54th GST Council Meeting

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Confidential

Agenda for
54th GST Council Meeting
09th September, 2024
Volume - I





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GST Council Secretariat New Delhi

5th Floor, Tower-II, Jeevan Bharti Building, New Delhi
09th August, 2024
OFFICE MEMORANDUM
Subject: Notice for the 54th GST Council Meeting to be held on 09th September, 2024-reg

The undersigned is directed to refer to the above subject and to convey that the 54th Meeting
of the GST Council will be held on 09th September, 2024 at New Delhi. The schedule of the
meeting is as follows:-
• Monday, 9th September, 2024, from 11.00 A.M. onwards
2. In addition, an Officers’ Meeting will be held on 8th September, 2024 at New Delhi as per
the following schedule:
• Sunday, 8th September, 2024 from 2.30 P.M. onwards

3. The venue of the meeting, agenda items and other details for the 54th Meeting of the GST
Council and officers’ Meeting will be communicated in due course of time.

4. Kindly convey the invitation to the Hon’ble Member of the GST Council to attend the 54th
Meeting of the GST Council.

Sd/-
(Sanjay Malhotra)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with
the request to brief Hon’ble Minister about the above said meeting.
2. PS to the Hon’ble Minister of State (Finance), Government of India, North Block, New
Delhi with the request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Union Territories of Delhi, Puducherry
and Jammu and Kashmir with the request to intimate the Minister in charge of
Finance/Taxation or any other Minister nominated by the State Government as a Member
of the GST Council about the above said meeting.
4. Chairman, CBIC, North Block, New Delhi, as a permanent invitee to the proceedings of the
Council.
5. CEO, GST Network
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TABLE OF CONTENTS
(VOLUME-I)

Sl. No. Agenda Item Page No.
1.
Confirmation of Minutes of the 53rd GST Council Meeting held on 22nd June,
2024
7-150
2.
Deemed ratification by the GST Council of the Notifications and Circulars
issued by the Central Government and decisions of GST Implementation
Committee for the information of the Council.
151-157
3.
Issues recommended by the Law Committee for the consideration of the GST
Council
i) Clarification on refund of IGST paid on exports under rule 96(10) of the
CGST Rules, 2017 and amendments in Rule 89 and Rule 96 of CGST
Rules, 2017
158-167
ii) Clarification on the place of supply of advertising services provided to
foreign entities 168-180
iii) Amendment in CGST Rules, 2017
I Consequential Amendment in Form REG-20 & REG-31 due to
amendment in Rule 10A, 21 (h) and 21(i) 181-185
II Agenda to modify FORM INS-01 on account of replacement of IPC,
1860, with BNS, 2023 186-187
III Consequential rule and form amendments subsequent to insertion of
Section 74A of CGST Act, 2017 188-195
iv) Clarification regarding the availability of Input Tax Credit on demo
vehicles by the dealers of the vehicle manufacturers 196-203
v) Providing a mechanism for implementing sub-sections (5) and (6) of
Section 16 of the CGST Act, 2017. 204-219
vi) Clarification on the place of supply in case of data hosting services
provided by service providers located in India to cloud computing service
providers located outside India.
220-231
4.
Recommendations of the Fitment Committee for the consideration of the GST
Council
232
a) Recommendations made by the Fitment Committee for making changes
in GST rates or for issuing clarifications in relation to goods (5 issues) –
Annexure-I
233-238
b) Issues where no change has been proposed by the Fitment Committee in
relation to goods (7 issues) – Annexure-II 239-244
c) Recommendations made by the Fitment Committee for making changes
in GST rates or for issuing clarifications in relation to services (18 issues)
– Annexure-IV
245-303
d) Issues where no change has been proposed by the Fitment Committee in
relation to services (15 issues)– Annexure-V 304-333
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e) Issues which have been proposed by the Fitment Committee for deferring
in relation to services (8 issues)- Annexure-VI 334-345
f) Agenda note on review of 51st GST Council meeting’s recommendation to
amend GST laws to provide clarity on the taxation of supplies in casinos,
horse racing and online gaming.
346
5. Recommendations of the 21st meeting of the IT Grievance Redressal Committee
for approval/decision of the GST Council 347-463
















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Discussion on Agenda Items

Agenda Item 1: Confirmation of Minutes of 53rd GST Council Meeting held on 22nd June,
2024

The 53rd meeting of the GST Council was held on 22nd June, 2024 under the Chairpersonship of the
Hon’ble Union Finance Minister, Smt. Nirmala Sitharaman at Bharat Mandapam, New Delhi. The
list of Hon’ble Members of the Council who attended the meeting is at Annexure-1. The list of the
officers of the Centre, States, Union Territories, GST Council Secretariat and GSTN who attended the
meeting is at Annexure-2.
1 .2 The following agenda items were listed for discussion in the 53rd meeting of the GST
Council:
Sl. No. Agenda Item
1. Confirmation of Minutes of 52nd GST Council Meeting held on 07th October, 2023
2. Deemed ratification by the GST Council of the Notifications, Circulars and Orders
issued by the Central Government and decisions of GST Implementation Committee for
the information of the Council.
3. Issues recommended by the Law Committee for the consideration of the GST Council
i) Law amendment proposals to amend the CGST Act, 2017 and IGST Act, 2017:
I Amendment of Section 9 of CGST Act, 2017 regarding non-applicability
of Goods and Services Tax on Extra Neutral Alcohol (ENA) used for
manufacture of alcoholic liquor for human consumption.
II Insertion of Section 11A in CGST Act, for granting power not to recover
duties not levied or short-levied as a result of general practice under GST
Acts.
III Law Amendments in Section 13 and Section 31 of the CGST Act, 2017
regarding time of supply and issuance of invoices in respect of RCM
supplies.
IV Amendment in Section 16 of IGST Act, 2017 along with corresponding
provisions in Section 54 of CGST Act, 2017, to curtail refund of IGST in
cases where export duty is payable, and also to rationalize the said
provisions.
V Amendment in section 70 of the CGST Act, to provide clarity regarding
appearance by authorised representative in response to summons.
VI Amendment of sub-section (1B) of section 122 of the CGST Act, 2017
with respect to penalty provisions for non- compliant electronic
commerce operators.
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VII Amendment of section 140(7) of CGST Act to provide for transitional
credit in respect of invoices pertaining to services provided before appointed
date and where invoices were received by ISD before the appointed date.
ii) Law Amendment regarding time of filing appeal in GST Appellate Tribunal
iii) Law Amendment regarding GST Appellate Tribunal
(a) Providing for sunset clause for Anti-Profiteering provisions under the GST
laws and the handling of Anti-Profiteering cases under Section 171 of the
Central Goods and Services Act, 2017 by Appellate Tribunal.
(b) Providing for enabling provision for notifying the scope of cases that can
be heard by the Principal Bench of GSTAT only.
iv) Amendments in Section 73 and Section 74 of CGST Act, 2017 and insertion of
a new Section 74A in CGST Act, to provide for common time limit for issuance
of demand notices and orders irrespective of whether case involves fraud,
suppression, wilful misstatement etc., or not.
v) Amendment in section 39 of CGST Act and rule 66 of CGST Rules, 2017 for
mandating filing of NIL returns by TDS deductors and waiver of late fee for late
filing of NIL FORMGSTR-7 along with changes in FORM GSTR 07 for
inserting invoice/document wise details of tax deducted at source
vi) Relaxation in condition of section 16(4) of the CGST Act with respect to cases
where returns have been filed after revocation of cancellation of registration for
initial years of implementation of GST.
vii) Insertion of Section 128A in CGST Act, to provide for conditional waiver of
interest or penalty or both relating to demands raised under Section 73, for FY
2017-18 to FY2019-20.
viii) Reduction of Government Litigation – fixing monetary limits for filing appeals
or applications by the Department before GSTAT, High Courts and Supreme
Court
ix) Insertion of new forms FORM GSTR-1A for the amendment and declaring
additional details to FORM GSTR-1, for enabling locking of FORM GSTR-3B
based on FORM GSTR- 1.
x) Issue of liability of payment of interest under Section 50 of CGST Act in case of
delayed payment of tax, even though credit is available in Electronic Cash
Ledger (ECL).
xi) Reduction in rate of TCS to be collected by the ECOs for supplies being made
through them.
xii) Clarifications on various issues pertaining to special procedure for the
manufacturers of the specified commodities, like pan masala, tobacco etc.
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xiii) 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 of
goods to unregistered persons.
xiv) Providing a mechanism for adjustment of payments made through FORM
DRC-03, in respect of a demand against pre- deposit as well as for
adjustment of liability in Electronic Liability Register (Amendment in Rule
142 of CGST Rules, 2017 along with clarification circular).
xv) Clarification on valuation of supply of import of services by a related
person where recipient is eligible to full input tax credit.
xvi) Clarification regarding applicability of provisions of Section 16 (4) of
CGST Act, 2017, in respect of invoices issued by the recipient under RCM.
xvii) Clarification in case of taxability of corporate guarantee provided between
related persons after insertion of Rule 28(2) of CGST Rules, 2017.
xviii) Clarification on mechanism for providing evidence of compliance of
conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 in respect of post-
sale discounts by the suppliers.
xix) Court matter regarding extending amnesty scheme for filing of appeals in
respect of cases under Sections 129 and 130 of CGST Act.
xx) Amendment in Rules 110 and 111 of the CGST Rules, 2017 pertaining to
filing and processing of appeals in GST Appellate Tribunal.
xxi) Clarification on taxability of re- imbursement of securities/shares as
ESOP/ESPP/RSU provided by a company to its employees.
xxii) Clarification on requirement of reversal of ITC in respect of balance of
taxable premium in cases of Life Insurance services after applying valuation
rule.
xxiii) Clarification on taxability of wreck and salvage values in motor insurance
claims.
xxiv) Clarification in respect of Extended Warranty provided by Manufacturers to
the end customers in view of Circular No. 195/07/2023-GST dated
17.07.2023
xxv) Clarification regarding ITC entitlement on repair expenses incurred in case
of reimbursement mode of claim settlement.
xxvi) Clarification on taxability of loans granted between group companies.
xxvii) Clarification regarding availability of Input Tax Credit (ITC) on ducts and
manholes used in the network of Optical Fibre Cables (OFCs).
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xxviii) Clarification on the place of supply applicable for custodial services
provided by banks to Foreign Portfolio Investors.
xxix) Clarification on time of supply on Annuity Payments under Hybrid Annuity
Mode Projects (HAM) of NHAI.
xxx) Refund of additional Integrated Tax (IGST) paid on account of upward
revision in price of the goods subsequent to export of such goods.
xxxi) Implementation of functionality for online filing of refund application by
Canteen Stores Department (CSD) in GST-RFD 10A.
xxxii) Procedure for payment of IGST by SEZ unit located in Noida SEZ on DTA
clearances.
xxxiii) 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.
xxxiv) Creation of unique identifiers for unregistered persons opting to generate e-
waybill
xxxv) Alignment of rule 96A of CGST Rules, 2017 with the provision of FEMA
Act, 1999
xxxvi) Change in due date for filing of return in FORM GSTR 4 for composition
taxpayers from 30th April to 30th June.
xxxvii) Amendment in FORM GSTR -8 to capture place of supply
xxxviii) Amendment in GST Rules and FORM GSTR-1 to reduce the current
threshold of invoice value of Rs. 2.5 lakhs for inter- state B2C supplies to
Rs. 1 lakh
xxxix) Agenda on rationalisation of the quantum of pre-deposit required to be paid
for filing of appeals under GST.
xl) Change in Payment table of Form GSTR-3B to provide for a separate
table for RCM supplies and Section 9(5) supplies.
xli) Notifying Annual Return in FORM GSTR-9 for Financial Year 2023-24
and extending exemption from filing FORM GSTR-9 for taxpayers with
turnover up to Rs. 2 crores.
xlii) Rolling out of Biometric based Aadhar Authentication of registration on
Pan-India basis.
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4. Recommendations of the Fitment Committee for the consideration of the GST
Council
a) Recommendations made by the Fitment Committee for making changes in
GST rates or for issuing clarifications in relation to goods (17 issues) –
Annexure-I
b) Issues where no change has been proposed by the Fitment Committee in
relation to goods (3 issues) – Annexure-II
c) Issue in relation to goods placed before the Council for information (1 issue)
– Annexure-III
d) Recommendations made by the Fitment Committee for making changes in
GST rates or for issuing clarifications in relation to services (9 issues) –
Annexure-IV
e) Issues where no change has been proposed by the Fitment Committee in
relation to services (1 issue)– Annexure-V
5. Issues recommended by GSTN
a) All India roll-out of the Biometric-based Aadhaar Authentication and
Document Verification System
b) Waiver of Interest on delayed receipt of Advance User Charges (AUC) from a
few states and CBIC.
6. Recommendations of the 20th meeting of the IT Grievance Redressal Committee for
approval/decision of the GST Council
7. a) Review of revenue position under Goods and Services Tax.
b) GST Appellate Tribunal - Status update and issues for approval

8.
Performance Report of the Anti-profiteering authorities for the 2nd quarter (July to
September 2023) 3rd quarter (October to December 2023) and 4th quarter (January to
March, 2024) for the information of the GST Council
9. Ad-hoc Exemptions Orders issued under Section 25(2) of the Customs Act, 1962 to
be placed before the GST Council for information.
10. Any other agenda item with the permission of the Chairperson

1.3 The Secretary to the GST Council (hereinafter called ‘The Secretary’), welcomed all the
Hon’ble Members of the Council and participating officers to the 53rd meeting of the GST
Council. He extended greetings to the Hon’ble Chief Minister of Goa, Dr. Pramod Sawant and
Hon’ble Chief Minister of Meghalaya, Sh. Conrad K. Sangma and all the incoming Hon’ble
Members of the GST Council to their first Council meeting namely-
a. Shri. Payyavula Keshav, Hon’ble Minister for Finance, Planning, Commercial
Taxes and Legislative affairs, Andhra Pradesh
b. Shri. Samrat Choudhary, Hon’ble Deputy Chief Minister/Minister of Commercial
Tax, Bihar
c. Shri. O. P. Choudhary, Hon’ble Minister of Finance & Commercial Tax,
Chhattisgarh
d. Shri. J.P. Dalal, Hon’ble Deputy Chief Minister/Finance Minister, Haryana
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e. Shri. Jagdish Devda, Hon’ble Deputy Chief Minister/Minister of Commercial
Tax & Finance, Madhya Pradesh
f. Dr. Vanlalthlana, Hon’ble Minister, Taxation Department, Mizoram
g. Shri. Kanak Vardhan Singh Deo, Hon'ble Deputy Chief Minister, Odisha
h. Shri. Gajendra Singh Khimar, Hon'ble Minister of Medical Health and Services,
Rajasthan
i. Shri. G.T. Dhungel, Hon'ble Minister for Health & Family Welfare Department
and Culture Department, Sikkim
j. Shri. Mallu Bhatti Vikramarka, Hon'ble Deputy Chief Minister/Finance Minister,
Telangana
k. Shri Pranjit Singh Roy, Hon’ble Finance Minister, Tripura.

1.4 The Secretary stated that in the Council meeting important agenda on law amendment
proposals recommended by Law Committee to amend the CGST Act and IGST Act would be
taken up along with various Fitment Committee recommendations on tax rate changes and
clarifications on certain Goods and Services besides some other agenda.

1.5 The Secretary informed the Council that the agenda for 53rd Council meeting was discussed
in detail during the Officers’ Meeting a day before which would immensely benefit the Council
in its deliberations.
1.6 The Secretary sought the permission of the Chair to begin deliberations on each
agenda item.
2. Agenda item 1: Confirmation of the Minutes of 52nd meeting of the GST Council held
on 7th October, 2023
2.1 The Secretary informed the Council that the draft minutes of 52nd meeting of the GST
Council were circulated to all States and requests for changes were received from some States
which were accepted and incorporated in the draft minutes. The revised minutes were circulated
in the agenda.

2.2 The Hon’ble Member from Karnataka stated that their intervention in the 52nd meeting of
the GST Council were accurately recorded and there is no discrepancy in the same. He further
drew attention of the Hon’ble Chairperson to their request for setting up a mechanism for
continuation of cesses to which the Hon’ble Chairperson had a positive response and indicated
that soon a discussion might be initiated on the same.
2.3 The Secretary noted the request of the Hon’ble Member from Karnataka. He requested the
Council to adopt the minutes of the 52nd meeting of the GST Council.
Decision: The Council adopted the Minutes of the 52nd meeting of the GST Council held on
7th October, 2023.
3. Agenda Item 2: Ratification by the GST Council of the Notifications, Circulars and
Orders issued and decisions of GST Implementation Committee for the information of the
Council

3. 1 The Secretary took up the next agenda pertaining to the deemed ratification by the GST
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Council of the Notifications, Circulars and Orders issued by the Central Government and decisions
of GST Implementation Committee (GIC) for the information of the Council (Page 132-151 of
the Volume-I of the agenda). He stated that this agenda was discussed in the Officers’ meeting held
the day before and there was consensus on the same. He requested the Council to ratify the
Notifications, Circulars and Orders issued and take note of the decisions of the GST
Implementation Committee (GIC).

3.2 The Hon’ble Member from Bihar thanked the Hon’ble Chairperson for consideration of their
request through GIC for relaxation in the eligibility criteria for selection of Technical Member
(State) of Goods and Services Tax Appellate Tribunal (GSTAT) in respect of Bihar.

Decision: The Council ratified the Notifications, Circulars and Orders issued and took note
of the decisions of GST Implementation Committee (GIC).
4. Agenda Item 3: Issues recommended by the Law Committee for the consideration of
the GST Council
4.1 The Secretary took up the next agenda for the consideration of the GST Council. He informed
that these agendas were discussed in detail in the Officers’ meeting held on 21st June, 2024 and
there was an agreement among the officers on most of the issues.

The Pr. Commissioner, GST Policy Wing made a detailed presentation (attached as Annexure 3)
giving an overview of the recommendations made by the Law Committee as well as the gist of
the discussions held in the Officers’ meeting.
Agenda Item 3(i)(I) : Amendment to Section 9 of CGST Act regarding non- applicability of
GST on Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human
consumption
4.2 The Pr. Commissioner, GST Policy Wing stated that issue of Taxation of rectified
spirit/Extra Neutral Alcohol (ENA) under GST was deliberated by the GST Council in 52nd
Meeting and the following recommendations were made by the Council on the taxability of
rectified spirit/ Extra Neutral Alcohol (ENA) under GST:
i. To place before Supreme Court that GST Council has no intention to levy GST on ENA for
manufacture of alcoholic liquors for human consumption.
ii. To make suitable amendment in law to exclude ENA (both grain-based and
molasses-based) from ambit of GST when supplied for manufacture of alcoholic
liquors for human consumption.
iii. To reduce GST on Molasses from 28% to 5%.
iv. To notify GST rate of 18% for new tariff item at 8-digit level created for Rectified spirits
(ENA) for industrial use (HS 2207 10 12).
4.3 He further informed that as regards recommendation of Council at S. No. ii above, Law
Committee in its meeting held on 18.10.2023 recommended amendment in sub-section (1) of
Section 9 of the CGST Act, 2017 for not levying GST on Extra Neutral Alcohol used for
manufacture of alcoholic liquor for human consumption, as detailed in the agenda note. Law
Committee also recommended that similar amendments may be carried out in the SGST Act, the
UTGST Act and the IGST Act.
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4.4 The Pr. Commissioner, GST Policy Wing further informed the updated status of action on
other recommendations of GST Council made in 52nd meeting on this issue, as below:
i. The Department is in the process of filing an IA in Supreme Court in the matter to inform
that it does not intend to levy GST on ENA.
ii. The GST rate on molasses has been reduced to 5% vide Notification no. 17/2023 –
Central Tax (Rate) dated 19.10.2023.
iii. Vide the same notification, the GST rate on spirits for industrial use has also been notified.
iv. A Committee of Officers (CoO) convened by JS TRU, with officers from the States of
Karnataka, Uttar Pradesh, West Bengal, Rajasthan, Maharashtra, Madhya Pradesh, Punjab
and Andhra Pradesh, was constituted to study the taxation of Extra Neutral Alcohol (ENA)
under Goods and Services Tax (GST) for the past period. Two meetings of the said
committee have been held on the 3rd November, 2023 and 11th January, 2024.
4.5 The Hon’ble Member from Tamil Nadu stated that the matter is being referred to the
Hon’ble Supreme Court and is also under review by the CoO for the past period. He suggested that
a decision on this issue can be taken at a later date once the Hon’ble Supreme Court's verdict is
delivered and the CoO’s findings are presented to the Council.
4.6 The Secretary stated that the Council has already decided to exclude ENA from the
purview of the GST, and further deliberation would delay the implementation of this decision. The
CoO has been constituted to study the taxation of ENA under GST for the past period. Moreover,
the Interlocutory Application intended to be moved in the Supreme Court aims to inform the
Court that the Council does not intend to levy GST on ENA used for manufacturing alcoholic liquor
for human consumption. He stated that delaying the process, which has already been agreed upon
by the Council, would not be beneficial.
4.7 The Hon’ble Member from Andhra Pradesh agreed with the proposed amendment and
also suggested that measures to regularize past transactions may also be taken. He stated that many
States have collected money, and without clarity, this could lead to further litigation and would
drain the resources. He also suggested that necessary amendments, as proposed in the agenda,
should be made to enable the States to continue collecting VAT in the future.
4.8 The Hon’ble Member from Karnataka welcomed the remarks made by the Revenue
Secretary, stating that the decision has been made after several years of discussion. He advised
against reconsidering the original decision but mentioned that lingering issues should be addressed
by the CoO.
4.9 The Hon’ble Members from Meghalaya and Goa also welcomed the remarks made by the
Secretary and expressed their agreement with the proposal.
4.10 The Secretary urged the CoO members to expedite their study and analysis and provide
recommendations for the taxation of ENA under GST for the past period. He also informed that
filing the Interlocutory Application in the Supreme Court would help resolve the dispute pending
before the Court.
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4.11 The Chairperson directed the CoO to thoroughly examine the lingering issues and come
back with their findings by the next meeting.
Decision: The Council agreed with the said recommendations of the Law Committee
regarding the amendment to Section 9 of the CGST Act, and the similar amendments in the
SGST Act, the UTGST Act and the IGST Act.
Agenda Item 3(i)(II): Insertion of Section 11A in CGST Act for granting power not to
recover duties not levied or short-levied as a result of general practice under GST Acts
4.12 The Pr. Commissioner, GST Policy Wing stated that the GST Council has in the past
recommended regularization of certain assessments on “as is where is basis”. The regularization
was necessitated due to reasons such as ambiguity in provisions of law, overlapping entries of
notifications, divergent practices being followed in the field, etc.

4.13 He further mentioned that various recommendations of the GST Council to regularize
past assessments on as is where is basis were implemented by Central and State governments
through circulars. There is no specific provision under GST law which empowers the Central/State
Governments not to recover GST not levied or short-levied as a result of any ambiguity or
general practice.

4.14 He informed that such powers existed in the Customs Act, 1962 and Central Excise Act,
1944 which also applied to Service Tax. Section 28A under Customs Act, 1962 and Section
11C of Central Excise Act, 1944 provided for the same. The Customs Act and Central Excise
Act also provides for refund of any duty paid in excess of what was paid as a matter of general
practice where a notification was issued under the above provisions. Accordingly, there may be a
need for incorporation of suitable provisions in GST laws also to empower the Government for
such regularization in cases where such non levy or short levy was a result of general practice in
the trade or a section of trade.

4.15 He further mentioned that the Law Committee in its meeting held on 30.05.2024,
recommended that a provision may be incorporated in GST laws (CGST Act, SGST Act, IGST
Act, UTGST Act and Compensation Cess Act) empowering the Central and State Governments to
regularize, on the basis of the recommendations of the GST Council, non –levy or short levy
of GST or Compensation Cess where it is found that such non levy or short levy was a result
of general practice in the trade or a section of trade. Law Committee also recommended that no
refund of GST or Compensation Cess may be allowed on account of any notification issued in
this regard. The Law Committee proposed inserting a new section 11A in the CGST Act, 2017,
as detailed in the agenda note.

4.16 Further, Law Committee also recommended similar provision to be inserted in other
GST Acts as detailed below:
Section 6A in Integrated Goods and Services Tax Act, 2017. In this Act, references to
"central tax" in the proposed section will have to be replaced with "integrated tax”.
Section 8A in Union Territory Goods and Services Tax Act, 2017. In this Act, references to
"central tax" in the proposed section will have to be replaced with "Union territory tax”.
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Section 8A in Goods and Services Tax (Compensation to States) Act, 2017. In this Act,
references to "central tax" in the proposed section will have to be replaced with "cess".
Also, pari-materia amendments need to be made in State GST Acts.
4.17 He further stated that in the Officers’ Meeting held on 21st June 2024, it was recommended
that sub-section (2) of the proposed section 11A of the CGST Act, which provides that no refund to
be given in respect of tax already collected which would not have been collected had the
notification issued under sub-section (1) of the proposed section 11A been in force at all
material time, may be deleted, as similar provision denying refund did not exist in Customs
Act and Central Excise Act. He also informed that it was also discussed in Officers’ meeting as
to whether there is a need to define the term “general practice” in the said proposed section.
However, a consensus emerged in the said meeting that there may not be any need for the same, as
similar definition was also not incorporated in Customs Act and Central Excise Act.
Decision: The Council agreed with the said recommendations of the Law Committee to
insert Section 11A in the CGST Act, 2017, but without the proposed sub-section (2), and to
make pari-materia amendments in other GST Acts.
Agenda Item 3(i)(III): Amendment in Section 13 and Section 31 of the CGST Act, 2017
regarding time of supply and issuance of invoices in respect of RCM supplies.
4.18 The Pr. Commissioner, GST Policy Wing stated that Section 13 of CGST Act, 2017
provides for determination of time of supply of services. Sub-section (3) of section 13 of
CGST Act provides for determination of time of supply of services in cases where the tax is
paid or liable to be paid on reverse charge basis by the recipient of the services. Clause (b) of
section 13(3) of CGST Act links time of supply with the date of issue of invoice, or any other
document in lieu thereof, by the supplier. However, as per clause (f) of section 31(3) of CGST
Act, in cases of supplies received from the unregistered persons, where tax is to be paid on
reverse charge basis by the recipient, the invoice is to be issued by the recipient. Clause (b) of
section 13(3) of CGST Act does not specifically cover the scenarios where invoice is required
to be issued by the recipient in case of RCM supplies as per section 31(3)(f) of CGST Act, which
is creating ambiguity regarding interpretation of time of supply in such cases.

4.19 Law Committee in its meetings held on 31.01.2024 and 25.04.2024 recommended that
suitable amendment may be done in Section 13(3) of CGST Act to provide for a specific
provision in section 13(3) for covering the cases where the invoice is required to be issued by
the recipient of services in case of RCM supplies. Law Committee recommended that
amendments may be made in clause (b) of sub-section (3) of section 13 of the CGST Act and a
separate clause (c) may be inserted in the said sub-section to cover the said scenario. Further,
amendment may also be required in the proviso to the said sub-section. The amendment as
recommended by the Law Committee are detailed in the agenda note.

4.20 Further, Law Committee also observed that there is a lack of clarity in clause (f) of
sub-section (3) of section 31 of the CGST Act, read with rule 47 of CGST Rules, 2017, regarding
the time period within which the invoice is required to be issued by the recipient in case of
RCM supplies. Therefore, Law Committee recommended that amendment, as detailed in the
agenda note, may be made in section 31(3)(f) of the CGST Act, 2017 to specifically provide
for the same.
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4.21 Further, Law Committee also recommended that such time period for issuance of invoice
by the recipient in case of RCM supplies may be prescribed in the CGST Rules, 2017.
Accordingly, Law Committee recommended for insertion of Rule 47A in CGST Rules, 2017
providing for the same. Also, Law Committee recommended that the second proviso to Rule 46
of CGST Rules, 2017 may be omitted as the same is not relevant now, as very few supplies
have been notified under section 9(4) of CGST Act, 2017.

4.22 Law Committee also observed that since in case of RCM supplies, the liability to issue
invoice is on the registered recipient of supplies, therefore, a doubt emerges as to whether a
supplier who is registered solely for the purposes of TDS deduction under Section 51 of CGST
Act, is to be considered as a registered person for the purpose of clause (f) of sub-section (3) of
section 31 of the CGST Act.

4.23 In order to clarify the same, the Law Committee recommended that an explanation may
be inserted in sub-section (3) of Section 31 of CGST Act so as to clearly provide that a
supplier who is registered solely for the purposes of TDS deduction under Section 51 of CGST
Act, 2017 shall not be considered as a registered person for the purpose of clause (f) of sub-
section (3) of section 31 of the CGST Act.

4.24 Pr. Commissioner, GST Policy Wing informed that this agenda was discussed in Officers’
Meeting on 21st June 2024 and it was agreed to by all.
Decision: The Council agreed with the said recommendations of the Law Committee.
Agenda Item 3(i)(IV): Amendment in Section 16 of IGST Act, 2017 along with corresponding
provisions in Section 54 of CGST Act, 2017, to curtail refund of IGST in cases where
export duty is payable, and also to rationalise the provisions of section 16 of IGST Act, 2017.
Issue I: Amendment pertaining to the issue of restriction on refund claim on goods on which
export duty is payable

4.25 The Pr. Commissioner, GST Policy Wing stated that vide second proviso to sub- section
(3) of Section 54 of CGST Act, a restriction has been provided that no refund of unutilised input
tax credit shall be allowed in cases where the goods exported out of India are subjected to
export duty. Doubts have been raised by some field formations that whether this restriction is
also applicable in respect of grant of refund of integrated tax paid on goods exported out of
India, and also in respect of supplies from Domestic Tariff Area to Special Economic Zones, where
the said goods exported out of India are subject to export duty.

4.26 Law Committee observed that as the restriction provided by second proviso to sub-
section (3) of section 54 of CGST Act is specifically provided only in respect of refund of
unutilised input tax credit in cases where the goods are exported out of India under bond or Letter
of Undertaking route, this restriction on grant of refund does not appear to be applicable on refund
of integrated tax in respect of goods exported out of India on payment of integrated tax or on
goods supplied to a Special Economic Zone developer or a Special Economic Zone unit for
authorized operations.
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4.27 The Law Committee felt that since the purpose of imposing export duty is to ensure that
domestic availability of goods is met and price of such goods are stable/ retained in domestic
economy i.e. curb on inflationary tendency, therefore, it is desirable that refund in respect of goods
which are subjected to export duty should be prohibited irrespective of the fact that whether the
said goods are exported without payment of taxes or with payment of taxes, and such prohibition
should also be applicable if such goods are supplied to a Special Economic Zone developer or a
Special Economic Zone unit for authorized operations.

4.28 The Law Committee recommended that second proviso to sub-section (3) of Section
54 of CGST Act may be omitted and sub-section (15) may be inserted in the said section, along
with the insertion of sub-section (5) in Section 16 of IGST Act, 2017, as detailed in the agenda
note, to provide that no refund of unutilized input tax credit or integrated tax shall be allowed in
cases where the zero rated supply of goods are subjected to export duty.

Decision: The Council agreed with the said recommendations of the Law
Committee.
Issue II: Amendment to rationalise the provisions to notify class of goods or services
in respect of which IGST refund route is available.
4.29 The Pr. Commissioner, GST Policy Wing stated that while clause (i) of sub- section (4) of
section 16 of IGST Act, 2017, refers to the class of persons who may make zero rated supplies on
payment of integrated tax, clause (ii) of sub-section (4) of section 16 of IGST Act, 2017 only
refers to the phrase “a class of goods or services which may be exported on payment of
integrated tax”, and does not refer to zero-rated supplies of such goods or services. An
interpretation can be made that under sub-section (4) of section 16 of IGST Act, while
Government can notify class of persons who may make zero rated supplies on payment of
IGST and claim refund of the tax so paid (i.e. including exports and supplies to Special
Economic Zones units or Special Economic Zones developers for authorized operations) but the
Government can notify only the class of goods or services which may be exported on payment
of IGST and claim refund of the tax so paid and cannot notify the class of goods or services which
are supplied to Special Economic Zones units or Special Economic Zones developers for
authorized operations, on payment of IGST.

4.30 Further, while sub-section (3) of section 16 of IGST Act mentions that refund of unutilised
input tax credit in respect of zero rated supply of goods or services without payment of tax can be
claimed in accordance with provisions of section 54 of the Central Goods and Services Tax Act or
the rules made thereunder, subject to such conditions, safeguards and procedure as may be
prescribed, no such specific reference to section 54 of CGST Act has been made in sub-section
(4) of section 16 of IGST Act.

4.31 He mentioned that to harmonise these sub-sections and to remove any doubts, Law
Committee recommended that clause (ii) of sub-section (4) of Section 16 of the IGST Act,
2017 may be amended to provide for notification of class of goods or services which may be
supplied with payment of integrated tax on zero rated basis. Law Committee also
recommended that clause (i) and clause (ii) of sub-section(4) of section 16 of IGST Act may
specifically provide for claim of refund on payment of IGST in respect of zero- rated supplies in
accordance with provisions of section 54 of the Central Goods and Services Tax Act or the rules
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made thereunder, subject to such conditions, safeguards and procedure as may be prescribed.

Decision: The Council agreed with the said recommendations of the Law
Committee.
Agenda Item 3(i)(V): Amendment in section 70 of the CGST Act, to provide clarity
regarding appearance by authorised representative in response to summons.

4.32 The Pr. Commissioner, GST Policy Wing stated that as section 70 of the CGST Act does
not mention the words ‘authorised representative’, doubts have been raised as to whether the
summoned person may appear through an authorised representative in response to a summon
issued under section 70 of CGST Act.

4.33 Ministry of Law & Justice has opined that to expand the provisions of section 70 of
CGST Act to include ‘authorised representative’ or ‘oath’ by placing reliance on provisions of
section 116 of the CGST Act may tantamount to rewriting the provisions of section 70 and may
not withstand judicial scrutiny. The Central Excise Act, 1944 and Customs Act, 1962 provide in
the section itself for an option for the appearance through authorised agent against the summons
issued to the person.

4.34 The issue was deliberated by the Law Committee. The Law Committee recommended to
insert sub-section (1A) in section 70 of the CGST Act, as detailed in the agenda note, to
provide an explicit reference to appearance through ‘authorised representative’.

Decision: The Council agreed with the said recommendations of the Law Committee.
Agenda Item 3(i)(VI): Amendment in sub-section (1B) of section 122 of the CGST Act, 2017
with respect to penalty provisions for non-compliant electronic commerce operators
4.35 The Pr. Commissioner, GST Policy Wing stated that the GST Council in its 47th meeting
held on 28th and 29th June 2022, approved waiver from requirement of mandatory registration
under section 24(ix) of CGST Act for unregistered person supplying goods intra-State through
Electronic Commerce Operator (“ECO”) up to threshold turnover for registration subject to certain
conditions and also allowed composition taxpayers to make intra-State supply of goods through
ECOs subject to certain conditions. Accordingly, Notification No. 34/2023–Central Tax dated
31.07.2023, Notification No. 37/2023-Central Tax dated 04.08.2023 and Notification No. 28/2023
– Central Tax dated 31.07.2023 were issued providing a special procedure to be followed by
ECOs and the conditions to be fulfilled by the ECOs and such unregistered person for availing the
benefit of such waiver from requirement of mandatory registration.

4.36 In order to ensure due compliance of the conditions as laid down through the said
Notifications, penal provisions were provided under sub-section (1B) of Section 122 of CGST
Act for contraventions by ECOs related to supply of goods made through ECOs by unregistered
persons and composition taxpayers. The said penal provision were brought in force with effect
from 01.10.2023 vide Notification no. 28/2023-Central Tax dated 31.07.2023.

4.37 He stated that representations have been received from trade seeking clarification on the
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applicability of these penal provisions in respect of ECOs who are not required to collect tax at
source from suppliers under section 52 of the CGST Act.

4.38 He further stated that the penal provisions under section 122 (1B) of the CGST Act have
been provided in respect of ECOs, who are required to ensure compliance with the conditions of
supply of goods by unregistered suppliers and compositions taxpayers through them, as provided
vide the said concerned notifications. Such compliance is required from the ECOs who are required
to collect tax at source under section 52 of the CGST Act and not from other category of ECOs,
who are not required to collect tax at source under section 52 of the CGST Act.

4.39 The Law Committee recommended that the applicability of sub-section (1B) of section
122 of CGST Act may be restricted to ECOs, who are required to collect tax at source under
section 52 of CGST Act, by making the amendment in section 122(1B) of CGST Act, as detailed
in the agenda note, retrospectively with effect from 01.10.2023 (i.e. date from which section
122(1B) of CGST Act has come into effect).

Decision: The Council agreed with the said recommendations of the Law Committee.
Agenda Item 3(i)(VII): Amendment in section 140(7) of the CGST Act to provide for
transitional credit in respect of invoices pertaining to services provided before appointed
date and where invoices were received by ISD before the appointed date
4.40 The Pr. Commissioner, GST Policy Wing stated that Hon’ble High Court of Bombay, in
its order dated 29.02.2024 in the case of Siemens Ltd Vs Union of India relating to the eligibility
of transition credit in the case of an Input Service Distributor (ISD) in respect of invoices
received before the appointed date, has observed that it would be appropriate that the GST
Council considers the issues inter alia the effect that sub-section (7) of section 140 of CGST Act
would bring about on the transition of input tax credit. He added that a reference has been
received from Additional Solicitor General of India (ASG) in this regard, where he has mentioned
that the High Court expects the government to carry out an amendment in the provisions of
Section 140(7) of CGST Act, 2017 in the interest of the trade subject to legitimate conditions
including proper scrutiny and verification.

4.41 The Pr. Commissioner, GST Policy Wing informed that the issue was deliberated by the
Law Committee. The Law Committee felt that transitional credit should be available to ISDs even
for such cases where inputs and input services have been received along with invoices prior to
30.06.2017. Law Committee recommended that an amendment may be made in Section 140(7) of
CGST Act, 2017, as detailed in the agenda note, retrospectively with effect from 01st July 2017,
so as to enable the taxpayers to avail transitional credit of eligible CENVAT credit on account of
input services received by an ISD prior to the appointed day, for which invoices were also
received prior to the appointed date.

4.42 He also stated that this amendment is required only in CGST Act, 2017 and no
corresponding amendment is required in SGST Act/ UTGST Act.
4.43 The Pr. Commissioner, GST Policy Wing mentioned that the issue was discussed in the
Officers’ Meeting held on 21.06.2024 and it was suggested in the said meeting to slightly modify
the amendment to be made in sub-section (7) of section 140 of CGST Act, 2017, as below:
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Section 140 of CGST Act, 2017:
…
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on
account of any services received prior to the appointed day by an Input Service
Distributor shall be eligible for distribution as credit under this Act, within such time and in
such manner as may be prescribed, whether the invoices relating to such services are
received before, on or after the appointed day.

Decision: The Council agreed with the said recommendations of the Law Committee to
amend sub-section (7) of section 140 of CGST Act, 2017, retrospectively with effect from
01.07.2017, along with the suggestion made in the Officers’ Meeting to modify the draft
amendment in the said sub-section, as detailed in Para 4.44.
Agenda Item 3(ii): Law Amendment regarding time of filing appeal in GST Appellate
Tribunal
4.44 The Pr. Commissioner, GST Policy Wing stated that the President of the Principal Bench
of the GST Appellate Tribunal (GSTAT) has entered office on 6th May, 2024. As per the Central
Goods and Services Tax (Ninth Removal of Difficulties) Order,2019, the period for filing
appeals to GSTAT as per section 112 of CGST Act would start from this date. However, as the
appointment of other Judicial and Technical Members of the Principal Bench and various State
Benches may take further time, therefore, there was a need to revise the time limit for filing
appeals.
4.45 The said issue was deliberated by the Law Committee and the Law Committee
recommended amendment in sub-section (1) and sub-section (3) of section 112 of CGST Act, as
detailed in the agenda note, to allow filing of appeals in Appellate Tribunal within three months/
six months, as the case may be, from the date of communication of the order appealed against or
the date as may be notified by the Government on the recommendations of the Council, whichever
is later.
4.46 The Pr. Commissioner, GST Policy Wing added that Law Committee also recommended
that the said date, to be notified, can be decided based on the readiness of the functionality in
respect of Tribunal on the portal as well as based on the status of appointment of Members of
various Benches as well as operational readiness of the Benches of the Tribunal. Besides, it was
also recommended by the Law Committee that the amendments proposed in sub-section (1)
and sub-section (3) of section 112 of CGST Act, may be brought into effect before the
completion of three months from the date on which the President of the Appellate Tribunal has
entered into office.

4.47 The Pr. Commissioner, , GST Policy Wing further mentioned that as per sub-section (6) of
section 112 of the CGST Act, the Tribunal is given the power to admit the appeal within three
months after the expiry of the appeal filing period of 3 months by the taxpayer as provided in sub-
section (1) of the said section. However, similar provision is not provided for allowing the appeals
to be filed by the department in the Tribunal under sub-section (3) of section 112 of CGST Act
beyond the period of six months specified therein. Law Committee recommended that the Tribunal
may be empowered to entertain appeals from the department also for a further period of 3
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months after expiry of the period of 6 months as provided in sub-section (3) of the section
112 of CGST Act, in case the Tribunal is satisfied that there was a sufficient cause for such
delay. The Law Committee recommended amendment in sub-section (6) of section 112 of
CGST Act for this purpose.
Decision: The Council agreed to amendments in section 112 of the CGST Act as per
recommendations of the Law Committee.
Agenda Item 3 (iii) : Law Amendment regarding GST Appellate Tribunal
(a) Providing for sunset clause for Anti-Profiteering provisions under the GST laws and the
handling of Anti-Profiteering cases under Section 171 of the Central Goods and
Services Act, 2017 by Appellate Tribunal.
(b) Providing for enabling provision for notifying the scope of cases that can be heard by the
Principal Bench of GSTAT only.
4.48 The Pr. Commissioner, GST Policy Wing informed that substantial time-period has
passed since the introduction of the GST law, and now it is prudent to re-assess the relevance of
the Anti-profiteering provisions which were meant to be transitional provision post the
implementation of GST regime in 2017. He further informed that the number of cases coming
before Anti profiteering authority are very less in number and therefore, such provisions may no
longer be necessary. He added that National Anti- Profiteering Authority (NAA) was constituted
to handle the cases relating to anti- profiteering. NAA was operational until November 2022.
Vide Notification dated 23rd November, 2022, the Competition Commission of India (CCI)
was empowered to examine the anti-profiteering cases w.e.f. 01.12.2022. However, CCI has
expressed its inability to handle anti-profiteering cases and has requested that adjudication of anti-
profiteering matters may be given to an appropriate GST authority.

4.49 The issue was deliberated by the Law Committee and the Law Committee recommended
amendment in sub-section (2) of section 171 of the CGST Act, as detailed in the agenda
note, by inserting a proviso in the said sub-section to provide for power to the Government to
notify the date from which the Authority under section 171 of the CGST Act will not accept any
request for examination for anti-profiteering, also by inserting an Explanation in the said sub-
section that “request for examination” in the said proviso means the written application filed by
an applicant for such examination. Law Committee also recommended notifying 1st April,
2025 as the date from which the Authority under section 171 of the CGST Act would not accept
any request for examination regarding anti-profiteering.

4.50 Law Committee also recommended that the Principal Bench of GST Appellate Tribunal
may be given the mandate to adjudicate anti-profiteering cases under section 171 of the CGST
Act considering the inability expressed by Competition Commission of India to handle anti-
profiteering cases.
4.51 The Pr. Commissioner, GST Policy Wing, further informed that presently, cases which
pertain to Place of Supply, are to be heard only by the Principal Bench of GSTAT. However, there
may be requirement of other type of cases also to be heard by Principal Bench of GSTAT only.
4.52 Law Committee recommended amendment of section 109 of CGST Act (amendment of
sub-section (1) and insertion of sub-section 5A), as detailed in the agenda note, to provide that
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Principal Bench of the Tribunal shall also adjudicate or examine such other matters as may be
notified by the Government on the recommendations of the Council. Law Committee also
recommended amendment in sub-section 5 & 6 of section 109 of CGST Act, as detailed in the
agenda note, to provide for the power to notify other cases or class of cases which shall be heard
only by the Principal Bench of GST Appellate Tribunal.
4.53 The Hon’ble Member from Kerala expressed his concern over the said sunset clause for
anti-profiteering provisions and stated that there is a need to have a re-look at the said sunset
clause. He highlighted the instances where rates have been reduced but the benefit of such rate
reduction has not been passed on to the consumer. He, therefore, insisted on devising some
mechanism to safeguard the transfer of tax benefits to ultimate consumers.
4.54 The Secretary informed that Anti profiteering provisions are transitional provisions
brought specifically in GST law and were extremely necessary at that time considering the
monumental transformation brought about by the GST regime. He hoped that now, as GST has
already stabilized, market forces would take care of the reduction in prices in case of rate
reduction.
4.55 The Hon’ble Chairperson stated that the concern of the Hon’ble Member of Kerala is
valid and showed her concern that if the benefits of rate reduction do not accrue to the ultimate
consumer then through redressal mechanism, justice could be given to the consumer who is not
benefited by such rate reduction. She assured that such redressal could be done by the GST
Appellate Tribunal and in case it does not happen, the Council can anytime bring the issue for
discussion at the forum.
4.56 The Hon’ble Member from Meghalaya supported the viewpoint of Hon’ble Member from
Kerala, however, concurred with the recommendation of Law Committee and agreed to
implementing the provision recommended by the Law Committee.
Decision: The Council agreed with the recommendations of the Law Committee along with
the draft Notification.
Agenda Item 3 (iv): Amendments in Section 73 and Section 74 of CGST Act, 2017 and
insertion of a new Section 74A in CGST Act, to provide for common time limit for issuance
of demand notices and orders irrespective of whether case involves fraud, suppression,
wilful misstatement etc., or not
4.57 The Pr. Commissioner, GST Policy Wing stated that different time limits have been
specified for issuing demand notice under sections 73 and 74 of the CGST Act. While section 73
covers cases where fraud, suppression, wilful misstatement etc., are not involved, section 74
covers those cases involving fraud or willful misstatement etc. Due to the different time limits
for issuing demand notices under sections 73 and 74, revenue can be lost on account of the demand
getting time-barred, when cases initially issued under section 74 are subsequently found to be
covered under section 73, as charges of fraud, willful misstatement, etc. are not found
substantiated. This is due to shorter time limit in section 73 in comparison to section 74.
Accordingly, there may be a need to address this concern.
4.58 Therefore, Law Committee felt that it may be desirable that to avoid such revenue loss,
there may be a need to have the same the limitation period for issuing demand notices and orders
under both type of cases, viz, those involving fraud, suppression of facts, wilful misstatement and
those not involving fraud, suppression of facts, wilful misstatement, while keeping a higher penalty
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for cases involving fraud, wilful misstatement, or suppression of facts.

