How to Prepare GSTR-9 & 9C: A Full Working Checklist for FY 2024-25

Filing GST annual return (GSTR-9) and reconciliation statement (GSTR-9C) always looks cumbersome for the financial year, as annual GST compliance may look tedious at times. Therefore, this guide will not only take you through that step-by-step process but will also provide a practical checklist of all of that and include links to official documentation for your ease of reference, so you can stay on top of compliance regulations.

What are the GSTR-9 and GSTR-9C forms?

GSTR-9 – Annual Return

In essence, this serves as the summary of your GST data, such as outward supplies, inward supplies, ITC claimed, reversals, tax paid, and adjustments, for the financial year, which is then presented in a consolidated GST return. You can find it covered in the manual of the portal.

GSTR-9C – Reconciliation Statement

This form is required when your aggregate turnover exceeds the limit of ₹ 5 crore (based on threshold limit, which is currently ₹ 5 crore) and you have to provide a reconciliation of your annual return with the audited financials.

Key bullets points:

Threshold of ₹ 5 crore aggregate turnover: notification number 30/2021 dated 30 July 2021.
Deadline for filing: Along with GSTR 9 (typically by 31 December in the following year).

Structured Step-by-Step Method for Completing GSTR-9

Step 1

Gather the Required Returns & Records

All monthly/quarterly returns: GSTR-1 (outward supply) and GSTR-3B (summary of tax)
Purchase/ITC data: GSTR-2A/2B (for input tax credit)
Financial books/ledgers (sales, purchases, ITC)

Step 2

Reconcile Outward Supply

Reconcile your books of accounts (sales invoices) against GSTR-1 and GSTR-3B for the applicable year.
Identify any invoices not recorded or amendments
Ensure that the outward supplies declared in GSTR-9 reflect the accurate value

Step 3

Reconcile Input Tax Credit (ITC)

Reconcile ITC claimed in your records against the auto portal data (GSTR-2B)
In addition, identify ineligible ITC, reversals mandated under Rule 42/43, and any obligations under the reverse charge (RCM) mechanism.
Amend your books or provide for reversals in your tax filing prior to filing the return.

Step 4

Examine Tax Liability & Payments

Confirm all GST late fees and tax liabilities owed for the tax year (CGST + SGST/IGST as there may be)
Look for late fees, interest or RCM taxes owed
Correspond the cash/credit ledger balances

Step 5

Complete GSTR-9 Online

Important tables are as follows:

Table 4: Moreover, it highlights the details of the advances and the inward/outward supplies on which taxes are owed.
Tables 6-7: The ITC availed (corrected/reversed)
Table 8: The ITC eligible as determined by the portal (2B/2A etc)
Table 9: Details of taxes paid:
Tables 10-13: Amendments made, credit notes, altered supplies

Step 6: Preview, Compute & File

Use the compute liabilities option on the portal in filing GSTR-9 (important step)
Preview your draft tax return done carefully, make sure to fix mismatches/faults
File using DSC/EVC if necessary
Keep your acknowledgment and proof of filing for your records.

Structured Step-by-Step Method for Completing GSTR-9C

When it is time to file GSTR-9C, here is the procedure to follow:

Step 1

Download Financial Statements : Audited P&L, Balance Sheet, and Trial Balance as well as the Annual accounts as per Companies Act, or audit requirement applicable for your entity.

Step 2

Turnover Reconciliation : Turnover based on books vs GSTR-1 vs GSTR-3B vs e-way bills (if applicable) and identifying differences and the reasons for each difference (for example, exports, exempt supplies, etc.)

Step 3

ITC Reconciliation : ITC based on books vs auto-data (GSTR-2B) and consider any blocked credits, reversals and RCM credit (if applicable) differences and provide a report or reason for any unreconciled differences

Step 4

Taxes Paid Reconciliation : Also, compare the tax liability shown in GSTR-9 with the actual tax payments, and adjust any pending or late-paid liability.

Step 5

Part-A for GSTR-9C (Reconciliation Statement) : In addition, Part A would include turnover, ITC, taxes paid, and any non-reconciled items, accompanied by the reasons for such differences.

Step 6

Certification (Part-B) : To the extent applicable (as per turnover and audit requirement) to be certified by CA (Chartered Accountant) or CMA (Cost Accountant) attached with audited accounts (and audit report) as well.

GSTR-9 & GSTR-9C: Complete Filing Checklist :

Documents Required

Sales register , purchase register, ITC ledger
GSTR-1 , GSTR-3B , GSTR-2A/2B details
E-way-bill summary (if applicable)
Trial Balance, Audited Financials, Balance Sheet, Profit & Loss Account
Tax Payment Challans , ledger of tax paid
Credit/debit notes, register of amendments

Important Reconciliations

Comparison of GSTR-1 to the books to GSTR-3B (outward supplies)
Comparison of ITC ledger to GSTR-2B (inputs)
Book turnover comparison to returns
RCM liabilities comparison to the books
Supplies reported by amendments in the books
Late fees / interest paid / not paid

Pre‐Filing Verification

Verify all tax dues cleared (CGST + SGST/IGST)
Verify late fees & interest paid
Data checks in the main tables : Table 4, 6-8, 9 in GSTR-9
GSTR-9C: Verify reconciliations prepared & (if needed) audited
Backup all data, take printout/screenshot for the client

Common Mistakes

Reporting turnover incorrectly (under/over)
Not accounting for ineligible ITC / not taking back
Not taking back RCM (reverse charge mechanism) liabilities
Not checking or reconciling Table 8 (ITC per portal) to books
Not filing or filing late (for GSTR-9C) and incurring excess penalty.

