Section 50 of the CGST Act is being amended to provide for a retrospective charge of interest on net cash liability, with effect from 1st July 2017.

GST audit requirement by specific professionals such as CAs and CMAs has been removed from the GST law. Section 35 and 44 have been amended in this regard. As per the amendment, only GSTR-9 annual returns on a self-certification basis need to be filed on the GST portal by taxpayers, completely removing the requirement for GSTR-9C

New Updates On GST Regarding To Taxpayers

1. GST authorities ask field units to ramp up collections, identify defaulting taxpayers.
2. Govt releases Rs 2,104 crore as 19th installment of GST compensation shortfall to states.
3. Govt extends last date for annual GST filling till march end  for FY 20.
4. GST officers to immediately suspend taxpayer’s registration for ‘significant anomalies’ in sales return.
5. Budget 2021: FM does away with the need for GST Audit for a section of taxpayers.
6. No GST on electricity charges recovered from tenants.

Public companies were allowed to grant loans, guarantees and securities subject to Central Government approval and private companies were exempted under Section 295 of the former Companies Act, 1956.

Private Companies were facing problems due to stringent provisions of Section 185 while carrying out operations. So, Government exempted private companies from entire Section 185 to ease the compliance requirement vide notification dated 5th June, 2015.

Companies (Amendment) Act, 2017

Government substituted entire Section 185 by way of Companies (Amendment) Act, 2017 to promote ease of doing business. The original Section 185 specified more exhaustive list to which Companies can’t give loans, guarantee and securities. Thus, at par with the global company laws, the provision has been amended to remove the prohibition to an extent and provides for the passing of shareholders’ resolution for granting of loans, guarantees, and securities to entities in which directors are interested.

• There should be no investment in the concerned company from any other body corporate;
• The company should not have any borrowings from banks, financial institutions and other bodies corporate equal to or more than twice its paid-up share capital, OR Rs. 50 crores, whichever is lower; and
• There should be no subsisting default at the time of making such transaction, and that the company should have the capability to pay off the loan.