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Taxpayers who had applied for waiver of interest, late fee, or penalty under Forms SPL-01/SPL-02 and received Rejection Orders in SPL-07, can now file Appeals (APL-01) on the GST portal.🔹 Key Highlights:• Appeals against SPL-07 (Rejection Orders) are now enabled on the GST portal.• Navigation Path:• Go to Services → User Services → My Application• Choose Application Type: “Appeal to Appellate Authority”• Click on New Application• Under Order Type, select: “Waiver Application Rejection Order”⚠️ Important Advisory:• Appeals filed under the waiver scheme CANNOT be withdrawn on the portal — exercise due caution before proceeding.• If you do not wish to appeal SPL-07, but want to restore your earlier appeal (withdrawn for filing waiver), you can do so by submitting an Undertaking:• Go to the “Orders” section in the “Waiver Application”…

In a significant development, the Rajasthan High Court has granted interim relief to Vedanta Ltd., staying recovery proceedings under a GST assessment order that sought to levy GST on Corporate Guarantees (CGs) extended by a parent company to its subsidiaries.The assessment order was based on CBIC Circular No. 204/16/2023-GST, which clarified that a corporate guarantee issued without consideration between related parties qualifies as a supply of service under Schedule I of the CGST Act and should be valued at 1% of the guaranteed amount under Rule 28(2) of the CGST Rules, 2017.Vedanta Ltd. challenged:• The vires of Rule 28(2),• The legality of the valuation mechanism prescribed in the Circular, arguing it to be onerous and confiscatory.Taking note of the submissions and the absence of any reply from the GST Department,…

Key take aways from the judgement Delegated Legislation Requires Strict Scrutiny The notifications issued under Section 168A are classified as delegated legislation and not conditional legislation. The Court reiterated that any deviation from statutory limitation must be interpreted strictly and narrowly 2. Section 168A Invokable Only in Genuine Force Majeure Cases Court emphasized that mere administrative difficulty or systemic inefficiencies do not justify the invocation of Section 168A. Pandemic, as a force majeure event, must have a direct causal impact on adjudication timelines – a “cause-effect” link is mandatory, not presumed. 3. Systemic Failures ≠ Force Majeure Government’s justification citing staff shortage and system overload was rejected as it failed the test of causality under force majeure. Court held that institutional bottlenecks do not fall under the “Act of God”…

In writ petition pertaining to negative blocking of Electronic Credit Ledger (ECrL), SC issues notice noting ‘conflict’ between Delhi HC judgment in Best Corp Science and Madras HC judgment in Skanthaguru Innovations; On scope of Rule 86A, while Delhi HC comprehending the phrase ‘amount equivalent to such credit’ appearing in Rule 86A decisively held that the Rule can only block existing ITC, not a negative balance in ECrL, Madras HC ruled that negative blocking of ITC is permissible under Rule 86A of the CGST Rules; Interpreting the phrase ‘‘credit of ITC available in ECL’ appearing in Rule86A, Madras HC held that ““ITC has to be available in the ECL, at any point of time, for the purpose of debiting the ECL”; SC has condoned delay of 78 days and posted the matter in August, 2025

Sl NoQuestionAnswer1How can a recipient avail ITC of wrongly rejected Invoices/ Debit notes/ECO-Documents in IMS as corresponding GSTR-3B of same tax period was also filed by recipient?In such cases recipient can request to the corresponding supplier to report the same record (without any change) in same return period’s GSTR-1A or respective amendment table of subsequent GSTR-1/IFF. Thus, recipient can avail the ITC basis on amended record by accepting such record on IMS and recomputing GSTR-2B on IMS. Here the recipient will get ITC of complete amended value as original record was rejected by the recipient.   However, recipient will be able to take ITC for the again furnished document by the supplier, as stated above, only in the GSTR-2B of the concerned tax-period.2If any original record is rejected by the…

