1. Before deducting TDS, ensure that the person whose TDS you are deducting has got his/her PAN linked with Aadhar by virtue of amendment to Rule 114 AAA w.e.f. 1st April 2023. If PAN is not linked with Aadhar, deduct TDS at higher rate as per section 206AA read with Rule 114AAA(3)(iii) which could be @ 20% and TCS u/s 206CC read with Rule 114AAA(3)(iv).
2. The department has started creating demand for the difference. To check the status of PAN linked with Aadhar, you may Login to TRACES at https://www.tdscpc.gov.in/
3. Government is considering more intense technology-based advance risk profiling to pre-empt input tax credit frauds and block suspected claims until they pass through scrutiny as GST evasion worth over 4 lakh crore has been detected in just four years with less than 30% recovery.
4. E-Way Bill System has issued an Advisory dated January 05, 2024 stating that the New HSN Code Requirements for E-Way Bills Effective February 01, 2024; 6 Digits for AATO > Rs. 5 Crores, 4 Digits for AATO < Rs. 5 Crores.
5. As per the notification No. 78/2020 –Central Tax, dated October 15, 2020, it is necessary to provide at least 6 digit HSN code for all the B2B and Export transactions by the taxpayers whose Annual Aggregate Turnover (AATO) is more than Rs. 5 Crores.
6. The taxpayers, with AATO less than Rs. 5 Crores, need to provide at least 4 digit HSN code. This validation will be implemented in the e-way bill System from February 01, 2024. The taxpayers are advised to make necessary changes in their systems and enter 4 / 6 digit HSN codes while generating the e-way bills through web and API systems from February 01, 2024.
By CA Raj Chawla
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