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Notification No. 22/2024 – Central Tax dated 08.10.2024 Issued By: Ministry of Finance (Central Board of Indirect Taxes and Customs) Subject: Special procedure for rectification of orders under Section 148 of the Central GST Act, 2017. Key Details: This notification outlines a procedure for rectification of orders related to the wrong availment of input tax credit (ITC) due to a violation of sub-section (4) of Section 16. Taxpayers must apply for rectification electronically within six months from the issuance date of this notification if the ITC is now eligible under sub-sections (5) or (6) of Section 16. Along with application also need to upload Annexure A. The concerned officer will review the application and, if necessary, issue a rectified order within three months (as far as possible). Rectified order will…

Notification No. 21/2024 – Central Tax dated 08.10.2024 Issued By: Ministry of Finance (Central Board of Indirect Taxes and Customs) Subject: Procedure under Section 128A of the Central GST Act, 2017. Key Details: The Central Government, upon the Council’s recommendations, has notified a specific date by which registered taxpayers can pay the due taxes as per the notices or orders issued under Section 128A. The notification specifies that taxpayers who have received such notice or statement or order under section 73, can make payments of tax until March 31, 2025, for waiver of interest and penalty. For cases where notice has been issued under section 74(1) and an order is passed or is required to be passed by the proper officer in pursuance of the direction of the Appellate Authority…

Suresh Chand Meena v. Anti Corruption Bureau Faridabad - [2024] 167 taxmann.com 96 (Punjab & Haryana) The petitioner was a GST Inspector and a complaint was filed against the petitioner for demanding bribe. It was alleged that he had demanded Rs.10,000 from complainant for approving his GST registration. The complainant recorded the conversation and filed complaint with Anti-Corruption Bureau. The petitioner filed application for anticipatory bail before the High Court. The department opposed the bail and submitted that there was evidence of petitioner taking bribe money and then he slipped away by taking advantage of secret passage in premises and absence of proper lighting in said secret passage. The Honorable High Court noted that the complainant had made a complaint about demand of bribe by petitioner and he explicitly referred…

The judgment from the Supreme Court of India in the case of Union of India & Ors. vs. Rajeev Bansal and related appeals primarily deals with the reassessment procedure under the Income Tax Act and the interplay between three significant statutes: the Income Tax Act, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act (TOLA), and the Finance Act of 2021. Key Issues Addressed in the Judgment:   1.  Background of Reassessment Procedures:   •  The Income Tax Act provides for reassessment of income that has escaped assessment. Sections 147 to 151 of the Act, before their amendment in 2021, governed this process.   •  With the onset of COVID-19, TOLA was enacted to provide relaxation in timelines for various statutory compliances, including reassessment actions under the Income Tax Act.   2.  Impact of TOLA…

This case, M/s. Shriram Investments v. The Commissioner of Income Tax III, Chennai (2024 INSC 760), involves a tax dispute that reached the Supreme Court of India. The primary issue revolves around the appellant, Shriram Investments, and their filing of revised income tax returns, which were submitted after the deadline prescribed by the Income Tax Act, 1961. Key Events:   1.  Initial Returns: Shriram Investments filed its initial return for the assessment year 1989-90 on November 19, 1989. It later submitted a revised return on October 31, 1990.   2.  Subsequent Revised Returns: Another revised return was filed by the appellant on October 29, 1991. However, the assessing officer did not take this into account, prompting the appellant to appeal to the Commissioner of Income Tax (CIT), Appeals.   3.  Appeal Dismissed: The CIT (Appeals) dismissed…

GSTN noting feedback from the trade, restores GST returns for July 2017 and August 2017 despite archival of data a few days back; Informs that according to the new data archival policy announced through an Advisory dated September 24, 2024, the return data is archived after seven years every month, and pursuant to this, the return data of July and August 2017 was archived; However, considering difficulties faced by taxpayers, the data is temporarily restored; GSTN recommends taxpayers to download and save the data, as it will be archived again after prior notice

