Late fee applicability for delayed GST reconciliation clarified: fee runs until complete annual return including reconciliation is filed.
Clarification explains that when FORM GSTR 9C is required, the annual return is incomplete if only FORM GSTR 9 is filed, and the late fee applies for the period from the annual return due date until the complete annual return (FORM GSTR 9 plus FORM GSTR 9C) is furnished. The late fee is not charged separately for delays in each form but is calculated until the combined filing obligation is fulfilled. A waiver is provided for past years subject to specified filing by the announced final date; no refunds for fees already paid.

GST clarifications on penal charges, payment aggregators, skilling services and other exemptions reshape service tax treatment.
Clarifications are issued on the GST treatment of certain services, including penal charges levied by regulated entities, settlement services by RBI-regulated payment aggregators, research and development services against grants, skilling services by NSDC-approved training partners, facility management services to MCD, the status of DDA as a local authority, reverse charge on renting of commercial property for composition taxpayers, electricity utility support services, and services provided by Goethe Institute/Max Mueller Bhawans. Several past periods are regularized on an as is where is basis, while specific exemptions are clarified or restored prospectively.

GST regularization for co-insurance apportionment and reinsurance commission transactions under an as is where is basis.
Regularizing GST treatment of co-insurance premium apportionment and ceding or reinsurance commission deducted from reinsurance premium. The circular treats these transactions as neither a supply of goods nor a supply of services, subject to the condition that tax is paid on the full or gross premium, as applicable. It also regularizes GST payment for the past period on an as is where is basis from 01.07.2017 to 31.10.2024.

GST classification clarifications: rates and exemption treatment for pepper, raisins, popcorn, AAC blocks, and compensation cess effective dates.
Pepper of genus Piper falls under HS 0904 and is subject to the Schedule I GST rate; dried pepper and raisins supplied by an agriculturist are exempt and not liable for registration under Section 23(1) of the KGST Act. Ready-to-eat popcorn mixed with salt and spices is classifiable under HS 2106 90 99 with different GST treatment for prepackaged labelled and other forms, while sugar-mixed popcorn is classifiable under HS 1704 90 90. AAC blocks with over fifty percent fly ash fall under HS 6815. Amendment to Compensation Cess entry 52B is effective on or after 26.7.2023.

Late fee applicability clarified: fee runs until the complete annual GST return, including reconciliation, is filed.
Delay in furnishing a required reconciliation statement in FORM GSTR-9C renders the annual return under section 44 incomplete; late fee under subsection (2) of section 47 is leviable from the due date of the annual return until the date the complete annual return (FORM GSTR-9 and FORM GSTR-9C where required) is furnished. The late fee is computed for that single period and is not charged separately for each form. A limited waiver for past years is available subject to conditional furnishing of FORM GSTR-9C by the prescribed cutoff, with no refund for fees already paid.

GST classification and rates clarified for pepper, raisins, ready to eat popcorn and fly ash AAC blocks, with past period regularisation.
Pepper of genus Piper is classifiable under HS 0904 and attracts 5% GST; dried pepper and raisins supplied by agriculturists from cultivation are exempt and not liable to register. Ready to eat popcorn mixed with salt and spices is classifiable under HS 2106 90 99 and attracts 5% GST if non prepackaged and 12% GST if prepackaged and labelled, while popcorn mixed with sugar is classifiable under HS 1704 90 90 attracting 18% GST; treatment for salted/spiced popcorn is regularised for past periods. AAC blocks with over 50% fly ash fall under HS 6815 and attract the fly ash rate. The compensation cess amendment on vehicle ground clearance applies from its substitution date.

GST classification clarifications: specify taxable rates and exemption treatment for pepper, raisins, popcorn, AAC blocks, and vehicle cess applicability.
Clarification directs uniform GST treatment: pepper of genus Piper attracts the concessional pepper rate and dried pepper and raisins supplied by agriculturists are exempt from GST and not liable for registration; ready-to-eat popcorn mixed with salt and spices is taxed at a lower rate when not pre-packaged and at a higher rate when packaged and labelled, while sugar-coated popcorn is treated as confectionery at the higher rate and prior doubts on ready-to-eat popcorn are regularised for the past period; AAC blocks with majority fly ash attract the fly ash article rate; and the amended compensation cess entry applies from its stated effective date.

Complete annual return filing requires mandatory FORM GSTR-9C, with late fee continuing until both annual-return components are furnished.
Where FORM GSTR-9C is mandatory, the annual return is complete only when both FORM GSTR-9 and FORM GSTR-9C are furnished. Late fee under section 47(2) applies from the annual-return due date until the complete annual return is filed; it is not separately levied for delays in the two forms. Where FORM GSTR-9C is not required, FORM GSTR-9 determines completion. Excess late fee may be waived for eligible delayed complete annual returns up to the financial year 2022-23 if FORM GSTR-9C is furnished by the specified date, without refund of late fee already paid.

GST service clarifications exempt loan penal charges and define payment settlement relief while regularizing specified intervening-period tax payments.
Penal charges imposed by regulated banks and non-banking financial companies for breach of material loan terms are not consideration for tolerating an act and attract no GST. RBI-regulated Payment Aggregators qualify as acquiring banks for the limited card-payment settlement exemption, but Payment Gateway services are excluded. GST payments for specified past periods are regularized on an as is where is basis for Government-grant-funded research services, eligible skilling services, reverse-charge commercial renting involving composition taxpayers, and listed ancillary electricity transmission or distribution utility services.

