks of inputs, semi-finished goods, finished goods and capital goods shall be taken as on the day immediately preceding the date from which the cancellation has been ordered by the proper officer i.e. the date of cancellation of registration.

33 I. T. MIRROR • It has been further stated that this requirement to debit the electronic credit and/or cash ledger by suitable amounts should not be a prerequisite for applying for cancellation of registration. This can be done at the time of submission of final return in Form GSTR-10. So, in cases where proper officer issues SCN in FORM REG-17 and states that Reversal of ITC required for the input held in stock whether finished or semi-finished or of finished goods, there the tax payer can submit their reply by quoting Circular No 69/43/2018-GST dated 26.10.2018 Para No 8 “ It is clarified that this requirement to debit the electronic credit and/or cash ledger by suitable amounts should not be a prerequisite for applying for cancellation of registration This can also be done at the time of submission of final return in FORM GSTR-10.” • In any case, once the taxpayer submits the application for cancellation of his/her registration from a specified date, he/she will not be able to utilize any remaining balances in his/her electronic credit/ cash ledgers from the said date except for discharging liabilities under GST Act upto the date of filing of final return in FORM GSTR10. Therefore, the requirement to reverse the balance in the electronic credit ledger is automatically met. • In case it is later determined that the output tax liability of the taxpayer, as determined under sub-section (5) of section 29 of the CGST Act, was greater than the amount of input tax credit available, then the difference shall be paid by him/her in cash. • As per sub-section (3) of section 29 of the CGST Act, the cancellation of registration does not, in any way, affect the liability of the taxpayer to pay any dues under GST law, irrespective of whether such dues have been determined before or after the date of cancellation. • As per FAQs on GST dt. 15-12-2018, the requirement to debit the electronic credit and/or cash ledger by suitable amounts should not be a pre-requisite for applying for cancellation of registration. This can also be done at the time of submission of final return in FORM GSTR-10. Provided that in case of Capital goods or plant and machinery, the Taxable person shall pay an amount equal to the Input tax credit taken on the said Capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such Capital Goods or Plant and Machinery under section 15, whichever is higher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed in Rule 44 - Manner of reversal of credit under special circumstances. • In term of proviso to Sub-Section (5) of Section 29, in case of capital goods, the taxable person, whose registration has been cancelled, is required to pay an amount equal to the ITC on the said Capital Goods reduced by the prescribed percentage points or the tax on the transaction value of such capital goods under 15, whichever is higher, as under: • As per Rule 44(1)(b), for capital goods held in stock, the ITC involved in the, remaining useful life in months shall be computed on pro-rata basis taking the useful life as 5 years. Illustration: - • Capital Goods have been in use for 4 year, 6 months and 15 days • The useful remaining life in months = 5 months Here, we are ignoring a part of the month • Input tax credit attributable to remaining useful life = C multiplied by 5/60 • The amount payable as above, shall be calculated in accordance with generally accepted accounting principles in the prescribed manner.

34 I. T. MIRROR Rule 22. Cancellation of Registration.- 1) Where the Proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled. 2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM GST REG-18 within the period specified in the said sub-rule. 3) Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the Proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1) [or under sub-rule (2A) of rule 21A], cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section (5) of section 29. Here the “or under sub-rule (2A) of Rule 21A” Inserted by CGST (14TH Amendment) Rules, 2020 dated 22.12.2020 w.e.f. 22.12.2020. Vide Notification No 94/2020 dated 22nd Dec, 2020. 4) Where the reply furnished under sub-rule (2) [or in response to the notice issued under sub-rule (2A) of rule 21A] is found to be satisfactory, the Proper officer shall drop the proceedings and pass an order in FORM GST REG-20. Here the “or in response to the notice issued under sub-rule (2A) of rule 21A” Inserted by CGST (14th Amendment) Rules, 2020 dated 22.12.2020 w.e.f. 22.12.2020 Vide Notification No 94/2020 dated 22nd Dec, 2020. The Proviso Provided that where the person instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the Proper officer shall drop the proceedings and pass an order in FORM GST REG-20, has been inserted by CGST 18th Amendment Rules, 2018 dated 04.09.2018 vide Notification No 39/2018 dated 4th Sept, 2018 5) The provisions of sub-rule (3) shall, mutatis mutandis which means with necessary changes apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself. Rule 21A Suspension of Registration • Rule 21A Sub Rule (1) Deemed Suspension • Rule 21A Sub Rule (2) Suspension done by Proper Officer • Rule 21A Sub Rule (3) No supply can be made during the period of suspension • Rule 21A Sub Rule (3A) No refund can be granted during the period of suspension. • Rule 21A Sub Rule (4) Revocation of Suspension of Registration • The suspension of registration of a taxpayer shall be deemed to be revoked upon completion of the proceedings of cancellation of registration by the proper officer under Rule 22 and such revocation shall be effective from the date on which suspension had come into effect. It is also provided that the suspension of registration may be invoked by the proper officer, any time during the pendency of the proceedings for cancellation, if he deems fit. • Rule 21A Sub Rule (5) Issuance of Revised Invoice After Invocation of Suspension Where Any Order having the effect of Revocation of Suspension of Registration has been Passed, the provision of clause (a) of sub section 31 (issuance of revised invoice after revocation of suspension) and Section 40 (furnishing of Final Return) is respect of supplies made during the period of suspension and the procedure specified therein shall apply.

