Shriganesh Hegde & Associates

Shriganesh Hegde & Associates Chartered Accountant Firm in Hubli - Our aim is to render timely and Quality services to our Clients. To contribute to Nation Building

Practicing in Direct Tax, Indirect Tax, Auditing, Project reports and financing and various other services

🚨 Startup Reality Check: Corporate Governance is NOT optionalA founder recently approached me with a situation:👉 “We hav...
26/03/2026

🚨 Startup Reality Check:
Corporate Governance is NOT optional

A founder recently approached me with a situation:
👉 “We have raised seed funding, but honestly… we’ve never conducted a proper Board Meeting.”
- No agenda.
- No minutes.
- No documented decisions.

Everything was happening over WhatsApp and informal calls. Sounds familiar?

📌 Let’s understand the risk:
When you skip structured Board Meetings:
• Investor confidence reduces
• Key decisions lack legal backing
• Future due diligence becomes a nightmare
• You risk non-compliance under Companies Act, 2013

đź“Š What should a startup ideally do?
Even at an early stage, governance must be simple but structured:
✔️ Send a proper Notice of Board Meeting
✔️ Prepare a clear Agenda (fund utilization, hiring, compliance, etc.)
✔️ Conduct the meeting formally (even via VC)
✔️ Record Minutes within prescribed timelines
✔️ Maintain statutory registers and documentation

đź’ˇ Real Scenario Insight:
In one case, during a funding round, investors asked:

“Can you show us Board approvals for past financial decisions?” The startup had none documented. Result?
❌ Funding delayed
❌ Valuation renegotiated
❌ Trust deficit created

🎯 Key Takeaway:
Corporate Governance is not about size.
It’s about discipline. Start early. Stay compliant. Build credibility.

If you’re a startup founder, ask yourself:
👉 “If an investor asks for my Board records today, am I ready?”

06/01/2026

Some Precious Peice of Advice to all the Founders and the team! A startup is not built on 9-5 Mindset. You may choose 9-5 clock but not 9-5 Mindset! May not be present always in office but your vision, thoughts and mind should reflect the growth.

🚨 Landmark GST Ruling: Relief for Genuine Buyers! | Allahabad High Court on ITC Denial 🚨In a recent landmark judgment (W...
20/06/2025

🚨 Landmark GST Ruling: Relief for Genuine Buyers! | Allahabad High Court on ITC Denial 🚨

In a recent landmark judgment (Writ Tax No. 1330 of 2022) dated 30.05.2025, the Allahabad High Court has ruled that Input Tax Credit (ITC) cannot be denied merely due to GSTR-2A mismatch or non-payment of GST by the supplier, if the purchaser has acted diligently.

🔍 Case Overview
Petitioner: M/s R.T. Infotech
Issue: â‚ą28.52 lakh ITC denied despite valid invoices & payment via RTGS.
Grounds of Denial: Non-reflection in GSTR-2A & supplier’s failure to deposit GST.

âś… Key Highlights of the Judgment:

Purchaser fulfilled all duties: Possessed genuine tax invoices, received goods, and paid the supplier via banking channels.

Section 16(2)(c) can't be used to penalize bona fide purchasers for defaults committed by suppliers.

Tax authorities must pursue the supplier under Sections 73, 74, and 79 of the CGST Act.

Relied on key precedents: Suncraft Energy Pvt Ltd v. ACST & D.Y. Beathel Enterprises v. STO.

⚖️ Verdict:
The Court quashed the ITC denial order and remanded the matter, observing that buyers cannot be held hostage to supplier compliance failures.

đź“Ś Takeaway:
This ruling reinforces the principle of fairness in GST compliance — protecting honest taxpayers from being penalized for issues outside their control.

093809 59304

🚚 The e‑Way Bill under GST: Compliance, Challenges & Chequered Judgments1. 📜 Statutory FrameworkSection 68 of CGST Act, ...
19/06/2025

🚚 The e‑Way Bill under GST: Compliance, Challenges & Chequered Judgments

1. đź“ś Statutory Framework
Section 68 of CGST Act, 2017, and Rule 138 of CGST Rules, 2017 mandate electronic documentation when goods of value over ₹50,000 are transported—covering both inter- and intra‑state movements, branch transfers, job work, and even personal use .

Key features:
Pre‑dispatch generation of Part A form.

Validity: 1 day per 200 km (with special rules for oversized cargo).

Part B updates required when vehicles change mid-journey.

Limited amendment window—Part A can be cancelled within 24 hours; otherwise, edits are disallowed

2. 🎯 Exemptions & Required Documents
Exemptions include non‑motorised transport, movement within 10 km, tax‑exempt goods, and transport linked to ports/airports or empty containers .

