GST classification of services clarified: exemptions, concessional rates, and reverse charge applications refined for multiple service categories.
Clarifies GST treatment: ice cream sold by parlours attracts standard GST with ITC from October 6, 2021 and past lower rate payments are treated as fully discharged; educational institution fees for entrance, eligibility and migration certificates are exempt; storage of ginned/baled cotton was exempt as raw vegetable fibre until exemption withdrawal on July 18, 2022; transit cargo services to and from Nepal and Bhutan (including empty containers returning) are exempt subject to customs/transhipment regulations; renting of vehicles with driver is a taxable rental service and reverse charge applies to corporate hirers; location charges paid up front for long term land leases qualify for exemption; IVF is treated as exempt health care; sale of developed land is not taxable; advertising in souvenir books attracts concessional rate; additional FASTag related tolls are treated as toll charges.

Status certificate validity extended under FTP: affected certificates remain valid until end of September under amended rules.
Status Certificates issued under the Foreign Trade Policy (2015-2020) for recognitions filed in FY 2015-16 and FY 2016-17 shall be valid for five years from the application date or until 30.09.2022, whichever is later, pursuant to an amendment to para 3.20(a) of the Handbook of Procedures effected by the Director General of Foreign Trade.

Security creation and due diligence: debenture trustees must issue NOC after prescribed due diligence before charge registration.
Debenture trustees and issuers must amend the debenture trust deed before due diligence; the DT shall perform initial due diligence per prescribed formats and issue a no-objection certificate (NOC) permitting security creation. The issuer must create the security, execute the charge in favour of the DT and register the charge with applicable registries within thirty days; thereafter the issuer and DT shall execute a supplemental debenture trust deed and submit the NOC, executed deed, DT undertaking of creation and registration, and other required documents to depositories and stock exchanges for ISIN reassignment.

GST classification clarifications for goods: electrical vehicles, stones, mango products, treated sewage water and feed by-products clarified.
Clarifies GST classification and applicable Schedule entries for specified goods: electrically operated vehicles are classifiable under HSN 8703 even without fitted batteries; certain brittle ready-to-use stones qualify as non-mirror-polished building stone; fresh mangoes are exempt while sliced dried and other processed mango forms follow their respective taxable entries; treated sewage water is exempt under the water heading; nicotine polacrilex gum for cessation is taxable under the nicotine oral products tariff; the fly ash content condition applies only to aggregates, not bricks; milling by-products for cattle feed fall under heading 2302 and the concessional Schedule I entry, with past periods regularized as recommended.

Supply by agreeing to refrain or tolerate an act requires a contract and consideration; mere penalties are not taxable.
The circular explains that the declared service of agreeing to refrain, tolerate or do an act requires an express or implied contractual agreement and corresponding consideration; mere payments for breach, statutory cancellation, fines or penalties are not consideration for such a supply. Payments that compensate or penalise (liquidated damages, statutory compensation, cheque dishonour fines, forfeiture, bond recoveries) are events within the contract or statute and not taxable unless they represent consideration for an independent agreement to tolerate or perform a service. Ancillary charges bundled with a principal taxable supply (late payment fees, cancellation charges) are taxable as the principal supply; exempt principal supplies render ancillary charges non-taxable.

GST applicability clarified across services, detailing specific rates, exemptions and reverse charge liabilities for diverse supplies.
This circular clarifies GST applicability, rates and exemptions across multiple service categories: ice cream parlours are subject to 18% GST with ITC from October 6, 2021 (past 5% payments treated as fully paid); educational institution fees for entrance, eligibility and migration certificates are exempt; storage/warehousing of ginned or baled cotton was exempt prior to July 18, 2022; transit cargo services to and from Nepal and Bhutan are exempt subject to customs/transit verification; renting of vehicles with operator is taxable as vehicle renting (heading 9966) and not eligible for road transport exemptions; IVF services qualify as exempt health care; sale of land is outside GST; reverse charge applies where corporates hire vehicles for periods of time.

