PAN rules under New Income Tax Rules

 

PAN rules under New Income Tax Rules

CBDT has notified Income Tax Rules, 2026 under the new Act, with clear impact on PAN applications and transaction reporting.

⟢ PAN application — stricter from April 2026

- Aadhaar-only PAN application removed

- DOB proof now mandatory (Passport / DL / 10th certificate / Voter ID etc.)

- Till 31 March 2026 → Aadhaar-only still valid

 

⟢ New PAN application forms (category-based)

- Form 93 → Indian Individuals

- Form 94 → Indian Entities

- Form 95 → Foreign Individuals

- Form 96 → Foreign Entities

 

⟢ Pending applications — no impact

- Applications filed before 31 March 2026 remain valid

- No need to reapply under new rules

 

⟢ PAN thresholds for transactions — significantly revised

- Cash transactions → PAN if aggregate ≥ ₹10 lakh/year (earlier ₹50K/day)

- Motor vehicle purchase → PAN if > ₹5 lakh (earlier all vehicles)

- Hotels/events/restaurants → PAN if > ₹1 lakh (earlier ₹50K)

- Property transactions → PAN if > ₹20 lakh (earlier ₹10 lakh)

 

- 

CA. Krishna Kr Neeraj

GST : WHAT IS REVERSE CHARGE MECHNISM (RCM) ?

WHAT IS REVERSE CHARGE MECHANISM UNDER GST ?

Under the Goods and Service Tax (GST) Laws, when the tax liability falls on the Recipient rather than the Supplier, it is called Reverse Charge Mechanism (RCM).

This is exception to general rule of law that every supplier is required to pay GST to the Government on the supply of goods or services made to the Recipient.

CA. Krishna Kr Neeraj

Collection of Tax at Source (TCS) under GST for E-Commerce Operators

What is TCS under GST?

TCS under GST refers to Tax Collected at Source under GST.  Section - 52, Central Goods And Services Tax Act, 2017 deals with TCS under GST.  TCS are calculated as a percentage of Net taxable supplies. Except for a few exceptions, every e-commerce operator must begin collecting TCS on October 1, 2018.

Who are liable to deduct TCS under GST?

There are certain ecommerce operators who own, operate and manage ecommerce platform through which sellers (suppliers) and buyers entered into transaction online and consideration were collected by such ecommerce operator.   In such cases, TCS provisions are applicable. However, there are followings exceptions to the TCS provisions for the services provided by an e-commerce platform:

o  Hotel accommodation/clubs (unregistered suppliers)

o  Transportation of passengers – radio taxi, motor cab or motorcycle 

o  Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)

For example, where some manufacturers or suppliers sell its product through Amazon, Flipkart or other ecommerce platform (ECOM). such ECOM being e-commerce operators, are liable for deduction of TCS before making payment of consideration to such suppliers.

What is the TCS rate under GST?

The dealers or traders supplying goods and/or services through e-commerce operators will be subject to deduction of TCS @ 1%.  

TCS at 1% will be collected for intra-state supplies, i.e. 0.5% under CGST and 0.5% under SGST.  Similarly, the TCS rates for transactions between states will be 1%, as the IGST Act requires. [Notification No. 52/2018 under the CGST Act and 02/2018 under the IGST Act]

GST - Furnishing of Bank Account Details. [Rule 10A of CGST Rule 2017]

GST - Furnishing of Bank Account Details. [Rule 10A of CGST Rule 2017]

Rule 10A has been inserted in the Central Goods & Service Tax Rules 2017 vide Notification No. 31/2019 - CT dated 28.06.2019. 

As per Rule 10A, Once certificate of registration in FORM GST REG-06 has been issued  and made available and GSTIN has been assigned to the registered person, He has to furnish bank details or other information as asked to be submitted at common GST portal as per below

Earlier of 

- 45 days ( Forty Five Days) from the date of grant of registration  or 

- the date on which the return is due to be furnished,

 

Followings are the exceptions of the above:

1) Where Grant of registration is made to the persons required to deduct tax at source or to collect tax at source under Rule 12

2) Where Suo Moto Reistration has been granted under Rule 16 in pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer findsthat a person liable to registration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in Form GST REG-12.

