Time of supply in hybrid annuity highway contracts follows invoice or payment timing, treating construction and maintenance as continuous services.
Hybrid Annuity Model highway contracts are treated as a single continuous supply of services comprising construction and operation and maintenance, rather than separate contracts based on payment terms. Where invoices are issued by the specified contractual date or event-completion date, time of supply is the earlier of invoice issuance and payment receipt. If invoicing is delayed, it is the earlier of service provision, treated for continuous supplies as the contractual payment due date, and payment receipt. Interest included in annuity instalments is included in taxable value.

Input tax credit for optical fiber network ducts and manholes remains available as plant and machinery.
Input tax credit on ducts and manholes forming part of an optical fiber cable network for telecommunication services is not restricted under section 17(5)(c) or (d) of the TNGST Act. These components house cables, operate as network nodes, and facilitate cable installation and maintenance. They form part of plant and machinery used for making outward supplies and do not fall within exclusions relating to land, buildings, civil structures, telecommunication towers, or pipelines outside factory premises.

Related-party loan transactions: interest-only lending remains exempt, while separately charged processing or administrative fees attract GST.
Loans, credit or advances between related persons constitute supplies, but interest or discount charged for extending them is exempt from GST. Where no amount other than interest or discount is charged, no separate loan-processing, facilitation or administrative service may be imputed merely because the parties are related, and no notional open-market value applies. Separately charged processing fees, administrative charges, service fees or loan-granting charges are consideration for taxable services.

Motor repair ITC allows insurers credit on approved reimbursement claims when invoices identify them as recipients.
Input tax credit is available to a general insurer for motor-vehicle repair services in reimbursement-mode claim settlements, to the extent of its approved repair liability, where the garage issues the invoice in the insurer's name. The insurer remains the recipient to that extent even if the insured first pays the garage and is later reimbursed. Where repair charges exceed the approved claim cost, credit is restricted to the amount reimbursed by the insurer. Credit is unavailable where the repair invoice is not issued in the insurer's name.

Extended warranty taxation distinguishes composite goods supplies from separate service supplies and preserves ITC treatment for warranty replacements.
Warranty replacement treatment applies to replacement of entire goods as well as individual parts. Where a distributor replaces goods or parts from its own stock on behalf of a manufacturer and receives replenishment without separate consideration, no GST is payable on the replenishment and the manufacturer need not reverse input tax credit. Extended warranty supplied by the same supplier at the original sale forms part of a composite supply of goods; where supplied by another person, or after the original sale, it is a separate supply of services.

GST classification clarification: specified goods' applicable rates confirmed and past-period doubts regularized on an as-is-where-is basis.
Clarifications address classification and GST rates for specified goods and regularisation of past-period doubts. Solar cookers using solar and grid power are classified under the relevant machinery heading and attract the prescribed rate. All sprinklers, including fire water sprinklers, attract the prescribed rate and past-period issues are regularized on an as-is-where-is basis. Parts of poultry keeping machinery are explicitly included in the rate schedule and regularized retrospectively. The definition of pre-packaged and labelled excludes agricultural produce in packages over twenty-five kilogram or litre, altering levy applicability, with past-period regularisation. Supplies to or by government agencies for approved subsidy programmes are regularized subject to certification and Input Tax Credit reversal conditions.

Refund entitlement for CSD on inward supplies allowed via new electronic procedure with eligibility and validation requirements specified.
CSDs may file refund claims electronically in FORM GST RFD-10A for fifty per cent of tax paid on inward supplies received for subsequent supply to Unit Run Canteens or authorized customers; claims must be filed quarterly (or clubbed), supported by supplier- and CSD-GSTIN-bearing invoices, an undertaking and declaration, and are permissible only where suppliers have reported the invoices in GSTR-1 and filed GSTR-3B. Proper officers will validate GSTINs and returns, match invoices with portal records (including GSTR-2B), restrict sanctioned refunds to 50% of applicable taxes with portal auto-population (editable downward only), verify ITC reversal where applicable, and issue orders in FORM GST RFD-06.

