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Circulars
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Clarifications of certain issues under GST
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Free-of-cost moulds and dies may avoid supply valuation and credit reversal, subject to contractual use and business purpose.
Free-of-cost moulds and dies supplied by an OEM to an unrelated component manufacturer are not a supply without consideration and do not require input tax credit reversal when provided in the course or furtherance of business. Their value is excluded from the component supply value unless the component manufacturer was contractually required to use its own moulds or dies; in that event, amortised cost is included and related credit must be reversed. Separately stated spare parts and labour in car servicing are taxable at their respective applicable rates.
Clarifications of certain issues under GST– regarding
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E-way bill requirement: transit through another State mandates e-way bill even if origin and destination lie within same State.
Provision of moulds and dies by an OEM to an unrelated component manufacturer on a free of cost basis is not a taxable supply and does not require reversal of input tax credit; such free provision is excluded from the component manufacturer's valuation unless the contract contemplates use of moulds owned by the component manufacturer, in which case amortised cost is includable and the OEM must reverse credit. Separately valued goods and services in vehicle servicing are taxed at applicable rates for each component. Auction participants may declare warehouses as additional places of business and maintain or centralise books with notification; input tax credit remains claimable subject to conditions. Railways must not deliver goods without an e way bill; transit through another State triggers e way bill generation, while certain DTA-SEZ same State movements are exempt.
Temporary Ban on Imports of de-husked and fresh coconuts from Kerala by the Kingdom of Bahrain
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Import ban on de-husked and fresh coconuts from Kerala; traders must comply pending further notice.
A temporary ban by the Kingdom of Bahrain applies to imports of de-husked and fresh coconuts originating from Kerala, extending a prior restriction on fruits and vegetables; this origin-based phytosanitary prohibition remains in force until further notice and exporters, customs brokers and traders are advised to comply.
Powers of adjudication of the officers of Customs- reg.
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Adjudication limits updated to allocate higher value confiscation cases to senior customs officers for faster disposal.
The circular prescribes revised adjudication limits for confiscation cases, assigning Principal Commissioners/Commissioners jurisdiction for cases above the upper monetary band without limit, and Additional Commissioners/Joint Commissioners jurisdiction for cases within the intermediate band above a specified lower threshold, with the stated aim of improving disposal rates in the customs confiscation regime.
‘Place of Removal’ under Section 4 of the Central Excise Act, 1944, the CENVAT Credit Rules, 2004 and the CENVAT Credit Rules, 2017 - reg.
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Place of Removal principle clarified: manufacturer premises determine excise point of removal; FOR sales and exports excepted.
Determination of place of removal is generally tied to the manufacturer's premises or premises referable to the manufacturer (including depots and consignment agent premises), with each such premises constituting a separate place of removal for pricing/normal value. FOR destination contracts where ownership and risk remain with the seller until delivery form an exception. CENVAT credit for GTA services is restricted to transport up to the place of removal; transport beyond that to buyer premises is not admissible for the relevant period.
EODC Camp in RAs during 11.6.2018 to 22.6.2018 – reg.
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EODC camp operations require expedited onsite disposal of pending EODC applications with same day processing and prompt follow up.
Designated Regional Authorities must organise EODC camps to expedite disposal of pending EODC applications for Advance and EPCG authorisations, providing suitable venues, adequate and senior staff, publicising the camps to exporters, and ensuring processing and disposal in the presence of applicants on the same day where possible; cases not decided on spot must be taken up subsequently and concluded within the prescribed short timeframe, and exporters should attend with all documents prescribed in the relevant ANF.
Benefit of Focus Product Scheme to HS Code 8481 -FTP 2009-14
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Focus Product Scheme eligibility revised after challenge; prior restrictive trade notice withdrawn, restoring export benefits.
A Directorate Trade Notice that restricted Focus Product Scheme benefits under FTP 2009-14 to bicycle parts classified under HS Code 8481, and required review and recovery of scrips issued for other parts, was quashed by a High Court; the Directorate's Special Leave Petition was dismissed, and the Directorate has withdrawn the earlier Trade Notice, communicating the change in enforcement position on FPS eligibility and prior scrips under ITC(HS) 8481.
Refund applications involving amount claimed less than rupees one thousand-m/
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Refund claims below threshold: trade notice directs adherence to CBIC clarifications and requires trade associations to circulate guidance to stakeholders.