Circular No.: 249/06/2025-GSTDate: 09th June 2025Issued By: Central Board of Indirect Taxes and Customs (CBIC)Subject: Clarification on requirement of Document Identification Number (DIN) for GST communications via common portal🔍 BackgroundCBIC had earlier made it mandatory to generate and quote a Document Identification Number (DIN) on all communications issued by its officers, as per Circulars:• 122/41/2019-GST dated 05.11.2019• 128/47/2019-GST dated 23.12.2019The intention behind DIN was to promote transparency, accountability, and traceability in communication with taxpayers.⸻🆕 Current Clarification in Circular 249/2025CBIC has now exempted the requirement of quoting DIN in communications issued via the GST common portal, such as:• Show Cause Notices (SCNs)• Summary of Orders• Communications like DRC-01 and DRC-07These documents already carry a Reference Number (RFN) which:• Is unique• Is electronically generated• Is verifiable by the taxpayer through the official…

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9. Hence, above mentioned returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from July 2025 Tax period. Hence, the taxpayers are once again advised to reconcile…

 GST Portal provides a pre-filled GSTR-3B, where the tax liability gets auto-populated based on the outward supplies declared in GSTR-1/ GSTR-1A/ IFF. As of now taxpayers can edit such auto populated values in form GSTR 3B itself. With introduction of form GSTR 1A, taxpayer now has a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B in the same return period. In view of the same, from July,2025 tax period for which form GSTR 3B will be furnished in August,2025 such auto populated liability will become non editable. Thus, taxpayers will be allowed to amend their auto populated liability by making amendments through form GSTR 1A which can be filed for the same tax period…

CBIC notifies Jalna in Maharashtra for unloading of imported goods and the loading of export goods

In a significant interim relief, the Delhi High Court has stayed a GST demand of ₹9.85 crores (approx.) raised on Vardhman Electronics, a retailer of electronic goods, for discounts received from manufacturers via credit notes. The Revenue had alleged that such discounts amounted to a taxable “service” rendered by the retailer in promoting the manufacturer’s goods. The High Court, comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta, took the prima facie view that discounts offered by manufacturers cannot be equated to consideration for services rendered by the retailer, thereby staying the impugned order passed by the Additional Commissioner, CGST Delhi West. Key Highlights: Petitioner’s Argument: There is no underlying “supply” or “consideration” involved; the transaction is a mere commercial arrangement linked to purchases. Revenue’s Stand: Discounts are a…

(Based on GSTN Advisory dated May 16, 2025)Key Highlights: Earlier Communication (April 11, 2025): GSTN had proposed to make Table 3.2 of GSTR-3B non-editable from the April 2025 return period (due in May 2025). Stakeholder Concerns: Numerous representations were received from taxpayers raising concerns about this change. These are currently under review. Interim Decision – Table 3.2 Remains Editable: GSTN has decided to keep Table 3.2 editable for now. Taxpayers are advised to: o Review the auto-populated values carefully, o Make necessary amendments, and o File returns with accurate and verified information. Next Steps:GSTN will issue a separate notification when the proposed non-editable feature is implemented.

In the case of Mukesh Kumar Garg In yet another writ petition pertaining to fraudulent availment of Input Tax Credit (ITC) to the tune of more than Rs. 115 crores, Delhi HC rules on misuse of ITC facility which “if permitted to continue, would create an enormous dent in the GST regime itself”; On nature of fraud, HC noticing serious allegations and  ‘complex maze of transactions’ carried out between various non-existent firms for the sake of fraudulent transactions, harps on how a large number of writ petitions have been filed on availment of fake ITC without supply of goods; Further holds that “Input Tax Credit… is meant as an incentive for businesses who need not pay taxes on the inputs, which have already been taxed at the source itself. The said facility, which was introduced…

