GST valuation excludes Tax Collected at Source as an interim levy, clarifying its non-inclusion in taxable value.
GST valuation for supplies involving Tax Collected at Source (TCS) under the Income Tax Act is clarified by corrigendum to the earlier circular. The revised position states that, for determining the value of supply under GST, TCS is not to be included because it is an interim levy on possible income and does not have the character of a tax on goods. The clarification revises the earlier statement that had treated TCS as part of the taxable value merely because the amount payable to the supplier was described as inclusive of TCS.

Place of supply requirement: inter State tax invoices must state place and State; non compliance attracts GST penalties.
Registered persons making inter State supplies must include the place of supply and the name of the State on tax invoices as mandated by rule 46(n) of the HPGST Rules, to ensure tax accrues to the State of consumption. Place of supply for goods and services is to be determined by reference to the IGST place of supply provisions. Contravention of invoice particulars attracts penal consequences under the HPGST Act; the instruction was issued for uniform implementation and publicized by trade notices.

Enrolment authority for GST practitioners: Deputy Commissioner IT-cum-system admin may approve or reject enrolment applications.
Deputy Commissioner IT-cum-System Admin GST is specified as the authorised officer to approve or reject applications for enrolment as Goods and Services Tax Practitioners submitted in the prescribed enrolment form; applicants may choose either the Centre or the State as the enrolling authority and must indicate that choice in the form, and implementation difficulties must be reported to the issuing office.

Inter-State supply reporting required in prescribed GST return tables to ensure correct IGST apportionment and compliance.
Registered taxpayers must report inter-State supplies to unregistered persons, composition taxable persons and UIN holders in Table 3.2 of FORM GSTR-3B and invoice-wise inter-State supplies up to the prescribed threshold rate-wise in Table 7B of FORM GSTR-1. Apportionment of IGST to the State where supply occurs depends on information in Table 3.2 of FORM GSTR-3B; omission causes under-apportionment, mismatches between actual supplies and apportioned integrated tax, and non-compliance. Registered persons are instructed to report such supplies with place of supply in both tables and warned that contraventions attract penal action.

GST liability on BF/BC services: banks responsible for GST on service charges, rural-branch exemption follows banking classification.
Banks are the service providers in the BF/BC model and must pay GST on the entire value of service charges or fees charged to customers, even if transactions are facilitated by BF/BCs who are paid commission by the bank. Exemption for BF/BC services requires that the services fall under Heading 9971 and pertain to accounts of a branch classified as rural; the bank's classification under applicable banking guidelines is determinative for the exemption.

Exemption for educational institution food services: institutional supplies to students and staff exempt, third-party catering taxable.
Supply of food and beverages by an educational institution to its students, faculty and staff is exempt from GST under the exemption notification; conversely, food and beverage supplies provided by a third party to the institution under contract are liable to GST at five percent.

Classification of printing of pictures as photographic processing, changing applicable GST treatment accordingly.
The circular directs that printing of pictures constitutes 998386 Photographic and videographic processing services, noting that the Explanatory Notes include colour printing of images from film or digital media and related processing activities under 998386 while excluding those activities from 998912 Printing and reproduction services of recorded media; therefore printing of pictures is to be classified under 998386 with the corresponding tax treatment, and implementation difficulties should be reported to the office.

Tax immunity for international financial institutions: services by ADB and IFC exempt from GST, not covering third-party agents.
Services supplied directly by the Asian Development Bank and the International Finance Corporation are exempt from GST because their statutes confer immunity from taxation and from any obligation to collect or remit tax; this immunity precludes applying domestic tax provisions to their operations, and the exemption does not extend to entities acting on behalf of those institutions.

GST exemption for educational services: long-duration degree programmes at national institutes qualify, short executive courses remain taxable.
All IIMs qualify as educational institutions under the IIM Act; services to students in long duration programmes (one year or more) conferring a diploma or degree recognised by law are exempt from GST, while short duration executive or need based programmes under one year that issue participation certificates are not exempt. Transitional provisions permitted claiming the more beneficial exemption where multiple notifications overlapped, and a specific IIM entry was later deleted as redundant.

GST rate on micro irrigation clarified: sprinklers and drip irrigation including laterals attract reduced GST rate.
Micro irrigation systems described as sprinklers and drip irrigation systems including laterals are taxable at the reduced GST rate recommended by the GST Council; the term "sprinklers" in the relevant rate entry includes sprinkler irrigation systems and their components, so systems consisting of nozzles, laterals and other components attract the reduced GST rate.

GST classification clarified: tariff headings and applicable rates for feeds, LPG, plastics, timber, bagasse boards, fabrics, WTEP and service movements.
Clarifies GST classification and applicable rates by HSN for specified goods: chhatua/sattu under HSN 1106 (nil if unbranded, concessional if branded); prepared animal/aquatic feeds are distinct from raw inputs such as fish meal and MBM (the latter classified under HSN 2301 and charged under the meals/flours entry); feed supplements presented ready for specific animal use fall under chapter 23 while vitamins in general-use or medicinal form fall under chapter 29; LPG supplied in bulk identifiable for household use qualifies for the reduced domestic supply rate; polypropylene bags laminated with BOPP classify under HS 3923; wood logs for pulping under 4403; bagasse boards (plain or laminated) attract the bagasse board concessional entry; three-piece embroidered fabric packs remain fabric; turbochargers classify under 8414; interstate movement of goods for provision of services on own account without transfer of title is not a supply liable to IGST.

