Newsletter on daily professional updates- 28/03/2020

M A R C H 2 8 , 2 0 2 0 | S A T U R D A Y I S S U E 1 9 7
THE DAILY
LIFELINE
Official Newsletter of Diucon
BIGGEST CHALLENGE-
HOW TO KEEP UPDATED
ON DAILY BASIS
Laws are changing frequently in India, there are big
developments and announcements on daily basis in
Economic & Finance world and many other reforms are on
the way. This newsletter will keep you updated on daily
basis along with documents taken from authentic sources.
By Pradeep Goyal, FCA | CFA | CPA, Australia |
Registered Valuer | Insolvency Professional |
ID-IICA | ICAI Certified GST Expert
WHAT'S NEW IN
PROFESSIONAL/
BUSINESS
WORLD TODAY
Goods & Service Tax
Direct Tax Code
Income Tax
Economy | Finance
Insolvency Laws
Corporate Laws

INDEX
UPDATES RELATED TO
 New Direct Tax Code
 Goods & Service Tax & Other Indirect Taxes
 Income Tax
 Announcements by ICAI
 Announcements by ICSI
 Corporate Laws
 The Insolvency and Bankruptcy Law
 Security and Exchange Board of India (SEBI)
 Director General of Foreign Trade (DGFT)
 Start-ups
 Micro, Small & Medium Enterprises
 Reserve Bank of India
 New acts notified/Bills introduced in parliament or Executive
orders by President
 Economy & Finance.
[From Monday to Friday 5 days a week as Saturdays and Sundays being holiday and
closure of all government departments hence no updates]

of 9
 Goods & Service Tax & other Indirect taxes
 Notifications/Circulars/Press releases/FAQs/Portal Updates/Write-ups by
CBIC/Government.
 Below GST-Tariff notifications issued by Govt. to implement the decisions of
39th GST Council Meeting held on 14.03.2020.
Serial
No
Notifications details
Date No. Description
1 25/03/2020 03/2020-Central
Tax (Rate)
Amended notification No. 1/2017-
Central Tax (Rate) to prescribe change
in CGST rate of goods. The rate of 5% on
handmade safety matches and 18% on
other than handmade has been made
removed and uniform rate of 12% has
been notified for all types of safety
matches. Also, telephones for cellular
networks or other wireless networks
and its related parts shall now be
taxable at rate of 18%.
2 25/03/2020 02/2020-
Central Tax
(Rate)
Amended Notification No. 11/2017-
Central Tax (Rate) dated 28.06.2017
reducing CGST rate on Maintenance,
Repair and Overhaul (MRO) services in
respect of aircraft from 18% to 5% with
full ITC.
Corresponding notifications issued under SGST/UTGST/IGST Acts
Notified copies of all above said notifications can be downloaded here

of 9
 Legal updates- Advance Ruling Authorities/Tribunals/High Courts/Supreme Court
Sr.No.
Key to find the
document
Authority
who
passed
the order
Details of decision
Provisions
discussed
Decision
1 [2020] 116
taxmann.com
Vajid v.
State of U.P.
MISC. BENCH NO.
34650 OF 2019
JANUARY 23,
2020
High
Court of
Allahabad
Section 129 Where Competent Authority
detained vehicle of assessee
along with goods on ground
that goods were found to be
carried in violation of
provisions of GST Act and
assessee had failed to prove
that goods carried in vehicle
were without his
knowledge, order for
release of goods could not
be passed.
2 [2020] 116
taxmann.com
Gokul Agro
Resources Ltd.
v.
Union of India
R/SPECIAL CIVIL
APPLICATION
NO. 1758 OF 2020
FEBRUARY 26,
2020
Gujrat
High
Court
Section 5 of
IGST Act.
Where assessee filed writ
petition seeking declaration
of Entry No. 10 of
Notification No. 10/2017-
Integrated Tax (Rate), dated
28-6-2017 as being ultra vires
of section 5(3) and also
prayed for issuance of
directions to Competent
Authority to grant refund of
amount of IGST already paid
pursuant to said Entry, Entry
No. 10 was to be declared as
ultra vires of section 5(3) and
further assessee was to be
directed to prefer
application for refund of
amount before Competent
Authority

of 9
 Income Tax
 Legal updates- Tribunals, High Court & Supreme Court judgements
Sr.No. Key to find the
document
Authority who
passed the order
Details of decision
Provisions
discussed
Decision
1 [2020] 115
taxmann.com 167
Swati Luthra
v. Income-tax
Officer, Ward-
51(5), New Delhi
IT APPEAL NOS.
6480 TO 6483
(DELHI) OF 2017
[ASSESSMENT
YEAR 2014-15]
JUNE 28, 2019
Delhi Tribunal Section
68, read
with
section
10(38)
Where assessee's
transactions of
purchase of shares in
question, holding of
shares for more than
one year and then sale
of shares through a
registered share
broker in a recognised
stock exchange and
payment of STT
thereon, all were
supported by
documentary
evidences and
revenue could not
point out any specific
defect with regard to
said documents,
transactions of
assessee could not be
held as sham and
LTCG on such
transactions could not
be treated as
unexplained cash
credit under section
68.

