Taxing times: Why are so many companies getting GST notices?
The tax authorities have been shooting off tax demand notices for several months now. Tax officers sent around 33,000 GST notices to businesses for discrepancies in returns filed and short payment of taxes in 2017-18 and 2018-19 financial years, a CBIC official told ET in early December. Key Points
Economic TimesIs a legal notice sent through WhatsApp, email valid?
Traditionally, when a court case is filed against you, a court notice or a summon is sent to you on your residential address. However, what if you have received a court notice on WhatsApp or Email. The first question that will come to your mind will be can a person receive legal notice on WhatsApp. Secondly, if the person can receive it, then is it legally valid practice to send/receive it. Key Points
Economic TimesGrowth in October GST mop-up due to economic activity: CBIC chief Sanjay Kumar Agarwal
The growth in October GST collections was riding on economic activity and not because of notices that was sent (to online gaming companies). Growth has come purely on the economic activity which has taken place in the country, Agarwal told reporters on the sidelines of the DPIIT-CII National Conference on Ease of Doing Business. Key Points
Economic TimesDGGI raises Rs 55,000-cr tax demand from eGaming companies
This includes a notice of approximately Rs 25,000 crore to Dream11, making it possibly the largest indirect tax notice in India. More notices are expected, and the total GST demand from RMG companies could reach Rs 1 lakh crore. The notices were issued after the recent increase in GST rates for real money games to 28%. The companies have the option to appeal the notices. Key Points
Economic TimesMoonlighting employees under tax scanner
The Indian income-tax department has issued notices to professionals who have earned additional income outside their normal salary but failed to declare it in their tax returns. The majority of the notices were issued for financial years 2019-2020 and 2020-2021 and relate to income such as moonlighting that was higher than salaries declared. Key Points
Economic Times
CID notices to chartered accountants | Andhra Pradesh High Court posted the case after four weeks
Justice B. S. Bhanumathi of Andhra Pradesh High Court posted the writ petition filed by Chartered Accountants P. V. Mallikarjuna Rao and Muppalla Subbarao against the notices issued to them by the CID for further hearing after four weeks. Key Points
The HinduBihar government serves notices to over 2.21 lakh beneficiaries of PMAY-G programme
The Bihar government served notices to over 2.21 lakh beneficiaries for not completing their houses under the Pradhan Mantri Aawas Yojna-Gramin (PMAY-G). Key Points
The HinduGST authorities issue notices over input tax credit discrepancies
GST authorities have issued notices to companies for discrepancies in input tax credit claims, prompting scrutiny of annual returns against monthly filings. notices under Section 150 of the CGST Act demand explanations for short reporting of ITC. However, businesses argue that some notices lack verification, imposing undue compliance burdens. Despite this, officials maintain that mismatches cannot be overlooked. Key Points
Economic Times‘Tax evasion notices will shut e-gaming firms’: Atishi ahead of GST council meet
Delhi FM Atishi said that the tax evasion notices worth ₹1.5-lakh cr will shut online gaming companies, will seek their withdrawal at GST Council meet. Key Points
Hindustan TimesSeveral foreign companies get tax notices on India investments
The section deals with the reopening of assessments, if tax authorities have a reason to believe that income chargeable to tax has escaped assessment. The assessee is given a chance to discuss the issue with the assessing officer. No further action is initiated if a satisfactory response is given by the assessee and a reassessment is carried out only in the absence of a response altogether or an unsatisfactory one, another official said. Key Points
Economic Times
CBIC instructs officials not to send notices to companies hiring expats indiscriminately
The Central Board of Indirect Taxes & Customs (CBIC) has directed field formations to exercise discretion in issuing show cause notices related to secondment arrangements of companies hiring expatriates. This move follows indiscriminate notices sent to companies based on the Supreme Court's Northern Operating System (NOS) judgment. Key Points
Economic TimesNotice to Pak Punjab over chowk after Bhagat Singh
High Court tells officials to reply over failure to rename Shadman Chowk. A Pakistani court on Monday issued notices to the Punjab provincial government and... Key Points
The Tribune IndiaIncome Tax department issues notices to taxpayers for donations to unrecognized political parties
The Income Tax Department has issued notices to taxpayers who made donations to political parties registered but not recognized by the Election Commission, for fiscal years 2021 and 2022. The notices under Section 80GGC of the Income Tax Act aim to investigate whether such donations were used for tax evasion and money laundering. Around 5,000 notices have been sent so far, targeting donations to about 20 unrecognised political parties. Key Points
Economic TimesIndia tells X, Youtube, Telegram to remove any child sexual abuse material from platforms
India has sent notices to social media platforms X, formerly known as Twitter, Youtube (GOOGL.O) and Telegram asking them to ensure there is no child sexual abuse material on their platforms, the government said on Friday. Key Points
Reuters‘Theatrics’: Rajya Sabha adjourned for the day after spat between chair, Derek O'Brien