Why Choose BookMyAccountant for Your Filing?

If you want a stress-free and accurate filing experience, consider Book My Accountant.

Qualified CA and GST experts with previous experience in filing annual return and completing reconciliations.
Full end-to-end service: Data reconciliation completed, auditing coordinated if applicable, and e-filing handled through the portal.
Transparency in pricing and non-googling every filing deadline (so we won't miss 31st December filing deadline).
Safeguard your books and any filings or data related to your GST.
Furthermore, you will be able to reach our client support team for any inquiries, even towards the end of your client experience.

Email or call us today and we will schedule your GST return review and you will never worry about GST compliance again, to be done professionally.

Disclaimer
This Blog provides information only and does not provide any professional tax or legal advice. Although we have made an effort to ensure the material is factually accurate as of the original date of publication, the GST legislation, rule and thresholds can change. Taxpayers should obtain updated provisions from the CBIC official portal, or enlist the services of a qualified tax professional. BookMyAccountant assumes no liability, and is not responsible for any errors or omissions in the information or for any actions taken by any party in reliance upon information contained in this Blog.

The New Income Tax Act of 2025: A Complete Guide for Taxpayers

A new era is going to dawn in India's tax regime. With effect from April 1, 2026, the Income-tax Act, 2025 will take effect in lieu of the Income-tax Act of 1961, which has been in force for more than 60 years. This is history's biggest tax reform, not another amendment.

The new Act is aimed at modernizing regulations, easing tax compliance, and keeping pace with India's digital economy. Everyone who is a taxpayer -- individuals, start-ups, businesses, or charitable trusts -- will be affected.

Whether you are a private taxpayer, business person, or professional responsible for the preparation of GST returns or electronic tax returns, we at Book My Accountant (BMA) are here to assist you through these changes.

The Need for a New Income Tax Act

After decades of revisions, the Income-tax Act of 1961 had grown too complicated and antiquated. It was challenging for professionals and taxpayers to understand, with over 800 sections and multiple clarifications.

Among the principal concerns were:

Too many layers and overlapping rules make up a complex structure.
Outdated clauses: Allusions to antiquated methods.
High litigation: Disputes and administrative hold-ups are common.

To address this, the government unveiled the Income-tax Act, 2025, which was designed from the ground up to give taxpayers a more straightforward, streamlined, and digitally-first system.

Main Features of the New Income Tax Law

With only around 536 sections compared to 800+, the new Act is significantly shorter. A few of the main reforms are as follows:

1. The concept of the tax year

The terms "Assessment Year" and "Previous Year" are no longer interchangeable. From now on, it's just Tax Year, which is less onerous to follow.

2. Digital-First Structure

The government has turned digital in its thinking with full-fledged online notices, time-bound refunds, and faceless assessments. All steps in the compliance process are supposed to be monitored online.

3. VDAs (Virtual Digital Assets)

Cryptocurrency, NFTs, and tokenized assets are defined and taxed for the first time. The unreported holdings can be considered as unaccounted income, and VDA gains are taxable.

4. Plain Words

Heavy legalese is not used in the Act. The language used in the provisions is simpler and more understandable, easy for common taxpayers to read and understand.

5. Notice Before Enforcement

Where there are no exceptional circumstances, advance notification has to be provided by the tax department before any action for enforcement, e.g., search or seizure. This renders the process even more equitable.

6. Charitable Institution and Trust Regulations

There will be exemptions only for valid charitable purposes. There are more stringent reporting requirements and disincentives for gifts anonymously made.

Individuals' New Tax Slabs

The Act now incorporates the new tax slabs announced in the Union Budget 2025. With effect from FY 2025–2026, the following apply:

Range of Incomes (₹)	Rate of Taxation
0–4,00,000	Zero
Between 4,00,001 and 8,00,000	5%
8,00,001–12,00,000	10%
12,00,001–16,00,000	15%
16,00,001–20,00,000	20%
Between 20,00,001 and 24,00,000	25%
Over 24,00,000	30%

Key Points to Note

The normal deduction was raised to 75,000.

Section 87A Rebate: Maximum ₹60,000, effectively tax-free income of ₹12 lakhs.
Default Regime: The taxpayers can choose to go under the old regime if they want; the new regime is the default instead.
Surcharge: Reasonable for high-income earners.

The plan here is to discourage the use of deductions and make it easier to file.

Reductions and Rewards:

The Act retains a few common deductions despite reducing exemptions:

Although the focus on the new regime is more now, 80C investments are still there.

Health insurance (80D): Continues with additional GST exemption.
80JJAA (New Employee Deduction): Provides an additional 30% deduction of salaries of fresh hires to promote employment generation.
MSMEs and start-ups: Continue to avail of relief in tax and simplified schemes.

For tax, the Unified Pension Scheme (UPS) is treated on par with the NPS.

Evaluations and Compliance:

The government is emphasizing faceless digital compliance. Some of the major changes include:

Faceless Assessments: We will handle all cases anonymously to avoid harassment.
3-Year Filing Limit: We cannot file returns after three years from the due date.
Refund Timelines: They disburse refunds earlier, with a levy of penalty for late filing.
Enlarged Search Powers: After searching, the authorities can make use of social media and electronic devices.

Even though these steps streamline the process, they also create privacy issues, with access being in digital format.