GST - Aadhaar authentication for registered person [Rule 10B of CGST Rules, 2017]

 GST - Aadhaar authentication for registered person [Rule 10B of CGST Rules, 2017]

Rule 10B has been inserted in Central Goods and Service Tax Rules, 2017 vide Notification No. 35/2021-Central Tax dated 24.09.2021 (w.e.f. 01.01.2022 vide Notification No. 38/2021-C.T., dated 21.12.2021)

The registered person who has been issued a certificate of registration under rule 10 shall undergo authentication of the Aadhaar number as per below table 1 below:

Table 1: Nature of Registered Person and Authentication of Aadhar Number

Sr. No.	Nature of Registered Person	Authentication of Aadhaar number of
1	Proprietorship firm	The proprietor
2	Partnership firm	Any partner
3	Hindu undivided family	The Karta
4	A company	Managing Director or any whole time Director
5	AOP, BOI, or a Society	any of the Members of the Managing Committee
6	Board of Trustees	The Trustee

Apart from the above, in cases as mentioned in Table 2 below, aadhar authentication of Authorised Signatory is also required 

Table 2 : Purpose and Authentication of Aadhar Number

Sr. No.	Purpose	Authentication of Aadhaar number of
1	For filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23	Authorized Signatory***
2	For filing of refund application in FORM RFD-01 under rule 89	Authorized Signatory***
3	For refund under rule 96 of the integrated tax paid on goods exported out of India	Authorized Signatory***

Where Aadhaar number has not been assigned to the person who are required to undergo authentication of the Aadhaar number, such person shall furnish the following identification documents, namely: -

(a) her/his Aadhaar Enrolment ID slip; (Mandatory Document)

and

(b) Anyone of below mentioned documents

 (i) Bank passbook with photograph; or

(ii) Voter identity card  or

(iii) Passport; or

(iv) Driving license 

Such person shall undergo the authentication of Aadhaar number within a period of thirty days of the allotment of the Aadhaar number.

GUIDELINES FOR DISALLOWING DEBIT OF ELECTRONIC CREDIT LEDGER UNDER RULE 86A OF THE CGST Rules, 2017

 

GUIDELINES FOR DISALLOWING DEBIT OF ELECTRONIC CREDIT LEDGER UNDER RULE 86A OF THE CGST Rules, 2017

The Central Board of Indirect Taxes and Customs vide CBEC-20/16/05/2021-GST/1552 dated 02^nd November 2021 issued guidelines for disallowing debit of electronic credit ledger under Rule 86A of the CGST Rules, 2017- Reg.

As per Rule 86A of the Central Goods and Services Tax Rules, 2017 (“the Rules”), there are certain circumstances, Commissioner or an Officer authorized by him, on the basis of reasonable belief that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible, may not allow debit of an amount equivalent to such credit in electronic credit. ledger.

This guidelines has been issued to clarify Grounds for disallowance of debit of an amount in electronic credit ledger.

GROUNDS OF THE REASONS FOR BELIEF BY THE COMMISSIONER OR AN OFFICER AUTHORIZED BY HIM

1. The credit is availed by the registered person on the invoices or debit notes issued by a supplier, who is found to be non-existent or is found not to be conducting any business from the place declared in registration.
2. The credit is availed by the registered person on invoices or debit notes, without actually receiving any goods or services or both.
3. The credit is availed by the registered person on invoices or debit notes, the tax in respect of which has not been paid to the government.
4. The registered person claiming the credit is found to be non-existent or is found not to be conducting, any business from the place declared in registration.
5. The credit is availed by the registered person without having any invoice or debit note or any other valid document for it.

 

PROPER AUTHORITY FOR THE PURPOSE OF RULE 86A

Commissioner/Principal Commissioner may authorize any officer subordinate to him, not below the rank of Assistant Commissioner, to be the proper officer for exercising powers under rule 86A based on the following monetary limits as mentioned below:

 

Total amount of ineligible or fraudulently availed input tax credit	Officer to disallow debit of amount from electronic credit ledger under rule 86A
Not exceeding Rupees 1 crore	Deputy Commissioner/ Assistant Commissioner
Above Rupees 1 crore but not exceeding Rs 5 crore	Additional Commissioner/ Joint Commissioner
Above Rs 5 crore	Principal Commissioner/ Commissioner

The Additional Director General /Principal Additional Director General of DGGI can also exercise the powers assigned to the Commissioner under rule 86A.

Procedure for disallowing debit of electronic credit ledger/blocking credit under Rule 86(A):

The amount disallowed for debit from electronic credit ledger should not be more than the amount of input tax credit which is believed to have been fraudulently availed or is ineligible, as per thr conditions/grounds mentioned in sub-rule (1) of rule 86A.

The action by the Commissioner or the authorized officer, as the case may be, to disallow debit from electronic credit ledger of a registered person, is informed on the portal to the concerned registered person, along with the details of the officer who has disallowed such debit.

