MINISTRY OF CORPORATE AFFAIRS (MCA) MCA PROBING MG MOTOR INDIA AS SCRUTINY ON CHINESE FIRMS WIDENS The Ministry of Corporate Affairs (MCA) is considering an expanded inquiry into MG Motor India’s financial records based on the Registrar of Companies’ 2022 findings. MG Motor India emphasized legal compliance, stating it provided all necessary information during the March Registrar of Companies inquiry. BID FOR TRANSPARENCY: INDIA’S CORPORATE AFFAIRS MINISTRY CALLS FOR REGULAR GENERAL MEETINGS OF COMPANIES India’s Ministry of Corporate Affairs underscores the significance of frequent general meetings in response to a rise in company formations. These meetings offer shareholders a forum to query managerial choices, playing a vital role in mitigating corporate fraud and financial vulnerabilities. UNVEILING TRANSPARENCY: LLPS TAKE CENTER STAGE WITH THE NOTIFIED LIMITED LIABILITY PARTNERSHIP (SIGNIFICANT BENEFICIAL OWNERS) RULES, 2023 The Ministry of Corporate Affairs introduces the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, effective from November 9, 2023. Applicable to all LLPs, these rules mandate proactive identification of ‘significant beneficial owners.’ RESERVE BANK OF INDIA (RBI) BANKS’ BORROWING FROM MSF HIGHEST IN NOVEMBER AS LIQUIDITY TIGHTENS Borrowings from the Reserve Bank of India’s (RBI) Marginal Standing Facility (MSF) by banks surged in November, indicating a strained liquidity environment in the banking system. MONETARY POLICY COMMITTEE POSSIBLY UNDERESTIMATES Q2 ECONOMIC GROWTH RBI Governor Shaktikanta Das’ positive outlook on second-quarter economic growth contrasts with the Monetary Policy Committee’s (MPC) projection of 6.5%. National account figures, including Gross Domestic Product (GDP), for the quarter are set to be disclosed later. RBI IMPOSES MONETARY PENALTY ON THE PATLIPUTRA CENTRAL COOPERATIVE BANK LTD, BIHAR The RBI imposes a ₹1.50 lakh penalty on The Pataliputra Central Cooperative Bank Ltd, Bihar, dated November 13, 2023, for non-compliance with RBI directives. MERGERS AND ACQUISITIONS CHEMICALS MAJOR PCBL PLANS TO ACQUIRE PUNE-BASED AQUAPHARM CHEMICALS FOR ₹3,800 CRORE PCBL Ltd plans to acquire a 100% stake in Aquapharm Chemicals Pvt Ltd (ACPL) for ₹3,800 crore, subject to agreed adjustments, through internal accruals and external fundraising. AIA ENGINEERING ACQUIRES STAKE IN VEGA INDUSTRIES PERU, SHARES RISE AIA Engineering Ltd. and subsidiary Vega Industries (Middle East) FZC subscribe to 3,65,328 shares in Vega Industries Peru Ltd, marking the acquisition of a 100% stake. MARUTI SUZUKI’S ACQUISITION OF SUZUKI MOTOR GUJARAT GETS OVERWHELMING APPROVAL FROM SHAREHOLDERS Shareholders overwhelmingly back Maruti Suzuki’s ₹12,841.1 Crore Acquisition of Suzuki Motor Gujarat’s 100% Equity Share Capital. M&A ACTIVITY DIPS AMID GEOPOLITICAL CONCERNS, ONLY 5 MEGA DEALS THIS YEAR A Boston Consulting Group report notes a downturn in M&A during Q1 2023, attributed to rising interest rates, geopolitical tensions, and recession fears. TAX EASE OF I-T REFUNDS, TAXPAYERS SAW REDUCED TIME, SIMPLIFIED PROCESS: SURVEY The survey indicates reduced time for refunds and streamlined processes, with 90% of individual taxpayers receiving automatic refunds. GST AMNESTY SCHEME PROVIDES RELIEF, APPEALS TO BE FILED BY JANUARY 31, 2024 The Finance Ministry outlines the appeal procedure for the GST amnesty scheme, aiming to assist taxpayers who missed the earlier appeal deadline. INCOME TAX DEPARTMENT INTRODUCES NEW ‘DISCARD ITR’ FACILITY FROM AY24 The income tax portal introduces a feature allowing users to “Discard ITR” for unverified original, belated, or revised Income Tax Returns (ITRs) beginning from the assessment year 