April 2023

Capital gains under section 45 of Income Tax act 1961

Income Tax / /
Capital gains under section 45 of Income Tax act 1961

(1) Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54, 54B, 54D, 54E, 54EA, 54EB, 54F, 54G and 54H, be chargeable to income-tax under the head “Capital gains”, and shall be deemed to be the income of the previous year in which the transfer took place. (1A) Notwithstanding anything contained in sub-section (1), where any person receives at any time during any previous year any money or other assets under an insurance from an insurer on account of damage to, or destruction of, any capital asset, as a result of—  (i)  flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or (ii)  riot or civil disturbance; or (iii) accidental fire or explosion; or (iv) action by an enemy or action taken in combating an enemy (whether with or without a declaration of war), then, any profits or gains arising from receipt of such money or other assets shall be chargeable to income-tax under the head “Capital gains” and shall be deemed to be the income of such person of the previous year in which such money or other asset was received and for the purposes of section 48, value of any money or the fair market value of other assets on the date of such receipt shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of such capital asset. Explanation.—For the purposes of this sub-section, the expression “insurer” shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938). 30[(1B) Notwithstanding anything contained in sub-section (1), where any person receives at any time during any previous year any amount under a unit linked insurance policy, to which exemption under clause (10D) of section 10 does not apply on account of the applicability of the fourth and fifth provisos thereof, including the amount allocated by way of bonus on such policy, then, any profits or gains arising from receipt of such amount by such person shall be chargeable to income-tax under the head “Capital gains” and shall be deemed to be the income of such person of the previous year in which such amount was received and the income taxable shall be calculated in such manner as may be prescribed31.] (2) Notwithstanding anything contained in sub-section (1), the profits or gains arising from the transfer by way of conversion by the owner of a capital asset into, or its treatment by him as stock-in-trade of a business carried on by him shall be chargeable to income-tax as his income of the previous year in which such stock-in-trade is sold or otherwise transferred by him and, for the purposes of section 48, the fair market value of the asset on the date of such conversion or treatment shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset. (2A) Where any person has had at any time during previous year any beneficial interest in any securities, then, any profits or gains arising from transfer made by the depository or participant of such beneficial interest in respect of securities shall be chargeable to income-tax as the income of the beneficial owner of the previous year in which such transfer took place and shall not be regarded as income of the depository who is deemed to be the registered owner of securities by virtue of sub-section (1) of section 10 of the Depositories Act, 1996, and for the purposes of—  (i)  section 48; and  (ii)  proviso to clause (42A) of section 2, the cost of acquisition and the period of holding of any securities shall be determined on the basis of the first-in-first-out method. Explanation.—For the purposes of this sub-section, the expressions “beneficial owner”, “depository” and “security” shall have the meanings respectively assigned to them in clauses (a), (e) and (l) of sub-section (1) of section 2 of the Depositories Act, 1996. (3) The profits or gains arising from the transfer of a capital asset by a person to a firm or other association of persons or body of individuals (not being a company or a co-operative society) in which he is or becomes a partner or member, by way of capital contribution or otherwise, shall be chargeable to tax as his income of the previous year in which such transfer takes place and, for the purposes of section 48, the amount recorded in the books of account of the firm, association or body as the value of the capital asset shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset. 32[(4) Notwithstanding anything contained in sub-section (1), where a specified person receives during the previous year any money or capital asset or both from a specified entity in connection with the reconstitution of such specified entity, then any profits or gains arising from such receipt by the specified person shall be chargeable to income-tax as income of such specified entity under the head “Capital gains” and shall be deemed to be the income of such specified entity of the previous year in which such money or capital asset or both were received by the specified person, and notwithstanding anything to the contrary contained in this Act, such profits or gains shall be determined in accordance with the following formula, namely:— A = B + C – D Where, A = income chargeable to income-tax under this subsection as income of the specified entity under the head “Capital gains”; B = value of any money received by the specified person from the specified entity on the date of such receipt; C = the amount of fair market value of the capital asset received by the specified person from the specified entity on the date of such receipt; and D = the amount of balance in the capital account (represented in any manner) of the specified

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Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects under section 44BBB of Income Tax act 1961

Income Tax / /
Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects under section 44BBB of Income Tax act 1961

(1) Notwithstanding anything to the contrary contained in sections 28 to 44AA, in the case of an assessee, being a foreign company, engaged in the business of civil construction or the business of erection of plant or machinery or testing or commissioning thereof, in connection with a turnkey power project approved by the Central Government in this behalf, a sum equal to ten per cent of the amount paid or payable (whether in or out of India) to the said assessee or to any person on his behalf on account of such civil construction, erection, testing or commissioning shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”. (2) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee.