35 I. T. MIRROR For the Suspension of Registration, one should refer the SOP issued by Circular No 145/01/2021-GST, dt. 11-02-2021 Standard operating procedure (SOP) for Implementation of the Provisions of Suspension of Registration under Sub-Rule (2A) of Rule 21A of CGST Rules,2017. Para 4 provides Action to Be Taken By Dealer After Suspension of Registration The taxpayer whose registration are suspended would be required to furnish reply to the jurisdictional tax officer within 30 days from the receipt of such notice/intimation, explaining discrepancy/anomalies if any and shall furnish the details of compliances made or/and the reasons as to why their registration should not be cancelled. The said person would be required to reply to the jurisdictional officer against the notice for cancellation of registration sent to them, in Form GST REG-18 online through Common Portal with in time limit of 30 days from the receipt of notice/ intimation. In case the intimation for suspension and notice for cancellation of registration is issued on ground of non-filling of returns, the said persons may file all the due returns and submit the response. Similarly, in other scenarios as specified under form GST REG-31, they may meet the requirements and submit the reply. Proceedings for Cancellation of Registration can not be kept Pending for Long Time Avon Udhyog v. State of Rajasthan [2021] 87 GST 25 (Rajasthan HC) The Rajasthan High Court observed that suspension of a registration of an assessee has its own consequences- it brings the entire business to a stand still. In a way it is worse than cancellation. Against cancellation, an assessee can take legal remedies but against suspension pending an enquiry, even if the assessee chooses to take remedies, the authorities or the court(s) would normally show reluctance. The high court held that proceedings of cancellation of registration cannot be kept handing of fire on any pretext, hence, where SCN was issued to assessee, proposing to cancel suspension with immediate effect, even though assessee failed to file reply within time allowed, Authority issuing notice was statutorily bound to pass order cancelling registration in terms of sub-rule (3) of Rule 22 of the CGST Rules. Final Return Required to be filled Every registered taxable person who applies for cancellation of registration is required to furnish a final return in FORM GSTR-10 within 3 months of the date of cancellation or date of cancellation order, whichever is later. The purpose of final return is to ensure that the taxpayer discharges liability that he/she may have incurred under Sub-section (5) of section 29 of the CGST Act. Revocation of Cancellation Registration Introduction: - A taxpayer whose GST registration has been cancelled by the proper officer within the relevant provisions of CGST Act, 2017 (for example, non- filing of GST returns for a certain period of time) faces consequences in form of a total cessation of his/her business activities as the taxpayer cannot make taxable supply, e- way bills and collect tax from the customers. As a result, all of the business activity comes to a total halt. In such situations, the government has given facility to the taxpayer to file a revocation application before the proper officer and ask for restoration of his/her GST registration by showing sufficient cause. The revocation application, if accepted by the officer, reinstates the GST registration of the taxpayer from the very same date from where the registration was cancelled by the officer.