2023-24. SECURITIES EXCHANGE BOARD OF INDIA (SEBI) SEBI BOARD GIVES NOD TO SMALL & MEDIUM REITS, DEFERS DECISION ON DELISTING NORMS SEBI board approves flexibility for SSEs and a framework for small and medium REITs. Decision on delisting regulations deferred due to limited data. KRONOX LAB SCIENCES INITIATES IPO JOURNEY, SUBMITS PAPERS TO SEBI Vadodara-based Kronox Lab Sciences files draft-red herring prospectus (DRHP) with SEBI for an IPO, aiming to raise Rs 150-180 crore. SEBI PROPOSES 4-MONTH COOL-OFF PERIOD FOR TRADING PLANS SEBI proposes significant revisions to trading plans, including shortening the cool-off period and reducing the minimum coverage period. ARBITRATION ARBITRATION IN INDIA PLAGUED BY RAMPANT CORRUPTION: JUSTICE SANJIB BANERJEE Former Chief Justice Sanjib Banerjee notes widespread corruption in India’s arbitration scenario, observing abuse of arbitration laws. SCRAPPING OF TATA NANO PROJECT IN SINGUR: ARBITRAL TRIBUNAL AWARDS ₹766 CRORE COMPENSATION TO TATA MOTORS The Arbitral Tribunal orders the West Bengal government to pay ₹766 crores in compensation to Tata Motors for scrapping the Tata Nano project in Singur. ARBITRAL AWARD DISPUTE: HC ASKS SPICEJET MD AJAY SINGH TO APPEAR IN JANUARY The Delhi High Court summons SpiceJet MD Ajay Singh concerning a dispute involving interest payments on an arbitral award exceeding Rs 570 crore in favor of Kalanithi Maran. DELHI HC DISMISSES AIR INDIA’S PETITIONS CHALLENGING TWO 2016 ARBITRAL AWARDS The Delhi HC dismisses Air India’s petitions challenging two 2016 arbitral awards related to service conditions and wage revisions. INFORMATION TECHNOLOGY (IT) PUNE CIVIC BODY PORTAL HACKED TO CHANGE CHILD’S NAME IN BIRTH CERTIFICATE, FIR LODGE An unidentified person allegedly breached the Pune Municipal Corporation’s birth and death registration portal, changing a child’s name on the birth certificate without parental consent. HC SEEKS GOVTS’ STAND ON TECHNOLOGY UPGRADE FOR BETTER TRAFFIC MANAGEMENT The Delhi High Court requests responses from the Central and Delhi governments regarding a petition urging technology and infrastructure enhancement for monitoring traffic violations. SUPREME COURT SIGNS MOU WITH IIT MADRAS FOR COLLABORATING ON USAGE OF ARTIFICIAL INTELLIGENCE & TECHNOLOGY The Supreme Court formalizes a collaboration with IIT Madras for leveraging Artificial Intelligence and emerging technologies for various applications. INDIA ADDRESSES DEEPFAKE THREATS: CALLS FOR LEGAL ACTION AND TECH SOLUTIONS The Indian government tackles deepfake threats by urging social media platforms to adhere to takedown regulations and emphasizing legal measures against digital impersonation. GAMING INCOME TAX PAYABLE ON WINNINGS FROM ONLINE, OFFLINE GAMES OF CHANCE E-commerce platforms’ gaming contests are considered games of chance and are subject to a flat 30% tax rate plus additional cess. ONLINE GAMBLING ACT | BAN WON’T APPLY TO POKER, RUMMY: MADRAS HIGH COURT The Madras High Court rules that the ban on online gambling won’t apply to poker and rummy, considering these games legal in physical form. MINISTERS GROUP LIKELY TO DISCUSS E-GAMING ON DECEMBER 15 The Group of Ministers

Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable period: filing of appeal by the taxpayers will be allowed against such orders up to 31st January 2024, subject to the condition of payment of an amount of pre-deposit of 12.5% of the tax under dispute, out of which at least 20% (i.e., 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger. This is a golden opportunity for those taxpayers who might have missed the appeal deadline. This will facilitate a large number of taxpayers, who could not file appeals in the past within the specified period. Rule 159 of the CGST Rules, 2017 to be amended: Automatic restoration of provisionally attached property after completion of one year. The Council has recommended an amendment in sub-rule (2) of Rule 159 of CGST Rules, 2017 and FORM GST DRC-22 to provide that the order for provisional attachment in FORM GST DRC-22 shall not be valid after the expiry of one year from the date of the said order. Clarified that no GST would apply on personal guarantee offered by directors to the bank against the credit limits/loans sanctioned to the company. Defined the taxable value for corporate guarantee provided between related persons (a holding company to its subsidiary) as 1% of the amount of such guarantee offered, or the actual consideration, whichever is higher. The GST Council on Saturday recommended keeping Extra Neutral Alcohol (ENA) used for the manufacture of alcoholic liquor for human consumption outside GST. Allowing supplies to SEZ units/developers for authorised operations for IGST refund route by amendment in Notification 01/2023-Integrated Tax dated 31.07.2023: A Special Economic Zone unit for authorised operations to make supply of goods or services (except the commodities like pan masala, tobacco, gutkha, etc. to the Special Economic Zone developer or the Special Economic Zone unit for authorised operations on payment of integrated tax and claim the refund of tax so paid. Rules defined for the Composition of GSTAT Minimum age limit is 50 years while the maximum is 70 years for the President and 67 years for members of GSTAT. Advocates with 10 years of experience can only be appointed as judicial members. Clarifications given on Key Issues The District Mineral Foundation Trust (DMFT) in mineral mining are eligible for the same GST exemptions as other government authorities. Job work services to process barley into malt attract 5% GST and not 18%, being “job work about food and food products”. 18 states have passed the amendments to charge 28% GST on gaming companies w.e.f. 01.10.2023 along with the GST Rules while 13 are yet to notify changes. Supply of all goods and services by Indian Railways shall be taxed under the Forward Charge Mechanism to enable them to avail of ITC. This will reduce the cost for Indian Railways GST Rate changes on goods GST rates on “Food preparation of millet flour in powder form, containing at least 70% millets by weight”, falling under HS 1901, with effect from the date of notification, have been prescribed as a. 0% if sold in other than pre-packaged and labelled form b. 5% if sold in pre-packaged and labelled form To clarify imitation zari thread or yarn made out of metallised polyester film /plastic film, falling under HS 5605, is covered by the entry for imitation zari thread or yarn attracting a 5% GST rate. However, no refund will be allowed on polyester film (metallised) /plastic film on account of inversion. GST Rate changes on services Whether supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemption from GST under Sr. No. 3 and 3A of Notification no 12/2017-CTR dated 28.06.2017. A conditional IGST exemption is given to a foreign flag and foreign going vessel when it converts to coastal run subject to its reconversion in six months. GST exempted on pure and composite services to Central/State/UT governments and local authorities for Panchayat/Municipality functions. All services provided by Indian Railways will be subjected to forward charge, with ITC available for discharging liabilities. Facilitation Measures in Trade: Key Updates These measures aim to simplify processes, provide relief, and bring clarity to various aspects of trade and taxation.