Valuation of corporate guarantee services: GST based on higher of actual consideration or annual percentage of amount guaranteed, with charge mechanics clarified.
The provision of corporate guarantees between related persons to banks or financial institutions is taxable and, for guarantees issued or renewed on or after 26 October 2023, valuation is governed by Rule 28(2). The value equals the higher of actual consideration and one per cent per annum of the amount guaranteed (pro rata for periods under a year and multiplied by years for multi year guarantees). Tax is payable on issuance and on each renewal; domestic intra group guarantees are forward charged with invoicing, foreign issued guarantees to Indian recipients attract reverse charge, and recipients may claim input tax credit subject to conditions.

Pre-deposit payment stay on recovery: electronic ledger payment and undertaking pause recovery until tribunal is operational.
If the Appellate Tribunal is not operational, taxpayers can secure a stay of recovery by paying an amount equal to the pre-deposit via Services Ledgers Payment towards demand, which maps the payment in Electronic Liability Register Part II against the selected order, and by filing an undertaking to appeal before the Tribunal when it is constituted. Payments inadvertently made through FORM GST DRC-03 can be adjusted towards the pre-deposit upon filing FORM GST DRC-03A (subject to exclusions where FORM GST DRC-05 has been issued); absence of payment, undertaking, or timely DRC-03A filing permits recovery under the CGST Act.

Interest Equalisation Scheme extension clarified: cap per IEC specified, applies only to MSME manufacturer exporters, no new UIN.
Clarification to the extended Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit caps the benefit at Rs. 1.66 crore per IEC for 1 July 2024 to 31 August 2024, restricts applicability to MSME Manufacturer Exporters eligible for the 3% IES benefit (excluding MSME merchant exporters eligible for 2%), and confirms no revised UIN is required where a FY 2024-2025 UIN already exists.

Waiver of late fees for bills of entry due to licence non transmission at Chennai ports between 26 Jun-6 Jul.
Late fees are waived for bills of entry filed against 55 EPCG and DEEC (Advance Authorisation) licences that were not transmitted from DGFT to ICEGATE/ICES, causing filing difficulties from 26 June 2024 to 6 July 2024; the transmission issue was rectified on 07 July 2024. The waiver applies to bills of entry for vessels with entry inwards at Chennai Seaport, Kattupalli Port and Ennore Port for the stated period, the Public Notice is treated as a Standing Order, and remaining difficulties should be reported to the Assistant Commissioner of Customs (Appraising Main), Chennai-II (Import).

Exchange rate error caused excess export incentives; stakeholders must reverse amounts with interest and provide proof to customs.
An incorrect USD rate was fed into ICES on 07-09-2023, causing 464 shipping bills across INTUT1 and INTUT6 to receive excess Drawback, RoDTEP and RoSCTL. Stakeholders must reverse the excess amounts with interest and submit proof and detailed calculation worksheets to the Drawback & IGST Refund Section; non-compliance will invite fines and penalties under the Customs Act 1962. Detailed lists of affected shipping bills are enclosed and a contact is provided for difficulties.

SCOMET applicability clarified: spherical aluminium powder and reactive aluminium powders require SCOMET licensing, with lab or inspection verification allowed.
DGFT clarifies that spherical or spheroidal aluminium powder under categories 3A301.c and 6A008.c is subject to SCOMET, with government or NABL accredited laboratory reports acceptable for shape and size determination. Aluminium powder that is reactive in nature under 6A008.h is subject to SCOMET regardless of size or shape; powders made under vacuum or using noble gases may be considered reactive. Customs may verify by factory inspection or accept exporter documentary proof to its satisfaction.

Proper officer designation shifted to Superintendent of Central Tax, reallocating registration and composition levy functions and requiring trade notices.
Functions relating to registration and composition levy under specified provisions of the CGST Act and associated CGST Rules are reassigned to the Superintendent of Central Tax, replacing prior assignment to Assistant or Deputy Commissioners/Directors; recipients must issue trade notices and report implementation difficulties to the Board.

Liberalised Remittance Scheme expanded: resident individuals may use IFSC foreign currency accounts for broader financial and cross-border transactions.
Remittances under the Liberalised Remittance Scheme to IFSCs are expanded: resident individuals may open Foreign Currency Accounts in IFSCs to avail financial services or products within IFSCs and to conduct all permissible current and capital account transactions in other foreign jurisdictions through such FCAs; Authorised Persons must inform customers and the Master Direction on LRS will be updated, subject to other legal permissions.

Surveillance of securities market: exchanges and depositories implement PAN-based freezes and automated disclosures to curb insider trading.
Master Circular consolidates SEBI surveillance directives requiring initial listing trades in a Trade for Trade segment, mandating intermediaries to implement internal conduct controls against circulation of unauthenticated market news, standardising PIT disclosure formats and reporting of Code of Conduct violations, and implementing system-driven disclosures and automated dissemination. It establishes a portal-based framework where Designated Depositories auto-populate DP PAN/demat details, listed companies confirm trading-window dates at least T-2 days, and depositories/exchanges freeze PAN at ISIN level to restrict on- and off-market transactions during trading-window closures with time-bound procedures for additions and exemptions.

