Reverse charge for director-supplied services clarifies personal-capacity rentals are excluded whereas director-capacity supplies attract RCM.
Services supplied by a director to the company attract Reverse Charge Mechanism only when supplied by him in his capacity as director; personal-capacity supplies such as renting immovable property are excluded. Food or beverages supplied in cinema premises constitute restaurant service if supplied by way of or as part of a service and independently of the exhibition service, while bundled ticket-and-food sales that form a composite supply are taxable at the rate applicable to the principal exhibition service.

GST rate reclassification for specified goods; certain supplies reclassified and past period treatments regularised on an as is basis.
Circular clarifies GST classification and revised rates for specified goods (including extruded un cooked snack pellets, fish soluble paste, desiccated coconut, biomass briquettes, imitation zari yarn, raw cotton supplies to cooperatives, areca leaf plates and cups, and goods under HSN 9021), notifies the applicable tariff headings and rate changes effective from the Council recommendations, and regularises past-period treatment on an "as is" basis while stating no refunds where higher GST was already paid.

Input tax credit allocation: HO may use ISD or issue invoices to BOs, with valuation rules for full ITC.
HO may either distribute ITC for common input services to BOs via the Input Service Distributor mechanism (requiring ISD registration) or issue tax invoices under section 31 so BOs can avail ITC; distribution or invoicing is allowed only where services are attributable to or actually provided to the BOs. For internally generated services, where the recipient BO is eligible for full ITC the invoice value is deemed open market value under rule 28; omission of specific cost components does not alter that deemed value. Employee salary need not be compulsorily included in value where recipient is not eligible for full ITC.

E-invoicing requirement: suppliers exceeding turnover threshold must issue e-invoices for supplies to government entities registered for tax deduction.
Government Departments, establishments, agencies, local authorities and PSUs registered solely for tax deduction at source are to be treated as registered persons under GST; suppliers whose turnover exceeds the prescribed e-invoicing threshold must therefore issue e-invoices for supplies made to such government entities under the applicable GST rules.

Refund entitlement tied to ITC reflected in GSTR 2B, with adjusted turnover and undertaking rules clarified for exporters.
Refund of accumulated input tax credit is restricted to ITC reflected in FORM GSTR 2B for the tax period or any prior tax periods where credit is available; this applies to refund claims from January 2022 onwards. The FORM RFD 01 undertaking remains required but references to Section 42 and to FORM GSTR 2 and FORM GSTR 3 are deleted. Adjusted total turnover must include export values as determined by the Explanation in rule 89(4). Exporters who later export or realize payment may claim refund of unutilized ITC and, within permitted timeframes, refund of IGST paid earlier, but interest paid under rule 96A(1) is not refundable.

Taxability of holding shares in a subsidiary: mere shareholding is not a supply and is not taxable under GST.
Holding of shares in a subsidiary by a parent company does not, by itself, constitute a supply of services under GST and is not taxable on that basis. Securities, including shares, are neither goods nor services; classification entries like SAC 997171 do not convert mere shareholding into a taxable service. Taxation requires an actual supply as defined by law, so holding share capital in a subsidiary cannot be treated as a supply of services and cannot be taxed under GST absent facts establishing a supply.

Input tax credit: warranty replacement parts and repair services supplied without extra charge are not subject to further GST.
Replacement parts and repair services provided during a warranty without separate consideration do not attract further GST because the original supply value includes anticipated warranty costs; any additional consideration charged for replacements or repairs is taxable. Manufacturers need not reverse input tax credit for such warranty replacements or repairs. Distributor scenarios vary: no GST when distributor provides warranty service to the customer without charging them; GST applies when distributor charges either the customer or the manufacturer under a taxable supply. Extended warranties contracted at sale form part of the composite supply; those contracted later are separate taxable contracts.

TCS liability with multiple e-commerce operators: supplier-side ECO collects TCS unless supplier is an ECO, then buyer-side collects.
Where multiple ECOs facilitate a supply and the supplier-side ECO is not the supplier, the supplier-side ECO who ultimately releases payment to the supplier must collect and remit TCS and comply with Section 52; the buyer-side ECO that only forwards funds after its commission is not required to collect TCS. Conversely, if the supplier-side ECO is itself the supplier, the buyer-side ECO that collects payment and remits the balance must collect and remit TCS and perform Section 52 compliances.

Input Tax Credit reconciliation: guidance limits permissible excess ITC claimed against supplier reported credits and requires supplier payment proof.
Clarifies treatment of discrepancies between Input Tax Credit claimed in FORM GSTR-3B and that reflected in FORM GSTR-2A for 01.04.2019-31.12.2021, applying prior circular guidance to pre rule periods and prescribing percentage caps on additional credit permitted for specified sub periods. Additional ITC under the rule was a facilitative measure subject to the core condition that supplier tax must be paid; excess beyond prescribed caps is inadmissible even with certificates. From the later statutory amendment date, ITC is allowed only if reported by suppliers and communicated through automated communication, with cumulative adjustment provisos noted and applicability limited to ongoing proceedings.

GST refund powers now extend to State Tax Officers for provisional refunds, refund orders, and deduction of unpaid dues.
Delegation of refund powers under the Gujarat Goods and Services Tax Act, 2017 is amended to authorise State Tax Officers to grant provisional export refunds, issue refund orders, and withhold refunds or deduct unpaid dues before payment. These powers are exercisable alongside Deputy Commissioners and Assistant Commissioners under the revised Schedule-A delegation framework.

