Relaxed investment limits for unlisted NCDs extended, giving mutual funds additional time to meet compliance deadlines.
The circular permits continued holding and industry-wide grandfathering of certain "identified NCDs," exempting them from the general prohibition on mutual fund investment in unlisted debt instruments, while preserving due diligence obligations and other investment restrictions. It extends regulatory compliance deadlines for mutual funds to align scheme debt portfolios with prescribed limits, applying to mutual funds, AMCs and trustees and maintaining that all other applicable investment restrictions remain in force. (AI Summary)

EPF advance for pandemic relief: online claims permitted with Aadhaar/KYC, bank proof, capped by wage-based limit and once-only entitlement.
EPFO permits a one time COVID 19 EPF advance for members, including those who have left service but not withdrawn funds. Applications are filed online or via UMANG using Aadhaar OTP; employer digital approval may be needed for KYC. Mandatory bank verification requires a cheque leaf, passbook page or bank statement showing name, account number and IFSC. The advance is capped by a wage based limit that can reduce payout below the percentage of PF balance. EPFO targets processing within three working days; the facility is available until the pandemic prevails. (AI Summary)

Shopkeepers and employers should uphold wage and rent obligations during lockdowns; force majeure should not be used to evade payments.
Employers should pay at least part of salaries to low-paid clerks, peons and factory workers during lockdowns; deferment or negotiated reductions may be sought when cashflow is constrained, but invoking force majeure to evade rent or wage obligations is criticised because many employees and landlords rely on monthly receipts. (AI Summary)

Doctrine of mutuality undermined where non members contribute or a dominant member exercises overriding discretion, affecting tax exemption.
The court applies the doctrine of mutuality by testing identity between contributors and beneficiaries, the entity's obedience to member mandate, and the impossibility of profit from self contribution; it finds that non member contributions, discretionary parental payments, parental control of management, lack of entitlement to surplus by contributors, and the entity's commercial operations defeat mutuality and preclude treating surplus as non taxable. (AI Summary)

GSTR-3B compliance: summarised return requiring disclosure of outward supplies, input tax credit details and payment settlement.
GSTR-3B is a summarised monthly return where taxpayers disclose aggregate outward supplies, reverse-charge inward supplies and segregated input tax credit (eligible, reversed and ineligible). The return is completed via the portal question-flow with Tables 3.1 and 3.2 for supplies, Table 4 for ITC availability, reversals and ineligible ITC, Table 5 for inward supply classifications and Table 5.1 for interest and late fee. The portal workflow displays electronic cash and credit ledger balances, performs offsets, accepts challan payments, and requires a declaration before electronic verification and acknowledgement. (AI Summary)

Liquidity facility for mutual funds enables banks to on lend via short term repos to relieve MF redemption pressures.
A Special Liquidity Facility for Mutual Funds permits eligible banks to obtain central bank repo funding and exclusively use it to on lend to mutual funds or to purchase/undertake repos against investment grade corporate bonds, commercial paper, debentures and certificates of deposit held by mutual funds. The facility follows LAF collateral and haircut norms, uses electronic bidding with pro rata allotment if oversubscribed, and allows the financed assets to be classified as Held To Maturity beyond the normal limit while exempting such exposures from banks' capital market exposure limits. (AI Summary)

Export valuation cap restricts export value relative to domestic like goods, limiting refund of unutilised input tax credit.
The amendment adds a valuation constraint to the Rule 89(4) refund formula for unutilised Input Tax Credit on zero-rated exports without payment of tax: turnover of zero-rated supply used in refund computation is now limited to the lesser of the declared export value and a capped value derived from the value of like goods in the domestic market supplied by the same or a similarly placed supplier. The change applies only to goods exported without payment of tax, is prospective to the notification, and raises questions on comparability, unit versus aggregate measurement, and timing of valuation. (AI Summary)

Currency risk management: exporters urged to use forward cover to hedge dollar-driven volatility and protect export earnings.
The article advises Indian exporters to mitigate pandemic-induced foreign exchange risk by using forward cover and other hedging instruments or by transacting in INR, noting the US dollar's dominant influence on USD INR movements, the RBI's temporary dollar swap facility to address dollar shortages, and the limited depth of India's derivatives market. (AI Summary)

Job work under GST: differing tax rates for processing services and principal's compliance for movement and return of inputs.
Principal-sent inputs, semi-finished goods or capital goods for job work must be dispatched under a delivery challan and are not treated as supply on dispatch; e-way bill rules apply when value thresholds are exceeded. The principal must retrieve inputs within one year and capital goods within three years (extensions possible by the Commissioner), failing which the goods are deemed supplied to the job worker at dispatch and tax becomes payable. Delivery challan particulars and quarterly reporting in GST ITC-04 are mandatory, and scrap from processing may be supplied by either party. (AI Summary)

Use of complete eight-digit HS codes urged; non-compliance may prompt licensing and import restriction measures.
Import classification requires use of complete eight-digit HS codes in the Bill of Entry where specific eight-digit codes exist; importers must avoid using the residuary "Others" category, submit suggested eight-digit codes if current codes are insufficient, and note that persistent misuse may prompt converting such items from free to restricted status and imposition of a licensing regime. (AI Summary)

