The Central Board of Indirect Taxes and Customs (CBIC) clarified that post-sale discounts offered by manufacturers to dealers, aimed purely at competitive pricing and driving sales, will not attract Goods and Services Tax (GST).In a circular, the board further explained that GST would, however, apply if such discounts are linked to specific promotional services carried out by dealers on behalf of the manufacturer, such as co-branding initiatives, advertising campaigns or customised sales drives.The clarification follows multiple representations received by the CBIC on the treatment of secondary or post-sale discounts under GST, PTI reported.According to the circular, dealers may sometimes engage in promotional efforts after receiving discounts, but these actions usually help them sell the goods they own and, in turn, increase their own earnings. In such situations, the board said, the discount functions only as a reduction in the sale price of goods rather than as consideration for a separate service.“Therefore, it is clarified that post-sale discounts offered by manufacturers to dealers in such cases shall not be treated as consideration for a separate transaction of supply of services,” the CBIC circular stated.The tax will only apply, the board noted, if agreements explicitly state that dealers will perform promotional services like exhibitions, customised campaigns, advertising or customer support, with a defined payment for such activities.Commenting on the circular, AMRG & Associates senior partner Rajat Mohan pointed out that while dealers often run small marketing campaigns or quick sales drives, such efforts are usually undertaken to boost their own sales volumes.“The government has rightly clarified that these routine trade discounts cannot be treated as payment for any service provided by the dealer to the manufacturer, and therefore no additional GST liability arises in such cases,” Mohan was quoted as saying by PTI.EY tax partner Saurabh Agarwal said the clarification rightly differentiates between a straightforward trade discount and a service transaction. He added that the position confirms that where the manufacturer-dealer relationship is on a principal-to-principal basis, discounts meant purely for sales promotion or competitive pricing cannot be viewed as payment for services.He also stressed that this move addresses a major source of confusion. “In light of these clarifications, businesses must revisit their contractual arrangements and tax positions. The government’s clear demarcation between trade discounts and promotional services will significantly reduce interpretational disputes and provide greater certainty in compliance for the industry, paving the way for a more streamlined GST regime,” Agarwal told PTI.Grant Thornton Bharat partner Manoj Mishra noted that the CBIC’s guidance resolves a long-standing dispute. He highlighted that the assurance on input tax credit, which remains unaffected when financial or commercial credit notes are issued, eliminates a significant compliance risk for dealers.“From a practical standpoint, this puts the onus on businesses to carefully document agreements, credit notes, and customer-level pricing arrangements.”“Overall, the clarification is a pragmatic move that strengthens certainty, reduces litigation, and provides a workable framework for industry,” Mishra said.

New Delhi: Association of Mutual Funds in India (AMFI) on Saturday hailed the regulatory changes introduced by the Securities and Exchange Board of India (Sebi), simplifying norms for IPO and foreign portfolio investors.  

Sebi, in its recent board meeting, decided to revise the minimum public shareholding (MPS) norms for large companies planning initial public offerings (IPOs).

“We welcome SEBI’s progressive and well-calibrated reforms announced at its recent Board Meeting. The new incentive structures to expand mutual fund penetration beyond the top 30 cities and among women investors align closely with AMFI’s financial inclusion objectives,” said Venkat N Chalasani, Chief Executive, AMFI.

The reduction in the maximum exit load from 5 per cent to 3 per cent further reinforces SEBI’s commitment to investor protection and transparency.

The reclassification of REITs as ‘equity’ for mutual fund investments is also a timely step that will enhance diversification opportunities and support the growth of real estate as an investible asset class, Chalasani added.

Taken together, these initiatives will broaden investor participation, strengthen the long-term health of the mutual fund industry, and strike a thoughtful balance between regulatory rigour, investor protection, and ease of doing business, he said further.

Earlier, SEBI announced a series of regulatory changes, including a major relaxation in IPOs, ease for FPIs planning to invest in the domestic market, and simplifying entry norms for advisory certifications.

Under the new norms, companies with a market capitalisation of Rs 50,000 crore to Rs 1 lakh crore will now get more time to meet the public shareholding requirements.

They will be required to achieve 15 per cent MPS within five years of listing and 25 per cent within 10 years.

At present, companies are required to meet the 25 per cent threshold within three years.

Additionally, a new category of alternative investment funds that are exclusively available to accredited investors (AI) has been approved. According to a SEBI announcement, the minimum ticket size for Large Value Funds has been reduced from Rs 70 crore to Rs 25 crore.

The new SWAGAT-FI framework, which offers 10-year registrations, a single demat account, and exemptions from the FVCI rule requiring 66 per cent of corpus in unlisted equity, will benefit sovereign wealth funds and pension funds.

New Delhi: With only three days remaining to file Income Tax Returns (ITRs) for FY 2024-25, taxpayers are facing technical issues across key e-filing platforms, adding to the usual end-of-season stress. The Annual Information Statement (AIS), Form 26AS, and Taxpayer Information Summary (TIS) portals have been intermittently down due to high traffic, leaving users frustrated and venting on social media.

This year, filings have been slower than last year. By September 11, only 5.47 crore returns had been submitted, compared to 7.28 crore by July 31, 2024. The TRACES portal, which is essential for accessing Form 26AS, downloading TDS certificates, and verifying tax credits, has also been unavailable since September 11, further complicating matters for taxpayers and professionals.

Recommended System Requirements

To avoid technical issues, the Income Tax Department recommends:

Browsers: Microsoft Edge (v88+), Chrome (v88+), Firefox/Mozilla (v86+), Opera (v66+)

Operating Systems: Windows 7 or higher, Linux, Mac OS

Other Requirements: CSS and JavaScript enabled, cookies allowed, and a Class 2 or Class 3 Digital Signature Certificate (DSC) for certain filings

Late ITR Utility Releases Add Pressure

This year’s filing process has been more challenging due to late release of ITR utilities. The CBDT extended the non-audit ITR deadline from July 31 to September 15, but most utilities became available later than usual:

29 May 2025: ITR-1 & ITR-4 Excel utilities

4 June 2025: ITR-1 & ITR-4 online utilities

11 July 2025: ITR-2 & ITR-3 Excel utilities

17 July 2025: ITR-2 online utility

30 July 2025: ITR-3 offline & online utility

8 August 2025: ITR-5 Excel utility

14 August 2025: ITR-6 Excel utility

Last year, most forms were released by early April, giving taxpayers nearly three months to prepare. This year, the compressed timeline has put extra pressure on both individuals and chartered accountants.

Bank Holidays Could Complicate Cash Payments

The upcoming weekend and bank holiday on September 13-14, combined with the 2nd Saturday on September 13, raises concerns for taxpayers needing to deposit cash for tax payments. Officials have not yet clarified whether banks will remain open.

Penalties for Missing the Deadline

Missing the ITR deadline can be costly:

Late filing fee: Up to Rs 5,000 (capped at Rs 1,000 for incomes below Rs 5 lakh)

Interest: 1 percent monthly on unpaid tax, calculated on a part-month basis

Expert Tips to Avoid Last-Minute Hassles

Check system compatibility: Ensure your browser, OS, and DSC meet requirements

Prepare documents early: Keep Form 26AS, AIS, and TIS ready

File early: Avoid peak hours to reduce portal downtime

Stay informed: Check official e-filing updates and notices

For smooth filing, use the official Income Tax Department e-filing portal: https://www.incometax.gov.in/iec/foportal/

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