Business Provisions:

Corporate Tax Rates: 15% for new manufacturing facilities and 22% for domestic businesses
Start-ups: Clarity on angel tax matters, including VDA taxation.
International Investments: We continue to offer infrastructure exemptions to sovereign and pension funds.
Transfer Pricing: Streamlined with quicker decisions and anonymous resolution of disputes.

Non-profits and trusts

The new Act subject’s non-profit organizations to stricter treatment:

Anonymous donations are excluded.
Donations from corpus must be traced out and handled appropriately.
Expense on CSR is not allowable yet, but reporting must be simplified.

This only makes sure that legitimate non-profits are benefiting from tax relief.

Transition Rules

FY 2025–2026 (AY 2026–2027) will be governed by the 1961 Act.
New Act will come into operation fully on 1 April 2026.
Until they are overtaken, current regulation and case law will continue to inform interpretation.

Tax payers and companies ought to update their data, software, and planning techniques well in advance.

Practical Consequences for Individuals

Particularly in the default regime, return is simpler.
The old regime may still be the choice of major investors in tax-saving products.

When dealing with Companies

Accuracy is desirable but compliance is quicker and simpler.
With increased transparency, there is reduced scope for manipulation.

For tax planners and certified accountants

Both Acts need to be known side by side during the transition period.
Educating the client will be crucial in preventing misconceptions.

Pros and Cons:

Pros	Problems
1. Cleaner, modernized drafting. 2. Simpler abridged sections and slabs. 3. Faster refunds and fairer procedures. 4. Clear rules for digital assets and start-ups.	1. Privacy issues with increased digital access. 2. High-deduction taxpayers (housing loan, PF, LIC) might feel penalized. 3. Enterprises making the transition will have to adjust quickly.

Conclusion

India's tax system has completely changed as a result of the Income-tax Act of 2025. It seeks to align with India's digital economy while making income tax easier, quicker, and more equitable.

For individuals, it means filing tax returns will be less complicated. It represents a shift for companies toward efficient, transparent, and faceless compliance. It's also time for professionals to help clients make the change.

Our goal at Book My Accountant (BMA) is to make this transition as smooth as possible. Our professionals can assist you in meeting your ITR filing deadline, staying in compliance with the new tax regime, and streamlining electronic income tax filing so you can concentrate on what really counts: expansion.

Disclaimer:
The purpose of this blog is purely to make people aware and provide information. It is not tax or legal advice. Interpretation may differ and tax law can change. Always consult a professional tax advisor before making any tax or financial decision.

UPI a Blessing or a Burden? What Every Indian Needs to Know

UPI: A Powerful Tool When Used Wisely

The UPI Revolution and Its Position in Contemporary Financial Life

Unified Payments Interface (UPI) has revolutionized India's way of paying. A swift QR code scan or tap of the button, and one is done with payments in mere seconds—be it the ride, grocery shopping, or even the roadside tea. It has done away with the inconveniences of cash or card swipes to facilitate quick and convenient payments even for the most fundamental financial transactions.

UPI is being touted as the most successful live payment system in the world. Yet, although unmatched in convenience, its growing popularity has raised genuine raised eyebrows of taxpayers, small merchants, and businessmen alike regarding transparency, record-keeping, and compliance.

Is UPI, then, a digital blessing or an invisible financial bane?

Let us weigh both sides.

The Bright Side: UPI as a Tool for Financial Transparency and Ease

One of the biggest strengths of UPI is its digital trail left behind. Each transaction is timestamped, recorded, and made available through user-friendly applications such as Google Pay, PhonePe, BHIM, Paytm, and others.

This can prove to be of immense benefit in the following manner:

1. Better Taxation Filing and Planning of Budget

UPI transactions also leave behind a transparent, organized record of incomes and expenses. For individuals, freelancers, and entrepreneurs, this makes tax preparation and accuracy easier. No more scrambling through receipts—just glance at your app statement.

2. Reduced Utilization of Unaccounted Cash

India has been extremely cash-oriented historically. UPI has helped reduce cash dependence, hence formalizing greater components of the economy. This translates into better tax compliance and accountability.

3. Broader Financial Inclusion

According to AU Bank, UPI has enabled people who previously had no access to formal banking systems to take advantage of the digital economy. Rural shopkeepers, rural wage workers, and micro-vendors are able to receive payments effortlessly and at no expense without expensive POS machines.

4. Enhanced Creditworthiness

A clean and timely history of digital payments enhances an individual's credit profile. This opens the door to availing loans, subsidies, and business loans easily.

The Flip Side: The Stealthy Cost of UPI to Taxpayers

While it has its advantages, UPI also has its drawbacks—particularly for the ignorant about its tax and compliances implications.

1. Paying More through Impeccable Payments

India Today indicated that almost 75% of UPI users confess to increasing expenditure. Since there is no actual cash transfer, individuals lose track of the amount spent.

It is this "hidden spending" that is the problem when

Your monthly expenditure exceeds your income
You are not saving
There is poor financial planning and improper taxation reporting

2. Unintended Tax Implications on Small Vendors

Picture this: a roadside tea seller now takes UPI. Within a year, their cumulative digital payments exceed ₹20 lakhs. Even if the margin is slim, now the number of transactions attracts investigation by tax bodies or even GST registration levels.

This has been the reason for the UPI usage decline in some small business communities in states such as Karnataka. The merchants feel penalized for embracing digital behavior as tax regulations are ambiguous.