Vivad se Vishwas eligibility clarified: specified pending income tax disputes may be settled under defined computation and exclusion rules.
Vivad se Vishwas permits settlement of specified pending income tax appeals, writs and related proceedings as of the specified date, with disputed tax defined as the tax (including surcharge and cess) on the contested income or the tax that would be restored if the department prevailed; exclusions include AAR matters not determining total income, certain search and seizure assessments above a threshold, non income taxes, and instituted prosecutions, while procedural rules require consolidation of all issues in a single appeal and specific declaration schedules for set aside, DRP or enhancement cases. (AI Summary)

IGST refund eligibility narrowed where suppliers availed specified notifications, impacting exporters importing under advance authorisation.
The Explanation added to Rule 96(10) by Notification No.16/2020 CT (23.03.2020) was given retrospective effect from 23.10.2017, but on reviewing the sequence of prior substitutions and the Gazette effective date of Notification No.54/2018, the Explanation should instead be effective from 09.10.2018. Absent corrigendum, retrospective application risks recovery of IGST refunds from exporters who imported under Advance Authorisation and paid IGST while availing only Basic Customs Duty exemption; the author urges CBIC to withdraw or correct the retrospective dating to avoid litigation and hardship. (AI Summary)

Input Tax Credit entitlement: registered taxpayers may self-assess and claim credit subject to documentary and matching conditions.
Input Tax Credit under GST allows a registered taxable person to claim credit for taxes paid on inward supplies of inputs, capital goods and services used in the course or furtherance of business, provided they hold required invoices or debit notes, goods/services have been received, payment to the supplier is made within the prescribed period, and the supplier has paid tax and uploaded invoice details. Certain categories are expressly eligible or ineligible; claims are self-assessed, reflected in the Electronic Credit Ledger, and matched to supplier-uploaded invoices in return filings. (AI Summary)

Renting and leasing classification under GST determines tax treatment based on asset type, possession, operator provision and use.
GST classification of renting, leasing and licensing depends on the asset type, the recipient's possession and control, provision of operator or ancillary services, and the purpose of use. Residential lettings for bona fide residence are exempt, agro land and agro machinery for cultivation are exempt, while leasing of goods without operator follows tax on like goods; transport with operator and IP licensing are taxed according to the service character and applicable Service Accounting Codes. (AI Summary)

E Way bill integration with vehicle registry blocks bill generation until vehicle registration is updated with RTO or helpdesk intervention.
Integration of the e way bill portal with the Vahan vehicle registry prevents e way bill generation when the vehicle number is not present or verified in Vahan; users must verify the vehicle on the Vahan portal and approach the concerned RTO to update, correct, or consolidate registration details (including addressing temporary TR registrations) so the e way bill system will permit generation, or lodge a grievance with the e way bill helpdesk if Vahan shows the vehicle but the e way portal does not. (AI Summary)

Extension of AGM deadline for affected companies permits later convening amid COVID 19 restrictions without statutory violation.
The MCA permitted companies with financial years ending 31 December 2019 to hold their AGMs within a nine month period from year end without being treated as violating the Companies Act, acknowledging COVID 19 constraints; the clarification adjusts statutory references to due dates and excludes companies holding their first AGM. The relief is based on the Act's definition of financial year and the six month AGM requirement, and applies to companies with January-December accounting periods and to entities whose financial year was otherwise approved for consolidation purposes only as specified. (AI Summary)

Service of notices under GST: prescribed physical, postal, electronic, publication and affixation modes determine deemed service.
Service of notices and other communications under GST may occur by physical delivery to the addressee or authorised representatives, dispatch by registered/speed post or courier with acknowledgement due, electronic transmission to the registered e mail or availability on the common portal, publication in a local newspaper, and, if none are practicable, affixation at the last known place of business or on the issuing officer's notice board. Communications are deemed served when tendered, published or affixed; postal dispatch is deemed received after normal transit unless disproved. (AI Summary)

Loan moratorium deferment: borrowers must seek bank approval; covers term loans and interest, excludes revolving credit.
Borrowers must request bank approval for a COVID 19 loan moratorium; it is a deferment, not a waiver, and requires board approved bank policies. If granted, lenders may permit suspension of both principal and interest on term loans (including home, personal, education, auto and consumer durable loans). Revolving credit such as credit cards is excluded. For businesses, deferment is limited to interest on working capital loans, with accumulated interest payable after the deferment period and no change in loan terms or asset classification. (AI Summary)

Corporate Liquidation Account: unclaimed liquidation proceeds must be deposited, reported and claimed under prescribed regulatory forms.
Liquidators must pay unclaimed dividends, undistributed proceeds and other stakeholder balances into a Corporate Liquidation Account before dissolution, deposit amounts within the prescribed period with income earned, obtain receipts, maintain a register, submit Form I and Form H particulars to the Board and authority, and enable stakeholder withdrawal via Form J; the Board keeps a ledger, appoints a custodian for withdrawals, audits accounts annually, and transfers amounts unclaimed for fifteen years to the Consolidated Fund of India. Parallel account and reporting requirements apply for voluntary liquidations. (AI Summary)

Extension of filing timelines for name reservations and resubmissions granted, easing incorporation compliance during pandemic disruptions.
Extension of filing timelines for name reservations and resubmissions was provided as relief for companies and LLPs affected by pandemic disruptions. Name reservation periods for new incorporations, company name changes and LLPs are extended for reservations expiring within the affected window, and resubmission (RSUB) validity for SRNs with deadlines in that window is extended. SRNs already marked NTBR may receive case-by-case extension; forms will not be marked NTBR solely for non-resubmission during the extension. (AI Summary)