4.59 He added that also, the time available for issuance of adjudication order under sections 73
and 74 of the CGST Act of 3 months and 6 months respectively is not sufficient to complete the
process in a sound legal way, as the noticee is required to be provided with an opportunity to
explain his stand and present evidence of the same which is a time- consuming process since
the noticee may need ample time and opportunity to present his case and for the tax authority to
verify the same.
4.60 He stated that Law Committee felt that there may be a need to amend the provisions to
provide for the same time limit for issuing of demand notices under both type of cases, viz,
those involving fraud, suppression, wilful misstatement and those not involving fraud, suppression,
wilful misstatement. Besides, the time limit for issuance of demand orders also needs to be
increased to provide more time to taxpayers and tax officers for the adjudication process.
4.61 Law Committee further recommended that the limitation period for issuing demand
notices, may be made forty two months from the relevant date, and the time limit for issuance of
demand orders may be kept at twelve months from the date of issuance of the demand notice,
irrespective of whether the charges of fraud, suppression or willful misstatement of facts are
invoked or not. It was also recommended that some flexibility of time limit for issuance of
demand order may be provided in cases where the proper officer is not able to issue the order
within the period specified above due to some situations, and in the deserving cases, the
Commissioner, or an officer authorized by the Commissioner senior in rank to the proper officer
but not below the rank of Joint Commissioner of Central Tax, may extend the said period further
by a maximum of six months, after recording the reasons in writing.
4.62 He further mentioned that there is a need to have a relook at the time period provided for
payment of entire tax demanded along with interest and reduced penalty by the taxpayer for
concluding the proceedings under the said sections. He stated that the Law Committee felt that the
time period of thirty days is too short for the taxpayers to analyse the said notice, and take a
decision for payment of full amount of tax demanded, along with interest, and reduced penalty, as
applicable. In view of above, the Law Committee recommended to increase the said time limit
from ‘30 days’ to ‘60 days’ under the sub-section (8) of section 73 and sub-section (8) of
Section 74.

4.63 Law Committee recommended that these amendments may be made prospective, in
respect of demands for the period FY 2023-24 onwards. Law Committee after due deliberations
recommended the insertion of a new section, Section 74A to the CGST Act, 2017, as detailed in
the agenda note. The Law Committee also recommended amendments in Sections 73 and 74 of the
CGST Act, to restrict their applicability up to FY 2022-23.

4.64 He also mentioned that consequential amendments may also need to be done in multiple
sections of CGST Act, 2017, as detailed in the agenda note. He mentioned that one of the
consequential amendment recommended by the Law Committee pertain to that in section
17(5) of the CGST Act so as to restrict clause (i) of section 17(5) in respect of tax paid
upto FY 2022-23. He mentioned that after insertion of proposed section 74A in CGST Act
for determination of tax demands for FY 2023-24 onwards, there shall be no distinction
between the tax demanded and paid in terms of section 73 and section 74, and therefore, there
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will be no need to block input tax credit on the tax paid in accordance with section 74 in the
said clause for FY 2023-24 onwards. Besides, it was felt that this will also help in recovery of
taxes demanded under Section 74A of the CGST Act, 2017.
4.65 He stated that Officers’ meeting held on 21.06.2024, officer from State of Bihar in
mentioned that there are cases where SCNs for FY 2023-24 have already been issued under
existing Section 73. He mentioned that it was accordingly suggested in Officers’ meeting that the
proposed Section 74A may be implemented for demands of FY 2024-25 onwards. He also
mentioned that consequential changes, including in section 17(5)(i) of CGST Act, may also be
done accordingly for implementing them for demands for FY 2024-25 onwards.
4.66 The Hon’ble Member from West Bengal raised concerns regarding the merger of sections
73 and 74 of the CGST Act, 2017, questioning the appropriateness of allowing input tax credit
(ITC) on taxes paid in cases involving fraud.
4.67 In response, Pr. Commissioner, GST Policy Wing clarified that penalties differ
significantly between fraud and non-fraud cases, with fraud cases attracting a 100% penalty on the
tax demanded compared to 10% for non-fraud cases. He stated that the issue is whether recipient
should be denied credit altogether where tax has been paid along with interest and higher penalties
are being charged from the taxpayer. The Law Committee deliberated on this and felt that
consequent of having a single provision for demands in cases involving fraud and not involving
fraud, there may not be a case for blocking input tax credit on the tax paid.
4.68 Responding to the concern raised by the Hon’ble Member from West Bengal, the
Secretary stated that denying ITC could lead to double taxation and excessively harsh penalties,
including penal interest at 18% per annum. This coupled with a 100% penalty on tax demands,
would discourage compliance, if input tax credit is also denied to the recipient. He proposed
allowing ITC where taxes have been paid, arguing that penalties are different between fraud and
non-fraud cases to maintain fairness. He also added that overly stringent penal provisions, by
denial of input tax credit to recipients, would significantly burden taxpayers.
Decision: The Council agreed with the said recommendations of the Law Committee, along
with the suggestions made in Officers’ meeting and to implement the proposed Section
74A for demands for FY 2024-25 onwards.
Agenda Item 3(v): Amendment in section 39 of CGST Act and rule 66 of CGST Rules,
2017 for mandating NIL returns by TDS deductors and waiver of late fee for late filing of NIL
FORM GSTR-7, along with changes in FORM GSTR - 07 for inserting invoice/ document-
wise details of tax deducted at source.
4.69 The Pr. Commissioner, GST Policy Wing stated that FORM GSTR-7, i.e. return to be
filed by TDS deductors in terms of section 39(3) of CGST Act read with rule 66 of CGST Rules, is
required to be filed only for the months in which deductions have been made. Due to this, the tax
administrators are finding it difficult to monitor the filing of the FORM GSTR-7 by the TDS
deductors. .

4.70 He informed that the Law Committee recommended that FORM GSTR-7 may be made
mandatory to be filed each month, irrespective of whether any deductions have been made by the
TDS deductors in the said month or not, by way of amendment to section 39(3) of CGST Act.
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Law Committee also recommended that no late fee should be payable in respect of delayed
filing of such nil FORM GSTR-7 returns. Also, GSTN may provide functionality for single
click filing of a nil return in FORM GSTR-7 on the common portal and/ or a mobile application.
Law Committee also recommended that the time limit to furnish FORM GSTR-7 return within
10 days of the end of such month may be brought under the Rule 66(1) of CGST Rules instead of
Section 39(3) of CGST Act.
4.71 He added that representations have also been received from the trade that as the extant
format of FORM GSTR-7 does not require invoice-wise details to be furnished, the deductee is
forced to accept/ reject the entire amount passed by a particular deductor. Requests have been
made to provide for invoice-wise details in the said return. The Law Committee recommended
that Table 3 and Table 4 of FORM GSTR-7 may be amended to provide for invoice wise details.
4.72 The Law Committee has, accordingly, recommended amendments in sub-section (3) of
Section 39 of CGST Act, sub-rule (1) of Rule 66 of CGST Rules and FORM GSTR- 7, and
issuance of a notification to waive late fee for delayed filing of Nil FORM GSTR-7 return, as
detailed in the agenda note.
Decision: The Council agreed with the said recommendations of the Law Committee along
with the draft Notification.
Agenda Item 3(vi): Relaxation in condition of section 16(4) of the CGST Act with respect
to cases where returns have been filed after revocation for initial years of implementation of
GST.
4.73 The Pr. Commissioner, GST Policy Wing informed that several representations have been
received from the trade and industry requesting for relaxation of the timelines stipulated in section
16(4) of CGST Act, 2017 for availment of input tax credit in respect of:-

a. initial years of GST i.e. FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21; and
b. cases where the returns for the period from date of cancellation of registration/ effective
date of cancellation of registration till the date of revocation of cancellation of
registration are filed after revocation of cancellation of registration.

4.74 He informed that in respect of cases at (b) above, the Law Committee observed that as
such return for the period from date of cancellation of registration/ effective date of cancellation
of registration till the date of revocation of cancellation of registration cannot be filed on the portal
by such taxpayers till their cancellation of registration is revoked, there is a need to extend the time
lines for section 16(4) of CGST Act in such cases, subject to certain conditions. Law Committee felt
that relaxation is warranted in respect of time limit for availment of input tax credit under section
16(4) of CGST Act in cases where the returns for the period from date of cancellation of
registration/ effective date of cancellation of registration till the date of revocation of cancellation of
registration are filed after revocation of cancellation of registration, but where the due date to avail
input tax credit under section 16(4) of CGST Act is already over. It was proposed that the time limit
to avail input tax credit under Section 16(4) of CGST Act in respect of any invoice or debit note,
may be extended till the date of filing return in cases where the returns for the period from
date of cancellation of registration/effective date of cancellation of registration till the date of
revocation of cancellation of registration are filed within 30 days of revocation of cancellation of
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registration, subject to the condition that the time limit to avail input tax credit in respect of the said
invoice or the debit note under section 16(4) of CGST Act had not already expired on the date of
cancellation of registration. This could be done by retrospective amendment of section 16(4) of
CGST Act, with effect from 01.07.2017, as detailed in the agenda note.

4.75 It was also recommended by the Law Committee that a clause may be inserted in the
Finance Act to the effect that no refund shall be admissible on account of the said
retrospective amendment in cases where such amount had already been paid or reversed on
account of contravention of section 16(4) of the Act.
4.76 The Law Committee also recommended that a specific clause may be inserted in section
30(2) of the CGST Act to provide for enabling provision to prescribe conditions and restrictions
for revocation of cancellation of registration. Besides, a specific clause may be inserted in rule 21 of
CGST Rules providing for cancellation of registration in respect of contravention of provisions of
third and fourth proviso to rule 23(1) of CGST Rules i.e. if the taxpayer fails to file returns
pertaining to the period from date of cancellation of registration/ effective date of cancellation of
registration till the date of revocation of cancellation of registration, within 30 days of revocation of
cancellation of registration.
4.77 He further stated that as regards the cases referred in (a) of Para 4.74, i.e. the cases where
the returns for initial years of GST viz. FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-
21were filed delayed, by when, the time limit to avail input tax credit under section 16(4) had
already expired. The Law Committee deliberated upon the three options by retrospective
amendment of section 16(4) of CGST Act, with effect from 01.07.2017, for providing relief to
such taxpayers who filed delayed returns during these initial years, by which time limit under
section 16(4) had expired:
Option 1: The time limit to avail input tax credit under Section 16(4) of CGST Act, through
any FORM GSTR 3B filed till 30.11.2021 for the financial years 2017-18, 2018-19, 2019-20
and 2020-21, may be deemed to be 30.11.2021.

Option 2: The time limit to avail input tax credit under Section 16(4) of the CGST Act for the
financial years 2017-18, 2018-19, 2019-20 and 2020-21, in any FORM GSTR 3B return of the
month upto September following the financial year to which such invoice or debit note
pertains, which is filed upto 30.11.2021, may be extended upto 30.11.2021.
Option 3: The time limit to avail input tax credit under Section 16(4) of the CGST Act may be
extended to the actual date of filing of FORM GSTR 3B or the date specified in Section 16(4)
of the Act, whichever is later, in respect of returns in FORM GSTR 3B filed within the time
period specified in the Late fee Amnesty schemes, as under:
(a) GSTR 3Bs pertaining to July 2017 to January 2020, filed between 01.07.2020
to 30.09.2020, in pursuance to Notification No. 52/2020 – Central Tax dated
24.06.2020.
(b) GSTR 3Bs pertaining to July 2017 to March 2021, filed between 01.06.2021
to 30.11.2021, in pursuance to Notification No. 19/2021 – Central Tax dated
01.06.2021 as amended by Notification No. 33/2021 – Central Tax dated
31.08.2021.
Page 28 of 463
4.78 In respect of all these options, it was also proposed that no refund shall be admissible on
account of the said retrospective amendment in cases where the amount of ITC has already been
paid or reversed in such cases. The Law committee deliberated on the matter, however, no
consensus could be achieved in respect of the said issue.
4.79 The Principal Commissioner, GST Policy Wing informed that the matter was further
deliberated in the Officers’ Meeting held on 21.06.2024 and a view emerged that Option 1,
detailed in Para 4.78 above, can be considered for providing relief to the taxpayers for initial
years of GST, viz. financial years 2017-18, 2018-19, 2019-20 and 2020-21. However, it was
suggested in the said meeting that the issue may be decided by the GST Council.
4.80 The Hon’ble Member from Uttar Pradesh stated that providing relief for time limit of
section 16(4) in respect of FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21, might place a
great burden on the States' exchequer and would not be feasible.
4.81 The Pr. Commissioner, GST Policy Wing explained that taxpayers have already availed
the input tax credit. The current issue is with taxpayers who filed late returns after the due
date of section 16(4) and availed ITC in those returns. This situation could result in excessive
demands and potential litigation, with low chances of recovery, especially from small taxpayers.
He further stated that it was also deliberated in the Law Committee and it was observed that
recovery would be challenging in these cases. Therefore, it may be desirable to go ahead with
option 1 as suggested in Officers’ Meeting, as it would not only provide relief to the taxpayers
for the initial years, but will also reduce the work load of the officers by reducing unnecessary
litigation, specially when recovery would be difficult.
4.82 The Hon’ble Member from Uttar Pradesh stated that taxpayers are already being received
relief of interest and penalty through another amnesty scheme mentioned in the agenda notes.
Providing another such amnesty would not be appropriate and could open a Pandora’s box.
4.83 The Secretary clarified that several late fee amnesty schemes were notified for the initial
years, as per which the waiver/ reduction of late fee for delayed filing of returns was provided after
detailed deliberation in the Council. The reduction in late fees was a small amount. Despite this,
taxpayers still had to file returns, pay tax and interest @18% per annum. However, no parallel
relaxation of conditions under Section 16(4) of the CGST Act was extended for returns filed
pursuant to such schemes. Consequently, all the input tax credit availed in such delayed filed
returns is being denied and demanded as irregularly availed ITC. This is because the ITC was
taken in returns filed after the due date to avail ITC in terms of Section 16(4) of the CGST Act.
He stated that denying ITC in such cases would be very harsh on taxpayers.
4.84 The Hon’ble Member from Uttar Pradesh suggested that penalty and interest could be
waived for taxpayers in cases other than fraud. However, opening the Pandora’s box for ITC
in terms of such an amnesty scheme would be a great burden on the State, potentially affecting the
demand of nearly Rs 5000 crores.
4.85 The Secretary clarified that this amount is not the actual demand to be collected but an
demand for the already availed ITC, which has been availed in delayed filed returns, along with
tax, interest, and penalty.
4.86 The Pr. Commissioner, GST Policy Wing added that these cases involve a number of
small taxpayers who will be adversely affected by such demands. Recovery would be very difficult
for tax officials and would take years to complete the process.
Page 29 of 463
4.87 The Hon’ble Member from Karnataka mentioned that taxes have been paid with already
adjustments made for Input Tax Credit, and are primarily related to the initial periods, mostly
involving smaller assesses. Notably, no large or institutional assesses are implicated, and the
financial implications are minor rather than substantial. He highlighted that there are 15,000 cases
in Karnataka involving only Rs. 600 crores. Expressing concerns over the operational impact, he
cautioned against pursuing these cases extensively and as a potential distraction for officers, akin to
a wild goose chase. Consequently, he urged the Hon’ble Member from Uttar Pradesh to
support the proposal, emphasizing its role in system cleanup and expediting new demand
processes.
4.88 The Hon’ble Member from Goa endorsed Karnataka's stance, noting that earlier while
relaxation in the timeline was given with respect to the filing returns, but unfortunately, there was
no relaxation of the condition imposed under the section 16 (4) regarding the claiming of the input
tax credit.
4.89 The Hon’ble Member from Bihar affirmed that the proposal had good potential to enhance
ease of doing business. Members from Madhya Pradesh and Haryana concurred with the
proposal.
4.90 The Hon’ble Chairperson subsequently sought the opinion of the Hon’ble Member from
Uttar Pradesh, who then agreed with the perspectives shared by other members and endorsed the
proposal as given in the concerned Agenda notes, along with view taken in the Officers’
meeting regarding going ahead with Option 1.
Decision: The Council agreed with the recommendations of the Law Committee, along with
the suggestion made in the Officers’ Meeting for option 1, as detailed in Para 4.78, in respect
of cases at para 4.74 (a).
Agenda Item 3(vii): Insertion of Section 128A in CGST Act, to provide for conditional
waiver of interest or penalty or both relating to demands raised under Section 73, for FY
2017-18 to FY 2019-20.
4.91 The Pr. Commissioner, GST Policy Wing stated that a large number of representations
have been received seeking relief from interest and penalties, considering the challenges faced
by taxpayers during the initial years of implementation of GST, and to encourage compliance
and support businesses to move forward.
4.92 He stated that Law Committee deliberated on this issue and recommended providing a
waiver of interest and penalty to the demand notices issued under Section 73 of the CGST Act,
2017, for FY 2017-18, FY 2018-19 and FY 2019-20, i.e. cases not involving fraud or wilful
misstatement or suppression of facts, subject to the condition that the said taxpayer pays the full
amount of tax demanded upto a date as may be notified on the recommendations of the Council.
Law Committee also recommended that such waiver may not be extended in respect of cases
involving charges of fraud or wilful misstatement or suppression of facts to evade tax, i.e. where
demand notices have been issued under section 74 of CGST Act and also in cases involving
demands of erroneous refund.
4.93 Law Committee also recommended that in case, where demand notice has been issued
under section 74 of CGST Act, but during the appellate or court proceedings, it is concluded that
charges of fraud or wilful misstatement or suppression of facts to evade tax are not established
against the noticee, and the tax is required to be determined by proper officer under section 73 of
Page 30 of 463
CGST Act as per section 75(2) of CGST Act, the benefit of such waiver of interest and penalty
may be made available in such cases as well. He further stated that the Law Committee has also
recommended that in cases where interest and penalty have already been paid in respect of
any demand/ proceedings for the said financial years, no refund shall be admissible for the same.
To implement the said recommendations for waiver of interest and penalty, the Law Committee
recommended insertion of Section 128A in the CGST Act as detailed in the agenda note.
4.94 He added that in the Officers’ Meeting held on 21.06.2024, State of Andhra Pradesh
raised the issue whether the payment of tax in proposed section 128A also includes payment of
cess, or the same needs to be modified to provide for payment of cess also. It was discussed that
cess, where applicable, is also required to be paid to avail the benefit of the proposed waiver
of interest and penalty. It was also discussed that from the joint reading of the proposed
Section 128A of CGST Act, along with Section 20 of IGST Act and Section 11 of GST
(Compensation to States) Act, it appears that payment of tax under the proposed section 128A
also covers cess. However, Ministry of Law and Justice may be consulted while finalizing the
draft of the proposed section.

4.95 The Hon’ble Member from Haryana suggested including demands pertaining to FY
2020-21 in the waiver, considering the impact of the pandemic.
4.96 The Secretary responded that the demands for FY 2020-21 are not yet finalized, making
it challenging to assess the potential benefits of extending the Amnesty to that period. He proposed
waiting until the finalization of payments and demands for FY 2020-
21. If necessary, the matter can be reconsidered at later stage.
4.97 The Hon’ble Member from Tamil Nadu supported the proposal, highlighting that it
encourages taxpayers to settle their dues, thus enabling the government to realize the full tax
amount. He further suggested that enhancing the IT system to distinguish the demand raised under
section 73 of the CGST Act, 2017, and the payment made towards it in the demand collection
register to study the revenue implications as this data is crucial for accurately assessing
revenue implications. Currently, the amount paid through FORM GST DRC-03 towards the
demands raised is not readily available in MIS reports.
4.98 The Secretary requested the State of Tamil Nadu to submit a formal proposal. Upon
consideration, necessary amendments in the forms may be examined by the Law Committee to
enable to know how much of the demand is being paid through FORM DRC-03. Secretary
also suggested that 31.03.2025 may be notified as the date upto which the the taxpayers may
be required to pay the full due amount of tax demanded to avail the said waiver of interest and
penalty in proposed section 128A.
4.99 The Hon’ble Chairperson then sought opinion from the Members for making the
amendments in respect of law amendments being proposed in their respective Acts till 01.10.2024.
All Members were in agreement with the same.

Decision: The Council agreed with the said recommendations of the Law Committee, along
with the suggestion of the Secretary regarding the date to be notified for payment of due tax
liability.
Page 31 of 463
Agenda Item 3 (viii): Reduction of Government Litigation – fixing monetary limits for filing
appeals or applications by the Department before GSTAT, High Courts and Supreme
Court
4.100 The Pr. Commissioner, GST Policy Wing informed that Section 120 of the CGST Act
allows for setting of monetary limits to regulate appeals by tax authorities. However, no monetary
limits for filing appeals by tax authorities have been specified in GST. To ensure that appeals are
filed by the Department in GST Appellate Tribunal (GSTAT), High Court and Supreme Court
only for significant revenue or important policy matters, it is prudent to prescribe monetary limit
as are also set under Central Excise, Service Tax, Customs and Income Tax Act.
4.101 The matter was deliberated by the Law Committee. The Law Committee recommended
issuance of a circular for providing the following monetary limits for filing appeal by the
Department:

Appellate Forum Monetary Limit (Rs.)
GSTAT 20,00,000/-
High Court 1,00,00,000/-
Supreme Court 2,00,00,000/-

4.102 The Law Committee recommended principles to determine if a case falls within the
specified monetary limits. It also advised that these limits for filing appeals by the department
before GSTAT, High Court, and the Supreme Court should not apply in certain circumstances
as per the Agenda notes. In such cases, the decision to file an appeal should be based on merits,
regardless of the monetary limits.
4.103 The Hon’ble Member from Puducherry suggested to reduce the limit to file appeal in
GSTAT so that second appeal can be filed for cases under Rs 20,00,000/- in such cases where the
first appeal has been decided in favor of the taxpayer.
4.104 The Pr. Commissioner, GST Policy Wing clarified that the proposed monetary limit is
only for the department to file appeal and not taxpayers. He further clarified that proposed Circular
to be issued provides for exclusion of cases from the monetary limit where Acts, Rules, Circulars
or Notifications are challenged or when a recurring issue involves interpretation. Additionally, the
Board (or the Commissioner, in case of States) can order an appeal in the interest of revenue,
regardless of the monetary limit.
4.105 The Hon’ble Member from Tamil Nadu agreed in principle for setting monetary limit for
filing appeals but raised the concern that the proposed monetary limit is on higher side
which may lead to benefit for the taxpayers. He also informed that Tamil Nadu has a separate
litigation policy with monetary limits set at Rs. 1,00,000 for the Tribunal, Rs. 5,00,000 for the
High Court and Rs. 20,00,000 for the Supreme Court. However, in the proposed amendment, the
limit is proposed as Rs. 20,00,000 even for the Tribunal. The Hon’ble Member further
suggested to set the limit at Rs. 5,00,000 for the Tribunal, Rs. 10,00,000 for the High Court and
Rs. 20,00,000 for the Supreme Court.
4.106 The Hon’ble Member from Karnataka agreed with the proposal from Tamil Nadu and
further suggested implementing a lower monetary ceiling for one year, which can be revisited and
potentially relaxed based on experience. He added that otherwise, officers may be constrained in
pursuing matters, requiring approval from higher authorities for every small appeal.
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4.107 The Hon’ble Member from Kerala emphasized the need to eliminate arbitrariness in the
process, echoing concerns raised by the Minister from Tamil Nadu, further highlighting that
numerous cases could arise, especially when amounts are set for Rs. 1,00,00,000/- for High Court
and Rs. 2,00,00,000/- for Supreme Court. Such scenario potentially allows large businesses to
exploit loopholes, leading to arbitrariness.
4.108 The Hon’ble Member from Chhattisgarh agreed with the limits proposed in the agenda
and emphasized that higher limit is necessary to reduce litigation.
4.109 The Hon’ble Member from Maharashtra agreed with the proposal in the agenda and
highlighted the cost of litigation incurred in higher courts i.e. High Court and Supreme Court.
4.110 The Hon’ble Member from Uttarakhand informed that out of 2,00,000 registered traders
in the State, 85% have turnovers up to Rs. 1,00,00,000. He expressed agreement with the
limit proposed by the Hon’ble Member of Tamil Nadu stating that such limits are suitable for
smaller states like theirs.
4.111 The Hon’ble Member from West Bengal agreed with the proposal in the agenda stating
that if the need arises, then the limits may be reviewed.
4.112 The Secretary emphasized the need to reduce litigation highlighting that GST Tribunal is
not yet operational. Meanwhile, the High Courts and the Supreme Court are overwhelmed with
cases, leading to prolonged disputes and uncertainty for taxpayers. Further, the Secretary stated
that most of the States agree with the proposal of Law Committee assuring that if need arise these
limits can be reconsidered in future.
Decision: The Council agreed with the said recommendations of the Law
Committee.
Agenda Item 3(ix): Insertion of new form FORM GSTR-1A for the amendment and
declaring additional details to FORM GSTR-1, for enabling locking of FORM GSTR- 3B
based on liability declared in FORM GSTR-1
4.113 The Pr. Commissioner, GST Policy Wing presented the agenda item regarding the
introduction of a new optional facility by way of FORM GSTR-1A which would allow a taxpayer
to add any particulars of outwards supply of the current tax period missed out in reporting in
FORM GSTR-1 of the current tax period or to amend any particulars already declared in FORM
GSTR-1 of the current tax period, before filing of the return in FORM GSTR-3B of the current tax
period.
4.114 He informed that currently, such amendment can be carried out only in a FORM GSTR-1
of a subsequent tax period. He added that such functionality will facilitate the taxpayers to make
corrections in the liability reported in FORM GSTR-1, before filing of the return in FORM
GSTR-3B, so that the correct liability is auto-populated in FORM GSTR-3B. This will prevent
flagging of the difference in liability in FORM GSTR-1 and FORM GSTR-3B by the system.
4.115 He stated that introduction of new optional FORM GSTR-1A would streamline the filing
of FORM GSTR-3B by auto-populating tax liability from FORM GSTR-1 and would facilitate
locking the liability in FORM GSTR-3B from the liability declared in FORM GSTR-1 (along
with amendments done through FORM GSTR-1A) in future, to minimize manual interference and
unintended errors. These changes would improve the accuracy of tax reporting, reduce
compliance burden and enhance the overall efficiency of the GST return filing process.
Page 33 of 463

4.116 He further informed that the Law Committee recommended in Rules 59, 60 and 88C
of CGST Rules to implement FORM GSTR-1A. Law Committee also recommended consequential
amendments in various other forms and rules, as detailed in the agenda note.
4.117 He added that Law Committee also recommended changes in FORM GSTR-2B on
account of:
i. introduction of a table to provide details (on annual basis) of invoice or debit note
against which ITC is required to be reversed in terms of Rule 37A of CGST Rules;
ii. furnishing the details of section 9(5) supplies in FORM GSTR-1 by E- commerce
operators; and
iii. amendment in advisory/instructions in the FORM GSTR-2B to the effect that negative
credit (on account of amendment of invoice or debit note or due to a credit note) is to
be netted off in respective rows in Table 4(A) of FORM GSTR-3B instead of Table
4(B)(2) of the same.
Decision: The Council agreed with the recommendations of the Law Committee detailed in
the agenda note.
Agenda Item 3(x): Issue of liability of payment of interest under Section 50 of CGST
Act in case of delayed payment of tax, even though the credit is available in Electronic Cash
Ledger (ECL)
4.118 The Pr. Commissioner, GST Policy Wing presented the agenda item regarding the issue
of liability for interest payment under Section 50 of CGST Act in cases of delayed tax
payment, when some balance is available in the Electronic Cash Ledger (ECL). He stated that
references have been received regarding liability to pay interest under section 50 of CGST Act,
2017 in cases where balance is available in the ECL of the taxpayer, but the GSTR-3B return
could not be filed by the due date due to various reasons. He explained that in such cases, the
taxpayers' liability to pay interest arises on delayed filing of the return, as the tax is considered
to be paid only upon filing of the return and debiting the tax due from the ECL or Electronic Credit
Ledger.
4.119 The Pr. Commissioner, GST Policy Wing emphasized that the amount deposited in the
ECL has already been credited to the Government account, regardless of whether it has been
debited through the ledger, or not. He added that demanding interest on such amounts for delayed
filing of return appears unfair and amounts to levying interest on funds already lying with the
Government.
4.120 Law Committee observed that as the amount credited in Electronic Cash Ledger is
already available with the Government, it would be desirable to modify the interest provisions to
provide that interest is not payable in respect of the amount available in the Electronic Cash Ledger
of the taxpayer on the due date of filing return, where GSTR 3B return for a tax period is filed
beyond the due date. Accordingly, Law Committee recommended that rule 88B of CGST Rules,
2017, which provides for the manner for calculation of interest on delayed payment of tax, may
be amended by inserting a proviso to the sub-rule (1) of rule 88B of CGST Rules, 2017 to
provide that in cases of delayed filing of return, any amount which is already available in the
Electronic Cash Ledger on the due date of filing of the said return and which is subsequently
Page 34 of 463
debited from the said ledger along with the return, shall not be included while calculating the
interest under section 50 of the CGST Act.
Decision: The Council agreed with the recommendations of the Law Committee and
proposed amendments in Rule 88B of CGST Rules, 2017 regarding the calculation of interest
on delayed payment of tax in cases where balance is available in the Electronic Cash Ledger.
Agenda Item 3(xi): Reduction in rate of TCS to be collected by the ECOs for supplies being
made through them
4.121 The Pr. Commissioner, GST Policy Wing presented the agenda item regarding the
reduction in the rate of Tax Collected at Source (TCS) to be collected by Electronic Commerce
Operators (ECOs) for supplies made through them.
4.122 He stated that the current TCS rate is 1% (0.5% CGST + 0.5% SGST/ UTGST, or 1%
IGST) of the net value of taxable supplies made through ECOs. He added that the data provided
by GSTN has showed that about 50% of TCS collected was being refunded to the suppliers
due to inability to utilize the cash credited in their Electronic Cash Ledger. This situation
causes working capital constraints for the suppliers and increases the workload of tax officers
processing such refund applications.
4.123 The Pr. Commissioner, GST Policy Wing emphasized that the original intent of TCS
was to ensure tracking and not to withhold significant working capital from the suppliers.
4.124 The Law Committee recommended to reduce the TCS rate from 1% to 0.5% (0.25%
CGST + 0.25% SGST/UTGST, or 0.5% IGST) by amending Notification No. 52/2018-CT dated
20.09.2018, Notification No. 02/2018-IT dated 20.09.2024 and Notification No. 12/2018-UTT
dated 28.09.2018.
Decision: The Council agreed with the recommendations of the Law Committee and
proposed amendments in the relevant notifications.
Agenda Item 3(xii): Clarifications on various issues pertaining to special procedure for
the manufacturers of the specified commodities, like pan masala, tobacco etc.
4.125 The Pr. Commissioner, GST Policy Wing presented the agenda item regarding
clarifications on various issues pertaining to the special procedure for manufacturers of specified
commodities, such as pan masala, tobacco, etc., as per Notification No. 04/2024-Central Tax
dated 05.01.2024. He informed that a special procedure has been notified by the Government,
based on the recommendations of the Council, vide Notification No. 30/2023-Central Tax dated
31.07.2023, superseded by Notification No. 04/2024-Central Tax dated 05.01.2024, read with
Notification No. 08/2024-CT dated 10.04.2024, to be followed by the manufacturers of the
goods mentioned in the Schedule to the said notification, including pan masala, chewing
tobacco, gutkha, etc. with effect from 15.05.2024. The said special procedure requires the
taxpayer to file two FORMs, viz. one, for registration and disposal of the machines i.e. FORM
SRM-I and the second, for filing monthly details of inputs and outputs i.e. FORM SRM-II.
Representations have been received from trade and industry requesting for clarification about
various issues pertaining to the said special procedure.

4.126 He further stated that the Law Committee felt that certain issues raised by industry in
representations need to be clarified through a Circular. The Law Committee recommended
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issuance of a Circular for inter alia clarifying the following:
a. If the make, model number and machine number is not available for a particular
machine, then any numeric number can be declared for the said machine as machine
number and make will be the year of purchase of the machine.
b. In cases where the electricity consumption rating of the packing machine is not
available in specifications of the machine, then the manufacturer may get such
electricity consumption per hour of the said machine calculated through a Chartered
Engineer and get the same certified by the said Chartered Engineer.
c. In case of goods having no MRP, then the sale price of the goods so manufactured may
be entered in FORM GST SRM-II.
d. The said special procedure is not applicable to the manufacturing units located in
Special Economic Zone.
e. The said special procedure is not applicable in respect of manual seamer/ sealer being
used for packing operations.
f. The said special procedure shall be applicable to all persons involved in manufacturing
process including a job worker / contract manufacturer. However, 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.
Decision: The Council agreed with the recommendations of the Law Committee regarding
the issuance of the Circular for clarifying various issues pertaining to the special
procedure for manufacturers of specified commodities, as per Notification No. 04/2024-
Central Tax dated 05.01.2024.
Agenda Item 3(xiii): 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 of goods to
unregistered persons.
4.127 The Pr. Commissioner, GST Policy Wing presented the agenda item regarding
clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service
Tax Act, 2017 (IGST Act) relating to the place of supply of goods to the unregistered persons.
4.128 He informed the Council that references have been received from trade and industry
seeking clarification regarding the place of supply in terms of newly added clause (ca) of
section 10(1) of the IGST Act, in case of supply of goods made to an unregistered person where
the billing address is different from the address of delivery of goods, especially in the context of
supply being made through e-commerce platforms.
4.129 He further informed that the Law Committee recommended issuance of a circular
clarifying that in cases involving supply of goods to unregistered persons, 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 clause (ca) of sub-section (1) of section 10 of IGST Act, shall be the address
of delivery of goods recorded on the invoice. Besides, where the billing address and delivery
address are different in cases of supply of goods to an unregistered person, 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.
Page 36 of 463
4.130 The Pr. Commissioner, GST Policy Wing, presented the draft circular, as
recommended by the Law Committee, for the approval of the GST Council.
Decision: The Council agreed with the recommendations of the Law Committee for issuance
of the proposed circular clarifying the provisions of clause (ca) of Section 10(1) of the
Integrated Goods and Service Tax Act, 2017 relating to the place of supply of goods to
unregistered persons.

Agenda Item 3(xiv): Providing a mechanism for adjustment of payments made through
FORM DRC-03, in respect of a demand against pre-deposit as well as for adjustment of
liability in Electronic Liability Register (Amendment in Rule 142 of CGST Rules, 2017 along
with clarification circular).
4.131 The Principal Commissioner, GST Policy Wing mentioned that when a taxpayer makes a
payment vide FORM GST DRC-03, in respect of an amount to be paid against a demand, either
voluntarily or on persuasion of the tax authorities, currently, there is no mechanism to adjust the
payment so made through DRC-03 against the payment to be made towards a particular demand.
This is causing difficulty to the taxpayers to pay the amounts required to be paid as pre-deposit for
filing appeals, as well. There may be a need to provide for a functionality for adjustment of the
said amount paid for a demand through DRC-03 against the amount to be paid as pre-deposit for
filing appeal or for adjustment of liability created by a demand in Electronic Liability Register.
He added that a need has also been felt for conclusion of proceedings initiated vide FORM GST
DRC- 01A, in cases where the reply or the payment or both submitted by the taxpayer is found
satisfactory by the proper officer. Further, it has also been felt that FORM DRC-03 may be
auto-acknowledged on the system.
4.132 The Law Committee deliberated on these issues and recommended the following:
a. For processing such cases, where the payment to be made in respect of a demand has
been paid through FORM GST DRC-03, a new form FORM GST DRC-03A may
be inserted in CGST Rules, which will enable the taxpayers to adjust the amounts
paid through FORM GST DRC-03, towards the amounts to be paid towards a demand.
b. Some amendments may be made in FORM GST DRC-03.
c. A circular may be issued to clarify the mechanism for adjustment of payments made
through FORM DRC-03 in respect of a demand, against pre-deposit as well as for
adjustment of liability in Electronic Liability Register.
d. Amendment in Rule 142 of CGST Rules for the above as well as to provide for auto-
acknowledgement of FORM GST DRC-03 on the common portal, and for conclusion of
proceedings initiated vide FORM GST DRC-01A, in cases where the reply or the
payment or both submitted by the taxpayer is found satisfactory by the proper officer.
4.133 The Pr. Commissioner, GST Policy Wing, informed that in the Officers’ meeting held on
21.06.2024, the officer from Kerala requested to separately examine the possibility of auto-
acknowledgement of FORM DRC -03 for the past periods also.
Decision: The Council agreed with the recommendations of the Law Committee and
approved proposed amendments in Rule 142 of CGST Rules, FORM GST DRC- 03, FORM
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GST DRC-04, along with insertion of FORM GST DRC-03A, and also issuance of the
proposed draft Circular.
Agenda Item 3(xv): Clarification on valuation of supply of import of services by a related
person where recipient is eligible to full input tax credit
4.134 The Pr. Commissioner, GST Policy Wing informed that representations have been
received from the trade stating that demands are being raised by field formations on taxability
of certain activities undertaken by the related person based outside India, without any
consideration, in the hand of the related person in India as import of services based on the
deeming fiction in S. No. 4 of Schedule I of CGST Act, 2017. It has ben requested that the
same treatment, which is being given to domestic related parties as per clarification provided by
Circular No. 199/11/2023-GST dated 17.07.2023, may also be provided in all such cases where a
foreign entity is providing service to its related party located in India and where full ITC is
available to the recipient located in India.
4.135 He informed that the matter was deliberated by the Law Committee and the Law
Committee recommended that it may be clarified through a Circular that in cases where the
foreign affiliate is providing certain services to the related domestic entity, for which full input
tax credit is available to the said related domestic entity, the value of such supply of services
declared in the invoice by the said related domestic entity may be deemed as open market value in
terms of second proviso to rule 28(1) of CGST Rules. The Law Committee also recommended
to further clarify that in cases where full input tax credit is available to the recipient, if the
invoice is not issued by the related domestic entity with respect to any service provided by the
foreign affiliate to it, the value of such services may be deemed to be declared as Nil, and may
be deemed as open market value in terms of second proviso to rule 28(1) of CGST Rules.
Decision: The Council agreed with the said recommendations of the Law Committee along
with the draft circular.
Agenda Item 3(xvi): Clarification regarding applicability of provisions of Section 16(4) of
CGST Act, 2017, in respect of invoices issued by the recipient under RCM.
4.136 The Pr. Commissioner, GST Policy Wing informed that representations have been
received from trade and industry seeking clarity on the applicability of time limit specified under
section 16(4) of Central Goods & Services Tax Act, 2017 for the purpose of availment of input tax
credit (ITC) by the recipient on the tax paid by him under reverse charge mechanism (RCM) in
respect of supplies received from unregistered persons. He mentioned that doubts are being raised
as to whether the relevant financial year to which invoice pertains, for the purpose of section
16(4) of CGST Act, is the year in which the said supply was received or the year in which the
invoice for the said RCM supply has been issued by the recipient.
4.137 The matter was deliberated by the Law Committee and the Law Committee
recommended to clarify through a circular that in cases of supplies received from unregistered
suppliers, where tax has to be paid by the recipient under reverse charge mechanism (RCM) and
where invoice is to be issued by the recipient of the supplies in accordance with section 31(3)(f)
of CGST Act, the relevant financial year for calculation of time limit for availment of input
tax credit under the provisions of section 16(4) of CGST Act will be the financial year in which
the invoice has been issued by the recipient under section 31(3)(f) of CGST Act, subject to
payment of tax on the said supply by the recipient and fulfilment of other conditions and
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restrictions of section 16 and 17 of CGST Act. In case, the recipient issues the invoice after the
time of supply of the said supply and pays tax accordingly, he will be required to pay interest on
such delayed payment of tax. Further, in cases of such delayed issuance of invoice by the
recipient, he may also be liable to penal action under the provisions of Section 122 of the CGST
Act.
Decision: The Council agreed with the said recommendations of the Law Committee along
with the draft circular.
Agenda Item 3(xvii): Clarification in case of taxability of corporate guarantee provided
between related persons after insertion of Rule 28(2) of CGST Rules, 2017
4.138 The Pr. Commissioner, GST Policy Wing informed that on the recommendations of 52nd
GST Council Meeting, sub-rule (2) was inserted in rule 28 of CGST Rules, 2017 vide Notification
No. 52/2023-Central Tax dated 26.10.2023 to provide for a specific clause for valuation of
supply of services of providing corporate guarantee to any banking company or financial
institution by an entity on behalf of a related person. Further, Circular No. 204/16/2023-GST
dated 27.10.2023 was issued to provide clarity regarding applicability of the said sub-rule.
4.139 However, trade has requested for amendments in the said sub-rule (2) of Rule 28 of CGST
Rules, 2017, and has also sought clarifications on the issue of taxability and valuation of the supply
of services of providing corporate guarantee between related persons.
4.140 The said issue was deliberated by the Law Committee and the Law Committee
recommended retrospective amendment in sub-rule (2) of Rule 28 of CGST Rules, 2017 with
effect from 26.10.2023 to clearly provide that the deemed valuation created by the said rule, i.e.,
one per cent of the amount guaranteed, shall be applicable per annum, to exempt export of services
of corporate guarantee from the said rule and to clarify that deemed valuation under rule 28(2)
would not be applicable in cases where the recipient is eligible for full input tax credit.
4.141 The Law Committee also recommended to issue a circular to clarify other issues involving
the taxability and valuation of services of providing corporate guarantee between related persons.
Decision: The Council agreed with the said recommendations of the Law Committee along
with the draft circular.
Agenda Item 3(xviii): Clarification on mechanism for providing evidence of compliance of
conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 in respect of post-sale discounts by
the suppliers
4.142 The Pr. Commissioner, GST Policy Wing informed that in cases where a discount is
given by the supplier to the recipient, subsequent to the supply of goods or services or both (post-
sale discount), by issuing a tax credit note under section 34 of the Central Goods And Services Tax
Act, 2017, the taxable value of the said supply can be reduced by the supplier to the extent of
discount as per Section 15(3)(b) of the CGST Act only if the recipient of supply has
proportionately reversed the input tax credit (ITC) in respect of the said discount. However, no
system functionality is presently available on the common portal to enable the supplier or the tax
officers to verify electronically whether the recipient has reversed the proportionate ITC in respect
of such discount or not. Also, no alternate mechanism has been provided in CGST Act or CGST
Rules or otherwise to enable the supplier as well as the tax officers to verify such reversal of input
tax credit by the recipient. In absence of such functionality or any other mechanism to verify such
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reversal of input tax credit by the recipient, demands are being raised by the field formations on the
suppliers alleging that they have failed to produce evidence of compliance of Section 15(3)(b)(ii)
of CGST Act. Representations have been received from trade and industry to provide for a
suitable mechanism for providing evidence of the compliance of he conditions of Section
15(3)(b)(ii) of CGST Act.

4.143 He added that in view of the above, there is a requirement to develop a functionality on
the common portal by GSTN for enabling verification of such reversal of ITC by the recipients.
One of the mechanism can be provided for acceptance/ rejection of such credit notes by the
recipients on the portal. The tax liability of the supplier may be reduced only in those cases,
where such credit notes have been accepted by the recipients, and in such cases, input tax credit
of the recipient may be reduced/ reversed in hard lock manner on the portal in FORM GSTR-3B
return. Alternate functionality/ mechanism could also be explored by the GSTN on the portal for
enabling verification of such reversal of ITC by the recipients.

4.144 The Law Committee recommended that it may be clarified through a circular that till the
time such functionality for verification is made available by GSTN on the common portal, the
supplier in order to provide evidence in terms of section 15(3)(b)(ii) of CGST Act may procure
a certificate from the recipient of supply, issued by the Chartered Accountant (CA) or the Cost
Accountant (CMA), certifying that the recipient has made the required proportionate reversal of
input tax credit at his end in respect of such credit note issued by the supplier. The said CA/CMA
certificate may include details such as the details of the credit notes, the details of the relevant
invoice number against which the said credit note has been issued, the amount of ITC reversal
in respect of each of the said credit notes along with the details of the FORM GST DRC -03/
return / any other relevant document through which such reversal of ITC has been made by the
recipient. Such certificate issued by CA or CMA shall also contain UDIN (Unique Document
Identification Number). Further, in cases, where the amount of tax (CGST+SGST+IGST and
including compensation cess, if any) involved in the discount given by the supplier to a recipient
through tax credit notes in a Financial Year is not exceeding Rs 5,00,000 (rupees five lakhs only),
then instead of CA/CMA certificate, the said supplier may procure an undertaking/ certificate
from the said recipient that the said input tax credit attributable to such discount has been reversed
by him, along with the desired details.
4.145 Law Committee recommended that such certificates issued by CA/CMA or the
undertakings/ certificates issued by the recipient of supply, as the case may be, may be treated as
a suitable and admissible evidence for the purpose of section 15(3)(b)(ii) of the CGST Act,
2017 and could be produced before the tax officers during any proceedings such as
scrutiny, audit, investigations, etc., even for the past period.
Decision: The Council agreed with the recommendations of the Law Committee along
with draft circular.
Agenda Item 3(xix): Court matter regarding extending amnesty scheme for filing of appeals in
respect of cases under Section 129 and 130 of CGST Act.
4.146 The Pr. Commissioner, GST Policy Wing informed that the GST Council in its 52nd
meeting recommended a one-time relief to taxpayers for filing of appeals against demand orders
passed till specified period i.e., orders passed up to 31.3.2023, subject to the condition of payment
of an amount of pre-deposit of 12.5% of the tax under dispute by the said person. This scheme
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was implemented through Notification No. 53/2023-CT dated 02.11.2023, which allowed filing of
appeals until 31.01.2024, for those taxpayers who could not file appeals against demand order
issued under section 73 and 74 of CGST Act upto 31.03.2023 in due time period. However,
Hon'ble High Court, Allahabad in the case of M/s Risansi Industries Ltd. (No. 275 of 2021) has
directed the Government to consider inclusion of section 129 and section 130 of CGST Act in the
said notification.
4.147 He informed that Law Committee deliberated on the issue and was of the view that said
amnesty scheme was considered by the Council only in respect of orders passed under
Sections 73 and 74 of the CGST Act, on the basis that a number of such orders under Sections 73
and 74 were issued online on the common portal, without any physical serving to the taxpayers and
in a large number of such cases, the common portal was not accessed by the taxpayers. Hence,
taxpayers were not aware of the notices/ orders issued to them through the common portal.
Accordingly, a one-time opportunity was recommended by the Council to provide relief to the
taxpayers to file appeal in such cases. However, the Law Committee felt that this rationale would
not be applicable to orders passed under Sections 129 and 130 of the CGST Act, 2017, as
those orders were relating to confiscation/ seizure of goods and conveyances in transit, and
essentially the taxpayers would have had the knowledge of such orders being passed.
Therefore, Law Committee recommended that there is no need to extend the scope of the amnesty
scheme notified vide Notification No 53/2023-Central Tax dated 02.11.2023, to include orders
passed under Sections 129 and 130 of the CGST Act.
Decision: The Council agreed with the recommendations of the Law Committee.
Agenda Item 3(xx): Amendment in Rules 110 and 111 of the CGST Rules, 2017 pertaining to
filing and processing of appeals in GST Appellate Tribunal.
4.148 The Pr. Commissioner, GST Policy Wing informed that the operationalization of GST
Appellate Tribunal (GSTAT) is under process and the system based functionality for the GST
Appellate Tribunal [e-Tribunal for GST] is being developed by the GSTN. Every appeal (or
application) before the Appellate Tribunal would be required to be filed electronically on the
system for Appellate Tribunal giving reference number of the order appealed against. The existing
provisions of filing of appeal “electronically or otherwise as may be notified by the Registrar”
before the Appellate Tribunal or the requirement of submission of a certified copy of the order by
the appellant to vouch for its authenticity in accordance with the existing rule 110 and rule 111 of
CGST Rules do not seem to be in alignment with the system being developed. Further, there is no
provision currently for withdrawal of appeal filed before the Tribunal.

