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Circulars
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Nature of Supply of Priority Sector Lending Certificates (PSLC).
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Inter-state supply determination: IGST applies to trading of PSLCs on the RBI e-Kuber portal, overriding prior CGST/SGST payments.
The supply of PSLCs between banks is treated as a supply of goods in the course of inter-State trade or commerce; accordingly IGST shall be payable on PSLC trades conducted on the RBI e-Kuber portal for both the earlier forward-charge period and the later reverse-charge period. Banks that have already paid CGST/SGST or CGST/UTGST for such supplies are not required to pay IGST for those payments.
Clarification on various doubts related to treatment of sales promotion schemes under GST.
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Tax treatment of sales promotion schemes clarifies supply characterization and Input Tax Credit consequences for promotional offers.
Free samples and gifts supplied without consideration are not treated as supply under GST except where Schedule I applies; Input Tax Credit is disallowed for inputs, input services and capital goods used for such distributions unless the activity qualifies as a supply. Buy one get one offers are treated as multiple goods supplied for a single price with tax determined by composite or mixed supply rules and ITC available to the supplier. Known discounts established at or before supply reduce taxable value if valuation conditions are met; secondary post supply discounts do not reduce taxable value under those conditions, though credit notes may be issued commercially.
Clarification regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018.
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Inter State supply treatment: suppliers deemed compliant if central and state tax paid equals integrated tax for warehoused goods.
Supply of goods deposited in customs bonded warehouses during July 2017-March 2018 was inter State in character; owing to portal limitations taxpayers reported and paid central tax and state tax instead of integrated tax. As a one time exception, suppliers who paid central and state tax for such supplies during that period are deemed to have complied with tax-payment requirements provided the combined central and state tax equals the integrated tax due.
Changes in Circulars issued earlier under the HPGST Act, 2017.
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Job work provisions clarified: principals must account, invoce and declare supplies when statutory time limits for return lapse.
Amendments align prior HPGST circulars with the GST Amendment Acts: principals may send inputs or capital goods to job workers without tax and must keep accounts; if goods are not returned or supplied within the time specified under section 143 the sending is deemed a supply by the principal on the date of initial dispatch, requiring issuance of an invoice and return declaration with interest payable; job workers must register when aggregate all India turnover exceeds the statutory threshold or when making inter State supplies subject to exemption; valuation of job work services follows section 15 and excludes principal provided goods only if their value is already included in the job worker's price; detention procedures now allow fourteen days for payment before confiscation action; registration suspension during cancellation proceedings relieves routine compliance while final return filing remains required.
Clarification on refund related issues.
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Electronic submission of refund claims: portal uploads replace physical filing and ARN marks the filing date for processing.
Mandates electronic filing of FORM GST RFD-01A with all supporting documents uploaded on the common portal, with ARN generation treated as the filing date under rule 90(2) and automatic electronic transfer of the claim to the jurisdictional proper officer for acknowledgement or deficiency processing; mis assigned claims must be reassigned electronically within three days. Clarifies that Net ITC for inverted duty refunds includes ITC on all inputs availed in the relevant period regardless of tax rate, that reversed ITC is not eligible for refund unless re availed and accounted for, and that ITC availed in the electronic credit ledger via FORM GSTR-3B for the relevant period must be included in refund calculations. Also addresses recomputation and eligibility rules for compensation cess refunds and excludes input services and capital goods from inverted duty ITC refunds.
Clarification on certain issues related to refund.
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Refund procedure: rectified GST refund applications accepted under original ARN; re-credit of ITC not required.
When a deficiency memo in FORM GST RFD-03 is issued, taxpayers must file the rectified refund application under the original ARN because the portal does not allow a fresh filing for the same period; re-credit of Input Tax Credit to the electronic credit ledger using FORM GST RFD-01B is not required at present and rectified applications under the earlier ARN will be accepted by jurisdictional authorities. Separately, exporters receiving capital goods under the EPCG Scheme are eligible to claim refund of IGST on exports despite restrictions applicable to certain importers under amended notifications; earlier circulars on these issues are superseded.
System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B.
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GST return reconciliation requires matching GSTR-1/2 with GSTR-3B and payment or adjustment of tax and ITC.
