GSTJIT ADVISORY

 📢 GST Advisory Update – 30th January 2026 Advisory on Interest Collection and Related Enhancements in GSTR-3B GSTN has issued an important advisory informing taxpayers about new enhancements in interest computation and reporting in GSTR-3B, applicable from January 2026 tax period onwards. GSTN has issued an important advisory informing taxpayers about new enhancements in interest computation and reporting in GSTR-3B, applicable from January 2026 tax period onwards. 🔹 Key Updates Introduced: ✔ Revised Interest Computation Method Interest will now be calculated after giving benefit of minimum cash balance available in Electronic Cash Ledger (ECL) from due date till date of payment, as per Rule 88B(1). 📌 Revised Formula: Interest = (Net Tax Liability – Minimum Cash Balance in ECL) × (Delay Days ÷ 365) × Interest Rate 🔹 Table 5.1 – Interest (GSTR-3B): ✔ Interest will be auto-populated by system ✔ Auto-populated value is non-editable downward ✔ Taxpayer may increase interest manual...

  POST #29 – GST ADVISORY UPDATE 📢 GST Advisory Update – 23rd January 2026 RSP-Based Valuation for Notified Tobacco Goods under GST GSTN has issued an important advisory regarding valuation of notified tobacco goods based on Retail Sale Price (RSP) for correct reporting of taxable value and tax liability. 🔹 Key Highlights: ✔ Valuation will now be based on RSP (Retail Sale Price) ✔ Applicable for reporting in: • e-Invoice • e-Way Bill • GSTR-1 / GSTR-1A / IFF ✔ Special valuation method to be followed for notified tobacco products 🔹 Covered HSN Codes: • HSN 2106 – Pan Masala • HSN 2401 – Unmanufactured Tobacco • HSN 2402 – Cigarettes / Cigars • HSN 2403 – Manufactured Tobacco • HSN 2404 – Inhalation Products 🔹 Valuation Method: Tax Amount = (RSP × GST Rate) ÷ (100 + GST Rate) Taxable Value = RSP – Tax Amount ⚠️ Correct valuation & reporting is mandatory to avoid mismatch and GST notices. 📌 Advisory applicable from 1st February 2026 — GSTJIT Advisory Your GST & Tax Compl...

  What is Section 17(5)? Section 17(5) of the CGST Act specifies certain expenses on which Input Tax Credit (ITC) is NOT allowed , even if GST has been paid. These are commonly known as Blocked Credits . ❌ Major Expenses Where ITC Is Blocked ✔️ Motor Vehicles (Except when used for transport of goods, passengers, or training) ✔️ Food & Beverages / Catering ✔️ Outdoor Catering ✔️ Beauty Treatment & Health Services ✔️ Club Memberships ✔️ Life & Health Insurance (except where mandatory under law) ✔️ Travel Benefits to Employees ✔️ Works Contract Services (for construction of immovable property) ✔️ Goods Lost, Stolen, Destroyed or Written Off ⚠️ Important Practical Point 📌 ITC on blocked items cannot be claimed even if used for business purposes . Wrong claim = interest + penalty . 🧠 Professional Insight “Most GST notices arise due to incorrect ITC claims under Section 17(5).” 📌 Action for Businesses ✔️ Review expense ledgers ✔️ Identify blocked ITC monthly ✔️ Reverse ITC...

Section 194Q vs Section 206C(1H) Confused between TDS and TCS on purchase of goods? You’re not alone. With high-value transactions becoming common, understanding who deducts what is critical to avoid notices, interest & penalties. 🔍 Key Difference in Simple Terms: 1. Section 194Q (TDS on Purchase of Goods) ▪ Applicable to buyer ▪ Turnover > ₹10 Cr in preceding FY ▪ TDS @ 0.1% ▪ Applicable when purchase from a seller > ₹50 Lakhs 2. Section 206C(1H) (TCS on Sale of Goods) ▪ Applicable to seller ▪ Turnover > ₹10 Cr in preceding FY ▪ TCS @ 0.1% ▪ Collected when sale to a buyer > ₹50 Lakhs ⚠ Important Rule: 👉 If Section 194Q applies , then 206C(1H) will NOT apply . 📌 Proper identification = Zero compliance risk. 📩 Need help determining applicability for your business? GSTJIT Advisory is here to assist. — Sujit Boliar 📞 90642 63759 📧 gstjitadvisory@gmail.com 🔗 LinkedIn: Sujit Boliar Hashtags #IncomeTax #TDS #TCS #Section194Q #Section206C #TaxCompliance #GSTJITAdviso...

📘 Post #27: Section 194C – TDS on Contractor Payments (Explained Simply) 💸 Section 194C – TDS on Payments to Contractors ⚖️ What is Section 194C? Section 194C of the Income Tax Act deals with TDS on payments made to contractors and sub-contractors for carrying out any work, including supply of labour. 🏢 Who Has to Deduct TDS? ✔️ Individual / HUF (subject to tax audit) ✔️ Company ✔️ Partnership Firm ✔️ LLP ✔️ Trust / AOP / BOI 👷 What Type of Work Is Covered? Advertising Construction & repairs Transport services Job work / fabrication Catering Labour contracts 💰 TDS Rates under Section 194C • 1% – Payment to Individual / HUF contractor • 2% – Payment to other contractors (Company / Firm) 📌 No surcharge or cess applicable 📉 Threshold Limits TDS applicable if: Single payment exceeds ₹30,000 , OR Total payments in a year exceed ₹1,00,000 📅 Due Dates TDS deposit → 7th of next month March payment → 30th April TDS Return → Form 26Q (Quarterly) 📘 In Simple Words “If you pay a co...