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        <title>Tax Updates - Daily Update</title>
        <link>https://www.taxtmi.com</link>
        <description>One stop solution for Direct Taxes and Indirect Taxes and Corporate Laws in India</description>
        <category>Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services</category>
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        <ttl>60</ttl>
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<title>WRONG INPUT TAX CREDIT IS NOT FRAUD The Santhome Latex Decision and Its Binding Effect By Adv. G. Jayaprakash Former Superintendent of Central Excise</title>
<link>https://www.taxtmi.com/article/detailed?id=17366</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 74 requires proof not only that input tax credit was inadmissible, but also that it was availed or utilised through fraud, wilful misstatement, or deliberate suppression with intent to evade tax. Disclosure in statutory returns or reconciliation statements, audit detection, and failure to answer an audit report do not automatically establish suppression. Fraud-related allegations and supporting evidence must appear in the show cause notice; appellate proceedings cannot introduce new grounds or cure a defective notice. Where fraud is not established, underlying tax liability may still be determined under the ordinary-demand framework, subject to limitation, natural justice and substantive credit conditions.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Your GST refund isn't stuck because of a rule. It's stuck because of one wrong digit</title>
<link>https://www.taxtmi.com/article/detailed?id=17372</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Under Rule 96, a shipping bill for IGST-paid exported goods is deemed to be the refund application only after GSTR-3B filing, Export General Manifest filing, and matching of shipping-bill and GSTR-1 invoice details. SB005 concerns invoice or shipping-bill data discrepancies, while SB006 concerns missing or inconsistent Export General Manifest data. GST-return errors may be corrected through Table 9A, but shipping-bill-side discrepancies may require customs reconciliation through a concordance table. Exporters should verify invoice, shipping-bill, manifest, registration, authentication, and return-data compliance before seeking automated refund processing.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Refund cannot be withheld under Section 54(11) of the CGST Act merely because the Revenue contemplates filing an appeal</title>
<link>https://www.taxtmi.com/article/detailed?id=17371</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 54(11) of the CGST Act allows withholding of a refund only where an appeal or other proceeding is actually pending and the Commissioner records a reasoned opinion that release would adversely affect revenue because of malfeasance or fraud. Mere contemplation of a future appeal cannot justify refusing to consider a refund arising from an appellate order. Rule 92(2) requires a reasoned order in Part A of Form GST RFD-07, following an opportunity of hearing. Appellate orders bind subordinate officers unless stayed by a competent forum.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Director's Remuneration as Salary Cannot Be Taxed - Valuation and Extended Limitation Also Require a Proper Foundation</title>
<link>https://www.taxtmi.com/article/detailed?id=17370</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Directors' remuneration paid as salary under a genuine employer-employee relationship is excluded from Service Tax and falls outside GST supply. A director's designation does not determine taxability; the relevant inquiry is the capacity in which services are rendered. Salary accounting, salary-related tax deduction, and disclosure as salary income support the employment character of payment. Form 26AS and financial statements may trigger scrutiny but cannot establish taxable value without reconciliation and verification of underlying transactions. Extended limitation requires evidence of wilful suppression or comparable culpable conduct, not merely return default or financial discrepancies.]]></description>
<category>Service Tax</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>NRI Taxation: A Strategic Guide for Global Indians</title>
<link>https://www.taxtmi.com/article/detailed?id=17369</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[NRI taxation depends on residential status and generally covers only income received in India, accruing in India, or deemed to accrue in India. Indian-source income may include employment, property, business, capital gains, and taxable NRO interest, whereas eligible NRE and FCNR interest remains exempt. Planning may use repatriable accounts, tax treaties and foreign-tax-credit mechanisms, and capital-gains relief. Compliance requires accurate residence classification, appropriate tax deduction on NRI property transfers, return filing where required, and foreign-asset disclosure by qualifying Resident but Not Ordinarily Resident individuals.]]></description>
<category>Income Tax</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Appellate Authority has no power to condone delay in filing appeal beyond the outer limit prescribed under Section 107(4) of the CGST Act</title>
<link>https://www.taxtmi.com/article/detailed?id=17368</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 107 provides three months from communication of an order for filing a GST appeal and permits condonation for sufficient cause only within a further one-month period. A communication date declared by an appellant in Form GST APL-01 may constitute deemed communication and commence limitation from that date. The restrictive view treats this as a statutory outer limit that excludes further extension under the Limitation Act, although a contrary judicial view permits wider condonation in appropriate cases. Taxpayers should monitor portal-uploaded orders and accurately state communication dates in appeal memoranda.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GSTR-2A Mismatch - Verification Must Precede ITC Denial</title>