3. Ambiguity Over UPI Income Rules

In most instances, professional and business dealings are grouped in one UPI ID. This commingles taxable income and informal payments (such as reimbursement from buddies).

If taxpayers don't classify it correctly, auditors often flag even non-taxable revenue—wasting time, money, and effort.

Benefits	Pitfalls
Makes Transactions Transparent – All transactions are traced and documented	Promotes Expenditure Without Means – Ease makes impulse buying more likely
Reduces Black Money Flow – Encourages cleaner, compliant transactions	Generates Tax Nerves among Traders – Unnecessary digital volumes without context may draw inquisitive questions
Enhances Credit Availability – UPI history creates a financial history	No Segregation – Blending business and personal UPI payments generates confusion
Makes Correct Filing of ITR Easy – Easy to track and report income and outgoings	Misrepresentation of Payments – Non-taxable funds may be reported as taxable income
Supports Financial Planning – Simple to view past history from UPI statements	No Framework Defined Yet – Lack of standardized taxation policy on UPI usage

Best Practices for UPI Transactions Users: What You Need to Do as a Taxpayer

As a regular user of UPI for personal and business spendings, here is how you can remain compliant and worry-free:

1. Keep Your UPI Transaction History in Check

Avail monthly UPI statements through your app or bank. This serves the purpose of:

Tracking expenses
Preventing unnecessary or duplicate payments
Safe segregation of source of income

2. Use a Different UPI IDs for Business and Personal Transactions

Vendors, gig economy workers, and freelance workers must never combine personal expenditures and business receipts. It helps you to file taxes methodically and guards you during audit.

3. Save Digital Records

Download and save monthly UPI statements at all times, particularly if you are reporting business or professional income. These can come in handy during audits or when seeking loans.

4. Assign UPI Spending Limits

PhonePe and Google Pay apps provide the facility to limit transactions. This easy step can prevent excessive spending and help you maintain a budget.

What Policymakers Need to Do: Making UPI transaction Taxpayer-Friendly

To implement UPI successfully without causing confusion or fear, the government must focus on the following measures:

Initiate Clear Guidelines on what UPI transactions can be classified as business income
GST Thresholds for digital payments and micro-enterprises
Implement Awareness Campaigns for freelancers and small traders on how to handle UPI earnings
Implement a Grievance Redressal System for UPI tax complaints
Encourage Financial Literacy Features in UPI apps (auto-categorization, reminder of expenses, etc.)

UPI transactions : A Reflection of Your Financial Discipline

How Book My Accountant (BMA) Can Help You

In Book My Accountant (BMA), we realize the increasing complexities of digital payments. You are an employee, freelancer, founder of a startup, or small trader, we provide tailored assistance to guide you through:

UPI is not just a payment system. It's a reflection of how well we're disciplined when it comes to money. If used intelligently, it can usher in unprecedented ease and transparency into our finances. But if you're unaware of it or misuse it, it can be a pain for money—particularly when it comes to taxes.

UPI business and personal transaction segregation
Monthly digital records upkeep
Awareness of the income tax, GST, and TDS implications of UPI
Prevention of under-reporting income or non-filing while filing ITR
Stay Informed On The Latest Tax Rules Pertaining To Digital Payments

Do not wait for a notice or fine. Take control of your digital cash. With BMA's expert guidance, UPI can be a growth driver, not a stress factor.

Use UPI, But Use It Smrtly

UPI has revolutionized India's finance—convenience in payments, speed, and transparency. But higher convenience requires higher awareness.

Learn where UPI has a place in your tax life. Employ it as a smart money tool—not a trap. With professional advice from BMA, you can be treated by UPI without losing out on compliances.

Disclaimer

The facts stated in this article are for general information purposes only and are not professional financial or legal advice. Book My Accountant (BMA) has attempted its best to state accurate information; however, we disclaim all responsibility for loss or inconvenience arising due to reliance on the content. You are advised to seek professional advice from a qualified tax consultant on an individual basis.

Top 5 Tax Consultants in Kolkata for 2025

You can overcome the challenges of taxation by consulting a professional who can forecast a better return on your investments. Expert tax planning and compliance advice is essential for entrepreneurs and those aiming to maximize tax returns. 2025 brought sharply increased demand for professional tax advisors, especially in large, bustling cities such as Kolkata. This article highlights the top five tax consultants in Kolkata, emphasizing their skills and services, including GST.

Book My Accountant

Overview

Book My Accountant is a top tax consultancy in Kolkata, offering complete tax solutions. They are a comprehensive financial resource, handling company formation and income tax compliance. Customized tax prep services maximize deductions and reduce taxpayer rates.

Services Offered

Income Tax Filing: Customized tax prep services maximize deductions and reduce taxpayer rates.
GST Services Kolkata: These include registration, filing, assessment, litigation and compliance and also comprises guidance on the confusions of the GST law for enterprises.
Company Formation: They help new companies establish themselves and ensure that all necessary legal compliance is envisioned and implemented from the start.
ROC Compliance: Comprehensive services for meeting the requirements imposed by the Registrar of Companies (ROC).
TDS/TCS Services: Timely filing of TDS and TCS returns is essential to avoid penalties.
Compliance Audit: Detailed audits to verify compliance with all relevant standards.
Financial Planning: Continuous financial planning services aimed at generating a more effective financial plan for the clients.

Why Choose Them?

Book My Accountant, a top tax advisor, consistently earns high marks for credibility and reliability in Kolkata. They understand client needs and stay updated on tax laws to ensure compliance and maximize client benefits.