 

Allowing debit of disallowed/restricted credit under sub–rule (2) of Rule 86A:

The Commissioner or the authorized officer, as the case may be, either on his own or based on the submissions made by the taxpayer with material evidence thereof, may examine the matter afresh and on being satisfied that the input tax credit, initially considered to be fraudulently availed or ineligible as per conditions of sub-rule (1) of rule 86A, is no more ineligible or wrongly availed, either partially or fully, may allow the use of the credit, so disallowed/restricted up to the extent of eligibility, as per powers granted under sub-rule (2) of rule 86A.

Reasons for allowing the debit of electronic credit ledger, which had been earlier disallowed, shall be duly recorded on file in writing, before allowing such debit of electronic credit ledger.

The restriction imposed as per sub-rule (1) of rule 86, cease to have effect after the expiry of a period of one year from the date of imposing such restriction.

GST - TDS under Goods and Services tax (GST) Laws in India

 TDS under GST Laws in India

 CONCEPT OF TDS UNDER INCOME TAX LAWS

We are aware about concept of Tax Deduction at source (TDS) under Income Tax. Tax Deduction at Source (TDS) is a mechanism under which part of money payable to recipient is deducted as (TDS) by payer at the time of making payment/credit of account whichever is earlier. Recipients gets the credit of TDS in its tax account (PAN)

TDS under GST

Now concept of TDS has already been introduced under Goods and Services tax (GST) (under section 51 of the CGST act to be read with CGST rule 66). 

Accordingly, certain notified registered persons will be required to deduct these taxes while making payments to the registered supplier. In other words, TDS under GST shall be deducted and deposited with the Government by the payer and nothing has to be done by the payee in such case i.e., the person issuing invoice has nothing to do and the payer will do the TDS on the basis of invoice issued.

The provisions pertaining to TDS under GST is given under section 51 of the CGST act to be read with CGST rule 66.

WHO IS LIABLE TO DEDUCT TDS under GST?

Following are the categories of person who will be required to do the TDS:

• A department or an establishment of the Central Government, State government; or
• Local authority; or
• Governmental agencies; or
• Such persons or category of persons as may be notified by the Government

the following entities also need to deduct TDS as notified by the Government-

• An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity (control) owned by the government.
• A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860.
• Public sector undertakings.

One may note that at present, only above categories of person are required to do the TDS under GST.

RATE OF TDS under GST

TDS is required to be deducted at the rate of 2% (1% SGST and 1% CGST or 2% IGST) on payments made to the supplier of taxable goods and/or services,

THRESHOLD LIMIT FOR TDS under GST

Where the total value of supply, under an individual contract, exceeds Rs.2,50,000/-, then provision of TDS under GST shall be applicable.

WHEN TDS under GST NOT APPLY

ü  No deduction of Tax is required when the location of supplier and place of supply is different from the State of the registration of the recipient.

ü  Where the total value of supply, under an individual contract, is less than Rs.2,50,000/-,

HOW WILL THE VALUE OF SUPPLY ON WHICH TDS SHALL BE DEDUCTED BE CONSIDERED?

TDS under GST shall not be deducted on the CGST, SGST or IGST charged in the invoice.

In other words, for the purpose of deduction of TDS under GST, the value of supply is to be taken as the amount excluding the tax indicated on the invoice.

WHEN SHOULD THE TDS under GST BE PAID?

TDS shall be paid within 10 days from the end of the month in which tax is deducted.

WHAT ARE THE PROVISIONS RELATING TO THE ISSUE OF TDS CERTIFICATES UNDER THE GST LAW?

TDS certificate in form GSTR-7A is required to be issued by the person deducting tax under GST to the concerned person within 5 days of depositing the tax to the government.

Moreover, GST portal will automatically make GSTR-7A available to the deductee on the basis of GSTR-7 filed.

WHAT ARE THE CONSEQUENCES OF NON-COMPLIANCES UNDER TDS under GST?

Sl. No.	Event	Consequence
1.	TDS not deducted	Interest to be paid along with the TDS amount; else the amount shall be determined and recovered as per the law
2.	TDS certificate not issued or delayed beyond the prescribed period of five days	late fee of Rs. 100/- per day subject to a maximum of Rs. 5000/
3.	TDS deducted but not paid to the Government or paid later than 10th of the succeeding month	Interest to be paid along with the TDS amount;
4.	Late filing of TDS under GST returns	Late fee of Rs. 100/- for every day during which such failure continues, subject to a maximum amount of five thousand rupees

 

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