Refund of additional IGST for post-export price revisions allowed via FORM GST RFD-01, processed by the jurisdictional GST officer.
Procedure for refund of additional IGST paid on account of upward revision in export prices: exporters may file FORM GST RFD-01 electronically for refund processed by the jurisdictional GST officer under rule 89, uploading Statements 9A and 9B and documentary evidence including shipping bills, invoices and proof of payment and foreign exchange remittance; GSTN will provide validated shipping bill and customs refund data to assist verification and the proper officer will scrutinize reporting in outward supplies and GSTR-3B before issuing refund sanction and payment orders.

Valuation of corporate guarantee: annual deemed value or actual consideration governs GST liability on issuance and renewals.
For guarantees issued or renewed on or after the amendment, valuation of the service of providing a corporate guarantee to a banking company or financial institution for a related recipient is the higher of actual consideration and a deemed annual benchmark based on the amount guaranteed multiplied by the number of years the guarantee covers; proportionate valuation applies for periods shorter than a year, and tax is payable on issuance and on each renewal. The value is determined by the amount guaranteed irrespective of actual loan disbursal, and where full input tax credit is available the invoice value is deemed the value of supply.

Pre-deposit stay on recovery: payment via electronic liability ledger or DRC 03A with undertaking suspends recovery until tribunal operates.
Where the first appellate authority has confirmed a demand but the Appellate Tribunal is not yet constituted, taxpayers who intend to appeal may secure a stay on recovery of the remaining confirmed demand by paying an amount equal to the required pre-deposit via the Electronic Liability Ledger (Services Ledgers Payment towards demand) and by submitting an undertaking to the proper officer to file the appeal before the Tribunal when it becomes operative. Payments inadvertently made through FORM GST DRC 03 can be regularised by filing FORM GST DRC 03A on the portal, allowing such payments to be adjusted as pre-deposit; until FORM GST DRC 03A is available, taxpayers may notify proper officers to defer recovery.

CSD refund entitlement: electronic filing with FORM RFD-10A, invoice validation and partial tax refund cap enforced.
CSDs must file refund claims electronically in FORM GST RFD-10A on the common portal, applying quarterly (with an option to club quarters/FYs). Refunds are admissible only for inward supplies received from registered suppliers who have furnished GSTR-1 and filed GSTR-3B; invoices must show supplier GSTIN and CSD GSTIN and be accompanied by an undertaking and declaration. The proper officer will validate invoices against GSTR-2B/GSTR-1/GSTR-3B, exclude already-refunded invoices, ensure a partial tax refund cap, verify ITC reversals, and issue orders in FORM GST RFD-06 with a speaking order.

IGST refund mechanism for post-export price increases: exporters file FORM GST RFD-01; jurisdictional GST officers process claims.
Refunds of additional IGST paid due to upward post-export price revisions are claimable by exporters via FORM GST RFD-01 filed electronically; jurisdictional GST officers will process such claims under rule 89 using GSTN-provided shipping bill and IGST data. Claims require specified documentary proof-shipping bills, original and revised invoices or debit notes, contract evidence, proof of additional IGST and interest payment, foreign exchange remittance (FIRC) and a practising accountant's certificate-and the officer must verify reporting in FORM GSTR-1 and FORM GSTR-3B before issuing a speaking sanction and payment order.

Valuation of corporate guarantee services: GST based on higher of actual consideration or annual percentage of amount guaranteed, with charge mechanics clarified.
The provision of corporate guarantees between related persons to banks or financial institutions is taxable and, for guarantees issued or renewed on or after 26 October 2023, valuation is governed by Rule 28(2). The value equals the higher of actual consideration and one per cent per annum of the amount guaranteed (pro rata for periods under a year and multiplied by years for multi year guarantees). Tax is payable on issuance and on each renewal; domestic intra group guarantees are forward charged with invoicing, foreign issued guarantees to Indian recipients attract reverse charge, and recipients may claim input tax credit subject to conditions.

