A Guide to Section 43B(h) of the Income Tax Act, 1961 - MSME Payment Policy

The tax compliance world in India has changed significantly due to the mandatory requirements introduced under Section 43B(h) MSME Compliance of the Income Tax Act, 1961, as amended from time to time. Effective from 1st April 2024 (AY 2024-25), this regulation has created a major shift in how businesses must handle payments to Micro and Small Enterprises registered under the MSMED Act.

This guide has been designed to help Business Owners, Accountants, CFOs and Compliance Officers understand what Section 43B(h) entails, why timely MSME payments are now critical, and how to implement full compliance in a practical and user-friendly manner.

Significance of Section 43B(h) for Your Organisation

The purpose of Section 43B(h) of the Income Tax Act 1961 has been to create the following positive outcomes for businesses based in India:

Under the provisions of this section, any expense claimed by a business for tax deduction cannot be allowed if any payment(s) made by that business to MSMEs occur later than the specified time limits of 15 days or 45 days from the date specified in either a written or oral agreement. Importantly, if you have been able to deduct a particular expense for tax purposes because you have made a payment on the day you incurred it, the only way you can deduct it subsequently is if you... have made a payment within the time specified for your deduction.

Classification of MSMEs According to the MSMED Act

Section 43B(h) only applies to those suppliers whose registration as Micro or Small enterprises was through Udyam Registration.

MSME Classification According to the MSMED Act 2006

Classification of Enterprise  Investment ThresholdAnnual Turnover Threshold
Micro Enterprises≤ ₹1 Crore≤ ₹5 Crore
Small Enterprises  ≤ ₹10 Crore≤ ₹50 Crore

🔹 Medium Enterprises are not included under Section 43B(h).

🔹 Retailers and wholesale suppliers will also not qualify to claim the benefits under Section 43B(h), even if they hold a Udyam Registration.

Legal Framework: Section 15 of the MSMED Act in conjunction with Section 43B(h) of the Income Tax Act

Section 43B (h) relies on the definition of legally permitted times for payment as set forth in Section 15 (MSMED Act 2006).

3.1 Timelines for Payments under Section 15 of the MSMED Act (2006).

a. The Payment Terms of an Agreement (maximum 45 days) Buyers and suppliers agree to mutually-set payment terms of the agreement cannot be longer than forty-five (45) days.

Consequently, neither MSME contracts may require payments within sixty (60) or ninety (90) days of acceptance/delivery.

b. If no written agreement is present, the payment should occur no later than fifteen days from the date of the acceptance, or delivery of the items/services.

What is the Day of Acceptance?
The day on which the items or services were delivered. If the buyer has any issues or concerns regarding the Delivery and they raise the matter in writing within fifteen days of acceptance/delivery, the date when the buyer resolves their issue or concern is considered "the day of acceptance".

3.2 The tax effects of section 43B(h)

Expenses (i.e. A deductible expense) : Where payments made within the 15 to 45 days of the due date (including any portion before the due date), the financial year of the payments shall be deemed to be the year of the deduction.

Non-Expenses (i.e. Not a deductible expense): Where payments made after the 15 to 45 days of the due date, the financial year of the payments shall be deemed to be the year of the payment. You cannot utilize payments prior to the filing of your tax return as per the provisions of section 43B of the Income Tax Act.

An Example to Illustrate

An electronic invoice is sent to a Purchaser on 01-03-2025

Seller Name: A Small Business (with a registered status in India)
Understanding Date of Invoice: 45 days from the date of invoice
Amount of Invoice: ₹100,000.00 (Indian Rupee)

A). Payment made on 10-04-2025

1. Payments made within 45 days

2. Payments dated after end of the financial year

3. Payments are included in financial year 2024-2025

B) Payments made on 01-05-2025

1. Payments made outside of 45-day period

2. Payments made are not allowed in the financial year 2024-2025

3. Payments can only be claimed in the financial year 2025-2026.

Period of Interest for Delay in payment

If a buyer delays payment, the law requires them to pay interest at three times the RBI Bank Rate (as on year-end), compounded monthly.

The above interest will not be tax deductible under Section 80C of Income Tax Act.

Compliance Checklist for Businesses :

Businesses must act NOW to minimize their year-end disallowances.

6.1 Supplier Verification :

6.2 Agreements and Documentation :

6.3 Automated Tracking System :

 6.4 Review Periodically to Determine Tax Effect :

6.5 Tax Audit Reporting - Form 3CD Clause 22 :

It is required that businesses must disclose the following:

Common Risks of Non-Compliance

  1. Have not established formal business agreements → 15 Day Credit will be forced  to make payment.
  2. Have not obtained an Udyam verification → Incorrectly classified under the wrong category.
  3. Have not made payments within a single business day of receipt → Full year payment will be disallowed.
  4. Year End cash flow stress →  Delayed payments
  5. Reporting incorrectly on Form 3CD → At-risk of an audit

Managing payments under the MSMEs' Act is no longer an option; it is now required by law.

Book My Accountant Can Help You Reach 100% Compliance

Book My Accountant (BMA) is a specialist in the area of Vendor Management and MSME compliance w.r.t. 43B(h) advisory services, as well as tax audit documentation.

Within that scope, we provide the following services:

 1. Udyam Certificates/Vendor Due Diligence

2. Agreements Drafted and Standardized

 3. Automated Invoice Tracking

4. Simulations of the 43B(h) at Year-End

5. Tax Audit/Form 3CD Reporting (Clause 22)

Tips for Business Owners :  

Section 43B(h) is non-negotiable and strictly applied. You must pay within 15 or 45 days to claim the deduction; otherwise, the tax authorities will disallow the expense and add it to your taxable income. MSME interest cannot be deducted. The period from February to March could have the highest risk for business owners. Further, audit report preparation requires clean documentation.