36 I. T. MIRROR The Revocation of GST registration allows the taxpayer to file the pending returns and pay the due taxes. Relevant Forms for Revocation of Cancellation of Registration: FORM GST Relevant Rule Description REG-21 Application for Revocation of Cancellation of Registration REG-22 Order For Revocation of Cancellation of Registration REG-23 23(3) Show Cause Notice for rejection of application for revocation of cancellation of registration REG-24 23(3) Reply to the notice for rejection of application for revocation of cancellation of registration REG-05 Order of Rejection of Application for Revocation of Cancellation Important Things While Applying Revocation of Cancellation of Registration Kept in Mind • Aadhar authentication of the authorized signatory/ proprietor/partner/ director is mandatory before filing a revocation application in terms of Section 30 of the CGST Act, 2017. From 1st Jan, 2022, CBIC has made the Aadhaar Authentication mandatory to apply for revocation of cancelled GST registration under the CGST Rule 23 in while filling Form REG-21. – Inserted by CGST (8th Amendment Rules, 2021 dated 24.09.2023 w.e.f. 01.01.2022 by Notification No. 38/2021-Central Tax dated 21.12.2021. • Where the cancellation has been done due to non- filing of returns, the taxpayer is required to file all the said returns along with payment of tax, interest & late fee before filing revocation application. Practically, the system itself does not allow one to file revocation application, if the returns are pending or can say not filed. In what cases can a Registered Taxable Person apply for Revocation of Cancellation of his Registration? • In terms of sub-section (1) of section 27 i.e. Registration of Casual Taxable person and Non -Resident Taxable person, any registered taxable person, whose registration is cancelled by proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration. • Sub-section (1) of section 27 i.e., Registration of Casual Taxable person and Non -Resident Taxable person so whose registration is cancelled by proper officer on his own, apply to such officer for revocation of cancellation of the registration. • But where a registration is cancelled at the request of the taxable person or his legal heirs, the same can-not be revoked. Option of withdraw is available on GST portal untill and unless cancellation order not issued by proper officer. In such a case where the cancellation order issued, fresh GST Registration is the option available to the taxpayer. Withdrawal option if Cancellation of Registration made by Mistake available from 17/02/2022 on GST Portal • If the application for cancellation of GST registration is made by mistake and the applicant wishes to withdraw the application, then that may be withdrawn by following below mentioned steps: 1. Go to the Common Portal and post login navigate through Services User Services View My Submissions 2. Click on the “Withdraw” button available beside your Application for Cancellation of Registration 3. Click on Confirm and your application will be withdrawn.

37 I. T. MIRROR Legal Provisions for Revocation of Cancellation of Registration Section 30 of CGST Act, 2017 and Rule 23 of CGST Rules provides for Revocation of Cancellation of Registration Section 30. Revocation of Cancellation of Registration. Section 30(1) Filling Application for Revocation of Cancellation (1) Subject to such conditions as may be prescribed, any Registered person, whose registration is cancelled by the Proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in [such manner, within such time and subject to such conditions and restrictions, as may be prescribed,] – substituted by Finance Act, 2023 dated 31.03.2023 w.e.f. 01.10.2023 by Noti. No. 28/2023-Central Tax dated 31.07.2023 for "the prescribed manner within thirty days from the date of service of the cancellation order." “Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended, - a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days; b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).”- Omitted by Finance Act, 2023 dated 31.03.2023 by Notification No. 28/2023-Central Tax dated 31.07.2023 In view of the above, a total period of 90 days (normal period of 30 days+ additional 30 days by the additional commissioner or the joint commissioner+ additional 30 days by the commissioner) is available for filling application for revocation of cancellation of registration. Section 30(2) Opportunity of Being Heard (2) The Proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application: Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard. Section 30(3) Revocation of Both at Once (3) The revocation of cancellation of registration under The State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under this Act. Rule 23. Revocation of cancellation of Registration. - Rule 23 (1) application for revocation (1) A Registered person, whose registration is cancelled by the Proper officer on his own motion, after doing Aadhar Authentication submit an application for revocation of cancellation of registration, in FORM GST REG-21, to such Proper officer, within a period of ninety days from the date of the service of the order of cancellation of registration, at the common portal, either directly or through a Facilitation Centre notified by the Commissioner: - The words “within a period of ninety days from the date of the service of the order of cancellation of registration” substituted by CGST (2nd Amendment) Rules,2023 w.e.f. 01.10.2023 vide Notification No. 48/2023-Central Tax Dated 29th Sept, 2023

