CA Akshit Singhal

CA | Tax • Audit • GST • Business Advisory | Turning numbers into growth strategies | State Bodybuilding Champ 🏆 | Discipline in Gym = Discipline in Books 💼

[CA Akshit Singhal @CAAkshitSinghal]

Calling MDR a "merchant-only cost" is sheer economic denialism: 🛑

1. Pass-Through Realities: When a Kirana store is hit with a 0.25%–0.5% MDR, they don't take a pay cut. They silently raise prices on basic goods or put up "Min ₹500 for UPI / Cash Preferred" boards.

2. Daily Inflation: Whether it’s GST hikes, fuel cess, or now transaction fees and the middle class ALWAYS ends up picking up the tab at the checkout counter.

3. Death of Digital Convenience: The entire point of UPI was zero-friction ₹10 payments. The moment vendors feel squeezed, cash comes roaring back.

Stop hiding behind technical framing. Every charge imposed on a seller comes directly out of the common man's pocket!

[Nirmala Sitharaman @nsitharaman]

Before spreading a canard, @Jairam_Ramesh ji, please consider this:
1. Merchant Discount Rate (MDR) applies only on the merchants and not on the end users/customers. It will support the Banks & Fintech to invest more on infrastructure, innovation & security. All users of UPI will reap the benefits of this investment.
2. ⁠More importantly, the UPI and Services Steering Committee headed by NPCI is yet to decide on the MDR. This will happen after the Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026, which propses to amend Section 10A of the Payment and Settlement Systems Act, 2007.
3. All this could have been discussed on the floor of the House if your party @INCIndia engages constructively in Parliament when the Bill was/is tabled. (LS/RS respectively).

[CA Akshit Singhal @CAAkshitSinghal]

The macro vision is appreciated. But on the ground, the tax administration is entirely algorithm-driven, and algorithms are programmed for suspicion, not trust.

Automated DRC-01C notices block a business's GSTR-1 in 7 days for a simple timing mismatch. Genuine buyers face heavy penalties for a vendor's retrospective cancellation.

We need the portal’s logic to match this philosophical shift. 'Ease of Doing Business' requires 'Ease of Compliance.'

[Narendra Modi @narendramodi]

At the core of India’s reform journey is a change in the philosophy of governance.

We are moving from ‘Prohibited unless permitted’ to ‘Permitted unless prohibited.’ Through Jan Vishwas, decriminalisation, the removal of thousands of compliances and many obsolete laws, we are reducing the burden on citizens and enterprises.

[CA Akshit Singhal @CAAkshitSinghal]

@FirstReportss True that !

[CA Akshit Singhal @CAAkshitSinghal]

Your holding company gave a corporate guarantee without charging a fee?
The GST department wants 1% of that amount. Every year.
Rule 28(2) created a trap for related parties even with zero consideration, officers demand tax on a “deemed” 1% value.
Fight back:
1. Full ITC Shield : If the recipient has full ITC, NIL value is valid. Madras HC quashed a demand where the officer ignored this.
2. No Retrospective Hit : Gujarat HC: Rule 28(2) applies only from Oct 26, 2023. Older guarantees can’t be taxed under it.
3. “Whichever Higher” Struck Down : Gujarat HC killed this clause. Real fee charged? GST applies only on that.

Don’t rush to pay 1% on a DRC-03. Check ITC eligibility, document Nil valuation, cite these rulings, contest the notice.

📌 Bookmark this.
Follow @CAAkshitSinghal for practical GST insights.

[CA Akshit Singhal @CAAkshitSinghal]

One crucial statutory nuance to add on the SEBI 2026 circular: The 50% portfolio overlap cap is NOT a blanket rule across all schemes. It strictly applies to Sectoral/Thematic funds and between Value & Contra funds.
SEBI explicitly exempted large-cap schemes from this 50% ceiling which is exactly why the large-cap redundancy you highlighted is a structural flaw that isn't going away.

[CA Akshit Singhal @CAAkshitSinghal]

@cakunikaagrawal 100% correct. Notification 8/2018 is a massive relief for businesses selling old assets, yet many still end up paying GST on the full transaction value out of sheer ignorance.
Negative margin = Zero GST payable. It really is that simple.

[CA Akshit Singhal @CAAkshitSinghal]

Completely unacceptable service delivery from @tripoholiic today.

• 1.5-hour uncommunicated departure delay.
• Passengers forced to wait in terrible conditions (next to an open gutter & zero AC).

Raised this multiple times with the team, but there was absolutely no resolution or accountability. A complete failure of basic operations. Proceed with caution if you are booking with them.

[CA Akshit Singhal @CAAkshitSinghal]

Urgent Walk-in for CAs | Deloitte USI (Audit)
📅 Tomorrow (22 Aug) | 8:00 AM - 10:00 AM
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Seeking: • Fresh CAs (Sept '25, Jan '26, May '26 attempts) • Seniors (2-3 yrs PQE)
Carry a Govt ID. Share with anyone looking! 🤝
#CAJobs #CharteredAccountant #TaxTwitter

[CA Akshit Singhal @CAAkshitSinghal]

@abhishekrajaram This is the third such order this year where “no response” was the department’s default assumption instead of checking the portal record.
You should always keep a filed-copy screenshot & ARN of your DRC-01A reply. It’s your strongest evidence if the AA claims non-response later.

