Recovery of wrongly availed CENVAT credit must be discharged via prescribed DRC forms, with interest and penalty applying.
Recovery of arrears for wrongly availed CENVAT credit and inadmissible transitional credit must be treated as central tax liability and discharged either voluntarily in FORM GST DRC-03 or recovered by order in FORM GST DRC-07, with payment made in FORM GST DRC-03; applicable interest and penalty apply. The alternative of reversing such credits through Table 4(B)(2) of FORM GSTR-3B has been withdrawn (it had been temporarily allowed when electronic liability register functionality was unavailable).

Principal-agent relationship: agent issuing invoice determines whether supply is treated as on behalf of principal and triggers registration.
The scope of the principal-agent relationship under Schedule I depends on the agent's representative role and whether the agent issues invoices and transfers title in his own name. If the agent issues the invoice in his name and supplies or receives goods on behalf of the principal, such transfers fall within Schedule I as supplies despite absence of consideration. If invoices are issued in the principal's name, the intermediary is treated as providing services and Schedule I does not apply. Registration obligations arise for agents who supply in their own name, while procurement-only intermediaries register only if their taxable services cross the registration threshold.

Deemed export benefits: amended forms and procedures streamline claims for TED, duty drawback and interest.
Amendments to Appendices and ANFs under Chapter 7 of the FTP/HBP 2015-20, effective 5.12.2017, standardise procedures and documentary formats for claiming deemed export benefits. The changes update notified agency lists and prescribe formats for Project Authority Certificates, Certificates of Payments, DBK I/II/IIA statements with certification requirements, and ANF-7A/ANF-7B application templates for TED/duty-drawback claims, brand-rate fixation and interest on delayed refunds, together with checklists of supporting documents and undertaking/declaration obligations.

Export Oriented Unit compliance: updated approval, monitoring, NFE calculation and DTA sale procedures enforce reporting and fiscal obligations.
Amendments to Chapter 6 appendices and Aayat Niryaat Forms of FTP/HBP 2015 20, effective 5 December 2017, update approval, sectoral, monitoring and compliance procedures for EOU/EHTP/STP/BTP units. They prescribe documentary and verification criteria for automatic approvals, Board of Approval composition and powers, standard formats for LOP/Legal Agreement, sector specific conditions, DTA and advance DTA sale rules, detailed QPR/APR reporting and NFE calculation methodology, CST reimbursement procedures, and exit/revival/conversion mechanics, along with jurisdictional contacts and standardised ANF application forms.

CXL quota allocation for preferential sugar exports to EU establishes certificate of origin and customs endorsement requirements for release.
A quantity of ten thousand tons of raw and/or white sugar is allocated under the CXL concession for export to the EU for 01.10.2018-30.09.2019; exports remain 'Free' subject to notified restrictions. Release into the EU requires a Certificate of Origin issued under Articles 55-65 of Regulation (EEC) No. 2454/93 and compliance with Regulation (EC) No. 891/2009; export authorization entries must reference CXL Concessions Sugar Serial No. 09.4321. The Certificate of Origin will be issued by the Additional Director General of Foreign Trade, Mumbai, and the EUR Form must be endorsed by Customs. Reporting obligations under the existing export notification continue.

Export authorisations for SCOMET items allowed temporarily for display or tenders, subject to IMWG conditions and mandatory return.
Authorisations for export of SCOMET items for display/exhibition/tenders/RFP/RFQ/NIT will be considered by Chairman IMWG on a temporary export basis subject to conditions: no end user certificate; no commercial transaction; quantities commensurate with purpose; no technology transfer enabling exchanges; no authorisation for UNSC sanctioned or high risk destinations; submission of proof of event and participation; an undertaking that items remain in exporter custody, will be returned within 90 days or permitted extension, and Bill of Entry for return will be submitted; approvals by Chairman IMWG with ex post confirmation by IMWG.