Amendments effective w.e.f. 27.09.2024 Amendment in section 31(3)(f) – Pertaining to generation of self-invoice in the case of RCM Insertion of new section 128A – Waiver of interest and penalty if notice is issued under section 73 and tax is paid (FY’s from 2017-18 to 2019-20). Insertion of new section 6A (IGST Act) - Power not to recover Goods and Services tax not levied or short-levied as a result of general practice. Amendment in section 20 (IGST Act) – Reduction in the appeal fees for Appellate Tribunal All other amendments effective w.e.f. 01.11.2024 mainly being: Section 16(5) – Availability of input tax credit if availed in the GSTR 3B returns for the financial years 2017-18 to 2020-21 before 30.11.2021 Section 16(6) – Availability to claim input tax credit in the…

Advisory on issuance of Notices/Orders without digital signatures of the issuing authorites. September 25th, 2024 Doubts have been created regarding the validity of documents issued by the tax officers on thecommon portal viz. Show cause Notices, Order of Assessment, Refund Orders etc. which are notcontaining the Digital signatures on the pdf. document downloaded from the common portal. In thiscontext, it is to be mentioned that such documents (i.e. SCN/Orders) are generated on the commonportal from the login of the officer, who logs in through Digital Signatures. Further, these documentsbeing computer generated on the command of the officer, may not require physical signatures of theofficer as these documents can be issued by the officer only after logging into the common portal usingDigital Signature. Thus, all these documents in JSON format containing…

Veremax Technologie Services Limited Vs The Assistant Commissioner Of Central Tax Karnataka HC quashes common show cause notice (SCN) which groups multiple AYs from 2017-18 to 2020-21, holds same as "fundamentally flawed"; Finds that, practice of issuing a single, consolidated SCN for multiple AYs " contravenes the provisions of the CGST Act and established legal precedents".

1. Key Provisions:  - Section 39 (11) of the CGST Act, 2017, restricts taxpayers from filing GST returns after three years from the due date.  - GST data on the portal will be available for a limited time—only up to seven years for taxpayer viewing.2. Data Archival:  - Archival of GST return data began on August 1, 2024, starting with returns filed for July 2017.  - The archival process will continue monthly, with each subsequent month's returns being archived. For instance, September 2017 data will be archived by October 1, 2024.3. Action for Taxpayers:  - Taxpayers are advised to download any required return data for future reference before the seven-year availability period expires.Issued by: GSTN Team on September 24, 2024.

Judicial Scrutiny on Notification Extensions under GST: M/S Barkataki Print and Media Services v. Union of India & Ors. Introduction: This case revolves around the legal challenges posed by M/S Barkataki Print and Media Services regarding the validity of two central government notifications, namely, Notification No. 9/2023-CT dated 31.03.2023 and Notification No. 56/2023-CT dated 28.12.2023, which extended the deadline for issuing orders under Section 73(10) of the Central Goods and Services Tax (CGST) Act, 2017. The petitioners argued that these notifications were ultra vires, i.e., beyond the powers conferred by the CGST Act and Assam Goods and Services Tax (SGST) Act. Core Legal Issues: Extension of Deadlines under Section 168A of CGST Act: The notifications challenged were issued under Section 168A, which allows the government to extend deadlines due to…

Sr No.QuestionReply1What is Invoice Management System (IMS)?Invoice Management System (IMS) is a facility in GST system, where the invoices/records saved/filed by the supplier in GSTR-1/1A/IFF, can be accepted, rejected or kept pending by recipients in order to correctly avail ITC.2How can I access IMS?IMS can be accessed using below path on GST Portal : Dashboard > Services > Returns > Invoice Management System (IMS) Dashboard.3When will IMS be made available to taxpayers?IMS will be launched on the GST Portal from 1st October 2024 and shall be available to the taxpayers for taking actions on the received invoices/records from 14th October 2024 onwards.4What all records will be available in IMS for taking an action?All the saved or filed original invoices/records and their amendments by suppliers through GSTR-1/1A/IFF will be available to…

Gauhati HC allows a batch of writ petitions challenging Notification No. 56/2023 extending time period for issuing demand orders for FY 2018-19 and FY 2019-20, holds the same as ultra vires Section 168A on the ground that the notification was issued without the recommendation of the Council as mandated by the Section; In open Court order, HC observes that, while the notification had false statement claiming that a recommendation was made and the recommendation served as its basis, the Circular issued on May 20, 2024, along with the stand taken in the affidavit, clearly indicates that no such recommendation existed prior to issuance of said Notification; Further, Court states that, notification was merely cleared by the implementation committee, which holds no relevance and that no recommendation was sought during the…