Compliance Plan For FY 2024-2025 And FY 2025-2026

  • Identify Vendors of MSME
  • Written Agreements (within 45 Days)
  • Vendor Master Updated
  • Daily Invoice Tracking
  • Payment Prioritised for Due Date Approaching
  • Review MSME for Feb to March
  • Accurate reporting on 3CD
  • If we stay disciplined now, we will avoid large tax losses in the future.

Disclaimer

This website is intended to provide information and education (in general) to the reader and should not be regarded as advice on any issue, including legal advice, tax advice, or compliance advice. Legal requirements, notifications and tax laws may change. Readers should seek professional advice from a qualified professional for a thorough understanding of their own situation or check the latest legal amendments on the government websites.
Book My Accountant (BMA) provides professional services; however, this document's content is not intended to be a substitute for BMA's personal advisory services.

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:

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

Step 1

Gather the Required Returns & Records

Step 2

Reconcile Outward Supply

Step 3

Reconcile Input Tax Credit (ITC)

Step 4

Examine Tax Liability & Payments

Step 5

Complete GSTR-9 Online

Important tables are as follows:

Step 6: Preview, Compute & File

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

Important Reconciliations

Pre‐Filing Verification

Common Mistakes

Why Choose BookMyAccountant for Your Filing?

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

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.

Upgrade Alert: 6 Key Changes to GST Invoice Management System (IMS) You Need to Know!

Say Goodbye to ITC Headaches! The New GST System is Coming in October 2025

A significant transition will occur in regard to how taxes are managed by Indian enterprises. The GST Invoice Management System (IMS) will undergo a development and mandatory migration beginning in October 2025, which represents a significant development and will enhance accuracy and transparency throughout the process. The IMS aims to create unmatched flexibility; moreover, it addresses critical business challenges, particularly with respect to Input Tax Credit (ITC) management and buyer-supplier reconciliation.

Here are the 5 crucial updates you must prepare for to ensure seamless GST compliance:

1. The Smarter “Pending” Option is Now Extended to Critical Documents

Previously, the GST portal’s ‘Accept’ or ‘Reject’ choices were too forgiving for businesses; for instance, they compelled you to make decisions hastily, potentially leading to incorrect outcomes. The upgrade to the IMS offers well-deserved flexibility in regards to actions on additional types of documents - 

Why it is important to your business: This additional feature provides comfort that you can mark something as Pending (CN) without having to make an irreversible decision in a hurry. Now you can take your time to mark the Credit Note as Pending until you verify the goods were returned and confirm whether you want to claim it or reverse the ITC.

2. Mandatory Remarks for Rejections or Pending Actions

A major pain point in GST reconciliation has always been the communication gap between buyers and suppliers. If a supplier either rejected or left an invoice or credit note pending, the supplier often had no idea why which initiated the long email threads, delayed adjustments of ITC and continuous back and forth phone calls.

The new IMS update (effective October 2025) is addressing this issue directly by making it mandatory for a recipient to provide remarks every time a recipient:

GST image for ims blog

What’s New

The GST portal will prompt the user to enter a brief remark before finalizing either action. The remark will be instantaneously available to the buyer and supplier on their IMS dashboards.


Examples of Useful Remarks

Why This is Important for Businesses

Increased Transparency

Both parties know exactly why an invoice or note was rejected or left pending; there is no more guessing, and clarification no longer requires back-and-forth communication.

Faster Reconciliation

The suppliers can instantly correct or re-issue the document based on the visible remark, which reduces the dispute cycle from weeks to days.

Better Audit Trail

The remark constitutes part of the document history saved in the GST system, providing a digital trail to facilitate compliance review and audit workflows.

Reduced ITC Disputes

Buyers can rest assured knowing their Input Tax Credit (ITC) will be allowed or put on hold; the status, and reason or reasons are clearly documented on both sides.


Increased Professional Accountability

Because remarks are visible to both users, it facilitates a culture of accuracy, ownership, and problem-solving in every transaction.

3. Critical: New Rules Apply ONLY from October 2025 Onwards

It is very important to note that the new IMS features do not apply to prior transactions. Your organization will be working in a dual system for a period of time:

Document TypeDate of DocumentSystem Rule Followed
New RegimeOctober 2025 or laterPending option, partial ITC reversal, etc.
Old RegimeBefore October 2025Previous rules (no pending, mandatory full ITC reversal, etc.)

Be sure your accounting software and internal processes are immediately able to accommodate the simultaneous existence of both "old" regime documents and "new" regime documents. Your team must accurately identify the date prior to processing any document.

4. Deep Dive: Flexible ITC Reversal

Clarifying Flexible ITC Reversal – A More Intelligent, Proportionate Approach

Beginning October 2025, IMS goes live with Flexible ITC Reversal. This amendment closes the gap between a CN issuance and the recipient’s ITC claim, while promoting flexibility, accuracy, and fairness in GST compliance.

In the previous GST regime (before Oct 2025), a recipient reversing a Credit Note had to reverse the entire ITC linked to that invoice, regardless of what ITC they had actually claimed.

Too much ITC has been reversed, manual reconciliation proves problematic, and buyers and sellers engage in unnecessary disputes.