Faceless assessment procedures require standardized AU notices, verifications, technical referrals and reasoned final orders under Section 144B.
Faceless assessment under Section 144B sets procedural duties for Assessment Units to verify assignments, issue structured questionnaires using departmental databases, enforce response timelines and centralized non compliance communications, and to refer discrete physical or non digital matters to the Verification Unit. AU may initiate penalties or issue show cause notices for best judgment assessment under Section 144 where variations are proposed; technical, valuation and legal assistance is to be sought from Technical Unit in prescribed formats with PCIT approvals, while Review Unit examines ILDPs and forwards reasoned reports to NaFAC before draft and final orders are issued using prescribed ITBA formats.

GST classification clarified: key goods reclassified with specified concessional and standard rates and exemptions.
Electrically operated vehicles are classified as such even if batteries are not fitted and attract the concessional rate; minor polished calcareous stones like Napa stone fall within the concessional entry for building stone; fresh mangoes are exempt, sliced dried mangoes attract the concessional rate while other processed forms including mango pulp attract the general rate; treated sewage water is exempt as water; nicotine polacrilex gum for tobacco cessation is taxable at the standard rate; the 90% fly ash content condition applies only to fly ash aggregate; milling by-products such as chilka, khanda and churi attract the concessional rate and past periods may be regularized.

GST classification clarifications: electric vehicles, mango products, treated sewage, nicotine gum, fly ash and pulse by products reclassified.
Electrically operated vehicles remain classifiable as electric vehicles attracting concessional GST even without fitted batteries; Napa and similarly minor polished brittle stones qualify as non-mirror polished building stone for concessional treatment; fresh mangoes are exempt while sliced dried mangoes receive concessional treatment and other dried forms including mango pulp attract the standard rate; treated sewage water supplied as water is exempt; nicotine polacrilex gum for tobacco cessation is taxable as nicotine oral products; the 90% fly ash condition applies only to aggregates and not bricks; pulse milling by-products are classifiable as bran/residues and attract the concessional rate, with past periods regularized on an as is basis.

Consideration for supply: only payments under an agreement to do or tolerate an act attract GST, not mere compensatory penalties.
GST attaches only where payments constitute consideration for a supply under an express or implied contract to do, refrain from, or tolerate an act; liquidated damages, statutory compensation, penalties for law violations, cheque dishonour fines and forfeitures that merely compensate for breach or deter conduct are not consideration and not taxable, whereas commercially bargained ancillary charges (late payment acceptance fees, cancellation charges, early termination or pre payment facilities) constitute consideration for a supply and are taxable at the rate applicable to the principal supply.

Taxability of contractual penalties: GST applies only when payments constitute consideration for an independent contractual supply, not mere compensation.
GST treatment of payments such as liquidated damages, penalties, compensation or cancellation and late payment charges depends on whether the payment constitutes consideration for an agreement to refrain from an act, to tolerate an act or situation, or to do an act under para 5(e) of Schedule II. Payments that are merely compensatory flows for breach, statutory compensation or fines for violations are not consideration for a supply and are not taxable; payments that represent consideration for ancillary or independent contractual facilities (eg. cancellation fees, late payment acceptance, prepayment or early termination charges) are taxable and assessed as the principal supply where applicable.

GST exemptions and rates clarified for ice cream parlours, educational fees, transit cargo, IVF and vehicle rentals.
Clarifications specify that ice cream sold by parlours is a taxable supply at the standard rate with ITC from the circular date while past lower rate payments are regularised without refund; educational institution fees for entrance, applications, eligibility and migration certificates are exempt; storage of ginned or baled cotton was exempt as raw vegetable fibre until its withdrawal on 18.07.2022; transit cargo related services to and from Nepal and Bhutan, including return of empty containers, are covered by the exemption subject to customs/transit compliance; rentals of vehicles with operator used within mining areas are renting services taxed as such and not exempt transport; IVF services are healthcare and exempt; sale of land remains non taxable though development services are taxable; reverse charge applies where corporates hire vehicles for control over operation.

GST treatment of services clarified: ice cream parlours at standard rate, educational fees exempt, transit cargo and vehicle rental classifications specified.
GST clarifications: ice cream parlours supply taxed at 18% with ITC from 06.10.2021 (past 5% treated as fully paid); educational entrance/application/migration fees exempt as services by educational institutions; storage/warehousing of ginned/baled cotton was covered under raw vegetable fibers exemption until withdrawal on 18.07.2022; transit cargo services to and from Nepal/Bhutan (including empty containers) are exempt subject to customs/track and trace; renting of vehicles with operator within mining areas is rental service (heading 9966) taxable and not covered by goods transport exemption.