Rajya Sabha adjourned after Chairman Jagdeep Dhankar had a spat with TMC leader Derek O'Brien over non-admission of notices by opposition members. Opposition parties allege the government is ‘subverting’ Parliamentary traditions. Key Points
mint
CBIC working to weed out duplicate notices
Courts have made adverse comments in many such cases of parallel investigations. The matter was discussed at a recent meeting of enforcement officials from the central and state GST departments, chaired by union finance minister Nirmala Sitharaman. There are instances where both the Centre and states have issued notices or have started investigations in the same case. We are working on a detailed directive on that, a senior official told ET. Key Points
Economic TimesSC refuses to grant stay on tax notices to E-gaming companies
The show cause notices were issued after the government clarified that online gaming, betting, and gambling will be levied 28% GST on the full face value from October 1. The government believes that some of these firms leveraged the lack of clarity on taxation of game of chance and game of skill before October 1 and there was a need to have a uniform 28% GST on the full value of bets placed on online gaming platforms. The government also amended the GST law making it mandatory for overseas online gaming companies to register in India from October 1. Key Points
Economic TimesShah Rukh Khan, Akshay Kumar, Ajay Devgn served notices for endorsing the tobacco brand 'Vimal'
Seeing the backlash on social media, the 'Mission Raniganj' actor shared a note X back in October and wrote- 'These ads were shot on 13th October, 2021. I have not had anything to do with the brand ever since I publicly announced the discontinuation of the endorsement.' Key Points
FirstpostBudget 2024: ITR portal should be made more user-friendly including tax notice intimation; voices industr
Budget 2024: Experts opine that the income tax return (ITR) portal be made more user-friendly and a system be in place to check all the notices given by the income tax department to the taxpayer in one place. Experts also suggested to the government that the notice document should be attached with the email intimation itself. Key Points
Economic TimesDGCA issues show cause notices to AI, SpiceJet for fog-related flight diversions at Delhi airport
The Delhi Airports Authority (DGCA) has issued show cause notices to Air India and SpiceJet for not deploying pilots trained to operate in low visibility conditions. The notices were issued following flight diversions due to dense fog at the airport in December. The airport experienced nearly 60 flights diverted due to the fog, with most of them diverted due to pilots not being trained to operate in low visibility conditions. Key Points
Economic Times
Bombay HC says no final orders without permission on Delta Corp's Rs 16,195 cr GST demand notices
The Bombay High Court has instructed the Goods and Services Tax (GST) authorities not to make any final decisions on the GST demand notices issued to Delta Corp without prior permission from the court. Delta Corp and its subsidiaries have been notified of an alleged tax shortfall of INR 16,195 crore by the Directorate General of GST Intelligence. Key Points
Economic TimesIndia demands $12 bln in tax from online gaming firms -govt source
Indian tax authorities have served notices to online gaming companies demanding about 1 trillion rupees ($12.03 billion) in taxes that they have allegedly evaded, a government source said on Wednesday. Key Points
ReutersYelp asks court to block Texas lawsuit over crisis pregnancy center notices
Yelp Inc (YELP.N) is asking a federal court to stop Texas Attorney General Ken Paxton from suing it over notices telling its users that crisis pregnancy centers do not provide abortions or referrals for abortions. Key Points
ReutersI-T dept to complete scrutiny assessment of 1 lakh notices by March 2024, says Finance Minister Nirmala Si
The income tax department aims to complete the assessment of 1,00,000 income tax notices sent for a mismatch in disclosed income and available information by March 2024, according to Finance Minister Nirmala Sitharaman. notices were sent to individuals with income exceeding Rs 50 lakh and to non-filers. Key Points
Economic TimesHero MotoCorp gets Rs 605 cr demand notice from I-T Dept
The country’s largest two-wheeler maker Hero MotoCorp on Thursday said it had received demand notices from the Income Tax department for around Rs... Key Points
The Tribune India
24 big importers found evading Rs 11,000 crore IGST
The Indian Directorate General of GST Intelligence (DGGI) and Directorate of Revenue Intelligence (DRI) have discovered alleged Integrated GST evasion of ₹11,000 crore ($1.5 billion) by 24 large importers. Some of the companies involved are in the steel, pharmaceutical, gems and jewellery, and textiles sectors. Tax fraud has been discovered based on data produced by the Advanced Analytics in Indirect Taxation. Key Points
Economic TimesIn a first, NMMC to publish draft development plan
NMMC had received more than 18,500 suggestions and objections till October 31, 2022. The hearing process will commence on March 14 and notices will be served from this week. | Mumbai news Key Points
Hindustan TimesPlan afoot to reclassify items for GST clarity in FMCG sector
The Central Board of Indirect Taxes and Customs (CBIC) is planning to prepare a list of products that end up in litigation due to classification issues. The fitment committee will investigate items with minor changes in composition but different tax slabs, creating confusion in tax liability, particularly in the fast-moving consumer goods (FMCG) sector. Key Points
Economic TimesHC grants interim relief to ABG Shipyard directors on eviction notices issued by the ED
