Post 53rd GST Council meeting held on 22.06.2024, CBIC has issued 16 Circulars bearing Nos. 207 to 222, all dated 26.06.2024, clarifying taxability, place of supply, time of supply etc on various issues. These have been summarized inside in ‘GST Update’ column.
New CBIC Circulars
CBIC has issued 16 Circulars bearing Nos. 207 to 222-GST all dated 26.06.2024, based on recommendations of 53rd meeting of GST Council held on 22.06.2024. These are on following issues:
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Circular No.
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In relation to
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207
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Reduction of Government Litigation – fixing monetary limits for filing appeals or applications by the Department before GSTAT, High Courts and Supreme Court
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208
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Clarifications on various issues pertaining to special procedure for the manufacturers of the specified commodities.
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209
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Clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 relating to place of supply
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210
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Clarification on valuation of supply of import of services by a related person where recipient is eligible to full input tax credit.
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211
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Clarification on time limit under Section 16(4) of CGST Act, 2017 in respect of RCM supplies received from unregistered persons.
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212
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Clarification on mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers
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213
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Seeking clarity on taxability of re-imbursement of securities/shares as SOP/ESPP/RSU provided by a company to its employees.
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214
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Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value
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215
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Clarification on taxability of wreck and salvage values in motor insurance claims.
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216
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Clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023
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217
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Entitlement of ITC by the insurance companies on the expenses incurred for repair of motor vehicles in case of reimbursement mode of insurance claim settlement.
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218
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Clarification regarding taxability of the transaction of providing loan by an overseas affiliate to its Indian affiliate or by a person to a related person.
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219
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Clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the CGST Act, 2017
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220
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Clarification on place of supply applicable for custodial services provided by banks to Foreign Portfolio Investors
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221
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Time of supply on Annuity Payments under HAM Projects
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222
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Time of supply in respect of supply of allotment of Spectrum to Telecom companies in cases where an option is given to the Telecom Companies for payment of licence fee and Spectrum usage charges in instalments in addition to an option of upfront payment.
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This Article offers the gist of Circular No. 207, 208 and 209 which are on the following topics:
Reduction of Government Litigation in GST [Circular No. 207/1/2024-GST dated 26.06.2024]
- CBIC has in exercise of powers under section 120 of the CGST Act has fixed monetary limits below which appeal or application or Special Leave Petition, as the case may be, shall not be filed by the Central Tax officers.
- This threshold monetary limit shall apply to appeal or application or special leave petition (SLP)
- The appellate forums before which such monetary limits shall apply are GST Appellate Tribunal (GSTAT), High Court and Supreme Court.
- The appeals etc shall be under the provisions of CGST Act
- The monetary limits shall be as under:
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Appellate Forum
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Monetary Limit
(amount involved in Rs.)
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GSTAT
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20,00,000/-
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High Court
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1,00,00,000/-
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Supreme Court
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2,00,00,000/
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- Following principles shall observed to decide whether the case is covered under section 120 and fall within the monetary limit for non-filing of appeal:
- Only aggregate amount of tax in dispute shall be considered (no interest, penalty)
- Monetary limit will cover all –CGST, SGST, UGST, IGST and Compensation Cess.
- In case of dispute being only of interest, amount of interest shall be considered for monetary limit
- In case of dispute being only of penalty, amount of penalty shall be considered for monetary limit.
- In case of dispute being only of late fee, amount of late fee shall be considered for monetary limit.
- Where the dispute is of erroneous refund, refund amount in disputed shall be considered for monetary limit. Such refund could be of CGST / UTGST / SGST / IGST / Cess
- Monetary limit shall be applied on the disputed amount only, not including the admitted amount, if any.
- In case of composite order disposing more than one appeal / notice, monetary limit will apply to total amount involved and not to individual appeal / notice.
- This threshold limit shall not be applicable in certain circumstances wherein the decision to file an appeal or application or SLP shall be taken on merits rather than based on said monetary limits.
- Exceptions where monetary limit for appeals shall not apply would cover circumstances where:
- Any provision has been had as ultra vires to the Constitution of India
- Any rule or regulation has been held to be ultra vires to the parent Act
- Any order, notification, instruction or circular issued by the Government or board has been held to be ultra vires of the Act or Rules
- Matters related to :
- Valuation of goods or services
- Classification of goods or services
- Refunds
- Place of Supply
- Issues which are:
- Recurring in nature
- Involving interpretation
- Strictures or adverse comments have been passed against government / department including their officers
- Cost has been imposed upon government / department including their officers
- Other cases where CBIC is of the opinion that it is necessary in the interest of justice or revenue to contest the case.
Special procedure for the manufacturers of specified commodities [Circular No. 208/2/2024-GST dated 26.06.2024]
Based on the recommendation of 53rd GST Council meeting held on 22.06.2024, CBIC has issued clarification in relation to various issues pertaining to special procedure for the manufacturers of the specified commodities (pan-masala, tobacco, hookah etc) as per Notification No. 04/2024 -Central Tax dated 05.01.2024 -
- The CBIC has clarified that make and model number of machine are optional in Table 6 of FORM GST SRM-I.
- Special procedure as notified vide Notification No. 04/2024-CT dated 05.01.2024 is not applicable to the manufacturing units located in Special Economic Zone.
- Practicing Chartered Engineer having a certificate of practice from the Institute of Engineers India (IEI) is qualified to provide Chartered Engineer certificate
- Special procedure notified vide Notification No. 04/2024-CT dated 05.01.2024 shall be applicable to all persons involved in manufacturing process including a job worker / contract manufacturer.
- If the job worker/ contract manufacturer is unregistered, then the liability to comply with the said special procedure will be of the concerned principal manufacturer.
- It also provides clarification on several issues pertaining to special procedure for the manufacturers of the specified commodities.
Place of supply of goods to unregistered persons [Circular No. 209/3/2024-GST dated 26.06.2024]
Based on the recommendation of 53rd GST Council meeting held on 22.06.2024, CBIC has issued clarification in relation to provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 relating to place of supply of goods to unregistered persons, i.e., place of supply of goods (particularly being supplied through e-commerce platform) to unregistered persons where billing address is different from the address of delivery of goods -
- Clause (ca) was inserted as a non-obstante provision in Section 10(1) of the Integrated Goods and Services Tax Act, 2017 and made applicable with effect from 01.10.2023.
- In cases involving supply of goods to an unregistered person, where the address of delivery of goods recorded on the invoice is different from the billing address of the said unregistered person on the invoice, the place of supply of goods in accordance with the provisions of section 10 (1)(ca) of IGST Act, shall be the address of delivery of goods recorded on the invoice i.e. where the delivery address is located.
- In cases involving supply of goods to an unregistered person, where the billing address and delivery address are different, the supplier may record the delivery address as the address of the recipient on the invoice for the purpose of determination of place of supply of the said supply of goods.
(To be continued…)
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