Non supply of goods sent abroad for exhibition is not zero rated; invoicing and refunds arise only on sale or deemed supply.
Removal of goods for exhibition or consignment abroad is not a supply absent consideration or Schedule I applicability, and therefore not a zero-rated supply. Such removals qualify as sale on approval and must be accompanied by a delivery challan; no bond or LUT is required. A tax invoice is to be issued when goods are sold abroad or, if neither sold nor returned within the stipulated period, on the date the supply is deemed to occur. Refund of input tax credit for zero-rated supply is available only after the invoice is issued in accordance with the rules.

Intermediary status determines whether an ITeS provider qualifies as export of services under GST criteria.
The circular clarifies that an intermediary arranges or facilitates supplies but excludes persons supplying services on their own account; suppliers of ITeS who provide services on their own account are not intermediaries, whereas those who only facilitate a client's supplies are intermediaries. When both types of services are provided, intermediary status is fact specific and depends on the principal supply. A supplier who is not an intermediary may qualify as an export of services only if supplier and recipient locations, place of supply, convertible foreign exchange payment, and distinct establishment criteria are satisfied.

Post sale discount treatment under GST: conditional discounts are consideration for services and attract GST and ITC consequences.
Treatment of post sales discounts under GST turns on their nature and any dealer obligations. Discounts without further dealer action relate to the original supply and may be excluded from the supplier's value if section 15(3) conditions are met. Discounts conditional on dealer promotional activity are consideration for services supplied by the dealer and attract GST with corresponding ITC for the supplier. Discounts paid to enable reduced customer prices must be added to the dealer's value of supply; registered customers can claim ITC only to the extent of tax paid. Where discounts cannot be excluded, suppliers may issue financial/commercial credit notes but cannot reduce original tax liability; dealers need not reverse ITC if they adjust payment per the credit note and original tax charged.

Incorrect taxpayer mapping on GST portal permits the authority receiving the electronic transfer to process refund claims and request portal correction.
If the common portal has electronically transferred a refund application to an incorrect jurisdiction because of wrong taxpayer mapping and the portal lacks re-assignment capability, the receiving tax authority may process the refund claim without waiting for correction; once processing is complete the authority should inform the portal of the incorrect mapping and request an update so that subsequent applications route to the correct jurisdiction.

Place of supply rules govern port cargo handling and processing of temporarily imported goods, determined under IGST provisions.
Clarification states that cargo-handling and related port activities are ancillary and not services connected to immovable property, so their place of supply is determined under the IGST provisions applicable to services between supplier and recipient based on contractual terms. It also states that cutting and polishing of unpolished diamonds temporarily imported for processing and exported without being put to use fall within the temporary import exception, and their place of supply is determined under the IGST provision for services on goods temporarily imported for treatment or process.

GST treatment of sales promotion schemes clarifies taxability, valuation and input tax credit consequences.
Clarification addresses GST taxability, valuation and availability of Input Tax Credit for sales promotion schemes: free samples and gifts without consideration are not supplies except where Schedule I applies and therefore generally preclude ITC; "Buy One, Get One" offers are treated as combined supplies with tax determined by composite versus mixed supply classification and allow ITC for related inputs; invoice-time discounts that meet valuation conditions can be excluded from taxable value and permit ITC claims, whereas secondary post-supply discounts issued by credit note cannot be excluded under valuation rules and do not alter supplier ITC entitlement.

Refund eligibility for exporters and specified taxpayers clarified; prescribed returns suffice and misclassified zero-rated supplies accepted under conditions.
An ISD, composition taxpayer and non-resident taxable person need not file Form GSTR-1 or Form GSTR-3B to claim electronic ledger refunds; their respective returns (GSTR-6, GSTR-4, GSTR-5) suffice. Refunds for misdeclared zero-rated supplies/SEZ supplies will be permitted for the specified tax periods provided claimed integrated tax/cess does not exceed the aggregate amount reported across the relevant GSTR-3B columns. Refund of unutilized compensation cess credit on cessable inputs used in non-cessable final products is allowed for zero-rated supplies under bond or LUT, subject to restrictions on utilizing cess credit for IGST payment.

Zero rated supply treatment: goods sent abroad for exhibition are not zero rated until sold or deemed supplied after the prescribed period.
The circular clarifies that sending or taking specified goods out of India for exhibition or consignment does not constitute a supply at the time of removal because no consideration is received, and therefore is not a zero rated supply. Such movements require a delivery challan and maintenance of prescribed records; bond or LUT is not required. Supply is triggered and a tax invoice is required either on actual sale abroad or upon deemed supply after the stipulated statutory period; refund of input tax credit for zero rated supply may be claimed only after invoicing and if otherwise eligible under statute and rules.

Intermediary classification determines export of ITeS services under GST, affecting tax treatment for suppliers to overseas clients.
Clarification explains that a supplier who provides ITeS on his own account is not an intermediary, whereas a supplier who only arranges or facilitates a client's supply by providing support services will be an intermediary. When both ITeS and facilitation services are supplied together, intermediary status depends on which service is the principal supply. Suppliers who are not intermediaries may qualify as export of services if all statutory conditions-supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange, and non-distinct person relationship-are satisfied.

