1st April 2K21
Ø Govt extends current foreign trade policy till September
Ø Government mops up Rs 32,835 crore from disinvestment in FY21, exceeds RE target
Ø Non-food bank credit offtake slows to 6.5% in February
Ø India records current account deficit of 0.2% in December quarter
Ø Govt decides not to offer soft loans under SDF to sugar mills for a year
Ø Printing of QR code on B2C invoices deferred till July 1
Ø Govt to infuse Rs 14,500 crore in 4 banks, issue recapitalisation bonds
Ø Benchmark indices end FY21 with a gain of 70%, most since 2009-10
Ø Govt cuts interest rates on small savings schemes effective from April 1
Ø Govt to borrow Rs 7.24 trn, or 60% of planned amount, till September
Ø Gas price for ONGC remains at decade low of $1.79, falls 11% for RIL-BP
Ø RBI extends deadline for processing auto-debit payments by 6 months
Ø Indraprastha Gas signs 10-year supply pact with DTC
Ø Labour Codes implementation to be delayed further
Ø Vedanta looking to partner with govts to set up copper-smelter complex worth ₹10,000 cr
Ø Shapoorji Pallonji Group's ₹10,900 cr one-time debt recast plan gets lenders nod
Ø M&M's Japan subsidiary collaborates with Kubota
Ø Piramal Pharma Solutions acquires Hemmo Phama
Ø RBI orders forensic audit of Mobikwik systems after data breach allegations
Ø India extends import duty exemption for export enclaves by another year
Ø Apple’s manufacturing partners pledge to use 100% renewable energy
Ø Sterling & Wilson Solar promoter Daduvala offloads 5% stake worth ₹200 crore
Ø Govt to borrow $99bn in 1st half of next fiscal year: Economic Affairs Secretary
Ø Govt keeps domestic natural gas price unchanged at $1.79/mmBtu
Ø Indian Railways freight loading in FY21 surpasses FY20-level
Ø 6-digit HSN code mandatory in invoices for biz with over Rs 5crore turnover
Ø Germany halts AstraZeneca jabs for under-60s over clot risks
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E-KNOWLEDGE CAPSULE✒ SC held that Even if an application under section 8 of the Arbitration Act, 1996 is filed, the Adjudicating Authority has a duty to advert to contentions put forth on the application filed under Section 7 of IBC, examine the material placed before it by the financial creditor and record a satisfaction as to whether there is default or not.
✒ Delhi High Court held that Heinous crimes like rape cannot be quashed by High Court under Section 482 CrPC even if parties reach a compromise.
✒ Madras High Court grants anticipatory bail to man accused of attempting to murder lawyer for failing to send legal notice on time.
✒ Madras High Court held that Reservation of constituencies should continue till Scheduled Caste candidates are fielded and win in general constituencies.
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.🗣️ Important Update
✔️ PPF, NSC, other *small savings schemes interest rate cut _withdrawn_
👉🏻 Government on Wednesday (yesterday, on 31st March) had slashed PPF rate to 6.4% from 7.1% and the rate on National Savings Certificates (NSCs) was reduced to 5.9% from 6.8%
👉🏻 Finance Minister Nirmala Sitharaman on Thursday (Today, on 1st April) said the government has withdrawn Wednesday's order which announced steep interest rate cut on small saving schemes such as PPF and NSC - saying it was an oversight.
👉🏻 "Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn"
~ a tweet from Finance Minister Nirmala Sitharaman.
👉🏻 Once restored, PPF and NSC will carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively.
One-year term deposit scheme to earn a higher interest rate of 5.5 per cent during the first quarter of the current fiscal while the girl child savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent as against reduced rate of 6.9 per cent.
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GST Updates 01.04.2021
✅Requirement of HSN/SAC for Goods and Services on B2B Tax Invoices is mandatory w.e.f. 01.04.21.
✅Link to access HSN Code/Service Accounting Code:
Goods 👉 https://t.co/uaAMIrfLVV
Services 👉 https://t.co/rmdg3L56jb
Services 👉 https://t.co/zIybVE9iHL
✅Generate E-invoice for B2B supply(AT>50©®) is mandatory w.e.f. 01.04.2021.
