Tax audit officers designated as proper officers gain summons powers for inquiry and retrospective effect under the GST framework.
Tax audit officers posted in the zone, namely the Joint Commissioner, Deputy Commissioner and Assistant Commissioner, were designated as Proper Officers for inquiry and inspection functions under sections 65 and 66 of the Uttar Pradesh Goods and Services Tax Act, 2017. The amendment also aligns their designation with the power to issue summons under section 70 for production of records, attendance of persons, and evidence, and is stated to operate retrospectively from 1 July 2017.

GST recovery under insolvency proceedings requires reduction of demand and issuance of intimation for revised statutory dues.
Clarification is issued on the treatment of statutory dues under the West Bengal Goods and Services Tax Act, 2017 where proceedings against a corporate debtor have been finalised under the Insolvency and Bankruptcy Code, 2016. Where insolvency proceedings reduce government dues, section 84 of the WBGST Act requires intimation of the reduced demand and continuation of recovery only for the reduced amount. Proceedings under the IBC are treated as covered by the expression "other proceedings", and FORM GST DRC-25 is to be issued to reduce the confirmed demand.

No Claim Bonus and e-invoicing exemption clarified: GST discount treatment and entity-wide relief apply under the circular.
No Claim Bonus is not consideration for any supply by the insured, as there is no contractual obligation to refrain from lodging claims in exchange for it. It is, however, a permissible discount when pre-disclosed and recorded in the policy and invoice, so GST applies on the insurance premium after deduction of the No Claim Bonus. The e-invoicing exemption applies to the entity as a whole and is not confined to particular supplies made by that entity.

Limitation under section 73 governs re-determination of tax when a section 74 notice is treated as section 73 notice.
Clarification is issued on the applicability of section 75(2) where a section 74(1) notice is found unsustainable because fraud, wilful misstatement or suppression of facts has not been established. In such cases, the proper officer must re-determine the tax payable as if the notice were issued under section 73(1), and the order must be issued within two years from the date of communication of the appellate or judicial direction under section 75(3).

Input tax credit on foreign-destination transport services remains available subject to GST credit conditions and reporting rules.
Where transportation of goods, including by mail or courier, is supplied by a person in India to a recipient in India and the goods are transported to a place outside India, the place of supply is the foreign destination of the goods under the proviso to section 12(8) of the IGST Act. Such supply is inter-State supply because the supplier is in India and the place of supply is outside India, and IGST is chargeable. The recipient may avail input tax credit subject to sections 16 and 17 conditions. In GSTR-1, the supplier should use State code '96- Foreign Country'.

Input tax credit mismatch between GSTR-3B and GSTR-2A to be verified under section 16 conditions and supplier certificates.
Clarification addresses differences between Input Tax Credit claimed in FORM GSTR-3B and credit reflected in FORM GSTR-2A for FY 2017-18 and FY 2018-19. The discrepancy may arise from supplier-side reporting errors such as non-filing or filing of FORM GSTR-1, wrong classification of B2B supplies as B2C, or use of an incorrect GSTIN, and is to be examined under the prescribed verification procedure rather than treated automatically as ineligible credit. The proper officer must verify the conditions under section 16, including supporting invoices, receipt of supplies, payment to the supplier, and any reversal under sections 17 or 18.

Refund of unutilised input-tax credit for exported electricity: procedural filing, documentation and calculation requirements under GST.
Procedure for refund of unutilised ITC for zero-rated export of electricity: file Form GST RFD-01 under "any other" with remark "Export of electricity-without payment of tax (accumulated ITC)", upload Statement 3B with export invoices, energy exported and tariff, the monthly Regional Energy Account (REA) statement of scheduled energy from RPC, relevant agreements and Statement 3A calculation. Relevant date is the last date of the month as per REA. Turnover equals scheduled energy (per REA) times contracted tariff; use the lower quantity if invoice and REA differ. Compute refund per rule 89(4) formula; exclude domestic electricity from adjusted total turnover and verify no ITC on inputs for domestic supply. Debit from electronic credit ledger (Form GST DRC-03) is requested before issuance of refund and payment orders.

Re-credit in electronic credit ledger: procedure for restoring erroneous GST refunds after deposit and officer order.
Where a taxpayer deposits an erroneous refund with applicable interest and penalty through Form GST DRC-03 by debiting the electronic cash ledger and notifies the jurisdictional officer (using Annexure A where portal automation is not available), the proper officer, upon satisfaction of full payment, shall re-credit an equivalent amount to the electronic credit ledger by issuing an order in Form GST PMT-03A, preferably within 30 days from the request or payment date.

Refund for unregistered persons: temporary registration and RFD-01 process enables recovery of GST borne on cancelled long-term services.
Unregistered recipients who bore GST on advance or upfront payments for long-term services that are later cancelled may obtain temporary registration using PAN, complete Aadhaar authentication, supply bank account details, and file Form GST RFD-01 under 'refund for unregistered person' with Statement 8, supplier certificate and supporting documents. Refunds are available only if the credit-note issuance period has expired; the supplier's cancellation letter is the relevant date for unrendered supplies, claims cannot exceed tax declared on invoices, and only proportionate tax corresponding to amounts actually returned is refundable.

Reduction of GST statutory dues under insolvency: Commissioner must intimate reduced demand and adjust recovery accordingly.
Where insolvency proceedings finalised under the insolvency law reduce statutory dues payable under the Manipur GST Act, such insolvency adjudications qualify as other proceedings for purposes of continuation and validation of recovery; the Commissioner shall issue an intimation in the prescribed form to the taxable person and the authority with pending recovery so that recovery continues only in relation to the reduced amount and from the stage it stood immediately before disposal.