Notification No. 14/2022 – Central Tax: Issued on July 5, 2022, this notification introduced changes in Table 4 of Form GSTR-3B. These changes pertain to the availment and reversal of ITC, as well as the reporting of reclaimed and ineligible ITC. Reclaimable ITC that was earlier reversed in Table 4(B)2 can now be claimed in Table 4(A)5 upon fulfilling necessary conditions and must also be reported in Table 4D(1) 1. Electronic Credit Reversal and Re-claimed Statement: To aid taxpayers in accurate ITC reporting and to minimize clerical errors, a new ledger called the Electronic Credit Reversal and Re-claimed Statement was introduced on the GST portal. This ledger has been available since August 2023 for monthly taxpayers and from the July-September 2023 quarter for quarterly taxpayers. Taxpayers were given the opportunity…

In pursuance of the advisory w.r.t. launch of the new feature of Invoice Management System (IMS), GSTN has issued Draft Manual on IMS; GSTN shares a detailed step wise procedure with screenshots from the GST common portal to guide the taxpayers for using the facility; The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct ITC; Also issues Advisory in respect of facility provided to Taxpayers to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for “Electronic Credit Reversal and Re-claimed Statement”: GSTN draft_manual_ims.pdf (gst.gov.in)

The circular provides clarifications regarding the availability of input tax credit (ITC) for demo vehicles used by authorized motor vehicle dealers. These vehicles are used for trial runs and demonstrating features to potential buyers. Key Issues Addressed Availability of ITC on Demo Vehicles for Passenger Transportation Question: Whether ITC is available for demo vehicles used for transporting passengers with a seating capacity of not more than 13 persons, as per Section 17(5)(a) of the CGST Act. Clarification: ITC is not blocked for demo vehicles as they are used for further supply of such motor vehicles. Demo vehicles promote the sale of similar vehicles, thus qualifying for ITC under Section 17(5)(a)(A). Usage of Demo Vehicles for Other Purposes Clarification: If demo vehicles are used for purposes other than further supply (e.g.,…

The circular provides clarifications regarding the regularization of refunds of Integrated Goods and Services Tax (IGST) availed in contravention of rule 96(10) of the CGST Rules, 2017. This specifically addresses cases where exporters had imported certain inputs without payment of integrated taxes and compensation cess. Key Issues Addressed Background on Rule 96(10) of CGST Rules Rule 96(10) bars the availment of refunds of IGST paid on the export of goods or services if certain concessional/exemption notifications have been availed on inputs/raw materials imported or procured domestically. Clarification on Regularization of Refunds Issue: Whether refunds of IGST paid on exports can be regularized if the registered person initially imported inputs without payment of IGST and compensation cess but later paid these taxes along with interest. Clarification: An explanation inserted in sub-rule…

The circular provides clarifications regarding the place of supply for data hosting services provided by service providers located in India to cloud computing service providers located outside India. This is to address issues where some field formations were considering the place of supply as within India, thereby denying export benefits to these services. Key Issues Addressed Intermediary Status of Data Hosting Service Providers Question: Whether data hosting service providers qualify as intermediaries between cloud computing service providers and their end customers as per Section 2(13) of the IGST Act. Clarification: Data hosting service providers are not intermediaries as they provide services on a principal-to-principal basis to cloud computing service providers. They do not facilitate the supply of services between cloud computing providers and their end users. Relation to Goods “Made…

The circular provides clarifications regarding the place of supply for advertising services provided by Indian advertising companies/agencies to foreign clients. This is to address issues where some field formations were considering the place of supply as within India, thereby denying export benefits to these companies. Key Issues Addressed Intermediary Status of Advertising Companies Question: Whether Indian advertising companies can be considered as intermediaries between foreign clients and media owners under Section 2(13) of the IGST Act. Clarification: Advertising companies are not intermediaries as they provide comprehensive services on a principal-to-principal basis to foreign clients. They are involved in the main supply of advertising services, including the resale of media space, and thus, the place of supply cannot be linked to the location of the supplier. Recipient of Services Question: Whether…

