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Circulars
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Service Tax - Applicability of Service Tax on ambulance services provided to Government by private service providers under the National Health Mission [NHM] - Circular No.210/2/2018 dated 30.05.2018 Communication thereof
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Public health exemption covers ambulance services to government under the National Health Mission, clarifying service tax treatment.
Provision of ambulance services to State Governments under the National Health Mission by private service providers was clarified as a service provided to Government by way of public health, falling within the exemption under Notification No. 25/2012-Service Tax. The Trade Notice was issued to communicate this clarification to the trade, field formations, officers, assessees, and industry associations.
Amendments to Prevention of Money-laundering (Maintenance of Records) Rules, 2005
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Aadhaar and PAN requirement for client accounts affirmed; securities market continues to require PAN for completion of KYC processes.
The PML amendments require collection of Aadhaar and PAN or Form 60 for client accounts and clarify acceptable OVDs and certified copies for address proof, with an extension of the submission deadline pending final adjudication. SEBI emphasizes that PAN remains mandatory to complete KYC in the securities market and directs exchanges, depositories, mutual funds and other intermediaries to amend rules, monitor compliance through half yearly audits and inspections, and report implementation to SEBI.
Amendment to Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
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Withdrawal of credit ratings requires issuer undertaking and reassignment with press release stating reasons under SEBI rules.
Amendment sets conditions for a CRA to withdraw a rating under Regulation 16(3): continuous rating for the higher of five years or half the instrument's tenure and an undertaking from the issuer that a rating is available. On withdrawal the CRA must assign a rating and issue a press release in the prescribed SEBI format stating the reason(s) for withdrawal, pursuant to powers under Section 11(1) of the SEBI Act and Regulation 20 of the CRA Regulations to protect investors and regulate the securities market.
IGST Refund Simplification of Process - Elimination of Errors
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IGST refund rectification: officer-verified corrections and bank-detail workflow enable expedited refund processing.
Simplification of the IGST refund process permits officer-mediated rectification via the ICES officer interface where exporters declared shipments as without IGST despite payment in GST returns, and allows sanctioning refunds for GSTIN/PAN mismatches on submission of an undertaking from the unit that filed returns. An interim workflow addresses PFMS crediting failures: daily reporting of failed transactions, verification and correction of beneficiary bank details by sanctioning authorities and system managers in ICES (CLK role), and reprocessing by PAO/e-PAO; verified communications must be sent through official ICEGATE email and the procedure complements, not replaces, proper bank detail entry in ICES.
Customs - Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems - certain guidelines
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IGST refund procedure: interim remediation for GSTN to Customs transmission failures enabling conditional refund sanction.
An interim procedure permits sanction of pending IGST refunds where GSTN has not transmitted records to Customs EDI due to mismatches between GSTR 1 and GSTR 3B. If cumulative IGST in GSTR 3B equals or exceeds GSTR 1, Customs will request GSTN transmission and require a Chartered Accountant certificate and GST office copy for refunds. Where GSTR 3B shows short payment, exporters must pay the shortfall, submit proof (and CA certificate for larger amounts), give an undertaking, and await GSTN transmission; cases are subject to post refund GST audit and inter agency verification.
Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips
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GST classification of lending and renewable energy certificates places similar scrips under heading 4907 at the applicable rate.
Priority Sector Lending Certificates, Renewable Energy Certificates and similar scrips are classified under heading 4907 and attract GST at 12%. The residual 18% rate applies only where goods are not covered by a specific GST rate-schedule entry. The earlier residual-rate clarification for Priority Sector Lending Certificates is modified. Duty credit scrips classifiable under heading 4907 attract Nil GST under the applicable exemption entry.
Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips –regarding
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GST classification of certificates: RECs, PSLCs treated as goods; duty-credit scrips exempt under GST law.