4.149 The said issue was deliberated by the Law Committee and the Law Committee
recommended to substitute rule 110 and rule 111 of CGST Rules to align the same with the
system being developed for filing and processing of appeals before the Tribunal. Law
Committee also recommended to insert rule 113A and FORM GST APL-05/07W to provide for
option to withdraw appeal filed before the Tribunal. Consequential amendment in header of
FORM GST APL-02 is also required to be made.
4.150 He further informed that during the Officers’ meeting held on 21.06.2024, a suggestion
was made that in cases where appeals are filed manually on the special orders of Registrar of
Tribunal, such appeals should be uploaded on the system within a reasonable time period. For such
cases, Circular/ rule may also be required in order to specify a time limit to upload the manually
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filed appeals so as to make entire process online. It was suggested that Law Committee may
separately examine this matter.
Decision: The Council agreed with the recommendations of the Law Committee, along with
proposed amendment in Rule 110 and Rule 111 of CGST Rules, 2017, amendment in header
of FORM GST APL-02 and insertion of new Rule 113A and Form GST APL-05/07W, along
with the suggestions made in the Officers’ meeting.

Agenda Item 3(xxi): Clarification on taxability of re-imbursement of securities/shares as
ESOP/ESPP/RSU provided by a company to its employees
4.151 The Pr. Commissioner, GST Policy Wing informed that trade and industry have
represented to clarify as to whether any taxable supply is involved in transfer of securities/
shares by the foreign holding company to the employees of domestic subsidiary company in
cases where such securities/shares of foreign holding company are provided to an employee of
Indian subsidiary company as part of terms of contract of employment as Employee Stock
Option Plan (ESOP) or Employee Stock Purchase Plan (ESPP) or Restricted Stock Unit (RSU). It
has been requested to clarify specifically, as to whether the transfer of securities/shares from
foreign holding company to the employees of domestic subsidiary company can be considered as
import of services by domestic subsidiary company from the foreign holding company in the
course or furtherance of business or otherwise.
4.152 He explained that as per the definition of supply under GST Act, securities are neither
classified as supply of goods nor as supply of services, and as per Schedule III of CGST Act, 2017,
the services by an employee to the employer in the course of or in relation to his employment is
neither supply of goods nor supply of services under GST. However, since the obligation of
providing securities as per the employment contract rests with the domestic subsidiary company,
which in turn is fulfilled by the foreign holding company, the said transaction is being considered
by some tax officers as import of financial service by the domestic subsidiary company from the
foreign holding company, and is being considered as liable to be charged under GST on RCM
basis, as per entry 4 of Schedule I of CGST Act.
4.153 The Law Committee deliberated on the issue and observed that no supply of service
appears to be taking place between a foreign holding company and the domestic subsidiary
company where the foreign holding company issues ESOP/ESPP/RSU to the employees of
domestic subsidiary company, and the domestic subsidiary company reimburses the cost of such
securities/shares to the foreign holding company on cost-to- cost basis. However, in cases where
an additional fee, markup, or commission, is charged by the foreign holding company from
the domestic subsidiary company, over and above the cost of the securities/shares, GST would be
leviable on such amount of additional fee, markup, or commission charged as consideration for
the supply of services of facilitating/ arranging the transaction in securities/ shares by the foreign
holding company to the domestic subsidiary company. The GST shall be payable by the domestic
subsidiary company on reverse charge basis in such a case on the said import of services. The
Law Committee recommended to clarify the same through a Circular.
Decision: The Council agreed with the recommendations of the Law Committee along with
draft Circular.
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Agenda Item 3 (xxii): Clarification on requirement of reversal of ITC in respect of balance of
taxable premium in cases of Life Insurance services after applying valuation rule.
4.154 The Pr. Commissioner, GST Policy Wing informed that representation has been received
from Life Insurance Corporation of India seeking clarity as to whether the portion of the
premium charged by the insurance company from the insured person/ policy holder, which is
not included in the taxable value as per sub-rule (4) of Rule 32 of CGST Rules, 2017, can be
treated as an exempt supply/ non-taxable supply and whether the input tax credit availed in
respect of the said amount is required to be reversed or not.
4.155 He mentioned that the portion of premium, which is not includible in taxable value as per
provisions of Rule 32(4) of CGST Rules, 2017, is neither nil rated, nor wholly exempted from tax
under section 11 of CGST Act, 2017 and also is not a non-taxable supply.
4.156 Accordingly, Law Committee recommended to clarify that the portion of premium which
is not includible in taxable value of supply as per Rule 32(4) of CGST Rules, 2017 cannot be
considered as pertaining to non-business purpose or pertaining to exempt supply and therefore,
there is no requirement of reversal of credit in respect of the said amount not includible in the
taxable value as per provisions of Rule 42/43 of CGST Rules, 2017 read with sub-section (1)
and sub-section (2) of Section 17 of CGST Act, 2017.
Decision: The Council agreed with the recommendations of the Law Committee, along with
the draft circular.
Agenda Item 3(xxiii): Clarification on the taxability of wreck and salvage values in motor
insurance claims.
4.157 The Pr. Commissioner, GST Policy Wing informed that representations have been
received from the General Insurance Industry seeking clarity on the applicability of GST on
salvage/ wreck value earmarked in the claim assessment of the damage caused to the motor
vehicle.
4.158 The Law Committee recommended that in cases, where due to the conditions mentioned
in the contract itself, general insurance companies are deducting the value of salvage as
compulsory deductibles from the claim amount, there the salvage remains the property of
insured and insurance companies are not liable to discharge GST liability against the same.
However, in cases, where the insurance claim is settled on full claim amount, without deduction
of value of salvage/ wreck (as per the contract), the salvage becomes the property of insurance
company and the insurance company will be obligated to discharge GST on salvage’s outward
supply to the salvage buyer. Law Committee also recommended that the treatment of salvage and
its taxability in various situations may be clarified by issuing a circular.
Decision: The Council agreed with the recommendations of the Law Committee, along with
the draft circular.
Agenda Item 3(xxiv): Clarification in respect of Extended Warranty provided by
Manufacturers to the end customers in view of Circular No. 195/07/2023-GST dated
17.07.2023.
4.159 Pr. Commissioner, GST Policy Wing informed that Circular No. 195/07/2023-GST
dated 17.07.2023 was issued to clarify certain issues regarding availability of ITC in respect of
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warranty replacement of parts and repair services during warranty period. However, subsequent to
the issuance of the said Circular, queries have been raised by trade and Industry on some other
issues.
4.160 The said issues were deliberated by the Law Committee and the Law Committee
recommended to clarify through a Circular that:
a. Clarification in Circular No. 195/07/2023-GST regarding the liability to pay GST and
liability to reverse ITC also applies in cases involving warranty replacement of 'entire
goods' (i.e. where goods as such are replaced).
b. In cases where the distributor replaces the goods or its parts to the customer under
warranty by using his stock and then raises a requisition to the manufacturer for the
goods or the parts, which are then provided by the manufacturer to the distributor, without
separately charging any consideration, no GST is payable on such replenishment of
goods or the parts and no reversal of ITC is required to be made by the manufacturer.
c. If the customer enters into an agreement of extended warranty with the supplier of the goods
at the time of original supply, then the consideration for such extended warranty becomes
part of the value of the composite supply, the principal supply being the supply of
goods, and GST would be payable accordingly. However, if the supply of extended
warranty is made by a person different from the supplier of the goods, then supply of
extended warranty will be treated as a separate supply from the original supply of goods
and will be taxable as supply of services.
d. In case where a consumer enters into an agreement of extended warranty at any time after
the original supply, then the same shall be treated as a supply of services distinct from the
original supply of goods and the supplier of the said extended warranty shall be liable to
discharge GST liability applicable on such supply of services.


Decision: The Council agreed with the recommendations of the Law Committee, along with
the draft circular.
Agenda Item 3(xxv): Clarification regarding ITC entitlement on repair expenses incurred in
case of reimbursement mode of claim settlement.
4.161 The Pr. Commissioner, GST Policy Wing, informed that the insurance companies,
which are engaged in providing general insurance services in respect of insurance of motor
vehicles, insure the cost of repairs/ damages of motor vehicles incurred by the policyholders
and settle the claims in two modes viz. Cashless or Reimbursement. Representations have been
received seeking clarity on availability of input tax credit (ITC) in respect of expenses incurred
on repair of motor vehicles in case of reimbursement mode of insurance claim settlement, as
some field formations are raising demands on availment of ITC by insurance companies in respect
of invoices for repair services provided by garages. It is being claimed by these field formations
that in case of reimbursement mode of claim settlement, the supply of repair service is
provided by the garage to the policyholder/ insured and not to the insurance company and
therefore, ITC of repair services is not available to the insurance company.
4.162 The Law Committee deliberated on the issue and observed that the expenditure, which is
incurred in repair of the vehicle, is integrally connected to the provision of insurance services. Such
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costs incurred as repair are, therefore, input services to the insurance companies used in the
course and furtherance of their business. A mere change in the mode of claim settlement i.e.,
reimbursement over cashless settlement cannot alter the underlying nature of transaction. Thus, in
both cashless mode as well as reimbursement mode, insurance company is the “recipient” of the
services of vehicle repair provided by the garage, to the extent of approved repair liability.
However, there may be cases, where the invoice also includes an amount in excess of the
approved repair liability, wherein the insurance company only pays or reimburses the approved
repair liability to the garage after considering the standard deductions viz. the compulsory
deductibles to be borne by the insured, depreciation, improvements outside the coverage, value of
salvage of the damaged parts of the motor vehicles, etc. The remaining amount is to be paid by the
insured to the garage. In such cases, the input tax credit may be available to the insurance company
only to the extent of payment made by them to the garage directly, or through reimbursement to the
insured, and not on the full invoice value. Also, in cases, where the invoice for the repair of the
vehicle is not issued in name of the insurance company, the condition of clause (a) and (aa) of
section 16(2) of CGST Act, 2017 may not be satisfied and accordingly, input tax credit may not be
available to the insurance company in respect of such an invoice.
4.163 The Law Committee recommended to clarify the issue through a Circular.
Decision: The Council agreed with the recommendations of the Law Committee, along with
the draft circular.
Agenda Item 3(xxvi): Clarification regarding taxability of the transaction of providing loan
by an overseas affiliate to its related Indian affiliate or by a person in India to a related
person.
4.164 The Pr. Commissioner, GST Policy Wing informed that representations have been
received from trade and industry seeking clarity on the taxability and valuation of the services
of processing/ administering/ facilitating the loan provided by a person to a related person or by an
overseas affiliate to its related person in India, even when made without consideration, by deeming
the same as supply as per S. No. 2 and S. No. 4 of Schedule I of CGST Act.
4.165 He mentioned that the Law Committee deliberated on the matter and observed that in
the cases, where no consideration is charged by a person from a related person, or by an overseas
affiliate from its related Indian entity, for extending loan or credit, other than by the way of
interest or discount, it cannot be said that any supply of service is being provided between the
said related persons in form of processing/ facilitating/ administering the loan, by deeming the
same as supply of services as per clause (c) of sub-section (1) of section 7 of the CGST Act, 2017,
read with S. No. 2 and S. No. 4 of Schedule I of CGST Act. Therefore, there is no question of levy
of GST on the same by resorting to open market value for valuation of the same as per rule 28 of
CGST Rules, 2017. However, in cases of loans provided between related parties, wherever any fee
in the nature of processing fee/ administrative charges/ service fee/ loan granting charges etc.
is charged, over and above the amount charged by the way of interest or discount, the same
may be considered to be the consideration for the supply of services of supply of services of
processing/ facilitating/ administering of the loan, which will be liable to GST as supply of
services by the lender to the related person availing the loan.
4.166 The Law Committee recommended to clarify the issue through a Circular.
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Decision: The Council agreed with the recommendations of the Law Committee, along
with the draft circular.
Agenda Item 3(xxvii): – Clarification on availability of input tax credit on ducts and
manholes used in network of optical fibre cables (OFCs).
4.167 The Pr. Commissioner, GST Policy Wing stated that input tax credit (ITC) is being
denied by some field formations on ducts and manholes used in network of optical fiber cables
(OFCs) on the ground that the same is blocked under provisions of clause (c) and (d) of sub-
section (5) of section 17 of the CGST Act, 2017, read with the Explanation after clause (d) of sub-
section (5) of section 17 of CGST Act, being in nature of immovable property (other than Plant
and Machinery). Representations have been received seeking clarification on the issue.
4.168 He further stated that if the goods or services or both are used for construction of
immovable property, input tax credit is not restricted, if the said immovable property is in nature of
plant and machinery as per Explanation at the end of section 17 of CGST Act.
4.169 The Law Committee deliberated on the issue and observed that the ducts and manholes
are fundamental components of the Optical Fiber Cable (OFC) network, which is crucial for
providing telecommunication services. The OFC network is constructed using PVC
ducts/sheaths that house the OFCs, and service/connectivity manholes that function as network
nodes essential for cable laying, upkeep, and maintenance. These components, used in the OFC
network for transmitting telecommunication signals, fall under the definition of "plant and
machinery" according to the Explanation to section 17 of the CGST Act. They are not explicitly
excluded from the definition of "plant and machinery", as they are neither land, buildings, civil
structures, nor telecommunication towers or external pipelines. Consequently, the input tax credit
for these ducts and manholes is not restricted under clauses (c) or (d) of sub-section (5) of section
17 of the CGST Act. The Law Committee, accordingly, recommended to clarify the issue
through a Circular.
Decision: The Council agreed with the recommendations of the Law Committee along with
the proposed Circular.
Agenda Item 3(xxviii): Clarification on place of supply of custodial services provided
by banks to Foreign Portfolio Investors.

4.170 The Pr. Commissioner, GST Policy Wing stated that clarification is being sought
regarding the Place of Supply (PoS) for custodial services provided by banks to Foreign Portfolio
Investors (FPIs) as to whether it should be covered under Section 13(2) of the IGST Act, 2017,
which specify location of the recipient as place of supply or whether the same should be covered
under Section 13(8)(a) of the IGST Act, 2017, which specifies the location of the service
provider (banks or financial institutions) as place of supply.

4.171 He further stated that all FPIs are statutorily obligated to appoint a local custodian i.e.
Banks to manage transactions in 'securities' that are undertaken in India as per the Securities and
Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019. He also mentioned that
‘Custodial Services’ in relation to securities means safekeeping of securities of a client and
providing services incidental thereto, and includes maintaining accounts of securities of a
client, collecting the benefits or rights accruing to the client in respect of securities, keeping
the client informed of the actions taken or to be taken by the issuer of securities having a
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bearing on the benefits or rights accruing to the client, and maintaining and reconciling records of
the services referred above. As per section 13(8) of IGST Act, 2017, the place of supply of the
services provided by banks or financial institutions etc. to its account holders in relation to
account bearing interest to the depositor, would be the location of the bank. In all other
services provided by banks to its customers (other than holders of interest-bearing accounts),
place of supply would be governed by the default provision under section 13(2) of IGST Act, i.e.
the location of recipient.
4.172 He added that the matter was deliberated by the Law Committee. The Law Committee
observed that the custodial services were not considered to be covered under the services
provided by bank to account holders, as per the clarification provided through Question 5.9.4 of
Education Guide under the Service Tax Law. As the provisions of section 13(8)(a) of the IGST
Act are similar to the provisions of Rule 9(a) of the Service Tax Place of Provision of Supply
Rules, 2012, the clarification given in the Education Guide under Service Tax regime is equally
applicable under GST Regime. Law Committee, therefore observed that the custodial services
being provided by the banks/financial institutions to the FPIs cannot be considered as the services
provided by the banks/financial institutions to account holders and thus, cannot be covered under
Section 13(8)(a) of the IGST Act, 2017. Accordingly, the Place of Supply of such services
cannot be determined under Section13(8)(a) of the IGST Act, 2017 but is required to be
determined under the default provision i.e., sub-section (2) of section 13 of the IGST Act, 2017.
The Law Committee recommended to clarify the same through a Circular.
Decision: The Council agreed with the recommendations of the Law Committee along with
the proposed Circular.
Agenda Item 3(xxix): Clarification on time of supply in respect of supply of services of
construction of road and maintenance thereof of National Highway Projects of National
Highways Authority of India (NHAI) in Hybrid Annuity Mode (HAM) model.
4.173 The Pr. Commissioner, GST Policy Wing took up the next agenda to clarify the time of
supply in respect of supply of services of construction of road and maintenance thereof of
National Highway Projects in Hybrid Annuity Mode (HAM) model, where certain portion of
Bid Project Cost is received during construction period and remaining payment is received through
deferred payment (annuity) spread over years. Under this model, the government is required to
finance only 40% of the construction cost during the construction phase, whereas the remaining
60% is arranged by the private player/concessionaire. The remaining 60% amount is paid by the
government to the concessionaire in form of annuity/instalments along with interest over a
period specified in the contract. Ministry of Road Transport & Highways has represented that the
said supply of services under HAM contract are covered under the ‘Continuous supply of services’
as defined under section 2(33) of the CGST Act, 2017. It has also been submitted by them that
the liability to raise invoice in respect of the said services arises as per clause (a) of Section
31(5) of CGST Act, 2017 on or before the due date of payment as mentioned in the contract
agreement, and the time of supply should be the date of issue of invoice, or date of receipt of
payment, whichever is earlier, as per Section 13(2) of CGST Act, 2017. They have, therefore,
contended that the liability to pay GST in respect of the said services will arise at the time of
issuance of invoice, or on receipt of payment, whichever is earlier, as per the terms of the contract.

4.174 Law Committee in its meeting dated 09.02.2024 deliberated on the issue. The Law
Committee observed that under the HAM contract, the contract is a single contract for construction
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as well as operation and maintenance of the highway, and the payment terms are so staggered that
the concessionaire is held accountable for the repair and maintenance of the highway as well. The
concessionaire is bound contractually to complete not only the construction of the highway but
also to operate and maintain the same. The said services are in nature of continuous supply of
services. The tax liability on the construction portion under the HAM contract would arise at the
time of issuance of invoice, or receipt of payments, whichever is earlier, if the invoice is issued on
or before the specified date or the date of completion of the event specified in the contract, as
applicable. If invoices are not issued on or before the specified date or the date of completion of the
event specified in the contract, tax liability would arise on the date of provision of the said service
(i.e. due date of payment as per the contract), or the date of receipt of the payment, whichever is
earlier. The Law Committee recommended to clarify the same by issuing a circular.

Decision: The Council agreed with the recommendations of the Law Committee along with
the proposed Circular.
Agenda Item 3(xxx): Refund of additional Integrated Tax (IGST) paid on account of upward
revision in price of the goods subsequent to export of such goods.

4.175 The Pr. Commissioner, GST Policy Wing stated that representations have been received
from the trade/ industry requesting for prescribing a mechanism for seeking refund of additional
Integrated Goods & Services Tax (IGST) paid on account of upward revision in price of the goods
subsequent to exports, along with applicable interest, especially in cases where the prices of the
export commodities are linked to some international index or as per the terms of contract between
the two parties or due to any other reason, which may result in revision in the price of the
goods subsequent to exports.
4.176 He informed that refund of IGST paid on export of goods is through an automated route
through Customs system, as Shipping Bill itself is treated as refund claim. There is no mechanism
at present for refund of such additional IGST paid post export of goods.
4.177 The Law Committee deliberated on the issue. Law Committee recommended the insertion
of sub-rule (1B) in rule 89 of CGST Rules, along with corresponding amendment in sub-rule
(1) of rule 96, to provide for filing of refund of additional IGST paid on account of upward
revision in price of the goods subsequent to export through FORM RFD-01 and its processing by
jurisdictional GST officers. Law Committee also recommended for insertion of clause (bb) and
clause (bc) in sub-rule (2) of rule 89 of CGST Rules, and corresponding insertion of Statement 9A
and Statement 9B in FORM GST RFD 01, to prescribe documents required to be accompanied
with the said refund claim in order to establish that refund is due to the exporter. Further, it
was recommended that a circular may be issue to clarify the procedure for such refunds and
processing thereof by the proper GST officer inter alia providing for verification of such refund
claims to check whether the exporter has deposited the excess refund amount in the cases where
there is a downward revision in price of goods subsequent to exports.

Decision: The Council agreed with the recommendations of the Law Committee to amend the
rules along with the proposed Forms and Circulars.
Agenda Item 3(xxxi): Implementation of functionality for online filing of refund
application by Canteen Stores Department (CSD) in GST-RFD 10A.
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4.178 The Pr. Commissioner, GST Policy Wing stated that vide notifications No. 6/2017-
Central Tax (Rate), No. 6/2017-Integrated Tax (Rate) and No. 6/2017-Union territory Tax (Rate),
all dated 28th June 2017, the Central Government has specified that the Canteen Stores
Department (“CSD” for short), under the Ministry of Defence, as a person who shall be
entitled to claim a refund of fifty per cent. of the applicable Central tax, Integrated tax and
Union territory tax paid by the CSD on all inward supplies of goods received by the CSD for
the purposes of subsequent supply of such goods to the Unit Run Canteens of the CSD or to the
authorized customers of the CSD. Identical notifications have been issued by the State
Governments allowing refund of fifty per cent of the State tax paid by the CSD on the
inward supply of goods received by it and supplied subsequently. Consequent to the same,
Circular No. 60/34/2018-GST dated 4th September 2018 was issued which outlined the steps to be
followed for manual processing of refund applications in FORM GST RFD 10A filed by CSDs till
the functionality to file online claim is available in the refund claim.
4.179 He added that it has now been informed by GSTN that functionality for online filing of
refunds by CSDs is now ready for deployment on the common portal. The matter was deliberated
by the Law Committee for requisite amendments in CGST Rules, 2017 for the implementation of
the same. The Law Committee recommended insertion of rule 95B and FORM GST RFD-10A in
CGST Rules, 2017 to provide for electronic filing of application of refund by CSD on taxes paid
on inward supplies of goods and its processing electronically. Law Committee recommended that
the validation of the input supplies should be made on the system with FORM GSTR-2B (instead
of FORM GSTR- 2A) of the concerned tax period as well as of the previous tax periods. Besides, a
circular may be issued to modify Circular No. 60/34/2018-GST dated 04.09.2018 on CSD
refunds and to clarify the proposed changes. Further, the provisions of the said Circular No.
60/34/2018-GST dated 04.09.2018 may continue to apply for all refund applications filed
manually before the said amendments are notified and the said functionality is made available
on the portal.
Decision: The Council agreed with the recommendations of the Law Committee to insert the
said rule and Forms, along with the proposed circular.
Agenda Item 3(xxxii): Procedure for payment of IGST by SEZ unit located in Noida SEZ on
DTA clearances.
4.180 The Pr. Commissioner, GST Policy Wing informed that a reference was received from
the Secretary, Department of Commerce seeking clarification on the following issues with
respect to payment of IGST by SEZ units located in Noida SEZ on DTA clearances:

i. Whether the procedure adopted in Noida SEZ, during the period of August 2017 to
November 2018, regarding the payment of IGST on DTA clearances by depositing the
IGST amount in the Electronic Cash Ledger, due to non- acceptance of TR-6 challans for
such duty by Punjab National Bank, may be considered as payment of duties of Customs
under Customs Tariff Act, 1975 read with Section 30 of SEZ Act and settlement of
accounts from the Electronic Cash Ledger to the IGST head under Customs duty account
be done accordingly; and
ii. Whether in respect of the supply of goods to DTA by the SEZ Units/ Developer, in
addition to payment of IGST as duties of Customs under sub- section (7) of Section 3 of
Customs Tariff Act, 1975 (CTA, 1975) read with proviso to sub-section (1) of section 5
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of the IGST Act, 2017 and section 30 of SEZ Act, 2005, payment of IGST is also
required to be made simultaneously as inter-state supplies under sub-section (1) of
Section 5 of the IGST Act, 2017 read with section 7(5)(b) of IGST Act.

4.181 The Principal Commissioner, GST Policy Wing mentioned that the Law Committee
deliberated on these issues and proposed as follows:
a. IGST cannot be levied twice on the same supply of goods from SEZ units to DTA and thus,
IGST is payable on such supply only once as duties of customs as per Section 30 of SEZ
Act read with sub-section (7) of section 3 of CTA, 1975 and proviso to Section 5(1) of
IGST Act;
b. The amount of IGST deposited by NSEZ units in their Electronic Cash Ledger through FORM
GST PMT-06 challan during the period August 2017 to November 2018 in respect of the
DTA clearances may be treated as payment of IGST as part of Customs duty under the
provisions of sub-section (7) of section 3 of Customs Tariff Act, 1975, read with Section
30 of SEZ Act 2005 and proviso to Section 5(1) of IGST Act, and may be regularized as
payment of duties of customs subject to the condition that ITC is not availed twice by the
recipients;
c. As the said IGST deposited in Electronic Cash Ledger is proposed to be considered as
payment of IGST, the interest on delayed payment of tax under Section 50 of CGST Act
may not be applicable in respect of the said payments, irrespective of whether the amount
deposited in Electronic Cash Ledger has been debited or not;
d. In respect of the amount which has not been debited, the amount lying un-utilized in Electronic
Cash Ledger may be regularized and treated as IGST paid as duties of customs;
e. In respect of amount debited through DRC-03 or the return, to ensure that no double benefit of
ITC is availed by the DTA recipients, the concerned SEZ units may be asked to procure a
Chartered Accountant (CA) or the Cost Accountant (CMA) certificate in respect of each of
their DTA recipient unit during the period August 2017 to November 2018, and submit it to the
concerned Specified Officer of NSEZ, certifying that the concerned DTA recipient has not
availed ITC twice on the same supply in respect of all the DTA supplies made by the said
SEZ unit during the said period; and
f. For the regularization of amount of IGST deposited by these NSEZ units in their electronic cash
ledger, Directorate General of Export Promotion (DGEP), CBIC may work out the modalities
for such regularization in coordination with GSTN & DG Systems and in consultation with
Office of Pr. CCA.
Decision: The Council agreed with the recommendations of the Law Committee.
Agenda Item 3(xxxiii): Seeking clarity on 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.

4.182 The Pr. Commissioner, GST Policy Wing stated that clarification is needed regarding to
the time of supply for the purpose of payment of GST in respect of supply of spectrum allocation
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services in cases of deferred payment for the spectrum allocated to telecom operators. In respect of
supply of spectrum allocation services, the telecom operators, being the recipients of the said
supply, are required to discharge GST liability on reverse charge basis. The telecom operators are
discharging their GST liability on the said supply at the time of making payment, either upfront fee
or annual instalments with interest as specified in the Frequency Assignment Letter, to the
Government. However, some of the tax authorities have issued letters to the telecom operators for
payment of GST on the entire bid amount payable, irrespective of the payment option
adopted by the operators and irrespective of the fact that in case of option for deferred payment
scheme exercised by the telecom operator, payment may still be required to be made as per the
date of the payment for instalments mentioned in Frequency Assignment Letter/ demand note.
4.183 The Law Committee deliberated on the issue and held that in case where full upfront
payment is made by the telecom operator, GST would be payable when the payment of the said
upfront amount is made or is due, whichever is earlier, whereas in case where deferred payment is
made by the telecom operator, GST would be payable as and when such deferred payments are
due or made, whichever is earlier. The Law Committee recommended that the issue of time of
supply in respect of supply of service of allocation of spectrum and other natural resources may
be clarified through a circular.
Decision: The Council agreed with the recommendations of the Law Committee along with
the proposed Circular.

Agenda Item 3(xxxiv): Proposal for creation of unique identifiers for unregistered persons
opting to generate e-way bill.

4.184 The Pr. Commissioner, GST Policy Wing informed that in the 2nd National Co-
ordination meeting of Central and State Tax officers held on 14.12.2023 under the chairmanship of
the Revenue Secretary, it was discussed that there is a need for providing a unique identifier
for the unregistered persons desirous of generating e-way bill for causing movement of goods,
so as to keep track of supplies made or received by such unregistered persons, as well as to relieve
such unregistered persons from entering the same details on the portal over and over again for
generation of e-way bills.
4.185 The issue was deliberated by the Law Committee. The Law Committee recommended
insertion of a fourth proviso to sub-rule (3) of 138 of the CGST Rules, 2017, as detailed in
the agenda note.
4.186 Further, Law Committee recommended that a new functionality may be created on the
common portal for enrolment/ creation of a unique user id and password for unregistered persons
engaged in business activities who opt to generate e-way bill and also to require them to use such
enrolment number/ unique user id and password for generation of e-way bill. For the same, Law
Committee recommended that a new FORM GST ENR-03 may be inserted in CGST Rules, 2017,
which may allow unregistered persons who opt to generate e-way bill, to apply for unique
enrolment number.
Decision: The Council agreed with the recommendations of the Law Committee to insert the
said rule and Form.
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Agenda Item 3(xxxv): Alignment of rule 96A of CGST Rules, 2017 with the
provision of FEMA Act, 1999.
4.187 The Pr. Commissioner, GST Policy Wing stated that representations have been received
from trade/industries for amendment in Rule 96A of the Central Goods & Services Rules, 2017 to
align the clause for realization of sale proceeds for exports of services in Rule 96A of CGST
Rules with the extensions permitted by the Reserve Bank of India (RBI) for realization of sale
proceeds for such exports.
4.188 The matter was deliberated by the Law Committee and the Law Committee
recommended to amend rule 96A of CGST Rules, as detailed in the agenda note.
Decision: The Council agreed with the recommendations of the Law Committee to amend the
said rule.

Agenda Item 3(xxxvi): Change in due date for filing of return in FORM GSTR-4 for
composition taxpayers from 30th April to 30th June.

4.189 The Pr. Commissioner, GST Policy Wing stated that representations have been received
from trade and industry to extend the time limit to furnish FORM GSTR-4, i.e. the return
required to be filed by a registered person who opts to pay tax under composition levy.
4.190 The matter was deliberated by the Law Committee and the Law Committee recommended
that the due date of filing of FORM GSTR-4 be extended from 30th April of the following year,
at present, to 30th June in respect of FORM GSTR-4 to be filed for the financial year 2024-25
onwards. Accordingly, the required amendment were recommended by the Law Committee in
clause (ii) of sub-rule (1) of Rule 62 of CGST Rules and Instructions of the FORM GSTR-4 for
returns for financial year 2024-25 onwards, as detailed in the agenda note.

Decision: The Council agreed with the recommendations of the Law Committee to amend the
said rule and instructions for returns for financial year 2024-25 onwards.
Agenda Item 3(xxxvii): Amendment in FORM GSTR -8 to capture place of supply.
4.191 The Pr. Commissioner, GST Policy informed that some tax authorities have raised
concerns regarding the current FORM GSTR-8, which is the statement to be furnished by an
electronic commerce operator (ECO) required to collect tax at source under section 52, does not
capture place of supply details in respect of the supplies effected through such ECO, due to which
it is difficult for the tax authorities to verify whether the suppliers have correctly reported the place
of supply in their FORM GSTR-1 and correctly paid tax in FORM GSTR-3B.
4.192 He informed that the matter was deliberated by the Law Committee wherein it was
recommended that FORM GSTR-8 may be suitably amended to incorporate place of supply
details in Table 3 and Table 4 of the said form through a Notification.
4.193 The Hon’ble Member from Tamil Nadu agreed to the amendment in FORM GSTR-8
for correct reporting of Place of Supply by the ECO so that IGST settlement is made to the
actual consuming State. However, he emphasized the need of governing laws such as
Information Technology Rules to ensure correct reporting by E-Commerce Operator especially
when they are located in another State.
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4.194 The Hon’ble Member from Kerala informed that revenue of SGST, Kerala has increased
by 10-11% annually but IGST growth is only 3% indicating a systemic issue and stressed the
urgency of correcting this discrepancy.
4.195 The Pr. Commissioner, GST Policy Wing requested the CCT of Tamil Nadu to send a
detailed proposal on the issue for deliberation by the Law Committee.
Decision: The Council agreed with the recommendations of the Law Committee to amend the
said Form along with the proposed Notification.
Agenda Item 3(xxxviii): Amendment in GST Rules and FORM GSTR-1 to reduce the
current threshold of invoice value of Rs. 2.5 lakhs for inter-state B2C supplies to Rs. 1 lakh.
4.196 The Pr. Commissioner, GST Policy Wing informed that as per section 37 of CGST Act,
2017, read with rule 59 of CGST Rules, 2017, a statement of outward supplies has to be furnished
by a registered person for a tax period in FORM GSTR-1. In respect of B2B supplies, invoice-
wise details are required to be furnished in FORM GSTR-1. However, in respect of B2C
supplies, invoice-wise details are required to be furnished in Table 5 in respect of inter-State
supplies with invoice value more than Rs. 2.5 Lakh only, whereas for other B2C supplies, only
consolidated details are required to be furnished in Table 7 thereof.
It has been represented by some tax administrations that this threshold of invoice value for
declaration of invoice-wise details of intra-State supplies may be reduced from Rs. 2.5 Lakh now
to facilitate availability of more information to the tax administrations for verification of correct
reporting of B2C supplies by the suppliers, thus improving tax compliance, as well as to enable the
consumption states to cross-verify the IGST settlement made to them.

4.197 The matter was deliberated by the Law Committee. It was observed that as per rule 46(e)
of CGST Rules, a tax invoice of taxable value of Rs. 50,000/- or more, issued to an
unregistered person, is required to capture the address of the recipient. Accordingly, the
feasibility of reporting for invoices of Rs. 50,000 or more was discussed but it was noted that there
would be compliance burden on reducing the threshold to Rs. 50,000 and also there may be
increased load on the portal due to reduction in the threshold limit. Therefore, it recommended a
phased reduction, starting with lowering the threshold from the present Rs. 2,50,000/- to Rs.
1,00,000/-. The Law Committee recommended amendments in clause (a)(ii) and (b)(ii) of sub-rule
(4) of rule 59 of CGST Rules, Table 5 and 7 of FORM GSTR -1, Table 6 and Table 7 of FORM
GSTR-5 and amendments in the respective instructions issued thereof, as detailed in the
agenda note.
4.198 The Principal Commissioner, GST Policy Wing further informed that in the Officers’
Meeting held on 21.06.2024, States of Kerala and Tamil Nadu requested to reduce the said
threshold to Rs. 50,000/- so that the same will be in alignment with other provisions like
requirement to generate EWB. However, it was discussed that the present proposal of reducing
threshold to Rs. 1 lakh has been made by the Law Committee after considering the increased load
on the system (common portal) and the increased compliance burden on the taxpayers. However,
in future, depending upon the feedback of systems functioning, the request for reducing the
threshold further to Rs. 50,000/- may be examined by the Law Committee, in due course.

Decision: The Council agreed with the recommendations of the Law Committee to amend the
said rule and related Forms.
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Agenda Item 3 (xxxix): Agenda on rationalisation of the quantum of pre-deposit required to
be paid for filing of appeals under GST.
4.199 The Pr. Commissioner, GST Policy Wing stated that representations have been received
from trade and industry to rationalize the quantum of pre-deposit under GST regime vis-à-vis
erstwhile laws [i.e. service tax/ Central Excise or State Value Added Tax (VAT)] as the amount
of pre-deposit required under GST regime is significantly higher vis-à-vis erstwhile regime,
affecting the working capital requirement of companies who would be required to pay a pre-deposit
equal to 10% of tax demand at the first appellate level (subject to maximum of CGST/ SGST of Rs.
25 crores each or IGST of Rs. 50 crores) and an additional 20% of tax demand (subject to the
maximum of CGST/ SGST of Rs. 50 crores each or IGST of Rs. 100 crores) before the
appellate tribunal, for filing of appeals against the orders passed by adjudicating authorities and
appellate authorities respectively.
4.200 The said issue was deliberated by the Law Committee which recommended to keep the
percentage of pre-deposit for filing appeal with appellate authority at 10% of the tax in dispute,
while reducing the maximum amount of pre-deposit to Rs.20 crores each in CGST and SGST
and Rs 40 crore in IGST), whereas the amount of pre-deposit to be paid for filing appeals in
Appellate Tribunal was recommended to be reduced to 10% of the tax in dispute (subject to a
maximum of Rs. 20 crores each in CGST and SGST and Rs 40 crore for IGST). The Law
Committee recommended amendment in Section 107 of CGST Act, 2017, Section 112 of CGST
Act, 2017 and Section 20 of IGST Act, 2017for this purpose, along with similar amendment in
SGST Act.
4.201 He further added that the Law Committee also recommended consequential
amendments in FORM GST APL-01 and FORM GST APL -05.
Decision: The Council agreed with the recommendations of the Law Committee to amend the
said Acts and the related Forms.

Agenda Item 3 (xl): Change in Payment table of Form GSTR-3B to provide for a separate
table for RCM supplies and Section 9(5) supplies-reg.

4.202 The Pr. Commissioner, GST Policy Wing informed that presently, even if the taxpayer has
a net negative liability in the corresponding FORM GSTR-1, which may arise on account of
issuance of credit notes, downward revision of invoices etc., the portal does not allow the
taxpayer to report negative tax liability in FORM GSTR-3B.
4.203 The Law Committee deliberated on the requisite amendment in FORM GSTR-3B for the
above and recommended that net negative liability (in case net liability as per Table 3 comes
out to be negative) of a tax period may be shown in Payment Table of FORM GSTR-3B i.e. Table
6. This will require creation of a Negative Liability Ledger and the adjustment of liability from the
Negative Liability Ledger will be required to be incorporated in the payment Table 6 of FORM
GSTR-3B. This requires changes in the existing payment table of FORM GSTR-3B.
4.204 The Pr. Commissioner, GST Policy Wing further informed that according to Circular No.
167/23/2021-GST dated 17.12.2021, liability under section 9(5) for E- commerce operators must
be discharged in cash. However, in the current FORM GSTR- 3B, this liability is auto-populated
under the "other than reverse charge" section, allowing payment through cash or ITC. Thus, the
"reverse charge" section in FORM GSTR-3B needs to be renamed to "Reverse charge &
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supplies made under sec 9(5)" to ensure that section 9(5) liability is discharged in cash only.
4.205 The Law Committee deliberated on the issue and recommended that Table 6.1 in FORM
GSTR-3B may be substituted as detailed in the agenda note and Table 6.2 of FORM GSTR-3B
may be omitted.
Decision: The Council agreed with the recommendations of the Law Committee.
Agenda Item 3 (xli): Notifying Annual Return in FORM GSTR-9 for Financial Year 2023-24
and extending exemption from filing FORM GSTR-9 for taxpayers with turnover up to Rs.
2 crores.
4.206 The Principal Commissioner, GST Policy Wing stated that representations have been
received that though rule 36(4) of CGST Rules provides for availment of input tax credit in
FORM GSTR-3B as per details in FORM GSTR-2B, however, the Table 8A of annual return
in FORM GSTR-9 still requires auto-population of the ITC details from FORM GSTR-2A,
which creates anomalies in reconciliation of ITC availment in FORM GSTR-3B and FORM
GSTR-9. Accordingly, it has been requested to amend Table 8A of FORM GSTR-9 (along with
corresponding entry in para 5 of the Instructions in FORM GSTR-9) to provide for auto-
population of the same on the basis of FORM GSTR-2B rather than FORM GSTR-2A. The
Principal Commissioner, GST Policy Wing further informed that changes are required in
FORM GSTR-9 in view of insertion of Table 14 & 15 and amendment thereof in FORM
GSTR-1 vide Notification No. 26/2022 – Central Tax dated 26.12.2022 for reporting
supplies made through e-commerce platforms including supplies taxable under section 9(5).
4.207 The Law Committee recommended the following in respect of Annual Return forms for FY
2023-24:
(i) The filing of annual return (in FORM GSTR-9/9A) for the FY 2023-24 may be exempted
for taxpayers having aggregate annual turnover upto two crore rupees, as per the relaxation
extended in previous FYs.
(ii) The relaxations provided in FY 2022-23 in respect of various tables of FORM GSTR-9 and
FORM GSTR-9C, may be continued for FY 2023-24.
(iii) Table 8A of FORM GSTR-9 may be amended as “ITC as per GSTR-2B (table 3
thereof)” along with corresponding entry in para 5 of the Instructions in the said FORM to
provide for auto-population of the table 8A on the basis of FORM GSTR-2B rather
than FORM GSTR-2A.
(iv) Requisite changes in FORM GSTR-9 may be carried out in view of insertion of table
14 & 15 and amendment thereof in FORM GSTR-1 vide Notification No. 26/2022 –
Central Tax dated 26.12.2022 for reporting supplies made through e- commerce platforms
including supplies taxable under section 9(5).
Decision- The Council agreed with the said recommendations of the Law
Committee to make changes in the Form along with draft Notifications.
Agenda Item 3 (xlii): Rolling out of Biometric based Aadhar Authentication of
registration on Pan-India basis-reg.
4.208 The Pr. Commissioner, GST Policy Wing informed that to strengthen registration process
and to combat fraudulent input tax credit (ITC) claims made through fake invoices, a pilot is
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being conducted in the States of Gujarat, Puducherry and Andhra Pradesh wherein applicants for
registration who have opted for authentication of Aadhar number may have to undergo biometric
based authentication of Aadhar number at GST Suvidha Kendras in the cases identified on the
portal based on risk parameters and data analysis. Sub-rule (4A) of Rule 8 of CGST Rules was
substituted vide Notification No. 04/2023 dated 31.03.2023 for the same. As per feedback received
from the State of Gujarat, in the first 7 months of the said pilot, new registration applications have
reduced by approx. 25% in Gujarat. This suggests the new measures are effectively deterring
fraudulent registrations. Given these encouraging outcomes, there may be a need to implement
robust, risk-based biometric based Aadhaar authentication system nation- wide to further
prevent fraudulent registration attempts.
4.209 The issue was deliberated in the meeting of Law Committee. The Law committee observed
that the pilots were a success in reducing fraudulent registrations and recommended extending
biometric Aadhaar authentication for GST registration applicants nationwide. The Law
Committee recommended that this rollout should be in phased manner based on the readiness of
tax authorities in different States/UTs. The Law Committee further suggested that all the
States/UTs, other than the States of Gujarat, Puducherry and Andhra Pradesh, shall be required
to substitute sub-rule (4A) of rule 8 of their respective SGST Rules on the same lines as done by
the Centre vide notification no. 04/2023 dated 31.03.2023, to implement the said biometric based
Aadhar authentication for GST registration in their respective jurisdictions. Law Committee
observed that based on the feedback received in the pilot, there may be a requirement to call the
applicants, who have not opted for Aadhaar authentication, also to GST Seva Kendras for photo
capturing and document verification. It was therefore recommended that sub-rule (4A) of rule 8
of CGST Rules, 2017 may be suitably amended by inserting a second proviso to the said sub-
rule so as to make it mandatory for those applicants, who do not opt for Aadhaar authentication,
also to visit GST Seva Kendras for photo capturing and original document verification. It was
also recommended that in cases where the applicant fails to come for biometric authentication, or
where biometric authentication fails, no ARN should be generated on the portal.
4.210 The Law Committee also recommended that the notifications (Notification no. 27/2022-
Central Tax dated 26.12.2022 as amended by Notification no.31/2023 dated 31.07.2023 and
Notification no. 54/2023 dated 17.11.2023) issued by the Central Government under sub-rule (4B)
of rule 8 of CGST, for all States/UTs other than the States of Gujarat, Puducherry and Andhra
Pradesh Rules, may be rescinded for enabling All India roll out of the biometric based Aadhaar
authentication.
4.211 The Pr. Commissioner, GST Policy Wing further informed that in the Officers’ Meeting
held on 21.06.2024, State of Maharashtra requested that there may be a need to make
modifications in the existing functionality on the portal to provide that applications for
registration are distributed between Centre and States before biometric authentication process,
instead on present allocation on generation of ARN, after biometric authentication,, so that the
same can be processed separately by the Centre and State tax officers in their separate GST
Suvidha Kendras. . He added that it was suggested in the Officers’ Meeting that roll out of
biometric authenticated may be implemented presently as per existing functionality on the
portal. In the meantime, GSTN may examine and make the requisite changes in the
functionality for this as well as regarding any other requests.

4.212 The Hon’ble Member from Tamil Nadu welcomed the introduction of Biometric based
Aadhar Authentication of registration. While discussing the data pertaining to FY 2023-24 for
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Tamil Nadu, Hon’ble Member highlighted that approximately 80% of applications necessitated
officer interface for Aadhar authentication compliance. The Hon’ble Member expressed concerns
regarding Ease of Doing Business under GST and other associated administrative challenges.
4.213 The Hon’ble Chairperson invited the States for comments on their experience with
conducting the pilot of biometric based Aadhaar authentication
4.214 The Hon’ble Member from Gujarat highlighted that implementing Biometric-based Aadhar
authentication for registration has led to 30% reduction in registration applications and has
narrowed the gap between rejections by the Central and State authorities. The establishment of
GST Suvidha Kendra for registration authentication has significantly improved transparency,
speed, and accuracy in the registration process.
4.215 The Hon'ble Member from Andhra Pradesh emphasized the positive impact of Biometric-
based Aadhar authentication on the registration process, highlighting a notable decrease in
fraudulent registrations.
4.216 The Hon’ble Member from Puducherry stated that they have also introduced an App along
with Biometric-based Aadhar authentication of applications.
4.217 The Hon’ble Chairperson stated that Gujarat's experience indicates a reduction in
discrepancies between Central and State processes. Additionally, findings from Andhra Pradesh
corroborated by Gujarat show a significant decrease in fraudulent registration claims.
4.218 The Secretary clarified that not everyone will be required to visit biometric registration
stations. Only those identified as high-risk, based on risk parameters and data analysis, will be
required to undergo this process.
Decision- The Council agreed with the said recommendations of the Law Committee along
with amendment in the said rules.
4.219 It was also discussed that as per the recommendations made by the Council, certain
amendments have been brought in CGST Act vide Sections 11, 12 and 13 of the Finance Act,
2024. While Section 11 and 12 of the Finance Act, 2024 are for making ISD mechanism
mandatory for distribution of the input tax credit (ITC) for common services, section 13 is
regarding the penal provisions for manufacturers of specified evasion prone commodities. These
sections of the Finance Act, 2024 need to be notified, along with corresponding rules prescribing
the mechanism for distribution of common ITC by ISDs. It has been represented by various trade
bodies that implementation of mandatory provision of ISD requires a substantial change to be
made in their internal ERP systems and a suitable time frame of 6 months may be provided to them
from the date the amended section and the concerned rules are notified by the Government.
The matter was deliberated in the Officers’ meeting held on 21.06.2024 and it was proposed that
Section 11 and 12 of the Finance Act, 2024 may be notified with effect from 1st April 2025
and Section 13 of the Finance Act, 2024 may be notified with effect from 1st October, 2024.

The Hon’ble Chairperson directed that the views of the states should be sought. Accordingly, the
matter was circulated to the States for their concurrence. All the States/UTs have agreed with the
proposal.

Decision: Section 11 and 12 of the Finance Act, 2024 are to be notified with effect from 1st
April 2025 and Section 13 of the Finance Act, 2024 is to be notified with effect from 1st
October, 2024.
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5. Agenda Item 4 : Recommendations of the Fitment Committee for the consideration of the
GST Council

5.1 The Secretary introduced the agenda item relating to recommendations of the Fitment
Committee and asked the Joint Secretary, Tax Research Unit (TRU) to present the agenda.