<link>https://www.taxtmi.com/article/detailed?id=17367</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[GSTR-2A/GSTR-3B mismatches may trigger scrutiny and verification of input tax credit, but cannot alone establish wrongful availment. Final liability requires examination of reconciliation, invoices, books, electronic credit ledger, proof of receipt, and supplier-related material. Where denial relies on supplier non-payment under Section 16(2)(c), such default must be verified rather than presumed from non-reflection in GSTR-2A. A show-cause notice limits the grounds and tax heads of adjudication, while competing computations must be reconciled through a reasoned speaking order.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Settled issues under GST. Section 75(7) to be adhered scrupulously.</title>
<link>https://www.taxtmi.com/article/detailed?id=17359</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 75(7) confines an adjudication order to the tax, interest and penalty amounts specified in the show-cause notice and prohibits confirmation on grounds outside that notice. Orders confirming demands exceeding those proposed in the notice are liable to be set aside and remitted for fresh adjudication. Tax officials should invoke the appropriate demand provision, secure responses to notices, and grant personal hearing to ensure natural justice. Taxpayers and tax professionals should examine adjudication orders for compliance with Section 75(7).]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>CESS ON PAN MASALA- MISBORN ACT</title>
<link>https://www.taxtmi.com/article/detailed?id=17107</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Capacity-based cess on pan masala pouch-packing machines is criticised as inconsistent with equality under Article 14 where machines with materially different output capacities attract identical liability. Deemed production and a rigid shutdown-based abatement condition may burden genuine manufacturers whose actual production is substantially lower than presumed capacity. Administrative difficulty in detecting tax evasion cannot replace rational classification, verifiable operational metrics, supply-chain tracking, and field verification. Public-health regulation should remain direct and should not depend on presumptive taxation of harmful commodities.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>What happens to your pre-deposit under section 107 when you get substantial relief and prefer second appeal before GSTAT.</title>
<link>https://www.taxtmi.com/article/detailed?id=17365</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Where a first appellate order substantially reduces a GST demand and the department does not challenge that reduction, the pre-deposit attributable to the extinguished demand may exceed the amount required for the pending second appeal. The excess amount may be claimed as a consequential refund, with applicable interest, without awaiting final disposal before the GST Appellate Tribunal. The first appellate order is binding on the tax authority to the extent of the demand set aside, and continued retention of the excess pre-deposit lacks authority of law.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>The Tax Audit Trap: How Your Cash Transactions Turn a Simple ITR Into a Section 44AB</title>
<link>https://www.taxtmi.com/article/detailed?id=17364</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Presumptive taxation under Section 44AD and the enhanced turnover limit linked to Section 44AB depend on cash receipts and cash payments each remaining within 5% of total receipts and payments. If either exceeds that threshold, the normal audit threshold applies. The audit trigger is based on business turnover rather than the profit percentage declared, while separate commission income does not alter the relevant turnover. Taxpayers should calculate cash percentages, monitor turnover, adopt digital payments where feasible, and arrange an audit when required.]]></description>
<category>Income Tax</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Wrong ITC Is Not Suppression - Section 74 Requires Evidence of Intent to Evade</title>
<link>https://www.taxtmi.com/article/detailed?id=17363</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 74 requires specific evidence that wrongful ITC arose from fraud, wilful misstatement, or suppression of facts with intent to evade tax. Mere inadmissibility of ITC, an incorrect claim, or failure to respond during audit does not by itself establish culpable suppression. The show cause notice must disclose the factual foundation and supporting material for the alleged conduct. Information already reflected in GST returns, reconciliation statements, financial records, or portal disclosures cannot readily be treated as suppressed. A new factual basis for invoking Section 74 cannot be introduced at the appellate stage when it was absent from the original notice.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Casual rather callous manner, in which the application under Section 197 of the Act of 1961 was rejected, that too disregarding binding precedence non application of mind caused displeasure of Courts.</title>
<link>https://www.taxtmi.com/article/detailed?id=17362</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 197 permits lower or nil tax-deduction certificates where the recipient's total income and applicable domestic law or tax treaty justify that treatment. The officer must apply binding precedent on the same issue and cannot refuse relief merely because the revenue may challenge that precedent. Reconsideration in later years may arise only on materially changed facts, such as a permanent establishment or taxable Indian transactions, after notice and recorded findings. Recipients must make full disclosures and cooperate with enquiries. Administrative systems should enable timely implementation of the applicable legal position without unnecessary fresh applications.]]></description>
