Condonation of delay for deduction claims where statutory audit delays caused late filing, subject to verification and hearing.
The Board delegates to Chief Commissioners/Directors General authority to admit and decide applications for condonation of delay in filing returns claiming deduction for cooperative societies where delay resulted from circumstances beyond the assessee's control, including delays in obtaining statutory audits under State law; decision-makers must verify documentary evidence of audit delay vis-a -vis the return due date, check for signs of tax avoidance or evasion requiring further action, and afford the applicant an opportunity to be heard, preferably disposing applications within a three-month target.

Scrutiny of returns: portal based discrepancy notices, taxpayer reply mechanism and prescribed timelines for assessment action.
The circular prescribes a structured online procedure for scrutiny of returns via the GST BO Portal: Head Office issues risk based lists while proper officers may take suo motu cases; officers must issue Form GST ASMT 10 specifying parameter wise discrepancies, consider payments made via Form DRC 03, receive replies in Form GST ASMT 11, and conclude by Form GST ASMT 12 if satisfied, or initiate determination proceedings, audit or investigation otherwise. Time bound timelines, reporting on MIS and oversight by zonal commissioners are mandated, and an indicative list of selection parameters is provided.

Input-tax credit allocation: HO may use ISD registration or invoicing to enable BOs to claim ITC, subject to valuation rules.
For services between distinct persons, HO may either distribute ITC through the ISD mechanism (requiring ISD registration) or issue tax invoices under section 31 so BOs can avail ITC; ISD distribution is allowed only if services are attributable to or actually provided to BOs. Invoice value for internally generated supplies is governed by rule 28 read with section 15(4): if the recipient BO is eligible for full ITC, the invoice value is deemed open market value irrespective of included cost components, and HO need not include employee salary costs in taxable value where recipient is not eligible for full ITC.

E-invoicing applicability: suppliers must issue e-invoices for supplies to government entities registered solely for TDS deduction.
E-invoicing is required for supplies by registered persons whose turnover exceeds the prescribed threshold when supplies are made to Government Departments, establishments, agencies, local authorities, or PSUs that are registered solely for deduction of tax at source; such entities are treated as registered persons under GST law and transactions with them fall within the e-invoicing regime, and implementation issues should be reported to the Department.

Refund of accumulated input-tax credit now rests on GSTR-2B reflection, affecting eligibility for GST credit refunds.
Refund of accumulated input-tax credit under section 54(3) is restricted, from January 1, 2022, to credit reflected in Form GSTR-2B for the relevant or any prior tax period on which credit is available; prior circulars limiting refunds to GSTR-1/GSTR-2A are modified. The Form RFD-01 undertaking is retained but revised to reference only clause (c) of sub-section (2) of section 16, with references to section 42 and GSTR-2/GSTR-3 removed. Adjusted total turnover must include exports as determined by the Explanation in sub-rule (4) of rule 89. Exporters who paid IGST under rule 96A may claim refund of the tax (not interest) once export/payment occurs, filing under "Any Other" if portal options are unavailable.

Taxability of shareholding: holding shares in a subsidiary is not a supply under GST without a section 7 supply.
The Circular explains that securities, including shares, are neither goods nor services under GST definitions and that mere purchase, sale or holding of shares does not constitute a supply; therefore holding shares of a subsidiary by a parent company, by itself, cannot be treated as a supply of services and is not taxable under GST unless there is an actual supply as defined in law.

Warranty replacement GST treatment: no GST or input tax credit reversal when replacements/repairs are free under original warranty.
Where the original supply's value includes warranty, replacements or repairs provided during warranty without separate consideration attract no additional GST and the manufacturer need not reverse input tax credit; if additional consideration is charged, GST applies on that additional consideration.

TCS collection responsibility falls on the ECO releasing payment; if supplier is also an ECO, buyer side ECO collects.
Where multiple e commerce operators are involved and the supplier side ECO is not the supplier, the supplier side ECO who finally releases payment to the supplier must collect TCS and perform related compliances; if the supplier itself is an ECO, the buyer side ECO must collect TCS when making payment to that supplier.

Input-tax credit reconciliation: limits excess ITC claims under rule 36 for specified 2019-2021 periods.
Clarification resolves ITC mismatches between Form GSTR-3B and Form GSTR-2A for April 1, 2019 to December 31, 2021 by applying Circular No.183/15 procedures where rule 36 was not in force, and by enforcing rule 36 ceilings and the payment-by-supplier condition for periods when rule 36 applied; cumulative adjustment provisions for specified month-blocks must be observed, certificates required under the prior circular remain necessary for admitted excess up to the rule specified cap, and from January 1, 2022 ITC is admissible only if reported by suppliers and communicated in the purchaser's automated statement.

Interest on wrongly availed IGST credit hinges on the total ITC pool, not the IGST head alone.
For interest calculations on wrongly availed IGST credit, the combined input-tax credit balance across IGST, CGST and SGST heads must be considered. If the combined ITC balance never falls below the wrongly availed amount between availment and reversal, no interest is attracted; if it does fall below, the shortfall equals the extent of utilisation and attracts interest. Compensation cess credit is excluded from this computation because it may only be used for compensation cess liabilities.

