Transfer of input tax credit allowed to successor on death of sole proprietor; successor must file ITC-02 and assume liabilities.
Where a sole proprietor dies and the business continues, unutilized input tax credit may be transferred to the transferee/successor. The transferee/successor must register citing death of the proprietor, file FORM GST ITC-02 electronically for the registration being cancelled on account of death before filing the cancellation application, and upon acceptance the specified credit will be credited to the transferee's electronic credit ledger. The transferor and transferee/successor are jointly and severally liable for tax, interest and penalties due from the transferor.

Verification of GST registrations mandated: app-based field visits and prioritized inspections for newly registered taxpayers to record credentials.
Mandated physical post registration verification requires officers to visit business premises, verify uploaded documents, record geo coordinates, and upload field visit reports via the GST Pro module or mobile app; priority targets include registrants of sensitive commodities and those with atypical e way bill activity, with monthly reporting in Annexure II and supervisory review by DGSTOs.

Aadhaar-PAN linkage requirement now mandatory for filing income tax returns; exemptions allow limited exceptions for prior filings.
Aadhaar-PAN linkage is mandated as a precondition for filing income tax returns: every person eligible for Aadhaar must quote the Aadhaar number when filing returns, and returns filed electronically or manually without quoting Aadhaar will not be accepted unless an exemption applies. Prior returns filed without Aadhaar pursuant to interim judicial directions or temporary online functionality will be processed without adverse consequence for non-quotation.

Online transmission of DES and EPCG licences enables direct DGFT-Customs message exchange and electronic licence validation for trade.
Online transmission ties DGFT and Customs via an Electronic Message Exchange System for DES and EPCG licences issued on or after 1 April 2009: DGFT transmits file-number and licence messages to ICEGATE, Customs validates and makes them available at the port of registration, and the DGFT-issued file/licence number functions as the Customs Registration Number. Exporters must quote the DGFT file or licence number on export documents and produce hard-copy licences for bond/LUT/BG formalities. Customs transmits Bills of Entry and Shipping Bills to DGFT for EODC issuance enabling release of bonds/LUTs and BGs; licence amendments follow upon Customs' usage log print and DGFT's amendment message.

System-based MEIS approval for SEZ shipping bills enables electronic linking to e-BRCs and automatic certificate dispatch.
Online system-based approval for MEIS applications in respect of SEZ shipping bills enables exporters to electronically attach SEZ shipping bills and link them to e-BRCs; the system automatically approves eligible applications for HS codes not in the negative list, and SEZ Regional Authorities must dispatch or hand over approved certificates within one working day as per the applicant's online choice.

Electronic courier export clearance enables CSB-V processing, risk-based examination, manifest generation and controlled shipment amendments through ECCS.
ECCS introduces phased electronic clearance of CSB-V exports of non-document consignments at the Courier Terminal, with Risk Management System functionality. Authorised couriers electronically file CSB-V and pre-export manifests, while custodians record arrival and shipment details. All consignments undergo X-ray screening, and risk-selected or suspicious goods undergo physical examination before Let Export Order. ECCS automatically generates flight-wise manifests after clearance and supports approved flight amendments, query responses, detention processing and eligible back-to-town requests. Pilot deployment applies to selected flights, while remaining shipments initially continue through manual clearance.

Third-party export proceeds counting: only actual payments received through normal banking channels count towards EPCG export obligations.
The amendment to Para 5.10(c) applies prospectively: for third party exports on or after the amendment effective date, only actual payments realised through the normal banking channel from the third party exporter to the Authorisation Holder will be counted towards fulfilment of EPCG export obligations; third party exports before that date are governed by pre amendment provisions, allowing counting of the full realised value of the shipping bill subject to single counting and maintenance of Average Export Obligation.

Input tax credit apportionment by taxable and exempt construction area under Schedule II affects treatment of zero rated supplies.
For services under clause (b) of paragraph 5 of Schedule II, input tax credit attributable to taxable supplies, including zero rated and exempt supplies, shall be determined on the basis of the area of the complex, building, civil structure or part thereof that is taxable and the area that is exempt.

Inter state supply: IGST applies to trading of Priority Sector Lending Certificates, with CGST/SGST payments preserved.
PSLCs traded between banks on the RBI e Kuber portal are treated as supplies of goods in the course of inter State trade, making IGST payable for the relevant periods; banks that have already paid CGST/SGST for such transactions need not pay IGST for those payments.

Registration verification: new applications may be rejected when earlier cancellation conditions persist and revocation has not been sought
Proper officers must scrutinise fresh registration applications on the same PAN by comparing present application details with earlier registrations via the common portal; failure to apply for revocation of cancellation, when the conditions for cancellation under the OGST Act persist, is a deficiency and may justify rejection of the fresh registration under rule 9 of the OGST Rules if satisfactory explanation or documents are not furnished.

Transfer of input tax credit on death of a sole proprietor allows the successor to claim unutilized credit subject to prescribed filings.
The circular confirms that transfer of input tax credit includes transfers due to death of a sole proprietor and that a transferee or successor continuing the business may receive unutilized credit from the deceased proprietor's electronic credit ledger. The transferee must register citing death of proprietor, file FORM GST ITC-02 before applying for cancellation of the deceased's registration, and upon acceptance the specified credit will be credited to the transferee's ledger. The transferee/successor is jointly and severally liable for any tax, interest or penalty due from the transferor.