Example:

A purchaser received an invoice with ₹18,000 GST, and, for various internal accounting reasons, had only claimed ₹10,000 initially. Then, the supplier issued a Credit Note for ₹9,000 GST.The original recipient would reverse ₹9,000 of qualified ITC, even though only half of it was applicable.

With the updated IMS, taxpayers have the flexibility to choose a full or partial ITC reversal depending on their actual ITC claim.

When a Credit Note is issued and a reversal occurs, the IMS asks the recipient the following direct question:

"Do you want to reduce ITC for this record?"

Most likely, the next action will be as follows:

If yes, you are able to enter the exact amount of ITC amount and reduce it for that record - there will be no assumptions of any kind and no obligation of full reversal.

If no, the ITC will remain unchanged - until you choose to manually edit it at additional time (if at all).

This change gives businesses "control" to confirm that the ITC reversal is the same as what their real book entries are - not the assumptions of the ITC reversal from the system.

FeatureOld System (Pre-Oct 2025)New System (Post-Oct 2025)Compliance Impact
Reversal AmountFull ITC reversal on original invoice/debit entry linked to Credit Note.Partial or full reversal can be selected by the recipient.Prevents over-reversal; aligns reversal with actual ITC claimed.
System PromptSystem assumed full reversal; manual correction required.System prompts with “Do you want to reduce ITC for this record?”Improves accuracy, reduces reconciliation disputes.
User ActionNo flexibility – automatic or full reversal expected.‘Yes/No’ choice + editable reversal field.Flexibility ensures book-level accuracy and smoother audits.

Let’s say:

Supplier issues an invoice for ₹1,00,000 + ₹18,000 GST.

The recipient claims ₹10,000 ITC initially due to an internal error; consequently, we must conduct further verification to reconcile the figure with supporting documentation.

Later, the supplier issues a Credit Note reducing the value by ₹50,000 plus ₹9,000 GST; thereafter, the adjustment should be reflected in the records and reconciled with supporting documentation.

Now:

Old System: The recipient would have to reverse the entire ₹9,000, even though only ₹10,000 ITC was ever claimed.

New System (Post-Oct 2025): The system asks whether the recipient wants to reverse ITC.

Recipient selects ‘Yes’ and enters ₹5,000 — half of their originally claimed ₹10,000 ITC.

This ensures perfect alignment between the supplier’s CN and the recipient’s ITC records.

5. New Table in Annual Return (GSTR-9) for Full Transparency

The GST Network (GSTN) has added a new table — Table 6A1 — in the Annual Return (Form GSTR-9)
for FY 2025–26 onward for better clarity and accountability of Input Tax Credit (ITC) in one's GST
return.
The new table aims to give you a complete overview of your ITC movement throughout the financial
year with complete transparency with your books, GSTR-3B, and GSTR-2B.

What Table 6A1 Captures

The new table has three relevant stages of your ITC life cycle:

Total ITC Claimed During the Year –

This is your claimed ITC in total in GSTR-3B for the financial year as at the end of the period.
For example, if the claimed ITC of the year across return(s) comes out to be ₹5,00,000, the amount would appear here. Furthermore, you can verify the figure against your records, and if there is a discrepancy, you can initiate a reconciliation.

Total ITC Reversed Later –

The statement covers scenarios in which ITC was reversed for ineligibility: the recipient did not match the invoice, the vendor was not paid within 180 days, or reversal occurred for any other compliance reason.

For example, you claimed ₹5,00,000 but later reversed ₹50,000 for unmatched invoices.

Final Actual ITC Utilized –

This is the net ITC after reversals, which was eligible, and utilized against tax liability.
Final actual ITC utilized = ₹4,50,000 (Claimed - Reversed [i.e., ₹5,00,000 - ₹50,000]).

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.

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:

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
0–4,00,000Zero
Between 4,00,001 and 8,00,0005%
8,00,001–12,00,00010%
12,00,001–16,00,000   15%
16,00,001–20,00,00020%
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.

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.

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:

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

Business Provisions:

Non-profits and trusts

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

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

Transition Rules

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

Practical Consequences for Individuals

When dealing with Companies

For tax planners and certified accountants

Pros and Cons:

ProsProblems
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.

Waiver of TDS/TCS Interest Under Sections 201(1A) (ii) and 206C (7): CBDT’s 2025 Relief

A significant tax relief has been announced by the Central Board of Direct Taxes (CBDT). For qualified cases, CBDT waives the interest levy under Sections 201(1A) (ii) and 206C(7) of the Income-tax Act through its 2025 circular no. 08/2025.

The goal of this action is to lessen the financial burden of taxpayers who had to pay interest on TDS/TCS payments that were delayed for valid reasons. This relief is a much-needed reprieve for a lot of people and businesses.

However, what is the true meaning of this waiver? And who stands to gain from it? Let's dissect it.

What Is This Waiver About?

Interest on late or non-payment of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) is covered by Sections 201(1A) (ii) and 206C (7) of the Income-tax Act.

In the past, taxpayers were still required to pay interest even if the delay was caused by technical difficulties or banking problems.

The CBDT declared in 2025 that in worthy cases, such interest may now be waived. Following comments from taxpayers and industry experts, this decision is described in detail in Circular No. 08/2025.

Why Did CBDT Announce This Relief?

The government's goal to facilitate compliance and assist legitimate taxpayers is reflected in the waiver.

Numerous companies, particularly start-ups and MSMEs, stated that the following factors frequently caused TDS/TCS deposit delays:

The CBDT recognizes these practical difficulties and guarantees that no taxpayer is unjustly punished by permitting a waiver.