5.2 Joint Secretary, TRU stated that the Fitment Committee agenda was summarized in five
Annexures (I to V) wherein the first three related to goods and the other two related to services.
There were a total of 21 agenda items relating to goods out of which the Fitment Committee had
recommended making changes in the GST Rate or issue of clarifications in case of 17 items
(Annexure-I of the Agenda Volume-II), no change was recommended in respect of 3 items
(Annexure-II of the Agenda Volume-II). One agenda item was placed before the Council for
information (Annexure-III of the Agenda Volume-II). In the case of services, there were a total of
10 agenda items, of which the Fitment Committee had recommended making changes in the GST
Rate or issue of clarifications in case of 9 items (Annexure-IV of the Agenda Volume-II) and no
change has been recommended in respect of 1 item (Annexure-V of the Agenda Volume-II).
5.3 Thereafter, Joint Secretary, TRU presented the agendas pertaining to the recommendations
of the Fitment Committee. (Annexure 4)
5.4 The first item for consideration of the Council was concerning Compensation Cess on
goods imported in SEZ by a SEZ unit or SEZ developer for authorised operations. JS, TRU
stated that prior to introduction of GST, all imports by SEZ units or a SEZ developer for authorized
operations were exempt from Basic Customs duty (BCD), CVD in lieu of Central Excise duty and
at the time of roll out of GST, exemption with respect to IGST leviable on the such imports were
continued vide Notification No. 64/2017-Customs based on the recommendation of GST
Council. However, no such notification was issued for continuation of exemption from
Compensation Cess leviable on such imports. She stated that all pre-GST exemptions were
continued at the time of roll out of GST and therefore, the intent appears to be to continue
exemption from Compensation Cess on import of goods to SEZ. The Fitment Committee has
therefore, recommended to provide exemption from Compensation Cess leviable on the imports in
SEZ by SEZ Unit/developer for authorised operations prospectively from the date of issue of
Notification and also provide retrospective exemption for the period from 1st July, 2017 till
the date of such notification.
Decision: The Council approved the recommendations of the Fitment Committee to
provide exemption from Compensation Cess leviable on the imports of goods in SEZ by SEZ
Unit/developer for authorized operations prospectively from the date of issue of
Notification and also provide retrospective exemption for the period from 1st July, 2017 till
the date of such notification.
5.5 Joint Secretary, TRU presented the agenda item pertaining to extension of the validity of
IGST exemption on imports under Notification No. 19/2019 Customs dated 06.07.2019. Vide the
said Notification, exemption from BCD and IGST was provided on imports of specified defence
items for defence forces and the exemption is lapsing on 30th June, 2024. She stated that the
Fitment Committee has recommended extension of IGST exemption for another 5 years as these
items are not indigenously manufactured and have to be necessarily imported by the armed forces
for operational readiness and strategic importance.
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Decision: The Council approved the recommendations of the Fitment Committee to
extend the IGST exemption for the specified defence items under notification 19/2019-Cus for
another 5 years.
5.6 Joint Secretary, TRU presented the agenda item pertaining to harmonizing GST rate at a
maximum of 5% on aircraft parts/components mentioned in the five manuals of aircraft
maintenance (Aircraft Maintenance Manual, Component Maintenance Manual, Illustrated Parts
Catalogue, Structural Repair Manual and Standard Procedures Manual of the OEMs)
irrespective of their classification in any chapter. At present aircraft parts classified under HSN
8807, aircraft engines classifiable under Chapter 8407 1000 and 8411 and aircraft tyres classifiable
under Chapter 40 attract GST at 5% whereas other parts used in aircraft that are classifiable under
Chapters 84, 85 etc. attract GST ranging from 18%-28%. The issue of uniform 5% GST on
aircrafts parts under any chapter was placed before the Council in its 47th and 48th Meeting.
However, considering the dual use nature of such parts, the Council had not recommended any
change. She stated that the Ministry of Civil Aviation has stated that the country is 100%
dependent on import of all such parts and has requested that parts which feature in the five
manuals be considered for 5% GST rate which will translate to 5% IGST for import. The Fitment
Committee has therefore, recommended to provide a uniform rate of 5% IGST for imports of
parts/components mentioned in specified five manuals irrespective of their classification subject to
conditions similar to Customs Notification No 50/2017-Customs dated 30.06.2017.
Decision: The Council approved the recommendations of the Fitment Committee to
provide a uniform rate of 5% IGST on import of parts/components mentioned in specified
five manuals of aircraft maintenance irrespective of their classification subject to conditions
similar to Customs Notification No 50/2017-Customs dated 30.06.2017.
5.7 Joint Secretary, TRU presented the agenda item pertaining to GST exemption for
Scientific Equipment required for Research Moored Array for African-Asian-Australian
Monsoon Analysis and Prediction (RAMA) programme. She stated that the Ministry of Earth
Sciences has requested to exempt IGST on research instruments/buoys imported under RAMA
programme which is an inter-governmental technical cooperation programme between India &
USA which is valid till July 2026. Earlier, imports under the RAMA programme were availing
benefit of concessional IGST rate under Notification No. 47/2017-Integrated Tax (Rate) dated
14.11.2017 and Notification No. 51/96-Customs. On the basis of recommendations of the
GoM on Rate Rationalization, which were accepted by the GST Council in its 47th Meeting, the
IGST concession to scientific and technical instruments supplied to public funded research
institutes was withdrawn and therefore, the research buoys and moorings imported under the
RAMA programme now attract 18% GST, which is being borne by the National Oceanic and
Atmospheric Administration, USA. The Fitment Committee has recommended to extend GST
exemption to research equipment/buoys imported under the RAMA programme for a period of 3
years i.e. till July 2026 subject to the condition that such imports are certified by Ministry of
Earth Sciences and that such goods are re-exported within 2 years, extendable by further period of
1 year.
Decision: The Council approved the recommendations of the Fitment Committee t o
provide IGST exemption till July 2026 to research equipment/buoys imported under RAMA
programme subject to condition of certification by Ministry of Earth Sciences and that such
goods are re-exported within 2 years (extendable by 1 year).
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5.8 Joint Secretary, TRU presented the agenda item pertaining to ad-hoc exemption from
IGST for imports of technical documentation related to AK-203 rifles. She stated that the
import of rifle kits are exempted under both Customs and IGST but the the scope of the
Notification 19/2019-Customs did not cover the technical documentation under Chapter 49. She
stated that Ministry of Defence has requested for IGST exemption on these imports of technical
documentation related to these AK-203 rifles as it is given for Basic Customs Duty. The Fitment
Committee after considering request from Defence Ministry has recommended to provide ad-hoc
IGST exemption for such imports of technical documentation related to AK-203 rifle kits.
Decision: The Council approved the recommendation of the Fitment Committee to provide
ad-hoc IGST exemption for such imports of Technical documentation related to AK-203 rifle
kits.
5.9 Joint Secretary, TRU presented the agenda item pertaining to reducing the applicable GST
rate on carton boxes for packaging apples and other horticulture produce. She stated that prior
to 1.10.2021, items falling under HSN 4819 like cartons, boxes and cases of non-corrugated paper
or paper board attracted a GST rate of 18% while cartons, boxes and cases of corrugated
paper or paper board attracted a concessional GST rate of 12%. She stated that the GST
Council in its 45th meeting held in September, 2021 had recommended that all such items falling
under HSN 4819, irrespective of whether they were corrugated or non-corrugated, shall attract a
uniform GST rate of 18%. In the 49th and 50th Council Meetings, Himachal Pradesh and Jammu
& Kashmir had requested to re-examine the matter and to provide concessional rate for cartons
used for packing apples and other similar horticulture products. She stated that the matter was
re-examined by the Fitment Committee and the Fitment Committee has recommended a uniform
GST rate of 12 % on cartons, boxes and cases of corrugated paper or paper-board as well as of
non-corrugated paper or paper-board falling under heading 4819 10 and 4819 20 respectively.

5.10 The Hon’ble Member from Himachal Pradesh expressed his gratitude to the Hon’ble
Chairperson for suggesting re-examination of the issue relating to reduction of GST rate on cartons
used for packaging of apples. He further stated that the reduction of GST rates would help a
large number of farmers and that the benefit is not limited to apple farmers. He stated the
uniform rate for all cartons would reduce the input cost for all the stake holders in the industry.
5.11 The Hon’ble Member from Jammu & Kashmir stated that they are grateful for the decision
to reduce the rate of GST and that it will greatly help the apple industry of Jammu &
Kashmir.
Decision: The Council approved the recommendation of the Fitment Committee to provide
uniform rate of 12% for carton, boxes and cases of corrugated paper or paperboard as well
as of non-corrugated paper or paper board falling under HS 4819 10 & 4819 20.
5.12 Joint Secretary, TRU presented the agenda item relating to the request to clarify whether
fire water sprinklers are covered under entry 195B of Schedule-II of Notification No.1/2017-
CT(R) (as amended). She stated that the matter was also considered by the CESTAT, New
Delhi and the Tribunal held that Sl. No.195B of Schedule-II of the Notification 1/2017-
CTR as it stands does not restrict the sprinklers to any category. She stated that the matter was
examined by the Fitment Committee and to rule out future disputes, the Fitment Committee
has recommended to clarify that all types of sprinklers including fire water sprinklers are
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covered under Sl. No. 195B of Schedule II and thereby, attract 12% GST rate and to regularise
past practice on ‘as is where is’ basis in view of genuine interpretational issues.
Decision: The Council approved the recommendation of the Fitment Committee to clarify
that all types of sprinklers including fire water sprinklers are covered under Sl. No. 195B of
Schedule II of Notification 1/2017-Central Tax (Rate) (as amended) and thereby, attract
12% GST rate and to regularise past practice on ‘as is where is’ basis in view of genuine
interpretational issues.
5.13 Joint Secretary, TRU presented the agenda item relating to inclusion of parts of poultry
machinery in the Notification No. 1/2017- CT (Rate) which provides a concessional rate of 12
% for poultry machine. She stated that parts of poultry keeping machinery are specifically
classified under HS 8436 9100. In GST, HS CTH 8436 is mentioned under Sl. No. 199 of
Schedule II to Notification no. 1/2017- CT (Rate) and thus parts of poultry-keeping machinery
are also included in the entry even though these are not explicitly mentioned. She stated that,
however, in the past, for goods under heading 8432 and 8433, ‘parts’ have been specifically
included in CGST notification at a later stage, which has created ambiguity for entries wherein
parts are not explicitly included. The matter was examined by the Fitment Committee and the
Fitment Committee has recommended to amend the entry at Sl. No.199 of Schedule II (@ 12%)
to Notification No. 1/2017- CT (Rate) to explicitly mention ‘parts thereof’ and regularise the
past practice on ‘as is where is’ basis.

Decision: The Council approved the recommendation of the Fitment Committee to amend
the entry at Sl. No.199 of Schedule II to Notification No. 1/2017- CT (Rate) to explicitly
mention ‘parts thereof’ and regularise the past practice on ‘as is where is’ basis for parts
of poultry machinery.
5.14 Joint Secretary, TRU presented the agenda item pertaining to pulses and cereals supplied
to or by any agency engaged by Government prior to 17.07.2022. She stated that for the period
from 01.07.2017 up to 17.07.2022, supplies of any goods falling under heading 0713 (pulses) or
chapter 10 (cereals) attracted GST at the rate of 5%, when such goods were put up in a unit
container and bore a registered brand name. She stated that the issue has arisen since agencies
and Government Cooperatives such as NAFED stock these goods with their name to ensure the
stock of Government is identified in warehouses and that no special price is realized by these
agencies by putting its name on the bags. The issue was examined by the Fitment Committee
and the Fitment Committee has recommended to regularize o n ‘as is where is’ basis all supplies
of pulses and cereals made for the past period i.e. 01.7.2017 to 17.7.2022 when supplied to or by
any agency engaged by Union/State Govt/Union Territory for procurement and sale, under any
programme/scheme duly approved by the Central/State government that intends to supply such
goods free of cost or at subsidized rate subject to certification and non-utilization of
ITC/reversal of ITC by supplier, if availed. Regarding the applicability of GST on such supplies
made after 18.7.2022, JS, TRU informed that clarification has been sought from the
Department of Consumer Affairs as to whether such supplies would qualify as supply to
institutional consumer.
Decision: The Council approved the recommendation of the Fitment Committee to regularize
on ‘as is where is’ basis all supplies of pulses (HS 0713) and cereals (chapter 10) made for
the past period i.e. 01.7.2017 to 17.7.2022 when supplied to or by any agency engaged by
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Union/State Govt/ Union Territory for procurement and sale under any under any
programme/ scheme duly approved by the Central Government or any State Government
that intends to distribute such goods at free of cost or at subsidised rate to the eligible
beneficiaries like economically weaker sections of the society subject to the condition that the
concerned supplier shall submit a certificate from an officer not below the rank of the Deputy
Secretary to the Government of India or the State Government/ Union Territory, within 180
days from the date of issuance of the Circular, and Input Tax Credit shall not be availed on
such inputs, and if availed on such inputs, shall be reversed within a period of 180 days from
the date of issuance of the Circular if the supplier intends or takes the benefit under the
proposed regularisation.
5.15 Joint Secretary, TRU presented the agenda item pertaining to rate of GST on solar cookers.
She stated that as per HS classification heading 7321 covers all cooking appliances which are
normally used in household and use solid, liquid or other source of energy including solar energy
and therefore, in light of the description, solar cookers are classifiable under CTH 7321 attracting
18% GST. However, solar cookers with dual energy source i.e solar energy & electricity are
classifiable under heading 8516 and attract GST rate of 12%. She stated that to promote
renewable energy devices and also to avoid litigation, the Fitment Committee has recommended
to provide a uniform GST rate of 12% on all kind of solar cookers and to clarify that solar
cookers that work on dual energy sources (solar energy & grid electricity) are classifiable under
HS 8516 and already attract GST @ 12%.
Decision: The Council approved the recommendation of the Fitment Committee to provide a
uniform GST rate of 12% on all kind of solar cookers and to clarify that solar cookers that
work on dual energy sources (solar energy & grid electricity) are classifiable under HS
8516 and attract GST @ 12%.
5.16 Joint Secretary, TRU presented the agenda item relating to reduction in GST rate of
Steel/Aluminium Milk Cans used in milk dairies. She stated that from the WCO Explanatory Notes
for the relevant chapters, it is seen that milk cans for use at a commercial scale/for business
purpose would be covered under the heading 7310/7612 @18%, whereas, domestic milk cans
would be classifiable under HSN 7323/7615@ 12%. The Fitment Committee recommended to
provide a uniform rate of 12 % for all kinds of milk cans made of iron/steel or aluminium
irrespective of their use by way of creating a separate entry.

Decision: The Council approved the recommendation of the Fitment Committee to provide a
uniform rate of 12% for all kinds of milk cans of iron/steel or aluminium irrespective of their
use by way of creating a separate entry.
5.17 Joint Secretary, TRU presented the agenda item pertaining to GST Compensation Cess on
supply of aerated beverages and energy drinks under HS 2202 by Unit Run Canteens (URCs)
to its authorised customers. She stated that the Ministry of Defence had requested to either
fully exempt Cess payable by URC on outward supply of goods or to allow for the applicable
cess to be collected at the Depot level for supplies made by URCs. Based on the
recommendation of the GST Council in its 52nd meeting, the matter was referred to the Law
Committee and the Law Committee has opined that there are no provisions as per which tax can be
collected and deposited by a registered person in a State on behalf of a supply made by a supplier
located in another State. In view of the observations of the Law Committee, the Fitment Committee
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has recommended that Compensation Cess on supply of aerated beverages and energy drinks (HS
2202) by URCs to its authorised customers may be exempted.
Decision: The Council approved the recommendation of the Fitment Committee to exempt
Compensation Cess on supply of aerated beverages and energy drinks falling under HS 2202
by Unit Run Canteens to its authorised customers.
5.18 Joint Secretary, TRU presented the agenda item relating to further reduction of GST rate
on fertilizers in view of the recommendations made by Standing Committee on Chemicals &
Fertilizers in its 43rd Report wherein they have recommended to place it before the Council. The
issue to further reduce GST on fertilizers was placed before the GST Council in its 45th and 47th
meetings but the GST Council, however, did not recommend any change in the rates of fertilizers
or other organic farm inputs. She stated that the matter was examined by the Fitment
Committee and as the matter has been discussed in the previous GST Council meetings, the
Fitment Committee has recommended to refer the issue to the GoM on Rate Rationalization to
take a holistic view.
Decision: The Council approved the recommendation of the Fitment Committeeto refer the
issue of reduction in rate of GST on fertilizers to the GoM on Rate Rationalization.
5.19 Joint Secretary, TRU presented the agenda item pertaining to lowering of GST rate on
raw materials of fertilisers like Sulphuric Acid and Ammonia in view of the recommendations
made by Standing Committee on Chemicals & Fertilizers in its 43rd Report and 52nd Report. She
stated that the matter was examined by the Fitment Committee and that the Fitment Committee has
recommended to refer the issue to the GoM on Rate Rationalization to take a holistic view.
Decision: The Council approved the recommendation of the Fitment Committeeto refer the
issue of lowering the GST rate on fertilizer raw materials like sulphuric acid and ammonia
to the GoM on Rate Rationalization.
5.20 Joint Secretary, TRU presented the agenda item relating to reduction of GST rate on
micronutrients in view of the recommendations made by Standing Committee on Chemicals &
Fertilizers in its 43rd Report and 52nd Report that micronutrients are considered as essential
plant nutrients. The matter was examined by the Fitment
Committee. Micronutrients have multiple uses across various industries. Since the matter has
been discussed in various GST Council meetings including the 25th, 31st and 37th meetings, the
Fitment Committee has recommended to refer the issue to the GoM on Rate Rationalization to
take a holistic view.
Decision: The Council approved the recommendation of the Fitment Committeeto refer the
issue of lowering the GST rate on micronutrients to the GoM on Rate Rationalization to take
a holistic view.
5.21 Joint Secretary, TRU presented the agenda item pertaining to a request received from
State of Karnataka to notify the maximum tax rate of 40% (20% under CGST and 20% under
SGST Act) on tobacco products like cigarettes, bidis, smokeless tobacco products etc. She stated
that the matter was examined by the Fitment Committee and the Committee has recommended
to refer the issue to the GoM on Rate Rationalization to take a complete sectoral view.
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5.22 The Hon’ble Member from Karnataka intervened to urge the Council to increase the tax
rate on tobacco products as the global standard for tax on such products is around 75%
whereas in India we are currently only at 52-53% which was way below the global standard. He
further stated that the incidence of cancer has increased and that everyone is well aware of the ill
effects of tobacco use and therefore, there should be higher tax on those products and GST rate
on tobacco products should be increased and slowly brought on par with global standards which
was 75%. He urged the Council to consider increasing the tax on tobacco products in line with
global standards and further requested the Council to request the Fitment Committee to take a view
on the issue as it would lead to a quicker decision and was well within their domain knowledge. He
also stated that this is one avenue for increasing the revenue and that it would also be the
right step in the right direction.

5.23 The Hon’ble Chairperson stated that no Member of the Council is favourably inclined
towards tobacco products and directed that the issue pertaining to increasing the tax rate on
tobacco products needs to be examined by the Fitment Committee.
Decision: The Council agreed to refer the issue of rate on tax on tobacco products back to
Fitment Committee for examination.
5.24 Joint Secretary, TRU presented the agenda item relating to clarification on GST rate
applicable on agricultural farm produce in packages of more than 25 kg or 25 litres. The Legal
Metrology (Packaged Commodities) Rules was amended with effect from 01.01.2018 whereby the
provisions applicable to packages intended for retail sale does not apply to agricultural farm
produce sold in bags upto and including 50kg. The FAQ issued on 17th July, 2022 to clarify the
scope of pre-packaged and labelled for the purposes of GST levy was based on the Legal
Metrology (Packaged Commodities) Rules - and therefore, it provided that packages of specified
food items like cereals, pulses, flour etc. would not fall in the category of pre-packaged and
labelled commodity for the purposes of GST if the quantity exceeded 25kg /25litre and would,
therefore, not attract GST. The Fitment Committee observed that the intention of the GST Council
was always to tax agricultural farm produce less than or equal to 25 kg. In view of the above, in
order to align the GST rate notification with the intention of the GST Council, the Fitment
Committee recommended that suitable amendment may be made in the definition of the
expression ‘pre-packaged and labelled’ in the concerned GST rate notifications to exclude the
supply of agricultural farm produce in packages of more than 25 kg or 25 litre from the scope of
pre-packaged and labelled for the purpose of taxation. Further, it was also recommended that the
issue for the past period may be regularised on ‘as is where is' basis.

Decision: The Council approved the recommendation of the Fitment Committee to exclude
the supply of agricultural farm produce in packages of more than 25 kg or 25 litre from the
scope of pre-packaged and labelled for the purpose of taxation and to regularize the issue
for the past period on ‘as is where is’ basis.
5.25 Joint Secretary, TRU presented the agenda item pertaining to the direction of Hon’ble
Chhattisgarh High Court wherein they have requested the Council to reconsider the exclusion of
small-scale manufacturers of ice cream from the benefit of Section 10(1) of the GST Act. She
stated that the GST Council in the 17th GST Council meeting had approved to exclude
manufacturers of ice cream and other edible ice, whether or not containing cocoa, from the
composition scheme. The issue was re-examined by the Council in the 43rd meeting as per
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directions of Hon’ble Delhi High Court and no change was recommended by the Council. She
stated that the matter was examined by the Fitment Committee and the Fitment Committee
has recommended to maintain status quo.
Decision: The Council approved the recommendation of the Fitment Committee for
maintaining status quo and continue the exclusion of ice cream from composition levy.
5.26 Joint Secretary, TRU presented the agenda item relating to exemption from IGST on
imports of pharmaceutical products by organizations carrying serious research in scientific field
and hospitals carrying out research on life saving medicines and treatment. She stated that this was
a recommendation of PAC and that the concessional rate was withdrawn on recommendation made
by the GoM on Rate Rationalisation as it was creating an inverted duty structure and this was
accepted in the 47th GST Council meeting. The issue was examined and Fitment Committee has
recommended no change as it would be detrimental to domestic manufacturers of such goods and
also entail end use based exemption.
Decision: The Council approved the recommendation of the Fitment Committee to maintain
status quo.
5.27 Joint Secretary, TRU presented the agenda item pertaining to request to increase rate of
GST on orthopaedic implants falling under HS 9021 from 5% to 18% on the ground that the
inverted duty structure leads to blocking of working capital. She stated that inputs were sought
from Ministry of Social Justice & Empowerment with respect to the request for increase in GST
rates, which has replied that increase in GST rates would increase the cost of these goods and not
be in the interest of persons with disabilities (Divyangjan). Fitment Committee has
recommended to maintain the status quo considering inputs from Ministry of Social Justice.
Decision: The Council approved the recommendation of the Fitment Committee for
maintaining status quo on rate of GST on orthopaedic implants.
5.28 Joint Secretary, TRU stated that the next agenda item is for the information of the Council.
She stated that in the 52nd meeting of the GST Council, a general approval was obtained from the
Council to update the list of banks/entities eligible for IGST exemption on import of
Gold/Silver/Platinum as and when Appendix 4B of Handbook of Procedures of Foreign Trade
Policy (FTP), 2023 is amended by DGFT. She stated that in light of corrigendum dated 09.02.24
issued by DGFT, a corrigendum was also issued with respect to Notification 60/2023-Cus
dated 16.10.23 so as to align it with partially modified Appendix 4B. Further, she stated that for
the Financial Year 2024-25, following issuance of updated list of authorised banks by RBI,
DGFT has amended Appendix 4B of Handbook of Procedure FTP,2023 vide Public Notice No.
54/2023, dated 28.03.2024 updating the list of banks authorised for import of gold and silver
and those authorised for import of only gold. Thereafter Notification No. 25/2024-Customs dated
06.05.24 was issued to amend the list in Notification No. 50/2017-Cus implementing the same.
Fitment Committee recommended placing the same before the Council for information.
Decision: The Council took note of the updated list of banks/entities eligible for IGST
exemption on such imports.
5.29 Joint Secretary, TRU presented the agenda pertaining to Services as mentioned at
Annexure-IV in the Agenda Volume-II. She presented the recommendations made by the Fitment
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Committee for making changes in the GST rates and for issuing clarifications in relation to the
services.
5.30 Joint Secretary, TRU presented the agenda item relating to a request to clarify the GST
liability on the premium settlement by lead insurer to co-insurers in co-insurance agreement. She
stated that in these agreements, the entire GST at 18% is paid by the lead insurer on behalf of all
the co-insurers. The issue of taxability of co-insurance premium apportioned by lead insurer to
the co-insurers in co-insurance agreements was examined in the 47th meeting of the GST Council
and it was recommended that though lead insurer pays the tax on the entire amount of premium,
the co-insurers are liable to pay GST on the portion of premium they receive. In light of certain
challenges in implementing the above recommendation of the 47th GST Council, the issue
was examined by the Fitment Committee and the Fitment Committee recommended that supply of
services wherein co-insurance premium is apportioned by the lead insurer to co-insurer(s) for
the supply of the insurance services made jointly by the lead insurer and co-insurer (s) to the
insured in the co-insurance agreement may be declared as no supply under Schedule III of the
CGST Act, 2017 and to regularise the past cases on ‘as is where is’ basis by way of issuance of a
Circular.
Decision: The Council approved the recommendation of the Fitment Committee to consider
supply of services wherein co-insurance premium is apportioned by the lead insurer to co-
insurer(s) for the supply of the insurance services made jointly by the lead insurer and co-
insurer (s) to the insured in the co-insurance agreement as no supply under Schedule III of the
CGST Act, 2017 and to regularize the past cases on ‘as is where is basis’ by way of issuance
of a Circular.
5.31 Joint Secretary, TRU presented the agenda item pertaining to a request to clarify the GST
taxability on re-insurance commission. She stated that reinsurance commission is an amount
deducted by an insurance company from the reinsurance premium payable to a reinsurer to cover
administrative costs, underwriting and business acquisition expenses. The issue was examined by
the Fitment Committee and it was observed that the arrangement between the insurance
companies and the reinsurer in this transaction is only sharing of expenses. In view of these
deliberations, the Fitment Committee has recommended that transaction of ceding commission
between insurer and reinsurer may be declared as no supply under Schedule III of CGST Act,
2017 and also to regularize the past cases on ‘as is where is’ basis by way of issuance of a
Circular.
Decision: The Council approved the recommendations of the Fitment Committee to
consider the transaction of ceding commission between insurer and reinsurer as no
supply under Schedule III of CGST Act, 2017 and to regularize the past cases on ‘as is
where is’ basis by way of issuance of a Circular.
5.32 Joint Secretary, TRU presented the agenda item relating to a request received from
Ministry of Railways to restore GST exemptions on outward supplies made by railways
and exemption on intra-railway supplies. She stated that the matter was examined by the Fitment
Committee and the Fitment Committee has recommended that following specific services provided
by Ministry of Railways (Indian Railways) to general public may be exempted from GST: (i)
Platform tickets, (ii) Facility of retiring rooms/waiting rooms, (iii) Cloak room services and (iv)
Battery-operated car services. Fitment Committee also recommended to restore exemption on
the intra-railway supplies i.e the supply of services made between various zones/ divisions under
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Ministry of Railways (Indian Railways) and that the intervening period i.e., from 20.10.2023
till date of notification of exemption on above services be regularized on ‘as is where is’
basis.
Decision: The Council approved the recommendations of the Fitment Committee to:
a. Exempt from GST the following specific services provided by Ministry of Railways
(Indian Railways) to general public at large: (i) Platform tickets, (ii) Facility of
retiring rooms/waiting rooms, (iii) Cloak room services and (iv) Battery-
operated car services.
b. Exempt Intra-railway supplies i.e the supply of services made between various zones/
divisions under Ministry of Railways (Indian Railways).
c. To regularize on ‘as is where is’ basis the intervening period i.e., from 20.10.2023 till
date of notification of exemption on above services.
5.33 Joint Secretary, TRU presented the agenda item relating to a request received from
Ministry of Railways to exempt GST on transactions between Special Purpose Vehicles (SPVs)
and Ministry of Railways (MoR) retrospectively w.e.f. 01.07.2017. She informed that the issue was
discussed in the Officers’ meeting and there was a request from State of Maharashtra that similar
proposals, if it arises in the context of states/UTs should also be considered. She stated that the
same has been noted and similarly placed request received from states/UTs will be examined
and considered on case to case basis.
5.34 The Hon’ble Member from Tamil Nadu stated that SPV is a separate legal entity and
therefore, any transaction between the Ministry of Railways or within SPVs is taxable. He
further stated that it was discussed in the 48th GST Council meeting that the transaction between
two such organizations is taxable and therefore, if any exemption is given for this particular
SPVs then same exemption will have to be extended to similarly placed SPVs which are already
in existence in Tamil Nadu. He stated that the same needs to be considered.
5.35 The Secretary clarified that the issue was discussed in the Officers’ meeting and the issue
raised has been taken note of.
5.36 The representative from Maharashtra stated that case to case basis exemption may be
difficult. He stated that he understood the rationale that railways are being exempted because there
should not be a taxable transaction between the two state entities. He further stated that if similar
SPVs are there within the State then it would be better to cover all such similar entities in a single
notification for exemption rather than considering them on a case to case basis.
5.37 The Hon’ble Member from Kerala stated that in case of SPVs and Railways, more
clarity is required as to the nature of services that are getting exempted and also, it needs to be
ascertained whether any production such as rolling stock is happening through these SPVs.
He stated that Fitment Committee needs to consider in detail these different kinds of SPVs and as
many SPVs are involved in production this aspect also needs to be examined in detail.
5.38 The Secretary clarified that the SPV under consideration in the present agenda is basically
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a joint venture of Railways primarily with State governments and some other authorities. The
SPV is tasked with building, construction and owning the railway line and the ancillary
infrastructure and then the infrastructure is made available to the railways to run the trains. He
clarified that this service of use of the railway line and other ancillary infrastructure is one
service that is currently being considered for exemption. He further stated that the other service
that is being considered for exemption is the maintenance of railway lines which is being done
by the railways for the SPVs. Therefore, he clarified that there is flow of services in both
directions. He stated that railways uses this infrastructure to further provide services to its
customers, both passenger and freight. He stated that other than Department of Posts, Railways
is the only organisation in the Government of India that is providing commercial services
to the citizens. If similar organizations exist in States, they can be considered. He further
clarified that seven of these SPVs pertain to the period prior to implementation of GST and
they have already paid the taxes whether it was excise duty or VAT etc. Now, they are not able to
take any input tax credit for those whereas the whole value of the services that they are
providing at present gets taxed. In effect, it becomes a case of double taxation. He further
stated that the services provided by railways are either exempt such as non-AC passenger
services, transport of agriculture produce or they are chargeable at 5% such as freight services.
Therefore, if these exemptions are not provided, then these SPVs might not come up in the
future. Many of these SPVs are in joint venture with State governments. He elaborated that this
is the reason the Fitment Committee has recommended that these services be exempted from
the payment of GST. He further stressed that it is only a B2B service. He also clarified that
if there are any such entities they should be considered for same exemption on the same
principle.
5.39 The Hon’ble Member from Telangana stated that he appreciates the exemption given for
transactions between SPVs and railways. He stated that their request for the same exemption to be
extended to the States especially where the state governments are building residential schools
and integrated residential schools, with a welfare concept, for the children who are not able to
afford their education. He stated that at present GST at 18% is collected on these services and
requested that the same may be considered for reduction on similar lines.
5.40 The Hon’ble Member from Kerala stated that there is still no clarity as to the services
that are being rendered by these SPVs and at present many SPVs are providing a large
number of commercial services. He further gave the example of a proposal for creating a SPV
between railways and a public sector steel company in Kerala, for making the bogies and
wheels. He stated that although this SPV did not materialise there could be such similar cases and
therefore, there is a need to create a level playing field. Further, he stated that many SPVs are
getting created and that if those organizations are being exempted from tax then it needs to be
seen as to how it will affect the economy. He reiterated that there is no clarity as to the nature
of services to be exempted. However, he stated that if the intention is to exempt seven
organizations which were created before the advent of GST as stated earlier then they can be
specifically exempted. He reiterated that in the name of SPVs with railways, if we are extending it
to all without properly mentioning about the services and details then it will affect the revenue and
that it is a cause for concern.
5.41 Joint Secretary, TRU clarified that when the agenda was discussed in the 48th Council
meeting, the only transaction that were clarified to be taxable were the services which the Indian
Railways were providing to the SPVs for maintaining the railway lines and by the SPVs to
the Railways for use of the Railway lines. She stated that the present proposal is to only
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exempt the services provided by SPV to Indian Railways by way of allowing railways to use the
infrastructure built and owned by SPV during the concession period against consideration and to
exempt the maintenance services supplied by Indian Railways to SPV from GST.
5.42 The Hon’ble Chairperson stated that the Ministers are right in raising this question
because it may include so many different other services and therefore, she requested Joint
Secretary, TRU to identify in the agenda as to where these services are clearly specified.
5.43 Additional Secretary, DoR further elaborated on the incidence of tax in case of SPV. He
stated that in case of an SPV that is asked to build a railway line that is for last mile connectivity
to a Port etc., then the GST paid by that SPV is 18% only. SPV is paying the 18% GST on
the construction that is being undertaken by them and Centre and States are getting their tax
share. Similarly, if railways is plying a carriage train or a passenger train on that railway line
then the railways is levying the applicable GST on the passenger ticket or the freight charges
and the same is being paid by the railways. He further elaborated that there is an agreement
between the railways and the SPVs for using that railway line and maintenance of same. The
complexity in the transaction is that the tax has already been paid. He stated that in this case,
railways is Government of India and the SPVs is functioning with the Government of India and
the tax payable on the construction cost has been paid by the SPV. Therefore, he stated that
this transaction that we are trying to tax as a service may not be adding to revenue but only making
the business of railways cumbersome and that is the reason why railways are seeking this
exemption. He further stated that this is not similar to the example raised by Telangana. If a school
is being built, GST is applicable on the cost of construction by whoever builds it, it may be the
PWD or any agency, just as in case of projects done by SPVs created by railways. He further stated
that as the Secretary had explained, it is basically a transaction between railways and SPV which in
any case if GST were to be imposed, it should be available as a tax credit which could be adjusted
against the tax to be paid by the SPV or by the railways. He stated that if this exemption is
provided then it makes it easier for the railways to run such SPVs. He stated that such
transactions are not being taxed at state level such as a MoU was signed by state government and a
corporation created to do public good functions for the government, the transactions are not being
taxed.
5.44 The Secretary in response to the question raised by the Hon’ble Member from Kerala as
to whether the exempted service is specifically identified in the agenda stated that it is specifically
provided for in page 43 of the Agenda Volume II. He stated that it is specifically stated therein that
‘Supply of services by SPV to Indian Railways by way of allowing it to use infrastructure built and
owned by them during the concession period against consideration in the form of pro rata share of
revenue is a taxable supply which are proposed to be exempt. Similarly, maintenance services
supplied by Indian Railways to SPV are also taxable’. He further stated that as already
mentioned and discussed in the Officers’ meeting, if there are similar requests or similar
situation in any States it will be examined and considered on case to case basis. He stated that
as already clarified by Additional Secretary DoR, if some work is given by the Government of
Telangana, Maharashtra or any other State to its SPV then those cases are generally not taxable.
However, he further stated that there will be incidence of tax on the supply or the work done by
the SPV or by the PSU on behalf of the Government when it does construction work. He stated that
in the present case also there is incidence of tax on the construction done by the SPV. Similarly, he
stated that we cannot and should not exempt the State PSU or Centre when it is getting the
work done. He elaborated that this situation is arising because this is in form of a service and
also, because railways is acting as a business entity. Generally, State government is not acting as
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a business entity and this issue does not arise as it is treated as a grant or a subsidy. Therefore, he
clarified that it can be considered on case to case basis as already discussed and agreed to in the
Officers’ meeting and that such cases will be examined, if there are similar situations whether in
Maharashtra or Tamil Nadu or Kerala or Telangana or any other State. The Secretary requested the
Members of the Council to approve the agenda with this suggestion to examine similar cases on
case to case basis in the future.
Decision: The Council approved the recommendations of the Fitment Committee to
exempt GST on services provided by SPV to Ministry of Railways (Indian Railways) by way
of allowing Ministry of Railways (Indian Railways) to use infrastructure built and owned by
SPV during the concession period against consideration and maintenance services supplied
by Ministry of Railways (Indian Railways) to SPV. The Council also recommended to
regularize the past cases on ‘as is where is’ basis.
5.45 Joint Secretary, TRU then presented the next agenda item relating to exemption or
regularization of payment of GST on reinsurance services of specified general and life
insurance schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY) , Rashtriya Swasthya
Bima Yojna, Janshree Bima Yojna for the period from 01.07.2017 to 24.01.2018. She stated that
the issue of exemption of reinsurance services of the specified insurance schemes for the
period from 01.07.2017 to 24.01.2018 was discussed in the 47th GST Council meeting but no
change was recommended. The issue has been re-examined and the Fitment Committee viewed
that the issue is for a brief period of 7 months only before exemption was granted to reinsurance of
specified insurance schemes covered by Sl. Nos. 35 & 36 of notification No. 12/2017-CT (Rate).
The Fitment committee has recommended to regularize the payment of GST on reinsurance
services of specified insurance schemes covered by Sl. Nos. 35 & 36 of Notification No. 12/2017-
CT (Rate) for the period from 01.07.2017 to 24.01.2018 on ‘as is where is’ basis through
issuance of a Circular.
Decision: The Council approved the recommendation of the Fitment Committee to regularize
the payment of GST on reinsurance services of specified insurance schemes covered by Sl.
Nos. 35 & 36 of Notification No. 12/2017-CT (Rate) for the period from 01.07.2017 to
24.01.2018 on ‘as is where is’ basis through issuance of a circular.
5.46 Joint Secretary, TRU then presented the next agenda item relating to a request to clarify
that reinsurance services of the insurance schemes for which total premium is paid by the
Government (Sl. No. 40 of the notification No. 12/2017 CTR) are exempt from GST for the
period 01.07.2017 to 26.07.2018. She stated that in the 28th GST Council meeting held on
21.07.2018, it was decided to exempt re-insurance of insurance schemes already exempt
under Sl. No. 40 of Notification No. 12/2017-CTRThe said exemption was notified w.e.f.
27.07.2018. The issue was examined by the Fitment Committee and it recommended to
regularize the payment of GST on reinsurance services of the insurance schemes for which
total premium is paid by the Government (Sl. No. 40 of Notification No. 12/2017-CT(R)
dated 28.06.2017) for the period from 01.07.2017 to 26.07.2018 on ‘as is where is’ basis by way
of issuance of a Circular.
Decision: The Council approved the recommendation of the Fitment Committee to regularize
the payment of GST on reinsurance services of the insurance schemes for which total
premium is paid by the Government (Sl. No. 40 of Notification No. 12/2017-CT(R) dated
28.06.2017) for the period from 01.07.2017 to 26.07.2018 on ‘as is where is’ basis by way of
issuance of a Circular.
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5.47 Joint Secretary, TRU then presented the next agenda item relating to a request to clarify
whether the term ‘reinsurance’ as mentioned at Sl. No. 36A of notification No. 12/2017- CT
(Rate) dated 28.06.2017 includes ‘retrocession’ services and therefore whether retrocession
services of specified insurance schemes are also eligible for exemption from GST. She stated that
the issue was examined by the Fitment Committee and it recommended that the issue may be
clarified through a Circular that the term ‘reinsurance’ as mentioned in Sl. No. 36A of notification
No. 12/2017- CT(R) dated 28.06.2017 includes ‘retrocession’.
Decision: The Council approved the recommendation of the Fitment Committee to clarify
that the term ‘reinsurance’ as mentioned in Sl. No. 36A of notification No. 12/2017- CT(R)
dated 28.06.2017 includes ‘retrocession’
5.48 Joint Secretary, TRU presented the agenda item pertaining to a request to clarify the
taxability of the incentive amount that is shared by acquiring bank with other stakeholders in the
digital payment ecosystem. This incentive amount is being paid by MeitY to acquiring banks to
boost digital transactions in the country under the Incentive Scheme for promotion of RuPay
Debit Cards and low value BHIM-UPI transactions.

Based on the recommendations of the GST Council in its 48th meeting, it was clarified that
incentives paid by MeitY to acquiring banks under the said scheme are in the nature of subsidy
and thus not taxable. She stated that the present request is for clarification regarding incentive
amount that is further shared by acquiring bank with other stakeholders in the digital payment
ecosystem. The issue was examined by the Fitment Committee and Fitment Committee
recommended to issue a clarification that further sharing of the incentive, where such incentive is
clearly defined under Incentive Scheme for promotion of RuPay Debit Cards and low value
BHIM-UPI transactions and is distributed in the proportion and manner as decided by NPCI in
consultation with the participating banks, is not taxable.
Decision: The Council approved the recommendation of the Fitment Committee to clarify
that further sharing of the incentive amount by the acquiring bank with other
stakeholders, up to the point where the incentive is distributed in the proportion and manner
as decided by NPCI in consultation with the participating banks under the notified
Incentive Scheme for promotion of RuPay Debit Cards and low value BHIM-UPI
transactions, is in the nature of a subsidy and is thus, not taxable.
5.49 Joint Secretary, TRU presented the agenda item relating to a request to clarify whether GST
is applicable on the statutory collections made by the Real Estate Regulatory Authority (RERA) in
accordance with the Real Estate (Regulation and Development) Act, 2016. This issue was
deferred in the 52nd Council meeting held on 07.10.2023. The issue of whether RERA is a
‘governmental authority’ being an authority set up by an Act of Parliament was considered by
the Fitment Committee and the Fitment Committee has recommended to clarify by way of a
circular that RERA is a governmental authority and statutory collections made by the RERA are
covered under the scope of entry at Sl. No. 4 of Notification No. 12/2017-CT(R).
Decision: The Council approved the recommendation of the Fitment Committee to clarify by
way of a circular that RERA is a governmental authority and statutory collections made by
the RERA are covered under the scope of entry at Sl. No. 4 of Notification No. 12/2017-
CT(R).
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5.50 Joint Secretary, TRU presented the agenda item pertaining to a request to clarify whether
service by way of hostel accommodation, service apartments /hotels booked for longer period is a
service of renting of residential dwelling for use as residence and exempted as per entry no. 12
of the notification No. 12/2017-CT (Rate) dated 28/06/2017 and also a request for GST
exemption on hostels for poor and middle-class students run by charitable trusts. The Fitment
Committee has recommended that a new entry may be inserted under Heading 9963 in the
exemption notification to exempt supply of accommodation services up to Rs.15000/- per person
per month provided the accommodation service is supplied for a minimum continuous period of 90
days. She stated that during the Officers’ meeting, there was a suggestion received that for the past
cases, if they meet the current condition, a provision may be inserted for regularizing them
on ‘as is where is’ basis. Further, the Fitment Committee has recommended that an explanation
may be inserted in Sl. No. 12 of Notification No. 12/2017-CT(R) dated 28.06.2017 which exempts
services by way of renting of residential dwelling for use as residence as below:
“Explanation,- Nothing contained in this entry shall apply to:
accommodation services for students in student residences; and accommodation services
provided by Hostels, Camps, Paying Guest accommodations and the like.” The Fitment
Committee also recommended that Heading 9963 may be deleted from Column No. 2 in
the Sl. No. 12 in the Notification No. 12/2017- CT (R).
5.51 The Secretary clarified that the proposed exemption is Rs. 15,000/- per person per month
and there was also a suggestion to raise this limit to Rs. 20,000/- per person per month and also to
remove the condition of per bed. He stated that, if the Council agrees, the limit can be increased
because there can be cases especially in metros like Delhi, Bangalore, Mumbai etc. where the
monthly rentals are higher than at smaller places. The Secretary noted that all the Members have
agreed to the suggestion of increasing the limit to Rs. 20,000/- per person per month.
5.52 The Hon’ble Member from Karnataka requested to have a relook at the issue relating to
Hostels pertaining to regularizing the past period on ‘as is where is’ basis as the Hon’ble High
Court of Karnataka has held that hostels be treated as residential facilities in certain cases. He
stated that therefore, if a decision is taken to regularise past cases on ‘as is where is’basis, then it
needs to be analysed what would be its implication vis-à-vis the court order. He stated that this
needs to be looked into comprehensively to see whether it contradicts the order of the Hon’ble
Court. The Secretary requested Joint Secretary, TRU to elaborate on this issue with respect to
whether the same has been considered by the Fitment Committee while making the
recommendation. The Joint Secretary, TRU stated that while the department has filed an appeal
against the order of the Hon’ble High Court of Karnataka, the entry exempting residential dwelling
(Sl. No. 12 of the notification No. 12/2017-CT(R) dated 28.06.2017) as it stands in the
Notification also includes the heading for other accommodation services like hostels and this
inclusion has created confusion. She stated that the second proposal of the Fitment Committee to
insert an explanation at Sl. No. 12 of the notification No. 12/2017-CT(R) dated 28.06.2017 is for
clearing this confusion. The Secretary clarified that the proposal to insert an explanation is to
clear the confusion.
Decision: The Council approved the recommendations of the Fitment Committee and
modified the same to the extent discussed above:
a. To insert a new entry under Heading 9963 in the exemption notification to exempt
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supply of accommodation services upto Rs.20,000/- per person per month provided the
accommodation service is supplied for a minimum continuous period of 90 days.
b. To insert an explanation in Sl. No. 12 of Notification No. 12/2017-CT(R) dated
28.06.2017 which exempts services by way of renting of residential dwelling for use
as residence as below:
“Explanation,- Nothing contained in this entry shall apply to:
accommodation services for students in student residences; and
accommodation services provided by Hostels, Camps, Paying Guest accommodations
and the like.”
c. To delete Chapter heading 9963 from Column No. 2 in the Sl. No. 12 in the
Notification No. 12/2017- CT (R).
5.53 Joint Secretary, TRU presented the agenda item pertaining to Services as mentioned at
Annexure-V in the Agenda Volume-II wherein no change has been recommended by the
Committee. She stated that the agenda is relating to a request to give retrospective effect to the
amendment carried out in Notification No. 17/2017-CT(R) dated 28.06.2017 vide which bus
operators organized as companies were excluded from purview of Section 9(5) of CGST Act,
2017. The GST Council in its 52nd meeting recommended that bus operators organized as
companies may be excluded from the purview of section 9(5) of CGST Act, 2017 as this
would enable them to pay GST on their supplies using their ITC. She stated that the issue is
arising out of interim Order dated 04.04.2024 of the Hon’ble Delhi High Court wherein they
have directed to dispose of the representation of the petitioner. The request of the petitioner is
to give retrospective effect to the amendment carried out vide Notification 16/2023- CT(R) dated
19.10.2023 as recommended by the GST Council in its 52nd meeting and also, to suitably
amend the GST portal so that the lTC accumulated during the period 01.01.2022 to 19.10.2023 be
transferred to the ECO or refund of the ITC accumulated during the period of 01.01.2022 to
19.10.2023 be given to the applicant/petitioner. The issue was examined by the Fitment Committee
and it was recommended that the request of the petitioner may not be accepted.
Decision: The Council approved the recommendation of the Fitment Committee to not give
retrospective effect to the amendment carried out in Notification No. 17/2017-CTR.

