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Extension of GSTR-1 Filing Deadline by GSTN

editor — Fri, 12 Apr 2024 05:54:47 +0000

An advisory issued by GSTN, Advisory No. 631 dated April 11, 2024, acknowledges the challenges faced by taxpayers in intermittently filing GSTR-1 due to technical glitches on the portal. To address this issue, GSTN has recommended to CBIC the extension of the deadline for monthly taxpayers to file GSTR-1 by one day, until April 12, 2024.

The full advisory is available at: GSTN Advisory No. 631

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Extension of Appeal Filing Time by the Appellate Authority

editor — Fri, 12 Apr 2024 05:00:41 +0000

Introduction:

The authority of the Appellate Authority to extend the period for filing an appeal was deliberated upon in the case of Jyanata Ghosh v. State of West Bengal by the Hon’ble Calcutta High Court.

Facts of the Case:

Mr. Jyanata Ghosh, referred to as the Petitioner, received a Show Cause Notice (SCN) which lacked essential details regarding personal hearing.
Following the SCN, an Order was issued on August 11, 2023, under Section 74 of the Central Goods and Services Tax Act, 2017, demanding a significant sum from the Petitioner for a specified period.
The issuance of this order violated principles of natural justice as it did not grant the Petitioner an opportunity for personal hearing.
Challenging this order, the Petitioner appealed before the Appellate Authority under Section 107 of the CGST Act, only to have the appeal dismissed on the grounds of limitation.

Issue:

Whether the Appellate Authority possesses the jurisdiction to extend the period for filing an appeal.

Held:

The Hon’ble Calcutta High Court directed that the Appellate Authority should have granted the Petitioner a personal hearing and decided the appeal on its merits, emphasizing the violation of the principle of natural justice.
The court cited precedents such as Murtaza B Kaukawala v. State of West Bengal and S.K. Chakraborty & Sons v. Union of India, highlighting that delay can be condoned if the principles of natural justice are violated.
It was further noted that the prescribed period for filing an appeal, initially set at 30 days, can be extended by the Appellate Authority, as mandated by Section 5 of the Limitation Act, 1963.
Consequently, the court condoned the delay in filing the appeal and allowed the writ petition by setting aside the impugned order dated January 17, 2024. Additionally, it ordered a stay on the recovery proceedings pending the disposal of the appeal case, upon the Petitioner’s deposit of the pre-deposit amount, thereby disposing of the writ petition in favor of the Petitioner.

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Extension of Peer Review Mandate for CA Firms in Phase II & III

editor — Mon, 18 Mar 2024 10:01:54 +0000

Revised Guidelines on ICAI Peer Review Mandate

The Institute of Chartered Accountants of India (ICAI) has extended the applicability of the Peer Review Mandate for Chartered Accountant (CA) firms covered under Phase II & III. This revision aims to ensure adherence to enhanced quality standards within the profession.

Understanding Peer Review:

Peer review involves the assessment of a professional’s work by another professional of similar standing. It encompasses the examination of systems and procedures implemented by the Practice Unit (PU) to ensure quality assurance, as per technical, ethical, and professional standards. However, it does not focus on identifying isolated engagement failures.

Applicability in India:

Since 2017, peer review has been mandatory for all practicing Chartered Accountants and firms in India. Newly constituted firms, operating for less than one year, can undergo peer review voluntarily if the member (proprietor/partner) possesses a minimum of five years of post-qualification experience with a full-time Certificate of Practice (COP).

Revised Applicability (Phase II & III):

In response to requests from Practice Units, ICAI has outlined the following extensions in the applicability of the Peer Review Mandate:

Phase II:

Practice Units intending to conduct statutory audits for unlisted public companies meeting specific criteria, such as high paid-up capital, turnover, or outstanding loans, now require a Peer Review Certificate.
Similarly, Practice Units offering attestation services and employing five or more partners must possess a Peer Review Certificate before undertaking statutory audits.
This mandate is effective from July 1, 2024, with a grace period until June 30, 2024.

Phase III:

Practice Units engaged in statutory audits for entities that raised substantial funds from public sources or financial institutions during the review period must obtain a Peer Review Certificate.
Additionally, Practice Units with four or more partners providing attestation services are required to hold a Peer Review Certificate before accepting statutory audit engagements.
This requirement has been in place since January 1, 2015.

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Extension of Deadline for Trusts/Institutions to Rectify Audit Report Submissions for Tax Exemption

editor — Wed, 06 Mar 2024 04:43:05 +0000

Circular No. 02/2024, issued by the CBDT on March 05, 2024, grants an extension to trusts and institutions that submitted incorrect audit report forms for the assessment year (A.Y.) 2023-24. They are allowed to rectify their submissions by March 31, 2024, especially those needing to switch between Form No. 10B and Form No. 10BB to maintain their tax exemption status.

Eligibility Criteria for Tax Exemption:

The Income-tax Act, 1961, provides tax exemption for income earned by various entities such as funds, educational institutions, hospitals, etc., subject to fulfilling certain conditions.

Prescribed Forms for Audit Report:

Forms for audit reports, namely Form No. 10B and Form No. 10BB, were introduced via Notification No. 7 of 2023, effective from April 01, 2023, for assessment year 2023-24 and onwards.

Changes in Forms for A.Y. 2023-24:

A.Y. 2023-24 saw the implementation of the new forms, marking the first year of their effectiveness.

Rectification of Incorrect Submissions:

The CBDT allows trusts/institutions that erroneously submitted Form No. 10B instead of Form No. 10BB, or vice versa, for A.Y. 2023-24, to rectify their submissions by March 31, 2024. Failure to adhere to the prescribed form may result in denial of tax exemption.

Source: https://incometaxindia.gov.in/communications/circular/circular-no-2-2024.pdf

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