Consideration for contractual obligation: GST applies when payment is for agreeing to do, refrain from, or tolerate an act.
GST attaches only where payment constitutes consideration for a supply - an express or implied agreement by which one party agrees to do, refrain from, or tolerate an act in return for payment. Payments that are merely compensation for breach, statutory or deterrent penalties, cheque dishonour fines, and forfeiture of earnest money or bond recoveries do not constitute consideration for tolerating or refraining and are not taxable. By contrast, charges that are consideration for ancillary facilities bundled with a principal taxable supply (e.g., cancellation fees, late payment charges, early termination or prepayment penalties) are taxable and assessed as part of the principal supply; exempt principal supplies render such ancillary charges non taxable.

GST classification clarified: key goods including electric vehicles and processed food forms allocated specific GST rates and classifications.
Electrically operated vehicles that run solely on electrical energy are classifiable under HSN 8703 and attract 5% GST even if batteries are not fitted at the time of supply; similarly, Napa and minor-polished calcareous building stones qualify for the concessional rate, fresh mangoes are exempt while non-sliced dried forms including pulp attract the higher rate, treated sewage water is GST exempt under heading 2201, nicotine polacrilex gum for cessation is classifiable under oral nicotine products at 18%, the 90% fly ash content condition applies only to aggregates not bricks, and pulse-milling by-products used as cattle feed attract 5% GST with past periods regularised on an as-is basis.

Bogus Input Tax Credit cases require priority action, updated reporting, and officer accountability under the Enforcement Alert Module.
Input Tax Credit claimed on invoices issued without actual supply of goods is treated as inadmissible, and cases identified through the Enforcement Alert Module are to be acted upon at the divisional level on a priority and time-bound basis. Updated action reports are required for the top 20 cases involving the highest ITC available under the Successive GSTIN Zone Wise menu of the Enforcement Alert Module, with responsibility to be fixed where timely action has not been initiated or completed.

GST classification of electrically operated vehicles clarified; absence of fitted battery does not change classification, reduced rate applies.
Clarifications: electrically operated vehicles remain classifiable under HSN 8703 even if supplied without batteries and attract the concessional five per cent GST; Napa and similar minor polished dimensional stones qualify for the concessional five per cent entry; mango forms under CTH 0804 are distinguished-fresh mangoes exempt, sliced dried concessional, other processed forms including pulp at standard rate; treated sewage water under heading 2201 is exempt; nicotine polacrilex gum for cessation is classifiable under the oral nicotine tariff item at the standard rate; fly ash content condition applies only to aggregates; dal milling by products under heading 2302 attract the concessional rate when used as cattle feed ingredient.

Consideration for tolerating or refraining from an act taxable only where an express or implied contractual supply exists.
GST applies to payments only when they constitute consideration for an independent contractual supply of agreeing to refrain from an act, to tolerate an act or situation, or to do an act. Payments that merely compensate for breach, statutory cancellation compensation without a toleration agreement, penalties for legal violations, cheque dishonour fines and forfeiture of earnest money where nothing is supplied in return are not consideration and are not taxable. Conversely, charges that represent ancillary facilities bundled with a principal supply (late payment acceptance, cancellation fees, early termination or prepayment facilities) are consideration for supply and taxable at the rate of the principal supply.

GST exemptions clarified for various services, specifying applicable rates, reverse charge liabilities and retrospective regularisation where applicable.
Clarifies GST applicability and rates across specific services: ice cream parlours attract 18% with ITC from October 14, 2021 and past 5% payments without ITC are regularised; educational entrance/application and migration fees are exempt as services by educational institutions to students; storage of ginned/baled cotton was exempt prior to July 18, 2022; transit cargo services to and from Nepal and Bhutan are exempt subject to customs/transhipment and tracking rules; renting of vehicles with driver for mineral transport is taxable as rental (heading 9966) and not exempt transport; IVF services are exempt as health care; sale of land (even after basic development) is not taxable.