IT tools and MIS review drive compliance tracking through new reports on additional liability and cancelled GSTIN mismatches.
State Tax officers are instructed to use departmental IT tools and MIS modules developed from GSTN and portal data for field administration, transparency, and tracking of compliance-related discrepancies. Two newly developed MIS reports are highlighted: Additional liability in 9C and Liability of Cancelled GSTIN, for identifying additional tax and ITC liability and mismatches in declared supplies for cancelled registrations. Officers must use these modules along with earlier tools, record action taken in the relevant entry module, and include the new reports in weekly review meetings for ongoing monitoring and result-based review.

Fraudulent input tax credit: recipient faces demand and penalty, issuer liable under invoice issuance penal provisions.
Issuance of tax invoices without underlying supply does not constitute supply; no tax demand under demand-and-recovery provisions arises against the issuer, but the issuer is liable to penal sanction for issuing invoices without actual supply. A recipient who fraudulently avails and utilises ITC without receipt is liable to demand and recovery of the ITC with interest and penal action under fraudulent-ITC provisions; prosecution under those provisions bars a duplicate penalty for the same act. An intermediary who passes on ineligible ITC by issuing invoices without supply is not subject to tax demand for outward transactions but is liable to penal provisions for issuing invoices without supply and for utilising ITC without receipt.

Input tax credit treatment clarified: ITC for deemed export refunds excluded from Section 17 and Net ITC calculation.
Tax paid on supplies regarded as deemed exports has been made available as ITC solely to facilitate refund claims but is not ITC under Chapter V, thus not subject to Section 17 restrictions nor included in Net ITC for refund computations. The proviso to clause (b)(iii) of subsection (5) of Section 17 applies to the whole of clause (b). "Leasing" in the exclusion is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger may be used only for output tax (excluding reverse charge); electronic cash ledger covers tax, interest, penalties and other liabilities.

Inverted duty refund permitted where concessional notifications make output tax lower than input tax, subject to exclusions.
Refund of accumulated input tax credit is allowed where output tax on the same goods is lower than input tax at the same time because the supplier makes sales under a Government concessional notification, subject to other statutory conditions; refunds are not available where output is nil rated or fully exempted or where supplies are specifically excluded by notification.

Re-credit in electronic credit ledger: procedure using FORM GST PMT-03A after deposit via FORM GST DRC-03.
Where a registered person deposits an erroneous refund with applicable interest and penalty through FORM GST DRC-03 by debiting the electronic cash ledger, the proper officer shall re-credit an equivalent amount to the electronic credit ledger by issuing an order in FORM GST PMT-03A, after receipt of a written request in the prescribed format and on satisfaction that full payment has been made, preferably within thirty days from request receipt or payment, whichever is later.

Refund of unutilised ITC for export of electricity requires REA-backed documentation, tariff-based valuation, and prescribed GST filing steps.
Procedure requires filing FORM GST RFD-01 under "Any Other" with remark "Export of electricity-without payment of tax (accumulated ITC)", uploading Statement 3B (export invoices, energy exported, tariff per unit), REA statement of scheduled energy from RPC Secretariat, power sale agreements, and calculation in Statement 3A. The relevant date for refund is the last date of the month as per the monthly REA. Refund amount is calculated using the standard formula for unutilised ITC on zero-rated supplies by valuing exports as REA quantity times contracted tariff (using the lower of REA and invoice quantity), excluding domestic electricity from adjusted turnover, and requiring electronic credit ledger debit before refund order and payment.

Withdrawal of GST refund rule leads to ab initio withdrawal of prior circular, removing refund eligibility for specified airport supplies.
Rule 95A of the Goa GST Rules providing refunds for taxes on indigenous goods supplied by airport retail outlets to outgoing international tourists has been omitted retrospectively; accordingly, the Commissioner withdraws ab initio the circular that explained Rule 95A, removing the administrative guidance that enabled the refund mechanism and aligning state practice with the omission.