Taxation Tables

Taxation Updates

Sr.No. Particular
1 Taxation of Shares & Mutual Funds
2 Applicability of Section 44AA / 44AB / 44AD of Income Tax Act, 1961-2022
3 Applicability of Section 44AA / 44AB / 44ADA of Income Tax Act, 1961-2022
4 Say NO to Cash Transactions
5 Section 194Q and Section 206C(1H) Applicability
6 Section 194Q and Section 206C(1H) Analysis
7 Accounting Entries For TCS u/s 206C(1H) & TDS u/s 194Q
8 Compliance Check for Section 206AB (TDS) & Section 206CCA (TCS)
9 Updated Return of Income (ITR U)
10 Taxation of Virtual Digital Asset (VDA)
11 GSTR 2A VS 2B
12 QRMP vs Non-QRMP
13 GST on Transportation of Goods by Road by
14 Intimation of payment made voluntarily or made against the show cause notice (DRC - 03)
15 Tax Evasion v/s Tax Planning v/s Tax Avoidance
16 GST Collection
 Taxation of Shares & Mutual Funds
Tax Payer
Taxation Updates Trader Investor

Equity Future & Options Equity Mutual Funds

Delivery Type Delivery Based Intraday Non-Delivery Based Equity Mutual Funds # Non Equity Mutual Funds (Debt)

Nature of Income Non-Speculative Speculative Non-Speculative STCG if Period of LTCG if Period of STCG if Period of LTCG if Period of STCG if Period of LTCG if Period of
Holding not more Holding more Holding not more Holding more Holding not more Holding more
Nature of Business Normal Speculative Normal than 12 Months than 12 Months than 12 Months than 12 Months than 36 Months than 36 Months

0 % upto 1 lakh after 0 % upto 1 lakh after

20 % with
Tax Rate Slab Rate Slab Rate Slab Rate 15 % that @ 10 % without 15 % that @ 10 % without Slab Rate
Indexation
indexation indexation

Loss c/f 8 Years 4 Years 8 Years 8 Years 8 Years 8 Years 8 Years 8 Years 8 Years

Turnover Limit for Audit

10 Crore 10 Crore 10 Crore If you are investor then audit is not applicable irrespective of the Amount of Sale Value during the Financial Year
Subject to 44AD $

No of Shares Sold * Sale
Turnover Calculation
price per Share
All Long Term Capital Gain upto 31/01/2018 was grandfathered by Finance Act 2018 and for such transaction cost will be
Aggregate sum of
Aggregate sum of Higher of 1.Cost of Acquisition and 2.Lower of i.FMV and ii.Sale Price (This Long Term Capital Gain to be Reported Scrip-wise in ITR)
absolute differences of
absolute differences of
positive and negative
positive and negative
amounts + Premium
amounts
received on Sale For STCG & LTCG If Shares are Acquird after 31/01/2018 then Scrip-wise reporting is Not Required

If You are Traders then Related Business Expenses are allowed as cost
Expenses allowed # A mutual fund is considered as equity-oriented if at least 65% of the investible funds are deployed into equity or shares of domestic companies.
(STT, Brokerage, other taxes, Salary, Rents, Depreciation, Utility Bills etc)

As per Section 73 Speculation Loss can be set off against Speculation Profit only As per Section 74 Long Term Capital Loss can be set off against Long Term Capital Gain only

Who you are ? Trader or Investor - As per Circular No.06/2016 It is to be decided at the Intention of Assessee irrespective of the period of holding & Stance once taken shall not be allowed to change in subsequent years

$ Section 44AB says Turnover Limit for Audit is 10 Crore for Digital Transactions (Share Market Transactions are 100% Digital so Turnover Limit for Audit is 10 Crore)
Section 44AD says If Turnover is upto 2 Crore and Profit is below 6 % and Total Income is above maximum amount which is not chargeable to income-tax, then audit is Required as per S.44AB (For Individual, HUF & Partnership Firm but Not LLP)
 Applicability of Section 44AA / 44AB / 44AD of Income Tax Act, 1961-2022
(For Individual or HUF or Partnership (Not LLP)) (Income from Business)
Taxation Updates
Particular Amount Amount Amount Amount Amount

Total sales, Turnover or gross receipts up to Rs.25 lakh♦ above Rs.25 lakh to Rs.1 crore above Rs.1 crore to Rs.2 crore above Rs.2 crore to Rs.10 crore above Rs.10 crore