The Tamil Nadu GST Department vide Circular No. 08/2024 dated August 29, 2024 issued a very important guidelines on Adjudication proceedings under GST.A well-drafted GST order, issued by a proper officer, is an important component of fair and efficient Goods and Services Tax (GST) administration. Effective orders must demonstrate qualities such as clarity, transparency and adherence to the provisions of the GST Acts and Rules, 2017. The adjudication process is a holistic exercise of the application of laws and reflecting it properly in the notices and orders. Many times, because of hurried and poor drafting of notices and orders, various appellate forums and Hon'ble High Court set aside such notices / orders, resulting in a loss of efforts and time of Proper Officers and revenue to the Department. Hence, the…

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The Invoice Management System (IMS) is a new functionality developed by GSTN, launching on October 1, 2024, to improve how taxpayers handle invoice corrections and amendments through the GST portal. It allows recipient taxpayers to either accept, reject, or keep invoices pending forfuture actions. This process helps with the matching of invoices for availing the correct Input Tax Credit (ITC). Key Features: Invoice Review: Invoices submitted by suppliers will reflect on the recipient's IMS dashboard, where the recipient can take actions such asaccept, reject, or mark as pending. Integration with GSTR-2B: Only accepted invoices will be considered forGSTR-2B as eligible ITC, and will populate GSTR-3B automatically. Amendments Handling: If suppliers amend invoices before filing GSTR-1,those amendments will update the recipient's IMS dashboard, resetting prior actions on the original invoice. Deemed…

Notification No. 38/2023 - Central Tax Date: August 4, 2023 Key Points: Requirement Under Rule 10A: Taxpayers must provide valid bank account details within 30 days of registration or before filing GSTR-1/IFF, whichever is earlier. This requirement was initially notified via Notification No. 31/2019 dated June 28, 2019. Enforcement Date: Starting from September 1, 2024, taxpayers will be unable to file GSTR-1/IFF for the tax period of August 2024 onwards without furnishing valid bank account details. Action Required: Taxpayers who have not yet provided their bank account details must update their registration details on the GST Portal. This can be done by navigating to Services > Registration > Amendment of Registration Non-Core Fields. Consequences of Non-Compliance: Failure to provide valid bank account details will result in the inability to file…

Date: August 23rd, 2024 To assist taxpayers in accurately reporting Reverse Charge Mechanism (RCM) transactions, a new statement called the “RCM Liability/ITC Statement” has been introduced on the GST Portal. This statement aims to enhance accuracy and transparency by capturing the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding Input Tax Credit (ITC) claimed in Table 4A(2) and 4A(3) of GSTR-3B for a return period. Applicability: Monthly filers: From the tax period August 2024 onwards. Quarterly filers: From the quarter July-September 2024. Accessing the Statement: Navigate to: Services >> Ledger >> RCM Liability/ITC Statement. Reporting Opening Balance in RCM ITC Statement: Navigation: Login >> Report RCM ITC Opening Balance or Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance. Excess RCM liabilities paid:…

Introduction:The document titled 'Instruction No. 02/2024-GST,' issued by the Ministry of Finance, Central Board of Indirect Taxes & Customs (CBIC), GST Policy Wing on August 12, 2024, outlines a strategic initiative for a second special All-India drive against fraudulent GST registrations. This initiative is a continuation and expansion of a previous drive conducted in 2023 and is aimed at identifying and eliminating suspicious or fake GST Identification Numbers (GSTINs) to safeguard government revenue.Context and Background: The document references the success of a similar drive in 2023, which was found to be effective in identifying and removing fake registrations. Given the ongoing threat posed by fraudulent registrations and the issuance of bogus invoices, the National Coordination Committee recommended a second, more focused drive. This decision underscores the persistent challenges faced by…