Who Is Eligible for the Waiver?

Not everybody is eligible. The recipients of this relief are taxpayers who actually experienced hardship.

Eligible cases include:
1. Payments made in advance of the due date but credited later because of system problems are examples of eligible cases.
2. Unintended delays that are out of the taxpayer's control.
3. situations in which taxes were paid but interest was assessed.
 
Ineligible cases:
1. Intentional non-payment or wilful defaults.
2. Persistent late filers without good cause.

Applications must be sent to the appropriate authorities, such as the Director General of Income Tax (DGIT), the Principal Chief Commissioner of Income Tax (Pr. CCIT), or the Chief Commissioner of Income Tax (CCIT).

The deadline for applying

A stringent deadline has been set by the CBDT.

Within a year of the fiscal year in which the interest was assessed, taxpayers must submit an application.

As an illustration:

The application needs to be filed by March 31, 2025, if interest was assessed in FY 2023–2024.

Since this deadline cannot be negotiated, prompt action is essential.

Why This Is Important for New Businesses and Start-ups:


Every rupee matters for new and start-up companies. Even minor fines are a major hardship due to tight budgets, scarce financial resources, and ongoing pressure to fulfil compliance requirements. This is particularly true for MSMEs, who sometimes lack specialized compliance teams and find it difficult to stay on top of constantly evolving tax laws.

The respite is especially helpful for STPI-registered corporations and IT firms that specialize in exports, as international banking procedures and transactions can occasionally result in unanticipated delays in TDS/TCS payments. These companies, who are already dealing with a number of operational difficulties, now have a safeguard against unjust interest charges brought on by uncontrollable circumstances.

We at Book My Accountant (BMA) collaborate closely with IT companies, MSMEs, and start-ups to assist them understand and comply with complicated tax laws. More than merely monetary comfort, this waiver gives these companies the chance to refocus their efforts on expansion and innovation rather than worrying about fines for inevitable delays.

How to Apply for the Waiver?

Here is a basic guide:

What Effect Does This Have on You?

You now have the opportunity to get relief if you have paid interest or been charged interest as a result of actual banking or system errors.

For businesses, this means:

Why BMA Suggests Quick Action

Book My Accountant (BMA) has witnessed personally how quickly important deadlines can pass when tax compliance isn't given first priority. Therefore, if you think you are eligible for this waiver, we strongly advise you to take immediate action. Early application submission lowers last-minute stress and improves your chances of approval. Seeking professional aid is equally vital because applications that are accompanied by well-organized documentation have a much higher chance of being accepted. In order to ensure future operations, go more smoothly, now is also a great time to assess and enhance your TDS/TCS compliance procedure.

Popular Takeaways:

Conclusion:

Sections 201(1A) (ii) and 206C (7) of the CBDT provide a 2025 interest waiver, which is a welcome relief for upfront taxpayers, particularly exporters, MSMEs, and start-ups that are facing inevitable delays. It shows that the government wants to make compliance more equitable and useful. But because the relief is application-based and subject to stringent deadlines, prompt action is crucial.

To increase their chances of receiving this benefit, Book My Accountant (BMA) assists individuals and companies in creating strong applications with the required supporting documents. Now is the time to take action and lessen needless financial burden if you think you qualify.

Disclaimer:

This article has been prepared by Book My Accountant (BMA) for general awareness purposes. It is based on publicly available information and CBDT circulars. It should not be treated as legal or financial advice. For personalized consultation, please connect with a qualified tax expert.

Mandatory ISD Registration from 1st April 2025

Mandatory registration as an Input Service Distributor (ISD) is required for all entities that have more than one GSTIN based on a single PAN effective 1st April 2025. ISD registration was previously optional, but it is now mandatory as per the new GST amendment. This amendment aims to facilitate the distribution of Input Tax Credit (ITC) while ensuring compliance and allowing credit management for entities with multiple branches. Companies receiving standard input service bills at a head office and distributing ITC to multiple branches will be most affected. To comply, they must pre-register as ISDs, establish proper ITC distribution processes, and ensure effective compliance practices from the start.

Understanding Input Service Distributor (ISD)

An input service distributor is an office of the business that receives tax invoices for input services and distributes the available input tax credit (ITC) to related branches or units having separate GSTINs but using the PAN of that business.
Distributing Input Tax Credit The input tax credit (ITC) available for distribution in every month has to be distributed in that month itself and to be reported in Form GSTR-6. Furthermore, the ISD must distribute every tax credit arising from payments made under the reverse charge mechanism under Sections 9(3) and 9(4) to the respective recipients. If the input service is availed only by one recipient, input tax credit should be distributed to that one recipient only. To distribute the available tax credit among multiple recipients who use the input services, they must do so in proportion to their turnover.

The distribution has to be done,
ITC to Branch = (Branch Turnover / Total Turnover) x Total ITC
Branch Turnover =  turnover, as referred to in section 20, of person R1 during the relevant period
Total Turnover = the aggregate of the turnover, during the relevant period, of all recipients to whom the input
service is attributable in accordance with the provisions of section 20
Total ITC = the amount of credit to be distributed.
XYZ Ltd. is a company with its head office in Mumbai (ISD) and branch offices in Delhi, Bangalore, and Chennai.
The Mumbai head office receives an invoice from an advertising agency for ₹1,00,000 + 18% GST (₹18,000 GST Credit). This advertisement benefits all three branches, so the ITC needs to be distributed proportionately.

