Assessee in this case M/s RSB transmission India Ltd filed its GST return for the period July 2017 to December 2019 belatedly. Assessee had deposited part of cash liability in its electronic cash ledger before due date. However, GST authorities demanded interest from the assessee for the period from due date of filing of GST returns till date of actual filing of return and the interest was demanded on entire portion of GST liability which was paid from balance available in electronic cash ledger. Being aggrieved by this demand, assessee filed a writ petition before High Court of Jharkhand and contended that to the extent of amount deposited in electronic cash ledger before the due date, the assessee is not liable to pay interest.
The High Court a combined reading of section 39(7), 49(1) and 50 (1) of the Central GST Act read with the proviso to Rule 61(2) of the Central GST Rules held that that the registered person is required to discharge his tax liability by debiting the electronic cash and credit ledger and the same is done while filing GSTR-3B of the said period. Thus, depositing cash in electronic cash ledger does not amount to payment of GST Liability. Thus, the High Court upheld the entire interest demand and dismissed the writ petition filed by the assessee.
Assessee in this case M/s Yokohama India Pvt Ltd inadvertently mentioned wrong GST number of one of its distributor in its GSTR-1 return due to which the distributor was unable to claim input tax credit. Since the statutory time period to rectify this error in GSTR-1 was already over, the assessee filed writ petition before Telangana High Court seeking to issue a direction to GST department to allow amendment in GSTR-1 and enable the assessee to rectify this error. The High Court held that the GST law provides for rectification of errors and omission in the specified manner. An assessee cannot be permitted to carry out the rectification beyond the statutorily prescribed period as it would inevitably affect obligations and liabilities of other stakeholders because of the cascading effect in the electronic records. Further, the High Court held that allowing the assessee to carry out rectification of errors and omissions beyond the statutorily prescribed period would lead to complete uncertainty and collapse of the tax administration. Thus, High Court rejected the request of the assessee to allow rectification of GSTR-1 return beyond the statutory time period.
However, it is pertinent to mention that, a contrary view has been taken by Jharkhand High court in case of M/s Mahalaxmi Infra Contract Ltd, where the HC allowed the rectification of GSTR-1 beyond the statutory time period and stated that the rectification in GSTR-1 does not generate any additional tax payment or loss of revenue to government; whereas, allowing the assessee to mention the correct GST number will enable the correct recipient to avail the input tax credit.
Considering the relevance of work from home scenario, the concern of security has gone up significantly. It is extremely challenging to identify attacks on remote devices. Thus, some pointers for a safe remote working environment.
On 4th November 2022, the Accounting and Corporate Regulatory Authority (ACRA) issued Financial Reporting Guidance No.1 of 2022 on Areas of Review Focus for FY 2022 Financial Statements highlighting financial reporting areas that may require closer attention by directors in the review of the FY2022 Financial Statements. To drive sustainable audit quality, ACRA has expanded the scope of the guidance to cover areas that audit committees should pro-actively engage their external auditors on to include the auditor’s assessment of risk, use of technology in audits, auditor independence, findings from ACRA’s audit inspections and audit quality indicators.
On 2nd November 2022 the Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) has launched eGuarantee@Gov, a simple and secure digital process for businesses and individuals to provide a banker’s guarantee or insurance bond (collectively, “guarantee”) to government agencies within a day. It was jointly developed with the Association of Banks in Singapore (ABS) and in consultation with the General Insurance Association of Singapore (GIA).
With eGuarantee@Gov, businesses and individuals will no longer need to apply for a paper guarantee from a financial institution (FI), collect it when it is ready, and deliver the guarantee to the government agency, to discharge their contractual or licensing obligations. Businesses and individuals can instead apply for an eGuarantee from over 20 participating FIs through their websites or email for direct submission to 17 government agencies. More FIs and agencies are scheduled to come onboard eGuarantee@Gov by end 2023.
FIs and government agencies will also benefit from this more streamlined and simpler workflow. eGuarantee@Gov employs standardised texts which eliminate the need for each guarantee to undergo legal vetting. The eGuarantees are securely transmitted through the Singapore Customs’ Networked Trade Platform (NTP).
On 3rd November 2022 the Monetary Authority of Singapore (MAS) launched Ubin+, an expanded collaboration with international partners on cross-border foreign exchange (FX) settlement using wholesale central bank digital currency (CBDC).
Ubin+ will focus on the following:
As part of Ubin+, the following projects will be undertaken with international partners:
On 25th November 2022 the United Kingdom (UK) and Singapore held the 7th UK-Singapore Financial Dialogue in Singapore. Both countries renewed their commitment to deepening the UK-Singapore Financial Partnership that was agreed in 2021, discussed mutual priorities such as sustainable finance, FinTech and innovation, and agreed on further cooperation in these areas.
