NEW DELHI: There is bad news for entities that availed of input tax credit (ITC) for GST based on bogus invoices without receiving the goods. The Allahabad high court has dismissed a petition and ruled that evidence of payment of toll and freight is required to be submitted to prove genuineness of a transaction. The order came in a case filed by Malik Traders, which deals in waste materials and scrap, and had claimed input tax credit of over Rs 6 lakh from April to September 2019. Tax authorities in Uttar Pradesh had rejected the claim and penalty of over Rs 6 lakh was imposed for incorrectly availing ITC, which was challenged by Malik Traders. The state argued that to avail ITC certain conditions had to be met and it could not be claimed without actual physical movement of goods or the genuineness of transaction. It said that the petitioner was duty bound to prove beyond any reasonable doubt and establish that actual transaction took place and simply furnishing the details of tax invo...

📢 Output Reconciliation ➡️ a. Reconcile GSTR-1 and GSTR-3B with the company's financial records to identify and rectify any discrepancies. ➡️ b. Verify and reconcile electronic invoices (e-invoices) with the financial records and the Invoice Reference Number (IRN) portal. ➡️ c. Match and reconcile E-way Bill data with the financial records and GST returns. ➡️ d. Verify and reconcile debit and credit notes with the financial records and GSTR-1 & GSTR-3B. ➡️ e. For export transactions, cross-reference shipping bill details with the information reported in GSTR 1. ➡️ f. Ensure accurate reconciliation of nil-rated, exempt, and non-GST supplies as per the financial records and GST return filings. 📢 Input Reconciliation ➡️a. Reconcile Input Tax Credit (ITC) available and actually availed as per the company's financial records with the figures reported in GSTR-3B. Rectify any discrepancies found. ➡️ b. Initiate communication with suppliers when inputs reflected in GSTR-2B do not...

*TCS @ 20% from 01-10-2023 on foreign remittances: Important features* 1. *Exemption thershhold limit of 7 lacs* per financial year per individual shall apply to remittance under liberalized remittance scheme (LRS). No threshold exemption for overseas tour packages 2. *TCS Rates for LRS*: On amount exceeding Rs. 7 lacs, TCS shall be collected : i. @ 0.5% on remittance for *education financed by loan* taken from financial institution ii. @ 5% on remittance for *education not financed* by financial institution. Note : Remittance for *education shall include* tickets for study abroad, tuition fee and other fee to educational institute and other day to day expenses under *codes S0305 or under S1107* iii. @ 5% on remittance for *medical treatment* (including ticket of patient and his attendant and medical expenses and day to day expenses for medical treatment) made under *Code S0304and Code S 1108*. iv. @ 20% on *any other purpose* for remittance under liberalized remittance scheme. 3. *Lib...