1) Don’t avoid the receipt of the SCN. If such notice is being served, there is no point in avoiding receiving it. First, it has to be received and then contested/replied. A non-receipt is considered a service.

2) If the service of notice is time barred, it could be suitably replied with substantiating evidence.

3) You can challenge the validity and legality of SCN served on you on the basis of facts, time, or even jurisdiction.

4) SCN is always issued in writing. There is nothing like a verbal GST notice.

5) SCN must mention amount demanded any SCN without amount is not valid. Also, the amount of the proposed penalty should be mentioned.

6) Order passed cannot be more than the amount specified in Notice.

7) Even where you have submitted a detailed and convincing reply to SCN, you should seek the option of personal hearing and carve to alter or amend or modify your reply to show cause at any stage during adjudication proceedings.

I hope this small post will help you.

Changes in ISD Definition
‘(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;’

Manner of distribution of credit by Input Service Distributor.
“20. (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services
liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input
Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.

(2) The Input Service Distributor shall distribute
the credit of central tax or integrated tax charged on
invoices received by him, including the credit of central
or integrated tax in respect of services subject to levy of tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct person registered in the same State as
the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed.

(3) The credit of central tax shall be distributed as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.”.

Insertion of new section 122A.
Penalty for failure to register certain machines used in manufacture of goods as per special procedure.

Regards

Income Tax amendments:
1. Time limit for tax incentives for eligible startups, units in IFSC and certain Sovereign Welfare and Pension Funds, expiring in March 2024, have been extended for one more year till 31.3.2025.

2. Petty Disputed Income Tax Demands upto Rs 25000 upto FY 2009-10 and of upto Rs 10,000 for FYs from 2010-11 to 2014-15, to be waived off by the Government. This is expected to benefit around 1 crore taxpayers.

3. The recent changes in TCS on LRS remittances and foreign tour packages announced in various press releases, have been incorporated in Legislative section 206C(1G), through amendments in the existing language of this section. There is no reduction in TCS from 20% to 5%.

4. The time limit for incorporation of Faceless Scheme for Income Tax Appellate Tribunals has been extended for one more year till 31.3.2025.

5. The threshold time limit for the benefit of reduced corporate tax rate u/s 115BAB of 15% plus surcharge, in case of a newly setup manufacturing Companies up to 31.3.2024, has unfortunately not been extended further. So new manufacturing Companies which are incorporated on or after 1.4.2024 will be taxed at 22% and not 15%, if they opt for the new regime.

The government is taking proactive measures to address the issue of GST evasion and input tax credit frauds, considering the significant amount of evasion detected in the past four years. It has been revealed that over 4 lakh crore rupees of GST evasion has been detected during this period, with less than 30% of the evaded amount recovered.

To mitigate such fraudulent activities, the government is exploring the implementation of more robust technology-based advanced risk profiling methods. The objective is to identify potential cases of input tax credit frauds at an early stage and prevent any false claims from being processed.

Key points to consider:

Increasing the use of Technology: The government is focusing on leveraging technology to strengthen the existing risk profiling mechanisms. Advanced algorithms and data analysis techniques will be employed to identify suspicious claims and transactions.

Pre-emptive Measures: The intention behind implementing intensified risk profiling is to preemptively detect and block fraudulent claims before they are processed. This step aims to reduce instances of fraud and potential revenue loss.

Scrutiny and Verification Process: Claims that are flagged as suspicious under the risk profiling system will undergo a thorough scrutiny process. Only after rigorous investigation and verification, will these claims be allowed to pass through for further processing.

Recovery of Evasion: The low recovery rate (less than 30%) of the detected GST evasion amount is concerning. By implementing robust risk profiling measures, the government aims to enhance the detection of evasion and increase the recovery rate.

The introduction of technology-driven risk profiling measures is expected to streamline the GST system, reduce fraud, and prevent revenue leakage. These efforts emphasize the government’s commitment to ensuring transparency and compliance in the taxation system.