Export authorization for SCOMET items allows repair or replacement exports subject to documentation and IMWG approval.
Authorization framework permits export of SCOMET items for repair or replacement either to the original foreign supplier/OEM or, for indigenous items, back to the original ultimate end user. No End Use details or End Use Certificate are required. Applications must include proof of import/export, contractual obligation for repair/replacement, and an undertaking specifying SCOMET category, unchanged specifications, permitted repair/replacement under original terms, and arrangements to return or evidence destruction of defective items. Chairman IMWG considers and may approve applications, with subsequent ex post facto confirmation by IMWG.

Customs relief procedures for flood-damaged cargo require submission of prescribed details enabling individual consignment orders.
Flood disruption at a Container Freight Station requires affected stakeholders to submit a prescribed Performa to the Assistant Commissioner (CFS Falcon) detailing shipping particulars, bill of entry or shipping bill status, importer/exporter and broker identification, item description, quantity, value and remarks; CFS must provide cargo inventory. Stakeholders must declare insurance and survey status. The department will examine each consignment and issue consignment-specific orders; immediate clearance is allowed where statutory requirements and duty payment are satisfied, and exporters lacking LEO/registration may seek removal by request to the Assistant Commissioner.

Transitional Credit verification requires nodal officers to audit TRAN 1 claims and compel reversal or recovery when inadmissible.
Nodal Officers must verify TRAN 1 transitional credit entries in the Electronic Credit Ledger using EIU data, VAT returns up to June 2017, statutory declarations, invoices and books; state authorities shall verify only MVAT and Entry Tax components. Where credits exceed amounts legitimately carried forward or lack required documentary support, officers shall issue FORM 603, require reversal of inadmissible credits in subsequent GSTR 3B returns, and pursue demand and recovery under the MGST Act after issuing FORM GST DRC01 and affording hearing.

Input tax credit admissibility controls final GST refunds, requiring document reconciliation, statutory audit and demand procedures.
The circular directs Nodal Officers to verify refund claims for exports, SEZ supplies, inverted duty and deemed exports by examining FORM GST RFD 01A, electronic ledger entries, GSTR 1, GSTR 3B and auto drafted GSTR 2A and supporting invoices, apply admissibility rules for input tax credit, reconcile recipient and supplier reporting including amended returns, compute eligible refund under the rule based formulas (including the amended inverted duty formula), subject final withheld refunds to statutory audit, and where inadmissible credits or mismatches are found, issue show cause notices and initiate demand and recovery procedures.

Paperless export processing: upload and link digitally signed supporting documents for electronic assessment and customs verification.
Authorized persons may upload digitally signed supporting documents to ICEGATE/eSANCHIT while preparing jobs in their Remote EDI Systems, obtain an Image Reference Number for documents uploaded after Shipping Bill generation, and link those documents to the Shipping Bill via an amendment at the Service Centre; Customs officers will access the uploaded electronic supporting documents during ICES assessment and may raise queries online, with Participating Government Agencies to be given viewing access in due course.

Paperless export document uploads enable digitally signed supporting documents and online assessment, moving toward mandatory electronic submission.
Pilot permits voluntary uploading of digitally signed supporting documents via ICEGATE eSANCHIT for Shipping Bills, allowing post generation upload to obtain an Image Reference Number and link documents by amendment; Customs will view electronic documents during ICES assessment and the facility will be extended to Participating Government Agencies, while exporters must retain original supporting documents for five years and produce them on demand.

IPE notification obligations: timely reporting of director or partner cessations and joinings ensures continued recognition compliance.
IPE recognition is conditional on continued satisfaction of eligibility requirements and prompt notification to the Board when an insolvency professional ceases to be, or joins as, a director or partner. Notifications must be made within seven days using the Annexure format by the authorised signatory from the IPE's registered email; retrospective unreported changes must be submitted forthwith. Failure to comply may invite appropriate action including withdrawal of recognition.

