Input tax credit misuse: interest should follow a holistic ITC shortfall test, not head wise ledger sequencing.
Whether interest is payable on wrongly availed ITC depends on deemed 'utilisation' and whether utilisation is measured against the combined ITC pool or ledger wise; Circular 192 treats IGST holistically so interest is not attracted if total ITC across IGST, CGST and SGST covers the wrong credit, whereas Compensation Cess remains ring fenced and requires ledger specific evaluation. (AI Summary)

Aircraft part classification: specific use fasteners qualify under the aircraft parts heading when specialised specifications and traceability exist.
Classification hinges on whether parts are for specific use in aircraft or generic use; fasteners are contended to be aircraft specific due to specialised materials (notably titanium), high performance requirements, unique manufacturing and traceability processes, manufacturer drawings and regulatory approvals, and thus support classification under the aircraft parts heading (8803/88033000), while revenue may challenge classification as generic base metal parts - making each determination a question of fact. (AI Summary)

Zero rated supply treatment for tooling: physical export requirement may preclude zero rating, urging contractual and structuring remedies.
Supplies of tools, dies and jigs made in India but retained domestically do not qualify as exports under the statutory definition of export as taking goods out of India; accordingly, such supplies are treated as intra state and not zero rated, producing non refundable GST costs. Mitigation pathways include characterising part of the consideration as exported services, structuring the tooling and exported components as a composite supply so export treatment prevailing for components can extend to tooling, or deploying an intermediary in the contractual chain to convert tax cost into recoverable input tax. Comparative foreign regimes offer tailored zero rating relief for tooling used in exports. (AI Summary)