As per the latest advisory from GSTN, the following critical points must be noted for refund applications under the categories of:  Export of Services with payment of tax  Supplies made to SEZ Unit/SEZ Developer with payment of tax  Refund by Supplier in case of Deemed Exports  ✅ Advisory Highlights:  Invoice-Based Filing:  The refund process has shifted from tax period-based to invoice-based filing. Taxpayers must upload eligible invoices as per the applicable statement:  Statement 2 – Export of Services with payment of tax  Statement 4 – SEZ Supplies with payment of tax  Statement 5B – Supplier of Deemed Exports  Locking of Invoices:  Invoices once uploaded with a refund application will be locked.  Amendments or reuse of these invoices in other refund claims is not allowed.  Invoices will be unlocked only if: …

GSTN advisory states that due to technical challenges in system development and testing, the implementation of invoice-wise reporting in Form GSTR-7 is slightly delayed from the original April 2025 timeline; However, assures that the enhanced functionality will be deployed soon and confirms that users will be notified once the changes go live on the portal: GSTN Advisory.

Subject: Grievance Redressal Mechanism for GST Registration Applications Background:This instruction supplements the earlier Instruction No. 03/2025 dated 17.04.2025, which provided guidelines for processing GST registration applications. Applicants often face issues such as arbitrary queries or unjustified rejection of registration applications, especially under Central jurisdiction. Key Highlights of the New Grievance Redressal Mechanism: 1. Applicability:• Applies to applicants whose Application Reference Number (ARN) is assigned to the Central jurisdiction.• Covers grievances regarding queries raised, grounds for rejection, or non-compliance with earlier instructions. 2. Grievance Redressal Procedure:• Designated Email ID:• Each CGST Zone (Principal Chief Commissioner/Chief Commissioner) will publicize a dedicated email ID for grievance submissions.• Applicants must send their grievance to this ID with the following details:• ARN• Jurisdiction (Centre/State)• Brief description of the issue• State Jurisdiction Cases:• If the grievance…

The key highlights are: 1. Break-up of Gross Collections: ComponentApr 2024 (₹ Cr)Apr 2025 (₹ Cr)GrowthCGST43,84648,634–SGST53,53859,372–IGST99,6231,15,259–Cess13,26013,451–Total2,10,2672,36,71612.6% 2. Net GST Revenue (after refunds): TypeApr 2024 (₹ Cr)Apr 2025 (₹ Cr)GrowthDomestic1,60,4961,76,4189.9%Imports31,33732,9585.2%Net Total1,91,8332,09,3769.1% 3. Refund Trends: Total refunds jumped by 48.3% YoY to ₹27,341 crore. Export-related refunds through ICEGATE increased by 86.1%. 4. State-wise Revenue Growth (YoY): High Performers: Arunachal Pradesh (66%), Meghalaya (50%), Nagaland (42%) Major Contributors: Maharashtra (₹41,645 Cr), Gujarat (₹14,970 Cr), Karnataka (₹17,815 Cr), Tamil Nadu (₹13,831 Cr) Decline in Revenue: Mizoram (-28%), Andhra Pradesh (-3%), Tripura (-7%)

The Ministry of Finance has firmly debunked recent misinformation suggesting that the Government is considering levying Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions above ₹2,000. In an official press release dated April 18, 2025, the Government stated that such claims are entirely false, misleading, and baseless. Currently, there is no proposal under consideration to impose GST on UPI transactions. GST is applicable only on specific service charges, such as the Merchant Discount Rate (MDR), but since January 2020, the MDR on Person-to-Merchant (P2M) UPI transactions has been completely removed via Gazette Notification dated December 30, 2019. As a result, no GST applies to these transactions either. To further promote the adoption of UPI and digital payments, the Government has introduced an Incentive Scheme targeting low-value P2M…

As per Instruction No. 03/2025-GST dated April 17, 2025 Introduction The Central Board of Indirect Taxes and Customs (CBIC) has issued comprehensive instructions to ensure standardized and efficient processing of GST registration applications. These guidelines are meant to prevent fraudulent registrations while ensuring ease of compliance for genuine taxpayers. They supersede Instruction No. 03/2023-GST and are to be followed strictly by all officers involved in registration processing. 1. Objective Standardize document verification procedures. Avoid undue harassment of genuine applicants. Prevent delays and speculative queries. Ensure timely processing of registration requests. 2. General Guidelines Officers must only seek documents as listed in FORM GST REG-01. Any additional document (outside prescribed list) must be sought only with prior approval from a Deputy/Assistant Commissioner. Presumptive or irrelevant queries are strictly prohibited. 3. Documentation…