6 . Agenda Item 5: Issues recommended by Goods and Services Tax Network (GSTN)
6.1 The Secretary introduced the agenda item relating to issues recommended by Goods and
Services Tax Network (GSTN) and asked the CEO, GSTN to present the agenda.
6.2 CEO, GSTN stated that there are two agenda items relating to GSTN. He stated that the
first agenda is regarding All India roll-out of the Biometric-based Aadhaar Authentication and
Document Verification System to contain the issue of bogus registrations carried out through
impersonation and other forms of misrepresentation. He stated that the Council has already
accorded approval for roll out of the scheme at All India level in a phased manner.
6.3 CEO, GSTN stated that the second agenda is regarding waiver of Interest on delayed
receipt of Advance User Charges (AUC) from a few states and CBIC and that this is a
regular administrative item. He requested the Council to waive the interest for the year 2022-
23, amounting to Rs. 27.61 crore and for 2023-24 amounting to Rs. 15.56 crore. He elaborated that
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these waivers are necessary as they cannot be shown as outstanding entries in the books of
accounts as GSTN is being regularly audited by Comptroller and Auditor General (CAG).
6.4 CEO, GSTN further stated that in the presentation made by GSTN before the Council
they regularly bring out the functionalities which have been rolled out in recent past and the
functionalities which are likely to be rolled out in the due course of time. He further stated that in
the interest of time with the permission of the Chairperson, the presentation would be circulated
to the Hon’ble Members as it is technical and more in the nature of what has been rolled out
and what will be rolled out in due course. He further stated that there is no formal approval
required from the Council however, he would like to flag the three important changes made for
the information of the Council.
6.5 The first change is that the GST council has approved GSTR-1A. This is a very important
facilitation measure because taxpayer will be able to correct GSTR-1 and then file GSTR-3B
which will ensure that the mismatch between GSTR-1 and GSTR-3B is completely removed. This
will reduce the notices which get issued on account of difference between GSTR-1 and GSTR-3B.
The second important change/facilitation measure is “invoice management system”. He stated
that now the recipients of the invoice will be given a facility to accept, reject or keep an
invoice pending. He clarified that this will be a facilitation measure and it will be for the taxpayer
to either use it or not and it will allow him to better manage his ITC. This will reduce the
difference between ITC available in GSTR-2B statement as well as in GSTR-3B thereby the gaps
will get reduced and the notices issued will also get reduced. He stated that the third important
point that he would like to bring to the notice of the Council is that Centre and all the States now
have transitioned and have started taking services of GSTN. It allows for improved administrative
efficiency in services, sharing of best practices and better guidance to GSTN as CBIC and all states
are now on the back office.
6.6 The Secretary thanked CEO, GSTN and informed the Council that the three changes
mentioned are by way of information and waiver of interest on delayed receipt of Advance
User Charges may be approved.
Decision: The GST Council approved the roll-out of the Biometric-based Aadhaar
Authentication and Document Verification System at All India level in a phased manner and
waiver of Interest on delayed receipt of Advance User Charges (AUC) and took note of the
functionalities rolled out/to be rolled out by GSTN.
7. Agenda Item 6: Recommendations of the 20th meeting of the IT Grievance Redressal
Committee for approval/decision of the GST Council
7.1 The Secretary presented the recommendations of the 20th meeting of the IT Grievance
Redressal Committee (ITGRC) on the data fixes carried out by GSTN as per the Standard
Operating Procedure approved by the Council, as detailed in the agenda notes. The 20th meeting of
the IT Grievance Redressal Committee (ITGRC) was held on 12th January, 2024 to resolve the
grievances of the taxpayers arising out of the technical problems faced by them on the GSTN portal
in relation to GST compliance filings. He stated that the Committee made recommendations
regarding 38 technical issues. Of these, 3 data fixes were carried out as per directions of the
Hon’ble Courts. The Secretary then sought the comments of the Hon'ble Members of the Council
on the recommendations of ITGRC and requested the Council to approve the same.
Decision: The GST Council approved the recommendations made by the ITGRC during its
20th meeting and took note of the data fixes carried out by GSTN.
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8. Agenda Item 7 (a) : Review of revenue position under Goods and Services Tax.
8.1 The Joint Secretary, Department of Revenue presented the Agenda to the Council. He stated
that a good growth rate was being seen on the GST front. He informed the Council that for the
month of May 2024, revenue of ₹1.72 lakh crore was recorded reflecting a 10% growth compared to
the same month in the previous year. In April 2024, a historic high was achieved with revenue of
₹2.1 lakh crore.
8.2 He presented to the Council the details of IGST settlement and informed that the last year
saw a negative balance of ₹5,516 crore, indicating that the Centre paid more in IGST settlements to
the States than the actual IGST collections and that the current year presents a similar challenge,
with a negative balance of ₹10,304 crore as of the end of May 2024. He further if the negative
balance continues, the same shall be recovered from the IGST ad-hoc settlements made so far to the
States.
8.3 He also presented the status of Compensation Cess and informed that at the end of last year,
there was a negative balance of ₹19,000 crore. After considering the collections for the current year,
estimated compensation to be paid to the States, and after accounting for part repayment of back-to-
back loans and interest during the year, there will still be balance of approximately ₹1,00,000 crore
of the back-to-back loan to be repaid. He further informed that based on the current trend, it is
expected that the back-to-back loan would be fully repaid during the later part of the FY 2025-26.
8.4 He further presented the status of the receipt and processing of AG’s certificate from the
States for release of compensation. It was further pointed out after submission of the agenda items
for discussion, compensation cess has been received from West Bengal, Punjab, Sikkim and Tripura
and the same has already been taken for payment. He urged the remaining States to expedite the
finalization of AG’s certificate.
8.5 The Secretary clarified the issue regarding IGST settlement, especially the negative balance
observed last year. He explained that the lower IGST collections are due to the initial accumulation
of IGST, which was not being utilized. With increased capital expenditure, the ITC is now being
used, resulting in lower IGST collections. The Secretary emphasized the need to address this
negative trend, hoping it will reverse to the surplus levels seen in the early years of GST and if the
trend does not reverse, measures will need to be taken to recover the shortfall. He informed that the
Centre does not retain any excess amounts and distributes the collected IGST among the States as
per the agreed formula.
8.6 The Additional Secretary, DoR added that this is the first year the Centre has maintained a
negative balance in the IGST settlement account due to its conversion into a continuous account.
Previously, the account balance was finalized on March 31st each year, regardless of whether it was
positive or negative. With the new continuous account system, States will have ongoing
transparency regarding the actual balance, even beyond the financial year-end.

8.7 The Hon’ble Member from Kerala highlighted the issues related to the principle of IGST,
particularly in a consumer State like Kerala where a significant portion of goods comes from outside
of the State. He mentioned that it is no body’s case that IGST due to the States has been retained by
Centre. He informed that despite an increase in SGST and intra-state trade, IGST collections have
only seen a marginal 3% increase this year, indicating discrepancies in the way IGST settlement is
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made. He pointed out that many States face challenges in accurate IGST accounting, including
issues with State-level transfers, input tax credits, and instances of tax evasion, as highlighted in
studies conducted with Kerala. He emphasized the need to address these accounting, GSTN and
software-related issues to ensure accurate IGST flows and prevent misuse of IGST benefits without
underlying transactions. He underscored the importance of proper apportionment and the need to
enhance the GST system, as discussed previously regarding e-commerce and place of supply
regulations.
8.8 The Hon’ble Chairperson emphasized the need for better understanding between State and
Central officials regarding IGST apportionments. She urged officials to meet and clarify the process,
stressing that the Centre has no role in retaining IGST funds meant for States. She highlighted that
IGST apportionment happens directly between States, and the Centre only keeps only its due share.
She noted that before her resuming charge of Ministry, an ad-hoc distribution of IGST was done
between Centre and States but later the reimbursement became difficult especially during COVID.
So, the Centre decided not to collect these funds from the States. She urged the Secretary to
coordinate with State officials for a joint meeting within the next 10 days to review IGST handling
since July 1, 2017, and to explain the apportionment process for clarity She emphasized the
importance of informed officials to communicate accurately with their Ministers and the media,
aiming to dispel misconceptions.
8.9 The Secretary assured that within the next ten days he will convene a meeting with State
officers to explain the IGST process and discuss any potential improvements.
8.10 The Hon’ble Member from Karnataka agreed with the Secretary’s suggestion for
monitoring the IGST balance to see if it turns from negative to positive. He emphasized for a
measured approach and to wait for a potential turnaround. He noted that a negative balance must be
adjusted eventually but suggested that any adjustments be made in consultation with the States to
allow for financial preparation. On the issue of Cess, the Hon’ble Member noted that annual
revenues from Cess is around ₹1.4 lakh crores, with liabilities totalling about ₹1 lakh crore. He
further expressed the possibility of redeeming all liabilities against the cess account before the end
of the financial year. Hon’ble Member urged to expedite decision on the long-term nature of the cess
and future course of action, if all liabilities are to be liquidated by year-end.
8.11 The Secretary clarified that the adjustment of Cess will not happen this year but next year.
8.12 The Joint Secretary, Department of Revenue reported that the total loan plus interest
amounts to about ₹3.15 lakh crores. By the end of last year ₹1.11 lakh crores has been repaid,
leaving approximately ₹2.04 lakh crores outstanding. After adjusting for this year's compensation
payments and the estimated collections of Cess, it is expected that ₹1 lakh crores shall remain.
8.13 The Hon’ble Chairperson clarified that compensation will not be cleared this financial year.
Agenda Item 7 (b) : GST Appellate Tribunal – Status Update and issues for approval
8.14 The Secretary then requested the Joint Secretary (DoR) to update the Council about the
current status of GST Appellate Tribunal (GSTAT) and the decisions of the GST
Implementation Committee (GIC) in this regard.
8.15 Joint Secretary, DoR stated that the President of GSTAT has been appointed and that he has
assumed office on 06th May, 2024. He further stated that the process of appointment of Judicial
Members, Technical Members (Centre) and Technical Member (State) to be done by the Centre is
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also in progress and expected to be completed by July/ August, 2024. He stated that the process
of setting up of physical and digital infrastructure for the State Benches in the different States is
ongoing and requested the States to expedite the process. He further requested the States to
prioritise the process of appointment of Technical Member (State) in the state benches so as to
enable DoR to make the GSTAT functional at the earliest and to ensure that the first hearing of the
Tribunal happens in the present year itself and does not get delayed further.
8.16 He further informed the Council that there have been requests from the States for relaxation
in the eligibility conditions of State officers for the post of Technical Member (State). He stated that
most of these requests have been approved by the GIC and the same (Annexure 1 of the Agenda
item) are being placed before the GST Council for approval. However, the proposals of Delhi and
Chhattisgarh relating to request to reduce the requirement of the officer having completed twenty
five years in the Government in Group A, or equivalent, to be eligible for Technical Member (State)
and the proposals of Maharashtra, Gujarat and Mizoram relating to request to notify the rank of
officer working in the State, not lower than the rank of the First Appellate Authority, who
would be eligible for Technical Member (State) could not be processed through GIC and therefore,
the same are as placed as formal agenda for approval by the GST Council. He further stated that
there has been a request from some States for a draft notification for relaxation of the
qualification and eligibility for appointment as Technical Member (State) and for the purpose of
ensuring uniformity. The same is being placed before the GST Council for approval.
8.17 With respect to notification for constitution of Principal Bench and State Benches, Joint
Secretary, DoR stated that Notifications in this respect were issued in September, 2023 and
December, 2023. He further stated that there is a requirement to notify the location of the bench
where sittings of the benches are in more than one place and accordingly, a draft Notification is
placed in the agenda for approval by the GST Council. He further informed the Council that there
are 4 decision points. The first is that Puducherry and Panaji which were earlier notified as full
sitting of a Bench but considering that they have less than 50,000 registrants, it is now proposed
to treat them as Circuit Benches and the Notification has been accordingly modified. He stated that
Andhra Pradesh has requested to change the location of the bench from Vishakhapatnam to
Vijayawada and has requested for additional sitting at Vishakhapatnam. He stated that these
changes have been incorporated in the Notification. He further stated that a request has been
received from Tamil Nadu to change the location of the second bench to Madurai instead of
Coimbatore and Coimbatore would be an additional sitting. Further, for the State of Chhattisgarh
the Notification issued in September, 2023 had specified Raipur and Bilaspur as location of Benches
but now the State has now requested for deletion of Bilaspur. He stated that these changes be
incorporated in the draft Notification placed for approval of the Council and the same may be
approved.


Decision: The Council took note of the status update with regard to GSTAT and the
decisions of GIC with respect to the relaxation in qualifications and eligibility conditions for
appointment of Technical Member (State) and approved the draft notifications as proposed by
DoR:
a. To be issued by States for relaxing the eligibility conditions for Technical Member
(State)
b. Specifying the location of Benches and sittings associated with the Benches.
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9. Agenda Item 8: Performance Report of the Anti-profiteering authorities for the 2nd
quarter (July to September 2023) 3rd quarter (October to December 2023) and 4th quarter
(January to March, 2024) for the information of the GST Council
9.1 The Secretary presented the Agenda No. 8 regarding Performance Report of Competition
Commission of India (CCI) for the 2nd, 3rd and 4th quarter of F.Y 2023-24 along with the
Performance Report of State Level Screening Committee (SLSC), Standing Committee (SC) and
Directorate General of Anti- Profiteering (DGAP) for the information of the Council.
Decision: The Council took note of the same and approved the Agenda.
10. Agenda Item 9: Ad-hoc Exemptions Orders issued under Section 25(2) of the Customs
Act, 1962 to be placed before the GST Council for information
10.1 The Secretary informed the Council that three Ad-hoc exemption orders had been issued
since last meeting of the GST Council. The First Order No. 01 of 2024 dated 01/02/2024
pertained to exemption from Customs duty on import of technical documentation by M/s Indo-
Russian Rifles Pvt. Ltd, the second Order No. 02 of 2024 dated 10/05/2024 was regarding Joint
Counter Terrorism Training exercise (TARKASH- VII) between US special forces & NSG at
Kolkata during April-May 2024 and the third Order No 03 of 2024 dated 31.05.2024 was
regarding Waiver of Customs duty u/s 25(2) of the Customs Act, 1962 for import of 04 armoured
vehicles by MEA.
Decision: The Council took note of the ad-hoc exemption orders issued.
11. The Hon’ble Chairperson stated that she would like to place for consideration and advice
before the Council the issue of rate rationalization currently under consideration of the GoM on
Rate Rationalization which had been reconstituted recently under a new Convener. She stated that it
is an issue of concern and urgency therefore, she requested the Council to advise as to whether
it will be possible to meet in a day long meeting to initiate the discussion on rate rationalization
over and above the other items that can come up in the agenda. She further clarified that by initiating
she meant whether the Group of Ministers could give the Council a position or status report as
to the extent of work which they have taken up and whether they have reached any conclusion or
would they be requiring any further time. She stated that the Members of the Council can inform
as to whether a meeting can be held in end of August or early September after the budget session of
Parliament to focus on the issue of rate rationalization. She stated that some more agenda items
pertaining to Law and Fitment Committee recommendations still needed to taken up in the next
meeting along with the issue of rate rationalization. The Hon’ble Chairperson thanked each one of
the Hon’ble Members of the Council for their participation and stated that she felt humbled to be in
their august company. She stated that the GST Council has stood out as an exemplary body even
during the pandemic and that she could not thank each one of the Members sufficiently as the
Council had worked through trying times and has been a perfect example of co-operative
federalism. She assured that she would work together with the Members of the Council to make
GST an exemplary tax structure, digitally run and transparent. The Hon’ble Chairperson admired
the commitment of the Council Members to prioritize revenue consideration, taxpayer
friendliness and not burdening the ordinary taxpayer at all times which have been the only
considerations for decision making in the Council.
11.1 The Secretary noted that the Hon’ble Members concurred with the proposal to take up the
issue of rate rationalization in the next meeting of the GST Council.
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11.2 The Joint Secretary, GST Council Secretariat then thanked the Hon'ble Chairperson, the
Hon'ble MoS (Finance), the Hon'ble Members of the GST Council and all the officers for their
active participation in the 53rd GST Council Meeting.
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Annexure-1
List of Hon'ble Ministers from States/UTs who participated in the 53rd Meeting of the GST
Council held on 22nd June, 2024
Sr.
No.
Centre/States
/UTs Name of Hon'ble Minister Charge
1 GOI
Smt. Nirmala Sitharaman
Union Finance Minister
2 GOI
Shri Pankaj Chaudhary
Minister of State for Finance
3 Andhra Pradesh
Shri. Payyavula Keshav
Minister for Finance, Planning,
Commercial Taxes and Legislative affairs
4 Assam
Smt. Ajanta Neog
Finance Minister
5 Bihar
Shri. Samrat Choudhary
Deputy Chief Minister/Minister of
Commercial Tax
6 Chhattisgarh
Shri. O. P. Choudhary
Minister of Finance & Commercial Tax
7 Goa
Dr. Pramod Sawant
Chief Minister/Finance Minister
8 Gujarat
Shri Kanubhai Desai
Minister for Finance
9 Haryana
Shri. J.P. Dalal
Deputy Chief Minister/Finance Minister
10 Himachal Pradesh Shri. Harshwardhan
Chauhan
Industries Minister
11 Jammu &
Kashmir
Shri. R. R. Bhatnagar Advisor to Hon’ble Lieutenant Governor
12 Karnataka Shri. Krishna Byre Gowda Minister for Revenue Department
13 Kerala Shri. K. N. Balagopal Finance Minister
14 Madhya Pradesh

Shri. Jagdish Devda
Deputy Chief Minister/Minister of
Commercial Tax & Finance
15 Manipur
Dr. Sapam Ranjan Singh
Minister for Medical, Health & Family
Welfare Department and Publicity &
Information Department
16 Meghalaya Shri. Conrad K. Sangma Chief Minister
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17 Mizoram Dr. Vanlalthlana Minister Taxation Department
18 Odisha Shri. Kanak Vardhan Singh
Deo
Deputy Chief Minister
19 Puducherry Shri. K. Lakshmi
Narayanan
Minister for Public Works
20 Punjab Shri. Harpal Singh Cheema Finance Minister
21 Rajasthan Shri. Gajendra Singh
Khimar
Minister of Medical Health and Services
(ESI)
22 Sikkim Shri. G.T. Dhungel Minister for Health & Family Welfare
Department and Culture Department
23 Tamil Nadu Shri. Thangam Thennarasu Minister for Finance and Human
Resources Management
24 Telangana Shri. Mallu Bhatti
Vikramarka
Deputy Chief Minister/Minister for
Finance
25 Tripura Shri. Pranajit Singha Roy Finance Minister
26 Uttar Pradesh Shri. Suresh Kumar Khanna Minister of Finance, Parliamentary
Affairs
27 Uttarakhand Shri. Premchand Aggarwal Finance Minister
28 West Bengal Smt. Chandrima
Bhattacharya
Finance Minister


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Annexure – 2
List of Officers from Centre and the States/UTs who participated in the 53rd Meeting of the
GST Council held on 22nd June, 2024
S.
No.
CBIC/State/GSTC/GO
I/GSTN/DoR/TRU/Poli
cy Wing/Directorates
Name of the Officer Designation/Charge
1 DoR
Shri Sanjay Malhotra Revenue Secretary
2 CBIC Shri Sanjay Kumar Agarwal Chairman, CBIC
3 CBIC Shri Shashank Priya Member (GST)
4
CBIC
Shri Rajiv Talwar
Member(Compliance
Management)
5 CBIC
Shri Vivek Ranjan
Member (Tax Policy
and Legal)

6 CBIC

Shri. Aditya Bhardwaj

OSD to Chairman

7 DoR
Shri Vivek Agarwal
Additional Secretary
(Revenue)

8 DoR
Shri. Balasubramanian
Krishnamurthy

Joint Secretary (TPRU)

9 DoR Deepak Kapoor OSD to Revenue
Secretary
10 DoR Shri. Mohd. Suboor Khan Assistant Secretary
11 DoR Shri. Yashwant Meena Assistant Secretary
12 DoR Ms. Priyanshu Khati Assistant Secretary
13 Government of India Shri. S. S. Nakul PS to FM
14 Government of India Shri. Anirudh Sravan Pulipaka PS to Corporate Affairs
Minister
15 Government of India Shri. Alkesh Uttam OSD to MoS
16 DGGST Ms. Seema Arora Pr. Director General
17 DGGST Shri. T. Manjunath Additional Director
18 DGGI Shri. Anil Kumar Gupta Pr. Director General
19 DG Systems Shri Yogendra Garg Pr. Director General
20 GSTN Shir. Manish Kumar Sinha CEO
21 GSTN Shri. Dheeraj Rastogi EVP
22 GSTN Shri. Om Sharma CTO
23 GSTN Shri. Naveen Agarwal OSD to CEO
24 GST Policy Wing Shri. Sanjay Mangal Principal Commissioner
25 GST Policy Wing Shri. Gaurav Singh Commissioner
26 GST Policy Wing Shri. Raghavendra Pal Singh Additional
Commissioner
27 GST Policy Wing Dr. Gurbaz Sandhu Additional
Commissioner
28 GST Policy Wing Smt. Kangale Shrunkhala Motiram Additional
Commissioner
29 GST Policy Wing Shri. Nitesh Gupta Deputy Commissioner
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30 GST Policy Wing Ms. Soumya Deputy Commissioner
31 GST Policy Wing Ms. Saumya Gupta Deputy Commissioner
32 TRU Ms. Limatula Yaden Joint Secretary
33 TRU Dr. Puneeta Bedi Director
34 TRU Shri. Rakesh Dahiya Director
35 TRU Ms. Amreeta Titus Deputy Secretary
36 TRU Shri. Satvik Dev OSD, TRU-II
37 TRU Ms. Smita Roy TO, TRU-II
38 TRU Ms. Anna Sosa Thomas TO, TRU-II
39 TRU Shri. Rahul Kumar TO, TRU-II
40 TRU Shri. Dilmil Singh Soach OSD, TRU-I
41 TRU Shri. Piyush Kumar Ankit TO, TRU-I
42 TRU Shri. Vikram Wanare US, TRU-I
43 TRU Shri. Anany Kumar Singh OSD,TRU-I
44 GST Council Secretariat Shri. Pankaj Kumar Singh
Additional Secretary
(GST Council
Secretariat)
45 GST Council Secretariat Ms. Ashima Bansal Joint Secretary
46 GST Council Secretariat Ms. B. Sumidaa Devi Joint Secretary
47 GST Council Secretariat Shri. Kshitendra Verma Director
48 GST Council Secretariat Shri. S.S.Shardool Director
49 GST Council Secretariat Shri. Anil Kumar Deputy Secretary
50 GST Council Secretariat Ms. Reshma R Kurup Under Secretary
51 GST Council Secretariat Shri. Sridhar Das Under Secretary
52 GST Council Secretariat Ms. P. R. Reshmi Under Secretary
53 GST Council Secretariat Shri. Vineet Kumar Superintendent
54 GST Council Secretariat Ms. Sonia Superintendent
55 GST Council Secretariat Shri. Mohan Lal Superintendent
56 GST Council Secretariat Ms. Ambika Rani Superintendent
57 GST Council Secretariat Shri. Niranjan Kishore Superintendent
58 GST Council Secretariat Shri. Sandeep Kumar Superintendent
59 GST Council Secretariat Shri. Khupmang Neihsial Superintendent
60 GST Council Secretariat Shri. Himanshu Bhardwaj Superintendent
61 GST Council Secretariat Shri. Pankaj Kumar Singh Superintendent
62 GST Council Secretariat Shri. Ashwani Sharma Assistant Section
Officer
63 GST Council Secretariat Shri. Anand Singh Inspector
64 GST Council Secretariat Shri. Karan Arora Assistant Section
Officer
65 GST Council Secretariat Shri. Shyam Bihari Meena Tax Assistant
66 GST Council Secretariat Shri. Vikas Kumar E. A.
67 GST Council Secretariat Ms. Neha Jainwal E. A.
68 GST Council Secretariat Shri. Rantej Singh T. A.
69 GST Council Secretariat Shri. Satbir Sah T. A.
70 Andhra Pradesh Shri. M. Girija Shankar
Chief Commissioner of
State Tax
71 Andhra Pradesh Shri. K. Ravi Sankar Commissioner (ST),
Policy
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72 Andhra Pradesh Shri. J.V.M. Sarma
Additional
Commissioner(ST),
Appellate Authority
73 Arunachal Pradesh Ms. Y. W. Ringu Commissioner Finance,
Tax & Excise
74 Arunachal Pradesh Shri. Lobsang Tsering Commissioner, Tax &
Excise
75 Arunachal Pradesh Shri. Tapas Dutta Deputy Commissioner
Tax & Excise
76 Assam Shri. Jayant Narlikar Commissioner &
Secretary, Finance
77 Assam Shri. Pallav Gopal Jha Principal Commissioner
of State Tax
78 Assam Md. Shakeel Saadullah Special Commissioner
of State Tax
79 Assam Shri Bedabrata Saikia Superintendent
80 Bihar Dr. Pratima
Commissioner cum
Secretary Commercial
Taxes
81 Bihar Shri. Krishna Kumar Joint Secretary,
Commercial Taxes
82 Bihar Shri. Binod Kumar Jha
Additional
Commissioner State
Tax
83 Bihar Shri. Murli Prasad Singh P.S. to Hon'ble Deputy
CM
84 Bihar Shri. Ranjeet Kumar
OSD Commercial
Taxes Department,
Bihar
85 Chandigarh Shri. Rupesh Kumar Excise & Taxation
Commissioner
86 Chandigarh Shri. Harpreet Singh Assistant Excise &
Taxation Commissioner
87 Chhattisgarh Shri. Mukesh Bansal Secretary, Finance &
Commercial Tax
88 Chhattisgarh Shri. Pratik Jain
Additional
Commissionerof State
Tax
89 Delhi Shri. A Anbarasu Principal Commissioner
(State Tax)
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90 Delhi Shri. Ajay Kumar Bisht Special Commissioner
(State Tax)
91 Delhi Ms. Kriti Garg Special Commissioner
(State Tax)
92 Delhi Shri. Karanjit Vadodaria
Additional
Commissioner (State
Tax)
93 Goa Shri. Upendra Joshi OSD to CM
94 Goa Shri. S.S.Gill Commissioner of State
Tax
95 Goa Shri. Vishant S.N.Gaunekar
Additional
Commissioner of State
Tax-I
96 Gujarat Shri. J.P. Gupta Additional Chief
Secretary
97 Gujarat Shri. Samir Vakil Chief Commissioner of
State Tax
98 Gujarat Shri. Milind Kavatkar Joint Commissioner,
Commercial Taxes
99 Haryana Shri. Devinder Singh Kalyan
Principal Secretary to
Government Haryana,
Excise and Taxation
Department
100 Haryana Shri. Harsh Singh
Additional
Commissioner, TRU,
Excise and taxation
Department
101 Haryana Shri Hemant Kumar
Additional
Commissioner, GST,
Excise and taxation
Department
102 Himachal Pradesh Dr. Yunus Commissioner of State
Tax and Excise
103 Himachal Pradesh Shri. Rakesh Sharma
Additional
Commissioner of State
Tax & Excise
104 Jammu & Kashmir Shri.Sajad Hussain Ganai
Director General,
Expenditure Div-I,
Finance
105 Jammu & Kashmir Namrita Dogra Additional
Commissioner, State
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Taxes
106 Jharkhand Smt. Vipra Bhal Secretary, Commercial
Taxes
107 Jharkhand Pradeep Xalxo Joint Commissioner
108 Jharkhand Shri. Brajesh Kumar Assistant
Commissioner of Taxes
109 Karnataka Ms. C. Shikha Commissioner
Commercial Tax
110 Karnataka Dr. Ravi Prasad Additional
Commissioner CT
111 Kerala Dr. A. Jayathilak Additional Chief
Secretary
112 Kerala Shri. Patil Ajit Bhagwatrao Commissioner of State
Tax
113 Kerala Shri. Abraham Renn S Special Commissioner
(State Tax)
114 Kerala Smt. Sreelakshmi R
Additional
Commissioner (State
Tax)
115 Kerala Shri. Sreekanth K P State Tax Officer
116 Madhya Pradesh Shri. Swatantra Kumar Singh Commissioner,
Commercial Tax
117 Madhya Pradesh Shri. Manoj Kumar Choubey
Additional
Commissioner,
Commercial Tax
118 Madhya Pradesh Shri. Dilip Raj Dewedi OSD to Hon'ble
Minister
119 Maharashtra Shri O. P. Gupta Additional Chief
Secretary (Finance)
120 Maharashtra Shri Asheesh Sharma Commissioner of State
Tax
121 Maharashtra Shri Kiran Shinde Joint Commissioner of
State Tax
122 Maharashtra Shri Manojkumar R. Narayanwal Deputy Commissioner
123 Maharashtra Shri B M Gore Deputy Commissioner
124 Manipur Smt. Mercina R. Panmei Commissioner of Taxes
125 Manipur Shri Y. Indrakumar Singh Joint Commissioner of
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Taxes
126 Meghalaya Shri. Ramakrishna Chitturi Commissioner of State
Tax
127 Meghalaya Shri. V.R.Challam
Deputy
Commissioner State
Tax
128 Mizoram Shri. R. Zosiamliana Commissioner of State
Tax
129 Mizoram Shri. HK Lalhawngliana
Additional
Commissioner of State
Tax
130 Nagaland Shri. Sachin Jaiswal Commissioner of State
Tax
131 Nagaland Shri. C Lima Imsong
Additional
Commissioner of State
Taxes
132 Odisha Shri. Vishal Kumar Dev Principal Secretary,
Finance
133 Odisha Shri. Sanjay Kumar Singh
Chief Commissioner of
Commercial Taxes &
GST
134 Odisha Shri. Nihar Ranjan Nayak
Additional
Commissioner of
Commercial Taxes &
GST
135 Puducherry Shri. Ashish Madhaorao More
Development
Commissioner -cum-
Secretary to Govt.
(Finance)
136 Puducherry Shri. L. Mohamed Mansoor Commissioner of State
Tax
137 Punjab Shri. Vikas Partap
Financial
Commissioner
(Taxation)
138 Punjab Shri. Varun Roojam Commissioner of State
Tax
139 Punjab Smt. Harsimrat Kaur Deputy Commissioner
of State Tax
140 Punjab Shri. Bharat Sharma State Tax Officer
141 Punjab Ms. Amritdeep Kaur State Tax Officer
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142 Rajasthan Shri. Ravi Kumar Surpur Chief Commissioner
State Tax
143 Rajasthan Shri. Arvind Mishra Advisor, State Tax
144 Sikkim Shri. Pawan Awasthy Principal Director,
Finance Department
145 Sikkim Shri. Manoj Rai Commissioner
(Commercial Taxes)
146 Tamil Nadu Shri.Brajendra Navnit
Principal Secretary,
Commercial Taxes and
Registration
147 Tamil Nadu Shri Dr.D. Jagannathan Commissioner of
Commercial Taxes
148 Tamil Nadu Shri. S. Subash Chandra Bose
Additional
Commissioner (Policy
& Public Relations)
149 Tamil Nadu Shri. S.Karthick Joint Commissioner
(Policy & Planning)
150 Tamil Nadu Shri. S.E. Prabhu Deputy Commissioner
(Policy & Planning)
151 Telangana Shri Krishna Baskar Special Secretary to
Deputy Chief Minister
152 Telangana Smt. T. K. Sridevi Commissioner of
Commercial Taxes
153 Telangana Smt. K. Rupa Sowmya Deputy Commissioner
154 Telangana Shri. G. Sri. Harsha Senior Fellow Finance
Department
155 Tripura Ms. Rakhi Biswas Chief Commissioner of
State Tax
156 Tripura Shri. Ashin Barman Assistant
Commissioner of Taxes
157 Uttar Pradesh Dr. Nitin Ramesh Gokarn Principal Secretary,
State Tax
158 Uttar Pradesh Dr. Adarsh Singh Commissioner, State
Tax
159 Uttar Pradesh Shri. Paritosh Kumar Mishra
Deputy Commissioner,
State Tax HQ,
Lucknow
160 Uttar Pradesh Shri. Amit Pandey PS to Honourable
Minister
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161 Uttarakhand Shri Dilip Jawalkar Secretary Finance
162 Uttarakhand Shri. B.S Nagnyal Additional Commission
er
163 Uttarakhand Shri. Anurag Mishra Joint Commissioner
164 West Bengal Shri. Manoj Pant Additional Chief
Secretary, Finance
165 West Bengal Shri Devi Prasad Karnam Commissioner
Commercial Tax
166 West Bengal Shri Rajib Sengupta Sr. Joint Commissioner
167 West Bengal Shri. Shantanu Naha WBCS (Exe), OSD to
Hon'ble FM

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Agenda Item 2: Deemed ratification by the GST Council of the Notifications and Circulars
issued by the Central Government and decisions of GST Implementation Committee for the
information of the Council.
In the 22nd meeting of the GST Council held at New Delhi on 6th October, 2017, it was
decided that the notifications, circulars and orders, which are being issued by the Central Government
with the approval of the competent authority, shall be forwarded to the GST Council Secretariat,
through email, for information and deemed ratification by the GST Council. Accordingly, in the 53rd
meeting held on 22nd June, 2024, the GST Council had ratified all the notifications, circulars, and
orders issued up to 14.06.2024.
2. In this respect, the following notifications and circulars issued after 14.06.2024 till
17.08.2024 under the GST laws by the Central Government, as available on www.cbic.gov.in, are
placed before the Council for information and ratification: -
Act/Rules Type Notification / Circular /
Order Nos.
Description/Subject
Notifications
under CGST
Act / CGST
Rules























Central
Tax
1. Notification No.
12/2024-Central Tax
dated 10.07.2024
Seeks to make amendments
(Amendment, 2024) to the CGST
Rules, 2017.
2. Notification No.
13/2024-Central Tax
dated 10.07.2024
Seeks to rescind Notification no.
27/2022-Central Tax dated 26.12.2022.
3. Notification No.
14/2024-Central Tax
dated 10.07.2024
Seeks to exempt the registered person
whose aggregate turnover in FY 2023-
24 is upto Rs. two crores, from filing
annual return for the said financial year.
4. Notification No.
15/2024-Central Tax
dated 10.07.2024
Seeks to amend Notification No.
52/2018-Central Tax,dated 20.09.2018.
5. Notification No.
16/2024-Central Tax
dated 06.08.2024
Seeks to notify section 11 to 13 of
Finance Act (No.1) 2024.
Central
Tax (Rate)
1. Notification No.
02/2024-Central Tax
(Rate) dated 12.07.2024
Seeks to amend notification No.
1/2017- Central Tax (Rate).
Page 152 of 463
2. Notification No.
03/2024-Central Tax
(Rate) dated 12.07.2024
Seeks to amend notification No.
2/2017- Central Tax (Rate).
3. Notification No.
04/2024-Central Tax
(Rate) dated 12.07.2024
Seeks to amend Notification No
12/2017- Central Tax (Rate) dated
28.06.2017.







Notifications
under IGST
Act / IGST
Rules
Integrated
Tax
1. Notification No.
01/2024- Integrated Tax
dated 10.07.2024
Seeks to amend Notification No.
02/2018-Integrated Tax dated
20.09.2018.
Integrated
Tax (Rate)
1. Notification No.
02/2024-Integrated Tax
(Rate) dated 12.07.2024
Seeks to amend notification No.
1/2017- Integrated Tax (Rate).
2. Notification No.
03/2024-Integrated Tax
(Rate) dated 12.07.2024
Seeks to amend notification No.
2/2017- Integrated Tax (Rate)
3. Notification No.
04/2024-Integrated Tax
(Rate) dated 12.07.2024
Seeks to amend Notification No
09/2017- Integrated Tax (Rate) dated
28.06.2017.
Notifications
under UTGST
Act / UTGST
Rules
Union
Territory
Tax
1. Notification No.
01/2024-Union Territory
Tax dated 10.07.2024
Seeks to amend Notification No.
12/2018-Union Territory Tax dated
28.09.2018.
Union
Territory
Tax (Rate)
1. Notification No.
02/2024-Union Territory
Tax (Rate) dated
12.07.2024
Seeks to amend notification No.
1/2017- Union Territory Tax (Rate).
2. Notification No.
03/2024-Union Territory
Tax (Rate) dated
12.07.2024
Seeks to amend notification No.
2/2017- Union Territory Tax (Rate).
3. Notification No.
04/2024-Union Territory
Tax (Rate) dated
12.07.2024
Seeks to amend Notification No
12/2017- Union territory Tax (Rate)
dated 28.06.2017.
Page 153 of 463
Notifications
under Goods
and Services
Tax
(Compensatio
n to States)
Act, 2017
Compensat
ion Cess
(Rate)
1. Notification No.
01/2024- Compensation
Cess (Rate) dated
12.07.2024
Seeks to provide exemption from
Compensation Cess on supplies under
heading 2202 by URCs to authorised
customers.
Circulars under CGST Act
1. Circular No.
207/01/2024-GST dated
26.06.2024
Reduction of Government Litigation –
fixing monetary limits for filing appeals
or applications by the Department
before GSTAT, High Courts and
Supreme Court.
2. Circular No.
208/02/2024-GST dated
26.06.2024
Clarifications on various issues
pertaining to special procedure for the
manufacturers of the specified
commodities.
3. Circular No.
209/03/2024-GST dated
26.06.2024
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.
4. Circular No.
210/04/2024-GST dated
26.06.2024
Clarification on valuation of supply of
import of services by a related person
where recipient is eligible to full input
tax credit.
5. Circular No.
211/05/2024-GST dated
26.06.2024
Clarification on time limit under
Section 16(4) of CGST Act, 2017 in
respect of RCM supplies received from
unregistered persons.
6. Circular No.
212/06/2024-GST dated
26.06.2024
Clarification on mechanism for
providing evidence of compliance of
conditions of Section 15(3)(b)(ii) of the
CGST Act, 2017 by the suppliers.
7. Circular No.
213/07/2024-GST dated
26.06.2024
Seeking clarity on taxability of re-
imbursement of securities/shares as
SOP/ESPP/RSU provided by a
company to its employees.
Page 154 of 463
8. Circular No.
214/08/2024-GST dated
26.06.2024
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.
9. Circular No.
215/09/2024-GST dated
26.06.2024
Clarification on taxability of wreck and
salvage values in motor insurance
claims.
10. Circular No.
216/10/2024-GST dated
26.06.2024
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.
11. Circular No.
217/11/2024-GST dated
26.06.2024
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.
12 Circular No.
218/12/2024-GST dated
26.06.2024
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.
13. Circular No.
219/13/2024-GST dated
26.06.2024
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.
14. Circular No.
220/14/2024-GST dated
26.06.2024
Clarification on place of supply
applicable for custodial services
provided by banks to Foreign Portfolio
Investors.
15. Circular No.
221/15/2024-GST dated
26.06.2024
Time of supply on Annuity Payments
under HAM Projects.
Page 155 of 463
16. Circular No.
222/16/2024-GST dated
26.06.2024
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.
17. Circular No.
224/18/2024-GST dated
11.07.2024
Guidelines for recovery of outstanding
dues, in cases wherein first appeal has
been disposed of, till Appellate
Tribunal comes into operation.
18. Circular No.
225/19/2024-GST dated
11.07.2024
Clarification on various issues
pertaining to taxability and valuation of
supply of services of providing
corporate guarantee between related
persons.
19. Circular No.
226/20/2024-GST dated
11.07.2024
Mechanism for refund of additional
Integrated Tax (IGST) paid on account
of upward revision in price of the goods
subsequent to export.
20. Circular No.
227/21/2024-GST dated
11.07.2024
Processing of refund applications filed
by Canteen Stores Department (CSD).
21. Circular No.
228/22/2024-GST dated
15.07.2024
Clarifications regarding applicability of
GST on certain services -reg.
22. Circular No.
229/23/2024-GST dated
15.07.2024
Clarification regarding GST rates &
classification (goods) based on the
recommendations of the GST Council
in its 53rd meeting held on 22nd June,
2024, at New Delhi –reg.

3. It is mentioned that some other recommendations were also made by the GST Implementation
Committee (GIC). The details of such recommendations of GIC are enclosed as Annexure “A” to this
Agenda Note.



4. The GST Council may grant ratification to the notifications and circulars as detailed in para 2
above.
****
Page 156 of 463
Annexure-A
Decisions of GST Implementation Committee for information of the GST Council
The GST implementation Committee (GIC) took certain decisions after the 53rd GST Council
meeting which are placed before the Council for information. The details of the decisions taken are
given below:
1. Decision by circulation on 28.6.2024 regarding GST data sharing request received from
Ministry of Statistics and Programme Implementation
a. In the agenda note dated 22.5.2024, it was stated that a request had been received from the
Ministry of Statistics and Programme Implementation (MoSPI) for sharing of non-encrypted GST
data in respect of 7 lakh business entities for the fields GSTIN, Trade/Business name, CIN and
turnover. It was further stated that data was required for annual survey of services sector, which
among other things will generate estimates on important parameters such as input, output, gross value
added, total number of persons engaged, fixed / working capital etc. at State / activity level.
b. Accordingly, approval of the GIC was sought for sharing of the data with the Ministry of Statistics
and Programme Implementation
c. Decision: The GIC approved the agenda relating to GST data sharing request received from the
Ministry of Statistics and Programme Implementation
2. Decision by circulation on 2.8.2024 regarding GST data sharing request received from
Ministry of Statistics and Programme Implementation
a. In the agenda note, it was stated that a request had been received from the Ministry of Statistics
and Programme Implementation for sharing of latest GSTN registration data with fields "Constitution
of Business" and "Nature of Principal Business Activity" against each GSTIN (masked).

b. Accordingly, approval of the GIC was sought for sharing of the data with the Ministry of Statistics
and Programme Implementation.
c. Decision: The GIC approved the agenda relating to GST data sharing request received from the
Ministry of Statistics and Programme Implementation.
3. Decision by circulation on 8.8.2024 regarding GST data sharing request received from
Ministry of Labour & Employment
a. In the agenda note, it was requested to reconsider the decision made by GIC which was
communicated vide GSTCS O.M. dated 31st May, 2024 regarding sharing of GSTIN data with
Ministry of Labour & Employment, for consideration of GIC.
b. The Agenda Note notes that in the GSTCS OM dated 31st May, 2024, it was mentioned that four
GIC members had expressed their disagreement with the proposal. They had observed that the data
sought in respect of supplier names, GSTIN, annual turnover, and HSN codes, was contrary to the
purpose of identifying digital platforms/aggregators. Additionally, the data request was also
considered contrary to the principle of non-disclosure of personally identifiable information of
taxpayers.
c. The Agenda Note further provided following clarifications in response to the doubts raised by the
GIC members:
Page 157 of 463
i. The required permission is for sharing details of the e-Commerce operators, not the suppliers of
these e-Commerce operators.
ii. Regarding personally identifiable data, it is clarified that, according to the SoP on data sharing
approved by the GST Council, any data not categorized under A, B, or C falls under category D. This
category of data can be shared with specific approval from the GSTC/ GIC on a case-by-case basis.

d. Accordingly, approval of the GIC was sought for sharing of the data with Ministry of Labour &
Employment.

e. Decision: The GIC did not agree with the proposal and directed that the Department of Revenue
may place the agenda before the GST Council.

4. Decision by circulation on 30.8.2024 regarding amendment carried out in Notification No.
S.O 3048 (E) dated 31st July, 2024 notifying the State Benches of the GSTAT Appellate
Tribunal
a. In the agenda note, it was stated that the GST Council in its 53rd Meeting held on 22.06.2024
approved the proposal for amendment in the notification S.O.4073(E) dated 14.09.2023 and S.O.I (E)
dated 29.12.2023 for notifying the location of the State Benches of the GST Appellate Tribunal. It
was further stated that before the publication of the amended notification in the Gazette, the
Government of Kerala vide it's letter dated 27th July 2024 requested for primary location of the bench
to be set at Ernakulam and the secondary location of the associated sitting be set at
Thiruvananthapuram. The proposal of Government of Kerala entailed swapping their primary location
of bench from Thiruvananthapuram to Ernakulam.
b. The agenda note further stated that the proposal of amendment sent by the State of Kerala had no
other implication, and the change only impacted the State of Kerala. Further, it was required to be
carried out urgently, as the proposals for setting up of infrastructure for the State Benches were in
advanced stages and the area required would depend on whether the Bench or the additional sitting
would be situated at the location. Accordingly, proposal of Government of Kerala for swapping their
primary location of bench from Thiruvananthapuram to Ernakulam was made in the amendment
notification and the same was notified vide 8.0. 3048(E) dated 31st July 2024. However, it is required
that the notification be carried out with the approval of the GST Council.
c. Accordingly, post-facto approval of the GIC was sought for the amendment keeping in mind that
the change impacts just one State and was purely an administrative issue without involving any
legal/procedural changes.

e. Decision: The GIC did not agree with the proposal and directed that the Department of Revenue
may place the agenda before the GST Council for post-facto approval.



Page 158 of 463
Agenda item 3: Issues recommended by the Law Committee for the consideration of the GST
Council.

Agenda Item 3(i): Clarification on refund of IGST paid on exports under rule 96(10) of the
CGST Rules, 2017 and amendments in Rule 89 and Rule 96 of CGST Rules, 2017.
Representations have been received from trade and industry requesting for clarification on
restriction imposed vide rule 96(10) of the Central Goods & Services Tax Rules, 2017 (hereinafter
referred to as the CGST Rules) in respect of availment of the refund of IGST on goods exported if
benefits of certain concessional/exemption notifications have been availed on inputs/raw materials
imported or procured domestically. It has further been represented that this rule is discriminatory
against the exporters who themselves or whose suppliers have availed benefit of the said specified
notifications, and that the said rule should be omitted from the CGST Rules.

2. Rule 96(10) of CGST Rules provides for a bar on availing the refund of Integrated Tax paid
on exports of goods if benefits of certain concessional/exemption notifications have been availed on
inputs/raw materials imported or procured domestically. This rule restricts exporters, who are availing
benefits of specified export promotion schemes such as advance authorization (AA) license holders,
export oriented units, etc. or the exporters who have received certain supplies on which the benefits
have been taken under Notification No. 48/2017-Central Tax dated 18.10.2017 or Notification No.
40/2017-Central Tax dated 23.10.2017 or Notification No. 41/2017-Integrated Tax dated 23.10.2017,
from claiming refund on Integrated tax paid on exports of goods. The intention of this provision
apparently was to restrict the possibility of double benefit and also to ensure that Input Tax Credit
(ITC) meant for domestic supplies was not used to offset IGST for exports.

3. The said rule 96 (10) of the CGST Rules is reproduced as under:
“(10) The persons claiming refund of integrated tax paid on exports of goods or services
should not have –
(a) received supplies on which the benefit of the Government of India, Ministry of Finance
notification No. 48/2017-Central Tax, dated the 18th October, 2017, published in the Gazette
of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E), dated
the 18th October, 2017 except so far it relates to receipt of capital goods by such person
against Export Promotion Capital Goods Scheme or notification No. 40/2017-Central Tax
(Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or
notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R
1321 (E), dated the 23rd October, 2017 has been availed; or

(b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017- Customs,
dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017 except
so far it relates to receipt of capital goods by such person against Export Promotion Capital
Goods Scheme.