Refund applications claiming amounts below the small claims threshold are governed by administrative clarifications from the Commissioner as a continuation of central policy guidance; the notice instructs officials and stakeholders to follow those procedural clarifications and directs Trade Associations, Chambers of Commerce and Regional Advisory Committee members to circulate the guidance to constituents.
Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and clarification in other cases
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IGST refund on exports: officer assisted correction for invoice and GSTIN PAN mismatches enables processing of stalled claims.
CBIC extends the officer interface for resolving SB005 invoice mismatches to facilitate IGST refund processing and advises exporters to align Customs and GST invoice data. For SB003 errors caused by differing GSTINs with the same PAN, a correction facility permits refund sanction where both entities submit a jointly signed undertaking that the IGST-paying unit will not claim refund; an online correction utility has been deployed and the undertaking must be submitted to the Customs Officer at the port of export.
Customs- Procedure in respect of discharge and clearance of liquid Cargo in Bulk far Home Consumption / Warehousing in bonded warehouse for the purpose of determining duty liability
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Liquid cargo assessment basis: use shore tank or tank outturn quantities to determine customs duty liability.
Customs duty on imported liquid bulk cargo is to be assessed primarily on shore tank receipt or bonded warehouse tank outturn quantities into which cargo is pumped from the ship; where such tank receipts are unavailable and cargo is transferred to tank lorries, barges or tanks outside the Customs area, assessment may be on the ship's ullage survey at discharge. Advanced bills of entry must be amended to reflect actual received quantities, custodianship or equivalent insurance is required for shore tanks, pipeline unloading to bonded tanks requires prior permission, and supervised ullage and outturn surveys with signed reports and sampling are mandatory.
Refund of IGST on export of Goods - Extension of date in SB005 alternate mechanism cases and Clarification in other cases
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IGST refund correction: officer-interface extended for invoice mismatches and undertaking required where GSTIN differs but PAN matches.
Extension of an officer-mediated correction mechanism for IGST refund claims arising from SB005 invoice mismatches is provided for shipping bills filed up to 30.04.2018; exporters must align invoice details with GST filings. A correction facility is also permitted for SB003 errors where GSTINs differ but PANs are the same, subject to an undertaking by the refund claimant that the other office which paid IGST will not claim the refund; the signed undertaking must be submitted to the Assistant Commissioner (Drawback), Custom House, Visakhapatnam. A DG Systems correction tool will facilitate processing.
Refund of IGST on export of Goods-extension of date in SB005 alternate mechanism cases and Clarification in other cases
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Officer interface for IGST refund extended; submit concordance table to rectify SB005 and follow undertaking process for SB003.
The officer-mediated correction mechanism for resolving SB005 invoice mismatches has been extended; exporters must submit the prescribed concordance table (Annexure A) to enable rectification and processing of IGST refund claims. Additionally, where SB003 errors arise from differing GSTINs but the same PAN, Customs allows correction provided the refund claimant submits a signed undertaking from both entities that the other will not claim the IGST paid, to be filed with the Customs officer at export port.
GST - Division of Taxpayer base between the Central Government and the State Government of Puducherry - Second Phase - Order NO.01/2018 dated 13.04.2018 Of State Level Committee - Communication thereof
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Division of taxpayer base under GST: second-phase allocations communicated, order and assigned list enclosed for dissemination.
Division of taxpayer base between the Central Government and the State Government of Puducherry has proceeded to a second phase under the State Level Committee, which has issued Order No. 01/2018 assigning taxpayers to Centre or State in accordance with GSR Council Secretariat guidelines; the Order and assigned-list are enclosed and commissioners and trade associations are directed to notify officers, assessees, and members.
GST - Refund of IGST - Special Refund Fortnight from 31.05.2018 to 14.06.2018 and Officer interface for Shipping Bills with other errors Chennai Customs Public Notice No. 20/2018 dated 30.05.2018 and Facility Circular No. 03/2018 dated 30.05.2018
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IGST refund: special fortnight and officer assistance introduced to resolve shipping bill errors and expedite export refunds.