Export of services: full contract value treated as export if reverse charge IGST is paid and RBI permits foreign retention.
Where an Indian exporter outsources part of services to a foreign supplier, two supplies occur: the exporter supplies the full contract value to the foreign recipient and imports the outsourced portion from the foreign supplier. The Indian supplier must pay integrated tax under reverse charge on the imported portion and may claim input tax credit. The entire contract value may still qualify as export consideration even if part is paid directly abroad, provided reverse-charge tax is paid and RBI permits retention outside India.

Denial of composition option may be applied retrospectively and triggers normal tax liability and recovery proceedings.
Withdrawal from the composition scheme takes effect from the date indicated in FORM GST CMP-04, not earlier than the start of the financial year of filing; contraventions may trigger recovery of tax, interest and penalty. Denial of the composition option follows issuance of FORM GST CMP-05, reply in FORM GST CMP-06, and an order in FORM GST CMP-07 within thirty days, and may be effective from a date, including retrospective, no earlier than the date of contravention; tax liability and input credit adjustments follow the order.

Taxation of government supplies: government departments must register and pay GST when supplying used or seized goods to unregistered persons.
Supplies of used vehicles, seized and confiscated goods, old and used goods, waste and scrap by government entities are taxable; supplies to unregistered persons require the supplying department to register and pay GST. Penalty under the self-assessment recovery provision applies only where show cause proceedings are invoked; late filing with tax and interest paid does not attract that penalty though general penalty provisions may apply. Debit/credit notes for post-appointed-day price revisions are taxed at GST rates. TDS applies only to bodies with majority government participation. Valuation includes TCS and owner of goods is consignor or consignee where invoice accompanies consignment.

Return of expired medicines: treat as fresh supply with ITC consequences or issue a credit note with time limit effects.
Provides two alternative procedures for return of time expired drugs: treat the return as a fresh supply (registered non composition issuers invoice and recipient may claim ITC; composition taxpayers issue bill of supply with no ITC to recipient; unregistered persons use a commercial document), with manufacturer required to reverse ITC on destruction of returned goods; or process the return by issuing a credit note, where adjustment of tax liability and portal upload depend on whether the credit note is issued within the statutory time limit, and where ITC reversal rules apply if goods are destroyed.

Casual taxable person advance tax net of input tax credit clarified, and ISD excess credit recovery procedures specified.
Advance tax for a casual taxable person is to be computed on the estimated net tax liability after accounting for eligible input tax credit. Long-running exhibitions beyond the casual taxable person period require normal registration without advance tax and may use the allotment letter as business proof. Excess input tax credit distributed by an ISD must be recovered from recipient units with interest and penalty; recipients may voluntarily deposit via the prescribed form, otherwise recovery proceedings may be initiated, and the ISD is liable to a general penalty.

Cancellation of registration: streamlined portal process with mandatory final return and tax on stock liabilities and procedural safeguards.
Applications for cancellation in FORM GST REG-16 must include prescribed portal particulars and, unless incomplete or where the transferee entity is unregistered, be accepted by the proper officer within thirty days of filing. Cancellation does not relieve past or future liabilities; a final return in FORM GSTR-10 must be filed within three months of effective cancellation, and tax on stock is payable by debiting electronic credit or cash ledger or by cash if shortfall exists. Debiting ledger balances is not a prerequisite for filing; ledger use is restricted from the specified effective date except to discharge liabilities up to final return filing.

TDS under GST: DDOs must record bunched TDS using a new GST TDS sub head in PAO Suspense for accounting compliance.
DDOs must account for aggregated TDS receipts using a new sub head under Head 8658.00.101-PAO Suspense designated GST TDS, per the Department of Revenue's modification to Circular No. 65/39/2018 GST; administrative officers must report implementation difficulties to headquarters.

GST exemption for religious and yoga residential programmes applies when the primary purpose is advancement; otherwise services are taxable.
Services by entities registered under Section 12AA for advancement of religion, spirituality or yoga are exempt from GST; residential programmes or camps charging fees that include boarding and lodging are exempt so long as the primary and predominant purpose is advancement of religion, spirituality or yoga. By contrast, where trusts primarily provide accommodation or food for consideration (including donations), or where activities are essentially fitness, aerobics, dance, music or similar secular classes, those services are taxable.

TDS under GST: DDOs must deduct, deposit via CPIN/CIN, and file monthly GSTR-7 while issuing GSTR-7A certificates.
Guidance requires DDOs to deduct GST TDS where contract thresholds apply, register on the GST portal, generate CPINs and deposit deducted amounts via NEFT/RTGS or OTC so that a CIN credits the DDO's electronic Cash Ledger. Two options are provided: individual bill wise CPIN generation and immediate deposit, or booking deductions to a Suspense Head and periodic bunching with consolidated CPINs. DDOs must file monthly Form GSTR-7, issue Form GSTR-7A certificates, and maintain the Annexure A register to document all TDS deductions.