Input Tax Credit reconciliation: procedures to verify ITC claimed in GSTR 3B when not reflected in GSTR 2A, including documentary proof requirements.
Procedure to resolve differences between ITC claimed in FORM GSTR 3B and ITC appearing in FORM GSTR 2A for FY 2017 18 and 2018 19: proper officers must obtain invoice details and verify Section 16 eligibility (possession of tax invoice, receipt of goods/services, payment to supplier), check reversals under Sections 17/18 and timeliness under Section 16(4). To verify supplier tax payment, higher-value discrepancies require a CA/CMA certificate with UDIN, while lower-value discrepancies may be substantiated by a supplier declaration. Guidance applies to bona fide errors and ongoing proceedings only.

GST refunds for unregistered recipients permit recovery of tax on cancelled supplies when credit notes are unavailable.
Unregistered recipients may seek GST refund for tax borne on cancelled construction-service agreements or terminated long-term insurance policies only when the period for supplier-issued credit notes has expired. The applicant must obtain temporary registration, complete Aadhaar authentication, file FORM GST RFD-01 with statement 8, supplier certification and supporting evidence, and use a PAN-linked bank account. The supplier's cancellation letter determines the relevant date for incomplete long-term supplies. Refund is limited to invoice tax and, where consideration is partly returned, to proportionate tax.

No Claim Bonus reduces taxable insurance premium, while e-invoice exemption applies across all supplies made by an exempt entity.
No Claim Bonus does not represent consideration for a supply by the insured, since the insured is not contractually obliged to refrain from making an insurance claim. Where disclosed in the policy and recorded in the invoice, No Claim Bonus is an admissible discount for valuing insurance services, and GST applies to the premium payable after that deduction. The exemption from mandatory e-invoicing for specified entities applies to the entity as a whole, covering all its supplies of goods and services.

Re-determination under section 73 must be completed within prescribed limitation and limited to timely-issued notices.
The proper officer must issue any order re-determining tax, interest and penalty within two years of communication of the appellate direction, and may re-determine only those amounts (tax short-paid or not paid, wrongly availed or utilized input tax credit, or erroneous refund) where the original show-cause notice was issued within the limitation period applicable to non-fraud assessments; amounts where the non-fraud limitation had already expired are time-barred and the proceedings must be dropped.

Place of supply rule: transportation to foreign destination is an inter State supply and IGST charged creditable to recipient.
Where both supplier and recipient are in India but goods are transported to a place outside India, the place of supply for transportation services is the foreign destination under the proviso to sub section (8) of section 12 of the IGST Act; such supplies are inter State and subject to IGST, and the recipient in India may claim input tax credit of the IGST charged subject to the conditions and apportionment rules in sections 16 and 17 of the RGST Act. Suppliers must report the place of supply as '96 Foreign Country' in Form GSTR 1.

Input Tax Credit verification: documentary proof and professional certification required where GSTR 3B and GSTR 2A reconciliation differs.
Where ITC claimed in Form GSTR 3B is not reflected in Form GSTR 2A for FY 2017 18 and 2018 19, the proper officer shall obtain invoice details from the claimant, verify possession of invoices, receipt of goods/services and payment to supplier, check for required reversals and timeliness, and confirm tax has been paid by the supplier. For larger aggregate discrepancies a CA/CMA certificate with UDIN is required; for smaller discrepancies a supplier certificate suffices. Relaxations are subject to a proviso for certain late FY 2017 18 returns. Applicability is limited to bona fide errors and ongoing proceedings.

Retrospective repeal of refund rule prompts withdrawal of prior circular clarifying airport retail refund procedure.
Retrospective omission of rule 95A eliminated the statutory basis for certain airport retail refund claims, prompting the Commissioner to withdraw, ab initio, Circular No. 106/25/2019-GST which had provided clarifications; trade notices are requested to publicize the withdrawal.

Export electricity ITC refunds use scheduled-energy records, contractual tariffs, and prescribed turnover rules for zero-rated supply claims.
Refunds of unutilised input tax credit for export of electricity require electronic filing of FORM GST RFD-01 under the "Any Other" category, with Statement 3B, scheduled-energy records, tariff agreements and refund calculations. The relevant date is the last day of the export month reflected in the Regional Energy Account. Export turnover is based on scheduled energy and contractual tariff, using the lower quantity where invoices and scheduled-energy records differ. Domestic electricity turnover is excluded from Adjusted Total Turnover, and ITC used for domestic exempt supplies must be excluded.

Electronic credit ledger re-credit allows restoring equivalent credit after erroneous refund repayment with interest, penalty, and officer verification.
Electronic credit ledger re-credit is available when a registered person repays an erroneous refund through FORM GST DRC-03 by debit to the electronic cash ledger, with applicable interest and penalty. It covers specified erroneous IGST and unutilised input tax credit refunds. Until automated portal functionality is available, a written Annexure-A request is required. On verification of full payment, the proper officer re-credits only the refund amount through FORM GST PMT-03A, preferably within 30 days from the later of the request or full payment.

Refund of accumulated input tax credit allowed where concessional notification causes output tax to be lower than input tax.
Refund of accumulated input tax credit is allowable where accumulated ITC arises because output supplies attract a lower tax rate than inputs due to a contemporaneous Government concessional notification. Such refunds are permissible under clause (ii) of the first proviso to sub section (3) of section 54 of the JGST Act, except where output supplies are nil rated or fully exempt or are otherwise notified for exclusion.