of 9
 Announcement by ICAI
 ICAI’s announcement regarding postponement of Chartered Accountant
Examinations, May 2020
In continuation to the Important Announcement dated 1st January 2020, it is
hereby notified for general information that in view of the ongoing spurt of the
COVID-19 pandemic and in the interest of the wellbeing of students, the
Chartered Accountant Examinations initially scheduled from 2nd May 2020 to 18
May 2020 stand rescheduled and the said examinations shall now be held from
19th June 2020 to 4th
July, 2020 as per details given in this announcement.
 ICAI accounting & auditing advisory Board issues document titled “impact of
coronavirus on financial reporting and the auditors consideration”.
Download here
 Earn Structured CPE via Video series on Bank Branch Audit - ICAI Digital
Learning Hub.
Click here for more
 Corporate Laws
 Notification/ Circular/ Advisories Issued by the Ministry of Corporate Affairs in
view of COVID-19 outbreak.
Download here
 The Insolvency and Bankruptcy Law
 Legal updates- NCLT | NCLAT | SUPREME COURT
Sr.No. Key to find the
document
Authority who
passed the
order
Details of decision
Provisions
discussed
Decision
1 2020] 115
taxmann.com 362
Ugro Capital Ltd.
CA (AT)
(INSOLVENCY)
NO. 984 OF 2019
NCLAT Delhi Section 7 Rejection order of
CIRP plea arising out
of decree to be set
aside if not
challenged till filing
CIRP plea.

of 9
.
 News/Latest Developments/Other updates
Separate GST registrations confuse interim resolution professionals
IRPs appointed under the Insolvency and Bankruptcy Code (IBC) have
approached the finance ministry, seeking clarity on several aspects regarding
the Central Board of Indirect Taxes and Customs (CBIC) notification issued on
Saturday and a follow-up circular on Monday, people familiar with the
development said.
ET Report
 PSB mergers the new hurdle for resolutions under IBC.
The approaching deadline for the merger of small public sector banks with their
larger counterparts is slowing down resolution of cases under the Insolvency
and Bankruptcy Code (IBC). The deadline to complete the mergers is 1 April.
While small state-run banks generally have limited influence in lender
committees of large assets, in cases where they have a substantial say, key
decisions on resolution are being postponed until the ongoing mergers are
completed.
Mint Report
 Raising of IBC Threshold: Retrospective or Prospective?
Assuming for a moment that there will be no suspension of proceedings under
Sections 7, 9 and 10 of the IBC, the question that now arises is whether the IBC
notification apply prospectively, or will it apply retrospectively to
existing/pending applications filed under Sections 7 and 9 as well?
Live Law explains it here
 Coronavirus outbreak: Why FM Sitharaman's decision to relax IBC is an
important move for businesses.
A report by world body United Nations has stated that the impact on Indian
trade on account of the Covid-19 global pandemic would be to the tune of
around $348 million. The report further mentions that India features among the
top 15 global economies adversely impacted by the manufacturing slowdown in
China. With factories facing closures, manufacturing activity coming to a
standstill, supply chains getting rapidly depleted and companies witnessing a
negative pressure on their cash flows, times ahead are challenging for corporate
India. Government's move to consider raising the threshold limit to file any
action under IBC from Rs. 1 lakh to Rs. 1 crore has come as a huge relief booster
shot for SSMEs and small businesses which operate at the lower spectrum of
the economic value chain.
Here is report from Business Today

of 9
 Security and Exchange Board of India (SEBI)
 SEBI gave further relaxations from compliance with certain provisions of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(LODR) and the SEBI circular dated January 22, 2020 relating to Standard
Operating Procedure due to the CoVID -19 virus pandemic.
SEBI Circular No.: SEBI/HO/CFD/CMD1/CIR/P/2020/48 dated 26th
March, 2020.
Summary of relaxations.
 Filling related
 Conduct of Committee meetings – Nomination and Remuneration
Committee, Stakeholders Relationship Committee and Risk Management
Committee.

of 9
 Relaxation of the operation of the SEBI circular on Standard Operating
Procedure dated January 22, 2020.
SEBI vide circular no. SEBI/HO/CFD/CMD/CIR/P/2020/12 dated January 22, 2020
issued the Standard Operating Procedure (SoP) on imposition of fines and
other enforcement actions for non-compliances with provisions of the LODR,
the effective date of operation of which is for compliance periods ending on
or after March 31, 2020. The said circular dated January 22, 2020 shall now
come into force with effect from compliance periods ending on or after June
30, 2020. It may be noted that the SoP circular dated May 03, 2018 would be
applicable till such date.
 Publication of advertisements in the newspapers
Regulation 47 of the LODR requires publishing, in the newspapers,
information such as notice of the board meeting, financial results etc. It has
been decided to exempt publication of advertisements in newspapers as
required under regulation 47 for all events scheduled till May 15, 2020.
 SEBI gives relaxation from compliance with certain provisions of the
SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 due
to the COVID-19 pandemic.
The disclosure filings under Regulations 30(1), 30(2) and 31(4) of the SEBI
(Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SAST
Regulations), require the shareholders to compile, collate, and disseminate
information of their consolidated shareholding as on March 31, 2020, to the
company and the stock exchanges within seven working days from the end of
the financial year. These report as per the 2020 calendar are required to be filed
by April 15, 2020. This date is now extended to June 1, 2020.
Here is SEBI Circular SEBI/HO/CFD/DCR1/CIR/P/2020/49 dated 27/03/2020
 Director General of Foreign Trade (DGFT)
 A Helpdesk has been operationalized by DGFT for export and import related
issues being faced in the current situation. Exporters & importers may directly
flag their issues through any of the following channels –
Email at dgftedi@nic.in
Call at Toll free number 1800-111-550
Source- DGFT Twitter Account