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What is Form GSTR-1A? Who is required to file Form GSTR-1A?Form GSTR-1A is an optional facility for taxpayers who need to amend or add any supply records furnished in GSTR-1 for the same tax period. This can be done after filing GSTR-1 and before filing GSTR-3B. For example, if a taxpayer files GSTR-1 for August 2024 on September 10th, but realizes there is an error in two records and one record is missing, they can use GSTR-1A from September 10th or the due date of GSTR-1 (whichever is later) to make these amendments. The corrected values will be auto-populated in GSTR-3B.When is GSTR-1A available for filing?GSTR-1A is available for monthly filers from the later of the following two dates until the actual filing of GSTR-3B for the same tax period:1.…

FORM GSTR-1A The Government vide notification No. 12/2024 - Central Tax dated 10.07.2024, has introduced FORM GSTR-1A which is an optional Form/ facility. This has been provided to the taxpayers to add or amend particulars of a supply of the current tax period, which was missed out or was wrongly reported in FORM GSTR-1 of the said tax period, before filing of the GSTR-3B return of the said tax period. FORM GSTR-1A would be available to all the taxpayer from August 2024, through which details furnished in FORM GSTR-01 for the month of July 24 can be amended. The salient features of FORM GSTR-1A are - FORM GSTR-1A is an optional facility. This can be filed only once for a particular tax period. The corresponding effect of the changes made…

Sl NoChanges proposedImpact1In section 9 after the words “alcoholic liquor for human consumption”, the following words are inserted “and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption”No GST levy on Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption2Insertion of new section 11A: If the Government is satisfied that- A practice was, or is generally prevalent regarding levy of tax (including a non-levy) on any supply of goods or services or both and such cases are liable to:Tax if no tax is being levied orA higher amount of GST is liable to be levied   Then the Government may on the recommendation of the Council, by notification will not collect such tax in excess of that payable on…

As per Circular no.224/18/2024 – GST dated 11th July 2024, CBIC has clarified that though Appellate tribunal is not functional, where the first appellate authority has confirmed the demand either fully or partially, the taxpayers willing to approach the appellate tribunal under section 112 of the CGST Act, should pay the pre-deposit as mentioned in sub section (8) of section 112 to bring a stay against the recovery proceedings under section 78 of the CGST Act. The payment of pre-deposit to be made by navigating from GST dashboard to: Services  >> Ledgers  >> Payment towards demandThe taxpayer would be navigated to Electronic Liability Register (ELL) Part-II in which he can select the order, out of the outstanding demand orders, against which payment is intended to be made. The amount so…

GSTN issues advisory for claiming refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports, till the time such separate category is developed on the common portal; Explains that, exporter may claim refund of the additional IGST by filing an application of refund in FORM GST RFD-01 under the category “Any other” with suitable remark and upload Statement 9A & 9B along with the relevant documents as specified in the Circular 226/20/2024-GST which shall be processed by the officer based on the documentary proof submitted by the applicant; Apprises that, GSTN is in the process of development of a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports.

Sr. NoNotification No. & DateSubject1Notification No. 02/2024-Central Tax (Rate)Notifies uniform GST rate of 12% on Cartons, boxes, and cases of both corrugated and non-corrugated paper or paperboard, milk cans (of steel, iron, and aluminium) irrespective of their use, solar cookers, w.e.f July 15, 2024.2Notification No. 03/2024-Central Tax (Rate)Notifies that supply of agricultural farm produce in package(s) of commodities containing a quantity of more than 25 kg or 25 ltr shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’ from July 15, 2024.3Notification No. 04/2024-Central Tax (Rate)Notifies exemption, w.e.f July 15, 2024, on certain services provided by India Railways to individuals by sale of platform tickets, facility of retiring/waiting rooms, cloak room services, battery operated car services; Also exempts Services provided by Special Purpose…

The Ministry of Finance's GST Policy Wing issued Circular No. 226/20/2024-GST on July 11, 2024, detailing the procedure for claiming refunds of additional Integrated Tax (IGST) paid due to upward price revisions of goods after export.Key Points:1. Issue and Context:   * Exporters have faced difficulties claiming refunds for additional IGST paid due to post-export price increases, often linked to international indices or contractual terms.2. New Procedure:   * Exporters must file for refunds electronically using FORM GST RFD-01 on the common portal.   * Until a specific category is developed, these claims should be filed under “Any other” with relevant remarks and documents.   * The jurisdictional GST officer will process these applications based on the provided documents and details from the GST Network (GSTN).3. Documentation Required:   * Copies of shipping bills, original…