38 I. T. MIRROR Earlier the words were "within a period of thirty days from the date of the service of the order of cancellation of registration “or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30” – Inserted by CGST (4th Amendment Rules,2021 dated 18.05.2021 w.e.f. 18.05.2021 vide notification no 15/2021 dated 18th May, 2021 • Initially, the time limit for filing a revocation application was only 30 days from the date of service of cancellation order. But now, this limit has been increased from 30 days to 90 days from the date of service of cancellation order. The time limit has been increased w.e.f. 01.10.2023 by Notification No. 48/2023- Central Tax Dated: 29th Sept, 2023. So, the taxpayers now have more time to apply for revocation of cancelled GST registration. The form in which such application is to be filed at common GST portal is Form GST REG-21. Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended by the Commissioner or an officer authorised by him in this behalf, not below the rank of Additional Commissioner or Joint Commissioner, as the case maybe, for a further period not exceeding one hundred and eighty days: - This proviso is substituted with effect from 01.10.2023 by Notification No-38/2023- Central Tax which is called Central Goods and Services Tax (Second Amendment) Rules, 2023. • This proviso has given power to Commissioner or an officer authorised by him, Additional Commissioner or Joint Commissioner not below that rank for filing an application of revocation of cancellation of registration up to180 days available by writing reasons in writing. • Therefore, normal period of 30 days + additional 30 days by additional commissioner or joint commissioner +30 days by commissioner + 90 days by Commissioner or an officer authorised by him, Additional Commissioner or Joint Commissioner (not below that rank) is available with the taxpayer whose GST Registration has been cancelled. • So, one can apply up to 180 days from the date cancellation order issued by showing sufficient cause for the delay with delay condonation application after 1st Oct, 2023. Provided further that no application for revocation shall be filed, if the registration has been cancelled for the failure of the Registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns. Provided also that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration: Provided also that where the registration has been cancelled with retrospective effect, the Registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration.- This proviso is substituted with effect from 01.10.2023 by Notification No38/2023- Central Tax which is called Central Goods and Services Tax (Second Amendment) Rules, 2023. Procedure for Revocation of Cancelled Registration (2) (a) Where the Proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant. (b) The Proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in

39 I. T. MIRROR clause (a), by an order in FORM GST REG-05, Reject the application for Revocation of Cancellation of Registration and communicate the same to the applicant. (3) The Proper officer shall, before passing the order referred to in clause (b) of sub-rule (2), issue a notice in FORM GST REG-23 requiring the applicant to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24. (4) Upon receipt of the information or clarification in FORM GST REG-24, the Proper officer shall proceed to dispose of the application in the manner specified in sub-rule (2) within a period of thirty days from the date of the receipt of such information or clarification from the applicant. The above time limit can also be extended by the Commissioner (on proving sufficient cause resulting in delay of filing application) for a further period of upto 180 days. The officer, if satisfied with the reasons mentioned in the application, will revoke the cancelled GST registration within 30 days from the date of receipt of revocation application filed by the taxpayer by passing his order in Form GST REG-22. The officer may also issue a notice in Form GST REG-23 as to why the registration of tax payer be revoked. In this scenario, the tax payer will get 7 days’ time to respond to this notice. Reply by the tax payer shall be filed in Form GST REG-24. If the reply is found satisfactory by the proper officer, he/ she will accept the revocation application and reinstate the registration. If the officer is not satisfied with the reply filed by the taxpayer, he may reject the application by issuing Form GST REG- 05. If this rejection order is issued, then the registration cannot be reinstated and stands permanently cancelled. Circular No. 148/04/2021-GST dated the18th May, 2021 Standard Operating Procedure (SOP) for Implementation of the provision of Extension of Time Limit to apply for Revocation of Cancellation of Registration under Section 30 of the CGST Act, 2017 and Rule 23 of the CGST Rules, 2017 This SOP is for Applying for Extension of Time Limit for Revocation of Cancellation Till the time an independent functionality for extension of time limit for applying in Form REG-21 is developed on the GSTN portal the CBIC has issued by this circular the guideline for Applying for Revocation of Cancellation of Registration 4.1 Where a person applies for revocation of cancellation of registration beyond a period of 30 days from the date of service of the order of cancellation of registration but within 60 days of such date, the said person may request, through letter or e-mail, for extension of time limit to apply for revocation of cancellation of registration to the proper officer by providing the grounds on which such extension is sought. The proper officer shall forward the request to the jurisdictional Joint/Additional Commissioner for decision on the request for extension of time limit. 4.2 The Joint/Additional Commissioner, on examination of the request filed for extension of time limit for revocation of cancellation of registration and on sufficient cause being shown and for reasons to be recorded in writing, may extend the time limit to apply for revocation of cancellation of registration. In case the request is accepted, the extension of the time limit shall be communicated to the proper officer. However, in case the concerned Joint/Additional Commissioner, is not satisfied with the grounds on which such extension is sought, an opportunity of personal hearing may be granted to the person before taking decision in the matter. In case of rejection of the request for the extension of time limit, the grounds for such rejection may be communicated to the person concerned, through the proper officer.