The Bombay High Court at Goa, in its judgment dated 15th April 2025 in Writ Petition No. 723/2024, ruled in favor of Goa University and quashed a GST demand of ₹4.83 crore on affiliation fees collected from colleges. Key Points: Goa University had challenged:A show cause notice issued under Section 74 of the CGST Act.Two circulars issued by CBIC (dated 17.06.2021 and 11.10.2024). A press note based on recommendations of the 54th GST Council meeting. The University argued that:Affiliation fees are collected as part of its statutory duties under the Goa University Act, 1984.The activity is regulatory in nature and not commercial. Such services are exempt under GST Notification No. 12/2017. The GST department claimed:Affiliation fees are taxable services under GST. The exemptions apply only to services provided directly to…

Bombay High Court Judgment in Writ Petition No. 7135 of 2024 Case Title: M/s Shrinivasa Realcon Private Ltd. vs. Deputy Commissioner, Anti-Evasion Branch, CGST & Central Excise, Nagpur & Others Date of Judgment: 8th April 2025 The Bombay High Court at Nagpur allowed a writ petition filed by M/s Shrinivasa Realcon Pvt. Ltd., challenging a GST demand arising from a development agreement dated 07.04.2022. Key Points: The petitioner was appointed as a developer for constructing a multi-storied complex on land owned by a third party. The department issued a notice claiming GST under Entry 5B of the Notification dated 28.06.2017 (as amended by Notification dated 29.03.2019), treating the transaction as a “transfer of development rights (TDR).” The Court observed that the agreement did not involve any transfer or purchase of…

The GSTN has announced the rollout of Phase-III changes to Table-12 of GSTR-1 and GSTR-1A effective from the April 2025 tax period. The table will now be split into B2B and B2C sections, requiring separate HSN-wise reporting for each. Manual HSN entry will be discontinued, and taxpayers must select the appropriate HSN code from a system-generated dropdown. Advisory on Table-12 of GSTR-1 or GSTR-1A It to inform that GSTN has implemented phase wise changes in Table-12 of GSTR-1 or GSTR-1A. For the same various advisories have been issued time to time, which are available on GST Portal. GSTN is going to implement Phase-III of Table 12 of GSTR 1 & 1A from April, 2025 tax period onwards. Which implies: Table-12 has been bifurcated into two tables namely B2B and B2C,…

The GSTN has issued an advisory stating that, effective from the April 2025 tax period, Table 3.2 of GSTR-3B will be non-editable and auto-populated based on inter-state supplies reported in GSTR-1, GSTR-1A, or IFF. These values relate to supplies made to unregistered persons, composition taxpayers, and UIN holders. Any corrections must be made through amendments in the respective GST returns. Advisory on reporting values in Table 3.2 of GSTR-3B Table 3.2 of Form GSTR-3B captures the inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders out of the supplies declared in Table 3.1  &  3.1.1  of  GSTR-3B.  The  values  in  Table  3.2  of  GSTR-3B  auto-populates  from corresponding inter-state supplies declared in GSTR-1, GSTR-1A, and IFF in requisite tables. It  is  to  inform  you  that  fromApril-2025  tax  period,inter-state  supplies …

Indian Medical Association v. Union of India & Ors. W.A. Nos. 1659, 1487 & 468 of 2024 | Judgment dated 11 April 2025 The Kerala High Court has allowed the writ appeal filed by the Indian Medical Association (IMA), Kerala State Branch, setting aside the judgment of the Single Judge that had upheld GST levy on services provided by associations to their own members. Key Highlights: The Court struck down the retrospective amendment introduced through Section 7(1)(aa) of the CGST Act, inserted by the Finance Act, 2021, which had sought to nullify the principle of mutuality. The amendment had deemed services rendered by a club or association to its members to be a taxable “supply”, retroactively from 01.07.2017. The Division Bench held that such deeming fiction violates the constitutional understanding…