GST treatment of co-insurance apportionment and ceding commission is regularized where tax is paid on the prescribed gross premiums.
Specified co-insurance premium apportionment and insurer services involving deduction of ceding or reinsurance commission are treated as neither supply of goods nor supply of services, subject to GST payment on the full insured premium by the lead insurer and on gross reinsurance premium, inclusive of commission, by the reinsurer. GST payments on these transactions for the stated past period are regularized on an "as is where is" basis.

Virtual personal hearings under GST to be conducted by video conferencing on taxpayer request, with emailed records and structured submission procedures.
Personal hearings under the GST Act may be conducted in virtual mode through video conferencing where a taxpayer requests that mode of hearing. The procedure covers notice of hearing, transmission of the video link by official email, participation of authorised representatives, preparation of a record of personal hearing, and submission of scanned additional documents within the prescribed period.

Petroleum dealer tax compliance requires timely quarterly returns, monthly tax payments, and default charges for unfiled returns.
Petroleum dealers must file quarterly returns by the prescribed quarterly due dates. Dealers are required to pay tax on sales for each month other than the final month of a quarter within 21 days after month-end, and must pay the balance tax due before furnishing the quarterly return. Return-filing defaults attract tax at 2% per month from the date tax became due until payment or assessment, whichever is earlier.

Input tax credit treatment for electronic commerce operators under section 9(5) clarified for platform-based specified services.
Electronic commerce operators liable to pay tax under section 9(5) for specified services supplied through their platform are not required to reverse proportionate input tax credit on inputs and input services under sections 17(1) or 17(2) merely because such supplies are made under section 9(5). The clarification distinguishes those supplies from the ECO's own platform services and states that the tax on section 9(5) supplies must be paid only through the electronic cash ledger, while the related credit cannot be used for that liability but may be used for tax on the ECO's own services.

Input tax credit receipt rules cover Ex-works deliveries when goods are handed to a transporter at the supplier's premises.
Input tax credit under clause (b) of sub-section (2) of section 16 of the Andhra Pradesh Goods and Services Tax Act, 2017 is linked to receipt of goods, and the explanation deems receipt where goods are delivered by the supplier to the registered person or to another person on that person's direction before or during movement of goods. In an Ex-works contract, where the supplier hands over goods to a transporter at the supplier's factory gate and property passes at that stage, the recipient is treated as having received the goods at that time, even if physical receipt occurs later. Credit remains subject to the other conditions of sections 16 and 17.

Voucher GST treatment clarified for trading, commission-based distribution, ancillary services, and unredeemed voucher breakage.
Clarification is issued on the GST treatment of vouchers, including whether transactions in vouchers constitute a supply of goods or services, the tax position for distribution through distributors, sub-distributors or agents, ancillary services connected with voucher distribution, and the taxability of unredeemed vouchers or breakage. Pure trading of vouchers on a principal-to-principal basis is not leviable to GST, while commission-based distribution and separate ancillary services supplied for consideration are taxable as services. Amounts retained on account of unredeemed vouchers are not taxable because there is no underlying supply.

Place of supply clarification for online services to unregistered recipients requires mandatory State-name recording on invoices.
Clarification is issued on the place of supply for online services supplied to unregistered recipients. For online money gaming, OIDAR services and other online/digital services supplied directly or through an electronic commerce operator, the supplier must record the name of the State of the unregistered recipient on the tax invoice, irrespective of value. That State name is deemed to be the recipient's address on record for determining place of supply under section 12(2)(b)(i) of the IGST Act.

Co-insurance premium apportionment and reinsurance commission receive GST regularization where tax is paid on the full premium.
Co-insurance premium apportioned by a lead insurer to a co-insurer is treated as neither a supply of goods nor services where tax is paid on the entire premium paid by the insured. Insurer services to a reinsurer involving deduction of ceding or reinsurance commission are similarly excluded where tax is paid on the gross reinsurance premium inclusive of the commission. GST payments on both transactions are regularized on an as is where is basis for the period from 1 July 2017 to 31 October 2024.

Input tax credit under Ex-Works contracts arises when suppliers hand goods to recipient-directed transporters at their premises.
Under an Ex-Works contract, goods are treated as received for input tax credit purposes when the supplier hands them over at its premises to the recipient or a transporter acting on the recipient's behalf, where property in the goods passes at that point. Physical receipt at the recipient's business premises is not required for this condition. Credit remains subject to the other requirements under sections 16 and 17, including business use, and is unavailable for non-business diversion, loss, theft, destruction, write-off, gifts, or free samples.

Input tax credit for electronic commerce operators remains available without proportionate reversal, but specified-service tax must be paid in cash.
Electronic commerce operators paying tax on specified services supplied through their platforms need not reverse input tax credit proportionately merely because they bear tax liability as deemed suppliers. This applies to restaurant services and other specified services. Tax on such specified services must be paid wholly through the electronic cash ledger, and input tax credit cannot be used for that payment. Credit relating to inputs and input services may nevertheless be used to discharge tax liability on the operator's own platform-related services.

Late fee for delayed GSTR-9C applies where complete annual return is delayed; limited waiver available for past years.
Where FORM GSTR-9C is required, the annual return comprises both FORM GSTR-9 and FORM GSTR-9C and is incomplete unless both are filed. Late fee under the late fee provision is leviable for the delay in furnishing the complete annual return, calculated from the due date until the date the complete return is filed. Late fee is not charged separately for delayed filing of FORM GSTR-9 and FORM GSTR-9C; the date of completion depends on whether FORM GSTR-9C is not required, filed with FORM GSTR-9, or filed subsequent to FORM GSTR-9. A notified waiver limits additional late fee for past years if reconciliation statements are filed within the prescribed window, and no refunds are allowed for late fee already paid.