40 I. T. MIRROR 4.3 On receipt of the decision of the Joint/Additional Commissioner on request for extension of time limit for applying for revocation of cancellation of registration, the proper officer shall process the application for revocation of cancellation of registration according to the law and procedure laid down in this regard. 5. The above Procedure shall also be followed in case a person applies for revocation of cancellation of registration beyond a period of 60 days from the date of service of the order of cancellation of registration but within 90 days of such date. 6. The circular shall cease to have effect once the independent functionality for extension of time limit for applying in FORM GST REG-21 is developed on the GSTN portal • By Issuing Form GST REG-23 Show Cause Notice for Rejection of Application for Revocation of Cancellation of Registration The proper officer demands certain documents which are: 1. Trading A/C, Profit & Loss A/C & Balance Sheet or Provisional Balance Sheet of Defaulting Year, 2. Month wise figures of GSTR-1, GSTR-2A Credit, GSTR-3B Liability, Late Fees in table. 3. Discharge liability in Cash Ledger and Paid Challan 4. Latest sale/purchase bill copy 5. Latest and Original Proof of Principal Place of Business, Rent Agreement/ “Before me” Notarized Consent Letter Whichever Applicable 6. Bank Statement for Defaulting Period • These documents have to be uploaded on GST Portal when demanded by issuing SCN and copy of the same must be submitted to the SCN issuing officer within 7 Working Days and Opportunity of Personal Hearing also provided. After doing Spot Visit. i.e., Physical Verification of Business Premises Under Rule 25 Sub Rule 1 at the Registered Principal Place of Business Order for Revocation of Cancellation of Registration in the FORM REG-22 issued. This is how GST Registration which is cancelled can be activated again practically. • But I am having the view that bank statement of defaulting period, Trading A/C, Profit & Loss A/C & balance sheet or provisional Trading A/C, Profit & Loss A/C & balance sheet of defaulting period, latest sale/purchase bill copy, latest and original proof of principal place of business, Rent Agreement/ “Before me” Notarized Consent letter whichever Applicable is demanded by proper officer issuing SCN in Form REG-23 is beyond the law because Act and Rules does not prescribe that. So, the proper officer’s act of demanding this document is beyond the power of law. This is my personal view. • If the FORM GST REG-05 Order of Rejection of Application for Revocation of Cancellation has been issued in such case First Appeal can be filed at First Appellate Authority under section 107 of CGST Act, 2017. • Writ can be filed in Jurisdictional High court under article 226 as fundamental right of Freedom of trade and practice under Article 19(1)(g) violated by challenging SCN and Order if any issued. Conclusion:- Application of Revocation of Cancellation of GST Registration provides filing taxpayer an opportunity to again continue the business activity by completing compliance of GST Law by filling returns of GST and payment of Tax, Interest, Late Fees and this compliance of GST has great significance when one wants to avoid cancellation of GST Registration. One should take benefit of 180 Days’ time period for applying Revocation of Cancellation by showing sufficient cause for delay of filing revocation application which is given by the law from 01.10.2023 and after completion of 180 days one should file appeal before First Appellate authority the Appeal against Order of Cancellation of Registration.