Explanation. - For the purpose of this sub-rule, the benefit of the notifications mentioned
therein shall not be considered to have been availed only where the registered person has
paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed
exemption of only Basic Customs Duty (BCD) under the said notifications.”
Page 159 of 463
4. The fundamental principle governing the provisions of refund in the case of exports is that
taxes are not to be exported and accordingly, the tax suffered on the inputs used in the exported goods
is refunded to the taxpayer. In the cases where the taxpayer procures certain inputs in respect of which
the benefit of Notifications as provided under clauses (a) and (b) of rule 96(10) has been availed and
procures certain inputs and input services against payment of appropriate tax, refund of unutilised ITC
in such circumstances is available under the provisions of rule 89(4A) and 89(4B) of the CGST Rules.

5. For ease of understanding, the chronology of amendments made in relation to Rule 96(10)
of CGST Rules, is shown below:
(a) Notification No. 75/2017–Central Tax dated 29.12.2017 inserted rule 96(9) in the CGST
Rules with effect from 23rd October, 2017 which restricted the person from claiming refund
of IGST paid on export of goods or services if he has received supplies on which the supplier
has availed benefit of duty-free/concessional procurement under notification No. 48/2017-
Central Tax dated 18th October, 2017 or notification No. 40/2017-Central Tax (Rate) dated
23rd October, 2017 or notification No. 41/2017- Integrated Tax (Rate) dated 23rd October,
2017. Notification No. 75/2017 – Central Tax dated 29.12.2017 was issued after obtaining
approval of the GST Implementation Committee (GIC) and was ratified by the GST Council
in the 25th meeting held on 18.01.2018.

(b) Rule 96(9) was subsequently substituted by Rule 96(9) & Rule 96(10) by Notification No.
3/2018-CT dated 23.01.2018 w.e.f. 23.10.2017 vide which the restriction on availing refund
through IGST route was extended in cases where the exporter has received supplies on which
the supplier has availed benefit of Notification No. 78/2017- Customs dated 13.10.2017 and
Notification No. 79/2017-Customs dated 13.10.2017 which provided for duty free imports of
inputs/ Capital goods by AA, EOU and EPCG license holders. The said notification was
issued with the approval of GST Council obtained in 25th meeting held on 18.01.2018

(c) Rule 96 (10) was further amended by Notification No. 39/2018-CT dated 04.09.2018 w.e.f.
23.10.2017 wherein the said restriction was made applicable to the cases where the exporter
himself has availed benefit of duty-free procurement under Notification No. 78/2017-Customs
dated 13.10.2017 and Notification No. 79/2017-Customs dated 13.10.2017 after obtaining
approval of the GST Implementation Committee (GIC) and was ratified by the GST Council
in the 30th meeting held on 28.09.2018.
(d) However, during the 30th GST Council meeting, it was decided to restore the position of Rule
96(10) prior to amendment vide Notification No. 39/2018-CT dated 04.09.2018 by issuing
Notification No. 53/2018-CT dated 09.10.2018 substituting Rule 96(10) w.e.f. 23.10.2017.
Further, Notification No. 54/2018 CT dated 09.10.2018 was issued with prospective effect
to amend Rule 96(10) to inter-alia provide for restriction on availing refund under IGST
route when the exporter itself has availed benefit of duty-free procurement under Notification
No. 78/2017-Customs dated 13.10.2017 and Notification No. 79/2017-Customs dated
13.10.2017 and to create an exemption from the restriction placed vide rule 96(10) where the
exporters have procured Capital Goods duty free under EPCG scheme under Notification No.
48/2017-CT dated 18.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017. While
the said issue was discussed in the 30th meeting of GST Council, it was submitted by the
Commissioner, GST Policy Wing that as the field formations have followed different
Page 160 of 463
practices during the past period and export refunds have been granted in many cases, it would
be better not to re-open the earlier sanctioned refunds and the proposed amendment could be
done only with prospective effect. Thereby, it was made clear that refund, if sanctioned prior
to 09.10.2018 i.e. the date of issuance of Notification No. 54/2018-CT, would not be re-
opened. This was even clarified vide Circular No. 70/44/2018 -GST dated 26.10.2018 and
Circular No. 125/44/2019-GST dated 18.11.2019, wherein it was clarified that:

“Any exporter who himself/herself imported any inputs/capital goods in terms of
notification Nos. 78/2017-Customs and 79/2017-Customs both dated 13.10.2017,
before the issuance of the notification No. 54/2018 – Central Tax dated 09.10.2018,
shall be eligible to claim refund of the Integrated tax paid on exports. Further,
exporters who have imported inputs in terms of notification Nos. 78/2017-Customs
dated 13.10.2017, after the issuance of notification No. 54/2018 – Central Tax dated
09.10.2018, would not be eligible to claim refund of Integrated tax paid on exports.
However, exporters who are receiving capital goods under the EPCG scheme, either
through import in terms of notification No. 79/2017-Customs dated 13.10.2017 or
through domestic procurement in terms of notification No. 48/2017-Central Tax, dated
18.10.2017, shall continue to be eligible to claim refund of Integrated tax paid on
exports and would not be hit by the restrictions provided in sub-rule (10) of rule 96 of
the CGST Rules.”

(e) Further, vide Notification No. 16/2020-CT dated 23.03.2020, an Explanation was inserted in
rule 96(10) with effect from the 23rd October, 2017 which provided that where IGST and
Compensation Cess has been paid on procurement of inputs under Notification No. 78/2017-
Customs, dated the 13th October, 2017 or Notification No. 79/2017-Customs, dated the 13th
October, 2017 and exemption has been availed in respect of Basic Customs Duty (BCD) only,
such procurements would not be considered to have been procured by availing the
benefit of the said notifications. The said notification was issued as per the
recommendations of the GST Council in its 39th meeting held on 14.03.2020.

6. In this regard, it is mentioned that multiple amendments were made in the provisions of rule
96(10) as detailed in Para 5 above, including with retrospective effect, due to which some of the
exporters who had procured certain inputs in respect of which the benefit of notifications as provided
under clauses (a) and (b) of rule 96(10) had been availed, continued to export goods on payment of
IGST and received refunds of IGST paid on such exports, instead of claiming refund of unutilized
ITC in respect of such supplies by making exports without payment of integrated tax, as prescribed
under sub-rule (4A) and (4B) of rule 89 of CGST Rules. However, now in a number of such cases,
demand notices are being/ have been issued to the said exporters demanding refund of such IGST
wrongly availed in contravention of rule 96(10) of CGST Rules. Representations have been received
requesting not to deny IGST refunds due to procedural errors or mistakes as they were in any case
entitled for refund of unutilized ITC as per rule 89(4A) or (4B) of CGST Rules and to regularize the
refund so sanctioned.

7.1 The said issue was deliberated by the Law Committee (LC) in its meetings held on
08.12.2023, 31.07.2024 and 29.08.2024. The Law Committee was of the opinion that zero rated
benefits should not be denied to the exporters based on a procedural mistake.

8. The Law Committee felt that the following two issues need to be deliberated:
Page 161 of 463

Issue 1: Regularization of refund of IGST in cases where the exporters had imported certain
inputs without payment of integrated taxes and compensation cess by availing the benefits
under Notification No. 78/2017-Customs dated 13.10.2017 or Notification No. 79/2017-Customs
dated 13.10.2017 and are now ready to pay the said IGST and compensation cess amount,
alongwith interest; and

Issue 2: Review of the provisions of rule 96 (10) & rule 89 (4A) and rule 89 (4B) of CGST Rules.


9.1 ISSUE 1: Regularization of refund of IGST in cases where the exporters had imported
certain inputs without payment of integrated taxes and compensation cess by availing the
benefits under Notification No. 78/2017-Customs dated 13.10.2017 or Notification No. 79/2017-
Customs dated 13.10.2017 and are now ready to pay the said IGST and compensation cess
amount, along with interest: Vide Notification No. 16/2020-CT dated 23.03.2020, issued on the
basis of recommendations of GST Council in its 39th meeting held on 14.03.2020, an Explanation was
added in Rule 96 retrospectively w.e.f. 23.10.2017, which reads as follows:
“Explanation. - For the purpose of this sub-rule, the benefit of the notifications mentioned
therein shall not be considered to have been availed only where the registered person has
paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed
exemption of only Basic Customs Duty (BCD) under the said notifications.”

9.2 A bare perusal of the said Explanation, which was inserted with retrospective effect, reveals
that in cases where the benefits of the specified exemption notifications have not been availed in
respect of IGST and compensation cess, it shall be deemed that benefit of the said notifications has
not been availed for the purpose of rule 96(10) of CGST Rules. Therefore, extension of logic given in
the said Explanation may lead to a view that in cases where inputs were initially imported without
payment of integrated tax and compensation cess but subsequently, IGST and compensation cess on
such imported inputs is paid at a later date, along with interest, then in such cases, it may be
considered that the benefits of notifications mentioned in rule 96(10)(b) of CGST Rules have not been
availed for the purpose of rule 96(10) and thus, refund of IGST claimed on exports made with
payment of Integrated tax in such cases can be considered to be regularized in consonance with
provisions of rule 96 of CGST Rules.

9.3 In view of the above, the Law Committee recommended that a clarification may be issued
through a Circular that in such cases, where the inputs were initially imported without payment of
integrated tax and compensation cess by availing benefits under Notification No. 78/2017-Customs
dated 13.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017, but subsequently, IGST and
compensation cess on such imported inputs is paid at a later date, along with interest, and the Bill of
Entry in respect of the import of the said inputs is got reassessed through the jurisdictional Customs
authorities to this effect, then the refunds of IGST sanctioned may be considered to be regularized in
light of the explanation to rule 96 (10) of CGST Rules. Draft Circular recommended by the Law
Committee is enclosed with the agenda note as Annexure A.

10. ISSUE 2: Need for re-examination of the provision of rule 96 (10) & rule 89 (4A) and
rule 89 (4B) of CGST Rules, 2017:
10.1 It is also worthwhile to mention that the intention of rule 96(10) of the CGST Rules
apparently was to prevent certain class of exporters from claiming the refund of Integrated tax paid on
Page 162 of 463
exports of goods, if the said exporters/ their suppliers had availed exemptions under certain schemes
such as Advance Authorisation (AA), Export Oriented Units (EOU) etc. so as to restrict the possibility
of double benefit and also to ensure that Input Tax Credit (ITC) meant for domestic supplies was not
used to offset IGST for exports. However, in the case, where the exporter avails the benefit of certain
notifications as specified under Rule 96(10) and procures the inputs tax-free, he will not be able to
avail any Input tax Credit (ITC) on these inputs ,which he can then use to offset the IGST on exports.
Moreover, in case, he uses the ITC meant for domestic supplies to offset IGST on exports, the said
exporter will have to subsequently pay tax by cash on domestic clearances. Further, this issue is not
limited to exports covered under rule 96(10) and is applicable to all the exports wherever IGST
refunds are claimed and, as any exporter who wishes to pay IGST on exports from the ITC meant for
domestic supplies can do so and can claim refund presently, as the GST law presently does not
provide for one to one correlation between the inward supplies and outward supplies for claiming
refund.

10.2 It is also mentioned that no formula or mechanism to calculate refund under sub-rule (4A) and
(4B) of rule 89 of CGST Rules has been prescribed under sub-rule (4A) and (4B) of Rule 89 of CGST
Rules. Rule 89(4A) and 89(4B) provides for the mechanism for refund of unutilized ITC on other
inputs / input services to the extent used in making the exports, thereby implying that there has to be a
one-to-one correlation of inputs and inputs services with that of output supplies for claiming refund
under this route. As these sub-rules do not prescribe any formula or standard method for calculation of
refund, different practices are being followed in different tax formations for arriving at the refund
amount, thereby leaving the exporters clueless about the procedure followed at various places and
leading to further complications. A number of representations have been received that since there is
no formula or mechanism has been provided to calculate refund under sub-rule (4A) and (4B) of rule
89 of CGST Rules , the exporters may be allowed to calculate admissible refunds based on the
formula prescribed under rule 89(4) of the CGST Rules. Further, for claiming refund under these sub-
rules, exporter is required to maintain separate account for the inputs and inputs services exclusively
used for said exported supply which is against the principle of ease of doing business.

10.3 It is also worthwhile to mention that such schemes are broadly categorized as export
promotion schemes and thus the basic premise is to promote and encourage exports. Through the
provision of such benefits and concession notifications, the Government intends to facilitate exports
so that more foreign exchange is received in the country. Such schemes thus help achieve the
objective by reducing the blockage of working capital to exporters. However, through insertion of the
provisions of rule 96(10), rule 89(4A) and rule 89(4B) in CGST Rules, it appears that an exporter who
does not avail benefit of such schemes is allowed to utilize the credit and gets refund of Integrated
Tax paid on export with payment of Integrated Tax without any restriction, but an exporter who
claims benefits or avails the benefit provided under such export promotion schemes gets certain
restrictions, which is creating an anomaly in intent behind such policies or schemes.

10.4 Further, the wording of the said sub-rule 96(10) of CGST Rules is also leading to certain
ambiguities as one such interpretation which has been adopted by the field formations is that even if
an exporter has received just one supply of inputs on which the said exporter or his suppliers had
availed benefit of the aforementioned notifications, the exporter is restricted permanently from
seeking a refund of the IGST paid for all their subsequently exported goods under rule 96(10) of
CGST Rules and any refund claim sanctioned to them under rule 96(10) is liable to be demanded and
recovered by the field formations.
Page 163 of 463
10.5 In view of the above, the Law Committee observed that operation of rule 96(10) is leading to
unnecessary complications, without any intended benefit being served. Further, enough safeguards
have been placed in the law and built in the system to restrict the passing on of the fake ITC.
Accordingly, once it is found that the ITC utilised for discharging of outward tax liability on exports
is genuine, then there shall be no apprehensions in allowing refund of tax paid to the exporters who
have received any inputs under duty free/concessional notification.

10.6 In view of the above, the Law Committee recommended that rule 96(10), rule 89(4A) & rule
89(4B) of CGST Rules, 2017 may be omitted with prospective effect as follows:
“(10) The persons claiming refund of integrated tax paid on exports of goods or services
should not have –
(a) received supplies on which the benefit of the Government of India, Ministry of Finance
notification No. 48/2017-Central Tax, dated the 18th October, 2017, published in the Gazette
of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E), dated
the 18th October, 2017 except so far it relates to receipt of capital goods by such person
against Export Promotion Capital Goods Scheme or notification No. 40/2017-Central Tax
(Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or
notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R
1321 (E), dated the 23rd October, 2017 has been availed; or

(b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017- Customs,
dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017 except
so far it relates to receipt of capital goods by such person against Export Promotion Capital
Goods Scheme.

Explanation. - For the purpose of this sub-rule, the benefit of the notifications mentioned
therein shall not be considered to have been availed only where the registered person has
paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed
exemption of only Basic Customs Duty (BCD) under the said notifications.”

Rule 89:
“(4A) In the case of supplies received on which the supplier has availed the benefit of the
Government of India, Ministry of Finance, notification No. 48/2017-Central Tax dated the
18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i), vide number G.S.R 1305 (E) dated the 18th October, 2017, refund of input tax
credit, availed in respect of other inputs or input services used in making zero-rated supply of
goods or services or both, shall be granted.
(4B) Where the person claiming refund of unutilised input tax credit on account of zero rated
supplies without payment of tax has -
(a) received supplies on which the supplier has availed the benefit of the Government of
India, Ministry of Finance, notification No. 40/2017-Central Tax (Rate), dated the 23rd
October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No.
41/2017 Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of
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India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E), dated
the 23rd October, 2017; or
(b) availed the benefit of notification No. 78/2017-Customs, dated the 13th October, 2017,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs,
dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017,
the refund of input tax credit, availed in respect of inputs received under the said notifications
for export of goods and the input tax credit availed in respect of other inputs or input services
to the extent used in making such export of goods, shall be granted.”

10.7 The Law Committee also recommended that after the proposed deletion of Rule 89(4A) and
89(4B) of CGST Rules, 2017, refund of accumulated ITC on zero-rated supplies made without
payment of IGST to the exporters, who/ whose suppliers have availed the benefit of the exemption
notifications mentioned in rule 89(4A) and 89(4B), shall be governed by Rule 89(4) of CGST Rules.
10.8 Law Committee also noted that consequent to the amendments in rule 96 and rule 89 of
CGST Rules, as per para 10.6 above, consequential amendments will be required to be made in other
rules of CGST Rules, 2017. Law Committee, accordingly, recommended that clause (b) of sub-rule
(4B) of rule 86, clause B, clause C and clause E of sub-rule (4) of rule 89 and Explanation (a) to sub-
rule (5) of rule 89 of CGST Rules, which have reference to the rules 96(10), 89(4A) and 89(4B) of
CGST Rules, may be amended accordingly. The consequential amendments recommended by the
Law Committee are detailed in Annexure-B.
11. The agenda note is placed before the GST Council for deliberation and approval.
Page 165 of 463
ANNEXURE-A
CIRCULAR No. xx
F. No. CBIC-XX/XX/XXXX-GST
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Indirect Taxes & Customs,
GST Policy Wing
*****
New Delhi, dated the XX, 2024
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax and Central Tax (Audit) (All)
The Principal Directors General / Directors General (All)

Madam/Sir,
Subject: Clarification regarding regularization of refund of IGST availed in contravention of
rule 96(10) of CGST Rules, 2017, in cases where the exporters had imported certain inputs
without payment of integrated taxes and compensation cess - regarding.
Sub-rule (10) of rule 96 of Central Goods and Services Tax Rules, 2017 (hereinafter referred
to as “CGST Rules”) provides for a bar on availment of the refund of integrated tax (IGST) paid on
export of goods or services, if benefits of certain concessional/exemption notifications, as specified in
the said sub-rule, have been availed on inputs/raw materials imported or procured domestically. In
this regard, references have been received from the field formations and trade/ industry wherein
clarification has been sought on whether refund of integrated tax paid on exports of goods by a
registered person can be regularized in a case where the registered person had initially imported inputs
without payment of integrated tax and compensation cess, by availing the benefits under Notification
No. 78/2017-Customs dated 13.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017, but
subsequently, at a later date, the said person has either paid the IGST and compensation cess, along
with interest, on such imported inputs or is now willing to pay such IGST and compensation cess,
along with interest.

2. The issue has been examined and in order to clarify the issue and to ensure uniformity in
the implementation of the provisions of law across the field formations, the Board, in exercise of its
powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017
(hereinafter referred to as “CGST Act”), hereby clarifies the following:

2.1 Vide Notification No. 16/2020-CT dated 23.03.2020, an Explanation was inserted in sub-rule
(10) of rule 96 of CGST Rules retrospectively with effect from 23.10.2017, which reads as follows:
“Explanation. - For the purpose of this sub-rule, the benefit of the notifications mentioned
therein shall not be considered to have been availed only where the registered person has
paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed
exemption of only Basic Customs Duty (BCD) under the said notifications.”

2.2 A bare perusal of the said Explanation, which was inserted with retrospective effect, reveals
that in cases where the benefits of these exemption notifications have not been availed in respect of
IGST and compensation cess, it shall be deemed that benefit of the said notifications has not been
availed for the purpose of sub-rule (10) of rule 96 of CGST Rules. Therefore, extension of logic given
in the said Explanation may lead to a view that in cases where inputs were initially imported without
payment of integrated tax and compensation cess but subsequently, IGST and compensation cess on
such imported inputs is paid at a later date, along with interest, then in such cases, it can be considered
Page 166 of 463
that the benefits of notifications mentioned in clause (b) of sub-rule (10) of rule 96 of CGST Rules
have not been availed for the purpose of said sub-rule. Accordingly, refund of IGST claimed on
exports made with payment of Integrated tax in such cases may not be considered to be in
contravention of provisions of sub-rule (10) of rule 96 of CGST Rules.

2.3. In view of the above, it is clarified that where the inputs were initially imported without
payment of integrated tax and compensation cess by availing benefits under Notification No. 78/2017-
Customs dated 13.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017, but subsequently,
IGST and compensation cess on such imported inputs are paid at a later date, along with interest, and
the Bill of Entry in respect of the import of the said inputs is got reassessed through the jurisdictional
Customs authorities to this effect, then the IGST, paid on exports of goods, refunded to the said
exporter shall not be considered to be in contravention of provisions of sub-rule (10) of rule 96 of
CGST Rules.

3. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.

4. Difficulty, if any, in implementation of the above instructions may please be brought to the
notice of the Board. Hindi version would follow.

(Sanjay Mangal)
Principal Commissioner (GST)
Page 167 of 463
Annexure-B
Consequential Amendments in CGST Rules, 2017
1. Amendment in Clause (b) of sub-rule (4B) of rule 86:
“(4B) Where a registered person deposits the amount of erroneous refund sanctioned to him,-
(a) …..
(b) under sub-rule (3) of rule 96, in contravention of sub-rule (10) of rule 96,
along with interest and penalty, wherever applicable, through FORM GST DRC-03, by
debiting the electronic cash ledger, on his own or on being pointed out, an amount equivalent
to the amount of erroneous refund deposited by the registered person shall be re-credited to
the electronic credit ledger by the proper officer by an order made in FORM GST PMT-
03A.”
2. Amendments in clause B, clause C and clause E of sub-rule (4) of rule 89:
“(B) "Net ITC" means input tax credit availed on inputs and input services during the
relevant period other than the input tax credit availed for which refund is claimed under sub-
rule (4A) or (4B) or both;
(C) "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods
made during the relevant period without payment of tax under bond or letter of undertaking
or the value which is 1.5 times the value of like goods domestically supplied by the same or,
similarly placed, supplier, as declared by the supplier, whichever is less, other than the
turnover of supplies in respect of which refund is claimed under sub- rule (4A) or (4B) or
both;
(E) "Adjusted Total Turnover" means the sum total of the value of-
(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2,
excluding the turnover of services; and
(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and
non-zero-rated supply of services,
excluding- (i) the value of exempt supplies other than zero-rated supplies; and (ii) the
turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule
(4B) or both, if any, during the relevant period.”
3. Amendment in Explanation (a) to sub-rule (5) of rule 89:
“Explanation: - For the purposes of this sub-rule, the expressions -
(a) "Net ITC" shall mean input tax credit availed on inputs during the relevant period other
than the input tax credit availed for which refund is claimed under sub-rule (4A) or (4B) or
both”
Page 168 of 463
Agenda Item 3(ii): Clarification on the place of supply of advertising services provided to
foreign entities.
References have been received from the trade and industry requesting for clarification
regarding place of supply of the advertising services being provided by Indian advertising
companies/agencies to foreign entities, as some of the field formations are considering the place of
supply of the said services as within India, thereby denying the export benefits in respect of such
supplies.
2. Background
2.1 The Indian advertising companies/agencies providing advertising services to foreign clients
for an agreed consideration may generally undertake the following activities:
a. The advertising company understands client's products/services and target audience
through collaboration and determine campaign details like budget, duration and media
choices.
b. The advertising company conceptualises and designs the media plan based on client-
provided creatives and visuals for making strategy to maximize customer reach. The
advertising company presents the media campaign plan to the client, who approves the
final plan before implementation.
c. Further, the advertising company deals with media owners and vendors ensuring
alignment with campaign vision, seeking estimates for the campaign from the media
owners and obtaining approval for the same from the foreign client. After approving the
said media plan, the foreign client issues a Purchase Order (PO) to the advertising
company. Upon receiving the PO from the client, the advertising company issues a
Release Order (RO) to media owners. Subsequently, the advertising company executes
the approved media plan.
d. It monitors campaign progress, verifies data accuracy and maintains updated
dashboards.
e. It procures media space from media owners and resells the same to the clients at same
or additional cost.
f. Media owner invoices advertising company for inventory cost and the advertising
company makes the payment for the media space to the Media owners.
g. The advertising company further raises an invoice on the foreign client for advertising
services including media space cost and service charges/fee as agreed in the approved
media plan and the payments are received from the foreign clients in foreign exchange.
h. The advertising company claims input tax credit for tax paid to media owners and
report their outward supplies as taxable output services in their GST returns.
2.2 The advertising industry has represented that as per the GST provisions, such advertising
service, provided by Indian entities to overseas entities, qualifies to be export of services and is zero
rated under Section 16 of the IGST Act read with Section 13(2) of the Integrated Goods and Services
Tax Act, 2017 (“IGST Act”), as the recipient of such services and the Place of Supply (“PoS”) are
outside India. However, some of the field formations are issuing notices to some of the companies
providing advertising services to foreign entities by denying export benefits on the following
grounds:-
Page 169 of 463
(i) The services are in the nature of intermediary services, and in terms of Section 13(8) of the
IGST Act, the PoS is to be determined on the basis of the location of the supplier of the
service provider, which is within the taxable territory.
(ii) The advertisement is being viewed/ aired/ broadcasted/ telecasted across India, hence, the
service is being performed in India and also, the recipient of services are the viewers of
advertisement located in India and therefore, the PoS of the said services is in India.
(iii) Where the advertising agency has entered into contract with overseas client and there is
correspondence with the Indian counterparts (as representative) of overseas client, the
services cannot be considered to be exported, as the services are performed in India, or are
being provided to Indian counterpart of the overseas clients, who are actual recipient of these
services.
3. Relevant Legal Provisions
3.1 Section 2(93) of the CGST Act, 2017 provides for the definition of “recipient”, which is
reproduced below:
“2(93) “recipient” of supply of goods or services or both, means-
(a) where a consideration is payable for the supply of goods or services or both, the
person who is liable to pay that consideration,
(b) where no consideration is payable for the supply of goods, the person to whom the
goods are delivered or made available, or to whom possession or use of the goods is
given or made available, and
(c) where no consideration is payable for the supply of a service, the person to whom
the service is rendered, and any reference to a person to whom a supply is made shall
be construed as a reference to the recipient of the supply and shall include an agent
acting as such on behalf of the recipient in relation to the goods or services or both
supplied.”
3.2 Section 2(6) of the IGST Act, 2017 lays down the conditions that need to be fulfilled to
qualify as export of services, which is reproduced below for reference:
Section 2(6) “export of services” means the supply of any service when, –
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in
convertible foreign exchange or in Indian rupees wherever permitted by the
Reserve Bank of India; and
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(v) the supplier of service and the recipient of service are not merely establishments
of a distinct person in accordance with Explanation 1 in section 8
3.3 Section 2(13) of IGST Act defines ‘intermediary’ as below:
“Intermediary means a broker, an agent or any other person by whatever name
called, who arranges or facilitates the supply of goods or services or both or
securities between two or more persons but does not include a person who supplies
such goods or services or both or securities on his own account”.

3.4 Section 13 of the IGST Act, 2017 provides for the determination of the place of supply of
services where location of supplier or location of recipient is outside India.

3.4.1 Sub-section (2) of section 13 of the IGST Act, 2017, also known as default rule of place of
supply in section 13, provides that-
“(2) The place of supply of services except the services specified in sub-sections (3)
to (13) shall be the location of the recipient of services.”

3.4.2 Section 13(3) of the IGST Act, 2017 provides for the place of supply in case of performance-
based services which reads as follows-

“(3) The place of supply of the following services shall be the location where the
services are actually performed, namely:—
(a) services supplied in respect of goods which are required to be made
physically available by the recipient of services to the supplier of
services, or to a person acting on behalf of the supplier of services in
order to provide the services
…….
…….
(b) services supplied to an individual, represented either as the recipient of
services or a person acting on behalf of the recipient, which require the
physical presence of the recipient or the person acting on his behalf, with the
supplier for the supply of services.”

3.4.3 Section 13(8)(b) of the IGST Act provides a legal presumption regarding the place of supply
for intermediary services which reads as below:
“13(8) The place of supply of the following services shall be the location of the
supplier of services, namely:––

(a) ………………………;

(b) intermediary services;

(c) ……………………….”
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4 Analysis
The issue has been examined and it has been observed that there are broadly three issues that
need to be clarified:
a. Whether the advertising company can be considered as an intermediary between the
foreign client and the media owners in terms of section 2(13) of IGST Act, thereby
resulting in determination of place of supply under section 13(8)(b) of the IGST Act,
2017?
b. Whether the representative of foreign client in India or the target audience of the
advertisement in India can be considered as recipient of the services being supplied
by the advertising company under section 2(93) of CGST Act, 2017?
c. Whether the advertising services provided by the advertising companies to foreign
clients can be considered as performance-based services as per section 13(3) of the
IGST Act, 2017?
5. Issue 1 -Whether the advertising company can be considered as an intermediary
between the foreign client and the media owners as per section 2(13) of IGST Act?
5.1 Section 2(13) of the IGST Act defines ‘intermediary’ as:
a. a broker, an agent or any other person by whatever name called,
b. who arranges or facilitates the supply of goods or services or both or securities
c. between two or more persons
d. but does not include a person who supplies such goods or services or both or securities on
his own account”.
5.2 Further, the scope of intermediary services has been clarified in Circular No. 159/15/2021-
GST dated 20.09.2021. In the said circular, basic perquisites for intermediary services have been
clarified as below:
a. It requires minimum three parties. Therefore, an activity between only two parties cannot
be considered as an intermediary service. An intermediary essentially "arranges or
facilitates" another supply (the "main supply") between two or more other persons and,
does not himself provide the main supply.
b. There have to be two distinct supplies between the principals and between the agent
(intermediary) and the principal.
c. Intermediary service provider to have the character of an agent, broker or any other
similar person.
d. It does not include a person who supplies such goods or services or both on his own
account.
5.3 Accordingly, those persons (broker, agent or any other person) who merely arrange or
facilitate the main supply of goods or services or both or securities and have not involved themselves
in the main supply on their own account are considered as ‘intermediaries’. However, if the persons
involve themselves in the main supply of goods or services or both or securities and directly
participate in the transaction on their own account, such persons do not fulfill the fundamental criteria
of being categorized as brokers, agents, or any other person who arranges or facilitates transactions
between two or more parties, as they have directly supplied the goods or services or both or securities,
Page 172 of 463
rather than merely facilitating their supply. Thus, when such persons engage themselves in main
supplies i.e. they enter into the transaction on principal-to-principal basis, they cannot be considered
as intermediaries in view of the above definition of the intermediary and the said circular.
5.4 In the present case, it needs to be examined whether the advertising company can be
considered as an intermediary under section 2(13) of IGST Act or the said advertising company has to
be considered to be involved in two different principal-to-principal transactions with both the media
owner and foreign client. In this regard, it is observed that in the scenario discussed in Para 2.1 above:
a. A foreign company or firm hires an advertising company in India for advertisement of its
goods or services and enters into a comprehensive agreement with the advertising
company/agency encompassing all the issues related to advertising services ranging from
media planning, investment planning for the same, creating and designing content,
strategizing for maximum customer reach, the identification of media owners, dealing with
media owners, etc. for displaying/ broadcasting/ printing of advertisement including
monitoring of the progress of the same. The advertising agency provides a one stop
solution to the client who outsources the entire activity to the agency.
b. The advertising agency, in this case, enters into two agreements:
i. With the client located outside India for providing a one stop solution starting from
designing the advertisement to its display in the media as agreed to with the client.
The advertising company raises invoice to its foreign client for the above advertising
services and the payment of the same is received from the foreign client in foreign
exchange.
ii. With the media company to procure media space for display of the advertisement and
to monitor campaign progress based on data shared by the media company. The
media company bills the advertising agency.
c. The agreements entered into by the Advertising company/agency in the instant case are in
the nature of two distinct principal to principal supplies and no agreement of supply of
services exists between the media company and the foreign client.
d. Media owner invoices advertising company for media space and the advertising company
makes the payment for the said media space to the media owners. The advertising
company further raises the invoice on the foreign client for the advertising services,
including media space, and the payments are received by the advertising company from
the foreign client in foreign exchange. The advertising company claims input tax credit for
the tax paid to media owners and reports the amount charged from the foreign client,
including media resale value, as taxable output services in their GST returns. As the
advertising company in this case is not acting as an agent but has been contracted by the
client to provide certain services, therefore, the advertising agency is to be considered as
providing the services to the client on its own account.
5.5 In the above scenario, it is observed that the advertising company is involved in the main
supply of advertising services, including resale of media space to the foreign client, on principal-to-
principal basis as detailed above and does not appear to fulfil the criteria of “intermediary” under
section 2(13) of the IGST Act and the said circular dated 20.09.2021. Thus, the advertising company
Page 173 of 463
cannot be considered as “intermediary” in such a scenario and accordingly, the place of supply in the
instant matter cannot be determined as per section 13(8)(b) of the IGST Act.
6. Issue-2 Whether the representative of foreign client in India or the target audience of
the advertisement in India can be considered as “recipient” of the services being supplied by the
advertising company under section 2(93) of CGST Act, 2017?
6.1 As per Section 2(93)(a) of the CGST Act, the “recipient” of the services means the person
who is liable to pay consideration where a consideration is payable for the supply of goods or
services or both.
6.2 Accordingly, recipient is the person who is liable to pay the consideration for the supply of
goods or services or both, where a consideration has to be paid for such supply.
6.3 In the instant matter, as mentioned above in para 5.4, the foreign entity enters into a
comprehensive agreement with the Indian advertising company wherein the foreign entity is liable to
pay for the advertising services rendered by the Indian advertising company against the invoice raised
by the said advertising company.
6.4 Further, in this case, even if a representative of the said foreign client based in India is
interacting with the advertising company on behalf of the said foreign client, the said representative
based in India cannot be considered as a recipient of the service, if the agreement is between the
foreign client and the advertising company, the invoice is being issued for the said service by the
advertising company to the foreign client and the payment for the said service is received by the
advertising company directly from the said foreign client. Further, the target audience of the
advertisements may be based in India but such target audience cannot be considered as recipient of
the said advertising services, being supplied by the advertising company, as per the definition of the
recipient under section 2(93) of CGST Act.
6.5 Therefore, as discussed in paras 6.3 and 6.4 above, the recipient of the advertising services
provided by the advertising company in such cases is the foreign client and not the Indian
representative of the foreign client based in India or the target audience of the advertisements, as per
section 2(93) of the CGST Act, 2017.
7. Issue-3 Whether the advertising services provided by the advertising companies to
foreign clients can be considered as performance-based services as per section 13(3) of the IGST
act, 2017?
7.1 The place of supply of performance based services is provided in sub-section (3) of section 13
of IGST Act. The provisions of clause (a) of the said sub-section pertain to the services supplied in
respect of goods which are required to be made physically available by the recipient of services to the
supplier of services. However, in the instant matter, there does not appear to be any such involvement
of goods which are required to be physically available with supplier of advertising services.
Therefore, the said provisions of clause (a) of the said sub-section cannot be made applicable for
determination of place of supply of advertising services.
7.2 Further, clause (b) of sub-section (3) of section 13 of IGST Act provides that the place of
supply shall be the location where the services are actually performed in case, where
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a. the services are supplied to an individual,
b. represented either as the recipient of services or a person acting on behalf of the recipient,
and
c. which requires the physical presence of the recipient or the person acting on his behalf,
with the supplier for the supply of services
7.3 Thus, in case of performance-based services under section 13(3)(b) of IGST Act, it is
observed that the recipient (either himself or represented by any person acting on his behalf) of such
services is required to be physically present with the supplier for availing such services. Thus, to be
covered under the said clause, performance of services should be dependent on the physical presence
of the recipient, like in case of salon services where the recipient has to be physically present with the
supplier to avail the services from him.
7.4 However, in the present scenario, the supply of advertising services does not require physical
presence of the recipient (foreign client or his representative or a person acting on his behalf) with the
advertising company for availing the said advertising services. Thus, the said supply of advertising
services cannot be considered as being covered under section 13(3)(b) of IGST Act for being
considered as the services actually performed in India in terms of the said section.
7.5 Therefore, it is observed that the place of supply of advertising services in such cases can
neither be determined as per the provisions of section 13(3)(a) nor as per the provisions of section
13(3)(b) of IGST Act.
8. Further, it is observed that in the present scenario, the place of supply of the above-
mentioned advertising services does not appear to be covered under any other provisions of sub-
sections (3) to (13) of the Section 13 of the IGST Act, 2017. Therefore, in view of foregoing
discussion, it appears that the place of supply of the said advertising service being supplied by the
advertising company to the foreign clients can only be determined as per the default provision, i.e.
sub-section (2) of section 13 of IGST Act, i.e. the place of location of the recipient of the services.
Since the recipient of the advertising services in such scenario is the foreign client, who is located
outside India, the place of supply of the said services appears to be the location of the said foreign
client i.e. outside India as per Section 13(2) of IGST Act, 2017.
9. Accordingly, supply of advertising services being provided by an Indian company/agency to
their foreign client can be considered as export of services subject to the fulfilment of the other
conditions mentioned in section 2(6) of IGST Act.
10. However, there may be cases where the advertising company located in India merely acts as
an agent of the foreign client in engaging with the media owner for providing media space to the
foreign client. In such cases, the agreement/ contract for providing the media space and broadcast of
the advertisement is directly between media owner and the foreign client. The media owner directly
invoices the foreign client for providing the media space and broadcast of the advertisement and the
foreign client remits the payment for the said services directly to the media owner. In such instances,
the services of providing media space and broadcasting the advertisement are directly provided by the
media owner to the foreign client. In such cases, the advertising company is merely facilitating the
provision of the said services of providing media space and broadcasting the advertisement between
the foreign client and the media owner and does not provide the said services on its own account. The
advertising company invoices the foreign client for the facilitation services provided by it.
Page 175 of 463
Consequently, in such cases, the advertising company is an "intermediary" in accordance
with Section 2(13) of the CGST Act, 2017, as elucidated in Circular No. 159/2021 in respect of the
said services of facilitating the foreign client and accordingly, the place of supply in respect of the
said services provided by the advertising company to the foreign client is determinable as per section
13(8)(b) of IGST Act, i.e. the location of the supplier, i.e. the location of the advertising company.
11. Law Committee in its meeting held on 31.07.2024 deliberated on the same, and recommended
issue of a circular on the above lines. The draft circular as recommended by the Law Committee is
placed at Annexure-A.
12. Accordingly, the agenda is placed before the GST Council for approval.
*********
Page 176 of 463
Annexure A
Circular No. XXX/XX/-GST
F. No. CBIC-20006/xx/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, dated the xxth xxx, 2024
To,
The Principal Chief Commissioners/ Chief Commissioners/
Principal Commissioners/ Commissioners of Central Tax (All),
The Principal Directors General/ Directors General (All).

Madam/Sir,
Subject: Clarification in respect of advertising services provided to foreign clients–reg.
References have been received from the trade and industry requesting for clarification regarding
advertising services being provided by Indian advertising companies/agencies to foreign entities, as
some of the field formations are considering the place of supply of the said services as within India,
thereby denying the export benefits to such advertising companies. In view of the difficulties being
faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the
law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the
Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies
the issues in succeeding paragraphs.
2. Issue in Brief
A foreign company or firm hires an advertising company/agency in India for advertisement of
its goods or services and may enter into a comprehensive agreement with the advertising
company/agency encompassing all the issues related to advertising services ranging from media
planning, investment planning for the same, creating and designing content, strategizing for maximum
customer reach, the identification of media owners, dealing with media owners, procuring media
space, etc. to displaying/ broadcasting/ printing of advertisement including monitoring of the progress
of the same. In such a case, the advertising agency provides a one stop solution to the client who
outsources the entire activity to the agency.
In this scenario, media owners raise invoice to the advertising agency for inventory costs,
which are then paid by the agency. Subsequently, the advertising agency raises invoice to the foreign
client for the rendered advertising services and receives the payments in foreign exchange from the
foreign client. In this regard, clarification has been sought as to:
Page 177 of 463
a. Whether the advertising company can be considered as an intermediary between the
foreign client and the media owners in terms of section 2(13) of IGST Act thereby
resulting in determination of place of supply under section 13(8)(b) of the IGST Act,
2017?
b. Whether the representative of foreign client in India or the target audience of the
advertisement in India can be considered as recipient of the services being supplied
by the advertising company under section 2(93) of CGST Act, 2017?
c. Whether the advertising services provided by the advertising companies to foreign
clients can be considered as performance-based services as per section 13(3) of the
IGST act, 2017?
3. CLARIFICATION:
3.1 Issue 1 -Whether the advertising company can be considered as an intermediary
between the foreign client and the media owners as per section 2(13) of IGST Act?
3.1.1 As per section 2(13) of IGST Act read with Circular no. 159/15/2021-GST dated 20.09.2021,
a broker, agent or any other person who arranges or facilitates the main supply of goods or services or
both or securities and has not involved himself in the main supply on his own account is considered as
intermediary.
3.1.2 In the instant scenario, it is observed that the foreign clients enter into a comprehensive
agreement with advertising companies/agencies in India and outsource the entire activity of
advertising services to the advertising companies/agencies. Further, these companies/agencies enter
into an agreement with the media owners in India for implementing the said media plan and
procurement of media space for airing or releasing or printing advertisement.
3.1.3 The advertising agency, in this case, enters into two agreements:
i. With the client located outside India for providing a one stop solution starting from
designing the advertisement to its display in the media as agreed to with the client.
The advertising company raises invoice to its foreign client for the above advertising
services and the payments of the same is received from the foreign client in foreign
exchange.
ii. With the media company to procure media space for display of the advertisement and
to monitor campaign progress based on data shared by the media company. The
media company bills the advertising agency and the payment for same is made by the
advertising agency to the media company.
3.1.4 Thus, the agreement, in the instant case, is in the nature of two distinct principal to principal
supplies and no agreement of supply of services exists between the Media company and the foreign
client. The advertising company is not acting as an agent but has been contracted by the client to
procure and provide certain services. The advertising agency is providing the services to the client on
its own account.
3.1.5 In view of above, it is clarified that, in the present scenario, the advertising company is
involved in the main supply of advertising services including resale of media space to the foreign
client on principal-to-principal basis as detailed above and does not fulfil the criteria of
“intermediary” under section 2(13) of the IGST Act and the said circular dated 20.09.2021. Thus, the
Page 178 of 463
same cannot be considered as “intermediary” in such a scenario and accordingly, the place of supply
in the instant matter cannot be linked with the location of supplier of services in terms of section
13(8)(b) of the IGST Act.
3.2 Issue-2 Whether the representative of foreign client in India or the target audience of
the advertisement in India can be considered as “recipient” of the services being supplied by the
advertising company under section 2(93) of CGST Act, 2017?
3.2.1 As per Section 2(93)(a) of the CGST Act, the “recipient” of the services means the person
who is liable to pay consideration where a consideration is payable for the supply of goods or
services or both.
3.2.2 In the instant scenario, the foreign client is liable to pay the consideration to advertising
company for the supply of advertising and not the consumers or the target audience that watches the
advertisement in India. Further, in this case, even if a representative of the said foreign client based in
India, including a subsidiary or related person of the said foreign client, is interacting with the
advertising company on behalf of the said foreign client, the said representative based in India cannot
be considered as a recipient of the service, if the agreement is between the foreign client and the
advertising company, the invoice is being issued for the said service by the advertising company to
the foreign client and the payment for the said service is received by the advertising company directly
from the said foreign client. Further, the target audience of the advertisements may be based in India
but such target audience cannot be considered as recipient of the said advertising services being
supplied by the advertising company as per the definition of the recipient under section 2(93) of
CGST Act.
3.2.3 Therefore, in view of above, it is clarified that the recipient of the advertising services
provided by the advertising company in such cases is the foreign client and not the Indian
representative of the foreign client based in India or the target audience of the advertisements, as per
section 2(93) of the CGST Act, 2017.
3.3 Issue-3 Whether the advertising services provided by the advertising companies to foreign
clients can be considered as performance-based services as per section 13(3) of the IGST act,
2017?
3.3.1 The place of supply of performance based services is provided in sub-section (3) of section
13 of IGST Act. The provisions of clause (a) of the said sub-section pertain to the services supplied in
respect of goods which are required to be made physically available by the recipient of services to the
supplier of services. However, in the instant matter, there does not appear to be any such involvement
of goods which are required to be physically available with supplier of advertising services.
Therefore, the said provisions of clause (a) of the said sub-section cannot be made applicable for
determination of place of supply of advertising services.
3.3.2 Further, clause of (b) of sub-section (3) of section 13 of IGST Act provides that the place of
supply shall be the location where the services are actually performed in case, where i.e.
a. Services are supplied to an individual,
Page 179 of 463
b. Represented either as the recipient of services or a person acting on behalf of the recipient,
and
c. which requires the physical presence of the recipient or the person acting on his behalf,
with the supplier for the supply of services
3.2.3 In the present scenario, the supply of advertising services does not require physical presence
of the recipient (foreign client or representative or a person acting on his behalf) with the advertising
company for availing the said advertising services. Thus, the said supply of advertising services
cannot be considered as being covered under section 13(3)(b) of the IGST Act for being considered as
the services actually performed in India in terms of the said section.
3.3.3 Accordingly, it is clarified that the place of supply of advertising services in such cases can
neither be determined as per the provision of section 13(3)(a) nor as per the provisions of section
13(3)(b) of IGST Act.
4. Further, it is observed that in the present scenario, the place of supply of the above-mentioned
advertising services does not appear to be covered under any other provisions of sub-sections (3) to
(13) of the Section 13 of the IGST Act, 2017. Therefore, in view of foregoing discussion, it appears
that the place of supply of the said advertising service being supplied by the advertising company to
the foreign clients can only be determined as per the default provision, i.e. sub-section (2) of section
13 of IGST Act, i.e. the place of location of the recipient of the services. Since the recipient of the
advertising services in such scenario is the foreign client, who is located outside India, the place of
supply of the said services appears to be the location of the said foreign client i.e. outside India as per
Section 13(2) of IGST Act, 2017, and the said service can be considered to be export of services,
subject to the fulfilment of conditions mentioned in section 2(6) of IGST Act.
5. However, there may be cases where the advertising company located in India merely acts as
an agent of the foreign client in engaging with the media owner for providing media space to the
foreign client. In such cases, the agreement/ contract for providing the media space and broadcast of
the advertisement is directly between media owner and the foreign client. The media owner directly
invoices the foreign client for providing the media space and broadcast of the advertisement and the
foreign client remits the payment for the said services directly to the media owner. In such instances,
the services of providing media space and broadcasting the advertisement are directly provided by the
media owner to the foreign client. In such cases, the advertising company is merely facilitating the
provision of the said services of providing media space and broadcasting the advertisement between
the foreign client and the media owner and does not provide the said services on its own account. The
advertising company invoices the foreign client for the facilitation services provided by it.
5.1 Consequently, in such cases, the advertising company is an "intermediary" in accordance with
Section 2(13) of the CGST Act, 2017, as elucidated in Circular No. 159/2021, in respect of the said
services of facilitating the foreign client and accordingly, the place of supply in respect of the said
services provided by the advertising company to the foreign client is determinable as per section
13(8)(b) of IGST Act, i.e. the location of the supplier, i.e. the location of the advertising company.
6. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
Page 180 of 463
7. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the
Board. Hindi version will follow.
(Sanjay Mangal)
Principal Commissioner (GST)
Page 181 of 463
Agenda Item 3(iii): Amendment in CGST Rules, 2017.
I. Consequential Amendment in Form REG-20 & REG-31 due to amendment in Rule
10A, 21 (h) and 21(i) of CGST Rules, 2017.
Amendment in Rule 10A of CGST Rules, 2017 has been made to provide for the requirement
of the details of the bank account to be furnished as part of registration process. Rule 10A has been
further amended to provide that the details of bank account will be required to be furnished within 30
days of grant of registration or before filing of statement of outwards supply under section 37 of
CGST Act, 2017 in FORM GSTR-1/ IFF, whichever is earlier. Further, clause (d) of rule 21 provides
for cancellation of registration in cases where the provision of rule 10A are violated. Also, in terms of
rule 21A(2A), the registration of a person is liable to be suspended for violation of the provision of
rule 10A. In cases where the registration of the taxpayer is suspended on the system as per rule
21A(2A) for contravention of provisions of rule 10A, intimation in FORM GST REG 31 will be
issued electronically by the system. However, as per third proviso to rule 21A(4), if the bank account
details are furnished by the taxpayer within 30 days of issuance of FORM GST REG 31, then the
suspension will be auto revoked on the system. Any failure to furnish bank account details within 30
days of issuance of FORM GST REG 31 may lead to cancellation of registration by Tax Officer.
1.1 Further, the amendment in Rule 21 of CGST Rules has been made to provide for cancellation
of GST registration in cases wherein a registered person is required to file return under sub-section (1)
of section 39 of CGST Act, 2017 for each month or part thereof, has not furnished returns for a
continuous period of six months; or wherein a registered person, required to file return under proviso
to sub-section (1) of section 39 for each quarter or part thereof, has not furnished returns for a
continuous period of two tax periods.
1.2 To implement the said provisions, GSTN has suggested that certain changes need to be made
in FORM GST-REG 20 & FORM GST-REG 31.