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Capital gains on distribution of assets by companies in liquidation under section 46 of Income Tax act 1961

Income Tax / /
Capital gains on distribution of assets by companies in liquidation under section 46 of Income Tax act 1961

(1) Notwithstanding anything contained in section 45, where the assets of a company are distributed to its shareholders on its liquidation, such distribution shall not be regarded as a transfer by the company for the purposes of section 45. (2) Where a shareholder on the liquidation of a company receives any money or other assets from the company, he shall be chargeable to income-tax under the head “Capital gains”, in respect of the money so received or the market value of the other assets on the date of distribution, as reduced by the amount assessed as dividend within the meaning of sub-clause (c) of clause (22) of section 2 and the sum so arrived at shall be deemed to be the full value of the consideration for the purposes of section 48.

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Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents under section 44BBA of Income Tax act 1961

Income Tax / /
Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents under section 44BBA of Income Tax act 1961

(1) Notwithstanding anything to the contrary contained in sections 28 to 43A, in the case of an assessee, being a non-resident, engaged in the business of operation of aircraft, a sum equal to five per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”. (2) The amounts referred to in sub-section (1) shall be the following, namely :— (a)  the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the carriage of passengers, livestock, mail or goods from any place in India; and (b)  the amount received or deemed to be received in India by or on behalf of the assessee on account of the carriage of passengers, livestock, mail or goods from any place outside India.

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Capital gains on purchase by company of its own shares or other specified securities under section 46A of Income Tax act 1961

Income Tax / /
Capital gains on purchase by company of its own shares or other specified securities under section 46A of Income Tax act 1961

Where a shareholder or a holder of other specified securities receives any consideration from any company for purchase of its own shares or other specified securities held by such shareholder or holder of other specified securities, then, subject to the provisions of section 48, the difference between the cost of acquisition and the value of consideration received by the shareholder or the holder of other specified securities, as the case may be, shall be deemed to be the capital gains arising to such shareholder or the holder of other specified securities, as the case may be, in the year in which such shares or other specified securities were purchased by the company. Explanation.—For the purposes of this section, “specified securities” shall have the meaning assigned to it in Explanation to section 77A33 of the Companies Act, 1956 (1 of 1956).

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Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils under section 44BB of Income Tax act 1961

Income Tax / /
Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils under section 44BB of Income Tax act 1961

(1) Notwithstanding anything to the contrary contained in sections 28 to 41 and sections 43 and 43A, in the case of an assessee, being a non-resident, engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession” : Provided that this sub-section shall not apply in a case where the provisions of section 42 or section 44D or section 44DA or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. (2) The amounts referred to in sub-section (1) shall be the following, namely :— (a)  the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and (b)  the amount received or deemed to be received in India by or on behalf of the assessee on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India. (3) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee. Explanation.—For the purposes of this section,—  (i)  “plant” includes ships, aircraft, vehicles, drilling units, scientific apparatus and equipment, used for the purposes of the said business; (ii)  “mineral oil” includes petroleum and natural gas.

