IGST refund validation errors prompt a targeted drive to prioritize processing and rectification of pending refund claims.
An administrative IGST refund drive will prioritise processing shipping bills validated by GSTN but pending disbursement due to error codes SB001-SB006 and PFMS validation failures. Exporters must check ICEGATE for validation status. Rectification procedures: EGM errors (SB002, SB006) require EGM Cell engagement and EDI job numbers; invoice mismatches (SB005) require a request letter, a concordance table and SC-34 payment; PFMS errors require updating bank details via ICEGATE. The drive runs from 01 July to 15 July, 2024 and submissions are to the IGST Refund & Drawback Section with a named nodal officer for difficulties.

Launch of ICES 1.5 at AFS SDB Surat: mandatory electronic filing, e SANCHIT IRNs, automated assessment and bond/license ledgering.
Launch of ICES 1.5 at AFS, SDB Surat enables fully electronic processing of Bills of Entry, Shipping Bills and supporting documents: mandatory upload via e SANCHIT with IRNs before submission; ICEGATE/RES digital filing using Class III DSCs; automated assessment, appraising group workflows, RMS facilitation, concurrent audit and post clearance verification; registration and automatic ledgering/debiting of DGFT licenses, DEPB/EPCG/Advance Authorisations and Bonds/BGs; prescribed coding standards, fee schedules and procedural rules for import/export clearance.

Drawback claims procedure streamlined: mandatory document set, registration, deficiency memo timelines, acknowledgements, and NOC verification.
Claims under section 74 require submission of mandatory documents (Annexure II; calculation/drawback sheet; self attested shipping bill, export and import invoices and packing lists; PMV declaration; system OOC Bill of Entry; TR 6 challan; notarized affidavit; and, as applicable, RBI permission and GST certification). The Drawback Section will register claims in a dedicated register, issue a Deficiency Memo within fifteen days for incomplete claims, provide an acknowledgement under Annexure B upon compliance, and deem claims time barred if the Deficiency Memo is not answered within thirty days plus the statutory period. NOC verification from TRC or the originating Customs House is required before processing.

Time of supply for spectrum services: GST arises on due or actual installment payments under reverse charge.
GST on spectrum allocation by government is payable by the telecom operator under reverse charge. Where deferred instalment payments create a continuous supply, the time of supply is the earlier of payment (entered in recipient's books or debited) or the date immediately following sixty days from issue of an invoice; Frequency Assignment Letters are bid-acceptance documents and invoices must be issued on or before ascertainable instalment due dates. GST is payable on upfront sums when paid or due, and on instalments when due or paid, whichever is earlier.

Time of supply for HAM road services: invoice date or payment receipt determines tax liability for construction and O&M.
For HAM contracts treated as a single continuous supply covering construction and O&M, the time of supply is the earlier of invoice date or receipt of payment where invoices are issued on or before the contract-specified due date or event-completion date. If invoices are not issued by that date, the time of supply is the earlier of the date of provision of the service (which may be the contract due date) or receipt of payment. Interest included in installments/annuities is includible in the taxable value.

Place of supply for custodial services: treat as non-account holder supplies, apply default recipient location rule under GST.
Custodial services by banks to FPIs-consisting of safekeeping and maintenance of securities accounts-are not services provided to an account holder for the supplier-location rule. By analogy to prior Service Tax guidance, custodial, depository and trust services are excluded from the account-holder category and therefore the place of supply must be determined under the default place-of-supply rule, i.e., by reference to the recipient's location where ascertainable and otherwise the supplier, within the IGST framework.

Input tax credit on ducts and manholes in optical fiber networks allowed as plant and machinery, ITC not barred.
Ducts and manholes used in optical fiber cable networks serve as necessary conduits and network nodes for transmission of telecommunication signals and, under the Explanation to Section 17, fall within the definition of plant and machinery. They are not specifically excluded as land, building, other civil structures, telecommunication towers or certain pipelines. Consequently, input tax credit on such ducts and manholes is not barred by the immovable-property exclusions in sub-section (5) of Section 17 and is available to taxable persons providing telecommunication services.

Related party loan interest exemption affirmed; processing fees for loan facilitation attract GST as taxable consideration when charged.
Loans or advances between related persons are supply under Schedule I, but services of extending loans are exempt insofar as consideration is only interest or discount; processing/administrative/service fees charged in addition to interest constitute taxable consideration for facilitation/processing services and attract GST, whereas absence of such fees between related parties does not give rise to a deemed taxable processing service or obligation to apply open market valuation.

Input tax credit entitlement for insurers affirmed where insurer bears approved repair liability despite reimbursement to the insured.
Where an insurer reimburses an insured for approved motor vehicle repair costs, the insurer is the liable party for the approved repair cost and therefore constitutes the recipient of the repair service to that extent; input tax credit on such repair services is available to the insurer. If two invoices are issued-one to the insurer for the approved cost and one to the insured for the excess-credit may be taken on the invoice to the insurer subject to reimbursement mechanics. If a single invoice is issued to the insurer but only the approved cost is reimbursed, credit is available only to the extent of the reimbursed approved cost. Credit is not available where the invoice is not in the insurer's name.

Extended warranty as service: sold separately or after original sale is taxable as a distinct service, supplier liable for GST.
Clarification extends prior guidance so that replacement of entire goods under warranty is treated like replacement of parts for GST and input tax credit (ITC) purposes; distributor replacement from own stock followed by manufacturer replenishment by delivery challan without consideration is not taxable and requires no ITC reversal by the manufacturer; and extended warranty supplied by a different person or sold after original supply is a distinct supply of services with the warranty supplier liable to discharge GST.

