Assignment of leasehold right treated as service, subject to GST and input tax credit allowed on transfer fees.
Assignment of a leasehold right is a taxable supply of services under Schedule II and does not amount to sub leasing; it is classifiable as Other Miscellaneous Services and attracts GST. Tax paid on transfer fees connected to permitting the assignment is admissible as input tax credit against the GST liability on the assignment. (AI Summary)

Rectification of GSTR-3B errors: report net revised figures in current or subsequent returns, claim refund if adjustment infeasible.
Circulars require that errors in FORM GSTR-3B be corrected by reporting revised figures on a net basis in the current month's FORM GSTR-3B without making negative entries; remaining adjustments must be carried into subsequent months or claimed as a refund, with corresponding amendments in FORM GSTR-1 where multiple months are affected, and an editing provision is available for information submitted prior to offsetting and final filing. (AI Summary)

Input Tax Credit admissibility: GST on vehicle insurance and repairs allowed where vehicles are used for business, per administrative guidance.
Section 17(5) bars ITC on motor vehicles except in specified cases, but administrative FAQs narrow the restriction to apply mainly to vehicle acquisitions and permit ITC on insurance and repairs for vehicles used in business; commentators treat the FAQ as persuasive though non-binding and urge awaiting formal circular or judicial guidance. (AI Summary)

Supply to SEZ units: IGST treatment requires payment or bond/LUT; import exemptions apply only to physical imports.
Supply to SEZ units or developers is treated as inter-state and exemptions for IGST apply to goods physically imported and to services imported for authorised operations; domestic procurements are not covered. Domestic suppliers must either charge IGST (so SEZ units can claim input tax credit and seek refunds) or supply under bond/LUT to obtain zero-rating. If the SEZ recipient does not claim credit, the supplier may claim a refund. The legal framework thus keeps import exemptions separate and preserves the bond/LUT mechanism for indigenous supplies. (AI Summary)

Proof of export under GST: removal of ARE1 and bond re credit procedures creates uncertainty for exporters seeking documentary evidence.
The transition to GST removed the A.R.E.1 procedure and altered export procedures, creating uncertainty about acceptable proof of export and the mechanics for bond re credit; previously accepted proofs included customs attested shipping bills, bills of lading, foreign exchange remittance certificates and VAT export forms for merchant exporters, which supported bond re credit and compliance reporting. (AI Summary)

GST applicability on society maintenance charges affirmed by FAQ, conflicting with agent/collector precedents and increasing litigation risk.
GST is being applied to maintenance charges collected by builders and later transferred to societies despite prior service tax rulings that treated builders as mere collectors not liable to tax; the government FAQ asserts taxability without legal reasoning, and although it lacks formal legal backing, it is likely to spur renewed litigation against the backdrop of earlier precedents. (AI Summary)

Input tax credit reversal: proportionate credit must be added to output tax when invoice amounts remain unpaid.
The proviso requires a recipient who "fails to pay" any amount of the value of supply together with tax within the prescribed period to add an amount equal to the input tax credit availed to its output tax liability with interest; the wording contemplates partial non-payment so that reversal should be proportionate to the unpaid portion, though alternative views argue full credit should remain where supplier has remitted tax or where contractual timing makes retention not yet payable. (AI Summary)

Input tax credit reversal on inputs contained in destroyed finished goods cannot be demanded absent a specific statutory provision.
Section 17(5)(h) denies input tax credit in respect of goods lost, stolen, destroyed or written off, which targets denial where the inputs or capital goods themselves are affected. The authors conclude that ITC legitimately availed on inputs consumed in manufacture cannot be reclaimed absent a specific statutory or regulatory provision; no such reversal provision exists in the GST Rules. Because GST liability is linked to supply (and theft or fire are not supply), reversal for input content of destroyed finished goods cannot be demanded without express legal authority. (AI Summary)

Input tax credit protection: reductions in tax rates do not automatically require reversal of previously availed ITC.
Reduction of GST on restaurant services was linked to a condition of non availment of ITC, prompting debate whether ITC legitimately availed before the change must be reversed. Precedent on Cenvat/Modvat and the principle of non retroactivity indicate that once input credit is lawfully taken it vests with the assessee and cannot be withdrawn without explicit statutory authority; reversal regimes are typically engaged where supplies become wholly exempt, not merely where rates are reduced. (AI Summary)

Transfer of land development rights as a supply of service may trigger GST liabilities on owners and subsequent transactions.
Treatment of land development rights under GST is disputed: one view treats their transfer as a supply of service (licence to occupy) creating GST liability on the land owner and subsequent tax events on construction and resale; the alternative view treats the arrangement as outside GST as an eventual transfer of land under Schedule III, noting historical non-taxation and raising valuation and consideration allocation issues if treated as a service. (AI Summary)

