MM TAX CLUB

.    Grievances are raised by taxpayers regarding difficulties faced while filing the waiver applications. Following grievances faced by taxpayers have come to the notice of GSTN and team is working to resolve the issues at the earliest.

     i.    Order number is not available in dropdown for selection in SPL 02.

     ii.   Order details are not getting auto populated after selection of a particular order in SPL 02.

     iii.   Payment details are not getting auto populated in Table 4 of SPL 02.

     iv.   After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards Demand” for that order. Also, taxpayer is not able to adjust the amount paid through DRC 03, against the same demand order, using DRC 03A.

     v.   Not able to withdraw the Appeal applications (APL 01) filed before First Appellate authority against a particular order.

2.    It is learned that there is a misconception among the trade that the last date to file waiver application is 31.03.2025. In this regard, it may be noted that the last date to file waiver applications is not 31.03.2025. As per Rule 164(6) of CGST Rules, 2017, the taxpayers have to file waiver applications within a period of three months from the notified date. Therefore, the taxpayers can file waiver applications in SPL 01/02 till 30.06.2025.

3.   However, as per Notification 21/2024-CT dated 8.10.2024, the due date for payment of tax payable for availing wavier scheme is 31.03.2025. Therefore, the taxpayers are advised to pay the requisite amount within due date using "Payment Towards Demand" functionality in GST portal.

4.   In case any difficulty is faced in using the said functionality, then the taxpayers are advised to make a Voluntary Payment using Form DRC-03 under category ‘Others’. After completing the payment, they can submit the Form DRC-03A to link the payment made in DRC-03 with the relevant demand order.

5.    If Payment details are not auto populated in Table 4 of SPL 02, it is advised to verify the same in electronic liability ledger on GST portal. Then the taxpayer can proceed for filing waiver application. The navigation path to access the electronic liability ledger is Login>> Services>> Ledgers>> Electronic Liability Register

        Taxpayers are advised to make the payment on or before 31.03.2025 and file the waiver application on or before 30.06.2025. For any other issues faced, the taxpayers are advised to raise grievance ticket immediately so that issue can be resolved.

The GST registration process in Uttar Pradesh has undergone a significant update with the introduction of biometric-based Aadhaar authentication and document verification. Taxpayers applying for GST registration should take note of the following important changes and guidelines:

Key Updates to GST Registration Process

1. Amendment to Rule 8 of CGST Rules, 2017

   • Applicants can now be identified based on data analysis and risk parameters for biometric-based Aadhaar authentication.

   • This process includes capturing the applicant’s photograph and verifying the original copies of the documents uploaded with the application.

2. Implementation Timeline

   • This functionality has been developed by GSTN and has been officially rolled out in Uttar Pradesh on March 15, 2025.

3. Authentication & Verification Process

   • Once an applicant submits the GST registration application (Form GST REG-01), they will receive an e-mail containing either:

     • (a) A link for OTP-based Aadhaar Authentication, or

     • (b) A link for booking an appointment to visit a GST Suvidha Kendra (GSK) for biometric authentication and document verification.

4. Next Steps for Applicants

   • If the OTP-based Aadhaar Authentication link is received, the applicant can proceed with the standard registration process.

   • If an appointment booking link is received, the applicant must schedule an appointment at the designated GSK.

5. Appointment Booking Process

   • Appointment booking for biometric verification and document verification at GSKs is available for Uttar Pradesh applicants starting from March 18, 2025.

   • After booking, a confirmation e-mail will be sent containing the details of the appointment.

6. Documents Required for Verification at GSK

   • A copy (hard/soft) of the appointment confirmation e-mail

   • Jurisdiction details as mentioned in the intimation e-mail

   • Original Aadhaar Card and PAN Card

   • Original copies of all documents uploaded during the application

7. Biometric Authentication at GSK

   • The biometric authentication and document verification will be conducted for all individuals required as per GST Form REG-01.

   • The applicant must complete the biometric verification within the permissible period mentioned in the intimation e-mail.

   • The Application Reference Number (ARN) will be generated after successful authentication and verification.

8. Operating Hours of GSKs

   • The working days and hours of GSKs will be governed by the administration’s guidelines in the state.

