Risk based STR handling: prioritise F1 STRs for immediate investigation and submit action and feedback reports to CBDT.
A risk analysis system will prioritise STRs and only highest risk reports will be investigated by the Investigation Wing. Until XML bulk exchange via Project Insight is stabilised, FIU IND will share data with the Directorate of Systems and only F1 STRs will be transmitted over FINnet to designated users. Investigation Directorates must take immediate action on F1 STRs and submit action taken reports and prescribed feedback to CBDT; other high risk STRs identified by the STR Risk Profiling Committee will be notified subsequently.

Deemed filing deadline extension under section 119(2) relieves regional taxpayers from interest charges and allows retrospective processing.
The Board, invoking its powers under section 119(2), directs that taxpayers whose return and audit report for AY 2018-19 were due on 31.10.18 and who file up to 28.02.19 shall be deemed to have filed by 31.10.18. Returns filed in the relevant window shall be exempt from interest under section 234A. Unprocessed returns will be processed and already processed returns will be rectified by CIT-CPC or the concerned jurisdictional authority under section 154. Relief is limited to taxpayers of the affected region with the specified due date.

GST liability for business facilitator services: banking companies liable for GST on customer service charges; RBI classification governs rural exemptions.
Under RBI guidelines banks appoint BF/BC, pay commission, prohibit BF/BC from charging customers, and account for transactions in the bank's books; the banking company is the service provider and liable to pay GST on the entire service charge or fee charged to customers. For the rural-branch exemption, services by BF/BC must fall under Heading 9971 and relate to accounts of a branch classified as rural under RBI guidelines, with the bank's RBI-based classification being accepted for exemption purposes.

GST exemption for food services by educational institutions applies when supplied directly; contracted supplies attract the prescribed rate.
Supplies of food and beverages made directly by an educational institution to its students, faculty and staff are exempt from GST under the exemption notification where the description leaves no doubt; supplies of food and beverages provided to the same beneficiaries by any person other than the educational institution under a contractual arrangement are subject to the prescribed rate. The circular instructs that rate entries and exemption entries be read together and notes recent amendments to clarify the scope of the rate and exemption entries.

Classification of photographic printing services: must be treated as photographic processing and charged the corresponding GST rate.
Printing of pictures falls within Photographic and videographic processing services (service code 998386) because Explanatory Notes include colour printing of images from film or digital media and related photographic processing activities, and 998912 expressly excludes such colour printing; therefore, printing of pictures must be classified under 998386 and charged the GST rate applicable to that service code.

Foreign office establishment: FCRA-covered activities require FCRA registration and bar FEMA permission for such activities.
Entities seeking to establish a Branch Office, Liaison Office, Project Office or other place of business in India must not undertake activities covered by the Foreign Contribution (Regulation) Act, 2010 and must declare they will not do so; applicants engaged in FCRA activities must obtain FCRA registration and shall not seek permission under the FEMA Regulations. The Form FNC now contains a declaration that misrepresentation will render RBI approval void ab initio and subject to withdrawal.

Immunity from tax: services of multilateral development banks exempt from GST, not extended to agents or contractors.
Services supplied directly by international financial institutions are exempt from GST by virtue of statutory immunities in their enabling Acts, which render the institutions, their assets, operations and transactions immune from taxation and from obligations to collect or pay tax. This exemption has been administratively and judicially recognized and does not extend to entities appointed by or acting on behalf of those institutions.

GST exemption for educational institutions: long duration IIM programmes conferring recognised qualifications are exempt, short courses taxable.
IIMs are treated as educational institutions under the relevant tax notification because they can award legally recognised degrees/diplomas; services to students in long duration programmes of one year or more that confer such qualifications are exempt from GST, whereas short duration executive or need based programmes awarding only participation certificates are not exempt and attract standard GST. The circular outlines transitional treatment where specific and general exemption entries coexisted, permitting selection of the more beneficial exemption during the overlap.

GST on micro irrigation systems affirmed: sprinkler and drip installations including laterals attract the applicable combined GST rate.
The GST schedule entry for micro irrigation systems encompasses both sprinkler and drip irrigation systems and explicitly includes laterals, nozzles and other system components; sprinkler systems consisting of nozzles, laterals and associated parts are therefore liable to the GST rate designated for micro irrigation.

GST classification clarifications: product form and end-use determine whether concessional, nil or standard rates apply.
Clarifications specify applicable GST rates and classification rules: Sattu under HSN 1106 is nil-rated if unbranded and concessional if branded; fish meal and MBM under 2301 attract the notified higher rate as raw inputs; feed supplements are classified by form and use into chapter 23 or 29; bulk LPG supplied for domestic bottling qualifies for the domestic concessional entry; PP woven/non-woven bags with BOPP classify under HS 3923 at the standard rate; wood logs for pulping fall under HS 4403 at the standard rate; bagasse boards (plain or laminated) qualify for concessional treatment; embroidered three-piece fabric sets remain fabrics at the fabric rate; waste-to-energy concessions apply only to goods in chapters 84,85,94 used for initial plant set-up; turbochargers class under HS 8414 at the standard rate; interstate movement of machinery on own account without transfer is not a supply.

