Reverse charge input tax credit time limit: ITC period is tied to the financial year when the recipient issues the invoice.
Where a registered recipient must pay tax on reverse charge for supplies from unregistered suppliers and issues the invoice under the statutory invoice provision, the relevant financial year for the time limit to avail input tax credit is the financial year in which the recipient issues that invoice; ITC is available only subject to payment of the tax and compliance with other statutory conditions, and delayed issuance/payment attracts interest and potential penal consequences.

Place of supply rules for goods to unregistered persons clarified; authorities instructed to notify subordinate officers and trade bodies.
Clarification on clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 explains the place of supply rules for goods supplied to unregistered persons and their compliance implications; the Government circular was forwarded by the State Tax Commissioner, Uttar Pradesh with directions to notify subordinate officers and trade organisations and an enclosed copy.

Input tax credit reversal not required where valuation-excluded premium portion in life policies is not an exempt supply.
The circular clarifies that the portion of life insurance premium excluded from taxable value under the life-insurance valuation rule does not constitute an exempt or non-taxable supply; it results from valuation methodology only. Consequently, that excluded premium portion does not trigger reversal of input tax credit under the GST reversal provisions and related rules applicable when supplies are for exempt or non-taxable purposes.

Input tax credit reversal not required for premium portions excluded under Rule 32(4) valuation for life insurance policies.
The portion of premium excluded from taxable value under Rule 32(4) for life insurance policies is a valuation outcome and is not thereby converted into an exempt or non taxable supply; consequently, reversal of input tax credit under Section 17(1) read with Rules 42 and 43 is not required for that excluded portion.

GST on ESOP reimbursements: cost-to-cost reimbursements not taxable, additional facilitation fees taxable under reverse charge.
Securities (including shares) issued as ESOP/ESPP/RSU to employees form part of remuneration and, being neither goods nor services, are not subject to GST; reimbursement by the domestic subsidiary to the foreign holding company on a strict cost-to-cost basis for such shares does not amount to import of services and is not taxable. Any additional amount charged by the foreign holding company over and above the cost-labelled fee, markup, or commission-constitutes consideration for facilitation services and is taxable, with GST payable by the domestic subsidiary on reverse charge.

Proportionate reversal of input tax credit: evidence via CA/CMA certificate or recipient undertaking enables exclusion of post supply discounts.
Suppliers issuing post supply discounts by tax credit notes may exclude those discounts from taxable value only if the recipient has proportionately reversed the input tax credit attributable to the discount; absent portal verification, suppliers should obtain a CA/CMA certificate (with UDIN) from the recipient specifying credit note and invoice details, amount and documentary reference of ITC reversal, or, for discounts below a de minimis threshold in a financial year, an undertaking from the recipient. These certificates/undertakings constitute admissible evidence under Section 15(3)(b)(ii) and must be produced to tax authorities when required.

Input tax credit timing: ITC window tied to the invoice issuance year for RCM supplies from unregistered suppliers.
Where tax is payable under reverse charge on supplies from unregistered persons, the recipient must issue the invoice under Section 31(3)(f), pay tax in cash, and may claim input tax credit only within the time limit computed from the financial year in which that recipient issued invoice pertains, subject to fulfillment of other ITC conditions. Delayed issuance/payment attracts interest and potential penalties.

Valuation of import of services: invoice value deemed open market value where recipient has full input tax credit.
Where an Indian registered person imports services from a related person abroad and the Indian recipient is eligible for full input tax credit, the value declared in the recipient's invoice is deemed the open market value under the second proviso to Rule 28(1) of the CGST Rules. Such imports attract tax under reverse charge and require the recipient to issue a self-invoice. If no invoice is issued by the recipient for services from the foreign affiliate, the recipient's declaration of Nil value may be treated as the open market value under the proviso.

Place of supply for unregistered persons: delivery address on the invoice governs place of supply, not billing address.
Clause (ca) of Section 10(1) fixes the place of supply for goods to unregistered persons as the location recorded in the invoice for that person, with the supplier's location applying if no recipient address is recorded; recording the State alone suffices. Where billing and delivery addresses differ, the delivery address recorded on the invoice determines the place of supply. Suppliers may record the delivery address as the recipient's address on the invoice to govern place of supply.

Special procedure compliance for manufacturers clarified; machine IDs, energy certification, applicability and job work responsibilities specified.
Adopts CBIC clarifications for the special procedure under Notification No. 04/2024: make/model in Table 6 of FORM GST SRM-I are optional, machine number is mandatory (manufacturers may assign one if absent); electricity consumption must be declared from records or certified by a Practicing Chartered Engineer in FORM GST SRM-III and uploaded; sale price substitutes for absent MRP in Table 9; the CE must hold IEI certificate of practice; SEZ units and manual packing operations are excluded; report only the final-packing machine; job workers are covered, and an unregistered job worker's principal manufacturer is liable for compliance.