Goyal Tax Services Pvt. Ltd.

Overview

Goyal Tax Services Pvt. Ltd. has established itself as a firm known for its expertise in accountancy and taxation. They have also gained a loyal customer base through their proactive role as tax advisors.

Services Offered

Tax Planning Services: These tax planning tools help the customers have a smaller tax liability as based on the corresponding financial status.
GST Services Kolkata: At Goyal Tax Services Pvt. Ltd., one is provided with strong GST consultancy services and compliance to the dynamic GST landscape.
Audit and Assurance Services: Comprehensive audits to provide transparency and compliance in financial reporting.

Why Choose Them?

Goyal Tax Services Pvt. Ltd.'s focus on client education and satisfaction has made it the top competitor in Kolkata. Their principal task is explaining technical tax concepts to its clients so they may be better informed when making decisions.

RSM India

Overview

RSM India has a strong market presence in the city of Kolkata and offers a broad range of professional services, such as tax consultants , audit and risk advisory services. Their international reach enhances their local expertise.

Services Offered

Corporate Tax Services: They offer a comprehensive set of corporate tax planning and compliance services that businesses can tailor to their specific needs.
GST Services Kolkata: Complete GST advisory services up through closing required for easier compliance of clients' business.
Financial Advisory: Performance enhancement through tailored financial advisory services.

Why Choose Them?

With a global network, RSM India offers insights into local and international tax laws, making them a top choice for clients seeking a broader perspective.

Partha Das & Associates

Overview

Partha Das Associates is a boutique tax consultancy firm distinguished by its attention to personalized service and its dedication to meeting every client's individual requirements.

Services Offered

Individual Tax Filing: Expertise in doing tax preparation for oneself, helping clients comply with personal tax liability as best they can.
GST Services Kolkata: Awareness of GST so that business activities are carried out in an accurate manner.
Transfer Pricing Services: Guide to transfer pricing, that is, of particular relevance to companies operating in foreign markets in respect to international trade.

Why Choose Them?

They are committed to providing clients a more personal and service focused relationship to which clients feel nurtured and listened to. They are able to design individual plan which is adapted to personas financial needs.

Saha & Associates

Overview

Saha Associates is a comprehensive financial consultancy firm that combines tax services with broader financial planning and consulting.

Services Offered

Business Tax Compliance: Assisting businesses in ensuring timely and accurate tax compliance.
GST Services Kolkata: They provide efficient GST services that businesses can use to mitigate the risk of non-compliance and enforcement.
Strategic Tax Planning: There are strategic recommendations for personal and corporate taxes.

Why Choose Them?

Saha Associates combines experience with a client-focused approach, making it a reliable legal and tax consultancy in Kolkata. That, in their aim, is to the betterment of clients’ tax systems is commendable.

Conclusion

Selecting a top tax consultant in Kolkata is crucial for financial benefits and tax compliance. In Kolkata, various firms can meet your GST and tax planning needs in 2025, allowing you to choose one that fits your personal requirements.

We need to get in touch with any of the above mentioned consultants for customisable solutions with respect to taxation, particularly for GST related purposes in Kolkata. Their help gives the information to comprehend the intricacies of taxation and guarantee financial well being.

55th GST Council Meeting Brings Relief to GST- Registered Taxpayer

Important to know for taxpayers concerning GST

It's a big thing for registered GST taxpayers who want to minimize the hassle of claiming input credit. Taxpayers under GST who filed GSTR-3B from 2017-2018 to 2020-2021 must be cautious, as authorities are issuing demands for late ITC claims. According to the GST law, they cannot claim ITC until return filing that affected many. They have missed the advantage of ITC and, thus, their output tax liability went high. Now is the new opportunity to correct the same and obtain the available ITC.

The 2024 Budget addresses taxpayer issues and simplifies the rectification of outstanding input tax credits from previous years. It was released on 8th October, 2024 in this regard. GSTN has permitted businesses to file amendments online until January 7, 2025. It mentions that Taxpayer has to complete the process before 9th April and up to 8th April to avail its benefits from it.

Understanding the Process of GST ITC Rectification

A Simple Guide to Businesses GST. It is one of the essentials involved in conducting any business in India. Input Tax Credit, as per the scheme, enables one to recover any tax that may have been levied on buying. Companies may get an ITC demand from the tax department to repay claimed ITC with penalties and interest. Well, it is again due to the process developed by the government which enables a company to rectify this mistake. Let us tell you how is GST ITC rectification and what this is to be used to correct it with reduced penal cost on businesses.

A GST ITC Demand Order: Something Went Wrong?

As a taxpayer, you monthly filed your GST returns, only to be shocked by a portal demand stating you exceeded your input tax credit limit, despite everything seeming fine on paper, necessitating further investigation. An error on the GST portal wrongly marked specific invoices. That is why a recovery demand order for excess ITC was sent.

The New Solution: GST Rectification Process

So, instead of paying the demanded amount, businesses have the option to file for rectification under the newly introduced GST ITC rectification process. This will provide the proper rectification of the errors that arise because of technical bugs without penalty and interest.