Renewable Energy Certificates, Priority Sector Lending Certificates and similar documents are classified as goods under the tariff heading for documents of title and attract the GST rate applicable to that heading; duty credit scrips expressly covered by the exemption notification remain exempt. The residual GST entry applies only when no specific schedule entry governs classification.
Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases -reg.
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IGST refund processing: officer-assisted corrections and a PAN-based GSTIN mismatch remedy streamline export refund claims.
Extension of officer-assisted correction for IGST refund processing is authorised to address SB005 invoice mismatches, requiring exporters to align invoice data with GST filings. A correction facility for SB003 cases is provided where differing GSTINs share the same PAN, conditional on a signed undertaking from both entities that the paying office will not claim refund or benefit; DG Systems has developed a correction utility to process such refunds.
Circular on Go Green Initiative in Mutual Funds
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Digital disclosure and delivery of NAVs and portfolio statements mandated, with online hosting and opt-in physical reporting options.
Mutual Funds/AMCs must adopt digital-first disclosures: publish NAVs and portfolio statements (with ISINs) on their and AMFI's websites, offer SMS/email delivery to registered unitholders, explain sale/repurchase price methodology with a numerical example, host scheme-wise annual reports online and email them to registered addresses, implement opt-in procedures for physical annual reports for unregistered email holders with a follow-up communication, advertise hosting and request modes in national newspapers, provide physical copies free on request, and update unitholder contact details; compliance required within thirty days except for the second opt-in timing rule.
Total Expense Ratio for Mutual Funds
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Total Expense Ratio disclosure tightened: lower allowable additional charges and mandatory daily scheme-wise TER publication.
Amendment reduces the permissible additional expense referenced in prior circulars to a lower specified rate, and requires AMCs to disclose scheme-wise, date-wise TER daily on their website and the industry website in a downloadable spreadsheet showing base TER (excluding specified additional expenses and GST), each additional expense component and GST. Any increase in base TER must be communicated to investors by email or SMS and posted on the TER section of the website at least three working days before effecting the change; decreases due to regulatory requirements need not be preceded by notice.
Guidelines for Preferential Issue of Units by Infrastructure Investment Trusts (InvITs)
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Preferential issue of InvIT units: rules for eligibility, placement document disclosures, pricing floor, allotment and transfer limits.
Guidelines require a listed InvIT to obtain unitholder approval, comply with listing and minimum public unitholding requirements, and avoid another preferential issue within six months; allotments must be completed within a prescribed short period, units issued in dematerialized form and of the same class as listed units, offered to a minimum of two institutional investors, and priced at not less than the average recent market price on the principal exchange. The preferential issue must be effected through a serially numbered placement document with specific market, valuation, financial and disclosure requirements and accompanied by a compliance certificate when seeking exchange approval.
Drawback payments held up due to PFMS invalidation
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Drawback payments held up due to invalidated PFMS bank validations; exporters must update bank accounts and IFSC with bank and EDI.
Drawback refunds are withheld where exporters' bank accounts or IFSC details are invalidated in PFMS; exporters must validate bank accounts in PFMS and update bank/IFSC with their bank and the EDI to ensure sanctioned drawback refunds are credited.
Revised instruction for stuffing and sealing of reefer containers
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Supervised factory stuffing for temperature-sensitive export goods preserves chain of custody and limits port examinations.
Supervised factory stuffing and sealing is permitted for reefer containers with temperature-sensitive export goods where port examination facilities are not sterile; exporters must apply to the jurisdictional Commissioner, give 24 hours' notice, use RFID e-seals, and have Customs officers supervise examination, stuffing and sealing. Permissioned exporter and container details are to be communicated to RMCC and the port; RMCC shall avoid selection of such containers for port examination and reconcile records monthly, with discrepancies prompting a review of permission.
Regarding Transfer Order (STO)
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Administrative transfer and posting of state tax officers issued with immediate effect across multiple offices and formations.
