Valuation for inter branch supplies: invoice value may serve as open market value when recipient is eligible for full input tax credit.
Where an open market value exists, Rule 28's provisos operate independently: a supplier may opt for 90% of the unrelated recipient's sale price for "as such" onward supplies, or, alternatively, when the recipient distinct person is eligible for full Input Tax Credit, the invoice value may be treated as the open market value for valuation of the inter branch supply. (AI Summary)

Portal accessibility failures hinder e verification and DSC use, forcing adjournment requests and urging restoration of document upload options.
Operational failures of the new tax portal impede taxpayers by preventing DSC registration, obstructing document upload tied to e verification, removing prior upload functionality, and imposing additional OTP requirements; these issues force taxpayers to seek adjournments and justify requests for allowance to file without e verification, restoration of legacy upload capability, reliance on existing account records and earlier submissions, and granting of longer adjournments until portal functionality is restored. (AI Summary)

Faceless penalty proceedings should be limited to genuine concealment to prevent unnecessary taxpayer harassment.
Faceless penalty proceedings under section 271(1)(c) often proceed unnecessarily-via omnibus notices, contested legal views, inadvertent mistakes, or minor disallowances-causing harassment when relevant assessment and appeal records already reside on the e filing portal. The faceless scheme can enable authorities to drop unsuitable penalty matters impartially, but current practice of requesting portal documents, imposing short compliance timelines, and requiring burdensome e verification undermines that potential. A CBDT circular is recommended to limit initiation of such penalties, grant faceless officers portal access, allow non e verified uploads, provide reasonable timelines and video hearings, and clarify treatment of penalties during appeals. (AI Summary)

Self-certified annual return requirement replaces audited reconciliation, shifting GST annual compliance and enabling exemptions for classes.
The Finance Act, 2021 omitted the mandatory audit and audited reconciliation requirement for GST annual returns and substituted provisions allowing eligible taxpayers to file annual returns and reconciliation statements on a self-certified basis; the Commissioner is empowered to exempt classes of taxpayers. CBIC notifications effective 1 August 2021 amend Forms GSTR-9, 9A, 9B and GSTR-9C (removing part B) and prescribe electronic filing, specified thresholds for furnishing self-certified reconciliation, and exemption mechanics for certain taxpayers. (AI Summary)

Faceless penalty proceedings require authorities to rely on portal records and stop demanding documents already online.
Faceless penalty proceedings require authorities to consult and rely on documents and filing metadata available in the taxpayer's e filing account rather than repeatedly demanding copies of assessment orders, appeal records, or scheme declarations; where a return was filed within the allowed time the authority should verify portal records and record that fact to discontinue penalty action. The note also identifies portal migration, mandatory e verification, DSC registration issues, and short compliance timelines as sources of procedural hardship. (AI Summary)

Exempt supply: threshold-based maintenance charges raise whether input tax credit must be proportionately reversed under GST.
The core issue is whether ITC must be reversed for RWA maintenance contributions that are exempt only up to a specified monthly threshold. Commentators note conflicting administrative guidance and a court view that only the excess over the threshold is taxable. One position contends partial exemption means the supply is not wholly exempt and no proportionate ITC reversal is required; the counterposition treats amounts within the threshold as exempt supplies, requiring ITC reversal under GST reversal rules. (AI Summary)

Self-certified reconciliation replaces mandatory accountant audit for annual GST returns, shifting responsibility to the registered taxpayer.
CBIC Notifications No. 29, 30 and 31 (effective 01.08.2021) remove the statutory audit requirement by omitting subsection (5) of section 35 and substitute section 44 to permit a self-certified reconciliation statement; they substitute Rule 80 to align filing procedures and thresholds, specify filing of Forms GSTR-9/9A/9B and Form GSTR-9C (self-certified) for taxpayers above the turnover threshold, amend form instructions to allow optional reporting of certain tables for FY 2020-21, and amend GSTR-9C to remove auditor certification in favour of taxpayer verification. Notification 31 exempts small taxpayers from filing the annual return for the specified year. (AI Summary)

Penalties under insolvency code impose criminal and disciplinary sanctions for misconduct during the corporate insolvency resolution process.
The Code criminalises concealment, falsification, false representations, material omissions, and contraventions of moratorium or approved resolution plans by officers of the corporate debtor, prescribing specified terms of imprisonment and fines. Creditors and corporate applicants who knowingly furnish false information or authorise moratorium breaches face penal consequences. Insolvency professionals incur criminal liability for deliberate contraventions and regulatory disciplinary monetary penalties, with a graduated penalty framework specified by the Board for enumerated non compliances. (AI Summary)

GST procedural enforcement: CBIC confirms summons, searches and investigations unaffected, with annual return amendments effective from August.
CBIC clarified that scrutiny of returns, issuance of summons, searches, enquiries, investigations and consequential arrests under GST are not affected by the Supreme Court's limitation order. CBIC notified effective date 01.08.2021 for Finance Act, 2021 amendments, updating annual return requirements and exempting certain taxpayers while permitting self-certification of Form GSTR-9C. (AI Summary)

Director compliance: mandatory identification, disqualification gates and ongoing fiduciary and disclosure obligations govern corporate governance.
Directorships are governed by structured classes of directors and statutory gatekeeping rules: eligibility requires age, DSC and written consent, while disqualification arises from insolvency, specified convictions, judicial orders, failure to obtain a Director Identification Number, defaults in company filings or payments and limits on concurrent directorships. The Director Identification Number is mandatory and subject to prescribed application, surrender and intimation procedures. Appointments occur at incorporation, by shareholders, by the board for specified vacancies and by small shareholders or tribunal; resignation, removal, rotation, vacation of office, disclosure obligations and a defined set of statutory forms and filings impose continuing compliance duties. (AI Summary)

