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Dear Reader,
Greetings for the day!!!
We are pleased to share the recent Tax notification and circulars.
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Direct Tax
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CBDT has notified “Shree Balakrishna Lalji & other deities temple (PAN:
AABTM9049C)”, u/s 80G(2)(b). Donations for renovation/repairs are eligible for
deduction, capped at ₹50 crore and valid till 31st March 2030.
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CBDT provides recognition to “Jalandhar Development Authority" (PAN:
AAALC0454G)”, for tax exemption u/s 10(46A) (b) of the Income tax Act. |
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CBDT provides recognition to “Ajmer Development Authority" (PAN: AAALS0528D”,
for tax exemption u/s 10(46A) (b) of the Income tax Act.
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CBDT provides recognition to “Tamil Nadu Pollution Control Board” (PAN:
AAALT0344G)”, for tax exemption u/s 10(46) (b) of the Income tax Act.
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CBDT has launched a NUDGE campaign against bogus deduction,
especially
deduction claimed u/s 80G, 80GGC of the Act made to Registered Unrecognised
Political Parties (RUPPs) or Charitable Institutions. SMS and email advisories
are being issued from 12th December 2025, prompting many taxpayers to revise
or update their returns and withdraw incorrect claims.
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Goods And Services Tax
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Residential Dwelling + Aggregator Model = GST Exemption Upheld by
Supreme Court
In Dy. Commissioner of Central Tax v. M/s. Taghar Vasudev Ambrish
(Civil
Appeal arising out of SLP (C) No. 14248 of 2020), the Supreme
Court upheld GST
exemption on renting of a residential dwelling. The respondent had leased a
42-room residential building in Bengaluru to an aggregator (Dtwelve
Spaces
Pvt. Ltd.), which further sub-let the premises to students
and working
professionals for long-term residential use. The Revenue argued
that exemption
under Entry 13 of Notification No. 9/2017-IT(R) required
personal residential
use by the lessee and that leasing to an aggregator made it commercial.
Rejecting this view, the Court held that the nature of the property
and its
end-use as residence are decisive, not the identity of the lessee.
It also
ruled that the 2022 amendment restricting the exemption is
prospective,
thereby confirming that GST exemption was rightly available for the
pre-18
July 2022 period.
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GST Alert: Mandatory Bank Detail Update
GSTN has mandated all registered taxpayers (except TDS/TCS and suo-moto
registrants) to furnish or update bank account details on the GST portal in
terms of Rule 10A of the CGST Rules. Bank details must be provided within 30
days of registration or before filing GSTR-1/IFF, whichever is earlier.
Non-compliance may lead to system-based suspension of GST registration once
the new controls are activated. Taxpayers can update details via Services →
Registration → Amendment (Non-Core Fields) to avoid filing restrictions and
business disruption.
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LoC Barter Trade Under GST: High Court Ends the Zero-Tax
Myth
In a landmark ruling dated 27.11.2025, the High Court of J&K & Ladakh
(Srinagar) has held that cross-LoC barter trade is neither
an export nor zero-rated under GST, but constitutes an intra-State
taxable supply. The Court
ruled that the special barter arrangement between Srinagar–Muzaffarabad and
Poonch–Rawalakote, though earlier zero-rated under the J&K VAT regime,
enjoys
no such exemption under GST post-2017.
Upholding Section 74 SCNs, the Court observed that
non-reporting of supplies
and absence of invoices amounts to suppression, justifying
extended
limitation. All 35 writ petitions were dismissed, with
directions to file
replies within 4 weeks where proceedings are pending, or appeals within 3
months where orders are already passed (WP(C) 1938/2024 & connected
matters).
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