Salvage value taxation: GST applies when insurer acquires salvage on full claim settlement, otherwise not.
GST attaches only where a supply exists. If the insurer deducts salvage/wreck value from the claim (per contract), ownership of salvage remains with the insured and no GST liability arises for the insurer. If the insurer pays full claim amount without deducting salvage so that salvage vests in the insurer, the insurer must discharge GST on disposal or sale of the salvage.

Reversal of input tax credit clarified: non includible portion of life insurance premium is not treated as exempt supply.
The portion of life insurance premium excluded from taxable value under Rule 32(4) is not a nil rated, exempted or non taxable supply merely by virtue of its exclusion; accordingly, that portion does not trigger reversal of input tax credit under the reversal provisions applicable when supplies are exempt or non taxable, and no reversal is required for taxable life insurance policies.

GST on employee share transfers: cost reimbursements not import of services; markups or fees taxable on reverse charge.
Where a foreign holding company issues ESOP/ESPP/RSU directly to employees of its Indian subsidiary and the subsidiary reimburses only the cost of the securities on a cost-to-cost basis, such reimbursement is not a supply of goods or services and is not liable to GST; however, any additional fee, markup, or commission charged by the foreign holding company is taxable as consideration for facilitation/arrangement services and attracts GST payable by the domestic subsidiary on reverse charge basis.

Proportionate input tax credit reversal verification: suppliers may rely on CA/CMA certificates or recipient undertakings to evidence reversal.
The Circular clarifies that post-supply discounts excluded from taxable value require that the recipient has effected the proportionate reversal of input tax credit. Due to lack of portal verification, suppliers may obtain a CA/CMA certificate from the recipient detailing credit notes, related invoice numbers, ITC reversal amounts and the form/return evidencing reversal, with UDIN. For small-value discounts within a financial year, a recipient's undertaking with similar details is permissible. These certificates/undertakings are admissible evidence for tax officers and may be procured retroactively if required.

Reverse charge input tax credit: ITC timing follows the financial year of the recipient issued invoice, subject to tax payment.
Where tax is payable by the recipient under the reverse charge mechanism for supplies from unregistered persons, the relevant financial year for the time limit to claim input tax credit is the financial year in which the recipient issues the invoice under the recipient invoice requirement, provided the recipient pays the tax and satisfies other conditions and restrictions; delayed issuance after time of supply attracts interest on late tax payment and possible penal consequences.

Open market value: invoice value for import of services from related persons deemed where recipient eligible for input tax credit.
Where a registered person in India imports services from a related person abroad and the recipient is eligible for full input tax credit, the invoice value declared by the recipient may be deemed to be the open market value for valuation purposes; if no invoice is issued by the supplier, a declared nil value by the recipient may be treated as the declared value and deemed the open market value. Tax on such import of services is payable by the recipient under the reverse charge mechanism and the recipient must issue a self invoice.

Place of supply for unregistered persons: delivery address on the invoice determines tax jurisdiction, not billing address.
Place of supply for goods to unregistered persons is the recipient address recorded in the invoice, and where no recipient address is recorded, the supplier's location; recording the recipient's State on the invoice suffices. If billing and delivery addresses differ on the invoice, the delivery address on the invoice is the place of supply, and suppliers may record the delivery address as the recipient's address to determine the correct place of supply.

Special procedure compliance for manufacturers requires machine identification, certified energy ratings, and specified GST form filings.
Manufacturers under the revised special procedure must complete machine details in FORM GST SRM-I: make/model optional (year of purchase may substitute), machine number mandatory (assign a numeric identifier if none), and declare electricity consumption from machine records or via a Practicing Chartered Engineer certificate in FORM GST SRM-III uploaded with the form. For goods with no MRP, enter sale price in Table 9. The Chartered Engineer must hold a certificate of practice from the Institute of Engineers India. The procedure excludes SEZ units and manual packing; the final packing machine is to be reported, and job workers' compliance falls to the principal if they are unregistered.

Monetary limits for government appeals restrict departmental appeals to higher forums, subject to specified exclusions and merit review.
Prescribes monetary thresholds under the CGST Act below which Central Tax officers shall not file appeals or Special Leave Petitions, setting rules for aggregating disputed tax, interest, penalty, late fee and refund amounts for threshold application, and applying thresholds to composite orders on the total disputed amount. Enumerates exclusions where appeals may be filed irrespective of limits-including vires challenges to statutes, rules or instruments, recurring interpretative issues like valuation, classification, refunds and place of supply, matters with adverse comments or costs, and other cases the Board considers necessary-and stresses merits-based litigation and non-precedential effect of non-filing.

Tariff Rate Quota scheme updated to specify covered imports, quotas and eligible applicants under amended procedure.
Amendments revise the procedure for imports under the Tariff Rate Quota (TRQ) Scheme, mandating compliance with the stated Customs Notification and specifying HS-coded agricultural and dairy products with allocated TRQ quantities. Eligibility for quota allocation is tied to listed entities by commodity: dairy cooperatives for milk powder/cream; national and state agricultural cooperatives for maize; and dairy bodies, national agricultural cooperative, Central Warehousing Corporation, and state cooperatives for oils. Maize TRQ remains subject to a judicial order that conditions imports.