Essential documents to carry include:
Invoice/Bill of Supply/D.C.,
e‑Way Bill (physical or e-copy),
Transport details (Part B).

3. ⚖️ Penalties & Enforcement
Under Section 129, transporting without an e‑Way Bill invites steep penalties:

For taxable goods: tax + 200% penalty or tax + 50% (if owner fails to present goods) .

Section 130 allows for confiscation and heavy fines, although replacements via payment options are available .

4. 🏛️ Judicial Balance
Various High Courts have ruled in favour of fairness, often protecting businesses from harsh levies for technical missteps:

Tripura HC: Vehicles shouldn’t be stopped on expiry if the transaction is bona fide—an undertaking suffices .

Kerala HC: Lack of tax details on the e‑Way Bill isn’t grounds for detention if invoice and bill are valid .

Madhya Pradesh & Karnataka HCs: Human mistakes and portal glitches do not justify detention or penalties under Section 129 .

Allahabad HC: Goods with an already-generated e‑Way Bill before detention shouldn’t be confiscated .

Typographical errors and minor inaccuracies (e.g., PIN code typos, vehicle number transpositions) have been deemed insufficient for penalties in recent rulings

5. 🧭 Challenges & Recommendations
Common pain‑points: system glitches, documentation mismatches, evolving interpretations.
Recommendations:
- Strengthen internal compliance workflows.
- Keep abreast of judicial pronouncements—policy is moving towards fairness and proportionate enforcement.
- Train teams on accurate dispatch protocols and timely validations through the portal.

âś… Final Thought
India’s e‑Way Bill system has shown progress in combatting tax evasion and enhancing transparency. However, it equally demands precision in ex*****on. The judiciary’s stance reinforces that intent matters: genuine mistakes shouldn’t attract draconian penalties. For businesses, this is a compelling reminder to adopt both robust compliance systems and a nuanced understanding of law in practice.

📌 Claiming Relief on Salary Arrears? File Form 10E First!If you’ve received salary in arrears or advance, you may be eli...
19/06/2025

đź“Ś Claiming Relief on Salary Arrears? File Form 10E First!

If you’ve received salary in arrears or advance, you may be eligible for tax relief under Section 89(1) of the Income Tax Act. But remember, to claim this relief, it is mandatory to file Form 10E before filing your Income Tax Return (ITR)!

🔍 Why File Form 10E?
Form 10E informs the Income Tax Department about the arrears/advance salary and calculates the relief accordingly, reducing your tax liability for the year.

đź’» Where to File?
Log in to the Income Tax e-Filing Portal → Go to e-File → Income Tax Forms → Select Form 10E → Fill and Submit.

âś… Applicable for:
- Salary arrears
- Advance salary
- Gratuity
- Commuted pension
- Arrears of family pension

Pro Tip:
Don't skip filing Form 10E, or your claim for tax relief might get disallowed by the IT Department.

đź“ž Need help? Reach out to us for smooth filing and maximum benefits. 093809 59304

🚨 Important GST Update: File Pending Returns Before 3-Year Deadline!As per the Finance Act, 2023, effective from 1st Oct...
18/06/2025

🚨 Important GST Update: File Pending Returns Before 3-Year Deadline!

As per the Finance Act, 2023, effective from 1st October 2023, GST returns cannot be filed after 3 years from their due date. This restriction will be enforced on the GST portal from 1st August 2025.

đź“Ś Key Impact: Returns due before July 2022 will be barred from filing. For example:

GSTR-1/IFF: June 2022

GSTR-3B/Q: April–June 2022

GSTR-9/9C: FY 2020-21
…and more.

âś… Action Point: Taxpayers are advised to reconcile records and file all pending GST returns immediately, especially those nearing the 3-year deadline.

Stay compliant. Avoid penalties.

GSTR-3B Reminder!
16/06/2025

GSTR-3B Reminder!









🚀 Thinking of Registering Your Startup?Getting DPIIT Recognition can be your game-changer! Here’s why ⬇️✅ Income Tax Exe...
16/06/2025

🚀 Thinking of Registering Your Startup?
Getting DPIIT Recognition can be your game-changer! Here’s why ⬇️

âś… Income Tax Exemption for 3 Years
âś… Self-Certification under Labour & Environmental Laws
âś… Fast-track Patent & IPR Filing at Reduced Cost
âś… Easy Access to Government Tenders
âś… Easier Exit through Fast Track Exit Mode
âś… Eligibility for â‚ą10,000 Cr Fund of Funds Scheme
âś… Networking & Branding Benefits via Startup India Platform

🎯 Empower your Startup with Credibility, Funding, and Growth!

Address

2nd Floor, Shri Veerabhadra Nilaya, Kallur Layout, Near New Court Complex, Gokul Road
Hubli
580021

Telephone

+919449203522

Website

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