GST on director remuneration: employee services excluded, non employee director fees taxable and payable under reverse charge by company.
Services rendered by directors in the course of employment (whole time or managing directors receiving salary) are excluded from GST as employee-to-employer services and are not taxable; services rendered by non employee directors (independent, non executive, nominee) are taxable supplies and the company must discharge GST under the reverse charge mechanism. Non employee director fees attract professional TDS treatment, while salary continues to attract salary TDS. Where a director performs both employment and non employment functions, the non employment functions are taxable and liable to reverse charge, warranting clear documentation. (AI Summary)

Transitional credit portal access preserved as reopening allows taxpayers additional opportunity to file TRAN-1 despite prior deadline.
The document addresses obstruction to claiming transitional credit where technical failures of the GST portal prevented timely TRAN 1 filing despite multiple documented attempts; evidential screenshots and help desk records showed unsuccessful uploads and consequent cash payments. Following high court directions to permit electronic or manual filing, the revenue's challenge was dismissed, resulting in an additional opportunity for taxpayers to submit TRAN 1 while the legal question on statutory time limits remains open. (AI Summary)

Rectification of GST returns: court read down circular permitting in period amendments due to portal failures.
The statutory GST scheme provides for system based in period validation and a two stage rectification process for outward and inward supplies and ITC matching; however, non operationalisation of Forms GSTR 2 and GSTR 3 forced use of summary Form GSTR 3B without system checks, delaying matching and ITC reflection. Administrative circulars that restricted in period rectification conflicted with the Act's design. The Delhi High Court read down the restrictive circular provision to permit rectification for the tax period to which the error related where portal failures prevented timely reconciliation. (AI Summary)

Nil GST return by SMS enables registered taxpayers to file verified nil GSTR 3B returns via mobile OTP for compliance relief.
CBIC introduced procedural relaxations and guidance under GST during the COVID 19 pandemic: allowing filing of a Nil return in FORM GSTR 3B via SMS with OTP verification; extending e way bill validity and time limits for issuance of refund rejection orders; and issuing circulars restricting refund of accumulated input tax credit to supplier-uploaded invoices reflected in FORM GSTR 2A while maintaining prior treatment for imports, ISD credits and reverse charge supplies. It also clarified that remuneration treated as salary is outside GST, whereas fees to non employee or independent directors are taxable on the company under reverse charge. (AI Summary)

Board power to restrict appeals contingent on GST Council recommendations; no monetary limit for officers' appeals currently in force.
Section 120 allows the Board to fix a monetary limit for regulating filing of appeals by Central Tax officers only on the basis of recommendations of the Goods and Services Tax Council; because the Council has not fixed any such limit, the Board presently lacks operative power under the CGST Act to prescribe a pecuniary threshold. Subsection (2) would bar appeals below a prescribed limit but permits filing in other cases involving the same or similar question of law; subsections (3) and (4) remove estoppel and require appellate bodies to consider reasons for non filing. (AI Summary)

Late fee reduction and targeted waiver for GST returns, plus extension to seek revocation of cancelled registrations.
The 40th GST Council recommended temporary compliance relief: reduced late fees for GSTR-3B returns for specified past periods (nil if no tax liability; capped fee where tax is due) for returns filed between 1 July and 30 September 2020; interest suspension and reduced interest for small taxpayers for earlier months with staggered notified dates; waiver of fees and interest for May-July 2020 returns filed by September 2020; one-time extension to seek revocation of cancelled registrations until 30 September 2020; and commencement of certain Finance Act, 2020 amendments from 30 June 2020, subject to notifications. (AI Summary)

Suspension of corporate insolvency filings temporarily bars fresh CIRP initiations for defaults arising during the pandemic, with limited exclusions.
The Ordinance establishes a non obstante moratorium preventing fresh CIRP filings under the IBC for defaults arising on or after 25 March 2020 for an initial six month period extendable up to one year, excluding defaults before that date; it excludes Covid related defaults from insolvency triggers, raises the monetary threshold for initiation, and bars insolvency professionals from filing applications in respect of suspended defaults. (AI Summary)