GST applicability on services clarified across exemptions, rental vehicle taxation, transit cargo and healthcare services.
Clarifications specify GST chargeability and rates across diverse services: ice cream parlours are subject to standard GST with ITC from the revised effective date and past concessional payments are regularised as fully paid; educational institution fees for entrance, eligibility and migration certificates are exempt; storage/warehousing of ginned or baled cotton was covered by the pre amendment raw fibre exemption; transit cargo services to and from Nepal and Bhutan (including return empty containers) are exempt subject to customs/transshipment procedures; renting of vehicles with driver is taxable rental service and corporate recipients may be liable under reverse charge; IVF services qualify as exempt health care services; sale of land (even after development) is outside GST.

Refund of unutilised ITC on export of electricity: filing, documentation and calculation procedure clarified for applicants.
Claimants must file FORM GST RFD-01 under "Any Other" with remark "Export of electricity- without payment of tax (accumulated ITC)", upload Statement 3B (export invoice details, energy exported, tariff per unit), monthly REA statement of scheduled energy from RPC Secretariat and export agreement(s), and Statement 3A showing refund calculation. No initial debit from the electronic credit ledger is required; the proper officer may later request debit via FORM GST DRC-03 before issuing refund and payment orders. Turnover for refund uses REA scheduled energy multiplied by contracted tariff, using the lower of invoice or REA quantities where they differ.

Re-credit in electronic credit ledger enabled via FORM GST PMT-03A after deposit of erroneously sanctioned refunds.
Prescribes re-credit in the electronic credit ledger via FORM GST PMT-03A where a taxpayer deposits an erroneously sanctioned refund by payment through FORM GST DRC-03 from the electronic cash ledger with interest and penalty. Taxpayers must submit the prescribed written request (Annexure-A) to the jurisdictional proper officer; the officer, on satisfaction of full payment, shall re credit an equivalent amount to the electronic credit ledger by order in FORM GST PMT-03A, preferably within 30 days from request receipt or payment.

Online appeal admission under GSTN module must proceed despite technical issues, with immediate IT resolution and rule-based admission.
Online appeals under the Uttar Pradesh Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017 are filed through the GSTN Appeal Module in APL-01, and the appellate authority can view the appeal on login. If a technical problem affects online admission after the prescribed appellate amount has been deposited, the issue must be taken up immediately with the Headquarters IT Section, and the appeal must be admitted in accordance with rules.

GST classification of electrically operated vehicles: absence of battery does not preclude concessional GST treatment for such vehicles.
Electrically operated vehicles are classifiable under HSN 8703 and attract the concessional rate even if batteries are not fitted at supply; Napa and similar minor-polished building stones qualify for the concessional entry notwithstanding lack of mirror polishing; mango forms are distinguished-fresh exempt, sliced dried concessional, other processed forms including pulp taxable at the higher rate; treated sewage water under heading 2201 is exempt; Nicotine Polacrilex gum for cessation is classifiable under the new nicotine tariff item and taxable accordingly; the 90% fly ash content condition applies only to fly ash aggregate; dal-milling by-products fall under heading 2302 and attract the concessional rate, with past periods regularizable.

GST exemptions and rates clarification: redefined treatment for services including rentals, education fees, transit cargo and healthcare.
Clarifications consolidate GST Council and CBIC positions on rates and exemptions: ice cream parlours charged 18% with ITC from 06.10.2021 (past 5% payments treated as discharged), advertising space in souvenir books taxed at concessional 5%, turnkey dairy plant contracts treated as works contracts eligible for 12% prior to 18.07.2022 and 18% thereafter, and educational entrance/application/migration fees exempt. Storage of ginned/baled cotton was exempt prior to 18.07.2022; transit cargo services to/from Nepal and Bhutan are exempt subject to customs transit compliance. Renting of vehicles with operator is a taxable rental service (heading 9966) with reverse charge implications for corporate hirers.

GST classification clarifications: electric vehicles, mango products, treated sewage, nicotine gum, fly ash and pulse by products reclassified.
Clarifies GST classification and rates: electrically operated vehicles fall under HSN 8703 and attract the concessional rate even without batteries; Napa and similar minor polished building stones qualify for concessional treatment; fresh mangoes are exempt, sliced dried mangoes attract concessional rate while other dried forms including pulp attract the standard taxable rate; treated sewage water is exempt as water; nicotine polacrilex gum for cessation is classifiable under nicotine oral products with the applicable taxable rate; the 90% fly ash content condition applies only to aggregates and not bricks; pulse milling by products used as cattle feed are classifiable under bran/residues heading and attract the concessional rate, with past periods regularised.

