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TMI BlogClarification regarding the scope of “as is / as is, where is basis” mentioned in the GST Circulars issued on the basis of recommendation of the GST Council in its meetingsX X X X Extracts X X X X X X X X Extracts X X X X ..... ued on the basis of recommendation of the GST Council in its meetings Instances were brought to the notice of the Board pertaining to the prevailing doubts among the field formations/trade as regards the scope of regularization on as is or as is, where is basis vide various GST Circulars issued for clarification regarding applicable GST rates and appropriate classification of specified goods or service or both on the basis of recommendation of the GST Council in its various meetings. 2. The GST Council in its 5 4th Meeting held on 9th September 2024 has recommended issuance of clarification to clarify the intent behind the regularization done in the past meetings. Therefore, this Circular is being issued in exercise of power under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to regularize payment at a lower rate including nil rate due to the tax position taken by taxable person, as full discharge of tax liability. The tax position of a taxable person is reflected in the returns filed by the person where the applicable rate of tax (or relevant exemption entry) on a transaction/supply is declared. 5. Thus, in cases where the matters have been regularized on as is or as is, where is basis , in case of two competing rates and the GST is paid at lower of the two rates, or at nil rate where one of the competing rates was nil under notification entry, by some suppliers while other suppliers have paid at higher rate, payment at lower rate shall be treated as tax fully paid for the period that is regularized. Illustrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rify that the applicable rate is 12% and regularize the past on as is where is basis which is notified on 1.12.2023, this means that for the period prior to 1.12.2023, the 5% GST paid by tax payer will be treated as tax fully paid and they would not be required to pay duty differential between 5% and 12% . For those tax payers who have paid 12%, no refund would be made. However, the regularization would not apply to situations where no tax has been paid. In such cases, the applicable tax i.e. 12% shall be recovered. 6. Accordingly, suitable instructions shall be passed on to the field formations under your charge. 7. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board. Yours faithfully, (Lima ..... X X X X Extracts X X X X X X X X Extracts X X X X
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