Input Tax Credit reconciliation: certified verification required when GSTR 3B claims exceed GSTR 2A to confirm admissibility.
Where ITC claimed in FORM GSTR 3B does not appear in FORM GSTR 2A for FY 2017-18 and 2018-19 due to suppliers' non filing, omissions, misclassification or wrong GSTIN, the proper officer shall require invoice level details and verify eligibility conditions for ITC: possession of tax invoice, receipt of goods/services, payment of value and tax to the supplier, and adherence to reversal and time limit provisions. To verify supplier payment, recipients must produce a Chartered Accountant/Cost Accountant certificate with UDIN when the annual difference per supplier exceeds a specified threshold; for smaller differences a supplier's declaration is acceptable.

Mandatory use of GST Field Visit app for submitting field visit reports, with non compliance treated seriously.
Mandates electronic submission of officer conducted field visit reports through the GST Field Visit app; all concerned officers and officials are directed to use the mobile application available on the Google Play Store for recording and submitting field visits with immediate effect, and non compliance will be treated seriously.

SIB module compliance for offline INS-01 cases governs enforcement recording and follow-up investigation entries.
Investigation & Enforcement and Mobile Squad units were directed to complete departmental SIB Module entries in all cases where offline INS-01 notices had been issued during special inspections. The instruction applies where further investigation proceedings were carried out for sensitive, practical, or functional reasons, and reiterates the requirement that entries in the departmental portal be made in accordance with the earlier circular. Subsequent action was to be completed as per rules by the specified deadline.

Refund of unutilised input tax credit: amended calculation formula and sectoral refund restriction apply prospectively to later applications.
The circular clarifies that the amended refund calculation formula under sub rule (5) of Rule 89 applies prospectively and governs refund applications filed on or after its effective date, while earlier applications remain governed by the pre amendment formula. It also clarifies that the notification denying refunds for specified goods in chapters 15 and 27 where input tax exceeds output tax operates prospectively and applies only to refund applications filed on or after its effective date.

GST classification of electrically operated vehicles: lack of fitted batteries does not change their tax classification, attracting concessional treatment.
Electrically operated vehicles are classifiable under HSN 8703 and attract the concessional GST rate even if batteries are not fitted at supply; absence of batteries does not change the essential character. Napa and similar brittle stones with only minor polishing fall within the reduced-rate entry for non-mirror-polished ready-to-use building stone. Mango products under CTH 0804 are taxed by form (fresh exempt, sliced dried concessional, other dried forms including pulp at the standard rate). Treated sewage water is exempt under heading 2201. Nicotine polacrilex gum for tobacco cessation is classifiable under tariff item 2404 91 00 at the applicable rate. The 90% fly ash content requirement applies only to fly ash aggregate, not bricks, and milling by-products of pulses classifiable under heading 2302 used as cattle feed ingredients attract the concessional rate, with past periods regularized on an as is basis.

REIC-form submission for enforcement cases after FY 2018-19 must follow prescribed thresholds and regular reporting
Enforcement case information to be shared with REIC/CEIB must be submitted in the prescribed REIC-Form-1 through Headquarters for cases booked after FY 2018-19. The instruction reiterates that only cases meeting the prescribed tax-evasion threshold are to be referred, and that all pending particulars, as well as future case information, must be forwarded regularly and without delay in the specified format.

Transitional credit claims via TRAN 1/TRAN 2 may be filed/revised; officers must verify and decide admissibility within 90 days.
Transitional credit may be filed or revised via TRAN 1/TRAN 2 on the reopened common portal within the specified window; jurisdictional state or central tax officers must verify claims (including coordination where both tax components exist), observe natural justice, obtain records, and decide admissibility within 90 days of the window's closure, uploading a reasoned order to credit allowable amounts to the electronic credit ledger; inadmissible excess credit is recoverable with interest and penalty. Annexures set out SGST verification checks and a verification report template.