A Special Refund Fortnight and officer interface have been established to rectify shipping bill declaration errors, invoice mismatches, and incorrect or missing GSTIN entries to expedite IGST refund processing; a dedicated IGST Refund Cell at Chennai's New Custom House provides officer assistance and contact details, and exporters are advised to use this facility while commissioners and trade associations must disseminate the notice to relevant officers and assessees.
Instruction regarding refund module
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GST refund monitoring through a Refund Module requires officers to record RFD-01 disposal details and track refund payments systematically.
GST refund processing was to be monitored through a departmental Refund Module, with online RFD-01 applications made available on assessing officers' central login. Assessing officers were required to record refund disposal details in the system and to enter both earlier sanctioned refunds and refunds currently under processing so that refund payments could be tracked in a systematic manner.
Procedure to be followed for EGM error SB006 related to ICDs – reg.
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EGM revalidation procedure: correct ICD records, file supplementary EGM when needed, and submit Master BL for LCL consignments.
Revalidation of EGM after SB006 C and N error rectification requires Shipping Bill, Invoice, Packing List and Bill of Lading; for LCL consignments the Master Bill of Lading must be provided. If Truck/Train summary at the ICD is absent or filed after the Gateway EGM date, a supplementary EGM is required. M errors (gateway port code mismatch) and L errors (export order date after sailing date) must be corrected at the ICD before submitting documents for revalidation. Report implementation difficulties to the Commissioner.
Foreign Investment in India -Reporting in Single Master Form
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Foreign investment reporting: single master form requirement established, entities must pre-register to remain eligible to receive investment.
Introduction of a Single Master Form for consolidated online reporting of total foreign investment in Indian entities and by persons resident outside India in investment vehicles; entities must complete an Entity Master via a web interface before the SMF goes live, and failure to do so will bar receipt of foreign investment and constitute non-compliance with foreign exchange law.
External Commercial Borrowings (ECBs) – Monthly reporting through ECB 2 Return
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External Commercial Borrowings reporting requires simplified ECB return hedging disclosures; non-compliance constitutes FEMA contravention, effective month-end.
Simplifies Part E of the ECB 2 Return to record standard hedged and unhedged ECB exposures, requiring hedging details in Part E.1 and foreign exchange earnings/expenditure in Part E.2 to be reported in an additive format and for natural hedge reporting to follow prior circular provisions. The revised format is effective from the month-end June 2018 reporting cycle; AD Category I banks must inform constituents, and lapses in submission or timing of the ECB 2 Return or Form 83 reporting constitute contraventions of the Foreign Exchange Management Act.
GST- REFUND- Constitution of Refund facilitation Cell in GST Facilitation Centers at District and State Head Quarters
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Refund facilitation cells established to assist taxpayers with GST refund processing, coordination, and reporting obligations.
Constitution of Refund Facilitation Cell in district GST Facilitation Centres and at State headquarters to assist taxpayers with refund queries and processing; District RFCs staffed by identified officers under the District Deputy Commissioner, State RFC to coordinate, collate data and reports, liaise with CGST authorities, escalate matters to the Deputy Commissioner, facilitate stakeholder meetings, and follow uploaded Standard Operating Procedures.
12/2018 - 07-06-2018 GST - States
Clarifications on refund related issues
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Refund eligibility for GST credits clarified: filing and documentation rules for exporters, ISDs, composition and non-residents.
Refund claims by an Input Service Distributor, composition taxpayer, or non-resident taxable person do not require FORM GSTR-1 or FORM GSTR-3B; their specific returns (GSTR-6, GSTR-4, GSTR-5) suffice. Portal refunds are permitted for prior mismatches between GSTR-3B and GSTR-1 within the specified historical window subject to an aggregate cap across GSTR-3B columns. Exporters may claim refund of unutilized compensation cess credit on inputs for zero-rated supplies under bond or LUT, but cess credit cannot be used to pay integrated tax. Bond/LUT is not required for zero-rated exempted or non-GST goods. Rule 96(10) restriction applies only to exporters directly receiving goods from suppliers availing specified notifications and not to indirect procurements or certain capital goods scenarios.

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Implementation of Notification No.04 dated 25.04.20 18 - reg.

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Proportional registration for part-paid imports: registration allowed reflecting quantity tied to verified advance payment before deadline.
Imports of peas under the specified Exim classification may be registered in proportion to part advance payments remitted before the cutoff; eligible ... Summary

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Acts Income Tax