<category>Income Tax</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Kanban: A Visual System for Controlling Workflow and Inventory.</title>
<link>https://www.taxtmi.com/article/detailed?id=17361</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Kanban applies a pull-based workflow and inventory-control model in which production or service work begins only when demand arises. Visual boards, cards and digital signals track tasks and materials through defined stages, while work-in-progress limits prevent excessive congestion. The system seeks to expose bottlenecks, control inventory, improve material and information flow, reduce waste and support continuous improvement. Effective implementation requires workflow mapping, visual controls, appropriate work-in-progress limits, employee training, performance measurement, accurate data, supplier coordination and periodic review.]]></description>
<category>Auditing</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>"SAY IT, DON'T RECITE IT" - Supreme Court Tells the GST Department: No Facts, No Fraud, No Section 74</title>
<link>https://www.taxtmi.com/article/detailed?id=17360</link>
<guid isPermaLink="true">https://www.taxtmi.com/article/detailed?id=17360</guid>
<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Section 74 of the CGST Act requires an officer's independent satisfaction, supported by disclosed facts, that a tax shortfall or wrongful input tax credit claim resulted from fraud, wilful misstatement, or suppression of facts. An audit objection, statutory recitals, or a protective notice issued because ordinary limitation is nearing expiry cannot alone establish that basis. The show cause notice must identify the material facts, including missing evidence or concealed facts. The sufficiency of these foundational allegations is a threshold issue separate from the merits of the tax demand.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>DGFT Introduces Automated Issuance of Free Sale and Commerce Certificates: A Major Step Towards Faster and Paperless Export Compliance</title>
<link>https://www.taxtmi.com/article/detailed?id=17358</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Automated issuance of Free Sale and Commerce Certificates allows eligible applications submitted through the online portal to be assessed against predefined system parameters and issued without routine officer-led scrutiny. Applications requiring verification or not satisfying automated parameters may be routed for manual examination. Auto-issued applications may also be selected for post-issuance review under risk-management parameters. Exporters must continue to meet substantive eligibility requirements, provide accurate and consistent information, retain supporting records and respond to any subsequent verification. The mechanism promotes faster, paperless processing while retaining risk-based regulatory oversight.]]></description>
<category>Customs</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Penalty- Cash loans transactions-Unnecessary just to litigate litigation by revenue because legal position was well settled long ago-2015 by SC 2006 by HC relying on earlier precedence on principals.</title>
<link>https://www.taxtmi.com/article/detailed?id=17357</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Penalties for cash acceptance or repayment transactions require recorded satisfaction in the latest operative assessment order that the relevant statutory prohibition has been violated and that penalty action is contemplated. Where an earlier assessment is set aside or annulled, satisfaction recorded in that assessment does not survive as the basis for penalty. A fresh, revised, reassessment, or de novo assessment must independently record the requisite satisfaction. Separate penalty proceedings do not dispense with this jurisdictional requirement.]]></description>
<category>Income Tax</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Grow Your Export Business with RCMC Certification and APEDA Registration</title>
<link>https://www.taxtmi.com/article/detailed?id=17356</link>
<guid isPermaLink="true">https://www.taxtmi.com/article/detailed?id=17356</guid>
<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[RCMC certification establishes an eligible exporter's registration or membership with the appropriate Export Promotion Council or Commodity Board. The correct registration route depends on product category, export classification and applicable regulatory requirements. APEDA RCMC may apply to eligible agricultural and processed food exporters. Registration generally involves confirming product eligibility, preparing business records and Import Export Code details, completing the applicable online application, submitting required documents, paying applicable charges and maintaining registration records. Exporters should verify current procedures and fees through authorised channels and ensure that all application information is accurate.]]></description>
<category>TaxLaws</category>
<category>Articles</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST SEARCH: RELEASE AND DISPOSAL OF SEIZED ITEM</title>
<link>https://www.taxtmi.com/article/detailed?id=17355</link>
<guid isPermaLink="true">https://www.taxtmi.com/article/detailed?id=17355</guid>
<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Provisional release of seized GST goods requires a bond for the value of goods and bank guarantee security for applicable tax, interest and penalty, or payment of those amounts. Failure to produce the goods as required permits encashment and adjustment of the security. Specified seized goods may be disposed of promptly because of perishability, hazardous nature, depreciation, storage constraints or other relevant considerations. Authorised purchase of goods or services may verify invoice or bill-of-supply issuance, with refund required upon return and cancellation of the earlier invoice or bill.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Pre-Deposit and Maintainability of an Appeal - Why "File" and "Entertain" Matter</title>
