A & U Associates

18/02/2026

📢 *GSTN Update | IMS Enhancement*

🔹 New Separate Tab Introduced in Outward IMS
GSTN has introduced a dedicated tab in the Outward IMS to specifically display rejected Credit Notes and similar documents where the tax liability needs to be added back in GSTR-3B.

🔍 What’s Changed?
Earlier, taxpayers had to manually scan all IMS entries to identify such rejected documents.

✅ Now:
• Clear visibility of rejected Credit Notes
• Easier identification of add-back liability
• Improved accuracy while filing GSTR-3B

📌 Impact: This enhancement reduces manual effort, minimises errors, and strengthens compliance.

18/02/2026

📌 Taxation of Interest Income under GST

Think your bank interest is completely out of scope for GST? From registration thresholds to ITC implications, here’s the correct position regarding interest income:

1️⃣ General Rule: Exemption from GST

As per Notification No. 12/2017–Central Tax (Rate), Entry 27, services by way of extending deposits, loans, or advances are exempt from GST, where the consideration is represented by interest or discount.

Accordingly, no GST applies on interest earned from:

a) Fixed Deposits (FDs)
b) Savings Account Interest
c) Recurring Deposits (RDs)
d) Interest on loans or advances given to others
e) Post Office savings schemes

2️⃣ Exception: Credit Card Services

The above exemption does not cover credit card services.

Interest charged by banks on:

• Outstanding credit card balances
• Delayed/overdue payments

is treated as consideration for taxable supply and GST applies (generally @18%).

3️⃣ Impact on Aggregate Turnover & GST Registration

Although interest on deposits is exempt, it is treated as part of “Exempt Supply” and must be included in Aggregate Turnover for determining GST registration liability.

📌 Registration Threshold Check

If you are a business/professional, include interest income while computing turnover.

Example:
Consultancy income → ₹18 Lakhs
FD interest → ₹3 Lakhs
Aggregate Turnover → ₹21 Lakhs

GST registration becomes mandatory (subject to ₹20 lakh threshold applicability).

4️⃣ Impact on Input Tax Credit (ITC) Reversal

Under Rule 42 & Rule 43 of the CGST Rules, taxpayers making both taxable and exempt supplies must reverse proportionate common ITC.

✅ Important Relief:
As per the Explanation to Rule 43, interest income from deposits, loans, or advances is excluded from the value of exempt supplies for ITC reversal purposes.

📌 Therefore, ordinary businesses need not reverse ITC merely due to FD/interest income.

⚠️ Exception:
This exclusion does NOT apply to:

• Banks
• Financial Institutions
• NBFCs

21/10/2025

*GST & TAX Alerts 🚨*

GSTN clears long-standing doubts on ITC reporting in GSTR-9 (via FAQs released 16 Oct 2025)

The FAQs cover Rule 37/37A reversals, reclaims, 8C/8H adjustments & Table 13 inclusions.

Here's a summary of the entire reporting mechanism:

10/10/2025

Clarification issued by about no changes to Auto-Population of ITC from GSTR-2B to GSTR-3B and GSTR-2B to continue to be generated automatically

1. No Change in Auto-Population of ITC from GSTR-2B to GSTR-3B

2. GSTR-2B will continue to be generated automatically on the 14th of every month, without any manual intervention by taxpayers or based on the actions taken by the taxpayers.

(No comments about authority of GSTN to issue clarification about Legal issues post Amendment date 1-10-2025)

05/10/2025

*New GST Notifications: What You Need to Know 📣*

The Department has introduced new GST notifications, effective September 22, 2025. Here's what you need to know ¹:
- *Revised GST Rates*: Notification No. 09/2025 CT(R) outlines new GST rates for goods, with changes in tax slabs and exemptions. The rates have been rationalized into three primary slabs.
- *Exempt Goods Notification*: Notification No. 10/2025 CT(R) pertains to exempt goods. Businesses must refer to these notifications for accurate tax rates and compliance.
- *Old Notifications Withdrawn*: The old notifications (01/2017 Taxable and 02/2016 Exempt Goods) have been deleted, and businesses are now required to follow the new notifications.

*Key Highlights:*

- *Goods Rate Changes*: GST rates have been revised for various goods, including food items, vehicles, and healthcare products. Essential items have been made cheaper, while luxury goods have been subject to higher tax rates.
- *Simplified Tax Structure*: The new GST rate structure aims to simplify tax compliance and reduce litigation. The rates have been categorized into three primary slabs, with most goods falling under 5% and 18% tax brackets.
- *Impact on Businesses*: Businesses need to update their systems and invoices to reflect the new GST rates. They must also ensure compliance with the new notifications to avoid any penalties .

