GST liability on salvage value in motor vehicle insurance claims turns on whether ownership stays with the insured or passes to the insurer.
GST liability on salvage or wreck value in motor vehicle insurance claim settlements depends on the insurance contract. If salvage value is deducted from the claim as a pre-agreed deductible and ownership remains with the insured, the insurer is not liable to pay GST on that salvage value. If the claim is settled for the full insured declared value without deduction and the salvage passes to the insurer, GST is payable on the outward supply arising from disposal or sale of the salvage.

Input tax credit reversal on life insurance premium excluded from taxable value is not required under GST rules.
The portion of premium in life insurance policies excluded from taxable value under Rule 32(4) of the Andhra Pradesh GST Rules, 2017 is not to be treated as a non-taxable supply or exempt supply. Mere exclusion from taxable value does not make that portion exempt, and therefore input tax credit reversal is not required under Section 17 read with Rules 42 and 43 in respect of such amount.

ESOP and RSU GST treatment clarified for foreign holding company share allocations and cost-to-cost reimbursements.
Clarification is issued on the GST treatment of ESOP, ESPP and RSU arrangements where a foreign holding company directly allocates shares or securities to employees of an Indian subsidiary as part of the compensation package. The circular explains that the transfer of shares or securities is not a supply of goods or services under GST, and that employee participation under the employment contract is outside GST under Schedule III. Cost-to-cost reimbursement by the subsidiary is not treated as import of services, but any additional fee, markup or commission charged by the foreign holding company is taxable as a facilitation or arranging service on reverse charge basis.

Reversal of Input Tax Credit: interim certificate requirement for post supply discounts to validate exclusion from taxable value.
Where suppliers issue tax credit notes post supply, the discount is excludable from taxable value only if it meets the Section 15(3)(b) conditions including proportionate reversal of input tax credit by the recipient; until portal verification exists, suppliers must obtain a CA/CMA certificate (with UDIN) from the recipient detailing credit notes, relevant invoices, ITC reversal amounts and supporting FORM GST DRC 03/return evidence, or where tax involved is below a low threshold, an undertaking from the recipient; such documents constitute admissible evidence and must be produced to tax officers on demand.

Reverse charge input tax credit timing: ITC tied to the financial year of recipient-issued invoice, subject to tax payment and conditions.
Where a registered recipient must self-issue an invoice and pay tax in cash under the reverse charge mechanism for supplies from unregistered persons, the relevant financial year for the time limit to avail input tax credit is the financial year in which the recipient issues that invoice, provided tax is paid and other statutory conditions for ITC are fulfilled; delayed issuance and delayed tax payment attract interest and may attract penal consequences.

Valuation of import of services: invoice-declared value deemed open market value where recipient claims full input tax credit.
Where a registered person in India imports services from a related person outside India and is eligible for full input tax credit, the value declared in the recipient's invoice/self-invoice shall be deemed to be the open market value under the second proviso to Rule 28(1). The recipient must pay tax under reverse charge and issue a self-invoice; if no invoice is issued and the recipient declares Nil, that Nil declaration may be treated as the open market value for valuation purposes.

Place of supply for unregistered recipients follows the delivery address recorded on the invoice, not the billing address.
Clause (ca) to Section 10(1) of the IGST Act makes the invoice-recorded address of an unregistered person the determinative place of supply, and where invoice records no address the supplier's location applies; recording the State name suffices. For supplies (including via e-commerce) where billing and delivery addresses differ, the delivery address recorded on the invoice shall determine the place of supply, and suppliers may record the delivery address as the recipient's invoice address for that purpose.

Special procedure compliance for manufacturers requires machine identification, certified electricity ratings, and principal liability for unregistered job workers.
The circular clarifies compliance under the special procedure of Notification No. 03/GST-2: make and model in Table 6 of FORM GST SRM-I are optional (year may substitute for make), machine number is mandatory and may be assigned if absent; electricity consumption must be declared from machine records or certified per-hour by a Practicing Chartered Engineer in FORM GST SRM-III and uploaded; sale price is to be entered where no MRP exists in Table 9; SEZ units and manual packing/sealing are excluded; report final packing machine in Table 6; job workers are covered but the principal manufacturer bears liability if the job worker is unregistered.

Monetary limits for government appeals restrict departmental appeals, subject to specified exclusions and merit-based exceptions.
Fixes monetary thresholds below which State tax officers shall not file appeals or Special Leave Petitions under the HGST Act, prescribes principles for computing the amount in dispute (tax, interest, penalty, late fee, or refund), applies aggregation rules for composite orders, and lists exclusions requiring appeals on merits irrespective of thresholds. It mandates recording reasons for non-filing, clarifies non-precedential effect of non-filing and absence of departmental acquiescence, and requires departmental counsel to inform tribunals or courts that non-filing was due to monetary limits.