Post-sales discounts determine GST treatment: unconditional discounts adjust original supply value, conditional discounts trigger service taxation.
Post-sales discounts are governed by clause (b) of sub-section (3) of section 15 and must be characterised by their true nature: unconditional discounts relate to the original supply and may be excluded from the supplier's value of supply if sub-section (3) conditions are met; discounts conditional on dealer promotional activities constitute consideration for a separate supply of services by the dealer, on which the dealer must charge GST and the supplier may claim input tax credit. Discounts enabling dealers to offer reduced prices to customers must be included in the dealer's value of supply, and receipt of financial/commercial credit notes does not compel the dealer to reverse ITC where the dealer pays the reduced net value and the supplier had charged original tax.

Refund application processing may proceed by the receiving tax authority despite incorrect portal mapping; inform portal to correct assignment.
Where reassignment of a refund application on the common portal is not possible because portal mapping differs from administrative assignment, the tax authority to which the application has been electronically transferred must process the refund claim without delay and thereafter inform the common portal of the incorrect mapping with a request to update it so future applications are routed to the correct jurisdictional authority.

Place of supply rules: port cargo handling services are ancillary and determined under IGST provisions per contract.
Place of supply for port cargo handling activities (arrival/haulage/siding/unloading/movement/staking/shipment) is determined under the IGST place of supply provisions depending on the contract, as these services are ancillary and not immovable property related. Services on goods temporarily imported for cutting, polishing or similar treatment and exported without being put to any other use have their place of supply determined under the IGST provision for services in respect of temporarily imported goods.

GST on penal interest: taxable when part of a goods supply but exempt if genuine interest charged by a lender.
The circular clarifies that penal interest levied on delayed EMI payments is taxable when it forms part of the value of a supply of goods, but where penal interest is charged by a lender as genuine consideration for extending a loan it qualifies as interest and is exempt; service fees or other charges by the lender do not qualify as exempt interest and remain taxable.

GST exemption on upfront amounts for long-term leases permitted if payable in instalments but determined upfront.
GST exemption applies to the upfront amount charged for long term leases (thirty years or more) of industrial plots or plots for financial infrastructure under Entry No.41 of Notification 12/2017 - State Tax (R). The exemption is admissible whether that upfront amount is paid in one or more instalments, provided the amount is determined upfront. The clarification is effective from 30.04.2019.

Revocation of cancelled GST registration requires prior filing of due returns and thirty day compliance window after revocation.
Clarification of procedure for revocation of cancellation of GST registration under RoD No. 05/2019 and amendments to rule 23(1): where cancellation resulted from non furnishing of returns, returns due up to the date of cancellation must be furnished and amounts paid before filing for revocation; after revocation, returns for the period from cancellation order date to revocation must be filed within thirty days of the revocation order. For retrospective cancellations, an enabling proviso allows filing for revocation provided returns for the period from effective cancellation date to revocation are furnished within thirty days of revocation.

Utilization of input tax credit: integrated tax credit must be exhausted before central or state credits, but may then be apportioned flexibly.
Integrated tax credit must be fully exhausted before any central or state/union territory tax credit is used; thereafter integrated credit may be apportioned in any order or proportion to discharge central or state/union territory liabilities, preventing accumulation in one ledger and permitting flexible cross-utilisation subject to the exhaustion mandate.

Composition scheme option clarified: file prescribed forms to opt; applies to all PAN-linked places of business.
Registered persons eligible for the reduced composition-like levy may opt by filing the prescribed intimation under the Himachal Pradesh GST Rules in the designated form selecting the appropriate supplier category and must furnish the specified statement of input tax credit reconciliation; new applicants may indicate the option at registration; the option applies to all places of business linked to the same Permanent Account Number and is effective from the start of the financial year or from the date of registration for new registrations.

Transfer of input tax credit permitted on death of sole proprietor; transferee files ITC-02 and assumes related liabilities.
Unutilized input tax credit may be transferred when a sole proprietor dies and the business continues under a transferee/successor. The transferee must register with reason "death of the proprietor," the transferor may cancel registration linking the transferee's GSTIN, and FORM GST ITC-02 must be filed electronically by the transferee for the registration being cancelled prior to filing the cancellation; upon acceptance the credit is credited to the transferee's electronic credit ledger. Transferor and transferee are jointly and severally liable for tax, interest or penalty due from the transferor. Effective date: 28.03.2019.

Registration verification: fresh applications may be rejected if cancelled registrations remain unrevoked and disqualifying conditions persist.
Proper officers must scrutinise fresh registration applications against common-portal records for earlier or cancelled registrations on the same PAN, verify FORM GST REG-01 entries for concealed material information, and cross-check proprietor/partner/director details. If an earlier registration was cancelled for statutory non-compliance and the applicant has not sought revocation while disqualifying conditions persist, that omission constitutes a deficiency and may justify rejection of the new application where explanations are unsatisfactory.

Refund of accumulated input tax credit: file under "any other" and debit admissible amount via FORM GST DRC-03 before refund.
Where reversal of lapsed input tax credit (ITC) for the relevant period has been made, claimants should, as a one time measure, file the refund application in FORM GST RFD-01A under the category "any other" with required declarations; the proper officer will calculate the admissible refund per refund calculation rules, request the taxpayer to debit the admissible amount from the electronic credit ledger through FORM GST DRC-03, and upon receipt of proof, issue FORM GST RFD-06 and FORM GST RFD-05. Subsequent period claims must use the standard inverted-structure category.