Vague statutory notice defects undermine reassessment and penalty proceedings; notices must specify grounds and recorded reasons.
A valid notice for penalty or reassessment must be clear and specific: penalty notices must identify the particular limb relied upon rather than use omnibus printed forms, and reassessment notices under sections 147/148 must state whether assessment or reassessment is proposed and whether income or loss is targeted. The assessing officer must record cogent reasons, examine the return on record, and the sanctioning authority must show application of mind; recorded reasons should accompany the notice, objections allowed, and a speaking order issued if proceedings continue. (AI Summary)

Essential supply protection: electricity during moratorium cannot be disconnected, charges treated as CIRP process costs recoverable later.
Electricity is an essential supply protected by the moratorium and cannot be terminated during CIRP except for unpaid current dues; however, electricity charges incurred during the moratorium are treated as Corporate Insolvency Resolution Process costs and are recoverable through the resolution process (or in liquidation waterfall) rather than as immediately enforceable month to month claims, although the connection must not be disconnected while moratorium subsists. (AI Summary)

Annual return obligation revised: audit and reconciliation requirements dispensed for many registered persons, with targeted turnover exemptions.
The Finance Act, 2021 and amended Rules, effective 01.08.2021, omit section 35(5) removing the mandatory tax audit and reconciliation certificate and substitute section 44 to require most registered persons (with specified statutory exclusions) to furnish an annual return electronically, which may include a self-certified reconciliation statement. Rule 80 now prescribes filing Form GSTR-9 by 31 December, Form GSTR-9A for composition taxpayers, Form GSTR-9B for tax collecting e-commerce operators, and Form GSTR-9C for registrants exceeding the turnover threshold. (AI Summary)

Revocation of registration: officer may only verify returns and payment; ITC disputes require assessment proceedings.
Revocation of registration is limited to verifying that pending returns are filed and tax, interest, penalty and late fees are paid; assessment of ITC entitlement lies outside that revocation process. Rule 86A allows senior officers to restrict debit from the electronic credit ledger where there is reasoned belief of fraudulent or ineligible credit, but the restriction must be reasoned and ceases after one year, and its use where supplier non-payment is the sole basis has attracted legal challenge. (AI Summary)

Financial assistance for MSMEs expands credit, equity and liquidity support and includes parallel tax-timing relief measures.
Government initiatives supply targeted financial assistance to MSMEs through subordinate debt, collateral-free automatic loans under an emergency credit guarantee scheme, equity infusion via an MSME Fund of Funds, a special refinancing facility for on-lending by a development finance institution, credit guarantee schemes for microfinance lending, and special liquidity and partial credit guarantee schemes for NBFCs, HFCs and MFIs. Complementary taxation reliefs include extensions of compliance timelines, corporate tax refunds, deferred eligibility dates for deductions and concessional interest for delayed tax payments. (AI Summary)

Online alcohol sale regulation may enable home delivery and reshape distribution, contingent on state excise policy changes.
States introduced temporary COVID related taxation and operational restrictions that, together with supply chain and demand shocks, depressed revenues and margins across the alco beverage sector. Most state excise regimes still prohibit online sale and home delivery, but limited pilot permissions point to a regulatory opportunity: if states amend excise rules to permit e commerce and home delivery, distribution channels and market dynamics could be materially reshaped. (AI Summary)

Going concern exemption prevents GST on business transfers, but closure or surrender triggers tax on closing stock.
GST treats transfer of business as a supply and deeming provisions make transfers without consideration and closure or surrender of registration taxable, causing closing stock and assets to be chargeable. An exemption for transfer as a going concern means such transfers are not subject to GST, and related provisions permit transfer of input tax credit and liabilities to the transferee. If a taxable person dies, transfer or continuation as a going concern avoids GST, while closure by heirs attracts GST on closing stock and assets. (AI Summary)

Classification of alcohol-based hand sanitizers as disinfectants leads to GST at the disinfectant tariff rate, with a temporary concession applied.
Alcohol-based hand sanitizers are classified as disinfectants rather than medicaments, based on common parlance and functional use in external hand hygiene; licensing under drug law and WHO recommendations do not change this classification. Consequently, sanitizers attract the GST rate applicable to disinfectants under that tariff heading, subject to any temporary concessional notifications issued for specified periods. (AI Summary)

Defective reassessment notice issued after new provisions: taxpayers may file preliminary objections to challenge procedural invalidity.
Notices issued for reassessment after the substituted reassessment provisions took effect may be invalid if they fail to follow the amended procedure, are vague about whether assessment or reassessment of income or loss is proposed, or do not supply recorded reasons and requisite approvals. Taxpayers should file a preliminary objection demanding recorded reasons, order sheets and approvals, may treat the original return as their response pending receipt of reasons, and thereafter challenge the recorded reasons as lacking tangible material or amounting to mere change of opinion. (AI Summary)

Lifetime validity of customs broker licences ends periodic renewals, easing compliance and reducing interface with customs authorities.
The CBIC has abolished periodic renewals for customs broker and authorised carrier licences/registrations effective 23 July 2021, making existing licences/registrations lifetime validity instruments and allowing voluntary surrender. Licences/registrations inactive for over one year may be invalidated to prevent misuse, while Commissioners of Customs can revalidate where inactivity is genuine, thereby reducing compliance filings and Customs-trade interface. (AI Summary)