Dissolution period for AIF schemes requires filing an information memorandum and merchant banker due diligence, with investor approval.
SEBI permits AIF schemes to opt for a dissolution period for unliquidated investments, requiring submission of an information memorandum to SEBI via a merchant banker before the expiry of the liquidation or additional liquidation period; the merchant banker must furnish a Due Diligence Certificate confirming compliance with Regulation 29 and adequacy of disclosures. Schemes seeking an additional liquidation period must submit prescribed information for SEBI consideration. In specie distributions (other than mandatory distributions) require approval of at least seventy five percent of investors by value. Managers, trustees/sponsors and key personnel are responsible for compliance and inclusion of these matters in the Compliance Test Report.

Monetary limits for government appeals restrict filing to matters above prescribed thresholds, with defined exclusions and safeguards.
Chief Commissioner, on GST Council recommendation, fixes monetary thresholds below which State tax officers shall not file appeals or Special Leave Petitions under the RGST Act before GSTAT, High Courts and the Supreme Court. The thresholds apply to aggregated disputed amounts-tax (all components), interest, penalty, late fee and refunds-and to composite orders. Non filing under these limits does not create precedent or imply acquiescence; reviewing authorities must record the non filing reason and departmental representatives must notify the forum that non filing was due to the prescribed monetary limit. Specific exclusions to the limits are enumerated.

Reversal of Input Tax Credit: CA/CMA certificate or recipient undertaking required to evidence ITC reversal for post-supply discounts.
Discounts given by issuance of tax credit notes after supply may be excluded from taxable value only if the recipient has proportionately reversed the input-tax credit as required by section 15(3)(b)(ii). Until portal verification exists, suppliers must obtain a CA/CMA certificate from the recipient certifying the reversal, including credit note and invoice details, ITC reversal references and UDIN; for discounts below a monetary threshold in a financial year, a recipient undertaking with the same details is acceptable. Such certificates/undertakings are admissible evidence and must be produced to tax officers when required, including for past periods.

Input-tax credit availability on ducts and manholes for optical fiber networks affirmed, not barred by immovable-property exclusions.
ITC on ducts and manholes used in OFC networks for telecommunication services is not barred by the immovable-property exclusions in section 17(5) of the RGST Act because, under the Explanation to section 17, such ducts and manholes function as part of plant and machinery used to make outward supplies and are not excluded as land, buildings, telecommunication towers or external pipelines.

Supply between related persons: loans with only interest are exempt from GST, while separate processing fees remain taxable.
Supply between related persons is treated as a supply even without consideration; services of extending loans are exempt from GST when consideration is only interest or discount. Distinct charges such as processing or administrative fees constitute taxable consideration for loan processing/facilitation services and attract GST. Where related parties charge no such fees beyond interest/discount, there is no taxable service and open market valuation should not be applied.

Input tax credit entitlement for reimbursement claims: insurers may claim ITC for approved motor vehicle repair costs.
Insurers may claim ITC on motor vehicle repair services in reimbursement claims because the insurer is the recipient for the approved repair liability; ITC entitlement is limited where invoicing and reimbursement diverge - two separate invoices allow credit on the insurer issued invoice, whereas a single invoice to the insurer yields credit only to the extent of the approved reimbursement; absent an invoice in the insurer's name, credit is not available.

Extended warranty taxation treats separately supplied or later-sold coverage as services, while warranty stock replenishment remains GST-neutral.
Warranty replacement treatment applies to replacement of goods as well as parts. Where a distributor replaces goods or parts from its own stock on behalf of a manufacturer and receives replenishment without separate consideration, no GST is payable on replenishment and no input tax credit reversal is required by the manufacturer. Extended warranty is part of a composite supply of goods only when supplied by the goods supplier at original supply; otherwise, including when supplied later, it is a separate taxable supply of services.

Motor insurance salvage taxability depends on ownership: insurers pay GST only when full claim settlement transfers salvage to them.
GST on motor-vehicle salvage depends on ownership under the insurance contract. If salvage value is deducted from a total-loss claim, the salvage remains the insured's property and the deduction is not consideration for a supply by the insurer; no GST liability arises for the insurer. If the claim is settled for the full insured declared value without a salvage deduction, the salvage becomes the insurer's property, and GST is payable on its subsequent sale or supply.

Input tax credit reversal does not apply where life insurance premium is excluded from taxable value under prescribed valuation rules.
Input tax credit reversal is not required for the portion of premium excluded from taxable value under Rule 32(4) for taxable life insurance policies. Premium allocated to investment or savings is excluded under the valuation mechanism but does not become an exempt or non-taxable supply. The life insurance service remains taxable, and exclusion of consideration from taxable value does not change its tax character. Accordingly, the credit-reversal provisions applicable to exempt supplies do not apply to such excluded premium.

ESOP reimbursements remain outside GST when made at cost, while overseas facilitation charges attract reverse-charge tax.
Securities and shares issued under ESOP, ESPP or RSU arrangements are neither goods nor services under GST law. A cost-to-cost reimbursement by an Indian subsidiary to its overseas holding company for shares transferred directly to employees does not constitute an import of services and is not liable to GST. However, any additional fee, markup or commission charged by the overseas holding company is consideration for facilitating or arranging the securities transaction. GST applies to that additional amount as an import of services, payable by the Indian subsidiary under reverse charge.

Continuous supply of services governs tax timing for HAM highway contracts, with annuity interest included in taxable value.
HAM highway concession agreements for construction, operation and maintenance constitute a single continuous supply of services and cannot be split based on staggered payment terms. Where invoices are issued by the specified contractual date or event-completion date, tax liability arises on the earlier of invoice issuance or receipt of payment. If invoices are not timely issued, liability arises on the earlier of the contractual payment due date, treated as the service-provision date, or receipt of payment. Interest included in annuity instalments is includible in taxable value.