41 Gujarat RERA 2.0: Revolutionizing Real Estate for All Stakeholders The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was introduced to enhance transparency, accountability, and efficiency in the real estate sector. Gujarat, one of the leading states in implementing RERA, has taken a significant step forward with the introduction of Gujarat RERA 2.0. This upgraded version aims to further streamline processes and bring additional benefits to developers, RERA authorities, buyers, and other stakeholders. For Developers 1. Simplified Compliance: Gujarat RERA 2.0 introduces a more user-friendly interface for project registration and compliance. The streamlined process reduces paperwork and the time required for approvals, allowing developers to focus more on construction and project delivery. 2. Increased Transparency: The updated system mandates regular updates on project progress, ensuring that developers maintain transparency. This builds trust with buyers and investors, potentially leading to increased sales and funding opportunities. 3. Faster Approvals: With an improved digital infrastructure, the time taken for project approvals is significantly reduced. Faster approvals mean developers can commence construction sooner, improving project timelines and financial planning. 4. Enhanced Support: Gujarat RERA 2.0 provides dedicated support channels for developers, offering assistance with technical issues and regulatory queries. This ensures developers can resolve issues quickly and maintain compliance. For RERA Authorities 1. Efficient Monitoring: The upgraded platform offers advanced tools for monitoring project progress and compliance. Authorities can easily track key performance indicators and identify projects that may require intervention. 2. Data-Driven Decision Making: With enhanced data analytics capabilities, RERA authorities can analyze trends and make informed decisions. This helps in identifying potential issues in the real estate market and formulating policies to address them. 3. Improved Regulatory Oversight: Gujarat RERA 2.0 enhances the ability of authorities to enforce regulations and take timely action against non-compliant developers. This ensures a fair and well-regulated real estate market. All about Gujarat RERA 2.0 CA HARSH MEHTA ADV (CS) LOKESH SHAH

42 I. T. MIRROR 4. Streamlined Grievance Redressal: The new system incorporates a more efficient grievance redressal mechanism, allowing authorities to address complaints and disputes swiftly. This improves stakeholder satisfaction and trust in the regulatory framework. For Buyers 1. Enhanced Transparency: Buyers can access comprehensive information about projects, including construction timelines, financial details, and approvals. This transparency helps buyers make informed decisions and reduces the risk of fraud. 2. Improved Accountability: Developers are required to update project statuses regularly, ensuring that buyers are kept informed about progress. This accountability helps in building trust and reduces the chances of project delays. 3. Simplified Complaint Resolution: The upgraded grievance redressal system allows buyers to file complaints easily and track their resolution. This ensures that their concerns are addressed promptly, enhancing their overall experience. 4. Increased Confidence: With better regulatory oversight and transparency, buyers can invest in real estate with greater confidence, knowing that their rights are protected and that they are dealing with compliant developers. For Financial Institutions: Banks and other financial institutions benefit from the enhanced transparency and accountability. They can make more informed decisions when extending loans to developers and buyers, reducing their risk exposure. 1. Enhanced Risk Assessment: Gujarat RERA 2.0 provides financial institutions with comprehensive data on real estate projects, including developers' track records and project statuses. This enables more accurate risk assessment when evaluating loan applications from developers and buyers, thereby reducing the likelihood of non-performing assets. 2. Increased Confidence in Investments: With greater transparency and regulatory oversight, financial institutions can be more confident in financing real estate projects. The assurance that projects are compliant with RERA regulations reduces the risk of defaults and ensures better returns on investment. 3. Streamlined Loan Processing: The improved data availability and streamlined processes under Gujarat RERA 2.0 facilitate quicker verification of project details and developer credentials. This accelerates the loan approval process, benefiting both the financial institutions and their clients. 4. Better Monitoring and Control: Financial institutions can use the real-time project updates and compliance reports available on the RERA 2.0 platform to monitor the progress of financed projects closely. This allows them to identify potential issues early and take corrective actions, ensuring that projects stay on track. 5. Strengthened Collaboration: Gujarat RERA 2.0 fosters better collaboration between financial institutions and developers by providing a transparent and reliable platform for information exchange. This collaborative environment helps in building stronger relationships and facilitates smoother project financing.

