Transitional credit filings via FORM GST TRAN-1/TRAN-2 reopened; claims to be verified within 90 days and credited to ledger.
The Supreme Court directed reopening of the common portal to permit filing or revision of FORM GST TRAN-1/TRAN-2 for a limited window, and mandated that jurisdictional tax officers verify claims filed during that window and pass reasoned orders within 90 days, after which allowed transitional credit shall be reflected in the Electronic Credit Ledger. Verification duties, State Central coordination, procedural checks, documentary requisites, opportunity to be heard, reporting formats and recovery of excess credit are specified.

Refunds for accumulated input tax credit: amended calculation and specified-goods restrictions apply only prospectively to new applications.
An amendment to the refund calculation formula for unutilised input tax credit due to inverted duty structure is prospective and applies only to refund applications filed on or after its effective date; applications filed before that date shall be processed under the earlier formula. A separate notification restricting refunds for specified goods where input tax exceeds output tax is also prospective and applies only to refund applications filed on or after its effective date, not to earlier applications.

Refunds for unutilised input tax credit due to inverted duty structure now subject to a new prospective computation rule affecting later claims.
Clarification states that the amended formula in rule 89(5) for computing refunds of unutilised input tax credit due to an inverted duty structure is substantive and applies prospectively to refund applications filed on or after its effective date, while applications filed before that date remain subject to the pre amendment formula. Separately, a notification restricting refunds for specified goods in Chapters 15 and 27 where input tax rates exceed output rates is also prospective and applies only to refund claims filed on or after its commencement; earlier claims are unaffected.

Non-filing enforcement: officers must initiate assessment and cancellation procedures for persistent return non-filers.
Proper Officers must contact return defaulters, issue electronic notices, and where returns remain unfiled proceed with best judgement assessment, upload assessment orders in prescribed forms and initiate recovery. Territorial Deputy and Joint Commissioners must personally monitor top revenue contributors and ensure lists of defaulters are acted upon. Persistent non-filing triggers suspension and initiation of cancellation proceedings, verification of business premises and referral to the Intelligence Wing for inspection where business continues.

Input Tax Credit availability clarified for deemed export refunds, employer perquisites and ledger utilisation under GST.
Tax paid on deemed export supplies may be placed in recipients' electronic credit ledgers solely to enable refund claims but does not constitute ITC under Chapter V and is excluded from "Net ITC" for refund computations; the proviso to clause (b) of section 17(5) applies to the entire clause making credit available where goods or services are obligatory for an employer under law; "leasing" in the exclusion is limited to motor vehicles, vessels and aircraft; employment perquisites under contract are not supplies for GST; electronic credit ledger balances may be used only for output tax (excluding reverse charge) while the electronic cash ledger may meet tax, interest, penalty and other liabilities.

Right to appeal preserved when goods released after voluntary payment; final detention orders must be issued online to enable appeals.
Voluntary payment to secure release of detained goods does not bar the taxpayer's right to file an appeal; technical or manual issuance of forms cannot be relied upon to deny appellate access. Final orders in FORM GST MOV-09 generate the demand record and enable the online appeal module, and must therefore be issued online in all detention, seizure and release cases regardless of voluntary payment. Where MOV-09 was not uploaded previously and the taxpayer intends to appeal, MOV-09 shall be electronically issued immediately, and field formations must avoid manual forms and follow prescribed procedures.

Refund of unutilised input tax credit clarified: amended formula applies from notification, restrictions apply prospectively.
The amended formula for refund of unutilised input tax credit under the SGST Rules applies prospectively to refund applications filed on or after the amendment's effective date; applications filed before that date are to be processed under the prior formula. Separately, the notification specifying certain goods for which no refund of unutilised input tax credit shall be allowed is prospective and applies only to refund applications filed on or after its effective date.