Paperless export processing via eSANCHIT enables electronic upload and linkage of supporting documents, streamlining Customs assessment and LEO issuance.
Pilot introduction of paperless export processing via eSANCHIT enables exporters and customs brokers to upload digitally signed supporting documents on ICEGATE, obtain an Image Reference Number for post filing linkage, and amend Shipping Bills at Service Centres. Customs officers will view electronic documents on ICES during assessment and may request additional online uploads; goods registration, examination recording, and LEO issuance will be processed online. The pilot includes Service Centre uploads and digital signatures on LEO messages, while original supporting documents must be retained for the prescribed retention period.

Removal of refund restriction on accumulated input tax credit for fabrics allows prospective claims but lapses prior accumulated input credits.
Amendment removes refund bar for accumulated Input Tax Credit on listed fabrics prospectively from 1 August 2018 and provides that accumulated ITC on inputs for inward supplies up to 31 July 2018 shall lapse to the extent unutilised after payment of GST for July 2018. Lapsing is confined to input-credit arising from inverted duty structure and excludes ITC on input services, capital goods and zero-rated supplies. The amount to lapse is to be computed using the prescribed refund-calculation formula applied mutatis mutandis; taxable persons must self-assess and report the lapsed amount in their GSTR-3B for August 2018 and retain supporting calculations for verification.

Fertilizer classification: concessional GST applies when supplied for direct use or manufacture of agricultural fertilizers.
Fertilizers falling under Chapter 31 that are supplied for direct agricultural use or for use in manufacturing other complex soil or crop fertilizers attract the concessional GST rate, including where they are used via intermediate products; fertilizers from the same headings that are clearly not intended for fertilizer use attract the higher rate. The distinction is based on end use rather than tariff classification alone.

GST on retained feedstock: refinery liable only on net quantity retained; returns taxable when resupplied.
GST is payable by refineries only on the net quantity of petroleum gases retained by manufacturers for producing petrochemical and chemical products; returned residual quantity is taxable only when supplied by the refinery to another person. This clarification applies mutatis mutandis to similar feedstock retention-and-return supply arrangements and requires net billing on the amount retained, within the context of GST law.

GST classification: rates determined by HSN headings and the product's essential character, distinguishing supplies and job work.
Clarifies GST classification and applicable rates by HSN heading for specified goods and services: fortified toned milk is Nil under HSN 0401; all beet and cane sugar fall under heading 1701 and attract the reduced sugar rate; both plain and modified tamarind kernel powder fall under Chapter 13 at the reduced TKP rate; drinking water supplied for public purposes not in sealed containers is Nil rated. Classification guidance provided for plasma, wipes (by essential character), metallised yarn/kasab, marine engines for fishing vessels, cotton quilts defined by filling, bus body building (supply vs service), and disc brake pads as vehicle parts.

Migration procedure for provisional GST registrants requires application in REG-01 and GSTN mapping to complete registration.
Taxpayers with only a provisional identification number who completed Part A but not Part B of FORM GST REG-26 must submit specified details to the jurisdictional CGST nodal officer and request completion of migration. After GSTN contact, the taxpayer must apply in FORM GST REG-01, receive ARN, new GSTIN and access token, then email new GSTIN, access token, ARN and old GSTIN to GSTN for mapping; GSTN will map the new and old GSTINs and the taxpayer must perform a first-time login on the portal to generate the registration certificate. Such taxpayers shall be deemed registered from 1st July, 2017.

Authentication of trade notifications: DGFT-signed notifications carry Central Government approval via Commerce Minister, clarifying validity.
Notifications published by the DGFT in the Gazette are issued with Central Government approval through the Commerce & Industry Minister under the foreign trade statutory framework and Foreign Trade Policy; the Director General of Foreign Trade signs these Notifications as the authenticating officer on behalf of the President under the Government of India Authentication Rules, 2002 and a Ministry of Commerce order.