44AA (Maintenance of accounts) Not Applicable Applicable Applicable Applicable Applicable

(As Turnover up to 25 lakh) (Not Applicable if opt for 44AD) (Not Applicable if opt for 44AD) (Mandatory Application) (Mandatory Application)

44AB (Audit of accounts) Not Applicable Not Applicable Applicable Applicable Applicable
(Not Applicable if opt for 44AD)
(Not Applicable if receipts &
or (Not Applicable if receipts &
(As Turnover below 1 crore) (As Turnover up to 1 crore) payments in cash * does not (Mandatory Application)
payments in cash * does not
exceed 5 %)
exceed 5 %)
44AD (Presumptive Business Income) Can opt Can opt Can opt Not Applicable Not Applicable
(If Profit is equal to or higher (If Profit is equal to or higher (If Profit is equal to or higher
(As Turnover exceeded 2 crore) (As Turnover exceeded 2 crore)
than 8% / 6% # ) than 8% / 6% #) than 8% / 6% #)

Assume For the purpose of 44AD Assessee is not earning commission income nor in agency business
♦ Section 44AA is Applicable if Turnover exceed Rs.10 Lakh in case of Partnership Firm
* The payment or receipt, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be in cash
# 6% if total turnover or gross receipts received by account payee cheque or account payee bank draft or use of ECS through a bank account or other electronic mode as may be prescribed during previous year
or on or before the due date specified u/s 139(1) (Rule 6ABBA prescribed other electronic mode as (a) Credit Card; (b) Debit Card; (c ) Net Banking; (d) IMPS; (e ) UPI; (f) RTGS; (g) NEFT; (h) BHIM)
Note 1: if Income from business exceed Rs.2,50,000 (Rs.1,20,000 in case of Partnership firm) then also S.44AA is applicable (S.44AA Not Applicable if opt for S.44AD)
Note 2 : Section 44AD not Applicable for the business of plying, hiring or leasing goods carriages referred to in Section 44AE
Note 3 : Only Resident Individual, Hindu undivided family or a Partnership firm (not LLP) can opt for Section 44AD

Applicability of Section 44AA / 44AB of Income Tax Act, 1961-2022

(For Other than Individual/HUF/Partnership Firm) (Income from Business)
Taxation Updates
Particular Amount Amount Amount Amount

Total sales, Turnover or gross receipts up to Rs.10 lakh above Rs.10 lakh to Rs.1 crore above Rs.1 crore to Rs.10 crore above Rs.10 crore

44AA (Maintenance of accounts) Not Applicable Applicable Applicable Applicable

(As Turnover up to 10 lakh) (Mandatory Application) (Mandatory Application) (Mandatory Application)
44AB (Audit of accounts) Not Applicable Not Applicable Applicable Applicable
(As Turnover below 1 crore) (As Turnover up to 1 crore) (Not Applicable if receipts & payments in cash * does not exceed 5%) (Mandatory Application)
* The payment or receipt, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be in cash
Note 1 : if Income from business exceed 1,20,000 then also S.44AA is applicable
 Applicability of Section 44AA / 44AB / 44ADA of Income Tax Act, 1961-2022
(For Individual or Partnership Firm (Not LLP)) (Income from Profession)
Assessee is engaged in legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy
or interior decoration

Taxation Updates
Particular Amount Amount

Gross Receipts up to Rs.50 lakh above Rs.50 lakh

44AA (Maintenance of accounts) Applicable Applicable

(Not Applicable if opt for 44ADA) (Mandatory Application)

44AB (Audit of accounts) Not Applicable Applicable

(Applicable if Profit below 50 % and Total Income Exceeds Basic
(Mandatory Application)
Exemption Limit)

44ADA (Presumptive Business Income) Can opt Not Applicable

(If Profit is equal to or higher than 50 %) (As Turnover exceeded 50 lakh)

Note 1 : Only Resident Individual or a Partnership firm (not LLP) engaged in profession specified u/s 44AA(1) can opt for Section 44ADA

Applicability of Section 44AA / 44AB of Income Tax Act, 1961-2022

(For Individual or HUF) (Income from Profession)
Assessee is NOT engaged in legal, medical, engineering or architectural profession or the profession of accountancy or technical
consultancy or interior decoration
Taxation Updates
Particular Amount Amount Amount