S. No.IssueClarification1Whether sub-rule (2) of rule 28 of CGST Rules will apply to the corporate guarantees issued prior to insertion of the said sub-rule on 26th October 2023? Also, where intra-group corporate guarantees have been issued before 26th October 2023, which are still in force today, would they be liable to pay GST on “1% of the amount of such guarantee offered” on such guarantees?The supply of service of providing corporate guarantee to any banking company or financial institution by a supplier to a related recipient was taxable even before the insertion of sub-rule (2) in rule 28 of CGST Rules with effect from 26th October 2023. Rule 28(2) of CGST Rules is only for determination of the value of the taxable supply of providing corporate guarantee and not regarding…

Subject: Guidelines for Recovery of Outstanding Dues 1. Background and Context Issues have arisen regarding the recovery of outstanding dues where the first appellate authority has confirmed demands by the adjudicating authority.Appeals against such orders cannot currently be filed with the GST Appellate Tribunal as it is not operational.2. Clarifications and Guidelines:Taxpayers are unable to file appeals due to the non-operation of the Appellate Tribunal. As per Section 112 of the CGST Act, an appeal should stay recovery proceedings once the prescribed pre-deposit is made. Tax officers have initiated recovery proceedings due to the inability of taxpayers to file appeals.3. Payment of Pre-DepositTaxpayers intending to file an appeal can pay the pre-deposit amount via their Electronic Liability Register (ELL) on the GST portal.Upon payment and providing an undertaking to file…

Notification No. 52/2018 CT dated 20.09.2018 is amended by Notification No. 15/2024 CT dated 10.07.2024 reducing the tax collected at source rate from 1% (CGST 0.5% + SGST 0.5%) to 0.5% (CGST 0.25% + SGST 0.25%) for the electronic commerce operator, not being an agent, of the net value of intra-State taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the said operator.

RuleOriginal ProvisionAmendedProvisionImpact/NotesRule 8Application processunder rule 8including Aadhaarauthentication.Insertion ofadditional provisofor applicationprocess whereapplicant has notopted for anAadhaarauthentication, toundergo photographand documentverification atfacilitation centers.Ensures properverification ofapplications withadditionaldocumentation andphotographrequirements.Rule 21Conditions forcancellation ofregistration underrule 21.Insertion of clausesfor amendments tobring in the effect ofnewly introducedform GSTR-1A.Further givingpowers to cancel theregistration if theregistered persondoes not file hisreturns within thespecified time fromthe date ofcancellation to thedate of revocation.Rule 21AProvisions forsuspension ofregistration underrule 21A.Insertion of clausesfor amendments tobring in the effect ofnewly introducedform GSTR-1A.Rule 28Valuation of supplybetween relatedpersons under rule28.Amendment madeto includeguarantees givenonly to recipientslocated in India. The value is deemed toone percent of theamount of suchguarantee offered“per annum”Further it clarifieswith an insertion ofa proviso in sub rule(2), which says if therecipient is eligiblefor a full input taxcredit, then thevalue declared inthe invoice shall bedeemed to be thevalue of the…

Circular No.: 217/11/2024-GSTDate: 26th June, 2024Subject: Entitlement of ITC by the insurance companies on the expenses incurred for repair of motor vehicles in case of reimbursement mode of insurance claim settlement Key Points and Clarifications: Background: This circular addresses the eligibility of insurance companies to claim input tax credit (ITC) on the expenses incurred for the repair of motor vehicles when the insurance claims are settled through the reimbursement mode. This clarification is important for ensuring uniformity and understanding of the provisions related to ITC in the context of insurance claim settlements. Key Provisions Involved: Section 16 of the CGST Act, 2017: Pertains to eligibility and conditions for taking input tax credit. Section 17(5) of the CGST Act, 2017: Lists the blocked credits where ITC is not allowed. Section 168(1)…