Agreement to tolerate an act: only contractual consideration constitutes a GSTable supply; penalties and statutory compensation generally not taxable.
GSTability hinges on whether a payment is consideration for a contractual agreement to refrain, tolerate or do an act. Only where an express or implied agreement exists and consideration flows as payment for that agreed-for activity will the receipt constitute a taxable supply; mere compensatory payments, statutory compensation, fines for breach or penalties for violation of law that do not procure an agreed toleration or act are not consideration and are not taxable.

GST classification and exemptions clarified: scope of taxable services, rental versus transport distinction, and exemption boundaries.
Clarification of GST applicability across specified services: ice cream parlours supply now treated as standard taxable supply with past concessional payments regularised without refunds; educational institution entrance, admission and migration fees are exempt; storage of ginned or baled cotton was exempt as raw vegetable fibre before the exemption's withdrawal; transit cargo services to and from Nepal and Bhutan, including return of empty containers, are exempt subject to customs and tracking rules; renting of transport vehicles with operator is rental service distinct from passenger transport and attracts separate tax treatment with corporate reverse charge liability when the vehicle is at hirer's disposal.

Withdrawal of circular: administrative guidance on refunds for airport retail supplies rescinded after retrospective rule omission.
The Commissioner withdraws the earlier circular that provided clarifications on refunds for inward supplies to outgoing international tourists at airport departure retail outlets because the underlying rule has been omitted retrospectively, and the circular is withdrawn ab initio under the Commissioner's statutory powers, thereby removing the prior departmental guidance on refund eligibility for such supplies.

Refund of unutilised ITC for exported electricity: portal filing, REA documentation, and formulaic calculation required.
Procedure for refund of unutilised ITC on export of electricity: file FORM GST RFD-01 under "Any Other" with remark "Export of electricity- without payment of tax (accumulated ITC)", upload Statement 3B with export invoices, scheduled energy and contracted tariff, the monthly REA statement from RPC Secretariat, and Statement 3A calculation. Relevant date is the last day of the month per REA. Turnover for export equals scheduled energy (as per REA or lower of REA and invoice) times contractual tariff; adjusted total turnover excludes domestic electricity. Proper officer applies the formulaic refund calculation, may request debit via FORM GST DRC-03, then issues FORM GST RFD-06 and RFD-05.

Re-credit of electronic tax credit: procedure for restoring erroneously sanctioned refunds after deposit via the payment form.
Where a registered person deposits an erroneously sanctioned refund with applicable interest and penalty through FORM GST DRC-03 by debit to the electronic cash ledger, the jurisdictional proper officer shall, after satisfaction that full payment has been made (including interest under section 50 and penalty where applicable), re-credit an amount equivalent to the erroneous refund into the electronic credit ledger by order in FORM GST PMT-03A, preferably within 30 days of receipt of the request or payment, whichever is later.

GST registration applications should be processed promptly, with only necessary objections and single-time deficiency communication.
Instructions were issued for the expeditious disposal of GST registration applications and for avoiding unnecessary objections at the registration stage. Officers were directed to process applications in accordance with the GST Act, rules and the relevant registration circulars, and not to raise avoidable objections that delay issuance or cause harassment. Any deficiency in an application is to be communicated at one time only, and registration is to be granted promptly without unnecessary delay.

Contractual consideration nexus: GST applies only where payment is consideration for agreeing to do, refrain, or tolerate acts.
GST applies to payments only when they are consideration for an agreement to refrain, tolerate or do an act under paragraph 5(e) of Schedule II; absent an express or implied contractual promise and a nexus between supply and payment, liquidated damages, statutory compensation, fines, forfeitures and penalties that merely compensate for breach, deter violations, or flow from statutory orders are not supplies and not taxable, whereas payments that constitute consideration for ancillary or facilitation services (like cancellation fees, late payment acceptance, or pre payment/early termination facilities) are taxable and assessed with the principal supply.