Reference Number requirement: communications must quote an RFN or be invalid; limited exceptions and post facto regularization allowed.
Officers must quote a computer generated Reference Number (RFN) on all communications to taxpayers under the Model 2 back office; RFNs are generated via the officer login and verifiable by taxpayers. Limited exceptions allow issuance without an RFN for technical failures or urgent field situations if reasons are recorded and the message declares lack of RFN. Non exempt communications without an electronic RFN are invalid and deemed never issued. Exempt communications must be regularized within fifteen working days by obtaining post facto supervisory approval, generating the RFN, printing the pro forma with RFN, and filing it.

Taxability of securities: holding shares in a subsidiary is not a taxable GST supply absent a statutory supply requirement.
The CBIC clarifies that securities, including shares, are neither goods nor services; mere purchase, sale or holding of shares by a holding company does not constitute a taxable supply. A SAC classification alone does not create a service-GST applies only where the transaction satisfies the statutory definition of supply under section 7. Accordingly, holding shares of a subsidiary by the parent company per se is not a supply of services and is not taxable under GST; the circular is applied mutatis mutandis to the Maharashtra SGST framework and field formations are to publicize the position.

Input tax credit on warranty replacements not reversed where replacements or repairs are provided without additional consideration.
Replacements of parts and repair services provided during the warranty period without separate consideration are covered by the value of the original taxable supply and attract no additional GST; manufacturers are not required to reverse ITC for such warranty work. Distributors providing warranty services without charging customers do not incur GST, but inter-party transactions vary: taxable invoiced supplies from distributor to manufacturer permit ITC, manufacturer-supplied parts for warranty without consideration attract no GST and no ITC reversal, and credit-note adjustments require prior reversal of ITC by the distributor. Repair services charged by a distributor to a manufacturer are taxable and ITC-eligible. Extended warranty sold with original supply is part of the composite supply; if sold later it is a separate taxable supply.

TCS on e commerce transactions: supplier-side ECO collects unless supplier is an ECO, then buyer-side ECO collects.
Where multiple ECOs participate and the supplier-side ECO is not the supplier, the supplier-side ECO that ultimately releases payment to the supplier must collect TCS, deposit it to the government and perform related compliances; the buyer-side ECO that only forwards consideration after deducting its fees is not required to collect TCS for that supply. If the supplier-side ECO is itself the supplier, the buyer-side ECO that collects payment from the buyer must collect and remit TCS and complete applicable compliances.

Input Tax Credit reconciliation guidance limits excess ITC allowance and ties entitlement to supplier reported communication in returns.
Clarification directs uniform treatment of discrepancies between Input Tax Credit claimed in FORM GSTR 3B and that reflected in FORM GSTR 2A for 01.04.2019-31.12.2021, confirming the temporal caps on additional ITC where suppliers have not furnished outward details (20%, 10%, and 5% in successive periods), reiterating that availment remains subject to the condition that tax on the supply has been paid by the supplier, applying prior verification guidelines subject to those caps, and providing that from 01.01.2022 ITC is allowable only to the extent communicated in FORM GSTR 2B.

Interest on wrongly availed IGST credit depends on total input tax credit balance across tax heads, not IGST alone.
For interest calculation when IGST credit is wrongly availed and reversed, the total input tax credit balance across IGST, CGST and SGST in the electronic credit ledger must be considered to determine whether and to what extent the wrongly availed IGST was utilized; compensation cess credit is excluded from this aggregation as it is usable only for compensation cess liabilities.

Industrial license validity extended to fifteen years with a possible three year extension; automatic lapse if production not commenced.
The Press Note increases industrial licence initial validity to fifteen years with a possible discretionary three year extension, and provides that licences where commercial production has not commenced within the maximum aggregate period shall be treated as automatically lapsed. Extensions are to be processed by the Administrative Ministry/Explosive Section (DPIIT) and may be approved by the Additional Secretary/Joint Secretary without referral to the Licensing Committee, subject to conditions on timing, unchanged licence status, government comments, land tenure, completed construction, and installed plant and machinery; transfers, suspensions or cancellations bar extension.

Input tax credit distribution: HO may use ISD or invoice BOs, invoice value deemed open market value when recipient has full credit.
For services between distinct offices, the HO may either distribute ITC via the ISD mechanism (with mandatory ISD registration if used) or issue tax invoices to BOs so BOs can claim ITC; where a recipient BO is eligible for full ITC, the invoice value is deemed the open market value under rule 28 irrespective of included cost components, and a nil invoice may be so deemed; where the BO is not eligible for full ITC, HO employee salary need not be mandatorily included in taxable value.

E-invoicing requirement applies to supplies to government entities registered only for TDS when supplier exceeds threshold.
E-invoicing is mandatory for suppliers whose turnover exceeds the prescribed threshold when supplying to Government Departments, agencies, local authorities or PSUs that are registered solely for tax deduction at source; those government entities are to be treated as registered persons, and suppliers must issue e-invoices for such supplies under the applicable e-invoicing rule.

Refund of Input Tax Credit restricted to GSTR 2B availability; clarifies undertakings, turnover calculation and exporter refunds.
Refund of accumulated Input Tax Credit under section 54(3) is restricted to credit reflected and available in Form GSTR 2B for the relevant tax period or any prior period, effective January 2022; prior circulars referring to GSTR 2A/GSTR 1 are modified accordingly. The Form RFD 01 undertaking is amended to remove references to omitted provisions and forms, applicants must undertake repayment with interest if clause (c) of section 16(2) is not met. Export calculations for adjusted total turnover follow the Explanation in sub rule (4) of rule 89. Exporters who later effect export or realise payment may claim unutilised ITC and IGST (not interest).