1.3 Law Committee in its meeting held on 31.07.2024 approved the changes made in FORM
GST-REG 20 & FORM GST-REG 31. The amended drafts of FORM REG-20 & REG-31
recommended by the Law Committee are as given below:

Page 182 of 463
Form GST REG-20
[See Rule 22(4)]




Reference No.- ZA260821000033A
Date: DD/MM/YYYY

To

<Taxpayer Name>
<Taxpayer Address>
GSTIN/ UIN: <GSTIN number>

Show Cause Notice No.: <SCN number> Date: DD/MM/YYYY

Order for Dropping the Proceedings for Cancellation of Registration

This has reference to your reply filed vide ARN ---------- dated in response to the show cause notice
referred to above. Upon consideration of your reply and/or submissions made during hearing, the
proceedings initiated for cancellation of registration stands vacated for the following reasons:
<<text>>
Or
This is in reference to Notice issued in REG-31 vide Reference Number <SCN number> dated
DD/MM/YYYY for contravention of provisions of rule 10A of the Central Goods Services Tax Act,
2017.
Since you have furnished the valid details of bank account on the common portal in the system, the
proceedings initiated for cancellation of registration are hereby dropped;
Or
This is in reference to Notice issued in REG-31 vide Reference Number <SCN number> dated
DD/MM/YYYY, for contravention of the provisions of clause (b) or clause (c) of sub-section (2) of
section 29 of the Central Goods Services Tax Act, 2017. Since you have filed all the pending returns
which were due on the date of issue of the aforesaid notice, and have made full payment of self-
assessed tax along with applicable interest and late fee, the proceedings initiated for cancellation of
registration are hereby dropped.

Suspension of the registration stands revoked with effect from DD/MM/YYYY

Signature
< Name of the Officer>

Designation
Jurisdiction Place:
Page 183 of 463
Date:
FORM GST REG – 31
[See rule 21A(2A)]
Reference No. Date: <dd><mm><yyyy>
To,

<Taxpayer Name>
<Taxpayer Address>
GSTIN/ UIN: <GSTIN number>
Intimation for suspension and notice for cancellation of registration.
1. In a comparison of the following, namely,
(i) returns furnished by you under section 39 of the Central Goods and Services Tax Act, 2017;
(ii) outwards supplies details furnished by you in FORM GSTR-1;
(iii) auto-generated details of your inwards supplies for the period __________ to _________;
(iv) ………………….. (specify)
and other available information, the following discrepancies/ anomalies have been revealed: □
Observation 1
□ Observation 2
□ Observation 3 (details to be filled based on the criteria relevant for the taxpayer).

2. These discrepancies/anomalies prima facie indicates contravention of the provisions of the
Central Goods and Services Tax Act, 2017 and the rules made thereunder, such that if not explained
satisfactorily, shall make your registration liable to be cancelled.

3. Considering that the above discrepancies/anomalies are grave and pose a serious threat to
interest of revenue, as an immediate measure, your registration stands suspended, with effect from the
date of this communication, in terms of sub-rule (2A) of rule 21 A.

4. You are requested to submit a reply to the jurisdictional tax officer within thirty days from the
receipt of this notice, providing explanation to the above stated discrepancy/anomaly. Any possible
misuse of your credentials on GST common portal, by any person, in any manner, may also be
specifically brought to the notice of jurisdictional officer.

5. The suspension of registration shall be lifted on satisfaction of the jurisdictional officer with
the reply along with documents furnished by you, and any further verification as jurisdictional officer
considers necessary.

6. You may please note that your registration may be cancelled in case you fail to furnish a
reply with the prescribed period or do not furnish a satisfactory reply

Name:
Designation:

NB: This is a system generated notice and does not require signature by the issuing authority
Page 184 of 463
Or
OR (suspension due to violation of Rule 10A of CGST Rules, 2017)

1. It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details
of bank account within thirty days from the grant of registration, you have not furnished the valid
details of bank account within thirty days from the date of grant of registration.

2. These discrepancies/anomalies prima facie indicate contravention of the provisions of the
Central Goods and Services Tax Act, 2017 and the rules made thereunder, such that if not explained
satisfactorily, shall make your registration liable to be cancelled.

3. Considering that the above discrepancies/anomalies are grave and pose a serious threat to
interest of revenue, as an immediate measure, your registration stands suspended, with effect from the
date of this communication, in terms of rule 21 A.

4. Accordingly, you are requested to furnish the valid details of bank account on the common
portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this
notice, providing explanation to the above stated discrepancy/ anomaly/contravention. Any possible
misuse of your credentials on GST common portal, by any person, in any manner, may also be
specifically brought to the notice of jurisdictional officer.

5. The suspension of registration shall be lifted after you furnish the valid details of bank
account on the common portal within stipulated time.

6. You may please note that your registration may be cancelled in case you fail to furnish the
valid details of bank account on the common portal within stipulated time or fail to furnish a reply
within the stipulated time.
Or
1. It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details
of bank account within thirty days from the grant of registration. The information regarding bank
account details furnished by you are not matching with the details available with bank.

2. These discrepancies/anomalies prima facie indicate contravention of the provisions of the
Central Goods and Services Tax Act, 2017 and the rules made thereunder, such that if not explained
satisfactorily, shall make your registration liable to be cancelled.

3. Considering that the above discrepancies/anomalies are grave and pose a serious threat to
interest of revenue, as an immediate measure, your registration stands suspended, with effect from the
date of this communication, in terms of rule 21 A.
Page 185 of 463
4. Accordingly, you are requested to furnish the valid details of bank account on the common
portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this
notice, providing explanation to the above stated discrepancy/ anomaly/contravention. Any possible
misuse of your credentials on GST common portal, by any person, in any manner, may also be
specifically brought to the notice of jurisdictional officer.

5. The suspension of registration shall be lifted after you furnish the valid details of bank
account on the common portal within stipulated time.

6. You may please note that your registration may be cancelled in case you fail to furnish the
valid details of bank account on the common portal within stipulated time or fail to furnish a reply
within the stipulated time.

OR
(suspension due to violation of Rule 21 of CGST Rules, 2017)
1. It has been noticed that as per the provisions of rule 21 (h) or 21 (i), requiring you to file
return under sub-section (1) of section 39, have not furnished for a continuous period of six months or
for a continuous period of two quarters.

2. These discrepancies/anomalies prima facie indicate contravention of the provisions of the
Central Goods and Services Tax Act, 2017 and the rules made thereunder, such that if not explained
satisfactorily, shall make your registration liable to be cancelled.

3. Considering that the above discrepancies/anomalies are grave and pose a serious threat to
interest of revenue, as an immediate measure, your registration stands suspended, with effect from the
date of this communication, in terms of sub-rule (2A) of rule 21 A.

4. Accordingly, you are requested to file return under subsection (1) of section 39 on the
common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of
this notice, providing explanation to the above stated discrepancy/ anomaly/contravention. Any
possible misuse of your credentials on GST common portal, by any person, in any manner, may also
be specifically brought to the notice of jurisdictional officer.
5. The suspension of registration shall be lifted after you file the returns under sub-section (1)
of section 39 on the common portal.

6. You may please note that your registration may be cancelled in case you fail to file returns
under sub-section (1) of section 39 on the common portal within stipulated date or fail to furnish a
reply within the stipulated time.

NB: This is a system generated notice and does not require signature by the issuing authority.
Page 186 of 463

II. Amendment in Form GST INS-01 in light of enactment of Bharatiya Nyaya Sanhita (BNS),
2023.
2.1 The Bharatiya Nyaya Sanhita (BNS), 2023, which replaces the Indian Penal Code (IPC),1860,
has come into force on 1st July 2024. Consequently, references to the IPC in various GST forms,
including Form GST INS-01, need to be amended to reflect the corresponding provisions in the BNS.
Form GST INS-01, which authorizes inspection or search under section 67 of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as 'CGST Act'), currently includes references to
sections of the IPC relating to penalties for tampering with evidence, making false statements, and
other similar offenses.
2.2 Issues Identified:
The enactment of BNS, 2023, necessitates revisions in Form GST INS-01 to update the penal
provisions. Sections 174, 175, 193, and 418 of the IPC, previously referenced in GST forms, will need
to be replaced by their corresponding sections in the BNS, 2023. These sections pertain to non-
compliance with summons, providing false information, fabricating false evidence, and related
offenses. It is essential that the forms used under the CGST Act accurately reflect the current laws to
prevent any legal infirmity and to avoid confusion in enforcement actions.
2.3 Proposed Amendments:

In order to align with the new BNS, 2023, the following amendments are proposed in Form GST INS-
01:
 Section 174 of IPC to be replaced by Section 208 of BNS.
 Section 175 of IPC to be replaced by Section 210 of BNS.
 Section 193 of IPC to be replaced by Section 229 of BNS.
 Section 418 of IPC to be replaced by Section 316 of BNS.
These amendments ensure the legal robustness of the form and enable continued lawful enforcement
of provisions under the CGST Act.
2.4 Law Committee, in its meeting held on 31.07.2024, deliberated on the proposed amendments
and recommended that the above changes in Form GST INS-01 are necessary to reflect the provisions
of BNS, 2023. The changes to FORM GST INS-01, as recommended by the Law Committee, are as
below:
FORM GST INS -01
AUTHORISATION FOR INSPECTION OR SEARCH
[See rule 139 (1)]
To
……………………………..
………………………………
(Name and Designation of officer)
Whereas information has been presented before me and I have reasons to believe that—
Page 187 of 463
A. M/s._________________________________________________________

has suppressed transactions relating to supply of goods and/or services has suppressed
transactions relating to the stock of goods in hand, has claimed input tax credit in excess of his
entitlement under the Act has claimed refund in excess of his entitlement under the Act has
indulged in contravention of the provisions of this Act or rules made thereunder to evade tax
under this Act;
OR
B. M/s._________________________________________________________

is engaged in the business of transporting goods that have escaped payment of tax is an owner or
operator of a warehouse or a godown or a place where goods that have escaped payment of tax
have been stored
has kept accounts or goods in such a manner as is likely to cause evasion of tax
payable under this Act.
OR
C.
goods liable to confiscation / documents relevant to the proceedings under the Act are
secreted in the business/residential premises detailed herein below
<<Details of the Premises>
Therefore,—
in exercise of the powers conferred upon me under sub-section (1) of section 67 of the Act, I
authorize and require you to inspect the premises belonging to the above mentioned person with
such assistance as may be necessary for inspection of goods or documents and/or any other things
relevant to the proceedings under the said Act and rules made thereunder.
OR
in exercise of the powers conferred upon me under sub-section (2) of section 67 of the Act, I
authorize and require you to search the above premises with such assistance as may be necessary,
and if any goods or documents and/or other things relevant to the proceedings under the Act are
found, to seize and produce the same forthwith before me for further action under the Act and
rules made thereunder.
Any attempt on the part of the person to mislead, tamper with the evidence, refusal to answer the
questions relevant to inspection / search operations, making of false statement or providing false
evidence is punishable with imprisonment and /or fine under the Act read with section 179, 181,
191 and 418 of the Indian Penal Code. section 214, 216, 227 and 318(3) of the Bharatiya Nyaya
Sanhita.

Given under my hand & seal this ………… day of ……… (month) 20.… (year). Valid for ……
day(s).

Seal
Place Signature, Name and designation of the issuing authority
Name, Designation & Signature of the Inspection Officer/s
(i)
(ii)
Page 188 of 463

III Amendment in Rules and Forms due to insertion of section 74A in CGST Act, 2017

3.1 GST Council in its 53rd meeting held on 22nd June 2024, recommended insertion of Section
74A in the CGST Act, 2017. Vide section 134 of Finance Act (No.2), 2024, the said section has been
inserted in CGST Act, 2017. However, the said section of Finance Act (No.2), 2024 is yet to be
notified.
3.2 Subsequent to the insertion of the said section in CGST Act, 2017, consequential amendments
are required to be made in CGST Rules, 2017 along with certain amendments in relevant forms.
3.3 The Law Committee in its meeting dated 31.07.2024 and 23.08.2024 deliberated on the same
and recommended consequential amendments in CGST Rules, 2017 as detailed in Annexure-A,
enclosed with this agenda. Further, the Law Committee also recommended requisite amendments to
be made in GST FORMS as detailed in Annexure-B enclosed with this agenda.
3.4 Law Committee also recommended that in FORM GST DRC-01 on the common portal, in the
dropdown option for “Section / sub-section under which SCN is being issued”, options regarding
issuance of demand notice under sub-section (1) of Section 74A read with clause (i) of sub-section (5)
of Section 74A, and also for demand notice under sub-section (1) of Section 74A read with clause (ii)
of sub-section (5) of Section 74A, may be inserted by GSTN so that the data regarding the number
and amount of notices issued under Section 74A invoking charges of fraud, wilful misstatement,
suppression of facts etc., and those not invoking those charges is readily available. It was
recommended that similar options may be added in FORM GST DRC-07 on the portal against the
entry “4. Section(s) of the Act under which demand is created”.
4. The Agenda is placed before the GST Council for deliberation and approval please.


Page 189 of 463
Annexure-A
Consequential Amendments in CGST Rules, 2017

1. Rule 36(3):
Rule 36. Documentary requirements and conditions for claiming input tax credit. -
(3) No input tax credit shall be availed by a registered person in respect of any tax that has been paid
in pursuance of any order where any demand has been confirmed on account of any fraud,
wilful misstatement or suppression of facts under section 74.

2. Rule 88B (1):
Rule 88B. Manner of calculating interest on delayed payment of tax.-
(1) In case, where the supplies made during a tax period are declared by the registered person in the
return for the said period and the said return is furnished after the due date in accordance with
provisions of section 39, except where such return is furnished after commencement of any
proceedings under section 73 or section 74 or section 74A in respect of the said period, the interest on
tax payable in respect of such supplies shall be calculated on the portion of tax which is paid by
debiting the electronic cash ledger, for the period of delay in filing the said return beyond the due
date, at such rate as may be notified under sub-section (1) of section 50.


3. Rule 88D (3):
Rule 88D. Manner of dealing with difference in input tax credit available in auto-generated
statement containing the details of input tax credit and that availed in return. -
(3) Where any amount specified in the intimation referred to in sub-rule (1) remains to be paid within
the period specified in the said sub-rule and where no explanation or reason is furnished by the
registered person in default or where the explanation or reason furnished by such person is not found
to be acceptable by the proper officer, the said amount shall be liable to be demanded in accordance
with the provisions of section 73 or section 74 or section 74A, as the case may be.

4. Rule 96B (1):
Rule 96B. Recovery of refund of unutilised input tax credit or integrated tax paid on export
of goods where export proceeds not realised.-
(1) Where any refund of unutilised input tax credit on account of export of goods or of integrated
tax paid on export of goods has been paid to an applicant but the sale proceeds in respect of such
export goods have not been realised, in full or in part, in India within the period allowed under the
Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, the
person to whom the refund has been made shall deposit the amount so refunded, to the extent of non-
realisation of sale proceeds, along with applicable interest within thirty days of the expiry of the said
period or, as the case may be, the extended period, failing which the amount refunded shall be
Page 190 of 463
recovered in accordance with the provisions of section 73 or 74 or 74A of the Act, as the case may be,
as is applicable for recovery of erroneous refund, along with interest under section 50:
Provided that where sale proceeds, or any part thereof, in respect of such export goods are not realised
by the applicant within the period allowed under the Foreign Exchange Management Act, 1999 (42 of
1999), but the Reserve Bank of India writes off the requirement of realisation of sale proceeds on
merits, the refund paid to the applicant shall not be recovered.
5. Rule 121:
Rule 121. Recovery of credit wrongly availed.-
The amount credited under sub-rule (3) of rule 117 may be verified and proceedings under section
73 or, as the case may be, section 74 or section 74A, as the case may be, shall be initiated in respect of
any credit wrongly availed, whether wholly or partly.

6. Rule 142:
Rule 142. Notice and order for demand of amounts payable under the Act. -
(1) The proper officer shall serve, along with the
(a) Notice issued under section 52 or section 73 or section 74 or section 74A or section
76 or section 122 or section 123 or section 124 or section 125 or section 127 or section
129 or section 130, a summary thereof electronically in FORM GST DRC-01 ,
(b) statement under sub-section (3) of section 73 or sub-section (3) of section 74 or sub-
section (3) of section 74A, a summary thereof electronically in FORM GST DRC-
02 , specifying therein the details of the amount payable.
(1A) The proper officer may, before service of notice to the person chargeable with tax, interest and
penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74 or sub-section (1) of
Section 74A, as the case may be, communicate the details of any tax, interest and penalty as
ascertained by the said officer, in Part A of FORM GST DRC-01A.
(2) Where, before the service of notice or statement, the person chargeable with tax makes payment of
the tax and interest in accordance with the provisions of sub-section (5) of section 73 or clause (i) of
sub-section (8) of section 74A, as the case may be, or tax, interest and penalty in accordance with the
provisions of subsection (5) of section 74 or clause (i) of sub-section (9) of section 74A, or where any
person makes payment of tax, interest, penalty or any other amount due in accordance with the
provisions of the Act whether on his own ascertainment or, as communicated by the proper officer
under sub-rule (1A), he shall inform the proper officer of such payment in FORM GST DRC-03 and
an acknowledgement, in FORM GST DRC–04 shall be made available to the person through the
common portal electronically.
(2A) Where the person referred to in sub-rule (1A) has made partial payment of the amount
communicated to him or desires to file any submissions against the proposed liability, he may make
such submission in Part B of FORM GST DRC-01A, and thereafter the proper officer may issue an
Page 191 of 463
intimation in Part-C of FORM GST DRC-01A, accepting the payment or the submissions or both, as
the case may be, made by the said person.
(2B) Where an amount of tax, interest, penalty or any other amount payable by a person under section
52 or section 73 or section 74 or section 74A or section 76 or section 122 or section 123 or section
124 or section 125 or section 127 or section 129 or section 130, has been paid by the said person
through an intimation in FORM GST DRC-03 under sub-rule (2), instead of crediting the said amount
in the electronic liability register in FORM GST PMT –01 against the debit entry created for the said
demand, the said person may file an application in FORM GST DRC-03A electronically on the
common portal, and the amount so paid and intimated through FORM GST DRC-03 shall be credited
in Electronic Liability Register in FORM GST PMT –01 against the debit entry created for the said
demand, as if the said payment was made towards the said demand on the date of such intimation
made through FORM GST DRC-03:
Provided that where an order in FORM GST DRC-05 has been issued in terms of sub-rule(3)
concluding the proceedings, in respect of the payment of an amount in FORM GST DRC-03,
an application in FORM GST DRC-03A cannot be filed by the said person in respect of the
said payment.
(3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of
section 73 or under clause (ii) of sub-section (8) of section 74A as the case may be, or tax, interest and
penalty under sub-section (8) of section 74 or under clause (ii) of sub-section (9) of section 74A, as
the case may be, within the period specified therein thirty days of the service of a notice under sub-
rule (1) within thirty days of the service of a notice under sub-rule (1), or where the person concerned
makes payment of the amount referred to in sub-section (1) of section 129 within seven days of the
notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-
section (3), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the
proper officer shall issue an intimation in FORM GST DRC-05 concluding the proceedings in
respect of the said Notice.
(4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or
sub-section (6) of section 74A or sub-section (3) of section 76 or the reply to any Notice issued under
any section whose summary has been uploaded electronically in FORM GST DRC-01 under sub-rule
(1) shall be furnished in FORM GST DRC-06 .
(5) A summary of the order issued under section 52 or section 62 or section 63 or section
64 or section 73 or section 74 or section 74A or section 75 or section 76 or section 122 or section
123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded
electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty, as
the case may be, payable by the person concerned.
(6) The order referred to in sub-rule (5) shall be treated as the notice for recovery.
(7) Where a rectification of the order has been passed in accordance with the provisions of section
161 or where an order uploaded on the system has been withdrawn, a summary of the rectification
order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST
DRC-08.
Page 192 of 463
Annexure-B
Consequential Amendments in CGST Forms
FORM GST DRC-01A
Intimation of tax ascertained as being payable under section 73(5)/74(5) /74A (8)/ 74A (9)
[See Rule 142 (1A), 142(2A)]
Part A
No.: Date:
Case ID No.
To
GSTIN………………………
Name…………………………
Address………………………
Case Proceeding Reference No………………- Intimation of liability under section
73(5)/section 74(5)/ 74A (8)/ 74A(9).
Please refer to the above proceedings. In this regard, the amount of tax/interest/penalty payable
by you under section 73(5) / 74(5) /74A (8) / 74A(9) with reference to the said case as ascertained by
the undersigned in terms of the available information, as is given below:
Act Period Tax Interest Penalty Total
CGST Act
SGST/UTGST Act
IGST Act
Cess
Total
The grounds and quantification are attached / given below:
You are hereby advised to pay the amount of tax as ascertained above along with the amount
of applicable interest in full by ……., failing which Show Cause Notice will be issued under
section 73(1).
OR
Page 193 of 463
You are hereby advised to pay the amount of tax as ascertained above along with the amount
of applicable interest and penalty under section 74(5) by ……..., failing which Show Cause
Notice will be issued under section 74(1).
OR
You are hereby advised to pay the amount of tax as ascertained above along with the amount
of applicable interest in full by ……., failing which Show Cause Notice will be issued under
sub-section (1) of Section 74A read with clause (i) of sub-section (5) of Section 74A.
OR
You are hereby advised to pay the amount of tax as ascertained above along with the amount
of applicable interest and penalty in full by ……., failing which Show Cause Notice will be
issued under sub-section (1) of Section 74A read with clause (ii) of sub-section (5) of Section
74A.

In case you wish to file any submissions against the above ascertainment, the same may be
furnished by……... in Part B of this Form

Signature…………………
Name………………………
Designation………………
Jurisdiction ------------------
Address ----------------------
Upload Attachment

Page 194 of 463
Part B
Reply to the communication for payment before issue of Show Cause Notice
[See Rule 142 (2A)]
Reference No. of Intimation:
Date:
Please refer to Intimation ID…………… in respect of Case ID……………….vide which the
liability of tax payable as ascertained under section 73(5) / 74(5)/ 74A (8)/74A(9) was intimated.
In this regard,
A. this is to inform that the said liability is discharged partially/ fully to the extent of Rs.
…………… through …………..………and the submissions regarding remaining liability are
attached / given below:
OR
B. the said liability is not acceptable and the submissions in this regard are attached / given
below:

Signature of Authorised Signatory
Name……………………………
Designation / Status ………


Upload Attachment
Page 195 of 463
Part C
[See Rule 142(2A)]

Reference No. of Intimation: Date:

To
GSTIN……………………………
Name……………………………
Address…………………………

Acceptance of submission and/or payment made in reply to intimation made in Part-A of FORM
GST DRC-01A

This has reference to the communication issued in Part-A of FORM GST DRC-01A vide reference
no. ---------- dated ----------, the payment made through FORM GST DRC-03 vide reference no. ------
dated --------.The said payment made by you has been found satisfactory and hence accepted.
OR
This has reference to the reply furnished vide reference no. ------ dated -------- in response to the
communication issued in Part-A of Form GST DRC-01A vide reference no. ---------- dated ----------.
along with the payment made through FORM GST DRC-03 vide reference no. ------ dated --------.
The said submission and the payment made by you has been found satisfactory and hence accepted.
OR
This has reference to the reply furnished vide reference no. ------ dated -------- in response to the
communication issued in Part-A of Form GST DRC-01A vide reference no. ---------- dated ----------.
The said reply has been found satisfactory and hence accepted.
Signature…………………
Name…………………
Designation………………
Jurisdiction ………………
Address ……………


Upload Attachment
Page 196 of 463
Agenda Item 3(iv): Clarification on availability of input tax credit in respect of Demo vehicles.
A reference has been received requesting for issuance of clarification regarding availability of
input tax credit (ITC) on Demo vehicles, as divergent views have been taken in multiple advance
rulings due to varied interpretation of provisions of sub-clause (A) of clause (a) of section 17(5) of
CGST Act, 2017 on the same matter.
2. The demo vehicles are the vehicles which the authorised dealers for sale of motor vehicles are
required to maintain at their sales outlet as per dealership norms and are used for providing trial run
and to demonstrate features of the vehicle to potential buyers. These vehicles are purchased by the
authorised dealers from the vehicle manufacturers against tax invoices and are typically reflected as
capital assets in books of account of such authorized dealers. As per dealership norms, these vehicles
are required to be held by authorized dealers as Demo vehicle for certain mandatory period and are
thereafter, generally, sold by the dealer at a written down value and applicable tax on the same is
payable at that point of time.
2.1 Relevant legal provisions are reproduced below:
Section 16. Eligibility and conditions for taking input tax credit.
(1) Every registered person shall, subject to such conditions and restrictions as may be
prescribed and in the manner specified in section 49, be entitled to take credit of input tax
charged on any supply of goods or services or both to him which are used or intended to be
used in the course or furtherance of his business and the said amount shall be credited to the
electronic credit ledger of such person.
….
Section 17. Apportionment of credit and blocked credits. –
…
(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of
section 18, input tax credit shall not be available in respect of the following, namely:-
(a) motor vehicles for transportation of persons having approved seating capacity of not
more than thirteen persons (including the driver), except when they are used for making
the following taxable supplies, namely: -
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
…
2.2 The matter was deliberated by the Law Committee in its meeting held on 29.08.2024. It was
observed that as per provisions of section 16(1) of CGST Act, every registered taxpayer is entitled to
take input tax credit charged on any supply of goods and services made to him, where such goods or
services are used in the course or furtherance of business of such person, subject to such conditions
and restrictions as may be prescribed and in the manner which is specified. As Demo vehicles are
used by authorized dealers to provide trial run and to demonstrate features of the vehicle to potential
buyers, which promotes sale of similar type of motor vehicles, therefore, such vehicles appear to be
Page 197 of 463
used in the course or furtherance of business of the authorized dealers as per section 16(1) of the
CGST Act.
2.3 As per provisions of clause (a) of section 17(5) of the CGST Act, notwithstanding anything
contained in section 16(1) and section 18(1) of the CGST Act, input tax credit is not available in
respect of a motor vehicle for transportation of passengers having a seating capacity of not more than
13 persons(including the driver), except when they are used for making certain taxable supplies which
are specified in the said clause. Accordingly, it needs to be seen whether or not input tax credit is
available on Demo vehicle, which is a motor vehicle for transportation of passengers having approved
seating capacity of not more than 13 persons (including the driver), in terms of clause(a) of section
17(5) of CGST Act.
2.4 In view of the above and considering the advance rulings on the matter, it was felt that the
two issues which are required to be clarified are: -
1. Availability of input tax credit on Demo vehicles, which are motor vehicles for
transportation of passengers having approved seating capacity of not more than 13
persons (including the driver), in terms of clause(a) of section 17(5) of CGST Act.
2. Availability of input tax credit on Demo vehicles in respect of capitalization of such
vehicles in books of account by the authorized dealers.
Issue 1: Availability of input tax credit on Demo vehicles, which are motor vehicles for
transportation of passengers having approved seating capacity of not more than 13 persons
(including the driver), in terms of clause(a) section 17(5) of CGST Act.
3.1 Clause (a) of Section 17(5) of CGST Act provides that input tax credit shall not be available
in respect of motor vehicles for transportation of persons having approved seating capacity of not
more than 13 persons (including the driver), except when they are used for making following
taxable supplies, namely:
A. further supply of such motor vehicles; or
B. transportation of passengers; or
C. imparting training on driving such motor vehicles.
3.2 The intention of law, as it appears from the use of expression ‘when they are used for
making the following taxable supplies’ in the clause (a) of section 17(5) of CGST Act, is to exclude
certain cases (based on the nature of outward taxable supplies being made using the said motor
vehicle) from the restriction on availment of input tax credit in respect of the specified motor vehicles
i.e. motor vehicles for transportation of persons having approved seating capacity of not more than
thirteen persons (including the driver). The taxable supplies permitted for the purpose of being
excluded from the blockage of input tax credit as per provisions of clause (a) of section 17(5) of
CGST Act being further supply of such motor vehicles; or transportation of passengers; or imparting
training on driving such motor vehicles.
3.3 As Demo vehicles are used by authorized dealers to provide trial run and to demonstrate
features of the vehicle to potential buyers, it is quite apparent that Demo vehicles cannot be said to be
used by the authorized dealer for providing taxable supply of transportation of passengers or
imparting training on driving such motor vehicles. Therefore, Demo vehicles are not covered in the
exclusions specified in sub-clauses (B) and (C) of the clause (a) of section 17(5) of CGST Act.
Page 198 of 463
Accordingly, it is to be seen whether or not the Demo vehicles in question can be said to be used for
making “further supply of such motor vehicles”, as specified in the sub-clause (A) of the clause (a) of
section 17(5) of CGST Act.
3.4 Regarding the provisions of blockage of input tax credit, in respect of motor vehicles for
transportation of persons having approved seating capacity of not more than thirteen persons
(including the driver), the usage of the words “such motor vehicles” instead of “said motor
vehicle”, in sub-clause (A) of the clause (a) of section 17(5) of CGST Act, implies that the intention
of the lawmakers was not only to exclude from the blockage of input tax credit, the motor vehicle
which is itself further supplied, but also to exclude from the blockage of input tax credit, the motor
vehicle which is being used for the purpose of further supply of similar type of motor vehicles. As
Demo vehicles are used by authorized dealers to provide trial run and to demonstrate features of the
vehicle to potential buyers, it helps the potential buyers to make a decision to purchase a particular
kind of motor vehicle. Therefore, the Law Committee felt that as the Demo vehicles promote sale of
similar type of motor vehicles, therefore, they are used for making ‘further supply of such motor
vehicles’. Accordingly, input tax credit in respect of Demo vehicles is not blocked under clause
(a) of section 17(5) of CGST Act, as it is excluded from such blockage in terms of sub-clause (A)
of the said clause.
3.5 Here, it is pertinent to mention that there may be some cases where motor vehicles for
transportation of persons having approved seating capacity of not more than thirteen persons
(including the driver) are used by an authorized dealer for purposes other than for making further
supply of such motor vehicles, say for transportation of its staff employees/ management etc. In such
cases, the same cannot be said to be used for making ‘further supply of such motor vehicles’ and
therefore, input tax credit in respect of such motor vehicles would not be excluded from blockage in
terms of sub-clause (A) of clause (a) of section 17(5) of CGST Act.
3.6 Further, there may be cases where the authorized dealer merely acts as an agent or service
provider to the vehicle manufacturer for providing marketing service, including providing facility of
vehicle test drive to the potential customers of the vehicle on behalf of the manufacturer, and is not
directly involved in purchase and sale of the vehicles. In such cases, the sale invoice for the vehicle is
directly issued by the vehicle manufacturer to the customer. For providing facility of vehicle test drive
to the potential customers of the vehicle, the dealer purchases Demo vehicle from the vehicle
manufacturer. The dealer charges the vehicle manufacturer for the services being provided by him to
the vehicle manufacturer and is required to pay GST on the same. The dealer may sell the said Demo
vehicle to a customer after a specified time or kilometres as per agreement with the vehicle
manufacturer on payment of applicable GST. In such a case, the Law Committee felt that the
authorized dealer is merely providing marketing and/or facilitation services to the vehicle
manufacturer and is not making the supply of motor vehicles on his own account. Therefore, the said
Demo vehicle cannot be said to be used by the dealer for making further supply of such motor vehicle.
Accordingly, in such cases, input tax credit in respect of such Demo vehicle would not be excluded
from blockage in terms of sub-clause (A) of clause (a) of section 17(5) of CGST Act and therefore,
input tax credit on the same would not be available to the said dealer.
Page 199 of 463
Issue 2: Availability of input tax credit on Demo vehicles in respect of capitalization of such
vehicles in books of account by the authorized dealers.
4.1 As per provisions of section 16(1) of CGST Act, every registered taxpayer is entitled to take
input tax credit charged on any supply of goods and services made to him, where such goods or
services are used in the course or furtherance of business of such person, subject to such conditions
and restrictions as may be prescribed and in the manner which is specified.

4.2 Further, “goods” has been defined in section 2(52) of CGST Act, as,
"goods" means every kind of movable property other than money and securities but
includes actionable claim, growing crops, grass and things attached to or forming part
of the land which are agreed to be severed before supply or under a contract of supply.
4.3 Also, section 2(19) of CGST Act, defines “capital goods” as,
“capital goods” means goods, the value of which is capitalized in the books of account
of the person claiming the input tax credit and which are used or intended to be used in
the course or furtherance of business.
4.4 As mentioned in paras above, as the Demo vehicles are used by the authorized dealers to
promote further sale of motor vehicles of the similar type, therefore, such vehicles appear to be used
in the course or furtherance of business of the authorized dealers. Where such vehicles are capitalized
in the books of accounts by the authorized dealer, the said vehicle falls into the definition of “capital
goods” under section 2(19) of CGST Act. As per provision of section 16(1) of CGST Act, subject to
such conditions and restrictions as may be prescribed, a recipient of goods is entitled to take input tax
credit in respect of tax charged on the inward supply of any goods, which as per definition of “goods”
under section 2(52) of CGST Act, includes even capital goods. Further, section 2(19) of CGST Act
also recognizes that capital goods are used or intended to be used in the course or furtherance of
business. Accordingly, the Law Committee felt that availability of input tax credit on Demo
vehicles is not affected by way of capitalization of such vehicles in the books of account of the
authorized dealers, subject to other provisions of the Act.
4.5 However, it was observed by the Law Committee that in case of capitalization of Demo
vehicles, availability of input tax credit would be subject to provisions of section 16(3) of CGST Act,
which provides that where the registered person has claimed depreciation on the tax component of the
cost of capital goods and plant and machinery under the Income-tax act,1961, the input tax credit on
the said tax component shall not be allowed. It was further mentioned that in case a Demo vehicle
which is capitalized, is subsequently sold by the authorized dealer, the authorized dealer shall have to
pay an amount or tax as per provisions of section 18(6) of the CGST Act read with rule 44(6) of the
CGST Rules.
5 The Law Committee recommended that the issue may be clarified through a circular on the
above lines. The draft circular recommended by the Law Committee is enclosed with this
agenda as Annexure A.
6. The proposal in para 5 above is placed before GST Council for approval.
*****
Page 200 of 463
Annexure A
Circular No. -GST
F. No. CBIC-20001/3/2024-GST
Government of India
Ministry of Finance
Department of Revenue
*****
New Delhi, Dated the , 2024
To,
All the Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax
All the Principal Directors General/ Directors General

Madam/Sir,

Subject: Clarification on availability of input tax credit in respect of Demo vehicles-reg.
The Demo vehicles are the vehicles which the authorised dealers for sale of motor vehicles
are required to maintain at their sales outlet as per dealership norms and are used for providing trial
run and to demonstrate features of the vehicle to potential buyers. These vehicles are purchased by the
authorised dealers from the vehicle manufacturers against tax invoices and are typically reflected as
capital assets in books of account of authorized dealers. As per dealership norms, these vehicles are
required to be held by authorized dealers as Demo vehicle for certain mandatory period and are,
thereafter, generally sold by the dealer at a written down value and applicable tax is payable at that
point of time.
2. Reference has been received to issue clarification regarding availability of input tax credit in
respect of demo vehicles on the following issues:
i. Availability of input tax credit on Demo vehicles, which are motor vehicles for
transportation of passengers having approved seating capacity of not more than
13 persons (including the driver), in terms of clause(a) of section 17(5) of Central
Goods & Services Tax Act, 2017 (hereinafter referred to as the ‘CGST Act”).
ii. Availability of input tax credit on Demo vehicles in respect of capitalization of
such vehicles in the books of account by the authorized dealers.

3. In order to ensure uniformity in the implementation of the provisions of law across the field
formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby
clarifies the above issues as below.
4. Availability of input tax credit on Demo vehicles, which are motor vehicles for
transportation of passengers having approved seating capacity of not more than 13 persons
(including the driver), in terms of clause(a) of section 17(5) of CGST Act.
4.1 Clause (a) of Section 17(5) of CGST Act provides that input tax credit shall not be available
in respect of motor vehicles for transportation of persons having approved seating capacity of not
Page 201 of 463
more than 13 persons (including the driver), except when they are used for making following
taxable supplies, namely:
A. further supply of such motor vehicles; or
B. transportation of passengers; or
C. imparting training on driving such motor vehicles.
4.2 The intention of law, as it appears from the use of expression ‘when they are used for
making the following taxable supplies’ in the clause (a) of section 17(5) of CGST Act, is to exclude
certain cases (based on the nature of outward taxable supplies being made using the said motor
vehicle) from the restriction on availment of input tax credit in respect of the specified motor vehicles
i.e. motor vehicles for transportation of persons having approved seating capacity of not more than
thirteen persons (including the driver). The taxable supplies permitted for the purpose of being
excluded from the blockage of input tax credit as per provisions of clause (a) of section 17(5) of
CGST Act being further supply of such motor vehicles; or transportation of passengers; or imparting
training on driving such motor vehicles.
4.3 As Demo vehicles are used by authorized dealers to provide trial run and to demonstrate
features of the vehicle to potential buyers, it is quite apparent that Demo vehicles cannot be said to be
used by the authorized dealer for providing taxable supply of transportation of passengers or
imparting training on driving such motor vehicles. Therefore, Demo vehicles are not covered in the
exclusions specified in sub-clauses (B) and (C) of the clause (a) of section 17(5) of CGST Act.
Accordingly, it is to be seen whether or not the Demo vehicles in question can be said to be used for
making “further supply of such motor vehicles”, as specified in the sub-clause (A) of the clause (a) of
section 17(5) of CGST Act.
4.4 Regarding the provisions of blockage of input tax credit, in respect of motor vehicles for
transportation of persons having approved seating capacity of not more than thirteen persons
(including the driver), the usage of the words “such motor vehicles” instead of “said motor
vehicle”, in sub-clause (A) of the clause (a) of section 17(5) of CGST Act, implies that the intention
of the lawmakers was not only to exclude from the blockage of input tax credit, the motor vehicle
which is itself further supplied, but also to exclude from the blockage of input tax credit, the motor
vehicle which is being used for the purpose of further supply of similar type of motor vehicles. As
Demo vehicles are used by authorized dealers to provide trial run and to demonstrate features of the
vehicle to potential buyers, it helps the potential buyers to make a decision to purchase a particular
kind of motor vehicle. Therefore, as Demo vehicles promote sale of similar type of motor vehicles,
they are used by the dealer for making ‘further supply of such motor vehicles’. Accordingly, input
tax credit in respect of Demo vehicles is not blocked under clause (a) of section 17(5) of CGST
Act, as it is excluded from such blockage in terms of sub-clause (A) of the said clause.
4.5 There may be some cases where motor vehicles for transportation of persons having approved
seating capacity of not more than thirteen persons (including the driver) are used by an authorized
dealer for purposes other than for making further supply of such motor vehicles, say for transportation
of its staff employees/ management etc. In such cases, the same cannot be said to be used for making
‘further supply of such motor vehicles’ and therefore input tax credit in respect of such motor vehicles
would not be excluded from blockage in terms of sub-clause (A) of clause (a) of section 17(5) of
CGST Act.
Page 202 of 463
4.6 Further, there may be cases where the authorized dealer merely acts as an agent or service
provider to the vehicle manufacturer for providing marketing service including providing facility of
vehicle test drive to the potential customers of the vehicle on behalf of the manufacturer and is not
directly involved in purchase and sale of the vehicles. In such cases, the sale invoice for the vehicle is
directly issued by the vehicle manufacturer to the customer. For providing facility of vehicle test drive
to the potential customers of the vehicle, the dealer purchases Demo vehicle from the vehicle
manufacturer. The dealer may sell the said Demo vehicle to a customer after a specified time or
kilometres as per agreement with the vehicle manufacturer on payment of applicable GST. In such a
case, the authorized dealer is merely providing marketing and/or facilitation services to the vehicle
manufacturer and is not making the supply of motor vehicles on his own account. Therefore, the said
Demo vehicle cannot be said to be used by the dealer for making further supply of such motor vehicle.
Accordingly, in such cases, input tax credit in respect of such Demo vehicle would not be excluded
from blockage in terms of sub-clause (A) of clause (a) of section 17(5) of CGST Act and therefore,
input tax credit on the same would not be available to the said dealer.
5. Availability of input tax credit on Demo vehicles in respect of capitalization of such
vehicles in the books of account by the authorized dealers.
5.1 As per provisions of section 16(1) of CGST Act, every registered taxpayer is entitled to take
input tax credit charged on any supply of goods and services made to him, where such goods or
services are used in the course or furtherance of business of such person, subject to such conditions
and restrictions as may be prescribed and in the manner which is specified.
5.2 Further, “goods” has been defined in section 2(52) of CGST Act, as,
"goods" means every kind of movable property other than money and securities but
includes actionable claim, growing crops, grass and things attached to or forming part
of the land which are agreed to be severed before supply or under a contract of supply.
5.3 Also, section 2(19) of CGST Act, defines “capital goods” as,
“capital goods” means goods, the value of which is capitalized in the books of account
of the person claiming the input tax credit and which are used or intended to be used in
the course or furtherance of business.
5.4 As mentioned in paras above, as the Demo vehicles are used by the authorized dealers to
promote further sale of motor vehicles of the similar type and therefore, such vehicles appear to be
used in the course or furtherance of business of the authorized dealers. Where such vehicles are
capitalized in the books of accounts by the authorized dealer, the said vehicle falls into the definition
of “capital goods” under section 2(19) of CGST Act. As per provision of section 16(1) of CGST Act,
subject to such conditions and restrictions as may be prescribed, a recipient of goods is entitled to take
input tax credit in respect of tax charged on the inward supply of any goods, which as per definition of
“goods” under section 2(52) of CGST Act, includes even capital goods. Further, section 2(19) of
CGST Act also recognizes that capital goods are used or intended to be used in the course or
furtherance of business. Accordingly, availability of input tax credit on Demo vehicles is not
affected by way of capitalization of such vehicles in the books of account of the authorized
dealers, subject to other provisions of the Act.
5.5 However, it is to be mentioned that in case of capitalization of Demo vehicles, availability of
input tax credit would be subject to provisions of section 16(3) of CGST Act, which provides that
Page 203 of 463
where the registered person has claimed depreciation on the tax component of the cost of capital
goods and plant and machinery under the Income-tax act,1961, the input tax credit on the said tax
component shall not be allowed. It is further mentioned that in case Demo vehicle which is
capitalized, is subsequently sold by the authorized dealer, the authorized dealer shall have to pay an
amount or tax as per provisions of section 18(6) of CGST Act read with rule 44(6) of the Central
Goods and Service Tax Rules, 2017.
6. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
7. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the
Board. Hindi version would follow.

Sanjay Mangal
Pr. Commissioner (GST)

Page 204 of 463
Agenda Item 3(v): Implementation of provisions of sub-section (5) and sub-section (6) in
section 16 of CGST Act.
The GST Council in its 53rd meeting recommended to retrospectively amend section 16 of the
Central Goods & Services Tax Act, 2017 (herein after referred to as the ‘CGST Act”) with effect from
01.07.2017:
a) to provide that the time limit to avail input tax credit under Section 16(4) of CGST Act,
through any FORM GSTR 3B filed till 30/11/2021 for the financial years 2017-18,
2018-19, 2019-20 and 2020-21, be deemed to be 30.11.2021 and
b) to allow for relaxation of conditions under Section 16(4) of the Act, in cases where the
returns for the period from the date of cancellation of registration/effective date of
cancellation of registration till the date of revocation of cancellation of registration are
filed after revocation of cancellation of registration.

Further, it was recommended that no refund of tax already paid, or input tax credit reversed would be
allowed on account of these retrospective amendments.
1.2 In order to implement the above recommendations of the Council, the following provisions
have been proposed to be inserted in section (16) of CGST Act, retrospectively with effect from
01.07.2017, vide section 118 and section 150 of the Finance (No. 2) Act, 2024. The said provisions
are yet to be notified.
118. In section 16 of the Central Goods and Services Tax Act, with effect from the 1st day
of July, 2017, after sub-section (4), the following sub-sections shall be inserted, namely:
––
“(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or
debit note for supply of goods or services or both pertaining to the Financial Years 2017-
18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input
tax credit in any return under section 39 which is filed upto the thirtieth day of
November, 2021.
(6) Where registration of a registered person is cancelled under section 29 and
subsequently the cancellation of registration is revoked by any order, either under
section 30 or pursuant to any order made by the Appellate Authority or the Appellate
Tribunal or court and where availment of input tax credit in respect of an invoice or
debit note was not restricted under sub-section (4) on the date of order of cancellation of
registration, the said person shall be entitled to take the input tax credit in respect of
such invoice or debit note for supply of goods or services or both, in a return under
section 39,––
(i) filed upto thirtieth day of November following the financial year to which such invoice
or debit note pertains or furnishing of the relevant annual return, whichever is earlier;
or
(ii) for the period from the date of cancellation of registration or the effective date of
cancellation of registration, as the case may be, till the date of order of revocation of
Page 205 of 463
cancellation of registration, where such return is filed within thirty days from the date of
order of revocation of cancellation of registration,
whichever is later.”.
150. No refund shall be made of all the tax paid or the input tax credit reversed, which
would not have been so paid, or not reversed, had section 118 been in force at all
material times.
1.3 In respect of the same, several representations have been received from trade and industry
requesting for clarification in respect of various issues pertaining to availment of benefit of the said
amendments in section 16 of CGST Act, to the taxpayers against whom demands have been issued
alleging wrong availment of input tax credit in contravention of provisions of sub-section (4) of
section 16 of CGST Act, who are now entitled to avail the said input tax credit as per the
retrospectively inserted provisions of sub-section (5) or sub-section (6) of section 16 of the CGST
Act. It has further been requested that in respect of cases where the appeals have either not been filed
against demand orders/ appellate orders or the time to file appeal against the said orders has already
expired, the benefit of the inserted provisions may be made available without the need for filing
appeals, or without requirement of payment of pre-deposit for filing appeals for vacating the demands
already created. It has been represented that denial of benefit in cases where time for filing of appeals
is already over, or demanding pre-deposit for filing appeals in such cases would defeat the purpose of
said relief being provided through the said sub-sections and would not only result in locking of the
funds of the taxpayers but would also result in subsequent workload of tax officers in processing the
refund applications in respect of such pre-deposits paid.
2.1 The matter was discussed by the Law committee in its meeting held on 23.08.2024. The Law
Committee observed that the following type of scenarios may emerge where relief under sub-section
(5) or sub-section (6) of section 16 of CGST Act may be available to the taxpayers-

a) Where no demand notice/ statement under section 73 or section 74 of CGST Act has
been issued to the taxpayer -
(i) Where no intimation under rule 142(1A) of CGST Rules 2017 has been
issued.
(ii) Where intimation under rule 142(1A) of CGST Rules 2017 has been issued.
b) Where demand notice/ statement under section 73 or section 74 of CGST Act has
been issued but no order under the said sections has been issued to the taxpayer.
c) Where the order under section 73 or section 74 has already been issued to the
taxpayer and-

(i) Where appeal has not been filed by the taxpayer against the said demand
order, irrespective of whether the time limit for filing the appeal is over or not.