GST liability on resale of developer transferred flats: landowners must register and pay tax, claimable credits may apply.
Where a builder transfers under construction flats to a land owner under a joint development agreement, a subsequent sale by the land owner is an independent taxable supply; the land owner must register for GST and pay tax on his sale, although he may claim input tax credit on developer invoices. The provision treats construction for sale as supply irrespective of whether the transferor is the original service provider, subject to the exception where full consideration is received only after completion or first occupation. (AI Summary)

Time of supply: GST arises on transfer of development rights; valuation of flats uses open market value or like for like pricing.
The note explains that, in JDAs, GST time of supply is typically triggered on transfer of development rights because consideration is received in kind, and valuation under Section 15 and Rules 27-35 requires treating flats allotted to land owners at their open market value or, if unavailable, the monetary equivalent or value of like flats sold contemporaneously, with sectoral FAQs indicating taxability when conveyance or similar instruments transfer possession or rights. (AI Summary)

GST on construction services covers the owner's share of flats given in lieu of development rights, attracting tax liability.
Where a developer obtains development rights from a landowner and transfers a portion of constructed units to that landowner, the transfer is consideration in kind for construction services and the developer is liable to pay GST on the landowner's share of flats as well as on the developer's portion; valuation, point of taxation, revenue sharing arrangements, and security deposit treatment are distinct issues for further consideration. (AI Summary)

GST exemption on tax on advances for goods leaves composition scheme dealers and service providers liable.
Notification 66/2017 exempts payment of tax on advances for supply of goods by all registered persons except composition scheme registrants; service suppliers and composition dealers remain liable. Notification 65/2017 exempts small service suppliers using e commerce platforms from compulsory registration below the turnover threshold. Notification 64/2017 reduces the GSTR 3B late fee where central tax liability is nil and increases the per day late fee where tax is payable. Notification 56/2017 maintains monthly filing and payment via GSTR 3B through March 2018; GSTR 1 filing frequency is set by turnover and deadlines, while GSTR 2 and GSTR 3 timing is undecided. (AI Summary)

Invoice mismatch between GST returns and customs shipping bills hampers export IGST refunds; exporters must align reported details.
Mismatch between invoice numbers and IGST amounts reported in GSTR 1 and customs shipping bills has impeded exporters' ability to obtain refunds of IGST and unutilized credit. A customs circular acknowledged the mismatch and advised exporters to ensure invoice and IGST details in GSTR 1 and shipping bills match, but it did not prescribe remedial procedures, leaving practical refund difficulties unresolved. (AI Summary)

Place of supply rules: renting immovable property in India may attract GST even if both supplier and recipient are non resident.
The note examines GST treatment of renting immovable property located in India when both supplier and recipient are outside India. It explains that the place of supply rule locates supply at the property and that, despite non resident parties, residual provisions can classify the transaction as inter State supply and attract IGST, potentially requiring non resident registration; registration may then localize the supplier and convert the supply to intra State, attracting CGST and SGST. It also records opposing views about fixed establishment and practical registration difficulties. (AI Summary)

Input Tax Credit distribution may face reconciliation gaps when ISD return utilities are unavailable and manual filings required.
The transitional unavailability of operational GSTR-6 and GSTR-6A utilities prevents auto-population of distributed-credit invoice details into recipients' GSTR-2A/GSTR-2, forcing manual entry by recipients and creating unresolved reconciliation, tracking and error-correction issues between Input Service Distributors' records and recipient returns. (AI Summary)

Employee reimbursements under GST: treatment as non-supply when in course of employment, affecting input tax credit and reverse charge.
Under GST, services by an employee to an employer in the course or in relation of employment are not supplies; reimbursements for business expenses incurred by employees are treated as supplies received by the employer with the employee acting as agent. If expenses are from registered suppliers, the employer may claim input tax credit where the supplier's invoice names the employer and quotes its GSTIN, subject to blocked-credit exceptions. For expenses from unregistered suppliers, tax may be payable under reverse charge yet credit is governed by the same blocked-credit rules. Fixed allowances are treated as salary and not as reimbursed supplies. (AI Summary)

GST return status: Saved, Submitted, Filed distinctions determine editability and permissible actions on invoices.
GSTR 1 distinguishes Saved (editable draft), Submitted (frozen for the month) and Filed (finalised after submission); submission freezes invoices for that period and filing requires EVC or DSC. In GSTR 2 auto populated invoices carry status Saved if the supplier has not submitted GSTR 1 and Submitted if the supplier has submitted; action (Accept/Reject/Modify/Pending) is mandatory on Submitted invoices and Saved invoices can only be added as missing by the buyer. Saved(GSTR 1)=Submitted(GSTR 2); Submitted(GSTR 1)=Saved(GSTR 2). (AI Summary)

Supply characterization under GST affects publishing: service treatment and blocked input tax credit increase book costs.
Characterisation under GST treats printing as a taxable service when content is supplied by the author and physical inputs belong to the printer, enabling the printer to claim ITC while the publisher's outward supply of books remains exempt and ineligible for ITC. Royalty payments to authors are taxed under reverse charge, producing tax incidence at multiple stages and blocking ITC, increasing effective book costs and prompting litigation and refund claims. (AI Summary)