Director remuneration reverse charge: companies must pay GST on non employee director services; salary components remain exempt.
Conflict exists over GST under the reverse charge mechanism on director remuneration: remuneration to non employee or independent directors is taxable and payable by the company on reverse charge; amounts recorded and treated as salaries for employee directors are outside GST under Schedule III, while any separately declared fees subject to professional/technical TDS are taxable to the company under reverse charge. The administrative clarification narrows employee salary exemption but raises uncertainty about other services supplied by directors, prompting companies to consider paying GST under reverse charge on non salary director payments and preserving evidence of employment status. (AI Summary)

GST treatment of director remuneration clarified: non employee directors taxable on reverse charge; employee salaries exempt, other fees taxable.
June 2020 measures introduce Rule 67A enabling OTP verified SMS filing for nil FORM GSTR 3B returns; extend the transition period for persons from the merged Union territory; extend time limits for issuance of orders on refund rejection notices arising during the pandemic; deem validity of certain e way bills extended to a later notified date; restrict refund of accumulated input tax credit to invoices uploaded by suppliers and appearing in FORM GSTR 2A while preserving prior treatment for imports, ISD and reverse charge inward supplies; and clarify GST treatment of director remuneration, taxing non employee directors and treating declared salaries as non taxable employment receipts. (AI Summary)

Input tax credit on COVID related expenditures may be claimable when incurred in course of business and not legally blocked.
Entitlement to input tax credit on COVID related expenditures depends on Section 16(1) usage "in the course or furtherance of business" and exclusions in Section 17(5). Office sanitisation and hygiene expenses qualify as business inputs and are claimable unless expressly blocked. Health related costs (insurance, safety kits, training) become creditable where they are obligatory under law, as by Disaster Management directives, whereas medical treatment is separately exempt. CSR distributions arguably do not constitute voluntary gifts or free samples and thus, given the statutory CSR obligation, may meet the course of business test and attract input credit unless covered by section 17(5)(h). (AI Summary)

GST on director remuneration: non employee directors' fees taxable under reverse charge; employee salaries treated under Schedule III.
CBIC Circular No.140/10/2020 distinguishes non employee directors and employee directors for GST. Remuneration to non employee or independent directors is outside Schedule III and taxable under the Reverse Charge Mechanism under entry 6 of Notification No.13/2017, with the company liable. For employee or whole time directors, amounts treated as salary and subject to salary TDS fall under Schedule III and are not taxable under GST; amounts separately treated as professional/technical fees and subjected to professional fees TDS are outside Schedule III and taxable under entry 6, payable by the company under RCM. (AI Summary)

Restriction on Input Tax Credit: rule ties credit entitlement to supplier return uploads, raising competence and fairness concerns.
A regulatory cap conditions a recipient's entitlement to input tax credit on the supplier having uploaded corresponding invoice details, using supplier return data as the operative basis. The article challenges the rule's legislative competence and procedural basis, arguing that restraints on credit should follow the statutory procedure for returns rather than an omnibus rule making invocation, and highlights practical, evidentiary and reverse charge anomalies that expose bona fide recipients to loss of credit absent fraud or collusion. (AI Summary)

Fast Track Further Public Offer relaxations ease eligibility and disclosure rules to expedite FPOs under modified ICDR conditions.
SEBI issued temporary relaxations allowing issuers meeting Regulation 155 conditions to use the Fast Track Further Public Offer route with specified exemptions from filing and post observation submission requirements under the ICDR Regulations. The circular lowers the market capitalisation threshold for eligibility, narrows the effect of pending show cause or prosecution proceedings by requiring disclosure rather than a blanket bar, permits settled matters only if settlement terms are complied with, and mandates appropriate restatement or disclosure of audit qualifications. These relaxations apply for a limited time, take immediate effect, and exclude warrants. (AI Summary)