Refund of unutilised input tax credit: amended formula and chapter-specific refund restriction apply only after their effective dates.
An amendment to sub-rule (5) of rule 89 modifying 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 its effective date, with earlier applications governed by the pre-amendment formula. Separately, a notification specifying certain goods for which no refund shall be allowed where credit accumulated due to higher input tax rates applies prospectively to refund applications filed on or after its effective date and not to earlier applications.

Transitional credit filing window extended: one time portal filing or revision allowed with prescribed declarations and verification by officers.
The circular permits a one time, time bound facility on the GST common portal to file or revise Forms GST TRAN 1/TRAN 2; applicants must submit forms signed or EVC verified, upload Annexure A and TRANS 3 where applicable, may edit forms only before clicking "submit" after which forms freeze and must be filed with DSC/EVC, and must provide a self certified copy plus supporting records to the jurisdictional tax officer within seven days for verification; allowed transitional credit will be reflected in the electronic credit ledger following adjudication.

State GST reimbursement for cinema admissions requires ticket price maintenance, no GST charging, and prominent ticket disclosure.
Reimbursement of State GST is authorised for admission to the film 'Dada Lakhmi Chand' during a limited period provided cinemas/multiplexes do not increase ticket prices or change seat class capacities, do not charge State GST to customers, and display on tickets that State GST was not collected by government order. Registered taxpayers must still file returns and deposit tax on the entry fee from their own resources as for other films. Collections outside the authorised period are not reimbursable; SOP for processing reimbursements is available on the department website and a separate Finance Department order will be issued.

Reimbursement of SGST on film admissions authorised with conditions on pricing, tax payment, documentation and claim procedure.
Reimbursement of State GST on admission to exhibition of the film 'Take It Easy' is authorised for a limited period from release, conditional on exhibitors maintaining preexisting ticket pricing and seat-class capacity, invoicing and depositing full CGST and SGST via GST returns while not collecting SGST from viewers, endorsing tickets to that effect, and filing a detailed claim with the Commissioner of State Taxes within the prescribed post period window with supporting show, ticket and tax payment records; the Commissioner will verify, sanction and disburse eligible claims or provide hearing and reasons for rejection with a limited right of appeal.

Mobile Squad enforcement reporting shifts to BO Web Portal processing, with interception numbers, Case IDs, and transporter entries streamlined.
Online processing of Mobile Squad enforcement work is to continue through the BO Web Portal developed by GSTN, with data received through API integration and an ARN-wise Collection Report available in the MS Section under the Enforcement tab. Re-entry of Register-5 report data on the departmental website's Enforcement tab is no longer required. Earlier instructions are superseded. Interception numbers are to be obtained by SMS, Case IDs generated on the BO Web Portal, and entries in the MS Entry Module are to be made only for action against identified tax-evading transporters.

Festival season GST enforcement targets taxable goods, e-commerce transactions, vehicle checks, and daily progress reporting.
Intensive enforcement against possible GST tax evasion was directed during the festival season from 17-10-2022 to 31-10-2022, in view of the sharp rise in sales, stocking, transport, and e-commerce movement of taxable goods such as gold and bullion, dry fruits, sweets, electrical and electronic goods, textiles, readymade garments, utensils, gift items, FMCG goods, and firecrackers. Vigilance/Enforcement units and Mobile Squad units were instructed to inspect relevant business premises, warehouses, cold storages, vehicles, and online transactions, and to submit daily progress reports in a prescribed format.

Inter-State supply reporting and input tax credit reversals require accurate place-wise disclosures and exclusion of ineligible credits.
Inter-State supplies to unregistered persons and composition taxable persons must be reported place-of-supply-wise in Table 3.2 of FORM GSTR-3B and corresponding FORM GSTR-1 tables, with correct customer State details and place of supply. ITC auto-populated in Table 4(A) must be adjusted through Table 4(B) so that ineligible or reversed credit is excluded from net ITC credited to the electronic credit ledger. Permanent reversals, including blocked ITC, belong in Table 4(B)(1), while reclaimable reversals belong in Table 4(B)(2).

