GST treatment of sales promotion schemes clarified: uniform rules on taxability, valuation and input tax credit for promotional offers.
Clarification addresses GST tax treatment of sales promotion schemes under Circular No. 92/11/2019, identifying free samples and gifts, buy one get one offers, discounts (including "buy more, save more"), and secondary discounts, and directing uniform application of rules on taxability, valuation and availability of Input Tax Credit for these schemes; field formations and trade are instructed to follow the circular's detailed guidance.

Registration exemption for exclusive goods suppliers: higher threshold allows eligible taxpayers to cancel GST registration before notified cutoff.
Persons exclusively supplying goods whose aggregate turnover does not exceed the prescribed threshold are exempt from GST registration, subject to conditions: exclusive supply of goods, absence from compulsory registration categories, non-involvement in excluded supply categories, and the interplay with voluntary registration; eligible taxpayers may apply for cancellation of registration by the prescribed cutoff and must not have issued any tax invoice in the subsequent fiscal period to claim the exemption.

Real estate GST: 1% affordable, 5% other, option for ongoing projects to retain old rates or adopt pro rata transition.
The Council implemented the 33rd Meeting decisions for Real Estate: effective GST at 1% (affordable) and 5% (other than affordable) without ITC; definitions from RERA; 80% procurement from registered suppliers or tax on shortfall under RCM (cement at higher RCM); creation of related 18%/18% entries for unregistered supplies to promoters; RCM and timing shifts for TDR/FSI/long term lease; amendments to ITC apportionment rules; transitional pro rata ITC formula for ongoing projects; one time option for ongoing projects to remain under old rates; and notifications effective 1 April 2019 subject to legal vetting.

GST circulars clarify inter state supply reporting and invoice compliance; trade urged to follow CBIC guidance.
Clarification and dissemination directives concerning recent GST circulars addressing reporting and compliance for inter state transactions and specific treatment questions. Circular No. 89/08/2019 GST clarifies the reporting of inter State supplies made to unregistered persons in Table 3.2 of FORM GSTR 3B and Table 7B of FORM GSTR 1. Circular No. 90/09/2019 GST explains compliance requirements of invoice issuance under rule 46(n) of the CGST Rules, 2017 for inter State supplies. Commissioners and trade associations are instructed to circulate these clarifications and refer stakeholders to the CBIC website for full details.

Assignment of authority under CGST to exercise powers under sections 73-76 over specified taxpayers for enforcement action.
The Central Board of Indirect Taxes and Customs, by Order No. 2/2019 dated 12 March 2019 and under section 5(1) of the CGST Act read with the enabling notification, assigns a specified investigation file originating with the Commissioner of Central Tax, Mumbai Central to the Commissioner of Central Tax, Mumbai Central for the purpose of exercise of powers under sections 73, 74, 75 and 76 of the Act in respect of the taxpayers listed by GSTIN.

Inter State supply of Priority Sector Lending Certificates requires IGST on e Kuber trading; prior CGST/SGST payments exempt additional IGST.
PSLC transfers between banks on the RBI e Kuber platform are to be treated as a supply of goods in the course of inter State trade or commerce and therefore attract Integrated GST (IGST). This IGST characterization applies irrespective of earlier differing charge mechanisms; however, a bank that has already paid Central GST and State GST (or Central GST and Union Territory GST) for the supply is not required to pay IGST for that transaction.

Tax collected at source (TCS) exclusion: TCS treated as interim levy and not includible in taxable value for GST.
Corrigendum clarifies that Tax Collected at Source (TCS) under the Income Tax Act is an interim levy not having the character of a tax and therefore would not be includible in the taxable value of supply for GST, notwithstanding the general principle in Section 15(2) that the value of supply includes taxes or charges levied under other laws if charged separately. Trade notices are requested and implementation difficulties should be reported to the Board.

Sales promotion schemes under GST: clarifies taxability, valuation rules and input tax credit treatment for samples, offers and discounts.
Free samples and gifts supplied without consideration are not treated as supply and do not attract GST unless covered by Schedule I; input tax credit is disallowed for inputs, input services and capital goods used for such free distributions unless the activity falls within Schedule I. Buy-one-get-one offers are treated as supplying multiple goods for one price, with taxability determined by whether the transaction is a composite or mixed supply and input tax credit available. Invoice-disclosed and pre-established volume discounts that meet valuation conditions are excluded from taxable value and permit input tax credit claims. Secondary post-supply discounts do not qualify for exclusion from value and credit notes may be issued commercially.

Real estate GST: 5% non affordable and 1% affordable rates without ITC effective 1 April 2019.
The Council approved an effective GST regime for under construction residential properties: 5% without ITC for non affordable and 1% without ITC for affordable housing, effective 1 April 2019; adopted area and value based eligibility for Affordable Housing (carpet area ceilings of 60 sqm in specified metros and 90 sqm in non metros with a Rs. 45 lakh value cap), allowed up to 15% commercial area treated separately, mandated 80% procurement from registered suppliers with RCM on shortfalls, set pro rata ITC transition rules, and tasked the Fitment and Law Committees to draft detailed notifications and transitional provisions.

Inter State supply characterization: one time deeming of central and state tax paid as discharge of IGST for warehoused goods.
Supplies of goods from customs bonded warehouses are inter State supplies; owing to a portal deficiency taxpayers reported and paid central tax and State tax instead of IGST. As a one time exception, where the sum of central tax and State tax paid during the affected period equals the IGST due, such payment will be deemed compliance with IGST payment obligations. The Board instructs field formations to publicise the Circular and report implementation difficulties.