Gross Receipts up to Rs.25 lakh above Rs.25 lakh to Rs.50 lakh above Rs.50 lakh

44AA (Maintenance of accounts) Not Applicable Applicable Applicable

(As Gross Receipts up to 25 lakh) (Mandatory Application) (Mandatory Application)

44AB (Audit of accounts) Not Applicable Not Applicable Applicable

(As Gross Receipts below 50 lakh) (As Gross Receipts up to 50 lakh) (Mandatory Application)

Note 1: if Income from profession exceed Rs.2,50,000 then also S.44AA is applicable

Applicability of Section 44AA / 44AB of Income Tax Act, 1961-2022

(For other than Individual or HUF) (Income from Profession)
Assessee is NOT engaged in legal, medical, engineering or architectural profession or the profession of accountancy or technical
consultancy or interior decoration
Taxation Updates
Particular Amount Amount Amount

Gross Receipts up to Rs.10 lakh above Rs.10 lakh to Rs.50 lakh above Rs.50 lakh

44AA (Maintenance of accounts) Not Applicable Applicable Applicable

(As Gross Receipts up to 10 lakh) (Mandatory Application) (Mandatory Application)

44AB (Audit of accounts) Not Applicable Not Applicable Applicable

(As Gross Receipts below 50 lakh) (As Gross Receipts up to 50 lakh) (Mandatory Application)

Note 1: if Income from profession exceed Rs.1,20,000 then also S.44AA is applicable
 SAY NO TO CASH TRANSACTIONS
Taxation Updates

Section No. Particular Limits (Rs.) What if Limit Crossed

13A(d) Donation Received by Political Parties 2,000 Exemption Disallowed
35AD Deduction in respect of expenditure on specified business 10,000 Deduction Disallowed
Expenses or payments not deductible in certain circumstances 10,000 Deduction Disallowed
40A(3) Payment made for plying, hiring or leasing goods carriages 35,000 Deduction Disallowed
(Exception Rule 6DD)
43(1) Expenditure for Acquisition of any Asset 10,000 Not to be Included in Actual Cost (No Depreciation)
Deduction in respect of Health Insurance Premium NIL Deduction Disallowed
80D(2B)
(Exception Preventive Health Check-up)
80G(5D) Deduction in respect of donations to certain funds, charitable institutions 2,000 Deduction Disallowed
80GGA(2A) Deduction in respect of certain donations for scientific research or rural development 2,000 Deduction Disallowed
80GGB Deduction in respect of contributions given by companies to political parties NIL Deduction Disallowed
80GGC Deduction in respect of contributions given by any person to political parties NIL Deduction Disallowed
Mode of taking or accepting certain loans, deposits and specified sum 20,000 100 % Penalty As per S.271D
269SS (Specified sum means any sum of money receivable in relation to transfer of an immovable property)
(Exception if both are having agricultural income & neither of them has any taxable income)
269T Mode of repayment of certain loans or deposits. 20,000 100 % Penalty As per S.271E
Mode of undertaking transactions (Other Cash Transations) 2,00,000 100 % Penalty As per S.271DA
269ST
(Not applicable if transaction covered u/s 269SS)
Acceptance of payment through prescribed electronic modes NIL Per Day 5000 till such failure continuous S.271DB
269SU
(if Previous year Turnover is exceeding Rs.50 Crore)
1 Crore TDS @ 2 % if ITR Filed for 3 Preceeding Years
194N Cash withdrawal from Banks/Post Office 20 Lakh TDS @ 2 % if ITR Not Filed for 3 Preceeding Years
1 Crore TDS @ 5 % if ITR Not Filed for 3 Preceeding Years
Threshold Limit for Audit of Accounts increased to Rs.10 Crore if cash transactions do not exceed 5 % 10 Crore Liable for Audit u/s 44AB
44AB(a)
The payment or receipt, as the case may be, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be in cash
 TCS U/S 206C(1H) Applicability
During Financial Year 2021-22

Turnover upto Turnover exceed

Rs.10 crore Rs.10 crore

Section 206C(1H) Section 206C(1H)

Not Applicable Applicable

Receipts from Buyer for Sale of Goods

Upto Rs.50 lakh Exceed Rs.50 Lakh

TCS Not to be Collected 194Q Applicable to Buyer

YES NO

Seller Not to Collect TCS as Buyer Seller Shall Collect TCS @ 0.1% on
Shall Deduct TDS u/s 194Q Receipt Exceeding Rs.50 lakh