[CA Akshit Singhal @CAAkshitSinghal]

Nobody becomes a CA by accident. Every late night, every failed attempt, every “I’ll try again” that’s the actual qualification, not just the certificate.

[CA Akshit Singhal @CAAkshitSinghal]

Vendor's GST registration cancelled retrospectively. Department wants you to reverse 3-year-old ITC + 18% interest + penalty.

Don't pay via DRC-03 on reflex. Here's your defense:

1. GSTIN was active on transaction date?
That matters. A subsequent retrospective cancellation doesn't automatically invalidate your Input Tax Credit.

2. Suncraft Energy (Calcutta HC, 2023)
The Department cannot force a buyer to reverse ITC without first exhausting recovery against the defaulting supplier unless there is proof of collusion or the supplier is untraceable.
(Note: SC declined to interfere due to the low tax effect, so treat it as strong persuasive authority, not a guaranteed statutory bar.)

3. Prove the transaction was genuine:
• Bank statements : Showing full invoice value + tax paid
• E-way bills & GRNs : Proving physical movement of goods
• Active GSTIN status screenshot on the transaction date (archive these for every vendor upon onboarding)

Reply to the SCN with this trail and cite Suncraft, Arise India, and relevant High Court precedents. Rushing to reverse ITC surrenders a completely valid statutory defense.

📌 Save this for your next GST scrutiny notice.
Follow @CAAkshitSinghal for practical GST & tax insights.

[CA Akshit Singhal @CAAkshitSinghal]

The 5 stages of grief for a CA: Denial, Anger, Bargaining, 3AM Filing, Acceptance (until next due date).

[CA Akshit Singhal @CAAkshitSinghal]

@RajeshM73084087 Hope this helps !

[CA Akshit Singhal @CAAkshitSinghal]

Rule 37 itself has no penalty provision and the exposure comes from Sec 73/74 if you don't pay. Since a missed 180-day window is a genuine compliance lapse (not fraud), it falls under Sec 73: pay tax + interest voluntarily before SCN = zero penalty. Pay after SCN but before order = reduced 15% penalty. Proactive compliance saves real money here.

[CA Akshit Singhal @CAAkshitSinghal]

You reversed the ITC. You still owe interest on it. 18%. From day one.

Miss the 180-day payment window to your vendor, and Section 16(2) forces an ITC reversal in GSTR-3B and most businesses know this.

What they miss: Rule 37 slaps mandatory 18% interest under Section 50 on that reversal, running from the date you availed the ITC, not the date you reverse it.

The upside - once you pay the vendor (even years later), you re-claim 100% of it in Table 4(A)(5), and Section 16(4)’s time limit doesn’t apply to the re-claim.

Action: run a 180-day creditor ageing check before every filing. Reverse proactively. Track it in a separate ledger so you don’t forget to re-claim.

📌 Bookmark this for month-end review.

Follow @CAAkshitSinghal for practical GST & tax insights.

[CA Akshit Singhal @CAAkshitSinghal]

Rule 37 itself has no penalty provision and the exposure comes from Sec 73/74 if you don't pay. Since a missed 180-day window is a genuine compliance lapse (not fraud), it falls under Sec 73: pay tax + interest voluntarily before SCN = zero penalty. Pay after SCN but before order = reduced 15% penalty. Proactive compliance saves real money here.

[CA Akshit Singhal @CAAkshitSinghal]

@CAHimankSingla Haha! 100%. Quality > Quantity always. Your timeline clears the 'follow-worthy' audit with a clean, unqualified report, Himank bhai! 💯😂

[CA Akshit Singhal @CAAkshitSinghal]

@CSKrishneGowdaC Your understanding is absolutely correct!
Post the Section 50(3) amendment, interest is only levied if the availed ITC is actually utilised. I took the conservative view for the post because the Department still routinely litigates this, but the law is definitely on your side.

[CA Akshit Singhal @CAAkshitSinghal]

@krdamodaran2 Absolutely correct! Rule 37A provides exactly this relief. As long as the proactive reversal is done by Nov 30th of the following year, the recipient is saved from the 18% interest hit. Great value-add to the thread! 🙌

[CA Akshit Singhal @CAAkshitSinghal]

@rishrox19 ICAI included 'Festival Management' in the syllabus without officially listing it! 💯😂

[CA Akshit Singhal @CAAkshitSinghal]

Work-life balance for a CA = choosing which festival to skip this year for the deadline.

[CA Akshit Singhal @CAAkshitSinghal]

@CAYashBhalgat The universal truth of our fraternity! 😂🙌

[CA Akshit Singhal @CAAkshitSinghal]

@ChiragGupta3010 The syllabus changed, but the calendar stayed exactly the same. Some traditions never die! 🥲😂

[CA Akshit Singhal @CAAkshitSinghal]

@ManikAbhisek @18 100% correct. Thanks to the retrospective amendment to Sec 50(3), interest only kicks in upon utilisation. Unfortunately, many field officers are still stuck on the pre-2022 wording of Rule 37! Thanks for pointing out this crucial nuance.