Taxability of contractual penalties: GST applies only when payments constitute consideration for an independent contractual supply, not mere compensation.
GST treatment of payments such as liquidated damages, penalties, compensation or cancellation and late payment charges depends on whether the payment constitutes consideration for an agreement to refrain from an act, to tolerate an act or situation, or to do an act under para 5(e) of Schedule II. Payments that are merely compensatory flows for breach, statutory compensation or fines for violations are not consideration for a supply and are not taxable; payments that represent consideration for ancillary or independent contractual facilities (eg. cancellation fees, late payment acceptance, prepayment or early termination charges) are taxable and assessed as the principal supply where applicable.

GST exemptions and rates clarified for ice cream parlours, educational fees, transit cargo, IVF and vehicle rentals.
Clarifications specify that ice cream sold by parlours is a taxable supply at the standard rate with ITC from the circular date while past lower rate payments are regularised without refund; educational institution fees for entrance, applications, eligibility and migration certificates are exempt; storage of ginned or baled cotton was exempt as raw vegetable fibre until its withdrawal on 18.07.2022; transit cargo related services to and from Nepal and Bhutan, including return of empty containers, are covered by the exemption subject to customs/transit compliance; rentals of vehicles with operator used within mining areas are renting services taxed as such and not exempt transport; IVF services are healthcare and exempt; sale of land remains non taxable though development services are taxable; reverse charge applies where corporates hire vehicles for control over operation.

GST treatment of services clarified: ice cream parlours at standard rate, educational fees exempt, transit cargo and vehicle rental classifications specified.
GST clarifications: ice cream parlours supply taxed at 18% with ITC from 06.10.2021 (past 5% treated as fully paid); educational entrance/application/migration fees exempt as services by educational institutions; storage/warehousing of ginned/baled cotton was covered under raw vegetable fibers exemption until withdrawal on 18.07.2022; transit cargo services to and from Nepal/Bhutan (including empty containers) are exempt subject to customs/track and trace; renting of vehicles with operator within mining areas is rental service (heading 9966) taxable and not covered by goods transport exemption.

IT tools and MIS review drive compliance tracking through new reports on additional liability and cancelled GSTIN mismatches.
State Tax officers are instructed to use departmental IT tools and MIS modules developed from GSTN and portal data for field administration, transparency, and tracking of compliance-related discrepancies. Two newly developed MIS reports are highlighted: Additional liability in 9C and Liability of Cancelled GSTIN, for identifying additional tax and ITC liability and mismatches in declared supplies for cancelled registrations. Officers must use these modules along with earlier tools, record action taken in the relevant entry module, and include the new reports in weekly review meetings for ongoing monitoring and result-based review.

Fraudulent input tax credit: recipient faces demand and penalty, issuer liable under invoice issuance penal provisions.
Issuance of tax invoices without underlying supply does not constitute supply; no tax demand under demand-and-recovery provisions arises against the issuer, but the issuer is liable to penal sanction for issuing invoices without actual supply. A recipient who fraudulently avails and utilises ITC without receipt is liable to demand and recovery of the ITC with interest and penal action under fraudulent-ITC provisions; prosecution under those provisions bars a duplicate penalty for the same act. An intermediary who passes on ineligible ITC by issuing invoices without supply is not subject to tax demand for outward transactions but is liable to penal provisions for issuing invoices without supply and for utilising ITC without receipt.

Input tax credit treatment clarified: ITC for deemed export refunds excluded from Section 17 and Net ITC calculation.
Tax paid on supplies regarded as deemed exports has been made available as ITC solely to facilitate refund claims but is not ITC under Chapter V, thus not subject to Section 17 restrictions nor included in Net ITC for refund computations. The proviso to clause (b)(iii) of subsection (5) of Section 17 applies to the whole of clause (b). "Leasing" in the exclusion is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger may be used only for output tax (excluding reverse charge); electronic cash ledger covers tax, interest, penalties and other liabilities.

Inverted duty refund permitted where concessional notifications make output tax lower than input tax, subject to exclusions.
Refund of accumulated input tax credit is allowed where output tax on the same goods is lower than input tax at the same time because the supplier makes sales under a Government concessional notification, subject to other statutory conditions; refunds are not available where output is nil rated or fully exempted or where supplies are specifically excluded by notification.

Re-credit in electronic credit ledger: procedure using FORM GST PMT-03A after deposit via FORM GST DRC-03.
Where a registered person deposits an erroneous refund with applicable interest and penalty through FORM GST DRC-03 by debiting the electronic cash ledger, the proper officer shall re-credit an equivalent amount to the electronic credit ledger by issuing an order in FORM GST PMT-03A, after receipt of a written request in the prescribed format and on satisfaction that full payment has been made, preferably within thirty days from request receipt or payment, whichever is later.

Refund of unutilised ITC for export of electricity requires REA-backed documentation, tariff-based valuation, and prescribed GST filing steps.
Procedure requires filing FORM GST RFD-01 under "Any Other" with remark "Export of electricity-without payment of tax (accumulated ITC)", uploading Statement 3B (export invoices, energy exported, tariff per unit), REA statement of scheduled energy from RPC Secretariat, power sale agreements, and calculation in Statement 3A. The relevant date for refund is the last date of the month as per the monthly REA. Refund amount is calculated using the standard formula for unutilised ITC on zero-rated supplies by valuing exports as REA quantity times contracted tariff (using the lower of REA and invoice quantity), excluding domestic electricity from adjusted turnover, and requiring electronic credit ledger debit before refund order and payment.

Withdrawal of GST refund rule leads to ab initio withdrawal of prior circular, removing refund eligibility for specified airport supplies.
Rule 95A of the Goa GST Rules providing refunds for taxes on indigenous goods supplied by airport retail outlets to outgoing international tourists has been omitted retrospectively; accordingly, the Commissioner withdraws ab initio the circular that explained Rule 95A, removing the administrative guidance that enabled the refund mechanism and aligning state practice with the omission.