Taxation Updates

TDS U/S 194Q Applicability

During Financial Year 2021-22

Turnover upto Turnover exceed

Rs.10 crore Rs.10 crore

Section 194Q Not Section 194Q

Applicable Applicable

Purchase/Payment During the Year for Purchase of

Goods

Upto Rs.50 lakh Exceed Rs.50 Lakh

TDS Not to be Deducted Buyer Shall Deduct TDS @ 0.1% on Amount Exceeding Rs.50 lakh

As per Circular No.13/2021 If, for any reason, TCS has been collected by the seller u/s 206C(1H) of the Act, before the buyer could deduct
TDS u/s 194-Q of the Act on the same transaction, such transaction would not be subjected to TDS again by the buyer. This concession is
provided to remove difficulty, since tax rate of deduction and collection are same in section 194Q and section 206C(1H) ofthe Act.
If your Turnover in F.Y.21-22 is exceeding Rs.10 Crores then provision of Section 194Q and Section 206C(1H) shall be
applicable to you with effect from 01/04/2022

As a BUYER (Section 194Q)

1 If Purchase Value Above 50 lakh
2 If Purchase Value upto 50 lakh
Deduction TDS u/s 194Q @ 0.1 % on Value Above 50
lakh
No TDS u/s 194Q but TCS u/s 206(1H) may be
applicable if aggregate payment (Including last year
due) exceed 50 lakh during the year

As a SELLER (Section 206C(1H))

If Buyer is not liable to Deduct TDS u/s 194Q then TCS

1 If Sale Receipts Above 50 lakh
2 If Sale Receipts upto 50 lakh
u/s 206C(1H) @ 0.1 % on Receipts Above 50 lakh
If Buyer is liable to Deduct TDS under any other
provision of this Act and has deducted such amount
then No TCS u/s 206C(1H)
If Buyer is liable to Deduct TDS under any other
provision of this Act and has not deducted such
amount then TCS u/s 206C(1H) @ 0.1 % on Receipts
Above 50 lakh
No TCS u/s 206(1H)

Seller's Buyer's Transaction Receipt Section

Reason
Turnover (Cr) Turnover (Cr) Value (Lakh) (Lakh) Applicable
13.00 12.00 60.00 60.00 194Q - TDS No TCS as TDS applicable
8.00 12.00 60.00 60.00 194Q - TDS Buyer's Turnover Above 10 Cr
13.00 7.00 60.00 60.00 206C(1H) - TCS Seller's Turnover Above 10 Cr
8.00 7.00 60.00 60.00 No TDS/TCS Turnover upto 10 Cr
13.00 12.00 45.00 45.00 No TDS/TCS Transaction Value upto 50 Lakh
13.00 7.00 45.00 60.00 206C(1H) - TCS Receipts Above 50 Lakh
8.00 12.00 45.00 60.00 No TDS Transaction Value upto 50 Lakh
13.00 7.00 60.00 45.00 No TCS Receipts upto 50 Lakh

Taxation Updates

Particular SECTION 194Q SECTION 206C(1H)

Tax TDS TCS
Applicable to Buyer Seller
Applicable on Purchase of Goods Sale of Goods
Turnover Limit of Previous F.Y. 10 Crore 10 Crore
Threshold Limit 50 Lakh 50 Lakh
Normal Rate 0.1% 0.1%
Rate Without PAN 5.0% 1.0%
Time of Deduction/Collection Payment or Credit whichever is earlier At the time of Receipt
Deposit Date 7th of Next Month (30th April for March ) 7th of Next Month
TDS Return Form Form 26Q Form 27EQ
 Accounting Entries For TCS u/s 206C(1H) & TDS u/s 194Q

For Seller if he is liable to Collect TCS & Buyer have not Deducted TDS For Buyer if Seller have Collected TCS (Buyer is not liable to Deduct TDS)

Transaction Type Particular Debit Credit Transaction Type Particular Debit Credit
ENTRY NO.1 At the time of Booking Sale Sundry Debtors 1,05,000.00 ENTRY NO.1 At the time of Booking Purchase Purchase 1,00,000.00
Transaction To Sale 1,00,000.00 Transaction GST 5,000.00
To GST 5,000.00 To Sundry Creditors 1,05,000.00

