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12 cases of GST evasion of Rs. 344.57 crore detected and Rs. 621.56 crore recovered against lottery distributors between July, 2017 to November 2023
December 12th, 2023
Posted By: Team-MMTaxClub

A reference was received from Ministry of Home Affairs (MHA) for comments regarding disbursement of prize amount of lotteries through formal banking channel and comments in this regard have been sent to MHA. This was stated by Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

Elucidating further, the Minister stated that using formal banking channel for any kind of transaction, including disbursement of lottery prize, is helpful in mitigating the associated money laundering/terrorist financing / proliferation funding risks in view of the robust banking system and effective regulation/supervision of the regulated entities.

In reference to the Section 194B of the Income-tax Act, 1961 (‘the Act’), the Minister stated that the person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, being the amount or the aggregate of amounts exceeding ten thousand rupees during the financial year shall, at the time of payment, deduct income-tax at the rates in force.

The Minister further stated that vide Finance Act 2023, the rate in force is 30%. This also includes winnings in kind or partly in cash and partly in kind. It is substantively charged to tax at the rate of 30% under section 115BB of the Act and no deduction on the winnings is allowed.

On the question of tax evasion by lottery distributors, the Minister stated that the Income Tax Department takes appropriate action in cases involving evasion of tax whenever any credible information/intelligence of violation of provisions of Direct Tax Laws relating to any taxpayer comes to its notice. Such action under Direct Tax laws includes conducting enquiries, mounting search and seizure or survey action, assessment and consequential actions thereto, wherever applicable as per the provisions of the Act. Twelve (12) cases involving GST evasion of Rs. 344.57 crore have been detected against lottery distributors and Rs. 621.56 crore (including interest and penalty) has been recovered/ realised from July, 2017 to till November 2023.

DFS Secretary Dr. Vivek Joshi chairs meeting to review progress made in financial fraud cases
December 8th, 2023
Posted By: Team-MMTaxClub

Dr Vivek Joshi, Secretary, Department of Financial Services (DFS), Ministry of Finance, chaired meeting today to review fraud cases of banking sector. The meeting was attended by senior officers of Central Bureau of Investigation (CBI), Chief Vigilance Officers (CVOs) of Public Sector Banks (PSBs) and Financial Institutions (FIs), and officers from DFS.

 

During the review meeting the progress made in investigation and resolution of large value fraud cases was comprehensively assessed. The review meeting involved assessment from both, the perspective of recovery and enforcement action.

During the review meeting, it was emphasised that all measures should be taken to further improve coordination between CBI and banks for expeditious investigation. And towards this objective, suggestions were also invited for making systematic improvements.

Following issues were discussed during the meeting:

CBIC Exempts Imports of Yellow Peas [HS Code 0713 10 10] from Applicable BCD and AIDC up to March 31, 2024
December 8th, 2023
Posted By: Team-MMTaxClub

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with section 124 of the Finance Act, 2021 (13 of 2021), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table below, falling under the tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the ‘Customs Tariff Act’), specified in the corresponding entry in column (2) of the  said  Table,  when  imported  into  India,  from  the  whole  of  the duty  of  customs  leviable  thereon  under  the  First Schedule  to  the  Customs  Tariff  Act  and  from  the  whole  of  the  Agriculture  Infrastructure  and  Development  Cess leviable thereon under the said section of the Finance Act, 2021(13 of 2021), namely:

 

Sl. No.

Tariff item

Description of goods

(1)

(2)

(3)

1.

0713 10 10

Yellow Peas

 

2.This notification shall come into force with  effect from the 8thday of December, 2023, and shall remain in force up to and inclusive of the 31stday of March, 2024.

 

[F. No. CBIC-190354/241/2023-TO (TRU-I)]

Source

Centre extends date of inviting fresh applications under PLI Scheme Textiles upto 31st December 2023
December 7th, 2023
Posted By: Team-MMTaxClub

India has a considerable share of manmade fibre (MMF) products (fibre, yarn, fabrics, made-ups, readymade garments of MMF) in the total Textiles & Apparel (incl. handicrafts) exports.

Under the PLI Scheme for Textiles focusing on MMF Apparel, MMF Fabrics & Technical Textiles, 64 selected applicants are expected to set up 84 units in 14 states and 1 UT including one in Odisha & 10 in Maharashtra.

The Government has extended the date of inviting fresh applications through online portal under PLI Scheme for Textiles upto 31st December 2023 and applications are currently being received.

The industry is gearing up to tap the potential of MMF and Technical Textiles segment, which is a sunrise industry segment in the country duly supported by PLI Scheme for Textiles and National Technical Textiles Mission.

This information was given by the Union Minister of State for Textiles, Smt. Darshana Jardosh in a written reply today in the Lok Sabha

Source

Why DRC -01C Error coming Again? Is it will continue to be every month?
December 5th, 2023
Posted By: Team-MMTaxClub

GSTN implemented From DRC-01C in month of September 2023 under Rule 88D of CGST Rules.

Form DRC-01C Implemented to deal with mismatches between ITC claimed in form GSTR-3B and input Tax credit (ITC) available in auto generated report Form GSTR-2B. If a taxpayer claimed excess tax credit by a prescribed percentage than what Input tax  credit available In form GSTR-2B a system generated auto intimation will be sent to the taxpayer in part-A of Form DRC-01C and taxpayer need to reply that intimation within 7 days in part-B of form DRC-01C.

[Full Procedure for filling DRC-01C can accessed from this link]

Since form DRC-01C implemented in month of September 2023, System starts checking on compliance of Form DRC-01C from return period October 2023. When taxpayer starts filling of GSTR-1 for the period October -2023, an error message was getting populated that “system checking on compliance of Form DRC-01C Please try filling you return in sometime” Many grievances had been lodged in this regard but the error was gone off automatically after first week of November 2023 and the taxpayer who had no differences in form GSTR-3B and GSTR-2B was allowed to file their return. Why this error was occurring last month because this was the first month of Implementation of form DRC-01C, So system was not ready to analyze every taxpayers Return and to issue Intimation, So due to this system glitches all Taxpayer Return were kept on hold for filing GSTR-1 Return.

Since this was the first month, taxpayers expecting this error will not repeat in upcoming month.

But many taxpayers are facing the same issue while filling GSTR-1 for the month of November-2023.

“System is checking on form DRC-01C Compliance, please try filing Return in some”

So the Question is arising whether taxpayers has to face same issue every month and have to follow up with the Department to resolve the glitches. 

As per the FAQ issued by the Department on filling form DRC-01C, the intimation regarding differences of ITC will be sent to the taxpayers after filling of the form GSTR-3B of respective month or quarter.

So the practically system have at least 10 days for issuing  intimation for mismatch in ITC, in that case there is no need to keep taxpayer on hold from 1st day of month for filing GST Return.

Since provision itself says form DRC-01C intimation will be issued after filling of form GSTR-3B so we can expect DRC-01C error will not repeat in upcoming Returns, and system will be able issue intimation to the concerned taxpayer on or before end of the month.

If error appearing to the taxpayers while filling Nov-2023 return this is only happening because of the system glitches. The taxpayers can raise ticket in this regard on GST portal and wait for some time, if there no mismatches in ITC , this error will go off automatically and the taxpayer will be able to file their return.