Reverse charge applicability clarified: director's personal services excluded while cinema food qualifies as restaurant service unless bundled.
Tax under the Reverse Charge Mechanism applies only to services supplied by a director in his capacity as director to the company or body corporate; services supplied by a director in a private or personal capacity, such as renting immovable property to the company, are not taxable under RCM. Supply of food or beverages in a cinema hall is taxable as restaurant service if supplied by way of or as part of a service and independent of the cinema exhibition service; bundled supplies that form a composite supply will attract the GST rate of the principal supply.

Document Identification Number requirement extended to communications by revenue intelligence officers, enhancing electronic traceability and accountability under GST.
Specified communications under the WBGST framework issued by officers appointed to act in the Directorate of Revenue Intelligence and Enforcement must bear an electronically generated Document Identification Number (DIN) produced from the Directorate of Commercial Taxes website, with the modalities, exceptions and directions of the earlier Trade Circular applicable to these officers.

Interest on wrongly availed ITC: charged only when total ITC balance across tax heads falls below the wrongly availed amount.
For interest under rule 88B, calculation must consider the aggregate ITC balance across IGST, CGST and SGST in the electronic credit ledger. No interest is payable if, between availment and reversal, the combined ITC balance never falls below the wrongly availed IGST amount; interest arises only to the extent the total ledger balance falls short of that amount. Compensation cess credit is excluded from this aggregate because it cannot be applied to CGST, SGST or IGST liabilities or reversals.

Input tax credit: HO may use ISD or invoice BOs; invoice value deemed open market value when recipient has ITC.
Where an HO procures common input services for itself and BOs, it may either distribute input tax credit via the ISD mechanism (with mandatory ISD registration if used) or issue tax invoices to BOs; when a BO is eligible for full ITC the invoice value is deemed to be the open market value under rule 28, irrespective of whether specific cost components were included, and salary costs need not be mandatorily included in value where recipient BOs lack full ITC.

GST classification of Rab: pre-packaged labelled sales taxable; other sales treated as exempt under the trade circular.
Rab is classified for GST by mode of sale: from 1 March 2023 Rab sold in pre-packaged and labelled form attracts a specified GST rate, while Rab sold in other than pre-packaged and labelled form is Nil-rated. The circular regularises past-period treatment on an "as is" basis to address divergent interpretations and directs reporting of implementation difficulties to the Commissioner, State Tax, West Bengal.

Subsidy classification: incentives to acquiring banks for RuPay/BHIM-UPI transactions are not taxable under GST.
Accommodation services provided by military and similar messes to personnel who are not business entities are exempt under Sl. No. 6 of Notification No. 1136-F.T. dated 28.06.2017 if supplied by Central/State/UT/local authority. Incentives paid by MeitY to acquiring banks for RuPay and low-value BHIM-UPI transactions are subsidies directly linked to service price and do not form part of taxable value under section 2(31) and section 15 of the WBGST Act, 2017, and thus are not taxable.

GST classification updates: clarified rates and HS codes for Rab, pulse by products, beverages, snacks, SUVs, and IGST imports.
Rab is classifiable under Tariff heading 1702 and attracts GST at eighteen percent. By-products of pulse/dal milling such as Chilka, Khanda and Churi/Chuni are fully exempt from GST irrespective of end use from 1 January 2023, with transactions from 3 August 2022 regularized on an as is basis. Carbonated fruit beverages containing carbon dioxide are covered by a specific HS classification and attract the highest GST slab plus compensation cess. Extruded snack pellets are classifiable as extruded savoury products attracting GST at eighteen percent. SUVs meet compensation cess only if all specified technical criteria are satisfied. Importers of goods listed for specified purposes may claim a lower IGST rate where eligible under another notification.

GST classification clarifications: reclassifies electric vehicles, stones, mango products, treated water and nicotine gum, adjusting applicable rates.
Electrically operated vehicles are classifiable under HSN 8703 and attract the concessional GST rate even if batteries are not fitted at supply; Napa and similarly minor polished building stones qualify under the concessional entry; mango forms are treated distinctly with fresh mangoes exempt, sliced dried concessional and other processed forms including pulp taxable; treated sewage water is exempt under heading 2201; Nicotine Polacrilex gum for cessation is classifiable under nicotine oral products; the 90% fly ash condition applies only to aggregates not bricks; by-products of pulse milling fall under heading 2302 and attract the concessional rate.

GST classification clarifications set revised treatment and past-period regularisation for specified goods, with refunds barred for taxes already paid.
Uncooked or unfried extruded snack pellets and fish soluble paste attract GST at 5% from 27 July 2023, while ready-to-eat extruded snack pellets remain taxable at 18%. Supply of raw cotton by agriculturists to registered cooperatives is taxable at 5% under the reverse charge mechanism. Imitation zari thread or yarn attracts GST at 5%, and goods under HSN heading 9021 attract GST at 5%, except nil-rated hearing aids. Specified past-period issues are regularised on an "as is" basis, with no refunds where GST has already been paid.

Reverse charge applies only to director-capacity services, while independently supplied cinema food qualifies as restaurant service.
Reverse charge applies to services supplied by a director only when rendered in the capacity of director. Personal-capacity supplies, including renting immovable property to the company or body corporate, are outside reverse charge. Food or beverages supplied independently in cinema halls through stalls, kiosks, counters, or restaurants constitute restaurant service. Where cinema tickets and food or beverages are bundled as a composite supply, the entire supply is taxable at the rate applicable to cinema exhibition as the principal supply.