Valuation of zero-rated supplies limits ITC refunds by capping export turnover to domestic comparable value, affecting LUT exporters.
The amendment redefines valuation for zero-rated supplies by making the turnover for refund purposes the lesser of export invoice value or 1.5 times the value of like goods domestically supplied by the same or a similarly placed supplier, altering the numerator for proportionate ITC refund calculations while total invoice sales remain the denominator. The change affects exporters using a Letter of Undertaking, creates evidentiary and comparability issues for pure exporters, and does not impact exporters who pay tax and claim refund of tax paid. (AI Summary)

Input tax credit reversal for unpaid supplier invoices triggers proportionate reversal and interest until payment discharges the liability.
ITC must be reversed proportionately where payment to the supplier for a taxable invoice remains unpaid beyond the prescribed period, with interest payable from the invoice date until reversal; discounts reduce taxable value and ITC only if documented as required, otherwise the recipient remains liable for reversal, and reclaimed credit on later payment may be constrained by return-reconciliation and supplier-upload limits. (AI Summary)

GST compliance by resolution professionals: new registration and return obligations for corporate debtors during insolvency proceedings.
Resolution professionals must obtain new GST registrations for corporate debtors in CIRP, file returns and pay taxes for the period from their appointment, and may claim input tax credit in their first return on invoices received since appointment bearing the erstwhile GSTIN, subject to Chapter V rules except the subsection (4) time limit and sub rule (4) of rule 36. Recipients may similarly claim credit for a limited transitional period. Pre CIRP tax dues are treated as operational debt and pursued through insolvency claims rather than coercive action. (AI Summary)