*Important Notifications:*

- *Notification No. 09/2025 CT(R)*: GST rates for goods
- *Notification No. 10/2025 CT(R)*: Exempt goods

05/10/2025

*📣 CBDT Directed to Extend ITR Due Date for Audit Cases to November 30, 2025 🚨*
The Gujarat High Court has directed the Central Board of Direct Taxes (CBDT) to extend the ITR due date for audit cases to November 30, 2025. This decision comes after petitions from the All India Federation of Tax Practitioners (AIFTP) and the Chartered Accountants Association, Surat (CAAS).

*Key Highlights:*
- *Current Due Date:* October 31, 2025
- *Extended Due Date:* November 30, 2025
- *Applicability:* Taxpayers required to conduct tax audits

*Background:*
The CBDT had extended the tax audit report deadline from September 30, 2025, to October 31, 2025, following directives from the Rajasthan and Karnataka High Courts. However, the Gujarat High Court's recent order requires CBDT to extend the ITR due date for audit cases to November 30, 2025 .

*Impact:*
- *Relief for Taxpayers:* The extension provides more time for taxpayers to file their returns and comply with tax regulations.
- *Compliance:* Taxpayers should ensure timely completion of audits and filing of returns to avoid penalties and interest charges.

*Next Steps:*
- *CBDT Notification:* Awaiting an official notification from CBDT regarding the extension.
- *Taxpayer Action:* Plan and complete audits, gather required documents, and file returns by the extended due date

03/10/2025

*Important Due Dates for Companies and LLPs in India 🎯*
*Due Dates for Companies*
- *Annual General Meeting (AGM)*: September 30, 2025 (Audited financials and Auditor’s Report must be signed before this date)
- *Form DIR-3 KYC (DIN KYC)*: September 30, 2025 (extended to October 15, 2025, with a penalty of ₹5,000 after the due date)
- *Form ADT-1 (Appointment of Statutory Auditor)*: October 14, 2025
- *Form MSME-1 (Half-Yearly Return)*: October 30, 2025
- *Form AOC-4 (Audited Financial Statement)*:
- For regular companies: October 29, 2025 (within 30 days of AGM)
- For One Person Companies (OPCs): September 27, 2025 (within 180 days of financial year-end)
- *Form MGT-7/Form MGT-7A (Annual Return)*:
- For regular companies: November 28, 2025 (within 60 days of AGM)
- Late filing fees: ₹100 per day

*Due Dates for LLPs*
- *Form DIR-3 KYC (DIN KYC)*: September 30, 2025 (extended to October 15, 2025, with a penalty of ₹5,000 after the due date)
- *LLP Form 8 (Statement of Account & Solvency)*: October 30, 2025
- Late fee: ₹100 per day without limit
- *LLP Form 11 (Annual Return)*: May 30, 2025 (for FY 2024-25)
- Late fee: ₹100 per day without limit
- *Income Tax Return Filing*:
- For non-audited LLPs: July 31, 2025
- For audited LLPs: October 31, 2025

It is essential to stay compliant and avoid penalties by marking these important due dates in your calendar.

03/10/2025

🗓️ROC Compliance Calender

1⃣14th October - ADT-1 (Appointment of an Auditor)
2⃣15th October – DIR-3/DIR-3 KYC WEB
3⃣29th October – AOC-4
4⃣30th October - Form 8 Filing, LLP's for FY 2024-25
5⃣30th October - MGT-14
6⃣31st October - Form MSME
7⃣29th November - MGT 7/7A
8⃣29th November - PAS-6

03/10/2025

*GST & Tax Alerts 🚨*

*Changes to GST from October 2025*

1. 🧾 ITC Auto-Population Discontinued: -
➡️ITC won’t auto-flow into GSTR-2B anymore.
➡️Taxpayers must manually accept/reject invoices in the Invoice Management System (IMS).
➡️Only accepted invoices → eligible for ITC in GSTR-3B.
⚠️ More active reconciliation ahead!

2. 📊 GSTR-3B Tax Liability Locked: -
➡️Auto-populated liability figures in GSTR-3B can’t be edited.
➡️Corrections/amendments only via GSTR-1/1A.
➡️Review GSTR-1 carefully to avoid repeated
amendments.

3. 📉 Credit Notes & ITC Reversal: -
➡️Suppliers can’t reduce tax liability with credit notes directly.
➡️First, buyer must reverse related ITC in their return.
➡️Only then supplier’s tax liability reduces.
✅ This ensures both parties’ records are in sync.

4. 💸Invoice Wise Reporting in GST TDS: -
➡️GSTR-7 filing will require invoice-wise reporting of TDS
➡️All deductors must furnish invoice-level details while filing.

Call now to connect with business.