Turnover of Branches:

ITC Distribution Calculation:

Since the ITC of ₹18,000 needs to be distributed based on turnover, the allocation is:

BranchTurnover (₹)Share (%)ITC Distributed (₹)
Delhi10,00,00050%₹9,000
Bangalore5,00,00025%₹4,500
Chennai5,00,00025%₹4,500
Total20,00,000100%₹18,000


Financial Risks of Non-Compliance with ISD Rules-

Failure to comply with Input Service Distributor (ISD) rules poses significant financial and operational risks to business organizations. Non-compliance with ISD protocols would deny branches any allowable Input Tax Credit (ITC) for general services, which would only increase tax cost. Similarly, errors in ISD and/or mismatches of ITC in Goods and Services Tax (GST) returns would increase the likelihood of receiving a GST notice, or auditing, and/or potential penalties.

Non-compliant businesses face increased scrutiny from tax authorities due to uncertainty in ITC apportionment, raising the risk of financial liabilities. The cost of ITC would be much more significant if taxpayers could claim benefits for any Reverse Charge Mechanism (RCM) transactions prior to April 2025, which leads to additional taxes being paid. However, this holds true if the company ensures satisfactory ISD compliance, properly apportions the ITC between branches, reduces compliance risks, and results in lower taxes with a clear flow of ITC. It also supports claiming ITC based on RCM, subsequently after April 2025, improving cash flow for the company's overall improved tax efficiency. To reduce tax litigation and financial losses, companies must value their ISD compliance and ensure proper ITC disbursement.

Conditions to be Met by an Input Service Distributor (ISD)

Registration:

An Input Service Distributor (ISD) is required to separately register as an "ISD" in addition to their regular GST registration. When applying through REG-01, the taxpayer will have to indicate ISD registration at serial number 14. Under the law, only upon making that declaration is the ISD permitted to distribute Input Tax Credit (ITC) to its recipients.

Invoicing :

Raise ISD invoices while disbursing ITC to respective units or branches.

Filing of Returns:

The returns will be filed on a monthly basis in GSTR-6 on or before the 13th of the ensuing month reporting the ITC paid out.

Returns:

The total tax credit paid out by the aggregators should not exceed the available tax credit at the end of the relevant month.

Filling :

ISD has to report the remitted ITC in GSTR-6, to be filed by 13th of next month.

Consequences of Not Registering as an Input Service Distributor (ISD)

From April 1, 2025, companies that do not register as an Input Service Distributor (ISD) can encounter various difficulties, including legal and monetary penalties:

Penalties and Interest

 Failure to comply with obligatory ISD registration can invite penalties for improper distribution of Input Tax Credit (ITC). If ITC is claimed in excess, tax officials can recover it from the recipient along with interest under Section 21 of the GST Act.

Increased GST Audits and Scrutiny

Companies that are not registered under ISD are prone to audits and investigation by the tax department. Discrepancies in the claim of ITC can invoke in-depth inquiry, resulting in legal issues.

ITC Reversal and Cash Flow Interruptions

Incorrect or non-registered ISD operations might lead to ITC claim reversal. This makes branches pay tax directly rather than availing eligible ITC, affecting cash flow and working capital management.

Tax Notices and Financial Burdens

Mistaken ITC claims at the head office without ISD registration can result in tax notices. These notices can translate into extra financial burdens and operational interruptions.

Operational Inefficiencies and Credit Allocation Problems

In the absence of an appropriate ISD mechanism, companies might find it difficult to distribute ITC effectively among various branches. This can lead to credit distribution disputes and financial management inefficiencies.

The entity must obtain a separate registration as an ISD, even if it has a normal GST registration.

Step-by-Step ISD Registration Process

  • Step 1: Access the GST Portal
  • Step 2: Navigate to Registration Application
  • Step 3: Fill Part A of Form GST REG-01
  • Step 4: Fill Part B of Form GST REG-01
    Details of Promoters/Partners:
    Authorized Signatory:
    Bank Account Information
  • Step 5:  Upload Required Documents
    a. Proof of Constitution of Business
    b. Proof of Principal Place of Business
    c. Identity and Address Proofs of Promoters/Partners
    d. Bank Account-Related Proof
    e. Photograph of Promoters/Partners
    f. Letter of Authorized Signatory in case of partnership firm, company, HUF, etc.
    g. DSC in applicable cases like company , etc.

CONCLUSION

We at BMA take satisfaction in streamlining tricky tax regimes, and if each person is best proper to showcase this, it's far the Input Service Distributor (ISD) device beneath GST. Compliance calls for a painstaking recognition on detail, consistency, and a clear information of the way to distribute enter tax credit (ITC) between divisions. That's wherein we step in. We provide full support for businesses with ISD registration, compliance setup, and monthly return filings. Our strong approaches ensure that we assign ITC appropriately and fairly at locations, preventing mistakes, loss of credit, and undue notices from the tax department. Whether you have a decentralized headquarters or are a large company with decentralized operations, we streamline ISD management to ensure your tax credits are compliant and optimized.

With us on your side through BMA , you can cast off tax monitoring issues and cognizance at the boom of your enterprise, as we deal with your ISD requirements with accuracy and on time.    

Disclaimer

The above is general information. Material on this site is for general information purposes only. Readers are advised to consult a professional tax consultant before making any tax decision. Despite the exercise of care in updating information, BMA cannot be held liable for error or omission or loss arising from use of such information

AI for Tax Compliance : How It's Revolutionizing TDS Assessments in India

India's tax regime is undergoing a sea change with the introduction of Artificial Intelligence (AI) and Data Analytics. Tax Deducted at Source (TDS) evaluations, which previously had been based on human instincts, are now being managed by AI-powered automation and data analytics. It increases compliance, accuracy, and efficiency in calculating taxes, and business houses and chartered accountants are being forced to adopt such newer technology.