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Notification No 92/2020-Central Tax

Goods & Service Tax / /

[To be published in the Gazette of India, Extraordinary,Part II,Section 3, Sub-section (ii)] Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No 92/2020-Central Tax New Delhi, the 22nd December, 2020 S.O. …… (E).— In exercise of the powers conferred by sub-section (2) of section 1 of the Finance Act, 2020 (12 of 2020) (hereinafter referred to as the said Act), the Central Government hereby appoints the 1st day of January, 2021, as the date on which the provisions of sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of the said Act shall come into force. [F.No. CBEC-20/06/04/2020-GST] (Pramod Kumar) Director, Government of India   

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Bogus Billings, Fake Input Credit, GST Evasion and Arrests

Goods & Service Tax / /

Introduction Let’s face it, the moment a new tax system is introduced, there’s always a group of cunning individuals plotting to dodge it. In India, the Goods and Services Tax (GST) system is no exception. From counterfeit invoices to fabricated input tax credits, the modus operandi of GST evasion in India is as diverse as it is intriguing. So, buckle up and join us as we delve into the murky realm of fake invoices, fake input under GST, arrest provisions, and the strategies employed to outsmart the taxman in India. The Art of Deception: Fake Invoices and Fake Input A Slippery Slope: Understanding Fake Invoices When it comes to GST evasion, fake invoices are the bread and butter of fraudsters. These counterfeit documents are used to claim input tax credits (ITC) illegitimately, dodge taxes, and mask the real transaction trail. Here’s the lowdown on the types of fake invoices commonly used: Bogus billing: The creation of phony invoices for nonexistent goods or services, solely to claim ITC. Round-tripping: The act of moving goods between shell companies, using fake invoices to inflate turnover and claim ITC. Over-invoicing: Inflating the value of goods or services on the invoice to claim higher ITC. The Devil’s in the Details: Fake Input Tax Credits With counterfeit invoices in hand, fraudsters can exploit the GST system by claiming fake input tax credits. This illicit practice undermines government revenue and creates an uneven playing field for honest businesses. Phantom businesses: Fraudsters create fake companies that “sell” goods or services to one another. In reality, no transactions take place, and the sole purpose is to claim ITC. Pass-through entities: Real businesses act as intermediaries for fake transactions, taking a cut for their participation in the scheme. Punishment under section 132 of CGST Act (1) 1[Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences], namely:- (a) supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax; (b) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax; (c) 2[avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input tax credit without any invoice or bill;] (d) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (e) evades tax 3[****]or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d); (f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act; (g) obstructs or prevents any officer in the discharge of his duties under this Act; (h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (i) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (j) tampers with or destroys any material evidence or documents; (k) fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or (l) attempts to commit, or abets the commission of any of the offences mentioned in clauses (a) to (k) of this section, shall be punishable- (i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine; (ii) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for a term which may extend to three years and with fine; (iii) in the case of any other offence where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year and with fine; (iv) in cases where he commits or abets the commission of an offence specified in clause (f) or clause (g) or clause (j), he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both. (2) Where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine. (3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, be for a term not less than six months. (4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section

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Certificate of Share under section 46 of Companies Act 2013