At the Financial Dialogue, the UK and Singapore agreed on a Memorandum of Understanding on the UK-Singapore FinTech Bridge . The FinTech Bridge seeks to support continued growth, investment, and technological innovation in this sector, building on active interest of FinTech players in the areas of payments, RegTech and wealth management. Both countries strongly welcomed this deepened co-operation on FinTech and the opportunities the industry can deliver in relation to financial inclusion, enhanced innovation, and improved outcomes for consumers.
As a general rule, purchases of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on or after 1 Jan 2023 will be subject to GST at 8%.
To help Singaporeans cope with the impact of the GST increase, the Government rolled out a $6.6 billion Assurance Package earlier this year. In Nov 2022, it was announced that this package would be further enhanced to $8 billion. More details will be shared at Budget 2023.
Singaporean households will also continue to benefit from the permanent GST Voucher Scheme and the absorption of GST for publicly subsidised education and healthcare.
Ahead of the GST rate change, here are 3 things you need to know:
From 1 January 2023, the prices displayed by GST-registered businesses must be inclusive of GST at 8%. That is the final price you pay. Businesses that are unable to switch their price display overnight may display 2 prices:
An exemption is granted to hotels and F&B establishments that impose service charge on their goods and services. They are not required to display GST-inclusive prices due to an exemption to ease their operations. However, they must still display a prominent statement so that customers are aware that the prices are subject to GST and service charge.
Generally, purchases of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on/after 1 Jan 2023 will be subject to GST at 8%. As a consumer, you may order an item or sign up for services but only pay at a later date. WHEN you pay for the goods and services will determine which GST rate will be charged.
For transactions that span 1 Jan 2023, GST transitional rules may apply. A transaction spans the GST rate change where one or more of the following events takes place wholly or partially on/after 1 Jan 2023:
If a business raises its prices, it is not acceptable for the business to use the GST increase as the reason for raising prices before the GST rate change, nor is it acceptable for a business to raise prices by more than the GST increase after the GST rate change, citing the GST increase as the reason.
To level the playing field for local businesses so that they can compete effectively with online/ overseas suppliers and ensure parity in GST treatment for goods and services consumed locally, consumers in Singapore will need to pay 8% Goods and Services Tax (GST) on the purchase of low-value goods (LVG) and non-digital services from 1 Jan 2023, as announced in Budget 2021.
The Inland Revenue Authority of Singapore (IRAS) has published the summary of Income Tax Advance Ruling Issued on 1st December 2022. The summary includes the Income Tax advance ruling issued to Individual Income tax and other than Individual Income tax
The IRAS publishes summaries of advance rulings to enhance taxpayers’ understanding of the IRAS’ interpretation and application of the tax legislation in specific scenarios. The summaries are published in a redacted form that does not identify the applicant, the arrangement, any other parties to the arrangement, the date of the transaction, or the transaction values.
An advance ruling is a written interpretation of the Income Tax Act 1947 on how certain issues that arise from a proposed arrangement are to be treated for tax purposes. A ruling request has to be one where there are issues that require interpretation of the law, and not one seeking to know what the law clearly provides (e.g. what is the basis period for trade income).
IRAS has published the format of Application form for income tax advance ruling
The procedure to apply for Income tax advance ruling, application process, fee structure and the summary of Income Tax Advance Rulings issued is given in the link below.
The Singapore Exchange Regulation (SGX RegCo) published a public consultation paper proposing to amend the Listing Rules to impose a hard nine-year limit on the tenure of independent directors, removing the current two-tier voting rule. The SGX RegCo is also proposing mandatory disclosures of the actual amounts of the remuneration of each listed company director and chief executive officer.
The proposal includes a one-year transitionary period for companies to find suitable independent directors.
Currently, Listing Rule 210(5)(d)(iii) of the SGX-ST Mainboard Rules and Listing Rule 406(3)(d)(iii) of the SGX-ST Catalist Rules provide that a director of a listed issuer is not independent if he/she has been a director of a listed issuer for an aggregate period of more than nine years (whether before or after listing) unless his/her continued appointment as an ID has been approved in separate resolutions by:
(i) all shareholders of the issuer; and
(ii) shareholders of the issuer excluding its directors and CEO and associates of the directors and CEO (“Two-tier Vote”).
In line with CGAC’s recommendation, SGX RegCo proposes to amend the SGX-ST Mainboard Rules and SGX-ST Catalist Rules to:
Currently, Principle 8 of the Code provides that a listed issuer must be transparent on its remuneration policies, level and mix of remuneration, the procedure for setting remuneration, and the relationships between remuneration, performance and value creation. Provision 8.1 of the Code recommends that a listed issuer should disclose in its annual report the policy and criteria for setting remuneration, as well as names, amounts and breakdown of remuneration of, among other things, each individual director and the CEO.
SGX RegCo is of the view that the remuneration details of directors and the CEOs should be transparent as they have a fiduciary duty and the question of competition is less of a concern. Therefore, it is proposed that the SGX-ST Mainboard Rules and SGX-ST Catalist Rules be amended to require:
Estimated Chargeable Income (ECI) (September year-end)- 31- December-2022
GST Return: October 2022 – December 2022- 31 January 2023