Step-by-Step Guide to Rectify an ITC Demand Order:

Here comes Step By step-by-step guide to File a rectification application on the GST portal as per the advisory of January 7, 2025

GST Portal Login Go to www.gst.gov.in and login through User Id and Password
Proceed Further Dashboard > Services > User Services > My Applications In the next,
Select "Application for rectification of order," then click "NEW APPLICATION."
Fill All the Details Download Annexure A from the portal. Fill in details of your demand order and provide details of ITC wrongly claimed by you. Upload Annexure A in complete detail now.
Check Your Application: Check your application once and then click on "FILE".
Last step: On the specified date, one application under three months will be shown for review. Cancellation of verification for old GST claims now allows outstanding ITCs to be credited to the GST ledger.

BMA Insight

This current trend of GST advisory measures in our views, at BMA, seems progressive ones aimed more towards improving issues of compliance problems and subsequently pre-ITC errors. IThis ability to correct unadjusted ITC is a relief for trade, but it highlights the need for flexible time limits to prevent future issues. Stiff rules around e-way bills and combined multi-factor authentication are strengthening security and transparency but sometimes raise a concern for compliance for small business enterprises.

We at BMA believe that if the government makes smooth implementation and support toward taxpayers sufficient, then these initiatives could bring out positive outcomes. The thrust must be towards easier compliance rather than introducing new complexities.

Vivad se Vishwas Scheme, 2024 of Direct Tax: Simplifying Tax Disputes Resolutions

At Book My Accountant, we well understand the plight of taxpayers who cannot manage unresolved tax disputes. To reduce this concern, the Central Government has brought in the Direct Tax Vivad se Vishwas Scheme, 2024. The scheme aims to ease legal disputes by offering a direct tax solution for many struggling individuals. Let us take a closer look into this scheme and how it can help you.

What is the Direct Tax Vivad se Vishwas Scheme, 2024?

The Direct Tax Vivad se Vishwas Scheme, 2024 was enacted under section 99 of Finance Act, 2024, and is expected to come into effect from October 1, 2024. This scheme aims to expedite tax dispute resolution without burdening appellate authorities, benefiting taxpayers and the Income Tax Department.

Who Can Benefit From the Vivad se Vishwas Scheme?

This Scheme shall benefit :

An Appellant who files an appeal, writ petition or special leave petition.
A person against whom an appeal has been filed by the Income Tax Department.
Any one whose case is pending in the Supreme Court, High Court, ITAT or Commissioner (Appeals) as on July 22, 2024.

This applies to objections before the DRP under Section 144C of the Income Tax Act where directions remain pending as of July 22, 2024, or are incomplete.

Eligible Key Steps to Apply

Taxpayers must submit their relief claim under the Vivad se Vishwas Scheme via Form 1 on the Income Tax portal. On filing, the declaration would be verified by the designated authority. Upon confirmation, the designated authority calculates and informs the appellant of the amount due within 15 days via Form 2.

How is the Amount Payable Calculated?

Amount payable under the scheme will depend upon the following factors:

Disputed Tax Cases: If an appeal is made after January 31, 2020 and was pending as of July 22, 2024, then the taxpayer is liable to pay the disputed tax that will carry cess and surcharge. But if petitioning is done during or before January 31, 2020, then a penalty of 10% on the amount of the disputed tax will be levied. If the amount is not paid till December 31, 2024.
Disputed Interest, Penalty, or Fee: Appeals concerning disputed interest, penalty or fee shall start requiring from January 31, 2020 onwards to pay 25% of the amount in dispute. Appeals to the date filing January 31, 2020 shall request a payment of 35% of the amount in dispute and the deadline date will remain on December 31, 2024, and thereafter draw additional penalties.

If the appeal is filed by the Income Tax Department, it is 50% of the disputed amount that the person will have to pay.

Advantages of the Scheme:

Applying the Direct Tax Vivad se Vishwas Scheme, 2024 can significantly reduce your tax liability and help resolve pending tax issues effectively.

"According to experts- Ashish Chorasia, Taxation Head, S.K. Dhanania & Co. this is to be availed by individuals whose income is less than Rs 50 Lakhs with not much variation in the assessed income. This will have lower liabilities for eligible taxpayers under DTVSV 2024 compared to E-DRS."

Important Considerations

Amount paid under the scheme No refund Any amount paid under the scheme is non-refundable. However, if an excess payment has been made before filing Form 1, the excess amount (without interest) will be refunded. Appeals The following are not eligible for this scheme:

Search assessments
Cases wherein undeclared income/asset is abroad, or
Prosecution has started.

In the case that a statement was found to be false then, the declaration shall become invalid.

Conclusion: Why Opt for the Vivad se Vishwas Scheme, 2024 to Resolve Tax Disputes?

The Direct Tax Vivad se Vishwas Scheme, 2024 offers taxpayers a chance to resolve tax disputes at a lower cost. The Vivad se Vishwas Scheme resolves tax matters, offering relief from litigation, financial burdens, and providing peace of mind. Book My Accountant encourages eligible taxpayers to look into this opportunity and realize its benefits.

For more information and to schedule assistance in filing under the Direct Tax Vivad se Vishwas Scheme, 2024, call Book My Accountant today. Our experts will be here to guide you through the process and help you reach a smooth resolution of your tax disputes.

Disclaimer

This document is general information and is not intended to be advice or legal opinion on any matter. Readers should seek appropriate professional advice before acting on the basis of any information contained herein.

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Direct Tax Vivad se Vishwas Scheme, 2024

The Income Tax Assessee can file appeals before the higher authorities in case disputed assessment orders. The department is also empowered to file an appeal in case the assessee gets relief in the case. The appeal can be filed at various levels, including Joint Commissioner, Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal, High Courts, and Supreme Court. Pending litigations are rising due to more cases being appealed and fewer cases being disposed of. The successful 2020 Direct Tax Vivad se Viswas will be followed by the 2024 scheme to reduce litigations further. The scheme though announced yet to come in force on a date to be notified by the Central Govt. The starting and end date of the scheme shall be announced very soon.