Goods and Services Tax revenue trends show stabilisation and uneven growth across central, state, integrated and cess components.
GST revenue collection from 1 July 2017 to March 2020 is analysed by component - gross GST, Central Tax, State/Union Territory Tax, Integrated Tax and the Compensation Cess - using monthly and statewise tables. The piece records overall stabilisation with year-on-year growth in aggregate receipts, rising central and state tax inflows, divergent performance between domestic and import components of integrated tax, and modest growth in compensation cess collections. (AI Summary)

Compensation cess on motor vehicles imposes variable ad valorem levies and exemptions affecting intra and inter state supplies.
Compensation cess is an additional ad valorem levy on specified intra State and inter State supplies to compensate States for GST transition losses. Motor vehicles are specifically scheduled: categories distinguished by seating capacity, engine capacity, propulsion and length attract distinct cess treatment, while defined classes such as ambulances, electrically operated vehicles, three wheelers, certain short or small engine vehicles and used vehicles (subject to input tax credit constraints) receive nil or reduced cess. Notifications set precise rates and conditional concessions for leasing and prior purchases. (AI Summary)

COVID Emergency Credit Facility now covers all companies, coupled with liquidity commitments and potential corporate tax deadline relief.
The COVID Emergency Credit Facility applies to all companies, providing liquidity support and commitments to resolve access issues and ensure clearance of government department dues. Policy signals include consideration of extending the deadline for the reduced corporate tax rate on new investments, inviting industry input on corporate and securities compliance deadlines, noting that GST rate changes require council approval, and commencement of significant income tax refunds to corporates. (AI Summary)

Penalty for false or omitted accounting entries: expanded liability for users and providers of fake invoices, enforceable during tax proceedings.
Section 271AAD creates penal liability for false entries in, or omission of entries from, books of account and for persons who cause such entries, with penalty equal to the aggregate amount of the identified entries. The explanation limits false entries principally to forged or falsified documentary evidence and invoices issued without actual supply or from non-existent persons. The provision applies prospectively where books are maintained, is invoked during proceedings under the Act, allows concurrent penalties with other provisions, and places the burden on revenue to prove defaults and causation. (AI Summary)

Advance ruling clarifies GST liability and is binding on the applicant while permitting appeal to an appellate authority.
The AAR issues binding advance rulings to applicants on specified GST questions-classification, notification applicability, time and value of supply, input tax credit admissibility, tax liability, registration, and supply characterization-subject to appeal to AAAR; rulings bind only the applicant and the concerned officer, follow prescribed filing and hearing procedures, allow manual filing where electronic means fail, and permit rectification of apparent mistakes within a limited period, with both authorities vested with civil court-like powers for discovery, attendance and document production. (AI Summary)

Delayed payment liability requires buyers to pay suppliers within agreed terms and triggers compound interest and council referral remedies.
Buyers must pay suppliers by the agreed date or within the statutory maximum; failure to pay attracts compound interest with monthly rests from the appointed day at a notified multiple of the bank rate. Suppliers may refer disputed amounts to the Micro and Small Enterprises Facilitation Council which will conduct conciliation or refer to an alternate dispute resolution centre and, where conciliation fails, proceed to arbitration under the Arbitration and Conciliation Act, 1996; references are to be decided within the prescribed period. (AI Summary)

Prior approval requirement: approvals must reflect application of mind or assessments in search cases risk invalidation.
Assessments in search cases require prior approval by a Joint Commissioner level authority after substantive review; approvals granted mechanically or without sufficient time to examine seized material, appraisal reports and draft orders defeat the statutory safeguard and may render assessments vulnerable to annulment. Approving officers must receive the record timely and apply their mind, and last minute or perfunctory sanctions do not satisfy the mandatory purpose of prior approval. (AI Summary)