Place of supply requirement: inter state invoices must state place of supply and State, noncompliance attracts penal action.
Registered persons making inter State supplies must specify the place of supply along with the name of the State on the tax invoice in compliance with rule 46(n). The place of supply for goods and services should be determined with reference to the Integrated GST Act provisions. Failure to include these mandated particulars may attract penal action under the CGST Act provisions reflected in sections 122 and 125.

Reporting inter State supplies to unregistered persons: ensure GSTR 3B and GSTR 1 entries to secure correct IGST apportionment.
Registered suppliers must report inter State supplies to unregistered persons, composition taxpayers and UIN holders in Table 3.2 of FORM GSTR 3B and rate wise inter State supplies to unregistered persons in Table 7B of FORM GSTR 1. Non reporting in Table 3.2 causes incorrect IGST apportionment to the State of supply and mismatches in supplies versus apportioned tax. The Board directs reporting of such supplies with place of supply in both prescribed tables and warns that contraventions may attract penal action under the CGST Act.

Change of Address: CGST headquarters and Seva Kendra relocated; new premises and contact arrangements provided.
The Change of Address notifies that the Commissionerate Headquarters of CGST & Central Excise, Guwahati, together with Division I and Division II, have relocated from Sethi Trust Building to GST Bhawan, Kedar Road, Machkhowa, with the GST Seva Kendra now functioning at Room No.102, 1st Floor. The Seva Kendra operates on working days between 10.00 am and 06.00 pm and may be contacted by the published telephone number and the stated email address for services and enquiries.

GST amendments update prior circulars, revising export, job work, detention, recovery and registration procedures.
Prior administrative circulars are amended to align with the GST Amendment Acts effective 01.02.2019, revising guidance on Bond/Letter of Undertaking and export realisation in INR, extending and clarifying job work return timelines and reverse charge effects, modifying detention and confiscation procedures to allow a window for owner/transporter payment of tax/penalty, streamlining recovery of wrongly availed transitional credits, and updating registration cancellation processing to reflect suspension provisions.

Right to Information appellate authority designated; appeals from CPIO orders for CGST South Delhi now lie with the appointed First Appellate Authority.
Mr. Ubhap Sengraj, Additional Commissioner, CGST South, Delhi, is appointed as the First Appellate Authority under sections 5(1) and 5(2) of the Right to Information Act, 2005 for the Commissionerate. All appeals from orders passed by the Central Public Information Officers within the territorial jurisdiction shall lie with this Appellate Authority, and pending applications/appeals will be dealt with by the designated CPIOs or the Appellate Authority as applicable.

IGST refund on exports: ensure correct EGM filing and rectify SB001/SB002/SB003/SB005 errors to enable refund payment.
IGST refunds require Shipping Bills to migrate from the IGST Temporary Scroll to the final Scroll; EGM errors (SB002/SB006), invalid invoice numbers (SB005), GSTIN mismatches (SB003) and Shipping Bill detail errors (SB001) prevent migration. Exporters and airlines must correct EGMs before departure, submit self certified GSTR 1/GSTR 3B and a Concordance Table to the IGST Refund Cell, and file a Revised Refund Request where differential refunds are claimed so approved amounts can be re scrolled for payment.

IGST refund restriction: exporters who availed specified duty exemptions must export under LUT or report and repay refunds.
Amendment disqualifies exporters from claiming refund of IGST on exports if they have availed specified exemption notifications for deemed exports, supplies to merchant exporters, EOUs, Advance Authorisation and EPCG receipts, except where linked to the Export Promotion Capital Goods/Goods Scheme; affected exporters must export under LUT and those who already received refunds must report to Customs and jurisdictional GST authorities and repay the refund after consultation.

Realization of export proceeds in INR allowed where RBI permits, clarifying LUT usage and job work compliance rules.
Amendments effective 01.02.2019 update prior CGST circulars: realization of export proceeds in INR is permitted where RBI allows and acceptance of LUT for supplies to foreign countries and SEZs is allowable irrespective of invoice currency; job work rules are revised to restate principal's accounting responsibility, to apply specified time limits for return or onward supply with date of supply being when goods were sent and interest payable, to clarify job worker registration thresholds and valuation of job work services, and to confirm invoicing and tax liability rules for registered job workers; detention, recovery procedures and suspension of registration provisions are also amended with revised forms and payment mechanisms.

Supply of warehoused goods exclusion clarified; earlier IGST circular rescinded and non-supply treatment affirmed administrative.
Amendment to Schedule III treats transfers of warehoused goods to any person before clearance for home consumption as outside the scope of supply; the Board rescinds the earlier IGST circular on this matter and directs field formations to publicize the revised classification and report implementation difficulties.

Transition of CENVAT credit clarified to include service tax credits as eligible duties, while cesses remain excluded.
Transition provisions permit carryforward of CENVAT credit of service tax paid under section 66B of the Finance Act, 1994 as eligible duties; the term "eligible duties" should be read to include the categories listed in the existing explanations and construed broadly so as not to exclude service-tax credit. The expression does not import the stock-or-in-transit conditions in the explanations, and clauses that would link those conditions to transitional eligibility will not be notified. Transition of cesses is excluded by the inserted explanation, effective from its notified retrospective date.