Conclusion

This enhancement aims to streamline the GST registration process by integrating biometric verification for improved accuracy and security. Applicants should ensure they carefully follow the updated process to avoid delays. Stay informed and prepared for a seamless GST registration experience in Uttar Pradesh!

For any further queries, applicants can refer to the official GST portal or contact their jurisdictional officer.

Recently Goods and Service Tax Network (GSTN) issued advisory making it mandatory to opt for Biometric Authentication for obatining GST Registration, Now GSTN with advisory dated 3rd March 2025 relaxes this provision for the director of the companies that they can opt for Biometric Authentication in Their Home State.

Here is the GSTN Advisory;

Dear Taxpayers,

You may be aware that new GST registration applicants who opt for Aadhaar authentication are required to undergo the process either through OTP verification or Biometric Authentication at a designated GST Suvidha Kendra (GSK), based on system-driven data analysis. To facilitate a seamless process, GSTN provides a slot booking facility, with the link shared in the intimation email sent to the applicant.

As per the existing system, applicants selected for Biometric Authentication must visit the designated GSK mapped to their jurisdiction. However, GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State.

This facility applies to individuals listed in the Promoter/Partner tab for the following types of businesses:

   • Public Limited Company

   • Private Limited Company

   • Unlimited Company

   • Foreign Company

Under this enhancement, such Promoters/Directors can now choose any available GSK within their Home State in India (as per REG-01) for Biometric Authentication.

Key Points to Note:

   1. If a new registration application is selected for Biometric Authentication, an intimation email will be sent to the applicant. Eligible Promoters/Directors will be given the option to select any GSK in their Home State through this email.

   2. To avail of this option, such Promoter/Director must follow the instructions provided in the intimation email and select a GSK within their home state.

   3. The selection of a GSK in the Home State is a one-time facility and cannot be changed once selected. Promoters/Directors are advised to choose their GSK carefully.

   4. This facility is currently available in 33 States/UTs where Biometric Authentication has been enabled. It will soon be extended to the remaining three states: Uttar Pradesh, Assam, and Sikkim. Such Promoters/Directors whose Home State is other than Uttar Pradesh, Assam, or Sikkim can opt for any GSK in their Home State.

   5. Upon selection of a Home-State GSK, the Promoter/Director will receive an email confirmation, along with a new slot booking link.

   6. Using the provided link, the Promoter/Director can book a slot at their convenience, subject to availability at the chosen GSK.

   7. The required photo capture and Biometric Authentication process will be completed at the selected GSK in the Home State.

   8. If a Promoter/Director has already completed the biometric process, they will not be required to undergo it again.

   9. If the Promoter/Director and the Primary Authorized Signatory (PAS) are the same person, the Home-State GSK selection option will not be available. The PAS must visit the designated jurisdictional GSK for the required process, including document verification.

   10. To ensure a smooth process, it is advised that the Promoter/Director completes Biometric Authentication before the Primary Authorized Signatory visits the GSK.

   11. Opting for Biometric Authentication at a GSK in the home state is not mandatory. Promoters/Directors can visit their designated jurisdictional GSK if preferred.

Taxpayers are requested to follow this advisory for the smooth processing of their GST registration applications.

The Enforcement Directorate (ED) has launched a sweeping crackdown on cryptocurrency-related fraud, conducting raids across Delhi, Jaipur, and Mumbai under the Foreign Exchange Management Act (FEMA). The operation targets a massive scam involving illicit crypto conversions worth approximately ₹600 crore.

The Investigation Unfolds

The ED’s probe was triggered by a report detailing the fraudulent activities of Chirag Tomar, an Indian national currently serving a prison sentence in the United States for orchestrating a cryptocurrency scam that defrauded victims of over $20 million (₹144 crore). Tomar and his associates set up spoofed websites that closely resembled legitimate cryptocurrency exchanges, such as Coinbase, to trick users into sharing their login credentials.

How the Scam Worked

Using advanced SEO techniques, the fraudulent websites were pushed to the top of search engine results, making them appear authentic to unsuspecting investors. Once users entered their credentials, the scammers displayed fake account balances and urged them to call a fraudulent customer support number—leading directly to a scam call center operated by Tomar’s network.