The Application of AI in TDS Evaluations

Artificial intelligence-based systems are transforming TDS evaluation services through automated procedures, identification of discrepancies, and reduction of errors. Earlier, manual reconciliation and data entry used to be performed, hence resulting in errors and inaccuracy in computation. AI-based platforms apply machine learning algorithms to reconcile transactions, enable accurate deductions, and meet government policies.

Key Advantages of AI in TDS Evaluations

Light heartedness to Enterprises for Engagement Adoption:

Use of AI for TDS auditing lightens the level of compliance attainable by companies without being bogged down by cumbersome weights of manual checks and adjustments.

How Data Analytics Facilitates TDS Compliance

Data analytics is especially applicable to enhancing TDS consultancy service by authenticating patterns, detecting possible frauds, and delivering tax deduction insights. In the era of generating vast amounts of financial information on a daily basis, sophisticated analytics solutions allow organizations to:

AI & Data Analytics in TDS Consultancy Services

Indian TDS consulting companies are further investigating the potential of AI and analytics in an attempt to deliver successful tax solutions to clients. Tax consultants are using AI-driven dashboards to evaluate tax liability, identify mismatches, and maintain legal compliances.

Book My Accountant, a leading tax and financial services brand, is at the forefront of this transformation. With its expertise in TDS assessment services, the company provides AI-driven solutions that simplify calculating and adhering to taxes.

Why Companies Need AI-Based TDS Consultancy Services

Firms in Bhubaneshwar, Kolkata, and Bangalore need professional consultancy in tax to handle the complicated TDS provisions. A professionally managed TDS consultancy firm Kolkata like Book My Accountant keeps firms up to date about changing tax laws without any interference of any human being.

In the same way, TDS consultancy Bhubaneshwar services also utilize AI-based analytics to assist in maximizing tax deductions and avoiding compliance problems. With the integration of AI, companies can automate repetitive tax activities, minimizing human intervention and enhancing accuracy.

For Bangalore companies, AI-based TDS consultancy Bangalore solutions make it an easy job to deal with taxes. From e-billing to auto-filing of tax, AI revolutionizes the process of how companies deal with TDS assessments.

How Book My Accountant Leverages AI & Data Analytics for TDS Compliance

Book My Accountant leverages AI solutions to provide easy TDS assessment services. The organization provides:

  1. Automated TDS Filings: Quick processing and timely compliance.
  2. Real-Time Tax Tracking: Real-time tax assessments through AI-based dashboards.
  3. Tax Solutions Personalized: Customized solutions for maximizing tax deductions to the extent and penalties avoided.
  4. Data-Driven Decision Making: Analytics-based to achieve increased accuracy and compliance with laws.

Deploying AI to TDS estimates is not the tomorrow dream but the reality for companies eager to match the pace with times in an age of tax automation.

Upcoming AI & Data Analytics Trends for TDS Assessments

The future of TDS computations in India will see increased developments in AI and analytics, including:

Since there is going to be more advancement in AI, organizations employing AI-founded tax consultants are going to have quicker, bug-free, and compliant TDS calculations.

Conclusion

Artificial intelligence and data analytics are revolutionizing tax deduction at source assessment services and making it fast, efficient as well as accurate. Book My Accountant offers industry-best TDS consultancy services in Bhubaneshwar, Kolkata, and Bangalore for implementing AI-based solutions for authentic taxes.

To experience the best-in-class AI-based TDS solutions, schedule an appointment with Book My Accountant today and enjoy a hassle-free experience of technology at tax.

Disclaimer

The above is general information. Material on this site is for general information purposes only. Readers are advised to consult a professional tax consultant before making any tax decision. Despite the exercise of care in updating information, Book My Accountant cannot be held liable for error or omission or loss arising from use of such information.

Major Income Tax Modifications for FY 2025-26: NIL Tax on Incomes up to Rs 12 Lakhs

Revised Tax Slabs

The budget introduces a restructured tax slab system to ensure a progressive taxation approach. The new tax rates are as follows:

New Income Tax Slabs for FY 2025-26 (as per Budget 2025)

Annual Income (₹)Tax Rate (%)
Up to ₹4,00,000No Tax
₹4,00,001 - ₹7,50,0005%
₹7,50,001 - ₹12,00,00010%
₹12,00,001 - ₹15,00,00015%
₹15,00,001 - ₹20,00,00020%
₹20,00,001 - ₹25,00,00025%
Above ₹25,00,00030%

This restructuring aims to provide relief to middle-income earners while ensuring that higher-income individuals contribute a fair share to the nation's revenue.

The Finance Minister's recent budget speech for the year 2025-26 has brought a revolutionary change in India's income tax scenario. This move is proposing people a great deal, especially those with an income of up to Rs 12 lakhs. In this blog, we shall introduce the main features and implications of the new income tax regime.

1. Exemption Limit: A New Beginning

Traditionally, the income tax exemption limit was Rs 2.5 lakhs for those who were less than 60 years old. In the following financial year, though, there was a surprise twist with those having income up to Rs 12 lakhs exempted from income tax. That is way higher than previous exemptions, and the idea is to lower tax on mid-level income earners.