Pre-deposit payment stay on recovery: electronic ledger payment and undertaking pause recovery until tribunal is operational.
If the Appellate Tribunal is not operational, taxpayers can secure a stay of recovery by paying an amount equal to the pre-deposit via Services Ledgers Payment towards demand, which maps the payment in Electronic Liability Register Part II against the selected order, and by filing an undertaking to appeal before the Tribunal when it is constituted. Payments inadvertently made through FORM GST DRC-03 can be adjusted towards the pre-deposit upon filing FORM GST DRC-03A (subject to exclusions where FORM GST DRC-05 has been issued); absence of payment, undertaking, or timely DRC-03A filing permits recovery under the CGST Act.

Interest Equalisation Scheme extension clarified: cap per IEC specified, applies only to MSME manufacturer exporters, no new UIN.
Clarification to the extended Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit caps the benefit at Rs. 1.66 crore per IEC for 1 July 2024 to 31 August 2024, restricts applicability to MSME Manufacturer Exporters eligible for the 3% IES benefit (excluding MSME merchant exporters eligible for 2%), and confirms no revised UIN is required where a FY 2024-2025 UIN already exists.

Waiver of late fees for bills of entry due to licence non transmission at Chennai ports between 26 Jun-6 Jul.
Late fees are waived for bills of entry filed against 55 EPCG and DEEC (Advance Authorisation) licences that were not transmitted from DGFT to ICEGATE/ICES, causing filing difficulties from 26 June 2024 to 6 July 2024; the transmission issue was rectified on 07 July 2024. The waiver applies to bills of entry for vessels with entry inwards at Chennai Seaport, Kattupalli Port and Ennore Port for the stated period, the Public Notice is treated as a Standing Order, and remaining difficulties should be reported to the Assistant Commissioner of Customs (Appraising Main), Chennai-II (Import).

Exchange rate error caused excess export incentives; stakeholders must reverse amounts with interest and provide proof to customs.
An incorrect USD rate was fed into ICES on 07-09-2023, causing 464 shipping bills across INTUT1 and INTUT6 to receive excess Drawback, RoDTEP and RoSCTL. Stakeholders must reverse the excess amounts with interest and submit proof and detailed calculation worksheets to the Drawback & IGST Refund Section; non-compliance will invite fines and penalties under the Customs Act 1962. Detailed lists of affected shipping bills are enclosed and a contact is provided for difficulties.

SCOMET applicability clarified: spherical aluminium powder and reactive aluminium powders require SCOMET licensing, with lab or inspection verification allowed.
DGFT clarifies that spherical or spheroidal aluminium powder under categories 3A301.c and 6A008.c is subject to SCOMET, with government or NABL accredited laboratory reports acceptable for shape and size determination. Aluminium powder that is reactive in nature under 6A008.h is subject to SCOMET regardless of size or shape; powders made under vacuum or using noble gases may be considered reactive. Customs may verify by factory inspection or accept exporter documentary proof to its satisfaction.

Proper officer designation shifted to Superintendent of Central Tax, reallocating registration and composition levy functions and requiring trade notices.
Functions relating to registration and composition levy under specified provisions of the CGST Act and associated CGST Rules are reassigned to the Superintendent of Central Tax, replacing prior assignment to Assistant or Deputy Commissioners/Directors; recipients must issue trade notices and report implementation difficulties to the Board.

Liberalised Remittance Scheme expanded: resident individuals may use IFSC foreign currency accounts for broader financial and cross-border transactions.
Remittances under the Liberalised Remittance Scheme to IFSCs are expanded: resident individuals may open Foreign Currency Accounts in IFSCs to avail financial services or products within IFSCs and to conduct all permissible current and capital account transactions in other foreign jurisdictions through such FCAs; Authorised Persons must inform customers and the Master Direction on LRS will be updated, subject to other legal permissions.