Mandatory e-filing of Non-Preferential Certificate of Origin extended; manual issuance remains permitted until the revised deadline.
The transition period for mandatory electronic filing of Non-Preferential Certificate of Origin (NP CoO) through the Common Digital Platform has been extended, making online submission optional until the revised deadline while allowing continued processing of NP CoO applications in manual/paper mode; authorised agencies must sensitize exporters on registration and report IT implementation issues to the DGFT.

Section 148 notice guidelines require prior section 148A procedure, specified approval, and recorded reasons for income escapement.
Guidelines prescribe the procedure for issuance of notice under section 148 after the Finance Act, 2021 and Finance Act, 2022 amendments. They require the Assessing Officer, subject to specified exceptions, to proceed under section 148A on the basis of information suggesting escapement of income, issue a show-cause notice, consider the assessee's reply, and pass a speaking order with prior approval of the specified authority before notice is issued. The instructions also set out limitation rules under section 149, the categories where section 148A does not apply, and the model notices and approval proformas.

TDS compliance under state GST requires nodal officer mapping, DDO data entry, and timely GSTR-7 filing awareness.
Compliance with TDS under Section 51 of the State Act is to be monitored through designated nodal arrangements at headquarters, zonal headquarters, and district level, with responsibility for collecting and updating details of nodal officers and liable Drawing and Disbursing Officers on the prescribed Google Sheet within specified timelines. The circular further requires entry of all persons liable to deduct tax at source, including Drawing and Disbursing Officers, in the Google Sheet by the stated deadline, with care to avoid errors in email and mobile number particulars.

Document Identification Number requirement mandates computer generated DIN on departmental communications; non DIN communications are invalid unless regularized.
A mandatory Document Identification Number (DIN) must be computer generated and quoted on all departmental communications under the GST and subsumed acts; communications lacking an electronically generated DIN are invalid. Limited exceptions for technical failure or urgent off site issuance are allowed but require written reasons, an express notice on the communication, and post facto regularization within 24 hours by superior approval, DIN generation and filing. GST Act correspondence is to use the GSTN Back Office portal where available; otherwise the departmental DIN system on the online portal must be used.

Certificate of Origin (Non-Preferential) authorization: Gem & Jewellery Export Promotion Council authorized to issue certificates under FTP.
Authorization is granted for issuance of Certificate of Origin (Non-Preferential) to the Gem & Jewellery Export Promotion Council, Mumbai, which has been added to the Appendix listing of agencies authorized to issue such certificates for Maharashtra, effecting the council's formal enlistment as an issuing agency under the Foreign Trade Policy.

External Commercial Borrowings limit increase expands automatic route and raises funding cost ceiling for investment grade borrowers.
The circular increases the automatic route annual limit for eligible External Commercial Borrowings and raises the all in cost ceiling by one percentage point; the enhanced all in cost ceiling is available only to borrowers with investment grade ratings from Indian credit rating agencies while others remain subject to the existing ceiling. The relaxations are time limited, require AD Category I banks to notify constituents, amend Master Direction No.5, and are implemented via amendments to FEMA borrowing regulations under the powers conferred by the Foreign Exchange Management Act.

Nomination for mutual fund unit holders: timeline extended, with physical signatures and online validation rules for nomination forms.
Extends the timeline for mutual fund investors to submit nomination details or a declaration opting out of nomination. Investors subscribing to mutual fund units on or after October 1, 2022 may choose either the nomination form or the opt-out declaration, in physical or online form. Physical forms require wet signatures of all unit holder(s), while online forms may be validated through e-Sign or two-factor authentication using an OTP sent to the registered email or phone number.

Automated account deactivation for inadequate KYC triggers freeze on trading and demat accounts until KYC and acknowledgement are furnished.
Where all designated MIIs fail to effect physical delivery of a SEBI SCN/order and obtain a signed acknowledgement at KYC-linked addresses, MIIs shall, after prior email/SMS notice and within a specified operational window from the last unsuccessful delivery report, freeze debit and credit of all trading and demat accounts of the entity identified by PAN. Pending pay-in/pay-out and open positions may be settled. If any MII effects service and obtains acknowledgement, accounts remain active but KYC records across accounts must be updated and confirmed to the KRA. Reactivation requires proof of address, the signed acknowledgement, KYC update by the registered intermediary, and MII confirmation, with mandated short timelines for inter-party communication.

Continuous disclosure obligations consolidated into a Master Circular prescribing formats, timelines and enforcement for listed debt issuers.
Master Circular consolidates SEBI continuous disclosure obligations for issuers of listed Non Convertible Securities, Securitized Debt Instruments and Commercial Paper, prescribing standardised formats and timelines for financial results, limited review/audit reports, statements on utilisation and deviations of issue proceeds, default disclosures, securitization pool/tranche/loan level reports, rating review submissions, corporate governance and related party transaction reporting, scheme of arrangement pre filing and post sanction requirements, and a uniform enforcement and fine structure, effective from August 1, 2022.

Listing obligations for non-convertible securities updated: consolidated disclosure formats, filing procedures, schemes and defaults reporting.
SEBI consolidates and updates operational listing obligations for issuers of listed Non convertible Securities, Securitised Debt Instruments and Commercial Paper by prescribing standardised chapter wise formats, filing timelines and procedural processes for financial results, audit reports, utilization of issue proceeds, securitisation pool/tranche/loan level disclosures, default reporting, rating reviews, schemes of arrangement involving listed debt, related party transaction disclosure and corporate governance compliance, and establishes enforcement steps and fines with coordinated stock exchange and SEBI oversight.