GST refund procedure modernisation: electronic upload replaces mandatory physical filing and controls refund computation under Net ITC.
Procedural change: all documents for FORM GST RFD-01A must be uploaded on the common portal at filing; ARN issues only after uploads and ledger debits, and the application is electronically transferred to the jurisdictional proper officer for acknowledgement or deficiency memo. Net ITC for inverted duty refunds includes ITC on all inputs in the relevant period, regardless of rate, and the rule 89(5) formula determines maximum refund; refunds do not include tax on input services or capital goods. Compensation cess refunds for zero rated exports under bond/LUT are recomputed for past periods as if cess credit were available earlier, with specified exclusions.

Export of services under GST: outsourced foreign supplier portion treated as export; Indian supplier liable for IGST on reverse charge.
An Indian supplier outsourcing part of an export contract to a non resident creates two supplies: an export by the Indian supplier for the full contract value and an import of services for the outsourced portion. The Indian supplier must pay integrated tax under reverse charge on the imported portion and may claim input tax credit. Even if part consideration is paid abroad directly to the non resident supplier, the full contract value can be treated as export provided reverse charge tax is paid and foreign retention of consideration is permitted by the RBI.

Composition scheme eligibility: denial may be effective from contravention date and triggers tax determination and credit rules.
Rule 6 prescribes that a composition election remains valid while conditions are met; withdrawal requires FORM GST CMP-04 with an effective date not earlier than the financial year's start. Denial follows a show cause process (FORM GST CMP-05/06) and an order in FORM GST CMP-07 within thirty days, with the effective date of denial set by authorities but not earlier than the contravention date. On denial, tax determination proceedings must be initiated for the period from contravention to the order, the taxpayer is liable as a normal taxable person from the order date, and input credit entitlement is governed by the Act for the day before the order.

Taxability of government disposals: government departments must register and pay GST on supplies to unregistered recipients.
Intra State and inter State disposals by government entities of used, seized or scrap goods are taxable; supplies to unregistered recipients require government departments to register and pay GST. Penalty under assessment provisions is not automatically leviable for late GSTR 3B filing where tax plus interest has been paid; a general penalty may be imposed. Debit/credit notes for pre appointed day supplies are taxed at GST rates. Entities with majority government control must deduct tax at source. TCS collected under Income Tax is includible in GST valuation. Ownership of goods for enforcement depends on accompanying documents or proper officer determination.

Electronic authorisations: Advance and EPCG authorisations will be transmitted to customs electronically; printed security-paper copies discontinued.
DGFT will discontinue printed Advance and EPCG authorisations for registrations at EDI ports; such authorisations will be transmitted electronically to the Customs ICES server and visible to officers handling registration, assessment, examination, debits and shipping processes. Holders need not present physical copies but must provide IEC and authorisation numbers to designated port officers; bond/bank guarantee determination and registration procedures remain unchanged and special conditions will be reflected in ICES. Amendments and invalidations will likewise be updated electronically, and the prior Customs ARO/invalidation procedure is withdrawn.

Public grievance mechanism nominated for Chennai II customs, designating an officer as grievance officer with contact for redressal.
Nomination of a Public Grievance Officer for Chennai II Commissionerate under IS 15700:2005. The Assistant Commissioner of Customs (Admin.) is designated as the officer responsible for redressal, with specified office address, telephone and email. The Commissioner of Customs, Chennai II is designated as Head of the Public Grievance Mechanism to oversee grievance handling and accountability within the Commissionerate.

Electronic transmission of Advance/EPCG authorisations allows customs processing without security-paper copies, limiting use to EDI ports.
Physical security-paper printing of Advance and EPCG authorisations is discontinued for registrations at EDI ports; DGFT will electronically transmit authorisation details and any special conditions to the Customs ICES server for visibility by officers handling registration, assessment, examination and debits. Registration processes and determination of bond/bank guarantees remain unchanged except that holders must present IEC and authorisation numbers for ICES verification. Amendments and invalidations will be updated electronically and prior Customs ARO/invalidation procedure is withdrawn. Electronically issued authorisations for EDI ports cannot be used at non-EDI ports and will not have TRA facility; physical copies continue for non-EDI ports.

Discontinuation of security-paper issuance for Advance and EPCG authorisations enables digital issuance for EDI-registered ports.
Discontinuation of printing on security paper for Advance Authorisations and EPCG Authorisations is announced for authorisations whose port of registration is an EDI port; DGFT has replaced issuance on security paper with electronic issuance for such authorisations, operative for authorisations issued from 01.03.2019 where the port of registration is an EDI port.

Eligible SGST replacement for VAT incentives requires certification and verification to determine interest free loan entitlement.
Certification protocol replaces VAT based interest free loans and VAT/CST reimbursements with the SGST component for periods after GST implementation. Eligible Gross SGST is drawn from outward supplies in Form GSTR 3B but excludes turnover whose SGST becomes ITC for buyers who make interstate supplies or exports, inter unit duplicate transactions, and unprocessed traded goods. Net SGST equals SGST paid in cash plus net SGST settlement (IGST credit used for SGST minus SGST credit used for IGST) as reflected in GSTR 3B. Local officers must verify returns, obtain buyer declarations, quantify eligible amounts and recommend certification to the Commissioner; over claims will be adjusted.

Amendment to MEIS updates HS codes to align the export incentive schedule with revised ITC HS nomenclature.
Amendment to the Merchandise Exports from India Scheme updates specific ITC HS codes in Appendix 3B, Table 2 for silicon electrical steel products (hot-rolled and cold-rolled) to more specific HS subheadings, effective from the previously notified implementation date, as corrective harmonisation with the revised ITC HS 2017 nomenclature.