With access to victims’ cryptocurrency wallets, the fraudsters swiftly transferred the funds to their own wallets. These stolen assets were then sold on platforms like LocalBitcoins.com and converted into Indian Rupees via local cryptocurrency exchanges.

Money Trail and Seizures

The ED’s investigation has so far uncovered that at least ₹15 crore of the scam proceeds were transferred to bank accounts belonging to Chirag Tomar and his family members. Authorities have frozen multiple bank accounts linked to Tomar’s network, with ₹2.18 crore seized to date.

Additionally, the agency has identified further instances of cryptocurrency fraud involving questionable crypto sales on LocalBitcoins.com and INR conversions through Indian crypto platforms. This points to a larger network of cybercriminals leveraging digital currencies for illicit financial activities.

What’s Next?

The ED continues to probe deeper into the case, with further legal action and potential asset seizures expected in the coming days. As cryptocurrency fraud remains a growing concern, authorities are ramping up efforts to track and dismantle such networks operating within India and beyond.

Stay tuned for updates on this high-stakes investigation as the ED tightens its grip on financial cybercrime in the crypto space.

The Income Tax Department has launched an online self-help tool designed to help taxpayers navigate the changes proposed in the Income Tax Bill 2025. This tool, available on the official website of the Income Tax Department, allows users to compare provisions from the current Income Tax Act, 1961, with the newly proposed legislation.

How the Self-Help Tool Works

The tool provides a simple interface where taxpayers can select specific sections from the existing Income Tax Act via a dropdown menu. Once a section is chosen, the corresponding clause from the new Income Tax Bill 2025 is displayed alongside it. Additionally, the tool offers a tabular comparison format to enhance clarity and ease of understanding.

Announcing the tool’s activation, the Income Tax Department stated in a post on X: “The utility for comparing sections of the Income Tax Act, 1961, with the corresponding clauses of the new Income Tax Bill has been activated.”

Additionally, the department has introduced a utility to check sections of the Income-tax Act, 1961 (as amended by Finance (No. 2) Act, 2024) vis-a-vis corresponding clauses of the Income-tax Bill, 2025. This feature aims to further assist taxpayers in understanding the direct impact of legislative amendments and ensure a seamless transition to the new tax framework.

Key Highlights of the Income Tax Bill 2025

The Income Tax Bill 2025 was introduced in the Lok Sabha on February 13, 2025, with the objective of simplifying the complex Income Tax Act of 1961. Over the years, the existing Act has undergone multiple modifications, primarily through annual updates in the Union Budget. The new Bill aims to provide a streamlined and modern tax framework.

1. Significant Reduction in Word Count and Complexity

• The new Bill has been significantly simplified, reducing its word count from 5.12 lakh words in the current Income Tax Act to just 2.6 lakh words.

• The number of chapters has been reduced from 47 to 23, while the sections have been condensed from 819 to 536.

2. Introduction of ‘Tax Year’ Instead of ‘Assessment Year’ and ‘Previous Year’

A key terminology change in the new Bill is the replacement of ‘assessment year’ and ‘previous year’ with ‘tax year,’ which represents the 12-month period starting from April 1. This change aims to eliminate confusion and make tax compliance easier for taxpayers.

3. Enhanced Readability and Simplification of Legal Language

• Traditional legal jargon has been replaced with simpler, more comprehensible terminology.

• Sections covering multiple scenarios are now listed in an enumerative format.

• The use of tables has been expanded, making tax provisions easier to understand. For example, TDS provisions are now presented in a structured tabular format.

• Section 10, which previously contained nearly 150 clauses, has been moved to Schedules and reformatted into tables for better clarity.

Conclusion

The introduction of the Income Tax Bill 2025 marks a major step toward simplifying tax compliance for individuals and businesses alike. By launching an intuitive self-help tool, the Income Tax Department is empowering taxpayers with instant access to crucial information, ensuring a smooth transition to the new tax framework. Taxpayers are encouraged to explore this tool to understand how the proposed changes impact them and to stay updated with the latest tax regulations.