Form A2 requirement: all cross border remittances must be supported by Form A2, irrespective of transaction value.
Authorised Dealers must obtain Form A2, physical or digital, for all cross border remittances irrespective of transaction value, replacing prior permissive practice that allowed release of foreign exchange on a simple letter for lower value transactions. The earlier circulars permitting limited documentary requirements are withdrawn. Authorised Dealers must continue to ensure transactions do not contravene the Foreign Exchange Management Act and inform their constituents; the directions are issued under the Act and do not affect other statutory permissions.

Online Form A2 remittances allowed without amount limits, subject to FEMA conditions and KYC compliance.
All Authorised Dealers may accept remittances on the basis of online or physical submission of Form A2 with no limit on the remitted amount, subject to Section 10(5) of FEMA 1999. Authorised Dealers must adopt Board approved guidelines, comply with FEMA and the Master Direction on KYC, and continue reporting transactions in FETERS; directions are issued under sections 10(4) and 11(1) of FEMA without prejudice to other legal permissions.

Adjudication monetary limits align central excise and GST show cause notices on tobacco to a single adjudicating authority.
A tiered adjudication scheme sets monetary limits for issuing show cause notices and adjudication of central excise duty/CENVAT credit for Chapter 24 commodities: Superintendents up to twenty lakh, Deputy/Assistant Commissioners above twenty lakh up to two crore, and Additional/Joint Commissioners above two crore. The limits apply to notices issued from 01.07.2017 pending adjudication; otherwise prior circular limits prevail. Central Excise notices arising alongside GST notices will be assigned to the CGST adjudicating authority so the same or a senior authority decides both matters, with specified assignment powers for senior Commissioners and DGGI officers.

Salvage or wreck value taxability in motor insurance claims is subject to uniform goods and services tax guidance.
Taxability of salvage or wreck value earmarked in insurance claim assessments for motor-vehicle damage is clarified for uniform implementation of goods and services tax law. State tax officers are instructed to follow the attached central guidelines on the treatment of such salvage or wreck value in claim assessments relating to damaged motor vehicles.

Input tax credit reversal for excluded life insurance premium portions must follow central GST guidelines for uniform implementation.
Input tax credit reversal relating to the portion of life insurance premium excluded from taxable value is to be administered in accordance with the applicable central GST clarification. Field officers are instructed to follow those guidelines to ensure uniform implementation under the Tripura State Goods and Services Tax Act.

ESOP, ESPP and RSU GST treatment requires uniform application of clarification for employee share-based benefits involving overseas holding companies.
GST treatment of employee stock option plans, employee stock purchase plans and restricted stock units supplied by an overseas holding company to employees of a company is clarified for consistent implementation. State tax officers are instructed to follow the referenced central guidelines for uniform application of the State GST law concerning such employee share-based benefits.

Input tax credit reversal verification: suppliers must secure CA/CMA-certified evidence or recipient undertaking before excluding post-sale discounts.
Where portal verification of proportionate reversal of input tax credit for post-supply discounts via tax credit notes is unavailable, the supplier may obtain a CA/CMA certificate from the recipient certifying reversal, specifying credit note and invoice details, ITC reversal amounts and the documentary route (e.g., FORM GST DRC-03 or returns), and containing a UDIN; for smaller aggregate tax amounts an undertaking from the recipient with the same particulars is acceptable. Such certificates/undertakings constitute admissible evidence of compliance and must be produced to tax authorities when required.

Time limit for input tax credit clarified - invoice issuance year governs ITC availment for RCM from unregistered suppliers.
Clarifies that for supplies from unregistered persons where tax is payable by the recipient under the reverse charge mechanism, the registered recipient must issue the invoice and pay tax; the relevant financial year for the time limit to avail input tax credit is the financial year in which that recipient-issued invoice is issued, subject to payment of tax and other statutory conditions. Delayed issuance after time of supply attracts interest and possible penal consequences.

Valuation of import of services: invoice value deemed open market value where recipient has full input credit under reverse charge.
Where a recipient of imported services from a related foreign person is eligible for full input tax credit, the value declared in the invoice by the recipient shall be deemed to be the open market value of those services. The recipient must pay tax under the reverse charge mechanism and issue a self-invoice; if no invoice is issued by the recipient for particular services, the recipient may deem the value as Nil, which shall be treated as the open market value for valuation purposes.

Place of supply for unregistered persons: delivery address on the invoice determines the place of supply; record delivery address.
For supplies of goods to unregistered persons the place of supply is the location as per the recipient's address recorded in the invoice, and where no such address is recorded the supplier's location applies; recording the recipient's State on the invoice is deemed to be recording the address. Where billing and delivery addresses differ on the invoice, the place of supply is the delivery address, and suppliers may record the delivery address as the recipient's address for this purpose.

Time of supply for spectrum usage services requires field officers to follow uniform GST implementation guidelines.
Time of supply for spectrum usage and similar services under GST is clarified through the adoption of central GST guidelines for uniform implementation by State tax field formations. Specified State tax officers are instructed to follow the annexed central guidelines concerning the time of supply of spectrum usage and other similar services.