The Bombay High court (HC) granted interim relief to the erstwhile Directors of ABG Shipyard Group,against the eviction notices issued by the Enforcement Directorate (ED) directing them to evict their residential premises in relation to money laundering case registered against ABG Shipyard Ltd. They have been booked in a money laundering case of Rs. 22,000 crore. Key Points
Economic TimesDGGI digs deep into Insurance companies' claims of input tax credit
The Directorate General of GST Intelligence has served show cause notices to insurance intermediaries, including HDFC Bank, Go Digit Insurance, and Policybazaar, among others, for issuing fake invoices to claim input tax credit without providing any service. The investigation, initiated in 2022, has revealed an evasion of INR2,250 crore so far, with crackdowns on invoices raised from 2018 to March 2022. Key Points
Economic Times
71 show cause notices issued to online gaming firms involving GST demand of Rs 1.12 lakh cr: Finance Minis
Online gaming companies are facing scrutiny for alleged GST evasion, with 71 show cause notices issued for evasion exceeding Rs 1.12 lakh crore during the financial years 2022-23 and 2023-24, according to the finance ministry. In the current fiscal year till October 2023, central GST officers detected a total GST evasion of Rs 1.51 lakh crore, leading to the arrest of 154 individuals. The fiscal recovery reached Rs 18,541 crore as of now. Key Points
Economic TimesYSRCP-linked influencers face unprecedented crackdown by AP Police amid 'en masse' attack on Naidu govt
YSRCP chief claims 680 notices issued, 147 cases filed against party supporters & 49 arrested. Andhra home minister says ruling combine's leaders & families getting 'rape threats', abuse'. Key Points
ThePrint'Govt sitting with eyes closed': Supreme Court raps Centre, slaps temporary ban on Patanjali's 'false' ads
The Supreme Court of India reprimanded Patanjali Ayurved and the Central government for misleading ads. Patanjali is now banned from advertising medicinal products, with contempt of court notices issued against Baba Ramdev and Acharya Balkrishna. Key Points
mintMinistry of civil aviation issues show cause notices to Indigo and Mumbai Airport over apron dining
India Business News: The Bureau of Civil Aviation Security (BCAS) has issued a notice to IndiGo and Mumbai International Airport Ltd (MIAL) over the issue of passengers of a diverted flight sitting on the tarmac and the airline serving them refreshments there. Find out more about this incident and the actions taken. Key Points
Times Of IndiaSC seeks response from taxman on ₹1L cr notices to e-gaming cos
The show-cause notices were issued after the government clarified that all online games involving betting and gambling, irrespective of skill or chance, will attract 28% GST on full-face value of the bets from October 1, 2023. The government believes some of these firms leveraged the lack of clarity on taxation of game of chance and game of skill before October 1 and there was a need to have a uniform 28% GST on the full value of bets placed on online gaming platforms. Key Points
Economic Times
GST notices of ₹1.45 lakh crore sent out in December for FY18
GST evasion of about Rs 1.51 lakh crore has been detected by central GST officers in the current fiscal, while recovery stands at Rs 18,541 crore as on December 30, against the internal target of Rs 50,000 crore. The finance ministry on Sunday said that since mid-May 2023, a total of 29,273 bogus firms involved in suspected input tax credit evasion of Rs 44,015 crore have been detected. Key Points
Economic TimesSeveral mergers and acquisitions on halt as India Inc checks tax liabilities amid increasing GST notices
The chairman of a leading conglomerate said that while GST, introduced in 2017, sought to simplify the tax system and encourage compliance, there was no clarity on why and how the tax is being levied on transactions. Today, so many resources are wasted on understanding demands and clarifying with concerned officials. Notices, which we have to clarify, should not be sent by multiple authorities, he said. Key Points
Economic TimeseGaming companies GST tax demand in line with legal stand: CBIC chief
The Central Board of Indirect Taxes and Customs (CBIC) chairman, Sanjay Kumar Agarwal, has stated that the goods and services tax (GST) notices issued to online gaming companies are in accordance with legal provisions and will not be immediately reviewed. The government is prepared to implement the 28% GST regime for online gaming, horse racing, and casinos once all states amend their laws. The CBIC will review the tax regime in six months. Many online gaming companies have received tax demand notices running into thousands of crores, with a total tax liability estimated at around ₹55,000 crore. Key Points
Economic TimesBJP leader Shahnawaz Hussain suffers cardiac arrest; admitted to Mumbai's Lilavati Hospital
Shahnawaz Hussain was admitted to Mumbai's Lilavati Hospital after a complaint of high blood pressure earlier today. The ECG and 2D Eco reports showed he suffered a minor heart attack. Key Points
Economic TimesVAT now? Companies face tax demand worth Rs 30,000 crore
Around 200 companies, including Colgate Palmolive, L'Oreal, and McDonald's India, have received notices from state tax authorities demanding taxes under the pre-GST regime. The states are seeking about ₹30,000 crore in taxes for the FY11-FY15 period, claiming that value-added tax (VAT) should be levied on the transfer of intellectual property rights (IPRs). Some companies argue that they have already paid service tax on these transactions. Key Points
Economic Times
443 properties razed in Nuh, all after July 31 violence: Govt report
The report also indicates that no property was demolished a week prior to the July 31 incident. However, prior notices were served. In Gurugram, only one property was demolished post violence. Key Points
Hindustan Times