ENTRY NO.2 On Receipt of Sale Proceeds from Bank A/c 1,05,000.00 ENTRY NO.2 On Payment to Sundry Creditors Sundry Creditors 1,05,000.00
Debtors To Sundry Debtors 1,05,000.00 To Bank A/c 1,05,000.00

ENTRY NO.3 Provision for TCS Liability on Date Sundry Debtors 105.00 ENTRY NO.3 On Receipt of Debit note from TCS Receivable 105.00
of Receiving Sale Proceeds To TCS Payable 105.00 Creditors To Sundry Creditors 105.00

ENTRY NO.4 On Receipt of TCS Amount from Bank A/c 105.00 ENTRY NO.4 On Payment of TCS to Sundry Sundry Creditors 105.00
Debtors To Sundry Debtors 105.00 Creditors To Bank A/c 105.00

ENTRY NO.5 On Payment of TCS TCS Payable 105.00

To Bank A/c 105.00

Taxation Updates

For Seller if Buyer have Deducted TDS (Seller Shall not to Collect TCS ) For Buyer if he is liable to Deduct TDS

Transaction Type Particular Debit Credit Transaction Type Particular Debit Credit
ENTRY NO.1 At the time of Booking Sale Sundry Debtors 1,05,000.00 ENTRY NO.1 At the time of Booking Purchase Purchase 1,00,000.00
Transaction To Sale 1,00,000.00 Transaction GST 5,000.00
To GST 5,000.00 To Sundry Creditors 1,05,000.00

ENTRY NO.2 Receipt of Sale Proceeds from Bank A/c 1,04,900.00 ENTRY NO.2 Provision for TDS On Date of Purchase Sundry Creditors 100.00
Debtors To Sundry Debtors 1,04,900.00 or Payment which ever is earlier To TDS Payable 100.00

ENTRY NO.3 Entry of TDS Receivable on date of TDS Receivable 100.00 ENTRY NO.3 On Payment to Sundry Creditors Sundry Creditors 1,04,900.00
Receipt from Debtors To Sundry Debtors 100.00 To Bank A/c 1,04,900.00

ENTRY NO.4 On Payment of TDS TDS Payable 100.00

To Bank A/c 100.00

*Assuemed GST Rate at 5 % / TCS Rate at 0.1 % / TDS Rate at 0.1 % / Threshold Limit of Rs.50 Lakh already crossed
 Compliance Check for Section 206AB (TDS) & Section 206CCA (TCS)

Taxation Updates

Check all PAN at Start of Financial Year it will provide list of

Non-Specified
Specified Persons
Persons

No New Names are added No need to recheck

During F.Y.22-23 this again during FY

Name would be Removed

from list if

In FY 22-23 Files Valid ITR for FY 20-21 (A.Y.21-22)

or

Files Valid ITR for FY 21-22 (A.Y.22-23)

or

TDS+TCS is less than 50,000 in FY 21-22

This Functionality will Provide Response Based on PAN (Single or Bulk Mode)
Income Tax Department Prepare List of Specified Persons as on the Start of Each F.Y.
1
(For F.Y.22-23 Previous 1 Years means F.Y.20-21)
During the F.Y. New Names would not be Added in Above list
2 So Tax Payers have to check all PAN in this utility only once during the year
After that recheck PAN of Specified Persons at time of making Tax Deduction or Tax Collections
In F.Y.22-23 if any Specified Person files Valid ITR for F.Y.20-21, his name would be removed from the
3
above list on date of filing valid ITR
If any Specified person files Valid ITR for F.Y.21-22, his name would be removed from the above list
4
(Name would be Removed on date of filing ITR or due date u/s 139(1) whichever is later
If TDS+TCS of Specified person is less than 50,000 in F.Y.21-22, his name would be removed from the
5
above list on due date u/s 139(1)
Belated and Revised TCS & TDS Returns of the relevant financial year filed During F.Y.22-23 would also be
6
considered for Removing Person from list of specified person on regular basis

Specified Person means taxpayer who have not filed Income Tax Return for A.Y.2021-22 and have aggregate of TDS and
TCS of Rs.50,000 or more in F.Y.2020-21