Circular No.: 216/10/2024-GSTDate: 26th June, 2024Subject: Clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty Key Points and Clarifications: Background: This circular addresses the GST liability and the availability of input tax credit (ITC) in scenarios involving the provision of warranty and extended warranty services. It aims to provide clarity on how GST applies to these services and the implications for ITC, ensuring uniformity in the implementation of these provisions across all field formations. Key Provisions Involved: Section 2(102) of the CGST Act, 2017: Defines "services". Section 2(30) of the CGST Act, 2017: Defines "composite supply". Section 15 of the CGST Act, 2017: Determines the value of supply. Section 16 of the CGST Act, 2017: Pertains to eligibility and conditions for…

Circular No.: 215/9/2024-GSTDate: 26th June, 2024Subject: Clarification on taxability of salvage/ wreck value earmarked in the claim assessment of the damage caused to the motor vehicle Key Points and Clarifications: Background: This circular addresses the issue of whether the salvage or wreck value earmarked in the claim assessment for damage caused to a motor vehicle is subject to Goods and Services Tax (GST). Insurance companies, which provide general insurance services for motor vehicles, need clarity on the tax implications when they account for the salvage value during claim settlements. Key Provisions Involved: Section 7 of the CGST Act, 2017: Defines "supply" for the purposes of GST. Section 168(1) of the CGST Act, 2017: Empowers the Board to issue instructions and directions to GST officers to ensure uniformity in the implementation…

Circular No.: 213/07/2024-GSTDate: 26th June, 2024Subject: Clarification on the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company Key Points and Clarifications: Background: This circular addresses the taxability of Employee Stock Option Plans (ESOPs), Employee Stock Purchase Plans (ESPPs), and Restricted Stock Units (RSUs) provided by an Indian company to its employees through its overseas holding company. It aims to provide clarity on whether such transactions are liable to GST and under what conditions. Key Provisions Involved: Section 2(52) of the CGST Act, 2017: Defines "goods". Section 2(102) of the CGST Act, 2017: Defines "services". Schedule III of the CGST Act, 2017: Specifies activities or transactions which shall be treated neither as a supply of goods nor a supply of services. Section 168(1) of…

Circular No.: 212/6/2024-GSTDate: 26th June, 2024Subject: Mechanism for providing evidence of compliance with conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers Key Points and Clarifications: Background: This circular addresses the mechanism for verifying the compliance with the conditions specified in Section 15(3)(b)(ii) of the Central Goods and Services Tax (CGST) Act, 2017, regarding the reversal of input tax credit (ITC) by recipients when suppliers offer post-supply discounts through tax credit notes. The aim is to ensure uniformity and clarity in the implementation of these provisions across all field formations. Key Provisions Involved: Section 15(3)(b)(ii) of the CGST Act, 2017: Specifies that the value of supply shall not include any discount given after the supply has been effected if the recipient reverses the ITC attributable to the…

Circular No.: 211/5/2024-GSTDate: 26th June, 2024Subject: Clarification on time limit under Section 16(4) of CGST Act, 2017 in respect of RCM supplies received from unregistered persons Key Points and Clarifications: Background: This circular addresses the applicability of the time limit specified under Section 16(4) of the Central Goods & Services Tax (CGST) Act, 2017 for the availment of input tax credit (ITC) by recipients on tax paid under the reverse charge mechanism (RCM) for supplies received from unregistered persons. It aims to ensure uniformity in the implementation of these provisions across all field formations. Key Provisions Involved: Section 16(4) of the CGST Act, 2017: Specifies the time limit for availing ITC. Section 31(3)(f) of the CGST Act, 2017: Requires registered persons to issue an invoice in respect of supplies received…

Circular No.: 210/4/2024-GSTDate: 26th June, 2024Subject: Clarification on valuation of supply of import of services by a related person where recipient is eligible to full input tax credit Key Points and Clarifications: Background: This circular addresses issues related to the valuation of imported services provided by a related person to a domestic entity, particularly when the domestic recipient is eligible for full input tax credit (ITC). It aims to ensure uniformity in implementing the provisions of the Central Goods and Services Tax (CGST) Act, 2017. Key Provisions and Rules Involved: Section 25(4) and (5) of the CGST Act, 2017: Defines distinct persons and related persons. Rule 28 of the CGST Rules, 2017: Specifies the value of supply of goods or services between distinct or related persons. Section 168(1) of the…