43 I. T. MIRROR 6. Enhanced Portfolio Management: With access to detailed analytics and insights provided by Gujarat RERA 2.0, financial institutions can better manage their real estate portfolios. They can identify trends, allocate resources more efficiently, and optimize their investment strategies to maximize returns. For Real Estate Agents: Agents can leverage the improved information availability to provide better services to their clients. They can help buyers and investors make informed decisions, improving their reputation and business prospects. 1. Access to Comprehensive Information: Gujarat RERA 2.0 provides real estate agents with detailed and up-to-date information on registered projects, including their status, approvals, and compliance records. This allows agents to offer accurate and reliable information to their clients, enhancing their credibility. 2. Enhanced Client Trust: Transparency and accountability in project details build trust with clients. Agents can assure buyers and investors that the projects they are dealing with are compliant with RERA regulations, thereby increasing client confidence and satisfaction. 3. Streamlined Transactions: The improved regulatory framework under Gujarat RERA 2.0 simplifies the transaction process. With clear and accessible project information, agents can facilitate quicker and smoother transactions, reducing the time and effort required to close deals. 4. Better Market Insights: The advanced data analytics capabilities of Gujarat RERA 2.0 provide agents with valuable market insights. Agents can analyze trends, understand market dynamics, and tailor their strategies to meet the demands of buyers and investors effectively. 5. Enhanced Professional Standards: The regulatory framework encourages agents to maintain high professional standards. Compliance with RERA guidelines ensures that agents operate ethically and transparently, which can improve their reputation and attract more clients. 6. Efficient Dispute Resolution: The streamlined grievance redressal mechanism under Gujarat RERA 2.0 enables agents to resolve client issues quickly and effectively. This not only enhances client satisfaction but also helps in maintaining long-term relationships with clients. 7. Improved Collaboration: The platform fosters better collaboration between real estate agents, developers, and financial institutions. By working together more effectively, agents can provide comprehensive services to their clients, from property selection to financing options. For Policy Makers: Gujarat RERA 2.0 provides policy makers with detailed insights into the real estate market, enabling them to draft better policies and regulations. This ensures a balanced growth of the sector, addressing both development and consumer protection needs. 1. Data-Driven Decision Making: Gujarat RERA 2.0 offers comprehensive data analytics capabilities, providing policy makers with detailed insights into the real estate market. This data helps in understanding market trends, identifying potential issues, and formulating policies based on empirical evidence, leading to more effective and targeted interventions.

44 I. T. MIRROR 2. Improved Market Regulation: The enhanced monitoring tools allow policy makers to ensure better compliance with regulations. By tracking project progress and developer activities in real time, they can identify and address non-compliance issues promptly, ensuring a well-regulated and orderly market. 3. Enhanced Transparency and Accountability: With Gujarat RERA 2.0, policy makers can ensure greater transparency and accountability in the real estate sector. The platform's requirement for regular project updates and compliance reporting helps in maintaining a transparent environment, which is crucial for fostering trust among all stakeholders. 4. Efficient Resource Allocation: The detailed insights provided by the platform enable policy makers to allocate resources more efficiently. They can identify areas that require more attention and support, ensuring that regulatory and developmental efforts are directed where they are most needed. 5. Better Stakeholder Engagement: The platform facilitates improved communication and collaboration among various stakeholders, including developers, buyers, financial institutions, and real estate agents. This collaborative approach allows policy makers to understand the concerns and needs of different groups and address them more effectively. 6. Streamlined Policy Implementation: Gujarat RERA 2.0 simplifies the implementation of new policies by providing a clear and consistent framework. Policy changes can be communicated and enforced more effectively, ensuring that all stakeholders are aware of and comply with new regulations. 7. Promoting Sustainable Development: The platform supports the formulation and implementation of policies that promote sustainable development practices. By tracking and analyzing project data, policy makers can encourage environmentally friendly and socially responsible real estate development. 8. Enhanced Public Trust: The increased transparency and accountability fostered by Gujarat RERA 2.0 help in building public trust in the regulatory framework. When buyers, developers, and other stakeholders see that the market is well-regulated and fair, it boosts confidence and encourages greater participation in the real estate sector. CONCLUSION Gujarat RERA 2.0 is a significant advancement in the real estate regulatory framework, promising numerous benefits for all stakeholders involved. By enhancing transparency, accountability, and efficiency, it paves the way for a more robust and trustworthy real estate market in Gujarat. Developers, authorities, buyers, and other stakeholders stand to gain immensely from this progressive initiative, ensuring sustainable growth and development of the sector.

Glimpses of 77th Annual General Meeting

Glimpses of 77th Annual General Meeting