2. Section 87A Extended Rebate

Most relevant among these extensions is the rebate under Section 87A for taxable incomes that have been lifted to Rs 12 lakhs. That is, such eligible assessee shall not only benefit from a bigger exemption limit but also from the rebate path. It must especially be noted in this regard that this rebate remains reserved only for resident individuals. Foreigners living in India or non-resident Indians are not eligible to claim it.

3. Tax Liability of Salaried Individuals

For salaried people, it is all the more useful. Although the minimum exemption amount is the same at Rs 4 lakhs, one can see that such people can be exempt from taxation up to a point of income of Rs 12.75 lakhs if one takes average deductions and other deductions into consideration. This brings the tax scenario for the salaried community more favourable, and they get to experience prosperity in terms of finance and consumption.

4. Special Rate Incomes: Clarification Needed

Though the new regulations have been welcomed with open arms, special rate incomes like Short-Term Capital Gains (STCG) have instilled fear.

These revenues are not liable for the rebate under the current clauses whether the aggregate revenue of the taxpayer is below Rs 12 lakhs. This provision of the new scheme has brought some ambiguity. Most of the taxpayers are enquiring whether they can avail themselves of the rebate scheme if their taxable revenue is mainly from such special sources.

5. Introduction of Marginal Relief

In order to avoid that the taxpayers suddenly find themselves bearing the tax burden as their incomes just cross Rs 12 lakhs, marginal relief has been provided for by the budget.

This is invoked when the taxpayer's income just crosses this threshold. The marginal relief provides that the tax levied on the income in excess of Rs 12 lakhs is never greater than the size of the excess income, in order to avoid so-called "tax trap." For example, a taxpayer can avail of a marginal relief of overall income of Rs 12,70,587, so that his total tax burden would be the size of the income in excess of Rs 12 lakhs.

6. Implications for the Taxpayer

These measures are aimed at having beneficial effects on tax payers. With an increase in the exemption amount and increasing the rebate under Section 87A, the government aims to increase the disposable incomes of citizens, which will be able to generate economic growth as well as consumption by consumers. It can also simplify the system of taxation, decreasing the compliance burden on individuals.

Other than that, marginal relief schemes are a thoughtfully generous favor for taxpayers' well-being. The budget cost of violating a tax limit could sometimes deter individuals from seeking further meritorious compensations that could hinder economic growth. Taxpayers have much to gain with such an enlightened step on the part of the government here in this budget, with increasing economic liberty.

Conclusion

The newly released budget of FY 2025-26 is a landmark for India's income tax situation, particularly with the inclusion of NIL tax for incomes up to ₹12 lakhs. In addition to lowering the tax burden for mid-income groups, this future-proof budget also promises to increase the economic growth by increasing the disposable income. The introduction to Section 87A and marginal relief also go towards establishing the government's aim of enacting a more progressive tax regime.

And all the while, taxpayers are trying to cope with all this and keep up to speed and seek advice from an expert, especially regarding special rate incomes and rebates qualifying.

Book My Accountant Talks

We, at Book My Accountant, are dedicated to guiding you through the implications of these tax reforms and helping you get the best out of the new regime. Our experts are ready to provide you with personalized advice and assistance according to your financial situation.

Greet this exciting new era of Indian taxation with optimism, and let us help you make the most of the possibilities of the future unfolding. We can construct foundations for a prosperous economic future together.

You may approach us at any time for any fact or assistance you may require regarding tax planning and compliances. Your welfare matters to us!

Implementation of Mandatory HSN Codes in GSTR-1 & GSTR-1A

What You Need to Know

From January 2025, GSTN started phasing in the implementation of mandatory HSN codes in Table 12 of both GSTR 1 and GSTR 1A. It is a step based on the correct reporting of tax that has minimal human errors and simplifies compliance for businesses across the nation.

Below is a blog that has broken down what HSN codes are, change that has been introduced in Phase III, and compliance steps that need to be followed by businesses in India.

What Are HSN Codes and Why Are They Important?

It is, in fact the Harmonized System of Nomenclature, or HSN-an internationally accepted classification of goods and services. It classifies products or services with a unique numerical code, thereby standardizing trade and tax systems.

HSN is important for Goods and Services Tax in India in the following manners:

The implementation of HSN codes must be done correctly, and GST registered entities should cover it.

Phase III Implementation: Key Changes

GSTN has brought phase III in the process of reporting of HSN Codes in GSTR -1 and GSTR-1A. Here are the critical changes in the same:

  1. Segmentation of Table 12
    • Table 12 divided into two heads:
      • B2B Supplies: Business-to-business.
      • B2C Supplies: Sales to consumers.
    • Separation gives clear clarity and easy reporting of supplies.
  2. Validations Rules of Supplies and Value of Taxation
    • These supplies and taxation reported values have the new validations developed which cross-matching will happen on this reported value of supplies.
    • The business must complete the submission during this time period, so the rule will initially serve as a warning due to the mismatching.
  3. Features associated with the upgraded user
    • Download HSN Code List now with a new button whereby taxpayers can download the latest HSN and SAC codes along with descriptions in the Excel format.
    • My Master now facilitates search on product descriptions, making it easy to decide which HSN codes to use.

Change in Detail

  1. Verification for B2B Supplies
    • Verification rules will be applicable on tables like:
      • 4A, 4B, 6B and 6C for registered recipient.
      • 9A, 9B, and 15A for Exports or to registered recipient. 
    • This verification is an adjustment of tax values with correct tax amount.
  2. Verification in B2C Supplies
    • We will verify the non-registered recipient on the table such as.
      • 5A, 6A, 7A, and 7B. Domestic Supplies for non-registered recipient.
      • 9A (Ex) and 10 or 15 for unregistered recipient.