Circular No.: 209/3/2024-GSTDate: 26th June, 2024Subject: Clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 relating to place of supply of goods to unregistered persons Key Points and Clarifications: Background: The Circular No. 209/3/2024-GST was issued to clarify the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Services Tax Act, 2017 (IGST Act), which came into effect from 1st October 2023. This clause deals with determining the place of supply of goods when supplied to unregistered persons. Clause (ca) Details: Clause (ca) was inserted in Section 10(1) of the IGST Act, providing that: When goods are supplied to an unregistered person, the place of supply is the location as per the address recorded in the invoice…

CategoryRecommendationImpactInterest and Penalties WaiverWaiver of interest and penalties for demand notices under Section 73 for FY 2017-18, 2018-19, and 2019-20, if paid by 31.03.2025.This move aims to ease the financial burden on taxpayers who faced challenges during the initial years of GST implementation. Encourages voluntary compliance and reduces backlog of cases.Input Tax Credit (ITC) Time LimitTime limit to avail ITC for FY 2017-18, 2018-19, 2019-20, and 2020-21 is set to 30.11.2021.Provides clarity and relief to taxpayers who may have missed original deadlines, ensuring they can claim ITC due to them, promoting better cash flow management. For all the said years if the ITC is claimed by 30.11.2021, then credit will be allowed.Monetary Limits for AppealsMonetary limits for filing appeals: Rs. 20 lakh for GSTAT, Rs. 1 crore for High Court,…

CategoryRecommendationInterest and Penalties WaiverWaiver of interest and penalties for demand notices under Section 73 for FY 2017-18, 2018-19, and 2019-20, if paid by 31.03.2025.Input Tax Credit (ITC) Time LimitTime limit to avail ITC for FY 2017-18, 2018-19, 2019-20, and 2020-21 is set to 30.11.2021.Monetary Limits for AppealsMonetary limits for filing appeals: Rs. 20 lakh for GSTAT, Rs. 1 crore for High Court, and Rs. 2 crore for Supreme Court.Reduction of Pre-deposit for AppealsReduction in the pre-deposit amount required for filing appeals under GST.Amendments in Appeal FilingThree-month period for filing appeals in GSTAT will start from a date to be notified by the Government.Interest on Delayed ReturnsNo interest on delayed filing of returns if amount available in Electronic Cash Ledger on due date of filing the return.Sunset Clause for Anti-ProfiteeringNew applications…

Proposal of the Petroleum Ministry to bring ATF under GST at 5% and natural gas either at 12% or 18% Clarity on claiming ITC in several sectors where the industry has been facing issues Lay down a proposal on tax applicability on metal and steel scrap Consider a proposal to correct the inverted duty on as many as 14 items, including textiles, leather, pharma, engineering goods, etc. Clarifying norms on claiming and applicability of input tax credit on telecom services and spectrum charges To bring in further ease of doing business and better compliance Could bring a circular for clarity for global companies with branch offices in India and head offices abroad Clarifications are likely to be issued by the approval of the council for foreign airlines and shipping lines…

In the case of M. Trade Links Kerala HC, recognizing the challenges during the initial GST rollout, particularly the unavailability of GSTR 2A, allows liberty to assessees, who couldn’t claim ITC, taking the benefit of  Circular No. 183/15/2022- GST dated December 27, 2022 and Circular No. 193/05/2023- GST dated July 17, 2023, to submit their claims within 30 days from the judgment date, subject to review by GST authorities based on the scenarios specified in the Circulars; Clarifies that, for the period July 1, 2017 to November 30, 2022, the time limit for furnishing the return for the month of September is to be treated as November 30 in each financial year w.e.f. July 01, 2017, in respect of the Assesses who had filed their returns for the month of…

In the case of Veerprabhu Auto Pvt Ltd Gauhati HC noting that “prima facie appears that the provisions have not been adhered to by the respondents while issuing the demand”, orders stay on a demand of about Rs. 10.29 crores for violation of section 16 (4). Accordingly, while issuing notice directs “the impugned order of demand shall remain stayed” and lists after 4 weeks.