GST Update

[CA Raj Chawla]

Respected Members,

Quotes of the day:

1. We can win life by all means, If we simply avoid two things in our life. Comparing with others and expecting from others.

 

2. Minimum requirements and Maximum adjustments are the two wonderful steps for a happy and successful life.

  

GST Update;

 

1. ITAT Chennai decided that Commercial Property Not a Residential House for Section 54F Exemption under Income Tax Act. ITAT Chennai in Kesavan Vanithamani Vs. ITO.

2. GST Update: From February 2026, taxpayers can utilize CGST and SGST Input Tax Credit (ITC) in any order to pay IGST liability, after fully exhausting IGST credit. This change brings flexibility to manage cash flow and optimize ITC utilization .

3. Key Highlights:

· Flexible Order: No specific sequence for using CGST and SGST ITC to pay IGST liability

· IGST Credit First: IGST ITC must be fully utilized before using CGST or SGST ITC

· Optimised Cash Flow: Reduce unnecessary cash payments and utilize credits efficiently

· Portal Update: GSTR-3B return form updated to reflect this change

4. Example:

·       IGST Liability: ₹5,00,000

·       IGST ITC: ₹1,50,000

·       CGST ITC: ₹2,50,000

·       SGST ITC: ₹2,00,000

 

5. You can now choose to pay the remaining IGST liability (₹3,50,000) using:

·       Only CGST ITC

·       Only SGST ITC

·       Any combination of CGST and SGST ITC

 

6. This change is a portal enhancement, and the law (Section 49 of the CGST Act and Rule 88A of the CGST Rules) remains the same.

 

7. ICAI notified the global networking guidelines, paving the way for creating large home grown domestic chartered accountant firms wherein they can also collaborate with global networks. The guidelines would also bring the working of "Global Networks of Chartered accountants (or equivalent in respective jurisdictions) under the regulatory jurisdiction of ICAI in so far as their Indian operations are concerned", 

 

8. According to the notification. The move also assumes significance against the backdrop of larger government efforts to have homegrown big accounting firms that can help create more opportunities in the country's growing economy and also compete at the scale of global players.

 

9. For getting more updates on job vacancies by employers and employees Kindly join our page CA Job Network https://www.facebook.com/groups/200820690083153

With best regards

CA (Dr) Raj Chawla

B.Com (Hons), FCA, FCS, FCMA, LLB 

MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)

712, New Delhi House

27,Barakhamba Road, New Delhi-110001

Ph. Off. 011-43581083

Cell: 98110-81083

rajch...@gmail.com