Cross-empowerment limits bar transit-state seizure of interstate goods on valuation disputes and documentation mismatch.
Interstate consignments merely passing through a transit State cannot be detained or confiscated by that State's officers under the GST framework on grounds of alleged undervaluation, mismatch, or similar discrepancies alone. Cross-empowerment under the GST regime is intended to coordinate jurisdiction and prevent parallel proceedings, not to give unrestricted authority over IGST movements outside the State's territorial competence. For transit interceptions, the proper course is to forward discrepancies to the jurisdictional officers of the consignor or consignee, while valuation disputes generally do not justify routine detention under sections 129 and 130. (AI Summary)

Notice under section 143(2): mandatory for reassessments under the reassessment route, not compulsory for search-based assessments.
Search- and requisition-based assessments operate under a specific statutory notice regime that, by virtue of the non obstante clause and the separate call-for-return notice, does not make a separate section 143(2) notice mandatory for each assessment year covered by the search provision. In contrast, reassessments arising from the reassessment notice route must follow the regular notice regime: a section 143(2) notice is a mandatory procedural step before completion, and its complete absence cannot be cured by general procedural waiver provisions. (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)

Goods and Services Tax: registration required when aggregate turnover exceeds prescribed thresholds, with special state and goods only exceptions.
Registration under GST is mandatory for suppliers whose aggregate turnover exceeds prescribed thresholds (Rs. 20 lakh generally; Rs. 10 lakh in specified special category States; subject to notified increases including up to Rs. 40 lakh for suppliers exclusively of goods). Aggregate turnover is computed on an all India basis including taxable, exempt, export and inter State supplies by persons with the same PAN, excluding specified taxes and certain job worker supplies. Rules R 8 to R 26 and forms govern application, verification, issuance and related procedural mechanics, while notifications and amendments adjust thresholds and exempt categories. (AI Summary)

Under-reporting of income: discretionary penalty framework replaces concealment standard and separates misreporting for heightened sanction.
The statute substitutes the earlier dual-charge penalty with a single framework focused on under-reporting of income and an aggravated category of misreporting of income. Penalty arises where assessed or reassessed income exceeds amounts determined on processing or in return, in assessments after non filing, by deemed income provisions, or where assessed income converts declared losses. The provision prescribes methods to quantify under reported income, identifies exclusions including bona fide explanations and compliant transfer pricing adjustments, and lists defined acts constituting misreporting, while preserving prosecutorial discretion and noting interactions with separate search related penalty provisions. (AI Summary)

Charitable trusts face Finance Act 2020 changes on registration, corpus donations, taxability of receipts, and accreted income.
The Finance Act, 2020 redefines registration/approval routes for charitable institutions (10(23C) versus 12AB/12A), confirms corpus donations as exempt capital receipts under section 11(1)(d) when donor directed, limits application of section 56(2)(x) by provisos for registered/approved entities, preserves the incidental business and predominant object tests (with 20% receipt threshold for other public utility activities), restates accumulation/application rules (including 15% deemed application and five year accumulation), and imposes tax on accreted income on specified change of status events. (AI Summary)

Residential status changes make some Indian citizens with high India income taxable as deemed residents, expanding tax scope and reporting.
Finance Act, 2020 adds Section 6(1A) deeming an Indian citizen resident where Indian source income (excluding foreign income) exceeds Rs. 15 lakh and the individual is not liable to tax elsewhere; Explanation 1(b) is amended to substitute 120 days for the prior 60 day rule for affected taxpayers, and Section 6(6) is expanded with new NOR conditions. The amendments broaden taxable scope to include foreign income derived from business controlled in or profession set up in India and trigger loss of non resident concessions, DTAA benefits, and mandatory foreign asset disclosure. (AI Summary)

GST compliance relief and procedural changes recalibrate ITC refund rules and introduce export proceeds recovery safeguards.
Notifications and circulars in March-April 2020 provided COVID related blanket extensions of statutory time limits under the new power while excluding specific provisions; imposed turnover based conditional waivers and reduced interest for delayed returns; tightened refund and ITC rules by restricting refundable ITC to invoices reflected in supplier GSTR 1/GSTR 2A and mandating proportional refund by original payment mode with re credit mechanisms; introduced recovery where export proceeds are not realised; and amended registration Aadhaar authentication and capital goods ITC attribution and reversal mechanisms. (AI Summary)

Concessional corporate tax rates: new options require surrender of key deductions and restrict loss carryforwards, affecting MAT credit availability.
Concessional corporate tax regimes permit domestic companies to elect lower tax computation in exchange for foregoing specified deductions and certain carryforward reliefs; elections are made by the return due date and are generally irrevocable. Section 115BA targets new manufacturing companies with restrictions on additional depreciation and specified incentives; Section 115BAA offers a broad concessional rate to all domestic companies subject to surrender of enumerated deductions, denial of related loss set offs and MAT credit, and mandatory normal depreciation; Section 115BAB targets qualifying new manufacturing companies with stricter eligibility, prohibition on certain reused assets, exclusion of particular businesses, and anti abuse provisions allowing arm's length adjustment of related party transactions. (AI Summary)

Vivad se Vishwas settlement: disputed tax payment determined by a designated authority secures waiver of interest and prosecution immunity.
The Vivad se Vishwas Scheme permits taxpayers and the revenue to settle pending income-tax disputes by filing a declaration; the Designated Authority determines disputed tax payable and issues a certificate, payment must be made within the prescribed period or the declaration becomes void, and settled issues receive waiver of interest and penalty plus immunity from prosecution. Payment rates depend on appellant identity, timing of payment and search-case status, with special half-rate relief where prior favourable decisions exist; detailed rules govern calculation where rectifications, prior payments, multiple appeals, TDS implications, enhancements or set-aside orders arise. (AI Summary)

Tax dispute settlement scheme requiring declaration, payment and withdrawal of appeals to resolve disputed tax liabilities swiftly.
The Bill creates a voluntary settlement by filing a declaration with the designated authority, which must issue a certificate of the amount payable; the declarant must pay within a short period and withdraw appeals, writs or alternative proceedings and furnish proof. Payments follow prescribed reduced percentages depending on whether appeal is by taxpayer or revenue and on search linked assessments; declarations are void if false or conditions breached and orders post payment are not reopenable. Certain cases (major search assessments, prosecutions, offshore undisclosed income, treaty based information assessments) are excluded. (AI Summary)