GST input tax credit and ledger utilisation clarify refund treatment, blocked credits, employee perquisites, and permissible payment liabilities.
Credit made available to recipients of deemed export supplies solely to process refund claims is not ordinary input tax credit, is outside section 17 restrictions, and is excluded from Net ITC computations. The employee-benefit proviso applies across the relevant blocked-credit clause, while leasing restrictions cover only specified motor vehicles, vessels, and aircraft. Employer-provided perquisites under employment contracts are outside GST. Electronic credit ledger balances may pay output tax only, excluding reverse-charge and non-tax liabilities; electronic cash ledger balances may pay tax, interest, penalties, fees, and other payable amounts.

Fake invoices without actual supply attract penalties, while fraudulent input tax credit utilization triggers recovery, interest, and anti-duplication safeguards.
Where invoices are issued without actual supply, the activity is not supply and creates no tax liability or demand under sections 73 or 74 against the issuer, though penalty applies for issuing fake invoices. A recipient who fraudulently avails and utilizes input tax credit for genuine outward supplies is subject to recovery, interest, and penalty under section 74, without duplicate penalty for the same act. An intermediary passing such credit through further invoices without actual supply faces specified penalties, although no demand arises in that specific pass-through transaction.

Inter-State supply and input tax credit reporting requires place-of-supply accuracy, prescribed reversals, and correct electronic credit ledger calculation.
GST return-reporting requirements mandate place-of-supply-wise disclosure of inter-State supplies to unregistered persons, composition taxable persons, and UIN holders in Table 3.2 of FORM GSTR-3B and applicable tables of FORM GSTR-1. Table 4(A) auto-populates ITC, while permanent and temporary reversals must be reported separately in Table 4(B). Net ITC, calculated after those reversals, is credited to the electronic credit ledger. Blocked ITC is reported through Table 4(B)(1), whereas specified time-barred or place-of-supply-related ITC may be reported in Table 4(D)(2).

Origin-based duty exemptions under India Australia ECTA require certificate upload and specific notification coding in Customs EDI.
Importers must prefix Roman numerals I-IV to notification serials to claim duty exemptions, set Duty Type/Addl. Duty Flag where AIDC applies, and provide TRQ license details with scheme code 32 when required. Certificate of Origin must be uploaded as document code 861018 with Certificate Type MS and the Image Reference Number declared at item level; the system prevents reuse of the same CoO number across different Bills of Entry. Exporters must declare ORC/EPT/ECTAAU codes in the Single Window table for items under the Agreement.

Re-determination time limits under section 75(2): order for tax, interest and penalty must be issued within two years.
Clarification fixes that when an appellate body directs re-determination by deeming a fraud-based notice to be a non-fraud notice, the proper officer must issue the re-determination order for tax, interest and penalty within the two-year period following communication of the appellate direction, and may re-determine only those amounts for which the original show cause notice was issued within the time limit applicable to non-fraud assessments; amounts outside that non-fraud limitation are time-barred and must be dropped.

E invoicing exemption applies to the entire entity, so exempted businesses need not e invoice any supplies.
The Circular clarifies that No Claim Bonus reductions are not consideration from the insured to the insurer and, when pre disclosed in the policy and specifically recorded on the invoice, qualify as a deductible discount for determination of the taxable value of insurance services under section 15(3)(a) of the UPGST Act; GST is payable on the premium after deduction of the No Claim Bonus shown on the invoice. It also clarifies that the e invoicing exemption in the relevant notification applies to the entity as a whole and not merely to particular supplies.

Input Tax Credit reconciliation: procedures to verify and substantiate GSTR 3B vs GSTR 2A discrepancies and admit valid ITC claims.
The proper officer shall obtain invoice details for ITC claimed in FORM GSTR-3B but not appearing in FORM GSTR-2A and verify Section 16 eligibility: possession of tax invoice/debit note, receipt of goods or services, and payment including tax; and assess reversals under Sections 17 or 18 and time limit under Section 16(4). To verify supplier payment of tax, where the supplier wise difference for the year exceeds a monetary threshold, a CA/CMA certificate with UDIN is required; for differences up to the threshold, a supplier's certificate is acceptable.

Treatment of statutory dues under insolvency clarified: reductions must be intimated and recovery adjusted under GST procedures.
Where insolvency proceedings finalise and reduce statutory dues under UPGST Act, such proceedings qualify as "other proceedings" under Section 84, requiring the Commissioner to intimate reduction to the taxable person and the recovery authority, and recovery may continue only for the reduced amount. Where confirmed demands and summaries exist (FORM GST DRC-07/DRC-07A), the jurisdictional Commissioner shall issue intimation of reduction in FORM GST DRC-25 to the taxable person and appropriate recovery authority to implement the reduced demand uniformly.

Operational debt under GST: reduction by insolvency adjudication requires intimation and adjustment of recovery proceedings.
Where insolvency proceedings finalised under the Insolvency and Bankruptcy Code reduce statutory dues payable under the HGST Act or existing laws, the jurisdictional proper officer shall issue the prescribed intimation of demand reduction to the taxable person and to the authority with whom recovery proceedings are pending, and recovery may continue only in relation to the reduced amount; insolvency adjudications are treated as 'other proceedings' for this purpose and the prescribed Rule 161 procedure must be followed.

No Claim Bonus treated as allowable discount, reducing taxable insurance premium; entity-level e invoicing exemption affirmed.
No Claim Bonus (NCB) is not consideration from the insured and, if pre-disclosed in policy documents and stated on the invoice, qualifies as an allowable discount under section 15(3)(a) of the HGST Act; GST is leviable on premium after deducting NCB. The e-invoicing exemption under Notification No. 17/GST-2 applies to the entity as a whole and not only to particular supplies made by that entity.