Inter State supply reporting: ensure place of supply disclosure in GSTR 3B and GSTR 1 to secure correct tax allocation.
Registered persons must report place of supply wise inter State supplies to unregistered persons, composition taxpayers and UIN holders in table 3.2 of Form GSTR 3B and corresponding tables of GSTR 1; ensure customer state data and invoice PoS are correct. Table 4 of GSTR 3B is auto populated from GSTR 2B but registrants must report reversals and ineligible ITC: absolute/non reclaimable reversals under 4(B)(1), temporary/reclaimable reversals under 4(B)(2); net ITC credited to the electronic credit ledger equals 4A-[4B(1)+4B(2)].

Export of wheat flour subject to Inter-Ministerial Committee recommendation, changing clearance rules and transitional arrangements.
Wheat flour export remains Free but is now subject to recommendation of an Inter Ministerial Committee (IMC) effective 12 July 2022; Para 1.05 transitional arrangements of the Foreign Trade Policy are not applicable. Consignments between 6 July and 12 July 2022 are allowed only if loading had commenced before the Notification or the consignment was handed to and registered with Customs. Quality-related modalities will be issued separately, and Commissioners are instructed to implement the Notification immediately.

Electoral Trust approval process standardized; checklist and compliance requirements mandated for applications under Section 2(22AAA).
Standardizes filing for approval/renewal of an Electoral Trust under Section 2(22AAA) by requiring Form A in duplicate with a prescribed checklist and supporting documents to the jurisdictional CIT/DIT and Member(IT&R), CBDT; the checklist mandates proof of company registration, inclusion of "electoral trust" in the name, sole object to distribute to eligible political parties, disclosure of shareholders, submission of past returns for renewals, certified constitutional documents, accounts, beneficiary details, and a sworn undertaking to comply with Rule 17CA(2)-(15) including receipt issuance, donor identification, distribution rules, recordkeeping, audit, return filing with Form No.10BC and intimation of shareholder changes.

Rule 86A ITC blocking procedure is standardized for bogus invoices, ledger unblocking, and recovery handling.
Uniform procedure is prescribed for action under Rule 86A in cases involving fake firms and ITC claims based on invoices without actual supply of goods or services. Where verification shows that a person claiming ITC is non-existent, the information regarding persons to whom bogus ITC has been passed on is to be communicated through an Enforcement Alert. After issuance of FORM GST DRC-07 for demand under Sections 73 or 74, the blocked ITC ledger is to be unblocked and the demand adjusted against the available ITC balance through the RITC process, with recovery to follow for any remaining amount.

Refund order scrutiny under UPGST focuses on bogus input tax credit, risk-based review, and monitoring of erroneous refunds.
Scrutiny of refund orders under Section 54 of the UPGST Act, 2017 is prescribed as a revenue-protection measure because bogus Input Tax Credit may be included in refund claims, especially in zero-rated supply and inverted tax structure cases. Refund applications received from 2017-18 onward are to be handled through a module that places cases on officers' logins according to the amount involved. Scrutiny must consider the admissibility of Input Tax Credit under law, adverse information on departmental systems and the BO portal, and may be re-examined randomly by another zone or Headquarters. Erroneous refunds may be followed by proceedings under Section 73 or Section 74 within the applicable limitation period.

Extension of audit completion period under section 65 proviso grants additional time for audits affected by GSTN portal disruptions.
The Commissioner invokes the proviso to sub-section (4) of section 65 to extend the period for completion of audit for all audit cases relating to the specified return period that commenced up to 31 May 2022, until 31 August 2022 or nine months from the date of commencement, whichever is earlier, citing technical glitches in the GSTN Back Office portal that delayed issuance of notices and uploading of documents.

International trade settlement in Indian rupees enabled via Special Rupee Vostro Accounts, subject to approvals and compliance.
AD banks may open Special Rupee Vostro Accounts for correspondent banks to enable invoicing, payment and settlement of exports and imports in INR; exchange rates are market determined. Indian importers shall pay into these accounts and exporters shall be paid from their balances. Usual trade documentation, reporting and Master Direction conditions apply for advances, set offs and bank guarantees. AD banks must obtain Reserve Bank approval, verify correspondent bank jurisdictions against FATF guidance, and comply with FEMA reporting; the instructions are effective immediately.

Warehousing of electricity impermissible under MOOWR; permissions for solar-generated electricity must be reviewed and halted.
Permissions under section 65 permitting warehousing of imported solar panels and related capital goods to generate electricity are inconsistent with MOOWR 2019 because electricity cannot have a one-time-lock affixed nor be ordinarily deposited in a warehouse; the Board has not exempted electricity nor issued separate removal provisions, therefore such permissions must be reviewed and no further permissions granted under section 65.

Refund of accumulated ITC allowed when concessional notifications cause contemporaneous lower output tax rates, subject to exclusions.
The Circular clarifies that refund of accumulated ITC under clause (ii) of the first proviso to sub section (3) of section 54 is available where accumulation results from the rate on output supplies being lower than the rate on inputs at the same time due to supply under a concessional notification, except where output is nil rated or fully exempted or where supplies are excluded by Government notification; field formations must apply this uniformly and report implementation difficulties.

Input tax credit clarifications: ITC for deemed export refunds excluded from availability rules and net ITC computation.
Tax paid on deemed export supplies was made available as ITC solely to enable online refund claims; such ITC is not ITC under Chapter V, is not subject to blocked credit provisions, and is excluded from "Net ITC" for refund computations. The proviso allowing credit where an employer is legally obliged to provide goods or services applies to the entire blocked credit clause, and the leasing restriction is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger funds may be used only for output tax (excluding reverse charge), not for interest, penalties, fees or erroneous cash refunds.