Monetary limits for appeals reduce government litigation; appeals below thresholds generally not filed, with specific exclusions.
The Board prescribes monetary thresholds under the CGST Act below which Central tax officers shall not file appeals before GSTAT, High Courts or the Supreme Court, with specified rules for calculating the disputed amount (tax, interest, penalty, late fee, and refunds) and aggregation across composite orders. Exclusions require appeals to be decided on merits irrespective of thresholds, and non-filing under the thresholds must be recorded as not creating precedent or departmental acquiescence; officers may file appeals in other cases where amounts or questions of law warrant contestation.

Supply characterization of related party loans: interest only consideration is exempt under GST; processing fees are taxable.
Extending loans/credit/advances between related persons is a supply under Schedule I read with section 7(1)(c), but services of granting loans are exempt insofar as consideration is only interest or discount. Amounts charged over and above interest-such as processing, administrative or service fees-constitute taxable consideration for processing/facilitating/administration services and attract GST; where no such fees are charged between related parties, no processing supply arises and Rule 28 valuation need not be applied.

Input tax credit entitlement for insurers on reimbursed motor vehicle repair costs is available, limited to approved reimbursed amounts.
Insurers are the recipient of motor vehicle repair services to the extent of approved repair liability and may claim ITC in reimbursement mode, subject to credit conditions. If garages issue separate invoices one to insurer for approved cost and one to insured for excess, ITC may be available on the insurer's invoice; if a single invoice is issued to the insurer but reimbursement covers only the approved cost, ITC is limited to that reimbursed approved amount. No ITC is available where the invoice is not in the insurer's name.

Extended warranty treated as a distinct service when separate from the goods supplier, attracting GST on the warranty supply.
Clarifies that replacements of goods "as such" during warranty are to be read as replacements of 'goods or its parts' and follow prior guidance on GST liability and ITC reversal; replenishment by a manufacturer to a distributor via delivery challan without consideration is not a taxable supply and does not require ITC reversal by the manufacturer; and extended warranty supplied by a person different from the goods supplier or supplied after original sale is a distinct supply of services, with the extended-warranty supplier liable to discharge GST on that service.

Supply of salvage: insurers must discharge GST when they acquire and sell wreckage after full claim settlement.
Where an insurance contract provides for deduction of salvage/wreck value from the claim (deductible), ownership of the wreckage remains with the insured and the insurer has no GST liability on that deducted value; however, if the insurer settles the full insured declared value without deducting salvage, the salvage vests in the insurer and the insurer must discharge GST on disposal or sale of the salvage.

Filing deadline extension to October 31 for brokers and depository participants, requiring exchanges to notify and amend rules.
SEBI has extended the compliance timeline so that failure to furnish annual audited accounts by stock brokers and net worth certificates by depository participants (for year ending March 31) will be judged against an October 31 deadline; the change is effective immediately and exchanges/depositories must notify members, amend bye laws and report implementation in Monthly Development Reports.

Brokers' institutional mechanism for fraud prevention mandated with staggered risk-based implementation across broker categories and ISF standards.
Requires stock brokers to implement an institutional mechanism for prevention and detection of fraud or market abuse, comprising systems for surveillance and internal controls, broker and employee obligations, escalation and reporting, and a Whistle Blower Policy; the ISF, with SEBI, will frame implementation standards; stock exchanges must notify brokers, amend rules, issue applicability notices, mandate adoption of ISF standards, and report implementation status to SEBI.

Timelines for CRA rating communication and appeals set prompt communication, appeal windows, and press release dissemination requirements.
Specific timelines require CRAs to communicate ratings to issuers promptly after rating committee meetings, allow issuers a short window to request review or appeal following periodic surveillance, and mandate dissemination of press releases and intimation to stock exchanges or debenture trustees within a prescribed period. CRAs must maintain an archive of all disclosures for ten years, while certain specified disclosures are published for shorter prescribed periods; records must be retained for ten years and issuer specific press releases/rating rationales made available on CRA websites.

Provisional assessment for imported used cranes requires provisional duty, bond and engineer valuation pending RTO registration.
Provisional assessment is required for imported old and used cranes to prevent misdeclaration of year and capacity. Importers must pay duty on value ascertained by a Chartered Engineer at first check, submit a bond for the entire value and potentially provide a bank guarantee; finalisation follows submission of a matching RTO registration certificate, while mismatches will prompt revenue-protective action.

Customs Broker Profile Correction: administrative edits now possible on CBLMS when broker applications cannot effect the change.
The CBLMS "Manage CB Profile" feature now allows System Administrators to modify all sections of an approved Customs Broker profile - Primary Details, Correspondence Address, Authorised Person Details, Proprietor/Partner/Director Details, Security Details and OPS Details - but brokers must submit change requests via Annexure B to their Policy Section only for changes that cannot be handled through existing broker applications; requests for changes achievable through broker applications will be invalid.