✅Gujarat HC directs GST Authority to open Online portal to enable submission of rectified Form GST TRAN-2 electronically.
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Important Action points in GST for FY 2020-21/2021-22
1. Unique Invoice Serial Number
Ensure to have a unique invoice serial number (not necessary that it should be start from 1 only) to be started from 1 April 2021. You may create multiple series as per your convenience [Rule 46(b)].
2. HSN code requirements
With effect from 1st April 2021 the requirement of mentioning HSN Code is as follows:
1. Aggregate turnover up to 5 Cr - Min 4 digits on all B2B supplies. (Optional for B2C supplies)
2. Aggregate turnover above Rs 5 Cr - 6 digits
3. For Exporters and few notified goods - 8 digits
3. E- Invoicing
Registered Person having Aggregate turnover in any of the preceding FY above Rs.50 crores, are required to generate e-invoicing. As per Rule 48(5), if e-Invoice is not issued then it would be treated that no invoice has been issued. Also recipient will not be entitled to take ITC.
4. QR Code for B2C
QR code on B2C supplies by Registered Person having aggregate turnover above 500 crores is required to be printed from 1st April 2021. If the same is not complied with from 1st April 2021, they will be liable for penalty on all B2C supply wef 1st December 2020.
5. Opt in for Composition Scheme
The eligible taxpayers, who wish to avail the composition scheme from FY 2021-22 may opt in for composition by filing form GST CMP 02 through the common portal latest by 31st March, 2021.
6. Letter of Undertaking in RFD-11
The LUT in RFD-11 as per Rule 96A, need to be furnished for FY 2021-22 on or before zero rated supply so that the supply don’t get stuck at the last moment.
7. GST Refund
All the categories of GST Refund which are having the *relevant date* in March 2019 RFD-01, to be filled by 31.03.2021.
8. QRMP Scheme
To opt-in or opt- out of the QRMP Scheme for the first quarter of FY 2021-22 i.e., from April 1, 2021 to June 30, 2021 registered person can do the same by 30th April, 2021.
9. Year End Reconciliations
A) GSTR 1 with GSTR 3B - in case there is 3B turnover is less, identify it and pay tax with interest @18% and vice versa if GSTR 3B turnover is more, then amend the Tax Invoice / Bill of Supply / Debit Note / Credit Note and if extra taxes paid, the same to be adjusted in subsequent GST Returns.
B) Reconciliation of GSTR 1/3B Sales with Financial Statements:
C) Reconciliation of E Way Bills with GSTR 1 and further with GSTR 3B
D) GSTR 3B ITC with purchases register
In case, ITC taken in 3B is more than the actual purchase invoices, the same need to be reversed and vice versa if ITC is less than the eligible purchase invoices, the same need to be claimed immediately but not later than September 2021.
E) GSTR 3B ITC with GSTR 2A/2B
Registered Person have to compare the ITC taken in GSTR 3B with GSTR 2A / GSTR 2B (as the case may be) for F.Y. 2020-21 and if ITC taken in GSTR 3B in excess of GSTR 2A then the same need to reversed or follow up to be taken with supplier for uploading the invoices / Debit Note in GSTR 1 by Sep 2021.
10. Reversal of ITC as per Rule 42/43
In case there is an exempt supply as well as taxable supply (including Zero Rated Supply) then portion of common ITC need to be reversed as per Rule 42/43. This exercise to be done on every month and after then end of FY till Sep 2021.
11. GST Payment under Reverse Charge
Ensure to check the books of account and also GSTR 2A and check the applicability of Reverse Charge Mechanism. If it is applicable and not yet paid then the same need to be pay now along with Interest (Considering Time of Supply for Reverse Charge) and take the ITC in the GSTR 3B for March 2021 itself.
12. ITC-04 for Job Work Movements
In case there is movement of goods to Job worker then please ensure that ITC-04 has been filled as per the due date. If not then ensure to comply the same by March 2021.