Transitional credit procedures: portal filings accepted; officers must verify claims and issue reasoned orders for admissibility.
Taxpayers may file or revise FORM GST TRAN-1/TRAN-2 within the court ordered portal window; jurisdictional tax officers must verify claims via back office systems or self certified copies, adhere to natural justice, check prior filings, adjudications and returns, coordinate with counterpart Central/State officers where claims span both taxes, prepare a detailed verification report specifying admissible and inadmissible amounts with grounds, issue notices and hearings where needed, and pass reasoned orders uploading them to the portal so allowed transitional credit is reflected in the electronic credit ledger; excess credited amounts are recoverable with interest and penalty.

TRAN-1 and TRAN-2 verification instructions require physical files, jurisdictional supervision, and timely upload of Eligible ITC entries.
Verification and processing of TRAN-1 and TRAN-2 applications are to follow the Supreme Court's directions permitting re-filing or amendment through the common GST portal. Because the portal did not classify applications jurisdiction-wise or permit redistribution, physical copies are to be prepared, file-wise maintained, and verified under the supervision of the sector-in-charge Deputy Commissioner or Assistant Commissioner. Notices for irregularities are to be issued by the jurisdictional officer, and entries relating to Eligible ITC found admissible are to be uploaded on the portal within the prescribed time.

Transitional Credit verification: filing window allowed, officers must verify claims and issue reasoned orders within prescribed timelines.
The GST common portal is opened to allow filing or revision of TRAN-1/TRAN-2 during the directed two-month window; jurisdictional tax officers must verify claims on the back-office system or on receipt of a self-certified copy, apply principles of natural justice, coordinate with counterpart Central/State officers where claims span both taxes, obtain a counterpart verification report, provide the applicant an opportunity of hearing, and pass a reasoned order uploading it to the portal. All verifications and orders are to be completed within 90 days after the filing window, and operational modalities, checks for each TRAN-1 table, and reporting formats are prescribed in Annexures I and II.

GST on payments depends on whether they are consideration for agreeing to tolerate, refrain from, or perform an act.
GST applies to payments only when there is an express or implied contractual agreement creating a nexus between the payment and an agreed obligation to refrain from, tolerate, or do an act; mere monetary flows arising from breach, statutory cancellation or fines that compensate loss or deter wrongdoing are not consideration for a supply and are not taxable, whereas payments serving as consideration for independent or ancillary agreements to tolerate, refrain or perform are supplies taxable according to the principal supply's treatment.

GST exemption clarifications: service categories' tax treatment and transitional rate changes clarified including education, health, transport, and leasing.
Clarifies GST treatment for varied services: ice cream parlours supply attracts 18% with ITC from October 6, 2021 (past 5% payments treated as discharged); educational entrance/eligibility/migration fees are exempt as services by educational institutions; storage of ginned/baled cotton was exempt as raw vegetable fibre prior to July 18, 2022; transit cargo services to and from Nepal/Bhutan (including empty container return) are exempt; renting of vehicles with driver is rental service (heading 9966) not road transport exemption; PLC paid up front for long term land lease is part of upfront premium and exempt; IVF qualifies as exempt health care; sale of land is non taxable.

Transitional credit verification: officers must verify TRAN filings and issue reasoned orders to allow or reject credit.
Jurisdictional tax officers shall verify TRAN-1/TRAN-2 filed or revised in the court-ordered window by accessing the back office portal or the applicant's self-certified copy, commence verification promptly, follow principles of natural justice, and where claims involve both Central and State components refer the relevant portions to the counterpart officer. The counterpart officer must submit a signed verification report in the prescribed format, ordinarily within ten days, after which the jurisdictional officer will issue a reasoned order specifying admissible credit to be uploaded to the common portal and credited to the electronic credit ledger within the court-directed verification timeline.

Refund of unutilised input tax credit: amended calculation applies prospectively and certain goods face prospective refund restriction.
Amendment to the refund computation for unutilised input tax credit due to inverted duty structure revises the formula in sub rule (5) of rule 89; the amended formula applies prospectively to refund applications filed on or after July 5, 2022, while applications filed earlier follow the pre amendment formula. A separate notification bars refunds for specified goods where credit accumulation arises from higher input rates than output rates; that refund restriction is also prospective and applies only to applications filed on or after July 18, 2022.