GSTN informs that from June 01, 2025, Invoice Reporting Portal (IRP) will treat invoice/document numbers as case-insensitive for the purpose of Invoice Reference Number (IRN) Generation; Invoice numbers reported in any format (abc, ABC or Abc) will automatically be converted to uppercase before IRN generation; This development has been made to ensure consistency and to avoid duplication; GSTN further mentions “this change aligns with the treatment of invoice numbers in GSTR-1, which already treats them as case-insensitive”: GSTN Advisory http://mohansekhar.in/wp-content/uploads/Advisory_on_Case_Sensitivity_in_IRN_Generation.pdf

The CBIC has issued clarifications and FAQs regarding the revised GST treatment for restaurant services offered at “specified premises”, bringing a major shift in how hotel premises are classified and taxed. Here are the key takeaways every hotelier and restaurateur should know: 🍽️ What’s Changing? 🔹 ‘Declared Tariff’ Out, ‘Value of Supply’ In Starting FY 2025-26, a hotel will be classified as a “specified premises” based on actual transaction value (> ₹7,500/unit/day), not the published tariff. 🔹 GST Rate Difference • 18% GST with ITC at specified premises • 5% GST without ITC at other premises 🔹 Flexible Opt-In/Out Mechanism Hotels can voluntarily declare their premises as specified using Annexure VII/VIII. Once declared, it applies until an opt-out is filed. 🔹 Multiple Premises? Each premise must be evaluated individually. One…

CBIC notifies amendment in Rule 164 of the CGST Rules, 2017 to provide the amnesty benefit relating to waiver of interest and penalty u/s 128A of the CGST Act, 2017; Vide the amendment in sub-rule (4) of section 164, specifies that where the notice or statement or order specified in section 128A, includes a tax demand partly for the period from July 1, 2017, to March 31, 2020, and partly for a later period, an application for closure of proceedings (FORM GST SPL-01) can be filed only after full tax payment  “related to period mentioned in the said sub-section” as mentioned in the notice or statement or order, before the notified date; Further, specifies that refund will not be granted for any tax, interest, or penalty paid before the instant…

The Supreme Court of India, in the matter of Union of India vs Brij Systems Ltd., dismissed the Special Leave Petition filed by the Union Government, citing its prior dismissal of a similar case (Central Board of Indirect Taxes and Customs v. M/s Aberdare Technologies Private Limited and Ors.). However, recognizing the broader implications regarding the rectification of clerical or arithmetic errors in Input Tax Credit (ITC) claims, the Court took cognizance of the prevalent practice of denying rectifications beyond the statutory timelines defined under Sections 37(3) and 39(9) of the Central Goods and Services Tax Act, 2017. The Court acknowledged the administrative rigidity, which has resulted in genuine errors going unrectified, adversely impacting purchasers due to denial of ITC. To address this systemic issue, the Supreme Court issued a…

Central Board of Indirect Taxes and Customs vs. M/s Aberdare Technologies Pvt. Ltd. & Ors. Date of Judgment: 21 March 2025 The Supreme Court dismissed the Special Leave Petition filed by the Central Board of Indirect Taxes and Customs, upholding the Bombay High Court’s judgment. The Court found the High Court's judgment fair, noting no loss of revenue. The Supreme Court emphasized the need for realistic timelines and provisions to correct genuine clerical or arithmetic errors, stating such corrections stem from the fundamental right to do business. Denying correction based solely on software limitations was deemed inadequate, as software should be configured to facilitate compliance, not hinder it. The judgment highlighted the unnecessary hardship caused to purchasers denied input tax credit despite having already paid the taxes due, effectively causing…