ITR From Name
Updated Return can be filed for
Who can file ?
If Return filed u/s 139 (1) or (4) or (5) can file updated return ? Yes
Can a file Fresh Return u/s 139(8A) ?
Time Limit
Can not file if Updated Return
Reasons for updating your income
Additional Income Tax payable at the time of furnishing the updated
return shall be equal to
income-tax”,shall include surcharge and cess)
Interest u/s 234A/234B/234C applicable?
Updated Return of Income (Section 139 (8A))
Notification No.48/2022 Dated 29/04/2022
Taxation Updates
ITR-U
Assessment Year (A.Y.) 2020-21 and subsequent years
Any Person
Yes
with in 24 Month From end of relevant A.Y.
a.is a Return of a loss
b.has a effect of decreasing the total tax liability determined on the basis of earlier return filed
c.results in refund or increases the refund due on the basis of return filed earlier
Return previously not filed
Income not reported correctly
Wrong heads of income chosen
Reduction of carried forward loss
Reduction of unabsorbed depreciation
Reduction of tax credit u/s 115JB/115JC
Wrong rate of tax
Others
a.25% of aggregate of tax and interest payable,after expiry of the time available u/s 139(4) or (5) and
before completion of the period of 12 months from the end of the relevant A.Y. or
("additional
b.50% of aggregate of tax and interest payable, after expiry of 12 months from the end of the relevant A.Y.
but before completion of the period of 24 months from the end of the relevant A.Y.
Yes
 Virtual Digital Asset (VDA)
Taxation Updates
Taxable Under Section 115BBH

Applicable From A.Y.2023-24 and Subsequent A.Ys

Tax Rate Flat 30%

Deduction Allowed Only Cost of Acquisition

Loss from VDA Shall not be Set off against Other Income
Shall not be Carried Forward to succeeding A.Ys

Other Losses Shall not be Set off against Income from Transfer of VDA

TDS Under Section 194S

Applicable From 1st July, 2022

TDS on Transfer of VDA

Payment by Any Person

Payment to Resident

Deduct TDS at the time of credit of such sum or

(whichever is earlier) at the time of payment of such sum

TDS Rate 1%

Consideration Limit Rs.50,000 for Specified Person

(During the Financial Year) Rs.10,000 for other than Specified Person

TAN Number (S.203A) Not Applicable to Specified Person (Not Require to obtain TAN)

TDS on Non-filers of ITR (S.206AB) Not Applicable to Specified Person (Not Require to Check 206AB Compliances)

(Note : if TDS Deducted u/s 194S than no TDS/TCS shall be applicable under any other provisions)

Specified Person u/s 194S

Other than
Individual / HUF
Individual / HUF

Not Having Income

Having Income under PGBP
under PGBP

Business Profession

Turnover/ Total Sales in preceding F.Y. Gross Receipts in preceding F.Y.

up to 1 crore above 1 crore up to 50 lakh above 50 lakh

Specified Person Other than S.P. Specified Person Other than S.P. Specified Person Other than S.P.
 GSTR-2A v/s GSTR-2B
Taxation Updates
GSTR-2A
It Reflects Invoices of Particular Month which
uploaded by Counter Party in their GSTR-1/IFF
Example:
GSTR-2A of April 2022 Reflects All Invoices uploaded
by Counter Party in their GSTR-1/IFF having Invoice
Date between 01/04/2022 to 30/04/2022
It is Dynamic, it means it is constantly changing
whenever counter party Files/Saves their GSTR-1/IFF
(So, it is Difficult to keep track of all invoices
reflecting in GSTR-2A
GSTR-2A Reflects Invoices Summary with Filing
Status of GSTR-1 and GSTR-3B by counter party
GSTR-2A have both Saved and Filed Invoices
GSTR-2A will be updated on Real-Time Basis
If Supplier files his GSTR-1 on Quarterly basis then
Invoices will be reflected in GSTR-2A of that month in
which Such Invoice dates belongs
GSTR-2A have Search option only
GSTR-2B
It Reflects Invoices of that suppliers who have filed their
GSTR-1/IFF between Particular Period
Example:
GSTR-2B of April 2022 Reflects All Invoices of Suppliers
who have filed their
GSTR-1 (Non QRMP) between 12/04/2022 to 11/05/2022
IFF (QRMP) between 01/05/2022 to 13/05/2022
It is Static, it means after generation there will be no
changes in data of that GSTR-2B
(So, it is Easy to keep track of all invoices reflecting in
GSTR-2B)
GSTR-2B Reflects Invoices Summary with Date of Filing of
GSTR-1 by counter party & also provide suggestions
whether ITC is available or not for that particular invoice
GSTR-2B have Filed Invoices only
GSTR-2B will be generated on 14th of Next Month for
Previous Month
If Supplier files his GSTR-1 on Quarterly basis then
Invoices will be reflected in GSTR-2B of last Month of
Quarter
GSTR-2B have Filter and Search options
ITC in System Generated GSTR-3B derives from GSTR-2B
 QRMP vs Non-QRMP
Taxation Updates
Scheme QRMP Non-QRMP