13. Document Issued
Registered Person need to check that all document as required by Sec 31 has been issued (Like Delivery Challan, Revised Invoice, Payment Voucher, Self Invoice and Receipt Voucher). Also if issued then also check whether numbering has been reported in GSTR 1, if not then report all such missing documents in GSTR 1 for March 2021.
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🔰 Extension of exemption from IGST and Compensation Cess upto March 31, 2022 on goods imported against AA/EPCG authorizations
📍 The CBIC vide Notification No. 23/2021- Customs, dated March 31, 2021 has extended the exemption from the Integrated Tax and the Goods and Services Tax Compensation Cess ( “Compensation Cess”) leviable on goods imported as per sub-section (7) and sub-section (9) of Section 3 of the Customs Tariff Act, 1975 against Export Promotion Capital Goods ( “EPCG”) Authorization and Advance Authorisation ( “AA” ) under the Foreign Trade Policy 2015-20 ( “FTP” ) by issuing the amendments in the below mentioned notifications.
The Notification can be accessed at: http://www.a2ztaxcorp.com/extension-of-exemption-from-igst-and-compensation-cess-upto-march-31-2022-on-goods-imported-against-aa-epcg-authorizations/
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👉 Filing GSTR-1 (Q) for Jan-Mar 2021 under QRMP Scheme
https://www.gst.gov.in/newsandupdates/read/459
👉 Announcement providing Temporary Exceptions to Hedge Accounting prescribed under Guidance Note on Accounting for Derivative Contracts due to Interest Rate Benchmark Reform - (31-03-2021)
https://resource.cdn.icai.org/64270asb51536.pdf
👉 Announcement for Criteria for classification of Non-company entities for applicability of Accounting Standards - (31-03-2021)
https://resource.cdn.icai.org/64269asb51535.pdf
👉 Auditing and Assurance Standards Board - Online Panel of Experts for Addressing Bank Branch Audit Related Queries for Financial Year 2020-21 - (31-03-2021)
https://www.icai.org/post/aasb-online-panel-of-experts-for-addressing-bank-branch-audit
👉 Meeting Schedule of the Monetary Policy Committee for 2021-2022
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51350
👉 Developments in India’s Balance of Payments during the Third Quarter (October-December) of 2020-21
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51356
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🔰 *₹1,23,902 crore gross GST revenue collected in the month of March, 2021
✅ The gross GST revenue collected in the month of March 2021 is at a record of ₹1,23,902 crore of which CGST is ₹22,973 crore, SGST is ₹29,329 crore, IGST is ₹62,842 crore (including ₹31,097 crore collected on import of goods) and Cess is ₹8,757 crore (including ₹935 crore collected on import of goods).
The Press Release can be accessed at: http://www.a2ztaxcorp.com/%e2%82%b9123902-crore-gross-gst-revenue-collected-in-the-month-of-march-2021/
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Mandatory wef 1.4.21. E-invoice for turnover 50-100 cr, Invoice with 6 digit HSN (4 digit for turnover upto 5 cr) & Accounting Software with Audit Trail for Co.
Due Date Extensions by CBDT: Last date for linking PAN with Aadhar extended from 31.3.2021 to 30.6.2021.
Last date for Issuing Reassessment Notice u/s 148 for AYs 13-14 to AY 2017-18 extended from 31.3.2021 to 30.4.2021.
Last date for passing of consequential Order for Direction given by Dispute Resolution Panel (DRP) extended from 31.3.2021 to 30.4.2021.
Last date for processing of Equslisation Levy Statements extended from 31.3.2021 to 30.4.2021.
GOI cuts small savings rates New rates effective for April-June 2021 A) PPF Cut to 6.4% from 7.1%
B) Sukanya Samriddhi Account Scheme Cut to 6.9% from 7.6%
All listed companies are required to submit Annual Secretarial compliance report in PDF mode along with the submission of the Annual Secretarial compliance report in XBRL mode.
CSR-1 for Registration of Entities for undertaking CSR activities shall be available for filing as eForm w.e.f 1st April 2021 Stakeholders may please take note and plan accordingly.
Calcutta High Court provides interim relief and stays commencement of audit of Indian bank till next date of hearing i.e. 07/04/2021.
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