Companies Act 2013 / /

Introduction: Decoding the Certificate of Shares Section 46 Companies Act 2013 You’ve probably heard of the Certificate of Shares under Section 46 Companies Act 2013, but what exactly is it all about? In today’s fast-paced corporate world, understanding the nuances of the Companies Act can give you a competitive edge. So, buckle up, and let’s unravel the mysteries surrounding this pivotal regulation! In this comprehensive guide, we will delve into: The importance of share certificates The issuance process under Section 46 The consequences of non-compliance FAQs on the Certificate of Shares Section 46 Companies Act 2013 So, without further ado, let’s dive in! Section 46 of Companies Act 2013 (1) A certificate, issued under the common seal, if any, of the company or signed by two directors or by a director and the Company Secretary, wherever the company has appointed a Company Secretary, specifying the shares held by any person, shall be prima facie evidence of the title of the person to such shares.  (2) A duplicate certificate of shares may be issued, if such certificate — (a) is proved to have been lost or destroyed; or (b) has been defaced, mutilated or torn and is surrendered to the company.  (3) Notwithstanding anything contained in the articles of a company, the manner of issue of a certificate of shares or the duplicate thereof, the form of such certificate, the particulars to be entered in the register of members and other matters shall be such as may be prescribed.  (4) Where a share is held in depository form, the record of the depository is the prima facie evidence of the interest of the beneficial owner.  (5) If a company with intent to defraud issues a duplicate certificate of shares, the company shall be punishable with fine which shall not be less than five times the face value of the shares involved in the issue of the duplicate certificate but which may extend to ten times the face value of such shares or rupees ten crores whichever is higher and every officer of the company who is in default shall be liable for action under section 447.  The Importance of Share Certificates: More Than Just a Piece of Paper When it comes to owning a piece of the corporate pie, share certificates play a crucial role. These nifty little documents serve as proof of your stake in a company, and they come with several perks: Legal recognition of share ownership Facilitating share transfers Providing evidence for tax purposes Enhancing credibility and transparency Issuing Share Certificates: The Nuts and Bolts of Section 46 Certificate of shares under section 46 Companies Act 2013 outlines the rules and regulations for issuing share certificates in India. Let’s break it down, shall we? Who’s responsible for issuing share certificates? The buck stops with the company’s Board of Directors. They’re the ones in charge of issuing share certificates to all their shareholders. What’s the timeline for issuance? Time’s a-ticking! The Board must issue share certificates within two months from the date of allotment (in case of a new issue) or within one month from the date of receipt of the instrument of transfer (in case of a transfer). What if there’s a delay? Don’t dilly-dally! If the company fails to issue share certificates within the prescribed time, they may face penalties under Section 46(5) of the Companies Act 2013. What details must a share certificate contain? A share certificate should be the spitting image of the company’s identity. It must include: The name of the company The company’s registered office address CIN Number of the Company The certificate number The name of the shareholder The number and class of shares The distinctive numbers of the shares The date of issue Consequences of Non-Compliance: The Price to Pay Failure to adhere to the Certificate of Shares Section 46 Companies Act 2013 can lead to some serious consequences: Penalties for the company and its officers Loss of credibility among shareholders and potential investors Difficulty in raising capital FAQs on the Certificate of Shares Section 46 Companies Act 2013 What is a duplicate share certificate, and when can it be issued? A duplicate share certificate is like a doppelganger of the original. It can be issued if the original certificate is lost, stolen, destroyed, or defaced, provided that the shareholder submits a request along with relevant proof. Can a private company issue share certificates? You bet! Both public and private limited company can issue share certificates as long as they comply with the provisions of the Companies Act 2013. Are share certificates required for dematerialized shares? No siree! Dematerialized shares are held electronically, so there’s no need for physical share certificates. These shares are managed through depositories and participants, streamlining the entire process. Can a shareholder request a split or consolidation of share certificates? Absolutely! Shareholders can request a split (division of one certificate into multiple certificates) or consolidation (combining multiple certificates into one) of share certificates. However, the company may charge a nominal fee for this service. What if a company refuses to issue a share certificate? If a company refuses to issue a share certificate, the aggrieved shareholder can approach the National Company Law Tribunal (NCLT) to seek redressal. The NCLT has the power to direct the company to issue the share certificate. Official website of NCLT is https://nclt.gov.in/ Procedure to issue share certificate The procedure to issue a share certificate generally involves the following steps: Share allotment or transfer: When a company allots new shares to investors or when existing shareholders transfer their shares, the company is required to issue a share certificate to the new shareholder. Board resolution: The company’s Board of Directors must pass a resolution approving the issuance of share certificates. This resolution should include details such as the names of the shareholders, the number of shares allotted or transferred, and the class of shares. Prepare the share certificate: Create the share certificate with essential details, including the company’s name, registered office address, certificate number, name of the shareholder,

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Unraveling the Mysteries of Automated GST Return Scrutiny: A Walkthrough for Modern Businesses