System-based reconciliation requires filing and correction of outward and inward statements so that FORM GSTR-2A auto-populates recipient data and the portal drafts FORM GSTR-3. The portal recalculates output tax and eligible ITC; where FORM GSTR-3 shows higher tax payable than paid in FORM GSTR-3B the taxpayer must pay the shortfall by debiting electronic cash or credit ledger with interest. If FORM GSTR-2 supports additional ITC, it is credited on submission of FORM GSTR-3 and may be used to meet increased tax liability. Unpaid GSTR-3B submissions remain subject to reconciliation and interest liabilities.
Clarifications of certain issues under GST.
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SEZ supply treated as inter-state; zero-rated status and refund only if supplies received for authorised SEZ operations.
Services of short term accommodation, conferencing, banqueting etc. to a SEZ developer or SEZ unit are treated as inter State supplies. Supplies to a SEZ developer or unit are zero rated and refund of unutilised input tax credit or integrated tax is available only if received for authorised operations with endorsement by the specified officer of the Zone. Fabric processors performing job work services are eligible for refund of unutilised input tax credit under the inverted duty structure since their output is a service.
Clarifications on exports related refund issues.
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Zero rated supplies: refunds of unutilized GST credit allowed with procedural condonation and specified documentation requirements.
Clarifies export-related refund eligibility and procedure under HPGST: drawback limited to basic customs duty does not bar refund of unutilized GST credit; delayed LUT filing may be condoned where exports are established; Table 9 amendments in GSTR-1 and GSTR-3B rectifications must be considered in refund processing; lower of GST invoice value and shipping bill value to be allowed for refund; only one deficiency memo per refund application with requirement to file a fresh application; transitional credits are excluded from 'Net ITC' for refund calculations; refunds under existing laws to follow prior-law procedures.
Due date for generation of FORM GSTR-2A and FORM GSTR-1A in accordance with the extension of due date for filing FORM GSTR-1 and GSTR-2 respectively.
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Generation of GSTR 2A and GSTR 1A extended to align availability with the revised GSTR 1 and GSTR 2 filing timelines.
The circular clarifies that, pursuant to the Act and Rules, details filed by suppliers in FORM GSTR-1 are to be made available to recipients in FORM GSTR-2A after the extended filing due date; recipients shall verify and amend those details and furnish FORM GSTR-2 by the extended deadline. For July 2017, FORM GSTR-2A details were available from 11 October 2017 and FORM GSTR-2 was to be furnished not later than 30 November 2017. FORM GSTR-1A reflecting recipient amendments will be available to suppliers from 1 December to 6 December 2017. The circular is effective from 6 November 2017.
Clarification on issues wherein the goods are moved within the State or from the State of registration to another State for supply on approval basis.
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Goods moved on approval basis may travel on delivery challan and attract integrated tax when supplied inter state.
Goods carried for approval may be transported within the State or to another State on a Delivery Challan, with an e way bill where applicable; the tax invoice may be issued upon delivery when the supply is accepted. Such movements resulting in supply in a different State are treated as inter state supplies and attract Integrated Tax. Suppliers may carry invoice books to issue invoices once supply is fructified. The clarification applies to similar goods and issues and is effective from the stated date.
Database for Distinctive Number (DN) of Shares - Action against non-compliant companies
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Distinctive Number reconciliation: freeze on promoters' and directors' securities until DN database compliance is achieved.
Depositories must, in response to issuer/RTA non compliance with the Distinctive Number reconciliation directive, freeze all securities held by promoters and directors at the beneficiary owner account level, prohibit transfers including sale and pledge, and freeze related corporate benefits until the company updates DN information and reconciles records; exchanges and depositories shall publish names of non compliant companies and coordinate implementation, and exchanges must ensure DN compliance and updated promoter/director identifiers before lifting trading suspensions.
Corrigendum to Circular No. 15/2019-GST (State).
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Uniformity in GST circular implementation required; state formations directed to adopt central corrigendum and follow clarifications.
State field formations are instructed to adopt and implement the clarification contained in the Corrigendum to Circular No. 97/16/2019-GST issued by the GST Policy Wing. A corrigendum to State Circular No. 15/2019-GST is issued to ensure uniform application of GST provisions across Tripura, under the administrative powers of the State GST law, and the central corrigendum is annexed for compliance by state tax officers.
Guidance Regarding Issuance of “End Use Certificate” for Imported Goods by State Tax Authorities Pending GST Council Directions
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End Use Certificate guidance for imported goods awaits competent directions under the customs framework.
