Nidhi company regulation: membership, fund thresholds and restricted deposit and lending framework govern operations and disclosures.
The rules establish a regulatory framework for Nidhi companies: they must be public limited companies named 'Nidhi Limited', accept deposits from and lend only to members, meet membership and Net Owned Funds thresholds and prescribed fund-deposit ratios, file specified statutory returns, disclose detailed deposit application and financial information, restrict activities and branching, limit loans to members with defined securities, tenors and interest rate caps, recognise income on non performing assets only on realisation, and comply with governance, audit and penalty provisions enforced by the Registrar, Regional Director and Central Government. (AI Summary)

Provisional assessment permits provisional tax payment pending final valuation, subject to bond, security and adjustment on finalization.
Provisional assessment allows a taxable person unable to determine value or rate to apply on the common portal for permission to pay tax provisionally, specifying reasons, proposed provisional value or rate, and undertaking cooperation; the proper officer issues a provisional order and, where permitted, requires execution of a bond (with possible security by bank guarantee) binding the taxable person to pay any difference on final assessment. Final assessment must be completed within six months subject to prescribed extensions, and differences between provisional and final tax are payable or refundable with interest as provided by law. (AI Summary)

Minutes accuracy: typographical errors corrected by subsequent board resolution should not attract prosecution absent intent to deceive or gain.
Errors in board minutes raise compliance concerns under section 118, but the decisive legal issue is whether the mistake was inadvertent and rectified or accompanied by intent to deceive or gain; draft minutes can be revised pre-finalisation and finalized minutes corrected by subsequent board resolution, and an inadvertent typographical error later corrected does not, without mens rea, prima facie constitute a penal offence. (AI Summary)

Provisional attachment of bank accounts is improper solely for alleged product misclassification; discretion and less intrusive measures required.
Provisional attachment under the GST statutory attachment mechanism is a discretionary power to protect revenue where there is reason to believe transactions were suppressed to evade tax. Misclassification of goods, by itself, does not establish intent to evade tax, especially when the taxable person has cooperated, filed returns based on the chosen classification and offered alternative securities. Authorities must exercise discretion, consider less intrusive measures and furnish reasons before provisionally attaching bank accounts; absent such justification the attachment may be set aside. (AI Summary)

Limitation periods paused for the pandemic, with a minimum 90-day revival period and regulated filing movement restored.
The period from 15-3-2020 to 2-10-2021 is excluded in computing limitation for suits, appeals, applications and proceedings; the balance period available as of 3-10-2021 accrues to litigants, and where limitation would have expired during the excluded period all persons are allowed a minimum 90-day limitation from 3-10-2021 unless the actual remaining balance exceeds 90 days. The exclusion applies to arbitration, commercial courts and negotiable instruments time limits and the Government shall permit regulated movement for filing time bound legal applications during containment measures. (AI Summary)

Integrated ombudsman scheme centralisation will not ensure consumer redress without functional internal ombudsmen and enforcement.
The article argues that centralising complaint intake under the Integrated Ombudsman Scheme, 2021 will not ensure effective consumer redress absent functional Internal Ombudsman offices, stricter enforcement, and narrower, less subjective exclusions. It documents recurring harms-unsigned computer generated communications, uncertified e fixed deposit receipts, inconsistent KYC/CKYC application, and onerous nomination procedures-and shows how weak IO implementation, inconsistent Principal Nodal Officer practices, and broad non maintainability grounds enable regulated entities to evade accountability. The author calls for monitored IO implementation, active regulatory enforcement, clearer admissibility rules, and institutional routes for collective grievances. (AI Summary)

Rectification powers of the Settlement Commission allow procedural correction of errors apparent from original disclosures, not fresh factual re adjudication.
Whether the Settlement Commission may rectify its own mistakes is considered in light of the statutory requirement of full and true disclosure for pre-adjudication settlements. Though no explicit textual power to rectify appears in the statute, errors apparent from the original records and admissions should be addressed by the Commission through procedural clarification or rectification rather than by fresh factual adjudication in writ proceedings. (AI Summary)