Fraudulent input tax credit: recipients face recovery with interest and penal action while issuers face anti evasion penalties.
Issuing tax invoices without an underlying supply does not constitute supply, so no tax demand or recovery arises against the issuer under tax-demand provisions, though the issuer is liable to penal action under anti-evasion penal provisions for issuing invoices without supply. A recipient who fraudulently avails and utilizes ITC without receipt of goods or services is liable for recovery of the ITC with interest and penal action under the penal provisions addressing fraudulent availment or utilization. If that recipient passes on the ineligible ITC by issuing invoices without supply, no tax demand for the outward transaction arises, but penal action applies for issuing invoices and for wrongful utilization of ITC.

Inter-State supply reporting: ensure place-of-supply-wise disclosure in returns and correct reversal of ineligible input tax credit.
Registered persons must report place-of-supply-wise inter-State supplies to unregistered persons, composition taxpayers and UIN holders in Table 3.2 of FORM GSTR-3B and corresponding GSTR-1 tables; portal auto-populates Table 3.2 from GSTR-1 but suppliers remain responsible for accurate PoS. Table 4(A) of GSTR-3B is auto-populated from FORM GSTR-2B; permanent ineligible credits and mandatory reversals (including section 17(5) and rules 42/43) must be shown in Table 4(B)(1), temporary reversals in Table 4(B)(2) (reclaimable later in 4(A)(5) and shown in 4(D)(1)), and Net ITC in 4(C) equals 4A minus the sum of 4B(1) and 4B(2).

Litigation monitoring fortnight to review decade old indirect tax cases, secure counsel appointments and ensure filing of affidavits.
Directive instituting a two-week HC Litigation Monitoring Fortnight requiring Commissionerates to review decade old indirect tax High Court cases, re appoint counsel where panels have lapsed, ensure filing of necessary counter affidavits, have senior officers personally oversee defence, consider withdrawal of ripe matters, and submit a consolidated report in the prescribed proforma to the Board within the stated deadline; similar exercise is requested across other Zones and directorates with a separate reporting timeline.

Indian National Flag supplies conforming to the Flag Code are exempt from GST under the Har Ghar Tiranga programme.
The Office Memorandum confirms that the Indian National Flag is exempt from GST and that flags conforming to the Flag Code, 2002 (including the 30 December 2021 amendments) supplied under the Har Ghar Tiranga programme fall within that exemption, so procurement and distribution should treat the final cost of compliant flags as GST-exempt.

Settlement currency flexibility: Indo Sri Lanka trade and current account transactions may be settled outside the ACU in permitted currencies.
Indo Sri Lanka current account and trade transactions may be settled outside the Asian Clearing Union (ACU) mechanism in any permitted currency until further notice. Category I Authorised Dealer banks must implement this change immediately, inform their constituents, and note that the circular operates under the Foreign Exchange Management Act while remaining subject to any other statutory permissions.

Re-credit of electronic credit ledger: process allows re-credit after deposit of erroneous refund via Form GST PMT-03A.
Re credit to the electronic credit ledger is permitted where a taxpayer deposits an erroneous refund with applicable interest and penalty via Form GST DRC-03; the jurisdictional proper officer shall, upon satisfaction of full payment and receipt of a written request, re credit an amount equivalent to the erroneous refund by order in Form GST PMT-03A, with priority processing recommended within thirty days. Eligible refund categories and required annexure particulars are specified.

Refund of accumulated ITC available where concessional notifications make output tax lower than input tax, subject to exclusions.
Refund of accumulated input tax credit on account of an inverted duty structure is admissible where the rate of tax on outward supplies is lower than on inputs at the same point in time due to supply under a concessional notification, subject to other statutory conditions; refunds remain unavailable where output is nil rated or fully exempt or where the Government has notified exclusions.

Input Tax Credit for deemed exports is procedural only; electronic credit ledger limited to output tax payments.
Tax paid on supplies treated as deemed exports is refundable; the temporary availability of that amount as Input Tax Credit was solely to enable portal refund claims and is not ITC under Chapter V, therefore not subject to section 17 restrictions. The proviso to clause (b) of subsection (5) of section 17 applies to the whole clause, and "leasing" in the exclusion refers only to motor vehicles, vessels and aircraft. Employer perquisites under employment contracts are not subject to GST. Electronic credit ledger may be used only for output tax and not for reverse charge, interest, penalties or other liabilities; electronic cash ledger may be used for all GST liabilities.

Fraudulent input tax credit: recipients liable for recovery and penal action; issuers liable under invoice-issuance penalties.
Issuing a tax invoice without underlying supply does not amount to supply under section 7 and therefore attracts no tax demand under sections 73 or 74 against the issuer, but the issuer is liable to penal action under section 122(1)(ii). A recipient who fraudulently avails and utilizes ITC without receipt of goods or services is liable for demand and recovery of the ITC and penal action under section 74 with interest under section 50; subsequent passing-on of ITC without supply attracts penal consequences for the passer-on under section 122 provisions.

Input Tax Credit reporting: reversals and ineligible credit must be declared under specific GSTR 3B tables to ensure correct ECL credit.
Registered persons must report place of supply wise inter State supplies to unregistered persons, composition taxpayers and UIN holders in table 3.2 of Form GSTR 3B and corresponding Form GSTR 1 tables; portal auto population does not replace the obligation to ensure correct PoS. Total ITC is auto populated into table 4(A) from Form GSTR 2B; absolute reversals and ineligible credits (rules 38, 42, 43 and section 17(5)) go in 4(B)(1), temporary reversals in 4(B)(2), time barred or recipient mismatch items in 4(D)(2), and net ITC in 4(C) = 4(A) - [4(B)(1)+4(B)(2)].