Cross-margining facility for offsetting index futures expands margin efficiency, subject to correlation and constituent overlap requirements.
Introduction of a cross-margining facility permitting margin benefits for offsetting futures positions in highly co-related equity indices, subject to correlation, constituent overlap and weightage eligibility. Clearing Corporations must verify eligibility monthly and on constituent changes and apply to SEBI with supporting data. An initial spread margin is levied on eligible spreads, with cross-margin computed in real time at client level and passed through trading/clearing members. Exchanges and clearing corporations must update systems, rules, legal agreements for margin utilisation, notify market participants, and report implementation status to the regulator.

UPI with ASBA: Phase II implementation extended and T+6 operational timelines mandated for intermediaries and banks.
Extension of Phase II implementation of Unified Payments Interface (UPI) with ASBA is directed until March 31, 2020, retaining the T+6 listing environment and prescribing detailed operational timelines. Retail applications via intermediaries must include UPI IDs; stock exchanges, sponsor banks, issuer banks, SCSBs, registrars, merchant bankers and NPCI must perform API-based bid validation, mandate initiation, funds blocking and multilayered reconciliation. Sponsor banks and merchant bankers have specified cut-offs and daily reporting obligations to consolidate data and share it with SEBI; liability for failed transactions rests with the participant where the transaction lifecycle halts.

Place of supply clarified for port cargo-handling and temporary-import services; contract terms and export condition determine location.
Place of supply for port ancillary cargo-handling services is not tied to immovable property and is to be determined under the place-of-supply rules applicable to such services based on the contract between supplier and recipient. For services performed on goods temporarily imported for treatment or process (e.g., cutting and polishing of unpolished diamonds) that are exported without being put to any use in India beyond that process, the place of supply follows the special rule for temporarily imported goods rather than the general rule for where services are performed.

Tariff rate quota for crude soya oil under India Mercosur PTA allows imports subject to origin and pre purchase requirements.
A tariff rate quota of 30,000 MT for Crude Soya Oil (HS 1507 10 00) from Paraguay under the India Mercosur PTA is established and incorporated into Appendix 2A. Imports under the TRQ must comply with Customs Notification No. 57/2009, require a pre purchase agreement with an eligible Paraguayan exporter, and a Certificate of Origin for clearance. Import authorizations must be filed electronically in prescribed ANF forms by 28 February for allocation in the next financial year, with allocation divided equally among eligible applicants and the quota measured by the Indian financial year (1 April-31 March).

Segregated portfolio creation for unrated issuer defaults permitted, subject to SID disclosures and AMC discretion.
Segregated portfolios may be created for unrated debt or money market instruments of an issuer without outstanding rated instruments only upon actual default of interest or principal; AMCs may do so at their discretion if the SID contains enabling provisions and adequate disclosures, must notify the industry association immediately upon default, and otherwise follow the existing circular's terms.

Place of supply in composite semiconductor design services follows recipient location when prototype testing remains ancillary.
For composite supplies of electronic software development and integrated-circuit design to recipients in non-taxable territory, prototype hardware testing that only validates or improves the core software or design remains ancillary. Place of supply is determined by the service recipient's location under section 13(2) of the IGST Act. The physical-availability rule for services concerning goods does not separately govern that ancillary testing, and the contractual supply must be characterised on its facts.

Securities lending arrangements attract GST because temporary lending for a fee constitutes a taxable service.
Temporary lending of securities under the Securities Lending Scheme, 1997 is a taxable service rather than a transaction involving disposal of securities. The lending fee is consideration, while intermediary facilitation for commission or fee is separately taxable. The service is classified under heading 997119 and taxed at 18%. For the earlier period, the lender bears IGST under forward charge, without further IGST where CGST, SGST, or UTGST was already paid. From 1 October 2019, the borrower bears IGST under reverse charge mechanism.

Retrospective operation of GST explanations excludes government and local authority activities from business under concessional-rate entry.
Explanation to concessional-rate entry 3(vi) excludes activities or transactions undertaken by Government and local authorities from the meaning of "business" for that entry. Inserted within one year under section 11(3) of the Goa GST Act, the explanation is treated as forming part of the entry from its inception on 21 September 2017. A stated later commencement date does not alter that operation.

Liquor licence fees: State grants of alcoholic liquor licences are treated as non-supplies, unlike other taxable licensed privileges.
Licence fees and application fees paid for State Government licences relating to alcoholic liquor for human consumption are not subject to GST. State grants of such licences are treated as neither a supply of goods nor a supply of services. The corresponding service of granting liquor licences was exempt from service tax for the pre-GST period from 1 April 2016 to 30 June 2017. This special treatment is limited to liquor licences; other governmental licences, privileges and rights granted for consideration remain taxable, generally under reverse charge.