Mar 21st, 20251. Grievances are raised by taxpayers regarding difficulties faced while filing the waiver applications. Following grievances faced by taxpayers have come to the notice of GSTN and team is working to resolve the issues at the earliest.i. Order number is not available in dropdown for selection in SPL 02.ii. Order details are not getting auto populated after selection of a particular order in SPL 02.iii. Payment details are not getting auto populated in Table 4 of SPL 02.iv. After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards Demand” for that order. Also, taxpayer is not able to adjust the amount paid through DRC 03, against the same demand order, using DRC 03A.v. Not able to withdraw the…

Kerala SGST directs all the adjudicating and appellate authorities to conduct personal hearings only through video conferencing mode except in the exceptional circumstances involving technical or other constraints; The Circular includes some guidelines which the authorities must adhere to ensure a smooth and transparent process; The guidelines include informing the date and time of the video conference with its meeting id and password in advance, serving the personal hearing notice on email, authorizing the consultant/authorized representative/Advocate of the Assessee to attend the personal hearing etc. Detailed guidelines can be referred in the Circular: Kerala SGST Circular Circular_07_2025 :- http://mohansekhar.in/wp-content/uploads/Circular_07_2025.pdf

Kerala SGST authorizes territorial jurisdiction over the whole State of Kerala to the officers in Centralised Refund Processing Formation for processing of refunds; This development comes as an amendment to Notification No. 01/2023-State Tax; A proviso to Para 12 has been inserted to the said Notification in this regard, which shall be effective from March 15, 2025: Kerala SGST Notification

Submission of Letter of Undertaking (LUT): Registered Person supplying zero-rated supplies to SpecialEconomic Zones (SEZs) or exports, without paying Integrated GST (IGST), must submit a Letter of Undertaking (LUT) in Form RFD -11for the upcoming FY by March 31, 2025. Opting for the Composition Scheme: Eligible businesses to avail the Composition Scheme for FY 2025-26shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the commencement of the financial year for which the option to pay tax under the aforesaid section is exercised and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of Rule 44 of the CGST…

GSTN informs that unregistered dealers engaged in the movement or transportation of goods can now generate an E-Way Bill (EWB) by enrolling themselves on the EWB portal; A unique Enrolment ID will be generated for such users which will be an alternative to the Supplier/Recipient GSTIN; The advisory also includes the user guide for ENR-03 enrolment specifying the processes (i) Accessing ENR-03, (ii) Filling Out the ENR-03 Form, (iii) Creating Login Credentials and (iv) Generating the e-Way Bill; Users can access the Detailed User Guide for further assistance: GSTN Advisory Subject: Advisory on Introduction of Form ENR-03 for Enrolment of Unregistered Dealers/Persons in e-Way Bill Portal for generating e-way Bill.Feb 15th, 2025Dear Stakeholders,A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrolment of unregistered dealers…

GSTN issued new advisory for GST Registration process The GSTN has issued an update to inform that if taxpayers choose not to authenticate via Aadhaar, they must visit the designated GST Suvidha Kendra (GSK) for photo capturing and document verification. It is also informed that applicants must adhere to the steps as per Rule 8 of the CGST Rules, 2017. If taxpayers are opting for Aadhaar authentication, they should first visit the GSK for biometric authentication and photo capturing, followed by the Primary Authorized Signatory (PAS). Advisory for GST Registration Process (Rule 8 of CGST Rules, 2017) Feb 12th, 2025 Dear Taxpayer, In line with recent developments in the GST registration process, applicants must adhere to the following steps as per Rule 8 of the CGST Rules, 2017: 1.    Applicants…