State tax officers were transferred and posted in Uttarakhand State Tax Department under the provisions of the Uttarakhand Lok Sevaks Annual Transfer Act, 2017, with immediate effect. The order lists the officers, their existing postings, and their new offices, including postings in mobile units, STF, tax review formations, appeal units, executive offices, and headquarters, and specifies the relevant section against each posting entry. Officers are directed to join their new places of posting forthwith.
Clarifications on refund related issues.
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Refund eligibility for GST inputs clarified: filing and bonding rules, export validation, and compensation cess treatment detailed.
Input Service Distributors, composition taxpayers and non-resident taxable persons may claim refunds without filing FORM GSTR-1 or FORM GSTR-3B, using instead FORM GSTR-6, GSTR-4 or GSTR-5 respectively. For specified tax periods, exporters who misreported zero-rated supplies in GSTR-3B may claim integrated tax/cess refunds up to the aggregate shown in columns 3.1(a), 3.1(b) and 3.1(c). Unutilized compensation cess credit on inputs used in non-cessable final products is refundable for zero-rated supplies under bond or LUT, but cess credit cannot be used to pay integrated tax when supplies are made on payment. Exports of exempted or non-GST goods do not require bond or LUT for refunds. Rule 96(10) restriction applies only where exporters directly receive goods from suppliers availing specified notifications.
Doing away with the requirement of DSC for online/digital payment through e-MPS
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Digital signature requirement removed for e MPS payments, allowing PAN-based login for online miscellaneous payments by exporters and importers.
Requirement of a digital signature certificate (DSC) for making miscellaneous online payments through the e MPS platform has been removed; users may now authenticate and pay using PAN-based login credentials. Regional offices and trade users should implement PAN login for e MPS transactions in place of DSC authentication and follow the updated e MPS help documentation for the revised payment procedure.
Clarification on refund related issues
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GST refund clarification directs taxpayers to follow CBIC circular guidance and inform trade associations for compliance.
Notice directs taxpayers and trade bodies to follow the guidance in CBIC Circular No.45/19/2018 GST regarding GST refund procedures available on the CBIC website, and instructs Trade Associations, Chambers of Commerce and GST assesses to communicate the Circular's requirements to their members while noting a Hindi version will be issued.
Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances
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Interception of conveyances: procedures for inspection, detention, release and confiscation of goods in movement explained.
Procedure for the interception of conveyances carrying goods in movement and the attendant powers concerning detention, release and confiscation are notified to trade via a departmental notice which refers recipients to a central Circular for detailed procedures; trade associations and GST assessees are directed to disseminate and implement the prescribed inspection and enforcement framework.
Clarification on refund related issues
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Refund clarification under GST: trade advised to follow policy circular guidance on refund procedures and compliance.
Clarification on refund related issues under GST: the notice references a policy circular providing procedural guidance and clarifications on refund claims as a continuation of earlier trade notices, and directs that the circular's contents be communicated to trade association members and the public to ensure awareness and compliance with GST refund procedures.
Change in jurisdictional authority to handle work relating to Brand Rate fixation
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Brand rate fixation for exports moved to Chennai VII Customs; application and verification procedures established under BRFC.
Brand rate fixation responsibility for exporters in the Chennai GST & Central Excise Zone is transferred to designated Customs formations, with Chennai VII (Air Cargo) as the jurisdictional commissionerate for exports from Chennai VII (INMAA4). A Brand Rate Fixation Cell (BRFC) headed by a Deputy/Assistant Commissioner will accept applications under section 75 of the Customs Act, verify documents (locally or by referral where factories lie outside the Chennai Customs Zone), process applications on receipt of verification reports, and the competent authority will take the final decision.

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Clarification on refund related issues

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Refund clarification under GST: trade advised to follow policy circular guidance on refund procedures and compliance.
Clarification on refund related issues under GST: the notice references a policy circular providing procedural guidance and clarifications on refund ... Summary

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Acts Income Tax