Input Tax Credit reconciliation: capped availment based on GSTR 2A discrepancies for specified periods, subject to verification and conditions.
The Circular directs reconciliation of Input Tax Credit claimed in FORM GSTR-3B with FORM GSTR-2A for 01.04.2019-31.12.2021, applying Circular No.183/15/2022-GST to early months and enforcing the caps provided by rule 36(4) for sub-periods; availment remained subject to the payment condition in clause (c) of sub-section (2) of Section 16, cumulative adjustment provisos for certain month clusters must be considered, and from 01.01.2022 ITC is allowable only to the extent communicated in FORM GSTR-2B.

Interest on wrongly availed IGST credit depends on the combined ITC balance across IGST, CGST and SGST heads.
The total ITC balance in the electronic credit ledger-aggregating IGST, CGST and SGST-must be used to determine whether wrongly availed IGST credit was utilized; no interest is chargeable if the combined ITC balance never fell below the wrongly availed amount between availment and reversal, but when the combined balance falls below that amount the shortfall measures utilization and attracts interest. Compensation cess credit is excluded from the aggregation and cannot be used for this purpose.

GST Council: amendments for ITC reconciliation, strengthened registration, and 28% GST on casinos, racecourses and online gaming.
Council approved CGST/SGST rule amendments and new procedural rules/forms to implement e-way bill mandates for gold/precious stones, capacity based taxation and a special composition scheme, strengthened registration requirements (bank details, suspension/revocation, targeted physical verification, biometric Aadhaar pilot), and system-driven ITC reconciliation measures (proposed Rules 88D and 142B and FORMS DRC 01C/DRC 01D) to detect and recover excess ITC or reporting mismatches; clarificatory circulars were approved on interest for wrongly availed IGST credit, e invoice applicability to TDS registered government entities, refund linkage to GSTR 2B, inverted duty refunds, exporters' delayed claims (without interest), ISD and internally generated services, and the non taxability of mere shareholding by a holding company; Fitment Committee rate changes and the decision to tax casinos, race courses and online gaming at 28% on full face value were also adopted.

Anti profiteering procedure: Commission framework for assessing pass through of tax rate reductions and input tax credit benefits.
The Competition Commission of India's Methodology and Procedure under Rule 126 governs determination of whether tax rate reductions or input tax credit benefits have been passed on by registered persons. The Commission may inquire suo motu or on information, direct the Director General of Anti profiteering to investigate where a prima facie case exists, register and serve investigation reports on interested parties, and after affording opportunity of hearing may close the matter, pass orders, or remand for further investigation.

Verification of GST registrations: risk based scrutiny and required physical checks to curb fake registrations and bogus ITC.
Proper officers must promptly scrutinise FORM GST REG-01 entries and uploaded documents for legibility, completeness and authenticity, cross verify address proofs against public sources, and check prior registrations on the same PAN. Officers must consider DGARM risk ratings (Report Series 400), issue electronic notices in FORM GST REG-03 for deficiencies, examine replies in FORM GST REG-04, and reject unsatisfactory or non responsive applications in FORM GST REG-05. Aadhaar unauthenticated cases require immediate physical verification under rule 9/read with rule 25, with verification reports uploaded in FORM GST REG-30.

Risk-based scrutiny of GST returns via online ACES-GST workflow; discrepancies communicated through prescribed ASMT forms for compliance.
Implements an online, risk-based workflow on ACES-GST for scrutiny of GST returns for FY 2019-20 onwards: DGARM selects GSTINs using risk parameters and publishes GSTIN-wise risk details on the scrutiny dashboard; proper officers must scrutinize returns relying on system data, issue quantifiable discrepancy communications via prescribed ASMT forms through the portal, and take further action including determination proceedings or referral to audit/investigation as provided by the SOP.

Fake GST registrations: nationwide drive mandates data led identification, verification, suspension and blocking of fraudulent input tax credit.
A Special All India Drive (16 May-15 July 2023) directs GSTN to identify suspicious GSTINs through data analytics and share them with Central and State tax administrations; each jurisdiction must appoint a nodal officer to coordinate. Jurisdictional officers shall undertake time bound verification, suspend or cancel non existent registrations under section 29, block ITC under Rule 86A, identify recipients of fraudulent ITC and initiate demand/recovery or share details with other jurisdictions using Annexure B, and pursue recovery/attachment measures under section 83. Weekly reports (Annexure A) and GSTIN wise feedback (Annexure C) are required; a National Coordination Committee will monitor the drive.

GST classification of Rab: taxable if pre packaged and labelled, nil when not, with past-period regularization.
Supplies of Rab sold in pre-packaged and labelled form attract a 5% GST rate, while supplies in forms other than pre-packaged and labelled are subject to Nil GST; this treatment is effective from 1 March 2023 and past-period treatment is regularized on an "as is" basis.

GST Appellate Tribunal: one national tribunal with state benches, four member benches and targeted GST procedural and rate reforms.
The Council established one national GST Appellate Tribunal with a Principal Bench and State Benches each ordinarily comprising two Judicial and two Technical Members (one Centre, one State), allowed single Member adjudication for matters up to Rs. 50 lakh, approved Search cum Selection Committee compositions for State Technical Members, and authorised drafting of consequential amendments. It approved Law Committee recommendations on targeted amendments (Section 23, Section 62, Section 13(9) IGST), late fee rationalisation and conditional amnesties for specified returns, amendments to CGST Rules for Aadhaar authentication, extensions and amnesties for revocation of registration and specified assessment periods, and accepted Fitment and GoM reports with proposed compliance and track and trace measures.

GST exemption on government-supplied services extends to mess accommodation; payment incentives treated as non-taxable subsidy.
Accommodation services provided by Air Force messes and similar military or police messes to personnel or other non-business persons are exempt under Sl. No. 6 of notification No. 12/2017 when those services qualify as supplied by Central/State/UT or local authorities. Incentives paid by MeitY to acquiring banks under the RuPay/BHIM UPI promotion scheme are subsidies linked to the price of the payment service and are not consideration for services to the government; accordingly they do not form part of the taxable value and are not taxable under GST.

GST classification updates clarify rates, exemptions, HS codes, and SUV cess applicability for specified goods.
Rab is classifiable under Tariff heading 1702 and attracts GST at 18%. By-products of dal/pulse milling (chilka, khanda, churi/chuni) are fully exempt regardless of end use and interim matters are regularized on an "as is" basis. Carbonated fruit beverages are classed under HS 2202 99 and attract 28% GST and compensation cess; an exclusion has been added in Schedule II. Extruded snack pellets (fryums) fall under tariff item 1905 90 30 and attract 18% GST. Compensation cess at the higher rate applies to vehicles meeting all SUV specifications. Importers may claim lower IGST where eligible.