Direct Tax Vivad se Vishwas Scheme Key points

Main Objective

The main objective of the scheme to resolve the pending income tax disputes by depositing a portion of the disputed tax, interest and penalties. The aim is to provide immediate relief to the taxpayers vide the speeding up the resolution process for pending disputes before various tax appellate forums

Eligibility

As of July 22, 2024, all pending disputes/appeals are before Supreme Court, High Court, ITAT, Commissioner (Appeals), or DRP. Except a few exclusions, the scheme covers disputes/appeals filed by any of the taxpayer and/or tax authorities.

Application

The eligible taxpayers may file a declaration in the prescribed form with the designated authority. The designated authority shall determine the tax arrears and issue a certificate stating the tax arrears payable within 15 days. The taxpayer is required to deposit the arrear payable within 15 days from the date of receipt of such certificate.

Arrear Payment

In the previous Direct tax VSV Scheme, taxpayers were required to pay a percentage of the disputed tax, but received full waivers on penalties and interest. The amount payable depends on the timing of the settlement and the type of dispute. If the scheme is opted on or before 31.12.2024, only 100% of the disputed tax will be in question. Persons will be charged a little more in disputed tax if they opt for the scheme after December 31, 2024 but before its closure.

In case the dispute is about Interest, Penalty or Fee i.e. non tax disputes, only 25% of such non tax arrear is payable if the scheme is opted on or before 313.12.2024 and 30% if after 31.03.2024.

Immunity and Settlement

Under this scheme, the taxpayer is granted immunity from further prosecution, penalties, and interest for resolving disputes. After filing the declaration and making the payment, the appellants before relevant forums (such as High Courts or ITAT) will withdraw their pending appeals.

Exclusions

As we have discussed earlier, some of the litigations are not eligible under VsV 2024 like cases involving search and seizure operations, where prosecution under any law has been initiated, undisclosed foreign income or assets and cases received in DTAA.

Conclusion

The Direct Tax Vivad se Vishwas Scheme 2024 improves upon the previous VSV Scheme by efficiently resolving tax disputes cost-effectively. It waives interest and penalties and avoid further litigation.

The government will soon announce closure dates for the scheme, along with notifications and clarifications, to maximize benefits for taxpayers.

Disclaimer:

This document is general information and is not intended to be advice or legal opinion on any matter. Readers should seek appropriate professional advice before acting on the basis of any information contained herein.

A Guide to Section 194T : TDS on Payments to Partners

Section 194T of the Income Tax Act 1961 covers TDS deduction on partner payments by firms. It is crucial for firms and partners to comprehend this segment to adhere to the tax laws of India.

What is Section 194T?

Section 194T covers income tax paid by firms or LLPs to partners as salary, commission, interest, or remuneration.. It requires firms to subtract TDS that is payable before making such payments to partners. This makes sure that the incomes of partners are taxed under income taxation of India.

The following are the main features of the section :

TDS Deduction: Firms must deduct 10% TDS on payments like salary or interest to partners per Section 194T. This is allowed only if the payment made is more than ₹20,000 in a particular financial year.
Threshold Limit: Any payment made to a single person which does not exceed ₹20,000 is not subjected to TDS deduction. Any sum over this limit shall be subjected to TDS under Section 194T of the Income Tax Act of 1961.
Different from Salary: This provision applies to partner payments, not employee salaries. This goes to show how the incomes of partners are treated differently under income taxation in India.

Why TDS Matters Under Section 194T

The tax referred to as TDS that is paid under Section 194T makes it possible for government to recover its taxes directly from the firms before reaching the partners. This reduces chances of tax evasion and ensures that the provisions of the income tax laws are followed.

For partners, this means they receive income after the tax has been deducted from the income received, thus making it convenient for the partners to handle the tax issue at the end of the financial year. It also reduces the burden of depositing large amounts of taxes at a go because TDS is made progressively.

Example of Section 194T in Action

If a firm pays ₹50,000 as commission to a partner, it has to deduct 10% TDS which is payable on ₹50,000 and it will be ₹5,000. The partner gets ₹45,000 and ₹5,000 is paid to the government as TDS amount. Here’s a table that illustrates this:

Payment to Partner	TDS Deducted (10%)	Net Payment to Partner
₹50,000	₹5,000	₹45,000

This will help to ensure that income taxation is in compliance with the laws of India as provided by the Income Tax Act of 1961.

Conclusion

Section 194T is a very important section in the context of income taxation in India especially for partnership concerns. The firms ensure compliance with the Income Tax Act 1961 by deducting TDS payment on partner income. This provision is very important for firms to be in touch with to avoid penalties and to make proper filings of taxes. The knowledge of the right income tax rates and TDS payable assists both the firms and the partners in the efficient management of their taxes.

Understanding the New Advisory on RCM Liability and ITC Statements: What Businesses Need to Know

India's GST regime has evolved, with new responsibilities in RCM and ITC tax returns per the latest GST Council advisory. This update is important especially for businesses that require to adhere to the changing GST laws.

What Is the Reverse Charge Mechanism (RCM)?

In reverse charge, the tax burden shifts from supplier to recipient. This is used when the supplier isn't GST registered or for goods/services under reverse charge.