<link>https://www.taxtmi.com/article/detailed?id=17354</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Statutory pre-deposit conditions are mandatory, but the timing of payment depends on the governing language. Under the post-2014 Central Excise and service-tax framework, an appeal cannot be entertained without deposit, supporting curability where payment is made before appellate consideration. GST instead provides that no appeal shall be filed unless admitted liability and the prescribed deposit are paid. Delayed GST payment may therefore affect whether a valid appeal existed within limitation. Pre-deposit is security during the dispute, not final discharge of the contested liability.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Arguing before the division bench of GSTAT is not a child's play.</title>
<link>https://www.taxtmi.com/article/detailed?id=17353</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[GST appellate advocacy requires comprehensive factual and legal preparation where a fraud-based demand mechanism is invoked. Invocation of section 74 requires material evidence of fraud, wilful misstatement, or suppression of facts with intent to evade tax; mere non-payment is insufficient. Retrospective cancellation of a supplier's registration does not by itself establish recipient fraud where supplies were made during active registration, payments were through banking channels, and GST return data was available. Parties should advance all grounds, including objections to a single notice spanning multiple financial years, supported by departmental guidance and current High Court authority.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>ISO 45001:2018 Occupational Health and Safety Management System (OHSMS): A Comprehensive Guide to Workplace Safety, Hazard Identification, and Risk Management.</title>
<link>https://www.taxtmi.com/article/detailed?id=17352</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[ISO 45001:2018 establishes an Occupational Health and Safety Management System framework requiring organisations to identify workplace hazards, assess risks, implement controls, meet applicable legal obligations, promote worker participation and continually improve safety performance. Through the Plan-Do-Check-Act cycle, organisations establish objectives and controls, provide resources and training, monitor incidents, inspections, compliance and audits, and address nonconformities through corrective action and management review. Operational measures may include safe procedures, engineering controls, personal protective equipment, contractor management, emergency preparedness and safe procurement.]]></description>
<category>TaxLaws</category>
<category>Articles</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST RULES AND FORMS RELEVANT FOR SEARCH, SEIZURE AND INSPECTION</title>
<link>https://www.taxtmi.com/article/detailed?id=17351</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[GST inspection, search and seizure require prescribed authorisation, seizure and prohibition forms, with inventory and custodial safeguards for seized goods. Provisional release requires a bond and bank-guarantee security covering applicable tax, interest and penalty; non-production permits encashment and adjustment. Perishable or hazardous goods may be released on payment of the lower of market price or tax, interest and penalty payable, while non-payment may result in disposal and adjustment of sale proceeds against dues.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
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<title>Interest levied and paid must be considered to have extended due date. A remedy available in law should not aggravate the situation of the person who avails the remedy by way of appeal or revision.</title>
<link>https://www.taxtmi.com/article/detailed?id=17350</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Delayed deposit of Foreign Travel Tax is distinguishable from failure to pay where tax is remitted before a show-cause notice, even if deposited after the prescribed date. The statutory scheme separately imposes interest for delayed payment, while the penalty provision addresses failure to pay. Interest levied or paid for delay is treated as supporting an extended payment period. The prohibition of reformatio in peius prevents an appellant from being placed in a worse position merely for using an appeal or revision remedy.]]></description>
<category>Income Tax</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Supplier Default Cannot Deny ITC - Section 74 Cannot Be Invoked to Overcome Limitation</title>
<link>https://www.taxtmi.com/article/detailed?id=17349</link>
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<pubDate>Wed, 09 Sep 2026 10:02:06 +0530</pubDate>
<description><![CDATA[Input tax credit entitlement requires the recipient to establish genuine transactions through invoices, proof of receipt, transport records, and banking evidence. Supplier non-compliance or Form GSTR-2A mismatch does not automatically make credit ineligible where there is no collusion, fictitious invoicing, or sham transaction. Extended limitation under section 74 requires material particulars supporting fraud, wilful misstatement, or suppression; mechanical statutory allegations and supplier default alone cannot establish culpable conduct by the recipient.]]></description>
<category>GST</category>
<category>Articles</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
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<title>TMI Updates - Newsletter dated: September 09, 2026</title>
<link>https://www.taxtmi.com/newsletter?id=09/09/2026</link>
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<description><![CDATA[Newsletter for tax updates and legal information]]></description>
<category>Daily Updates</category>
<category>Tax</category>
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