Guidance was issued on the question of End Use Certificate for imported raw materials, consumables and other goods sought by units registered under the State Tax Administration. The existing arrangement for issuance of such certificates lies under the Customs Tariff Act, 1975, and the referenced customs notification recognizes certificates issued by State Tax Administration officers for that purpose. Officers were advised to await detailed directions from the competent authority before issuing End Use Certificates in respect of imported goods.
Rationalization of imposition of fines for false/incorrect reporting of margins or non-reporting of margins by Trading Member/Clearing Member in all segments
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Margin reporting penalties: incorrect or non-reporting fines tied to materiality, with suspension and proportional financial sanctions.
Recognised stock exchanges and clearing corporations must jointly devise a uniform fine framework for Trading Members and Clearing Members for false, incorrect or non reporting of client margins, applying the proportionality principle based on materiality (including repeated instances). Sanctions may include financial fines measured against the unreported/incorrect amount and/or suspension of trading. Relevant prior circular clauses are rescinded to the extent covered by these guidelines, and exchanges/clearing corporations must notify members, amend rules and report implementation to SEBI.
Corrigendum to Circular No. 04/2019-20-GST dated 08/04/2019, issued vide F. No. CCT/26-4/2017-2018/C, as amended vide Corrigendum dated 15.07.2019- reg.
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Composition levy election deadline is extended, allowing eligible registered persons additional time to complete required filings.
Eligible registered persons seeking the 3% central-tax composition option may file Form GST CMP-02, using the specified supplier category, up to 30 September 2019 rather than 31 July 2019. The revised timetable retains the obligation to furnish Form GST ITC-03 under applicable composition-rule requirements for persons opting for this composition treatment.
Clarifications regarding Refunds of IGST paid on import in case of specialized agencies
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Refund of IGST on imports enabled; customs to process refunds for specialized agencies under prescribed certification and parity mechanism.
Customs field formations are to provide refund of IGST paid on import of goods by specialized agencies notified under the refund provisions, using the refund framework under Section 55 of the CGST Act and the notification-based certification requirement that goods and services are used for official purposes, consistent with the parity principle in the Customs Tariff Act.
Issues related to GST on monthly subscription / contribution charged by a Residential Welfare Association from it's members.
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Residential welfare association maintenance charges: GST exempt up to Rs.7500/month per member; entire amount taxable if exceeded.
Supply of services or goods by an RWA to its own members for common use is exempt from GST where reimbursement or contribution does not exceed Rs. 7,500 per month per member; the exemption applies per residential apartment. An RWA with annual aggregate turnover of Rs. 20 lakh or more must register and pay GST if monthly charges per member exceed Rs. 7,500. If charges exceed the ceiling, the entire amount is taxable. RWAs may claim input tax credit on inputs, capital goods and input services used for supplies.
Exim Bank's Government of India supported Line of Credit of USD 38 million to the Government of the Republic of Mozambique
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Line of Credit support enables export finance to Mozambique subject to sourcing, reporting and FEMA compliance obligations.
Line of Credit support authorises Exim Bank to finance specified water-supply projects in Mozambique by funding exports of eligible goods and services from India, subject to the Foreign Trade Policy and LoC terms. Contracts must source at least 75 per cent of value from India, with up to 25 per cent procured externally. Shipments must be declared in the Export Declaration Form and AD Category-I banks must observe FEMA directions while advising exporters to obtain full LoC details from Exim Bank.
Guidelines for clearance of unclaimed and abandoned goods kept in SEZs/ FTWZs
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Custody under Customs Act enables SEZ/FTWZ units to dispose unclaimed goods through prescribed e auction procedures and regulatory clearances.
Units in SEZs/FTWZs are deemed custodians under Section 48 of the Customs Act and must follow a prescribed disposal procedure for unclaimed or abandoned goods: prepare and share detailed cargo lists with the Specified Officer, obtain SAO/Group no objections and any external regulatory clearances or sample testing, issue notices to importers, value consignments via approved valuers to set reserve prices, conduct e auctions under specified bid acceptance and multi round rules, file consolidated buyer wise bill(s) of entry for successful bidders, and ensure duty assessment, release of goods, and disbursement of sale proceeds in accordance with statutory provisions.

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Amendment in Para 2.54 of the Handbook of Procedures, 2015-2020

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Installation deadline extension for radiation portal monitors and container scanners; non-compliant ports to lose recognition for scrap imports.
The Director General of Foreign Trade amended sub para (v)(ii) of Para 2.54 to extend the deadline for installation and operationalisation of Radiation ... Summary

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Acts Income Tax