No Claim Bonus not consideration; GST applies to premium after allowable NCB deduction when invoiced.
NCB is not consideration from the insured to the insurer; where NCB is pre disclosed and recorded in the invoice it is an allowable deduction under clause (a) of sub section (3) of section 15 for valuation of insurance services, and GST is leviable on the premium after deduction of NCB. The e invoicing exemption in Notification No. 05/2020 State Tax applies to the exempted entity as a whole and thus covers all supplies made by that entity.

Limitation on re-determination: reassessment allowed only where original notice met non-fraud limitation, recalculating tax, interest, penalty.
When an appellate body directs that a fraud-based notice be treated as a non-fraud notice for reassessment, the proper officer must re-determine tax, interest and penalty following the procedural rules and limitation period applicable to non-fraud proceedings; reassessment is limited to amounts for which a show-cause notice was issued within the non-fraud limitation window, and proceedings must be dropped where the original notice was time-barred.

Place of supply determined as foreign destination - IGST applies and recipient may claim input tax credit subject to eligibility.
Where transportation-of-goods services are supplied by parties in India but goods are destined outside India, the place of supply is the foreign destination; the supply is an inter State supply and IGST is chargeable. The Indian recipient may claim input tax credit of the IGST subject to the statutory eligibility, apportionment and blocked credit conditions. The supplier must report the place of supply in Form GSTR 1 using the foreign country code.

Input Tax Credit reconciliation: procedural verification and evidence requirements to address ITC GSTR3B vs GSTR2A discrepancies.
Proper officers must obtain invoice-level details for ITC claimed in GSTR-3B but not reflected in GSTR-2A and verify fulfillment of eligibility conditions for ITC: possession of tax invoice/debit note, receipt of goods or services, and payment to the supplier. Officers must also assess need for reversal for ineligible ITC and compliance with time limits. To verify tax payment by suppliers, certificates with UDIN from chartered/cost accountants are required above a specified threshold; supplier certificates suffice below that threshold. The guidance applies to bona fide errors for FY 2017 18 and 2018 19 in ongoing proceedings only.

Refund mechanism for unregistered buyers: temporary registration and Aadhaar authentication required to claim GST borne on cancelled contracts
Unregistered recipients who have borne GST due to cancellation or termination of long-term service contracts may claim refund under section 54(1) by obtaining temporary registration on the common portal with PAN, completing Aadhaar authentication, entering bank details in their name, and filing FORM GST RFD-01 (category: Refund for unregistered person) with statement 8, supplier's certificate and supporting documents; claims are limited to tax declared on relevant invoices, require separate applications per supplier/State, and apply only where the credit-note period under section 34 has expired, with the supplier's cancellation letter treated as the relevant date for the two-year limitation.

Treatment of GST dues after IBC finalisation: Commissioner must intimate reduction and continue recovery only for the reduced amount.
When insolvency proceedings under the IBC finally reduce statutory GST dues previously covered by a recovery summary, the jurisdictional Commissioner must issue intimation of that reduction in FORM GST DRC-25 to the taxable person and to the authority pursuing recovery; recovery proceedings may thereafter continue only in respect of the reduced amount and IBC adjudications are to be treated as part of the "other proceedings" under the SGST Act.

No Claim Bonus treatment: GST applies on premium after deducting disclosed NCB; e invoice exemption covers the whole entity.
NCB does not amount to consideration from the insured to the insurer for refraining from claims. NCB is a permissible pre disclosed discount for valuation purposes where disclosed in the policy and invoice, and GST is chargeable on the premium after deducting the NCB shown on the invoice. The e invoice exemption under the state notification applies to the entity as a whole and covers all its supplies.

Limitation for redetermination: re-determination must be completed within two years and confined to timely-issued non-fraud demands.
When an appellate direction deems a fraud-based notice to be a non-fraud notice, the proper officer must issue the redetermination order of tax, interest and penalty within two years from communication of that direction. The redetermination must follow the non-fraud show cause framework and is limited to amounts for which the original notice was issued within the non-fraud time limit; notices issued beyond that time bar must be dropped, and for multi-year notices only amounts from years within the non-fraud limitation may be redetermined.

Place of supply for transportation to foreign destination: treated as foreign, IGST chargeable and recipient may claim input tax credit.
Place of supply for transportation services where supplier and recipient are in India but goods move to a place outside India is the foreign destination; such services are treated as inter State supplies attracting IGST. Recipients in India may claim input tax credit of the IGST charged, subject to the eligibility and apportionment conditions in sections 16 and 17 of the SGST Act. Suppliers must report the place of supply in GSTR 1 by selecting the state code for foreign country.

Input Tax Credit reconciliation: certified verification required when GSTR 3B claims exceed GSTR 2A to confirm admissibility.
Where ITC claimed in FORM GSTR 3B does not appear in FORM GSTR 2A for FY 2017-18 and 2018-19 due to suppliers' non filing, omissions, misclassification or wrong GSTIN, the proper officer shall require invoice level details and verify eligibility conditions for ITC: possession of tax invoice, receipt of goods/services, payment of value and tax to the supplier, and adherence to reversal and time limit provisions. To verify supplier payment, recipients must produce a Chartered Accountant/Cost Accountant certificate with UDIN when the annual difference per supplier exceeds a specified threshold; for smaller differences a supplier's declaration is acceptable.