One time filing window for TRAN 1/TRAN 2: portal filings allowed with annexure and verification, forms frozen on submit.
The circular permits aggrieved registered persons to file or revise Form GST TRAN-1 and TRAN-2 on the GST portal from October 1, 2022 to November 30, 2022 as a one-time opportunity. Applicants may edit forms until they click "submit", must upload Annexure A (and TRANS 3 where applicable), cannot claim certain C/F/H/I Forms issued after December 27, 2017 in TRAN 1 table 5(b)/5(c), must consolidate TRAN 2 claims into one form, and submit a self certified copy with supporting documents to the jurisdictional officer within seven days for verification and adjudication; accepted credit will be posted to the electronic credit ledger.

GST classification clarifications set rates for electric vehicles, mango products, treated sewage water, nicotine gum, fly ash goods and pulse residues.
Electrically operated vehicles are taxable at 5% even without a fitted battery. Minor-polished Napa and comparable building stones qualify for 5%, while fresh mangoes are exempt, sliced and dried mangoes attract 5%, and mango pulp and other dried forms attract 12%. Treated sewage water is exempt, and Nicotine Polacrilex gum attracts 18%. The 90% fly ash-content condition applies only to fly ash aggregate. Pulse-milling by-products used as cattle-feed ingredients are taxable at 5%, with past treatment regularised on an as-is basis.

Local jurisdiction of Joint Commissioners is allocated by specified tax circles, with pending proceedings continuing under revised territorial assignments.
Joint Commissioners of State Tax are designated as proper officers for specified local jurisdictions, subject to previously fixed pecuniary jurisdiction. The allocation covers identified circles in Raipur, Durg, Bilaspur and enforcement divisions. Matters involving revision, advance rulings, appeals against advance rulings and appellate authority are excluded from these territorial assignments. Completed proceedings are ratified only regarding local jurisdiction, while pending proceedings must continue under the revised allocation from their existing stage.

Proper-officer territorial jurisdiction under SGST is allocated among designated officers, with pending matters continuing under revised assignments.
Assistant Commissioners, Additional Assistant Commissioners and State Tax Officers are designated as Proper Officers for specified local jurisdictions, subject to the prescribed financial jurisdiction. Territorial responsibility is allocated by circle, ward, municipal area, industrial area, tehsil, district and rural area. The designations cover Raipur, Bilaspur, Durg and associated circles. Proceedings completed before issuance are ratified only in relation to local jurisdiction, while pending proceedings must continue and be completed under the allocated jurisdiction from their existing stage.

Transitional credit verification requires jurisdictional scrutiny, counterpart coordination, natural justice, and prevention of duplicate input tax credit claims.
Transitional credit claimed through TRAN-1 or TRAN-2 must be verified by the jurisdictional tax officer using portal data, the applicant's self-certified copy, supporting records, and applicable law. Mixed State and central tax claims require counterpart verification and coordinated reports. Credit may be disallowed only through a reasoned process involving notice, personal hearing, and observance of principles of natural justice. Verification includes prior claims, adjudication or appeals, VAT carry-forward balances, capital-goods credit, stock-based credit, invoice and eligibility conditions, and prevention of duplicate credit through GSTR-3B. Allowed credit is reflected in the electronic credit ledger; excess earlier credit is recoverable with applicable interest and penalty.

Refund of unutilised input tax credit: amended calculation and goods-based restriction apply prospectively to future claims.
Amendment to the formula for refund of unutilised input tax credit on account of inverted duty structure is prospective and applies to refund applications filed on or after the amendment's effective date, with earlier applications processed under the prior formula. The separate restriction denying refunds for certain specified goods is also prospective and applies only to refund applications filed on or after the restriction's effective date, not to applications filed before that date.