Businesses must analyze transactions to determine RCM coverage per the new advisory. Non compliance attracts penalties and interest charges.

Filing RCM Liability in GSTR 3B

One of the significant components of the advisory is the proper disclosure of RCM liabilities in GSTR 3B return. The GSTR 3B is a return that has to be filed on a monthly basis by the businesses and in this the details of the tax liabilities and the ITC claimed in GSTR 3B.

Therefore, to remain compliant, all parties must accurately report the RCM liabilities in the GSTR 3B returns. This involves confirmation of the invoices and deciding whether the reverse charge applies. This is because, in the process of auditing, inaccurate or omitted entries can cause a lot of problems.

ITC Statement and ITC claimed in GSTR 3B ITC Statement and ITC claimed in GSTR 3B

Starting from August 2024, the authorities have introduced a new “RCM Liability/ITC Statement” to improve accuracy in reporting Reverse Charge Mechanism (RCM) transactions.

This statement will capture RCM liabilities from Table 3.1(d) of GSTR-3B and the related ITC from Tables 4A(2) and 4A(3) of GSTR-3B. Monthly filers must start using it from August 2024, while quarterly filers will begin from the July-September 2024 period.

Any discrepancies between RCM liabilities and claimed ITC should be corrected in this statement, reconciling opening balances up to July 2024 for monthly filers and Q1 FY 2024-25 for quarterly filers. The deadline for declaring and amending the opening balance is October 31, 2024, with three amendments accepted until November 30, 2024.

Why This Advisory Matters

This advisory is therefore a timely reminder for businesses to remain cautious in their approach to GST compliance. New RCM liabilities and the emphasis on accurate ITC tax statements indicate that the authorities want to increase accountability.

Businesses should check their current GST compliance, especially regarding the Reverse Charge Mechanism and the ITC declared in GSTR 3B. Consider regular GST audits or consulting experts to identify potential issues that could lead to complications.

How Book My Accountant Can Help

At Book My Accountant (BMA), we offer GST services where we help you with GSTR 3B filing, reverse charge mechanism, and ITC tax. Our team of professionals keeps abreast with all the current advisories so that your business does not fall foul of any of the GST regulations.

To know more about GSTR 3B filings, you may refer to our comprehensive article on the same here. To get updated with the latest GST updates, please visit the GST Council’s official website here.

Book My Accountant is your one-stop solution for all your GST requirements. Get in touch with us for professional help and make sure your business is always up to date.

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Understanding the New Form GSTR-1A: A Guide for Businesses
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Navigating the Maze of Input Tax Credit (ITC) in GST: An Analysis of Section 16(4)

The ITC (Input Tax Credit) may be difficult to understand within the labyrinth of regulations of taxation, but undoubtedly it is one of the most important mechanisms for the businesses to operate in the tax system. The Input Tax Credit (ITC) under GST lets businesses reduce tax on inputs by offsetting it against output tax, preventing double taxation.Claiming ITC faces obstacles, notably under Section 16(4) of the GST Act, warranting a closer look.

Understanding Section 16(4) of the GST (Goods and Services Tax) Act

You must claim Input Tax Credit (ITC) under section 16(4) of the GST Act before the prescribed period ends; failing to do so means you will forfeit the opportunity to use it.The strict restriction introduced by the provision governs the order of claims for the number of credits in the last sentence.

Stated Conditions for Claiming ITC

To claim ITC under GST, businesses must adhere to several conditions outlined in Sub-Sections (1) to (4) of Section 16. These conditions include possessing valid tax invoices, receiving goods or services, and filing tax returns within the specified timeframes. Compliance with these prerequisites is essential for businesses to avail themselves of the benefits of ITC.

Arguments Against Section 16(4)

Constitutional Validity:

Section 16(4) is a controversial provision that could contradict the constitutional rights to equality and freedom to conduct business as it gives some companies an unfair advantage over others.

Administrative Burden:

Companies involved in intricate economic deals bear an increased administrative burden when tax reporting deadlines are imposed upon them. They must ensure that they comply with all the deadlines that have been provided.

Compliance Challenges:

Businesses face significant challenges meeting this deadline due to payment delays or disputes hindering timely acquisition of deserved ITC.

Impact on Cash Flow:

The import tax credit time limit can hurt cash flow, especially in industries with long payment cycles or during recessions.

Legal Ambiguity:

A challenge arises from the uncertain or unclear language and the misworded subsection (16)(4), opening the way for potential interpretation issues.

Counterarguments and Analysis

Legislative Intent:

It is crucially important to take into account the legislative purpose of introducing a time period for claiming ITC and whether it is in sync with the general objectives of the GST regime such as promoting tax compliance and minimizing revenue losses.

Preventing Fraud and Revenue Leakage:

Time limits performs very important functions like preventing tax evasion, fraud and revenue losses. Providing a mechanism whereby the government can avert the revenue loss is the role of Section 16(4).

Legislative Intent:

Preventing Fraud and Revenue Leakage:

Harmonization with International Practices:

An evaluation of time limits for claiming ITC in the GST regime, in the context of international practices, may reveal whether they are reasonable and abide by global standards.

Conclusion

The debate on GST Act 16(4) highlights system weaknesses, compliance costs, and dispute settlement concerns.Clear legal definitions explaining judicial review are essential for a good GST experience. The business community needs to be able to adapt well to ITC provisions.

While GST may sound daunting, Book My Accountant will make sure that you are compliant and can grow your business with an efficient GST framework.