Goods & Service Tax / /

Finance Minister Nirmala Sitharaman on Saturday directed Central Board of Indirect Taxes & Customs to introduce its automated GST return scrutiny by next week and to implement an action plan to increase the taxpayer base through enhanced use of technology. The Goods and Services Tax (GST) is a tax that is levied on the supply of goods and services in India. It has been implemented to simplify the indirect tax system and to increase tax compliance. The Central Board of Indirect Taxes and Customs (CBIC) and the GST Department have been working together to monitor tax evasion and ensure that taxpayers are paying the correct amount of GST. To do this, they have introduced a new system of automated GST return scrutiny. In this blog, we’ll delve into the details of the automated GST return scrutiny by CBIC and GST Department, including what it is, how it works, and what it means for taxpayers. We’ll also answer some frequently asked questions (FAQs) about the new system to help you understand it better. Updates: 11/05/2023: CBIC rolls out Automated Return Scrutiny Module for GST returns in ACES-GST backend application for Central Tax Officers. CBIC has rolled out the Automated Return Scrutiny Module for GST returns in the ACES-GST backend application for Central Tax Officers this week.  This module will enable the officers to carry out scrutiny of GST returns of Centre Administered Taxpayers selected on the basis of data analytics and risks identified by the System. In the module, discrepancies on account of risks associated with a return are displayed to the tax officers. Tax officers are provided with a workflow for interacting with the taxpayers through the GSTN Common Portal for communication of discrepancies noticed under FORM ASMT-10, receipt of taxpayer’s reply in FORM ASMT-11 and subsequent action in form of either issuance of an order of acceptance of reply in FORM ASMT-12 or issuance of show cause notice or initiation of audit / investigation. Implementation of this Automated Return Scrutiny Module has commenced with the scrutiny of GST returns for FY 2019-20, and the requisite data for the purpose has already been made available on the officers’ dashboard. What is Automated GST Return Scrutiny by CBIC and GST Department? The automated GST return scrutiny by CBIC and GST Department is a new system that will help to monitor tax evasion and ensure that taxpayers are paying the correct amount of GST. The system uses advanced algorithms and data analytics to analyze GST returns and identify any discrepancies or errors. If any errors or discrepancies are found, the system will flag the return for further review by the CBIC and GST Department. How Does the Automated GST Return Scrutiny Work? The automated GST return scrutiny system works by analyzing GST returns and comparing them with other data sources such as bank statements, invoices, and other financial records. The system uses advanced algorithms to identify any inconsistencies or errors in the data. If any discrepancies are found, the system will flag the return for further review by the CBIC and GST Department. What Does the Automated GST Return Scrutiny Mean for Taxpayers? The automated GST return scrutiny by CBIC and GST Department means that taxpayers will need to be extra diligent in ensuring that their GST returns are accurate and complete. If any errors or discrepancies are found, the CBIC and GST Department may take action against the taxpayer, including fines or penalties. However, the new system also offers taxpayers the opportunity to rectify any errors or discrepancies before they are flagged by the system. This can help to avoid any fines or penalties and ensure that taxpayers are paying the correct amount of GST. FAQs on Automated GST Return Scrutiny by CBIC and GST Department What is the purpose of the automated GST return scrutiny by CBIC and GST Department? The purpose of the automated GST return scrutiny by CBIC and GST Department is to monitor tax evasion and ensure that taxpayers are paying the correct amount of GST. How will the automated GST return scrutiny system identify errors or discrepancies in GST returns? The system will use advanced algorithms and data analytics to analyze GST returns and compare them with other data sources such as bank statements, invoices, and other financial records. If any inconsistencies or errors are found, the system will flag the return for further review. Can taxpayers rectify errors or discrepancies before they are flagged by the system? Yes, taxpayers can rectify errors or discrepancies before they are flagged by the system. This can help to avoid any fines or penalties and ensure that taxpayers are paying the correct amount of GST. What happens if errors or discrepancies are found in a taxpayer’s GST return? If errors or discrepancies are found in a taxpayer’s GST return, the CBIC and GST Department may take action against the taxpayer, including fines or penalties. The taxpayer may also be required to provide additional information or documentation to explain the discrepancy. Is the automated GST return scrutiny system mandatory for all taxpayers? Yes, the automated GST return scrutiny system is mandatory for all taxpayers who are required to file GST returns. How often will the automated GST return scrutiny system be run? The frequency of the automated GST return scrutiny system is not specified by the CBIC or GST Department. It is expected to be run regularly to ensure that taxpayers are paying the correct amount of GST. Conclusion The automated GST return scrutiny by CBIC and GST Department is a new system designed to monitor tax evasion and ensure that taxpayers are paying the correct amount of GST. Taxpayers will need to be extra diligent in ensuring that their GST returns are accurate and complete to avoid any fines or penalties. The new system also offers taxpayers the opportunity to rectify any errors or discrepancies before they are flagged by the system. If you have any questions or concerns about the automated GST return scrutiny system, it is recommended

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