of 9
 Reserve Bank of India
 RBI released COVID-19 – Regulatory Package
Reserve Bank of India in its seventh bi-monthly policy statement for year 2019-
2020 has decided to cut repo rate by 75bps to 4.4% from 5.15 % with immediate
effect. Reverse repo cut by 90bps bps at 4%. In order to mitigate economic risks
due to Covid-119 crisis, RBI has also taken other important measures like
allowing of 3-month moratorium on EMIs and Deferment of Interest on Working
Capital Facilities.
 Rescheduling of Payments – Term Loans and Working Capital Facilities
 In respect of all term loans (including agricultural term loans, retail and
crop loans), all commercial banks (including regional rural banks, small
finance banks and local area banks), co-operative banks, all-India Financial
Institutions, and NBFCs (including housing finance companies) (“lending
institutions”) are permitted to grant a moratorium of three months on
payment of all instalments1 falling due between March 1, 2020 and May 31,
2020. The repayment schedule for such loans as also the residual tenor,
will be shifted across the board by three months after the moratorium
period. Interest shall continue to accrue on the outstanding portion of the
term loans during the moratorium period.
 In respect of working capital facilities sanctioned in the form of cash
credit/overdraft (“CC/OD”), lending institutions are permitted to defer
the recovery of interest applied in respect of all such facilities during the
period from March 1, 2020 up to May 31, 2020 (“deferment”). The
accumulated accrued interest shall be recovered immediately after the
completion of this period.
 Easing of Working Capital Financing
In respect of working capital facilities sanctioned in the form of CC/OD to
borrowers facing stress on account of the economic fallout of the
pandemic, lending institutions may recalculate the ‘drawing power’ by
reducing the margins and/or by reassessing the working capital cycle. This
relief shall be available in respect of all such changes effected up to May
31, 2020 and shall be contingent on the lending institutions satisfying
themselves that the same is necessitated on account of the economic
fallout from COVID-19. Further, accounts provided relief under these
instructions shall be subject to subsequent supervisory review with regard
to their justifiability on account of the economic fallout from COVID-19.
Here is RBI Notification

of 9
 New acts notified/Bills introduced in parliament or Executive
orders by President.
 Government notifies Finance Act, 2020 as President gives assent to the Finance
Bill 2020
The Finance Bill, 2020 has received the assent of the President. Finance Act, 2020
amended various provisions of the Income-tax Act, 1961 which are related to
salaries, capital gain tax, deductions etc.
Here is notified copy
 Economy & Finance
 SBI passes on entire repo rate cut to borrowers.
Hours after the Reserve Bank of India reduced the repo rate by 75 basis points,
the country's largest lender State Bank of India on Friday said it would pass on
the entire cut to its customers, effective April 1.
TOI Report
 RBI loads ₹3.74 trillion bazookas in war on coronavirus pandemic.
The Reserve Bank of India (RBI) on Friday went all out to make ample liquidity
available in the market and nudge banks to aid the productive sectors of the
economy, announcing measures to inject ₹3.74 trillion. The measures include
targeted long-term repo operations (TLTRO) of up to ₹1 trillion, a 100-basis point
(bps) cut in cash-reserve ratio (CRR) and easier borrowing requirements under
the marginal standing facility (MSF) window. RBI said the CRR cut and easier
MSF rules will infuse ₹1.37 trillion each. The central bank also reduced the
reverse repo rate by 90bps to 4%, making it less attractive for banks to simply
park money with the RBI instead of lending.
Mint Report
SAVE WATER || SAVE UNIVERSE

=============================================
About Scribbler
PRADEEP GOYAL
 Fellow Member of the Institute of
Chartered Accountants of India.
 Associate member of Professional
Accounting Body of Certified
Practising Accountants (CPA),
Australia.
 Registered Valuer with IBBI- Asset
Class- Securities or Financial Assets
 CFA (Corporate Finance)- Columbia
Business School, USA | EMERITUS
Institute of Management, Singapore.
 Certified Goods & Service Tax
Practitioner from ICAI & Ministry of
Micro, Small & Medium Enterprises,
Government of India.
================================
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Newsletter on daily professional updates- 28/03/2020