Positive Net Foreign Exchange requirement: failure to meet cumulative NFE can trigger penal action under SEZ regulatory framework.
SEZ units must meet export obligations and maintain a positive Net Foreign Exchange position cumulatively over the block period; SEZ Rules require Annual Performance Reports and empower the Development Commissioner and Approval Committee to initiate show cause proceedings and penal action under the Foreign Trade Act where NFE is negative across prescribed years or where approval conditions or APR disclosures are breached. In the reported case the unit's APRs recorded negative NFE, alleged misstatements and asset disposals, prompting administrative penalties and directions for fresh APRs as contemplated by the rules. (AI Summary)

E-settlement scheme enables electronic settlement of pending tax applications with limited personal hearings and digital communications.
The e-Settlement Scheme provides for electronic settlement of pending income-tax settlement applications through one or more Interim Board(s) where applicants have not withdrawn, using electronic communications and video-conferencing as the primary modes. It governs random allocation of cases to Interim Boards, empowers Boards to call records and direct local authorities to enquire and report, permits proceedings in Hindi or English, disallows public attendance, and dispenses with personal appearances. The Scheme mandates electronic exchange of notices and responses, digital authentication where applicable, procedures for verification of additional facts, and permits adjournment, publication with modifications, and rectification of orders. (AI Summary)

GST on arbitration awards: post appointed day arbitration services and liquidated damages attract GST; pre GST entitlements do not.
Whether amounts awarded by arbitration for works contracts executed before GST attract GST when received after the appointed day: unpaid contractual amounts, refunds of excess deductions and interest linked to supplies made pre GST are not taxable because their time of supply predates GST. Arbitration services rendered after the appointed day are taxable on a reverse charge basis at the prescribed rate and classified under the specified tariff. Liquidated damages are taxable as a service under Schedule II, and interest forming part of consideration for taxable supplies is includible in value and taxable. (AI Summary)

Password policy should permit user-chosen credentials with guidance to reduce operational friction while maintaining security.
Portal usability and data-integration deficiencies impede tax-filing: disorganized pages, slow login and draft saving, and unreliable persistence of entered data. Authentication should allow continuity of existing passwords or prompt secure re-creation, provide guidance on strong passwords while leaving complexity to user discretion, and improve lockout and login flows. Demat and bank accounts should be auto-populated from KYC-linked depositories. Detailed mandatory disclosures for unlisted shares impose disproportionate burdens; limit exhaustive reporting to instances of control or disposition and exempt small retail holdings. (AI Summary)

GST revenue surge reflects stronger compliance and calls for rate simplification and compensation cess reform to sustain growth.
Enhanced economic activity and administrative reforms have driven near record GST receipts, supported by sectoral demand and digital transaction growth. Compliance measures credited with higher collections include QRMP, nil filing via SMS, return auto-population, GSTN capacity upgrades, blocking of e-way bills and credits, and suspension of serial non-filers. The note recommends structural GST reforms-rate simplification, reconsideration of the compensation cess, expanding the tax base to include petroleum and electricity, and resolving revenue sharing-to sustain revenue gains while easing compliance burdens. (AI Summary)

Settlement agreement bars parallel prosecutions for cheque dishonour; breach gives rise to a fresh offence or remedy under negotiable instruments law.
A settlement agreement that replaces earlier obligations by fresh instruments or payment terms operates to subsume the original complaint; non performance of the settlement gives rise to a fresh cause of action based on the subsequently issued instruments or the breach, rather than permitting simultaneous pursuit of both original and post settlement prosecutions under Section 138. (AI Summary)