Tax treatment of sales promotion schemes clarifies supply classification and Input Tax Credit consequences under GST.
Clarification explains GST taxability, valuation and availability of Input Tax Credit for sales promotion schemes: free samples and gifts without consideration are not supplies (except under Schedule I) and attract no ITC for related inputs unless they qualify as supply; buy-one-get-one offers are treated as multiple supplies with tax determined by composite/mixed supply rules and ITC available for related inputs; invoice-discount and pre-established volume discounts can reduce taxable value if statutory conditions are met, while secondary post-supply discounts issued by credit note do not reduce value unless statutory conditions apply.

Zero-rated SEZ supplies require authorised-operations endorsement, while fabric job workers may claim inverted-duty input tax credit refunds.
Supplies of short-term accommodation, conferencing and banqueting to SEZ developers or SEZ units are inter-State supplies because the specific SEZ supply rule prevails over the general place-of-supply rule. Zero-rated treatment and refund for supplies to SEZs require use for authorised operations and endorsement by the specified Zone officer. Suppliers of goods require confirmation of full admission into the SEZ, while suppliers of services require endorsed evidence of receipt. Fabric processors supplying job work services may obtain inverted-duty-structure refunds of unutilised input tax credit.

GST treatment of free-of-cost moulds excludes them from supply value unless contractual obligations require cost amortisation.
Free-of-cost OEM-owned moulds and dies supplied to a component manufacturer where parties are neither related nor distinct are not a supply and do not require reversal of input tax credit when provided in the course or furtherance of business. Their value is excluded from the component supply unless the contract requires components to be made using moulds or dies of the component manufacturer; in that event, amortised cost is included and credit reversal is required.

GST refund eligibility is clarified for specialised taxpayers, zero-rated exports, compensation cess credits, and restricted procurement arrangements.
Input Service Distributors, composition taxpayers, and non-resident taxable persons may claim specified electronic ledger refunds using their respective prescribed returns instead of FORM GSTR-1 and FORM GSTR-3B. Compensation cess credit on inputs may be refunded for zero-rated supplies under bond or Letter of Undertaking where the final product is not subject to cess, but cannot be used to pay integrated tax or refunded where export is made on payment of integrated tax. Bond or Letter of Undertaking is not required for exports of exempt or non-GST goods without integrated tax payment.

Tenancy rights transfers for premium constitute taxable service, while residential use grants remain exempt from GST.
Transfer of tenancy rights for tenancy premium constitutes a taxable supply of services, being a form of lease or renting of property. Stamp duty and registration charges on the transfer do not exclude it from GST, and the transfer is not treated as a sale of land or building. Grant of tenancy rights in a residential dwelling for use as a residence is exempt, whether consideration is premium, periodic rent, or both. Surrender of tenancy rights by an outgoing tenant for a share of the tenancy premium remains taxable.

Transitional input tax credit recovery treats inadmissible carried-forward credits and legacy arrears as State tax liabilities.
Legacy tax arrears and inadmissible input tax credit arising under the pre-GST regime are recoverable as arrears of tax under the Tamil Nadu GST framework where unrecovered under the existing law. Arrears relating to legacy taxes, wrongly availed input tax credit, and improperly carried-forward transitional credit are treated as State tax liabilities and may be paid through the electronic credit ledger or electronic cash ledger. Interest, penalty and late fee must be paid only through the electronic cash ledger, with all such liabilities recorded in Part II of the Electronic Liability Register.

Online Letter of Undertaking acceptance arises on ARN acknowledgement without physical documents, subject to rejection for exporter ineligibility.
Exporters may submit a Letter of Undertaking electronically in FORM GST RFD-11 through the common portal. The LUT is deemed accepted when an online acknowledgement bearing an Application Reference Number is generated, and no physical documents are required for its acceptance. Acceptance remains conditional on prescribed eligibility to furnish an LUT instead of a bond; an ineligible exporter's LUT may be rejected ab initio.

GST portal technical-glitch redressal enables identified taxpayers to complete filings and seek consequential waiver of fines and penalties.
GSTN, Central and State authorities are to appoint and publicise nodal officers. Taxpayers must apply to field or nodal officers, identify the demonstrable portal glitch, and furnish evidence of their bona fide compliance attempt. Nodal officers collate applications for GSTN verification against electronic records. GSTN identifies issues affecting a large taxpayer class, submits proposed solutions to the IT Grievance Redressal Committee, and the committee may approve modified solutions and direct GSTN and field formations to implement them.

Joint venture cash calls: capital contributions remain transactions in money, while member-provided operational services constitute taxable supplies.
GST treatment of joint venture cash calls depends on whether the payment is a mere contribution of money or consideration for a supply. Contributions pooled by an operating member to acquire machinery for joint venture use are capital contributions and transactions in money, without a supply for consideration. Where the operating member uses its own machinery to perform activities for the joint venture and recovers costs from other members according to their participating interests, it supplies taxable services. The joint venture agreement and related arrangements determine the taxability of each cash call.