Month Particular Due Date Particular Due Date

Invoice Furnishing Facility (IFF) 13th of Next Month GSTR-1 (Monthly) 11th of Next Month
It is optional Late Fee applicable if Filed after Due Date
M1
Form GST PMT-06 Payment Challan 25th of Next Month GSTR-3B (Monthly) 20th of Next Month
Interest applicable if Paid after Due Date Late Fee & Interest applicable if Filed after Due Date
(Select Reason as Monthly payment for quarterly return & Month M1) (Select Reason as Any other payment in Payment Challan GST PMT-06)

Invoice Furnishing Facility (IFF) 13th of Next Month GSTR-1 (Monthly) 11th of Next Month
It is optional Late Fee applicable if Filed after Due Date
M2
Form GST PMT-06 Payment Challan 25th of Next Month GSTR-3B (Monthly) 20th of Next Month
Interest applicable if Paid after Due Date Late Fee & Interest applicable if Filed after Due Date
(Select Reason as Monthly payment for quarterly return & Month M2) (Select Reason as Any other payment in Payment Challan GST PMT-06)

GSTR-1 (Quarterly) 13th of Next Month GSTR-1 (Monthly) 11th of Next Month
Late Fee applicable if Filed after Due Date Late Fee applicable if Filed after Due Date
M3
GSTR-3B (Quarterly) 22nd or 24th of Next Month GSTR-3B (Monthly) 20th of Next Month
Late Fee & Interest applicable if Filed after Due Date Late Fee & Interest applicable if Filed after Due Date
(Select Reason as Any other payment in Payment Challan GST PMT-06) (Select Reason as Any other payment in Payment Challan GST PMT-06)

IFF for M1 or M2 can not be filed after Due Date (13th of Next Month) and that invoices need If GSTR-1 is filed after specified due date then invoices reported in that GSTR-1
to be reported in Next IFF/GSTR-1 as the case may be will be reflected in Next Month's GSTR-2B of Counter party

In QRMP Late fee applicable in M3 only (Not Applicable in M1 & M2) In Non-QRMP Late fee is Applicable in All Months (M1, M2 & M3)

IFF can not be filed after Due Date so no question of late fee there Late Fee is Rs.50 per Day (Rs.20 per day if Nil Return) Subject to
IFF Contain data related to B2B Invoices and B2B Credit/Debit Notes only Rs.500 if Nil Outward Supplies in GSTR 1
Rs.500 if Nil Tax Liability in GSTR 3B
M1 means 1st Month of Quarter Rs.2,000 if AATO in preceeding FY up to 1.5 Cr
M2 means 2nd Month of Quarter Rs.5,000 if AATO in preceeding FY above 1.5 Cr and up to 5 Cr
M3 means 3rd Month of Quarter Rs.10,000 if AATO in preceeding FY above 5 Cr

As per Section 50 of the CGST Act interest is @ 18 % p.a. for the period of delay on that portion of tax which is paid by debiting electronic cash ledger.
 GST on Transportation of Goods by Road by

Taxation Updates

A:Goods Transport Agency (GTA) B:Courier Agency C:Other than A & B

Service Provided to Taxable (FCM @ 18 %) Exempt

A B C
1:any Factory registered under or governed by Factories Act ,1948 Other than A & B
Unregistered Person
2:any Society registered under Societies Registration Act, 1860 or under any other law
including unregistered
3:any Co-operative Society established by or under any law
casual taxable person
4:any body corporate established by or under any law
5:any partnership firm whether registered or not (including association of persons & LLP)
6:any registered casual taxable person registered under GST Act
7:any registered person registered under GST Act
Exempt

if GTA Under 5 % Scheme then RCM if GTA Under 12 % Scheme then FCM if GTA Under 5 % Scheme then FCM
(ITC not available to GTA) (ITC available to GTA) (ITC not available to GTA)

GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;
As per Section.24(iii) Compulsory registration shall be required for persons who are required to pay tax under RCM
RCM = Reverse Charge Mechanism FCM = Forward Charge Mechanism
 Intimation of payment made voluntarily or made against the show cause notice (SCN) (DRC - 03)
Cause Of Payment Section Number Description
73(5) Tax + Interest u/s 50 (for any reason other than fraud)
74(5) Tax + Interest u/s 50 + 15 % Penalty (by reason of fraud)
52 Collection of tax at source
75 General provisions relating to determination of tax
76 Tax collected but not paid to Government
Voluntary
122 Penalty for certain offences
123 Penalty for failure to furnish information return u/s 150
124 Fine for failure to furnish statistics u/s 151
125 General penalty
127 Power to impose penalty in certain cases
73(8) SCN for Tax + Interest u/s 50 (for any reason other than fraud)(30 days time limit)
74(8) SCN for Tax + Interest u/s 50 + 25 % Penalty (by reason of fraud)(30 days time limit)
63 Assessment of unregistered persons
76 Tax collected but not paid to Government
122 Penalty for certain offences
SCN 123 Penalty for failure to furnish information return u/s 150
124 Fine for failure to furnish statistics u/s 151
125 General penalty
127 Power to impose penalty in certain cases
129 Detention, seizure and release of goods and conveyances in transit
130 Confiscation of goods or conveyances and levy of penalty
Annual Return 73(5) Tax + Interest u/s 50 (for any reason other than fraud)
Reconciliation Statement 73(5) Tax + Interest u/s 50 (for any reason other than fraud)
Liability Mismatch - GSTR-1 to GSTR-3B 73(5) Tax + Interest u/s 50 (for any reason other than fraud)
ITC Mismatch - GSTR-2A/2B to GSTR-3B 73(5) Tax + Interest u/s 50 (for any reason other than fraud)
Others Others NA
 Tax Evasion v/s Tax Planning v/s Tax Avoidance

Taxation Updates Tax Evasion Tax Planning Tax Avoidance

Meaning Intentional Non-payment or Under payment of Taxes Lagal way to Reduce the Tax Liability Reduce the Tax Liability by using loopholes of the law
Legality Illegal Legal Legal
Ethical Unethical Ethical Unethical
How By using illegal ways By using legal provisions of law By using loopholes of the law
When Done after the tax liability Done before the tax liability Done before the tax liability
Showing Lower Income in ITR Claiming Deduction based on Actual Payment Delaying Tax Payment till the last due date
Claiming Fake Deductions in ITR Holding of Investment to make it Long Term Shifting of Intellectual Property to a country where lower
Examples Showing Lower Invoice value to Reduce GST Liability Investment where income is Exempt Tax Rates
Claiming Personal Expenses as Business Expenses
Not Reporting Cash Transactions
 GST Collection (Rs. in crore)
1,80,000.00

1,60,000.00

1,40,000.00

1,20,000.00

1,00,000.00

80,000.00

60,000.00

40,000.00

20,000.00

-
April May June July August September October November December January February March
F.Y.2018-19 1,03,459.00 94,016.00 95,610.00 96,483.00 93,960.00 94,442.00 1,00,710.00 97,637.00 94,726.00 1,02,503.00 97,247.00 1,06,577.00
F.Y.2019-20 1,13,865.00 1,00,289.00 99,939.00 1,02,083.00 98,202.00 91,916.00 95,379.00 1,03,491.00 1,03,184.00 1,10,818.00 1,05,366.00 97,597.00
F.Y.2020-21 32,172.00 62,151.00 90,917.00 87,422.00 86,449.00 95,480.00 1,05,155.00 1,04,963.00 1,15,174.00 1,19,875.00 1,13,143.00 1,23,902.00
F.Y.2021-22 1,41,384.00 1,02,709.00 92,849.00 1,16,393.00 1,12,020.00 1,17,010.00 1,30,127.00 1,31,526.00 1,29,780.00 1,40,986.00 1,33,026.00 1,42,095.00
F.Y.2022-23 1,67,540.00 1,40,885.00

F.Y.2018-19 F.Y.2019-20 F.Y.2020-21 F.Y.2021-22 F.Y.2022-23