GST classification clarifications define tax treatment for leguminous vegetables, lease imports, solar components, and medical-device parts.
GST classification treats merely heat-treated, unseasoned dried leguminous vegetables under HS heading 0713; branded goods in unit containers attract 5% GST and other cases are exempt, while mixtures with oil or salt or namkeens fall under subheading 2106 90. Almond milk falls under a residual beverage entry and attracts 18% GST. Mechanical sprayers of all types attract 12% GST. Imported stores for use in Indian Navy ships are exempt from GST. Lease-import IGST exemption applies to qualifying service arrangements, subject to bond, non-transfer, re-export and breach-payment conditions.

GST classification of petroleum exploration services distinguishes operational extraction support from professional consulting and evaluation services.
GST classification distinguishes petroleum exploration, mining and drilling support under heading 9986 from professional, technical and business services under heading 9983. Operational oil and gas extraction support includes well-related and extraction-unit activities, but excludes geological, geophysical and related consulting. Geological and geophysical consulting and mineral exploration or evaluation fall within heading 9983. Services outside these specified entries must be classified under their respective headings and taxed accordingly.

Airport levy GST: Airlines exclude PSF and UDF from ticket value when acting as qualifying pure agents.
PSF and UDF are consideration for airport services supplied to passengers and are subject to GST payable by airport operators. Airlines collect those charges as pure agents only if the pure-agent requirements are satisfied, including authorised payment, separate invoice disclosure, lack of title or own use, and recovery limited to actual amounts. Such charges and GST are excluded from airline supply value; airlines cannot claim related input tax credit. Registered passengers may claim input tax credit based on the airline's pure-agent invoice. Airline collection charges remain subject to GST under forward charge.

GST exemption on liquor licence fees: state grant of such licences treated as not a supply, limiting GST liability.
Granting of alcoholic liquor licences by State Governments against licence or application fees is treated as neither a supply of goods nor a supply of service for GST; the GST Council and Central Government exempted licence/application fees for alcoholic liquor for the period 01.04.2016 to 30.06.2017, and Haryana implemented this clarification by departmental notification while limiting the dispensation to State liquor licences only.

Retroactive explanation under section 11(3) treated as part of original notification, excluding government activities from 'business'.
The explanation inserted into serial number 3(vi) of notification No.46/ST-2 was validly made under section 11(3) of the HGST Act within the permitted one year period and is therefore treated as part of the original notification from its inception, excluding Government and Local Authority activities from the term 'business' for that concessional entry.

Securities lending supply is taxable; lenders charged until 30 Sep 2019, borrowers liable under reverse charge from 1 Oct 2019.
Lending of securities under the Securities Lending Scheme does not amount to disposal of securities but the lending fee charged by the lender is taxable as a service. Intermediaries' facilitation services are taxable separately. The supply is classified as a service taxed at 18%. For 01.07.2017-30.09.2019 GST was payable by the lender under forward charge (IGST) subject to credit where CGST/SGST/UTGST was paid; from 01.10.2019 the borrower is liable under reverse charge (IGST).

Place of Supply: recipient location for composite software/design services when hardware testing is ancillary, under IGST rules.
Where an Indian supplier provides software and chip design services as a composite supply and tests the work on prototype hardware supplied by the recipient, the testing is an ancillary activity and the principal supply is the software/design. The entire contract is a single supply and the place of supply is the location of the service recipient; separate place of supply rules for ancillary components do not apply to such testing.

GST exemption on maritime training: DG Shipping approved courses by maritime institutes qualify as educational services and are exempt.
DG Shipping approved maritime training institutes and their courses are recognised as educational services under the Merchant Shipping Act and associated rules, and thus qualify for the GST exemption provided they meet the eligibility conditions specified in the Haryana state notification defining "educational institution."

GST on donor name display: no levy where acknowledgement is philanthropic and not advertising or quid pro quo.
Where a donor's name is displayed solely as an expression of gratitude and public recognition without promoting the donor's business, that acknowledgement is not a supply for consideration and attracts no GST, provided the recipient is a charitable organisation, the payment is a gift or donation, and the purpose is philanthropic rather than advertising.

Airport levies treated as airport operator supplies; airlines as pure agents exclude those fees from GST liability.
PSF and UDF are charges by airport operators constituting consideration for services to passengers and liable to GST. When airlines collect these fees on behalf of airport operators and satisfy Rule 33 pure agent conditions, the fees and the GST component charged by the airport operator are excluded from the airline's taxable value; airlines must separately indicate amounts and cannot claim ITC on GST paid on PSF/UDF. Airport operators are liable to pay GST on PSF/UDF; collection charges to airlines are taxable supplies with ITC available to the airport operator.

Support services classification clarifies which exploration and drilling activities fall within specified service codes and headings.
The circular clarifies that operational onsite extraction and support activities fall under heading 9986 governed by the Explanatory Notes to service codes 998621 and 998622, while professional, technical and consulting exploration services fall under heading 9983 governed by the Explanatory Notes to service codes 998341 and 998343; services outside those entries are to be classified elsewhere and taxed accordingly.