Addressing Amendments

If they conduct a revaluation, they will compare it based on differential value to eliminate the reuse of similar data.

Business Implication

Phases III Changes to GST registered will have more substantial effects for tax payers as follows -What Businesses should know:

Benefits of the new system
Challenges to be Overcome

Steps to comply with Phase III

To align the business to the new needs and ensure compliance, the businesses need to do:

  1. Study the Advisory
    • Read the official advisory given by GSTN in detail and understand what is changed and its implications.
    • The complete guidance is available on the GST portal that can be referred to.
  2. Accounting System
    • Check whether your accounting and billing software has the facility of dropping down the codes of HSN.
    • If yes then collaborate with the software vendor also to make the changes
  3. Train Your Employee
    • Train those employees who are handling GST return, which will file returns along with new updations.
    • Completely educate them about the drooping system as well as newly implemented validation rule and all change
  4. Validation Warnings Monitoring
    • Develop a procedure in order to trace the validation warnings that are arising while filing of returns.
    • Clear up the mismatches at once so no further penalties should arise.

FAQs on HSN Code Implementation

Q1: Will the validation warnings prevent the returns from being filed?

No, in the initial days, the validation warnings will not stop the filing of returns. However, the business needs to correct the warnings so as not to incur improper compliance in the future.

Q2: How can I get the new list of HSN codes?

You can download the latest HSN and SAC codes from the GST portal by clicking on the "Download HSN Code List" button on Table 12.

Q3: Is the drop-down selection compulsory for all taxpayers?

No, HSN code entry cannot be done manually. All the taxpayers must choose the appropriate HSN codes available in the list.

Why Compliances Are Important

In case of non-compliance with the latest rule, among other issues, the following may be faced:

Companies can avoid such issues and maintain smooth compliance with GST regulations by raising awareness and taking proactive measures.

Conclusion
The introduction of HSN codes in GSTR-1 and GSTR-1A in Phase III is a major step toward the betterment of GST compliance and accuracy. Mandatory drop-down selection, validation rules, and enhanced features make the process easy for businesses and promote transparency in taxation.
For that, companies should update their systems, train the teams, and be vigilant for validation warnings. Need help?
Contact Book My Accountant for expert assistance with GST compliance, tax planning, and more. Together, let's simplify your tax journey!

Book My Accountant

TDS on Metal Scrap under GST: A Complete Guide

The Indian government has brought into effect new TDS provisions under the framework of Goods and Services Tax-specifically targeting all transactions in the form of metal scrap. With effect from 10 October 2024, these rules are aimed at improving tax compliance and transparency in the scrap materials sector. Let us dive into this and see what it will mean for the businesses buying and selling metal scrap.

What is TDS in GST for Metal Scrap?

TDS is a mechanism where tax is deducted at source at the time of making payment to the seller. Based on the latest GST rules, businesses, whose subject of business is procurement of metal scrap, are dutifully liable to deduct TDS at the time of entering into qualifying transactions.

And the transactions which attract TDS are under Chapter 72 to Chapter 81 of the Customs Tariff Act 1975, which comprises of:

Important Provisions of the TDS Rule

TDS shall apply on metal scrap under GST if the aggregate value of supplies exceeds ₹2,50,000 per transaction. The taxable value of scrap material will be deducted for deduction, and not the total invoice value.

Rate of deduction is provided as 2%, split as below:

Who must deduct TDS?

The Ministry of Finance issued Notification No. 25/2024-Central Tax on October 9, 2024, amending the earlier Notification No. 50/2018-Central Tax to clarify the Tax Deduction at Source (TDS) provisions under Section 51 of the CGST Act, 2017. Section 51 of the CGST Act 2017 deals with the mechanism of Tax Deduction at Source (TDS).

TDS provisions under Section 51 of the CGST Act shall not apply to the supply of goods or services between certain categories of persons specified in clauses (a), (b), (c), and (d) of sub-section (1) of Section 51 except for those specified in clause (d).

Process for becoming compliant

If you are a buyer dealing with metals scrap, here is what you need to do to become compliant with the new GST rules:

Obtain a Separate GST Registration

The buying party would be required to apply for a separate GST registration under REG-07 in order to start deducting TDS. Subsequently, the buyer can claim TDS on eligible transactions with which they will have to file a return month under Form GSTR-7. Simultaneously, the system generates a certificate of TDS, just like Form 16A under the Income Tax Act, after filing GSTR-7.

File Monthly Returns

The buyers who deduct TDS are liable to file GSTR-7 for the month. The return should be filed by the 10th of the next month where a payment liability will arise along with the return filing. This return should state the amount of TDS deducted.

Provide TDS Certificates

Once the return is filed by the purchaser, he shall issue the TDS certificate, GSTR-7A, to the supplier. Therefore, he would get the TDS credit to his ledger of cash at the end of every month.

TDS not Applicable in Respect of Metal Scrap

It is another important aspect that TDS under GST is not levied upon importing the metallic scraps. It does not draw any TDS deduction under such rules if the buyer imports scraps from abroad.

Conclusion

The introduction of TDS on metal scrap under the GST is perhaps a landmark to ensure better tax compliance in the industry. With the above move, the government has consequently mandated 2% TDS on all transactions, with an element of transparency and accountability that can be availed by the suppliers in due time.

Ensure your business is GST compliant with these new provisions by registering for GST TDS and the timely returns filing, contact Book My Accountant today for help with GST registration, TDS filing, and much more in accounting.