1. Background and Purpose The Central Board of Indirect Taxes and Customs (CBIC) issued this circular to clarify the applicability of late fees under Section 47 of the CGST Act, 2017 for the delay in furnishing FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement). This clarification was issued in response to representations seeking confirmation on whether a separate late fee is applicable when GSTR-9C is filed late but after GSTR-9. 2. Key Clarifications on Late Fees Legal Provisions (Before and After 01.08.2021) Before 01.08.2021: Section 44(2) of the CGST Act required registered persons to submit audited annual accounts and a reconciliation statement (GSTR-9C) along with their annual return (GSTR-9). After 01.08.2021: The mandatory audit requirement was removed, and taxpayers with an aggregate turnover exceeding ₹5 crore must submit a self-certified GSTR-9C along with GSTR-9.…

Sl NoSectionPre-Budget 2025Post-Budget 2025Remarks1Amendment of Section 261) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;](61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, of this Act or under subsection (3)…

(Circular No. 245/02/2025-GST dated 28th January 2025) The Government of India, based on the recommendations of the 55th GST Council meeting held on 21st December 2024, issued this circular to provide clarifications on various GST-related issues. It also regularizes past GST payments for specific services, ensuring compliance and reducing ambiguity. Below is an elaborate summary of the key points covered: 1. GST on Penal Charges Levied by Banks and NBFC: The Reserve Bank of India (RBI) issued instructions (effective 01.01.2024) mandating regulated entities like banks and NBFCs to replace "penal interest" with "penal charges" for non-compliance with loan terms. Clarification: Penal charges are deemed to be for breach of contract, not a consideration for tolerating an act. As such, no GST is payable on penal charges levied in compliance with…

(Circular No. 244/01/2025-GST dated 28th Jan 2025) The GST Council, in its 53rd meeting on 22nd June 2024, made important recommendations regarding certain transactions under the GST Act. Here's what the circular explains: New Transactions in Schedule III (Effective from 01.11.2024, vide Notification No. 17/2024-Central Tax dated 27.09.2024): The following activities are now categorized as "neither supply of goods nor supply of services" under the CGST Act, 2017: Co-Insurance Premium Sharing: When a lead insurer shares the co-insurance premium with co-insurers, it is not treated as a supply, provided the lead insurer pays all applicable GST on the full premium amount. Reinsurance Transactions: Services by insurer to the reinsurer for which ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, subject…

The CBIC has issued a press release to caution taxpayers against fraudsters issuing fake and fraudulent Summons for GST violations. Now, the taxpayers can verify online any communication from DGGI or any office of CGST by using the ‘VERIFY CBIC-DIN’ window on CBIC website.

GSTN issues updated advisory on reporting of HSN codes in Table 12 of GSTR-1/1A; After successful implementation of Phase I and Phase II, mandatory mentioning of HSN code in GSTR-1 and GSTR-1A from February 2025 return filing period i.e 11th March / 13th March 2025 has now been floated: GSTN Advisory

After Gujarat HC, Bombay HC quashes the GST demand on assignment by sale and transfer of leasehold rights of the plot of land and building by original lessor to third party assignee; However, HC directs the Adjudicating Authority to issue a fresh order in the matter after considering the Gujarat HC judgment; In this case, the lessor had obtained leasehold land from MIDC and subsequently transferred the land and building to a third party.

GSTN advises taxpayers to file applications under waiver scheme as both Forms GST SPL 01 and GST SPL 02 are available on the portal; On eligibility regarding such cases where appeal applications (APL 01) is filed before March 21, 2023 (and not disposed of) as “withdrawal option is not available in GST portal” GSTN informs such taxpayers to submit their request for withdrawal of appeal applications to the concerned Appellate Authority; The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications from backend; Earlier GSTN had released step-by-step process to apply for GST Amnesty Scheme waiver of interest and penalty: GSTN Advisory 

DATENOTIFICATION NO.SUBJECT10/01/202501/2025Extension of date for filling of outward supplies in GSTR -1 for the month of December -2024 to 13th of January,2025. Extension of date for filling of outward supplies for the period October- December 2024 to 15th of January 2025 (Quarterly filers).10/01/202502/2025Extension of filling details in GSTR-3B for the month of December-2024 to 22nd January, 2025 and quarterly filling for the period October-December 2024 to 24th for Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep & 26 January 2025 for Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Vagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, Wes 3engal, Jharkhand or Odisha, the Union…