Depreciation allocation on composite land and building costs: costs must be reasonably segregated for tax and accounting accuracy.
Where purchase agreements state a composite price, the consideration should be reasonably allocated between land and construction so that depreciation is claimed only on the portion attributable to building. Accounting practice and S.43(1) support estimating construction cost adjusted for consumed life at acquisition, rather than permitting depreciation on the entire composite cost merely because the deed does not state separate amounts. (AI Summary)

GST classification clarified: reclassification of specific goods determines applicable GST rates and compliance treatment.
CBIC Circulars No.163/164 (06.10.2021) clarify GST classification and applicable rates: fresh fruits and nuts remain exempt unless frozen, dried or processed; dried fruits and nuts attract concessional rates. Tamarind and other seeds are taxable when not for sowing. Copra is classified under the copra heading and attracts the concessional rate irrespective of use. Pure henna powder and mehndi preparations attract concessional rates. Brewers' spent grain, DDGS and similar residues attract concessional rates. Heading 3006 and heading 3822 items are covered by the respective concessional entries. Separately identifiable items in bundled sales are taxed under their own headings. (AI Summary)

Rectification of GSTR 3B must follow the statutory mechanism, preventing unilateral electronic amendments and preserving ledgered ITC.
The Supreme Court held that rectification of GSTR 3B is permissible only through the statutory mechanism provided under the GST framework and that registered persons cannot unilaterally amend electronically filed returns. Eligible input tax credit remains in the electronic credit ledger and its use may be postponed until availed in subsequent returns; payment of output tax by cash, despite available credit, cannot be reversed unless law permits. Taxpayers must perform self assessment from books and invoices, and returns remain subject to verification by tax authorities. (AI Summary)

GST liability on merchant trade transactions excluded where goods move between non taxable territories without entering India, altering tax treatment.
Supply under a merchant trade transaction, where an Indian trader procures from a foreign vendor and the vendor ships directly to a foreign buyer without goods entering India, was characterized as an inter state supply attracting IGST when the supplier is located in India; a subsequent insertion in Schedule III prospectively excluded supplies from one non taxable territory to another without entering India from being treated as supply of goods or services, removing GST liability from the date that exclusion commenced. (AI Summary)

Tax option under 115BAC limits exemptions and deductions, requiring careful comparative computation before individuals or HUFs opt.
The provision creates a voluntary tax option for individuals and Hindu undivided families to compute tax under a distinct slab regime if conditions are satisfied, but electing it requires forgoing specified section 10 exemptions and most Chapter VI-A deductions, restricts set-off and carry forward of certain losses, and mandates prescribed treatment of depreciation; taxpayers with business or professional income face sustained application and stricter withdrawal rules, so comparative computations and long-term planning are essential. (AI Summary)

Self-assessment under GST requires registered persons to determine and pay tax and file prescribed returns accurately.
Self-assessment under GST requires every registered person to determine tax payable and furnish the prescribed return each tax period under section 59 read with section 39; the taxpayer self-assesses based on his books and records, pays declared tax, and bears the burden of proof. Returns and filing procedures are prescribed in Chapter IX and accompanying rules, including specific forms for outward supplies, monthly/quarterly returns, composition and non-resident returns, TDS/TCS statements, annual and reconciliation returns, final returns, and ITC declarations. Incorrect self-assessment can invite statutory scrutiny, audits, and enforcement measures under adjacent provisions. (AI Summary)

Human intervention in OIDAR: determine GST scope by automation level, IT mediation, and demonstrable minimal human inputs.
OIDAR classification under GST requires IT mediated delivery, an essentially automated supply and only minimal human intervention, yet the law supplies no objective measure for "minimal human intervention." Administrative rulings and CBIC guidance treat pre recorded or automatically delivered digital content and cloud services as OIDAR, while manually delivered or live interactive services fall outside. Practical assessment should rely on model design (repetitive v. customised), AI maturity and process mapping to demonstrate human inputs; a case by case spectrum approach and improved documentation are urged to reduce disputes. (AI Summary)