Fraudulent Input Tax Credit triggers GST demand and exclusive penal liability; fake invoice issuers face separate penal provisions.
Issuing tax invoices without actual supply is not a "supply" and does not create tax demand under the DGST Act for the issuer, but the issuer is punishable for issuing invoices without supply. A recipient who fraudulently avails and utilizes ITC without receipt of goods/services is liable to demand and recovery of the ITC with interest and penal action under the fraudulent-ITC provision, with exclusivity of that penalty. If such a recipient passes on the credit by issuing invoices without supply, no tax demand arises for nonexistent outward supply, but penal provisions for issuing fake invoices and wrongful availment/utilization of ITC apply, and others who benefit may also be penalised.

Portal Access Allocation: role-based logins and a verification workflow ensure appropriate departmental access and data control.
Role-based login IDs and passwords are to be allotted on Boweb and Vyas Central per Circular No. 3186: Boweb roles (Assistant to Appellate Authority, Advance Ruling steno roles, Assistant to Commissioner, View Jurisdictional Record/Dashboard) are assigned to specified clerical, stenographer, inspector, computer, collection and number cadres; Vyas Central grants View/Enter/Edit permissions for module menus to those cadres for data feeding without a Verification option, with verification reserved to designated officers; sub-state and local administrators will provision credentials and offices must ensure staff receive access within the prescribed period and notify the ID section and headquarters.

Transitional credit filing reopened; eligible taxpayers may file or revise FORM GST TRAN 1/TRAN 2 once on the GST portal.
The circular implements the Supreme Court direction allowing a one time opportunity to file or revise claims for Transitional Credit via FORM GST TRAN-1/TRAN-2 on the GST portal within the court specified window. Filings must include the Annexure A declaration and TRANS 3 where applicable; TRAN 2 claims must be consolidated. Edits are permitted only until the filer clicks "Submit," after which filing requires DSC/EVC. A self certified copy and supporting documents must be furnished to the jurisdictional officer within seven days; officers will verify, hear the applicant and pass orders, with allowed credit reflected in the Electronic Credit Ledger.

Transitional credit reopening allows eligible registered taxpayers to file or revise TRAN-1/TRAN-2 via the common portal.
A one-time reopening of the GST common portal permits aggrieved registered taxpayers to file or revise claims for Transitional Credit via FORM GST TRAN-1/TRAN-2 within the prescribed window; submissions must include the Annexure A declaration and, where applicable, TRANS-3, be downloaded and self-certified and submitted to the jurisdictional tax officer within seven days, and will be subject to verification and adjudication with permitted credit, if allowed, being reflected in the Electronic Credit Ledger.

Contractual consideration for refraining, tolerating or doing an act is taxable only if an independent contractual supply exists.
GST applies to payments only when there is an express or implied contract under which one party agrees to refrain from, tolerate, or do an act in exchange for consideration; amounts that are merely compensatory or punitive consequences of breach, statutory compensation, forfeiture, or fines are not consideration for such a supply and are not taxable, while contractual ancillary charges (cancellation fees, late payment surcharges, pre payment or early termination charges) that form part of the commercial terms are taxable as supplies and assessed with the principal supply.

GST exemptions on services: Council clarifies rates and scope for supplies including education, healthcare, transit and leases.
Ice cream parlours must charge GST at 18% with ITC from 06.10.2021, with past payments at 5% treated as fully paid; educational institution fees for entrance, eligibility or migration certificates are exempt; storage of ginned/baled cotton was exempt as raw vegetable fibre prior to 18.07.2022; transit cargo services to and from Nepal and Bhutan including return of empty containers are exempt; renting of goods vehicles with operator is a 9966 rental service (taxed 18% prior to 18.07.2022, 12% where fuel included after 18.07.2022); location charges paid upfront with long term lease are part of exempt upfront amount; ART/IVF and health care services are exempt; sale of developed land is not taxable.