92/11/2019-GST of F. No. 20/16/04/2018-GST dated 07.03.2019

This circular clarifies issues revolving around sales promotion scheme as under:

• Samples supplied free of cost shall not constitute supply, unless they are covered by entry 1 of Schedule I of CGST. Correspondingly, if samples supplied do not constitute supply, section 17 (5) (h) will get triggered and ITC on purchase of such sample will be treated as blocked credits. If samples supplied constitute supply, ITC would be eligible.
• Sale of goods under the scheme “buy one get one free” cannot be treated as supply without consideration and taxability of such supplies will be determined as per section 8 based on the classification as composite / mixed supply.
• Discounts on the face of invoice or turnover based discount terms of which are established either before or at the time of supply of goods shall be excluded from the value of supply u/s 15 (3), provided the buyer reverses corresponding ITC.
• iscounts, not known at the time of supply of goods but provided afterwards shall not be excluded from the value of supply u/s 15 (3)(b)

8/8/2017 – GST of F. No. 349/74/2017-GST dated 04.10.2017 – rescinding circulars

• 2/2/2017 – GST of F.No. 349/82/2017-GST dated 04.07.2017,
• 4/4/2017 – GST of F.No. 349/82/2017-GST dated 07.07.2017 and
• 5/5/2017 – GST of F.No. 349/82/2017-GST dated 11.08.2017

• Facility to export under LUT extended to all taxable persons, except those who have been prosecuted for any offence under the CGST Act and the amount evade is more than 250 lacs
• LUT shall be valid till the end of financial year in which tendered
• Manual application to tender LUT / Bond till the time online portal is not functional
• Self-declaration in LUT shall suffice
• LUT to be accepted within 3 working days
• In case of bond, exporters to furnish running bond
• LUT / Bond to be accepted by the Jurisdictional Assistant / Deputy Commissioner.
• Supply of goods to Nepal / Bhutan / SEZ will be treated as zero rated even if payment not received in convertible foreign exchange. Supply of service to Nepal / Bhutan will not be treated as zero rated if payment not received in convertible foreign exchange.

48/22/2018-GST of F. No. CBEC/20/16/03/2017-GST dated 14.06.2018

This circular clarifies that:

• Services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) Developer / Unit shall be classified as inter-state supply u/s 7 (5)(b)
• Zero rating benefit can be extended for services such as event management, hotel accommodation services, consumables, etc., provided the same are received for authorized operations as endorsed by specified officer of the Zone
• Fabric processors shall be eligible for refund of unutilized ITC on account of inverted duty structure u/s 54(3) even if the goods (fabrics) supplied to them are covered under notification No. 5/2017-Central Tax (Rate) dated 28.06.2017.

78/52/2018-GST of F. No. CBEC-20/16/04/2018-GST dated 31.12.2018

This circular deals with issues revolving around outsourcing in service contracts received from foreign clients to foreign vendors. The circular clarifies that in such cases, the taxable person shall be required to pay tax under reverse charge mechanism on payment to be made directly by the foreign clients to the foreign vendors. The proceeds received from foreign client shall continue to be classifiable as export of service.

It has been further clarified that in case the service recipient directly pays the part consideration to the service provider, the same shall be deemed to be compliance of condition relating to receipt of proceeds in convertible foreign exchange, subject to satisfaction of following conditions:

1. The taxable person pays tax on gross amount
2. RBI approval (specific / general) that the proceeds can be retained outside India has been obtained

33/07/2018-GST of F. No. 267/67/2017-CX.8 dated 23.02.2018

• If any disputed credit is transitioned u/s 140, the same shall not be utilized unless the matter has reached finality. In case the same has been utilized before the matter reaches finality, the same shall be recovered along with tax, interest and penalty
• If any credit has been transitioned u/s 140 (1) which gets covered u/s 17 (5) as blocked credits, the same shall not be utilized but recovered from the taxable person along with interest and penalty

87/06/2019-GST of F. No. 267/80/2018-CX dated 2-1-2019

• CENVAT credit of service tax continues to be available for carry forward in TRAN-1 as eligible duties under Section 140 (1) even after the CGST Amendment Act, 2018 is notified
• Transition of credit of cesses including additional customs duty u/s 3(1) of Customs Tariff Act, 1975 shall not be allowed.

90/09/2019-GST of F. No. CBEC-20/16/04/2018 – GST

• Disclosure of Place of Supply shall be mandatory on all invoice. Contravention of any of the provisions of the Act to attract penalty u/s 122 to 127 of the Act.

21/21/2017-GST of F. No. 354/320/2017 –TRU (Pt ) dated 22.11.2017

• This circular deals with issue relating inter-state movement of rigs, tools and spares, and all goods on wheels (like cranes) and follows Circular 1/1/2017-IGST dated 07.07.2017. The said Circular had clarified that movement of various modes of conveyances, not involving further supply of such conveyance per se shall be treated neither as supply of goods nor supply of services and therefore not liable for GST.

76/50/2018 -GST of F. No. CBEC-20/16/04/2018-GST dated 31.12.2018 and Corrigendum dated 7.3.2019

• Central Government, State Government, UT or local authority shall be liable to obtain registration and pay tax in case of supply of goods, being used vehicles, seized and confiscated goods, old and used goods, waste and scrap to unregistered persons
• Penalty u/s 73 (1) to be not levied in case of delayed filing of GSTR 3B. Penalty may be levied u/s 125 of the Act after following due process of law
• In case of revision of prices, after the appointed date, of any goods or services supplied before the appointed day thereby requiring issuance of any supplementary invoice, debit note or credit note, the rate as per the provisions of the GST Acts shall be applicable
• Provisions of section 51 relating to TDS are applicable only to such authority or a board or any other body set up by an Act of Parliament or a State legislature or established by any Government in which fifty one per cent or more participation by way of equity or control is with the Government.
• Taxable value for the purposes of GST shall not include the TCS amount collected under the provisions of the Income Tax Act.

96/15/2019-GST of F. No. CBEC-20/16/04/2018 – GST dated 28.03.2019

This circular provides following clarification in respect of transfer of input tax credit where business is continued by the transferee / successor in case of death of sole proprietor:

• The successor is required to obtain registration in case of transfer of business by way of death of proprietor. Reason to obtain registration to be stated “death of proprietor”
• To transfer the accumulated ITC, GST ITC 02 shall be filed before filing the application for cancellation of registration. Application for cancellation of registration on the death of proprietor to be filed stating the GSTIN of successor to link both the registration

91/10/2019-GST of F. No. CBEC-20/16/04/2018 – GST dated 01.02.2019

Supply of warehoused goods during the period from July 2017 to March 2018 on payment of IGST, but reported as CGST / SGST in case of local customers in GSTR 1 due to portal issues, shall be deemed to be in compliance with the provisions of the law, if the amount of tax paid as CGST / SGST is equal to the amount of IGST due on such supplies.