Jan 7th, 2025 The Central Government, on the recommendations of the 54th GST Council, had issued Notification No. 22/2024 – CT dated 08.10.2024 and notified that any registered person against whom any order confirming demand for wrong availment of ITC, on account of contravention of provisions of sub-section (4) of section 16 of the said Act had been issued, but where such ITC is now available as per the recently inserted sub-sections (5) and/or (6) of section 16 of the Act, would now be able to file an application for rectification of such demand orders. A functionality has now been made available on the Portal for taxpayers to file an application for rectification of such orders issued under section 73/74. They can file it, post login, by navigating Services > User Services >…

Circular No. 243/37/2024-GST dated 31.12.2024 Key Issues Addressed: Classification of Transactions in Vouchers Vouchers may function as payment instruments creating obligations for suppliers to accept them as consideration for goods or services. Legal definitions of “goods,” “services,” and “vouchers” under the CGST Act are explained, establishing that: If recognized by RBI as pre-paid instruments, vouchers are categorized as “money,” excluded from goods or services. If not RBI-recognized, vouchers may be treated as actionable claims but still excluded from taxable supplies under Schedule III of the CGST Act. GST Treatment for Voucher Transactions by Distributors/Agents: Principal-to-Principal Basis: Pure trading of vouchers is not taxable as it is neither a supply of goods nor services. Agency Basis: Distributors or agents earning commission/fees for services provided (e.g., marketing or distribution) are liable to…

Circular No. 242/36/2024-GST dated 31.12.2024 The circular addresses issues arising from the incorrect determination of the place of supply for taxable online services provided to unregistered recipients. It aims to ensure compliance with Section 12(2)(b) of the Integrated Goods and Services Tax (IGST) Act, 2017, and Rule 46 of the Central Goods and Services Tax (CGST) Rules, 2017. Key Points Background Some suppliers incorrectly identify the location of the supplier as the place of supply instead of the recipient’s state, causing misallocation of tax revenues to incorrect states. This misinterpretation mainly affects online services provided directly or through electronic commerce operators Clarifications Provided Online Services Definition (Section 2(17), IGST Act): Includes services like advertising, cloud services, e-books, digital content, data storage, and online gaming (excluding money gaming). Place of Supply…

Circular No. 241/35/2024-GST dated 31.12.2024 Key Points: Context and Issue: Scenario: Automobile sector contracts between dealers and Original Equipment Manufacturers (OEMs) are often Ex-Works (EXW) contracts. Goods are considered delivered when handed over to the transporter at the OEM’s factory gate. Issue: Field formations questioned the eligibility of dealers to claim ITC before physically receiving goods at their business premises. Show cause notices were issued for alleged wrongful ITC claims Legal Background: Section 16(2)(b), CGST Act, 2017: A registered person can claim ITC only if goods or services have been “received.” Explanation in the Act: Goods are deemed “received” if delivered to the recipient or their agent (e.g., transporter) before or during movement, either through transfer of documents of title or otherwise. Clarifications Provided: No Physical Receipt Requirement: The Act…

Circular No. 240/34/2024-GST dated 31.12.2024 Context This circular builds on Circular No. 167/23/2021-GST dated December 17, 2021. It addresses clarifications for ITC reversals related to services other than restaurant services supplied through ECOs under Section 9(5) of the CGST Act. Key Clarifications Applicability of Section 9(5): ECOs must pay tax under Section 9(5) of the CGST Act for specified services as if they are the suppliers. For other services, such as platform fees or commissions, they charge their users directly. ITC Utilization Rules: ITC can be availed for inputs and input services used for providing their own platform-related services. ITC cannot be utilized for paying tax liabilities under Section 9(5); such liabilities must be paid entirely in cash. ITC Reversal: ECOs are not required to reverse ITC proportionally for supplies…