(ii) Where appeal has been filed by the taxpayer or the tax authorities with the
Appellate Authority and:
a) order under section 107 has not been issued by the Appellate Authority; or
Page 206 of 463
b) order under section 107 has been issued by the Appellate Authority.
(iii) Where Revisionary Authority has initiated proceedings under section 108 of the
CGST Act and:

a) order under section 108 of CGST Act has not been issued by the Revisionary
Authority; or
b) order under section 108 of CGST Act has been issued by the Revisionary
Authority.
2.2 Further, based on the action warranted by the taxpayer or tax authorities, the Law committee
deliberated on the above scenarios by broadly classifying them into different categories, as below-
A. Where no demand notice/statement has been issued under section 73 or section 74 of the
CGST Act:
In cases, where any investigation/proceedings in respect of wrong availment of input tax
credit alleging contravention of provisions of sub-section (4) of section 16 of the CGST Act
has been initiated, but no demand notice/statement under section 73 or section 74 of the said
Act has been issued till the date on which sub-section (5) and sub-section (6) of section 16 of
the CGST Act are notified, and taxpayers are now entitled to avail the said input tax credit
under the provisions of sub-section (5) or sub-section (6) of section 16 of the CGST Act, the
proper office shall take cognizance of the sub-section (5) or sub-section (6) of section 16 of
CGST Act, inserted retrospectively with effect from 01.07.2017 and take further appropriate
action. This also includes the cases where an intimation in FORM DRC-01A under rule
142(1A) of the CGST Rules is issued for denial of input tax credit on account of
contravention of sub-section (4) of section 16 of the said Act, but no demand notice/statement
under section 73 or section 74 of the said Act has been issued.
B. Where demand notice/ statement under section 73 or section 74 of CGST Act has been
issued but no order under section 73 or section 74 of CGST Act has been issued by the
Adjudicating Authority:
In such cases, the Adjudicating Authority shall take cognizance of sub-section (5) or sub-
section (6) of section 16 of the CGST Act, inserted retrospectively w.e.f. 01.07.2017, and pass
appropriate order under section 73 or section 74 of the CGST Act.
C. Where order under section 73 or section 74 of the CGST Act has been issued and appeal
has been filed under section 107 of the CGST Act with the Appellate Authority but no
order under section 107 of the CGST Act has been issued by the Appellate Authority:
In such cases, the Appellate Authority shall take cognizance of sub-section (5) or sub-section
(6) of section 16 of the CGST Act, inserted retrospectively w.e.f. 01.07.2017, and pass
appropriate order under section 107 of the CGST Act.
D. Where order under section 73 or section 74 of the CGST Act has been issued and
Revisional Authority has initiated proceedings under section 108 of the CGST Act, but
no order under section 108 of the CGST Act has been issued by the Revisional
Authority:
Page 207 of 463
In such cases, the Revisional Authority shall take cognizance of sub-section (5) or sub-section
(6) of section 16 of the CGST Act, inserted retrospectively w.e.f. 01.07.2017, and pass
appropriate order under section 108 of the CGST Act.
E. Where order under section 73 or section 74 of the CGST Act has been issued but no
appeal against the said order has been filed with the Appellate Authority, or where the
order under section 107 or section 108 of the CGST Act has been issued by the Appellate
Authority or the Revisional Authority but no appeal against the said order has been
filed with the Appellate Tribunal:

In such cases, the taxpayer normally has an option to file appeal with the Appellate Authority
or the Appellate Tribunal, as the case may be, under section 107 or section 112 of the CGST
Act, respectively, within the time limit specified in the said provisions. However, filing of
such appeals will require payment of mandatory pre-deposit, as specified in the said sections.
The Law committee felt that requiring such deposit of pre-deposit amount in respect of a
demand denying input tax credit for alleged contravention of provisions of sub-section (4) of
section 16 of CGST Act, when such input tax credit may otherwise now be eligible in terms
of sub-section (5) or sub-section (6) of section 16 of the CGST Act, inserted retrospectively
w.e.f. 01.07.2017, appears to be unfair and unnecessary burden on the taxpayer. It was also
discussed that there may be several cases where the time of filing of appeal with the Appellate
Authority against an order under section 73 or section 74 of CGST Act may already have
expired, as the said taxpayers, especially small taxpayers, either may not be aware of the said
orders or were not in a position to pay the requisite pre-deposit amount for filing such
appeals. The Law committee felt that denial of benefit in cases where time for filing of
appeals is already over, or demanding pre-deposit for filing appeals in such cases, would
defeat the purpose of said relief being provided, on the recommendation of GST Council,
through the said sub-sections.
Accordingly, in order to provide remedy in such cases, the Law committee recommended
that a special procedure for rectification of orders may be notified under section 148 of the
CGST Act, to be followed by the class of taxable persons, against whom orders under section
73 or section 74 or section 107 or section 108 of the CGST Act have been issued confirming
demand for wrong availment of input tax credit on account of contravention of provisions of
sub-section (4) of section 16 of the CGST Act, but where such input tax credit is now
available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the CGST
Act, and where appeal against the said order has not been filed till the date of issuance of the
said notification under section 148 of the CGST Act.
3. In light of above, the Law Committee recommended that:
a. As provisions of sub-section (5) and sub-section (6) of section 16 of the CGST Act
are to come into force retrospectively with effect from 1st July, 2017, section 118 and 150 of
the Finance (No. 2) Act, 2024, may be notified by the Central Government at the earliest with
the recommendations of the Council. Whenever the States will notify the concerned
provisions in their respective SGST Acts, the same will also come into effect from 1st July,
2017. This will help in early implementation of the intended relief being provided to the
taxpayers through the insertion of said provisions.
b. Once the sub-section (5) and sub-section (6) of section 16 of the CGST Act are
notified, a special procedure for rectification of orders may be notified by the Centre under
Page 208 of 463
section 148 of the CGST Act, to be followed by the class of taxable persons, against whom
any order under section 73 or section 74 or section 107 or section 108 of the CGST Act has
been issued confirming demand for wrong availment of input tax credit on account of
contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such
input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of
section 16 of the CGST Act, and where appeal against the said order has not been filed till the
date of issuance of the said notification under section 148 of the CGST Act. The said special
procedure may provide for filing of such application for rectification of order within a period
of six month from the date of issuance of the said notification and the proper officer may be
required to take a decision on the said application for rectification and issue the order within a
period of three months from the date of filing of application for rectification, as far as
possible. The draft Notification recommended by the Law Committee is enclosed as
Annexure X to this Agenda. Whenever the states will notify the said provisions of sub-
section (5) and sub-section (6) of section 16 in their respective SGST Acts, they will also
notify the said special procedure under section 148 of their respective SGST Acts with effect
from the date on which the Centre had issued the said notification.
c. A circular clarifying the action to be taken by the tax authorities and/ or by the
taxpayers on the lines of para 2.2 above, may be issued after issuance of the notification under
section 148 of the CGST Act mentioned in Sr. No. (b) above. Draft Circular recommended
by the Law Committee is enclosed as Annexure Y to this Agenda.
d. An MIS may be made available by GSTN for tax authorities inter alia including the
number of cases where rectification application filed, number of cases where application is
disposed of and number of cases where the application is pending for more than three months,
enabling them to monitor the progress of the action taken by the tax officers in respect of the
applications for rectification filed under the above special procedure.
4. Accordingly, the recommendations of the Law committee in para 3 above, are placed before
the GST Council for deliberation and approval.
*****







Page 209 of 463
Annexure X
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

NOTIFICATION No. – CENTRAL TAX

New Delhi, dated the , 2024
S.O....(E).— In exercise of the powers conferred under section 148 of the Central Goods and Services
Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the
recommendations of the Council, hereby notifies the following special procedure for rectification of
order, to be followed by the class of taxable persons (hereinafter referred to as the said person),
against whom any order under section 73 or section 74 or section 107 or section 108 of the said Act
has been issued confirming demand for wrong availment of input tax credit on account of
contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax
credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the
said Act, and where appeal against the said order has not been filed till the date of issuance of this
notification.
2. The said person shall file an application for rectification of the said order issued under section
73 or section 74 or section 107 or section 108 of the said Act, as the case may be, confirming demand
for wrong availment of input tax credit, on account of contravention of provisions of sub-section (4)
of section 16 of the said Act, but where such input tax credit is now available as per the provisions of
sub-section (5) or sub-section (6) of section 16 of the said Act, and where appeal against the said
order has not been filed till the date of issuance of this notification, electronically on the common
portal, before the authority who has issued such order, within a period of six months from the date of
issuance of this notification.
3. The said person shall upload along with the said application, the information in the proforma
in Annexure A of this notification.
4. The authority carrying out such rectification shall take a decision on the said application and
issue the order within a period of three months from the date of the said application, as far as possible.
5. In case where any rectification is required to be made in the order referred to in para 1, the
said authority shall also upload a summary of the rectified order electronically in FORM GST DRC-
08, in cases where rectification of an order issued under section 73 or section 74 of the said Act is
being made, and in FORM GST APL-04, in cases where rectification of an order issued under section
107 or section 108 of the said Act is being made. The rectification is required to be made only in
respect of demand of such input tax credit which has been alleged to be wrongly availed in
contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax
credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the
said Act.
Page 210 of 463

6. Where the rectification adversely affects the said person, the principles of natural justice shall
be followed by the authority carrying out such rectification.
[F. No. CBIC-20001/10/2023-GST]
(Raghavendra Pal Singh)
Director
Page 211 of 463
Annexure A
Proforma to be uploaded by the taxable person along with the application for rectification of order
under Notification No. XX/2024-GST dated XX, XX, 2024
1. Basic Details:

a. GSTIN:
b. Legal Name:
c. Trade Name, if any:
d. Order in respect of which rectification application has been filed:
1) Order Reference Number:
2) Order Date:

2. Details of demand confirmed in the said order:

(Amount in Rs.)
Sr.
No.
Financial
Year IGST CGST SGST CESS
Total Tax
including
Cess
Interest Penalty
2 3 4 5 6 7 8 9
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Total

3. Out of the amount mentioned in the Table in Sr. No. 2 above:
a. the details of the demand confirmed in the said order, of the input tax credit wrongly
availed on account of contravention of sub-section (4) of section 16, which is now eligible
as per sub-section (5) of section 16:

(Amount in Rs.)
Sr. No.
Financial
Year
IGST CGS
T
SGST CES
S
Total Tax
including
Cess
Interest Penalty
Page 212 of 463
1 2 3 4 5 6 7 8 9
2017-18
2018-19
2019-20
2020-21
Total
and/or

b. the details of the demand confirmed in the said order of the input tax credit wrongly
availed on account of contravention of sub-section (4) of section 16, other than that
mentioned in (a) above, which is now eligible as per sub-section (6) of section 16:

(Amount in Rs.)
Sr. No. Financial
Year
IGST
CGS
T
SGST
CES
S
Total Tax
including
Cess
Interest Penalty
1 2 3 4 5 6 7 8 9
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Total

4

Declaration:
1. I undertake that, no appeal under section 107 is pending against the order against which this
rectification application is filed.

2. I declare that all information provided by me is accurate and truthful. I understand that any
incorrect declaration or suppression of facts will render this application void and may lead to
recovery proceedings for the outstanding dues along with applicable interest and penalties.
Page 213 of 463
5
Verification:
I________________ (name of the authorized signatory), hereby declare that the information
provided above is true and correct to the best of my knowledge and belief. I understand that any
incorrect declaration or suppression of facts will render my application void.
Signature of authorized signatory
Name/Designation
Email address
Mobile No.



Page 214 of 463
Annexure Y
Circular No. /10/2024-GST
F. No. CBIC-20001/3/2024-GST
Government of India
Ministry of Finance
Department of Revenue
*****
New Delhi, Dated the , 2024
To,
All the Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax
All the Principal Directors General/ Directors General

Madam/Sir,

Subject: Clarifying the issues regarding implementation of provisions of sub-section (5) and
sub-section (6) in section 16 of CGST Act -reg.
Reference is invited to sub-section (5) and sub-section (6) of section 16 of the Central Goods
& Services Tax Act, 2017 (herein after referred to as the “CGST Act”) inserted in section 16 of the
CGST Act , with effect from the 1st day of July, 2017, vide section 118 of the Finance (No. 2) Act,
2024, whereby the time limit to avail input tax credit under provisions of sub-section (4) of section 16
of CGST Act has been retrospectively extended in certain specified cases.
1.2 Sub-section (4), sub-section (5) and sub-section (6) of section 16 of the CGST Act are
reproduced below for ready reference:
(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or
debit note for supply of goods or services or both after the thirtieth day of November following
the end of financial year to which such invoice or debit note pertains or furnishing of the relevant
annual return, whichever is earlier.
Provided that the registered person shall be entitled to take input tax credit after the due date of
furnishing of the return under section 39 for the month of September, 2018 till the due date of
furnishing of the return under the said section for the month of March, 2019 in respect of any
invoice or invoice relating to such debit note for supply of goods or services or both made during
the financial year 2017-18, the details of which have been uploaded by the supplier under sub
section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said
section for the month of March, 2019.
(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or
debit note for supply of goods or services or both pertaining to the Financial Years 2017
18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input
tax credit in any return under section 39 which is filed upto the thirtieth day of
November, 2021.
Page 215 of 463
(6) Where registration of a registered person is cancelled under section 29 and
subsequently the cancellation of registration is revoked by any order, either under
section 30 or pursuant to any order made by the Appellate Authority or the Appellate
Tribunal or court and where availment of input tax credit in respect of an invoice or
debit note was not restricted under sub-section (4) on the date of order of cancellation of
registration, the said person shall be entitled to take the input tax credit in respect of
such invoice or debit note for supply of goods or services or both, in a return under
section 39,––
(i) filed upto thirtieth day of November following the financial year to which such invoice
or debit note pertains or furnishing of the relevant annual return, whichever is earlier;
or
(ii) for the period from the date of cancellation of registration or the effective date of
cancellation of registration, as the case may be, till the date of order of revocation of
cancellation of registration, where such return is filed within thirty days from the date of
order of revocation of cancellation of registration,
whichever is later.
1.3 Further, it has been provided in section 150 of the Finance (No. 2) Act, 2024 (reproduced
below), that no refund of any tax paid or the input tax credit reversed shall be granted on account of
the said retrospective insertion of sub-section (5) and sub-section (6) of section 16 of the CGST Act.
150. No refund shall be made of all the tax paid or the input tax credit reversed, which
would not have been so paid, or not reversed, had section 118 been in force at all
material times.
1.4 Besides, vide Notification No. XX/2024-GST dated XX, XX, 2024, a special procedure for
rectification of orders has been notified under section 148 of the CGST Act, to be followed by the
class of taxable persons, against whom orders under section 73 or section 74 or section 107 or section
108 of the CGST Act have been issued confirming demand for wrong availment of input tax credit on
account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where
such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of
section 16 of the CGST Act, and where appeal against the said order has not been filed till the date of
issuance of this notification.
1.5 Representations have been received from trade and industry requesting for clarification in
respect of various issues pertaining to availment of benefit of the said amendments in section 16 of
CGST Act to the taxpayers against whom demands have been issued alleging wrong availment of
input tax credit in contravention of provisions of sub-section (4) of section 16 of CGST Act, who are
now entitled to avail the said input tax credit as per the retrospectively inserted provisions of sub-
section (5) or sub-section (6) of section 16 of the CGST Act.
2. In order to ensure uniformity in the implementation of the provisions of law across the field
formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby
clarifies the issues as below.
Page 216 of 463
3. The following action may be taken by the tax authorities and/ or the taxpayers in various
scenarios for availment of benefit on account of retrospectively inserted provisions of sub-section (5)
or sub-section (6) of section 16 of the CGST Act:
3.1 Where no demand notice/statement has been issued under section 73 or section 74 of the
CGST Act:
In cases, where any investigation/proceedings in respect of wrong availment of input tax credit
alleging contravention of provisions of sub-section (4) of section 16 of the CGST Act has been
initiated, but no demand notice/statement under section 73 or section 74 of the said Act has been
issued, and taxpayers are now entitled to avail the said input tax credit under the provisions of
sub-section (5) or sub-section (6) of section 16 of the CGST Act, the proper office shall take
cognizance of the sub-section (5) or sub-section (6) of section 16 of CGST Act, inserted
retrospectively with effect from 01.07.2017 and take further appropriate action. This also includes
the cases where an intimation in FORM DRC-01A has been issued under rule 142(1A) of the
CGST Rules for denial of input tax credit on account of contravention of sub-section (4) of
section 16 of the said Act, but no demand notice/statement under section 73 or section 74 of the
said Act has been issued.

3.2 Where demand notice/ statement under section 73 or section 74 of CGST Act has been
issued but no order under section 73 or section 74 of CGST Act has been issued by the
Adjudicating Authority:
In such cases, the Adjudicating Authority shall take cognizance of sub-section (5) or sub-section
(6) of section 16 of the CGST Act, inserted retrospectively with effect from 01.07.2017, and pass
appropriate order under section 73 or section 74 of the CGST Act.

3.3 Where order under section 73 or section 74 of the CGST Act has been issued and appeal has
been filed under section 107 of the CGST Act with the Appellate Authority but no order
under section 107 of the CGST Act has been issued by the Appellate Authority:
In such cases, the Appellate Authority shall take cognizance of sub-section (5) or sub-section (6)
of section 16 of the CGST Act, inserted retrospectively with effect from 01.07.2017, and pass
appropriate order under section 107 of the CGST Act.

3.4 Where order under section 73 or section 74 of the CGST Act has been issued and Revisional
Authority has initiated proceedings under section 108 of the CGST Act, but no order under
section 108 of the CGST Act has been issued by the Revisional Authority:
In such cases, the Revisional Authority shall take cognizance of sub-section (5) or sub-section (6)
of section 16 of the CGST Act, inserted retrospectively with effect from 01.07.2017, and pass
appropriate order under section 108 of the CGST Act.
3.5 Where order under section 73 or section 74 of the CGST Act has been issued but no appeal
against the said order has been filed with the Appellate Authority, or where the order under
section 107 or section 108 of the CGST Act has been issued by the Appellate Authority or
the Revisional Authority but no appeal against the said order has been filed with the
Appellate Tribunal:
In such cases, where any order under section 73 or section 74 or section 107 or section 108 of the
CGST Act has been issued confirming demand for wrong availment of input tax credit on account
of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such
input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of
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section 16 of the CGST Act, and where appeal against the said order has not been filed, the
concerned taxpayer may apply for rectification of such order under the special procedure under
section 148 of the CGST Act notified vide Notification No. XX/2024-GST dated XX, XX, 2024 ,
within a period of six months from the date of issuance of the said notification.
3.5.1 The taxpayers can file an application for rectification electronically, after login to
www.gst.gov.in , using their credentials, by navigating as below in various cases:
a. In case where an application for rectification of an order issued under section 73 or section
74 of the CGST Act is to be filed:
i. Click Dashboard > Services > User Services > My Applications.
ii. Select "Application for rectification of order" in the Application Type field. Then,
click the NEW APPLICATION button.

b. In case where an application for rectification of an order issued under section 107 of
the CGST Act is to be filed:
i. Click Dashboard > Services > User Services > View Additional
Notices/Orders
ii. Additional Notices and Orders page is displayed. Click the View hyperlink to go to
the Case Details screen of the issued Notice/Order.
iii. Case Details page is displayed. The APPLICATIONS tab is selected by default.
Select the ORDERS tab and click the "Initiate Rectification" link.


c.In case where an application for rectification of an order issued under section 108 of the
CGST Act is to be filed:

i. Click Dashboard > Services > User Services > View Additional Notices/Orders
ii. Additional Notices and Orders page is displayed. Click the View hyperlink to go to
the Case Details screen of the issued Notice/Order.
iii. Case Details page is displayed. The NOTICES tab is selected by default. To submit
Rectification Request against the Revision Order issued to you by the Revisional
Authority, select the ORDERS tab and click the "Initiate Rectification" link.

3.5.2 While filing such application for rectification of order, the taxpayer shall upload along with
the application for rectification of order, the information in the proforma in Annexure A of the
said notification, containing inter-alia the details of the demand confirmed in the said order of
the input tax credit wrongly availed on account of contravention of sub-section (4) of section 16
of the CGST Act, which is now eligible as per sub-section (5) and/or sub-section (6) of section
16 of the CGST Act.

3.5.3 Such application for rectification shall be dealt by the proper officer who had passed the order
for which the said rectification application has been filed. The said officer shall take a decision
on the said application for rectification and issue the order within a period of three months from
the date of such application, as far as possible. Besides, in case where any rectification is being
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made by the proper officer in the order for which the rectification application has been filed, he
shall also upload a summary of the rectified order electronically in FORM DRC-08 in cases
where rectification of an order issued under section 73 or section 74 of the CGST Act is being
made, and in FORM GST APL-04, in cases where rectification of an order issued under section
107 or section 108 of the said Act is being made. While taking a decision on such application
for rectification filed under the said special procedure, the proper officer shall also consider
other grounds, if any, for denial of input tax credit, other than contravention of sub-section (4)
of section 16 of the CGST Act, invoked in the concerned notice issued under section 73 or
section 74, as applicable, in respect of the said amount of input tax credit.
3.5.4 Where the rectification adversely affects the said person, the principles of natural justice shall
be followed by the said proper officer.
3.5.5 Further, it is to be noted that in cases where any rectification has been made by the proper
officer in the order for which the rectification application has been filed, an appeal against such
rectified order can be filed under the provisions of section 107 or section 112 of the CGST Act,
as the case may be, within the time limit specified therein.

4. It is pertinent to note that in terms of section 150 of the Finance (No. 2) Act, 2024, no refund
of tax already paid or input tax credit already reversed would be available, where such tax has
been paid or input tax credit has been reversed on account of contravention of provisions of
sub-section (4) of section 16 of the CGST Act, and where such input tax credit is now
available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the CGST
Act.
5. It is to be noted that the rectification application of an order issued under section 73 or section
74 or section 107 or section 108 of the CGST Act, can be filed under the special procedure
notified vide Notification No. XX/2024-GST dated XX, XX, 2024, within a period of six
months from the date of issuance of the said notification, only in cases where the issue or one
of the issues on which the demand has been confirmed in the said order, pertains to wrong
availment of input tax credit on account of contravention of provisions of sub-section (4) of
section 16 of the CGST Act, and where such input tax credit is now available as per the
provisions of sub-section (5) or sub-section (6) of section 16 of the CGST Act. In cases
where no such issue is involved and a taxpayer requires to file an application of rectification
of an order, such rectification application can be filed by the taxpayers only under the
provisions of section 161 of the CGST Act, within the time limit specified therein. In case a
taxpayer has filed an application for rectification of an order under the special procedure
notified vide Notification No. XX/2024-GST dated XX, XX, 2024, but where it is found that
the issues in the said order do not involve any issue of wrong availment of input tax credit on
account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, and
where such input tax credit is now available as per the provisions of sub-section (5) or sub-
section (6) of section 16 of the CGST Act, such an application would be summarily rejected
by the proper officer with a remark that, “The rectification application is rejected as it is
found that the same is not covered under the Notification No. XX/2024-GST dated XX, XX,
2024, as no such issue is involved in the said order pertaining to wrong availment of input tax
credit on account of contravention of provisions of sub-section (4) of section 16 of the CGST
Act, and where such input tax credit is now available as per the provisions of sub-section (5)
or sub-section (6) of section 16 of the CGST Act”.
Page 219 of 463

6. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
7. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the
Board. Hindi version would follow.

Sanjay Mangal
Pr. Commissioner (GST)

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Agenda Item 3(vi): Clarification on place of supply of data hosting services provided by service
providers located in India to cloud computing service providers located outside India.
Representations have been received from the trade and industry seeking clarification on the
place of supply of data hosting services provided by service providers located in India to clients
(cloud computing service providers) located outside India.

2. Background

2.1 The cloud computing ecosystem generally comprises of three major stakeholders:
i. Data hosting service providers
ii. Cloud computing service providers
iii. Subscribers or end users of cloud computing service
2.2 Data hosting service provider provides data hosting services on stable and accessible web
platform through computing and networking equipment for the purpose of collecting, storing,
processing, distributing, or allowing access to large amounts of data. Cloud computing service
providers provide cloud-based applications and software services to various clients/end users for data
storage, analytics, artificial intelligence, machine learning, processing, database analysis and
deployment services for increasing organization efficiency and lowering IT and operating costs. The
end users access these services seamlessly over the internet through technology hosted on data centers
operated by data hosting service providers. The end users may include individuals using cloud
gaming, small businesses hosting websites, and large enterprises performing complex analytics.
2.3 The transactions between these stakeholders include the following scenarios:
2.3.1 Cloud computing companies engage data hosting service providers in various countries to
avail data hosting services so as to provide supply of cloud computing services globally. Many large
cloud computing companies have their dedicated data centres across the globe depending upon the
customer base. However, smaller cloud computing companies, who cannot afford to build and operate
data centre, may engage some data hosting service providers in various countries depending upon the
customer base.
2.3.2 Data hosting service providers may either own premises for data centre or operate data centre
on leased premises; procure hardware, uninterrupted power supplies, backup generators, ventilation
and cooling equipment, network connectivity, fire suppression systems, security, human resource,
etc.; handle operations like server monitoring, IT management; and equipment maintenance including
repairs and replacements of the same for providing data hosting services to their clients. Data hosting
service providers charge their clients for their services factoring in all the expenses made by them
while providing the data hosting services. The charges may vary from fixed rates to usage-based
charges to mixed charges, depending on the specific services and agreements in place between them
which is the consideration paid by the clients to the data hosting service providers for data hosting
services. Where the said service is being provided by data hosting service provider to the cloud
computing service providers located outside India, the same is being considered by data hosting
service providers as export of the services and refund on the same is being claimed by them.
2.3.3 Overseas cloud computing service providers provide cloud-based applications using the IT
infrastructure in data centres to provide the cloud computing services to the end users. In cases, where
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cloud computing services are being provided by overseas cloud computing service providers directly
to unregistered end-users/customers/subscribers based in India, the same is subject to GST at the hand
of the overseas cloud computing service providers after getting registered as OIDAR service provider
in India. However, where the overseas cloud computing service providers are providing cloud
computing services to a registered person in India, such registered person in India is required to pay
GST on the same as import of services on reverse charge basis. Besides in some cases, the cloud
computing service providers may engage resellers in various countries, including in India, to supply
their cloud computing services to end users/consumers across the globe. Such resellers in India. who
receive cloud computing services from overseas cloud computing service providers for further supply,
are required to pay GST on such import of services on reverse charge basis.
3. It has been represented by the trade that some field formations are of the view that the place
of supply of data hosting service provided by the service providers located in India to cloud
computing service providers located outside India is the location of data hosting service provider in
India and therefore, the benefit of export of services is not available on such supply of data hosting
services. The following reasons are being cited by the said field formations:


(a) Data hosting services are “intermediary services”

Some of the field formations are taking the view that the data hosting service is ‘intermediary service’
and the place of supply of the same is to be determined in terms of Section 13(8)(b) of Integrated
Goods and Services Tax Act, 2017 (“IGST Act”) i.e. location of data hosting service provider situated
in India, on the following grounds:
i. Data hosting service provider in India are agents/ brokers who facilitate supply of goods or
service between cloud computing service providers and their customer (end subscribers).
ii. Data hosting services are being provided on behalf of cloud computing services provider to
other entities.
iii. Profit/markup on the expenses, including that on hardware infrastructure, made by data
hosting service providers, which are being included by them in their charges from the
overseas cloud computing service providers, are to be treated as commission income.

(b) Services are provided in relation to goods “made available” by recipient of service
Some other field formations are of the view that in cases where data hosting service provider
procures some hardware infrastructure to cater to the requirements of the overseas cloud computing
service providers and includes these expenses in their service charges which are paid by the overseas
cloud computing service providers as consideration, such hardware will be considered as owned by
the overseas cloud computing service providers and being made physically available by the overseas
cloud computing service providers to the data hosting service provider in order to provide services.
Accordingly, it is being claimed that since the data hosting services are actually performed on the
hardware which are physically made available by the overseas cloud computing service providers to
the data hosting service provider, the place of supply, in this case, is to be determined as per Section
13(3)(a) of IGST Act and therefore, will be the location of data hosting service provider in India.

(c) Services are provided in relation to “immovable property”
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Some field formations are taking the view that the said services are covered under Section
13(4) of the IGST Act as service is being provided in relation to an immovable property and therefore,
the place of supply of the said services is the location of the immovable property i.e. the location of
Data Centre of the data hosting service provider situated in India.

4. Relevant legal provisions:

4.1 Section 2(6) of the IGST Act lays down the conditions that need to be fulfilled to qualify as
export of services, which is reproduced below for reference:
“export of services” means the supply of any service when, –
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible
foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India;
and
(v) the supplier of service and the recipient of service are not merely establishments of a
distinct person in accordance with Explanation 1 in section 8”
4.2 Section 2(13) of IGST Act defines ‘intermediary’ as below:
“Intermediary means a broker, an agent or any other person by whatever name called, who
arranges or facilitates the supply of goods or services or both or securities between two or
more persons but does not include a person who supplies such goods or services or both or
securities on his own account”.

4.3 Section 13 of the IGST Act provides for the determination of the Place of supply of services
where location of supplier or location of recipient is outside India.

4.4 According to Section 13(2) of the IGST Act,
“the place of supply of services except the services specified in sub-sections (3) to (13) shall
be the location of the recipient of services.”
Proviso to the said sub-section reads as under:
“Provided that where the location of the recipient of services is not available in the
ordinary course of business, the place of supply shall be the location of the supplier
of services.”

4.5 Section 13(3) of IGST Act provides that the place of supply will be location where the
services are actually performed. The section reads as under:
“(3) The place of supply of the following services shall be the location where the services are
actually performed, namely:-
(a) services supplied in respect of goods which are required to be made physically
available by the recipient of services to the supplier of services, or to a person acting
on behalf of the supplier of services in order to provide the services:
Provided that when such services are provided from a remote location by way of
electronic means, the place of supply shall be the location where goods are situated
at the time of supply of services:
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Provided further that nothing contained in this clause shall apply in the case of
services supplied in respect of goods which are temporarily imported into India for
repairs or for any other treatment or process and are exported after such repairs or
treatment or process without being put to any use in India, other than that which is
required for such repairs or treatment or process;

4.7 Section 13(4) of IGST Act provides for place of supply where services supplied are directly in
relation to immovable property. The same reads as under:
“13. (1) ….
(2) ….
(3) ….
(4) The place of supply of services supplied directly in relation to an immovable
property, including services supplied in this regard by experts and estate agents, supply of
accommodation by a hotel, inn, guest house, club or campsite, by whatever name called,
grant of rights to use immovable property, services for carrying out or co-ordination of
construction work, including that of architects or interior decorators, shall be the place
where the immovable property is located or intended to be located.”

4.8 Section 13(8)(b) of the IGST Act provides a legal presumption regarding the place of supply
for intermediary services which reads as below:
“13(8) The place of supply of the following services shall be the location of the supplier of
services, namely:––
(a) ………………………;
(b) intermediary services;
(c) ……………………….”

5. Examination of the issue
The issue has been examined in light of the relevant legal provisions and it has been observed that
there are three issues that need to be clarified:
i. Whether data hosting service provider qualifies as ‘Intermediary’ between the cloud
computing service provider and their end customers/users/subscribers as per Section 2(13) of
the IGST Act and whether the services provided by data hosting service provider to cloud
computing service providers are covered as intermediary services and the place of supply of
the same is to be determined as per section 13(8)(b) of IGST Act.
ii. Whether the Data Hosting services are provided in relation to goods “made available” by
recipient of services to service provider for supply of such services and the place of supply of
the same is to be determined as per section 13(3)(a) of the IGST Act.
iii. Whether the Data Hosting services are provided directly in relation to “immovable property”
and the place of supply of the same is to be determined as per section 13(4) of the IGST Act.

5.1 Issue (i) - Whether data hosting service provider qualifies as ‘Intermediary’ between the
cloud computing service provider and their end customers/users/subscribers as per Section
2(13) of the IGST Act and whether the services provided by data hosting service provider to
cloud computing service providers are covered as intermediary services and the place of supply of
the same is to be determined as per section 13(8)(b) of IGST Act.
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5.1.1 Section 2(13) of the IGST Act defines ‘intermediary’ as a broker, an agent or any other
person by whatever name called who arranges or facilitates the supply of goods or services or both
or securities between two or more persons but does not include a person who supplies such goods or
services or both or securities on his own account”.
5.1.2 Further, the scope of intermediary services has been clarified in Circular No. 159/15/2021-
GST dated 20.09.2021. In the said circular, basic perquisites for intermediary services have been
clarified as below:
i. It requires minimum three parties. Therefore, an activity between only two parties cannot be
considered as an intermediary service. An intermediary essentially “arranges or
facilitates” another supply (the “main supply”) between two or more other persons and,
does not himself provide the main supply.
ii. There have to be two distinct supplies between the principals and between the agent
(intermediary) and the principal.
iii. Intermediary service provider to have the character of an agent, broker or any other similar
person.
iv. It does not include a person who supplies such goods or services or both on his own account.
5.1.3 As mentioned above in paras 2.3.1 and 2.3.2, the overseas cloud computing service providers
enter into contract with data hosting service providers in India to use their data centres for hosting
cloud computing services. Data hosting service provider is an independent entity who either owns
premises for data centre or operates data centre on leased premises, procures infrastructure and human
resource, handles operations like infrastructure monitoring, IT management and equipment
maintenance, etc. to provide the said supply of data hosting services to the overseas cloud
computing service providers. The data hosting service provider handles all aspects of data centre like
rent, software and hardware infrastructure, power, net connectivity, security, human resource, etc.
Importantly, the data hosting service providers do not deal with end users/consumers of cloud
computing services and may not even know about the end users.

5.1.4 Thus, from the above, it is observed that in the instant scenario, data hosting service provider
provides data hosting services to overseas cloud computing service provider on a web platform
through computing and networking equipment for the purpose of collecting, storing, processing,
distributing, or allowing access to large amounts of data. The cloud computing service provider
provides cloud-based applications and software services to various end users/customers/subscribers
for data storage, analytics, artificial intelligence, machine learning, processing, database analysis and
deployment services, etc. The end users/customers/subscribers access this cloud computing services
seamlessly over the internet through technology hosted on data centers. There appears no contact
between data hosting service provider and the end users/ consumers/ subscribers of the cloud
computing service provider. Thus, it is observed that the data hosting service provider provides data
hosting services to the cloud computing service providers on principal-to-principal basis on his own
account and is not acting as a broker or agent for facilitating supply of service between cloud
computing service providers and their end users/consumers.
5.1.5 Accordingly, in such a scenario, data hosting service provider cannot be considered as
intermediary under section 2(13) of the IGST Act and hence, the place of supply of the data hosting
services cannot be determined as per section 13(8)(b) of IGST Act.
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5.2 Issue (ii) Whether the Data Hosting services are provided in relation to goods “made
available” by recipient of services to service provider for supply of such services and the place
of supply of the same is to be determined as per section 13(3)(a) of the IGST Act, 2017.
5.2.1 Section 13(3)(a) of the IGST Act provides that in cases where the services are supplied in
respect of goods which are made physically available by the recipient of services to service provider,
the place of supply will be location of service provider.
5.2.2 It is being claimed by some field formations that data hosting service providers procure
hardware or equipment for data centre and expenses of the same are included in their service charges
which are paid by the cloud computing service providers and therefore, such hardware is to be
considered as owned by the said cloud computing service providers. Further, it is also being claimed
that the same is to be considered as made physically available to the data hosting service providers so
that they can provide the data hosting services and hence, the said services shall be considered to be
supplied in respect of goods which are made physically available by the recipient of services to
service provider, and therefore, the place of supply of the same needs to be determined under section
13(3)(a) of the IGST Act.
5.2.3 In the instant scenario, it is observed that for providing seamless data hosting services to the
overseas cloud computing service providers, the data hosting service provider, as an independent
entity, is providing services through the premises, hardware and personnel at the data centre which
not only comprises of hardware but also other essential infrastructure (without which the hardware
infrastructure cannot be utilized) like ventilation and cooling system, uninterrupted power supply,
software, network connectivity, security protocols, etc. which are owned by the data hosting service
providers and are independently, handled, operated, monitored and maintained by them. These data
hosting service providers are charging their clients (cloud computing service providers), the charges
for the services being provided by them to these clients as consideration depending on the specific
terms and conditions as per agreements between them. From the above, it is observed that throughout
the provision of the said services, the data hosting service provider owns premises for data center or
operates data center on leased premises, independently handles, monitors and maintains the premises,
hardware and software infrastructure, personnel and in such scenario, the overseas cloud computing
service providers cannot be considered to own the said infrastructure and make the same physically
available to the data hosting service provider for supply of the said services
5.2.4 In view of above, in the instant scenario, data hosting services provided by data hosting
service provider to the said cloud computing service providers cannot be considered in relation to the
goods “made available” by the said cloud computing service providers to the data hosting service
provider in India and hence, the place of supply of the same cannot be determined under section
13(3)(a) of the IGST Act.
5.2.5 There may be some cases where some of the hardware required for data hosting service is
provided by the recipient of the service, i.e., the cloud computing service provider to the data hosting
service provider. Even in these cases, data hosting service provider handles all aspects of data centre,
like arranging for the premises, making available software and other hardware infrastructure, power,
net connectivity, security, human resource, maintenance etc., for providing data hosting services to
the cloud computing service provider. Accordingly, in such cases, though the data hosting services is
being provided by the data hosting service provider inter-alia using the hardware made available by
the cloud computing service provider, it cannot be said that data hosting service are being provided in
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relation to the said goods made available by the cloud computing service provider to them.
Accordingly, even in these cases, place of supply cannot be determined under section 13(3)(a) of the
IGST Act.
5.3 Issue (iii) Whether the Data Hosting services are provided directly in relation to
“immovable property” and the place of supply of the same is to be determined as per section
13(4) of the IGST Act.
5.3.1 Section 13(4) of the IGST Act provides for the place of supply where services supplied are
directly in relation to immovable property. Some field formations are of the view that the data
hosting services are provided through the data center which is located at an immovable property and
accordingly, this service of making available the infrastructure located in an immovable property for
providing data hosting services needs to be considered as the services provided directly in relation to
immovable property and accordingly, the place of supply of the same needs to be determined as per
section 13(4) of the IGST Act i.e. the location of immovable property in India.

5.3.2 In the present scenario, as detailed in para 2.3.2 above, the data hosting service providers
either use owned or leased premises for keeping IT infrastructure and other hardware required for
providing data hosting services. They also procure hardware, uninterrupted power supplies, backup
generators, ventilation and cooling equipment, network connectivity, fire suppression systems,
security, human resource, etc.; handle operations like server monitoring, IT management; and
equipment maintenance including repairs and replacements of the same for providing data hosting
services to their clients.

5.3.3 Thus, it is observed that data hosting services are not passive supply of a service directly in
respect of immovable property but are regarding supply of a comprehensive service related to data
hosting which involves the supply of various services by the data hosting service provider like
operating data centre; ensuring uninterrupted power supplies, backup generators, network
connectivity, backup facility, firewall services, and monitoring and surveillance service for
ensuring continuous operations of the servers and related hardware, etc. which are essential for
cloud computing service provider to provide cloud computing services to end users/customer/
subscribers.

5.3.4 In view of the above, the data hosting services cannot be considered as services provided
directly in relation to immovable property or physical premises and hence, the place of supply of such
services cannot be determined under section 13(4) of IGST Act.
6 Accordingly, it is also observed that in the cases mentioned above, the place of supply for the
data hosting services provided by the data hosting service provider in India to overseas cloud
computing service providers does not fit into any specific provisions outlined in sections 13(3) to
13(13) of the IGST Act. Therefore, according to the default provision under section 13(2) of the IGST
Act, the place of supply is determined to be the location of the recipient of the services. Where the
cloud computing service providers receiving the data hosting services are located outside India, the
place of supply is considered to be outside India according to section 13(2) of the IGST Act.
7. Accordingly, supply of data hosting services being provided by data hosting service provider
located in India to an overseas cloud computing entity can be considered as export of services, subject
to the fulfilment of the other conditions mentioned in section 2(6) of IGST Act.
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8. Law Committee in its meeting held on 29.08.2024 deliberated on the issue and recommended
issuance of a circular on the above lines. The draft circular as recommended by the Law Committee is
enclosed as Annexure-A with this agenda.
9. Accordingly, the agenda is placed before the GST Council for approval.




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Annexure A
Circular No. XXX/XX/-GST
F.No. CBIC-xxxx/xx/2024-GST
Government of India Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***
New Delhi, dated the XXth XXX, 2024
To,
The Principal Chief Commissioners/ Chief Commissioners/
Principal Commissioners/ Commissioners of Central Tax (All),
The Principal Directors General/ Directors General (All).

Madam/Sir,
Subject: Clarification on place of supply of Data Hosting services provided by service providers
located in India to cloud computing service providers located outside India-reg.
Representations have been received from the trade and industry seeking clarification on the
Place of Supply in case of Data Hosting services provided by service providers located in India to
cloud computing service providers located outside India.

2. Issue

2.1 It has been represented that some field formations are of the view that the place of supply of
data hosting services provided by the service providers located in India to cloud computing service
providers located outside India is the location of data hosting service provider in India and therefore,
the benefit of export of services is not available on such supply of data hosting services.

2.2 Thus, clarification has been sought in respect of the following issues-

(i) Whether data hosting service provider qualifies as ‘Intermediary’ between the cloud computing
service provider and their end customers/users/subscribers as per Section 2(13) of the Integrated
Goods and Services Tax Act, 2017 (herein after referred to as the “IGST Act”) and whether the
services provided by data hosting service provider to cloud computing service providers its clients are
covered as intermediary services and the place of supply of the same is to be determined as per
section 13(8)(b) of IGST Act.
(ii) Whether the Data Hosting services are provided in relation to goods “made available” by recipient
of services to service provider for supply of such services and the place of supply of the same is to be
determined as per section 13(3)(a) of the IGST Act.
(iii) Whether the Data Hosting services are provided directly in relation to “immovable property” and
the place of supply of the same is to be determined as per section 13(4) of the IGST Act.

3. Clarification
Page 229 of 463
3.1 Whether data hosting service provider qualifies as ‘Intermediary’ between the cloud
computing service provider and their end customers/users/subscribers as per Section 2(13) of
the IGST Act and whether the services provided by data hosting service provider to cloud
computing service providers are covered as intermediary services and the place of supply of the
same is to be determined as per section 13(8)(b) of IGST Act.

3.1.1 As per section 2(13) of the IGST Act, read with Circular no. 159/15/2021-GST dated
20.09.2021, a broker, agent or any other person who arranges or facilitates the main supply of goods
or services or both or securities and has not involved himself in the main supply on his own account is
considered as ‘intermediary’. Persons who supply goods or services, or both on their own account are
not covered in the definition of “intermediary”.

3.1.2 The cloud computing service providers generally enter into contract with data hosting service
providers to use their data centres for hosting cloud computing services. Data hosting service provider
either owns premises for data centre or operates data centre on leased premises, procures
infrastructure and human resource, handles operations like infrastructure monitoring, IT management
and equipment maintenance, etc. to provide the said supply of data hosting services to the cloud
computing service providers. The data hosting service provider generally handles all aspects of data
centre like rent, software and hardware infrastructure, power, net connectivity, security, human
resource, etc. Importantly, the data hosting service providers do not deal with end users/consumers of
cloud computing services and may not even know about the end users.

3.1.3 It is observed that data hosting service provider provides data hosting services to the cloud
computing service provider on a web platform through computing and networking equipment for the
purpose of collecting, storing, processing, distributing, or allowing access to large amounts of data.
The cloud computing service provider provides cloud-based applications and software services to
various end users/customers/subscribers for data storage, analytics, artificial intelligence, machine
learning, processing, database analysis and deployment services, etc.. The end
users/customers/subscribers access cloud computing services seamlessly over the internet through
technology hosted on data centers. There appears to be no contact between data hosting service
provider and the end users/ consumers/ subscribers of the overseas cloud computing service provider.
Thus, it is observed that the data hosting service provider provides data hosting services to the cloud
computing service provider on principal-to-principal basis on his own account and is not acting as a
broker or agent for facilitating supply of service between cloud computing service providers and their
end users/consumers.

3.1.4 Accordingly, it is clarified that in such a scenario, the services provided by data hosting
service provider to its overseas cloud computing service providers cannot be considered as
intermediary services and hence, the place of supply of the same cannot be determined as per section
13(8)(b) of IGST Act.

3.2 ii) Whether the Data Hosting services are provided in relation to goods “made
available” by recipient of services to service provider for supply of such services and the place
of supply of the same is to be determined as per section 13(3)(a) of the IGST Act, 2017.
Page 230 of 463
3.2.1 Section 13(3)(a) of the IGST Act provides that in cases where the services are supplied in
respect of goods which are made physically available by the recipient of services to service provider,
the place of supply will be location of service provider.
3.2.2 In the instant scenario, it is observed that the data hosting service provider, as an independent
entity, is providing seamless data hosting services to the overseas cloud computing service providers,
through the premises, hardware and personnel at the data centre which not only comprises of
hardware but also other essential infrastructure (without which the hardware infrastructure cannot be
utilized) like ventilation and cooling system, uninterrupted power supply, software, network
connectivity, security protocols, etc. which are owned by the data hosting service providers and are
independently handled, operated, monitored and maintained by them. These data hosting service
providers are charging their clients (cloud computing service providers), the charges for the services
being provided by them to these clients as consideration depending on the specific terms and
conditions as per agreements between them. From the above, it is observed that throughout the
provision of the said services, the data hosting service provider owns premises for data center or
operates data center on leased premises, independently handles, monitors and maintains the premises,
hardware and software infrastructure, personnel and in such scenario, the overseas cloud computing
service providers cannot be considered to own the said infrastructure and make the same physically
available to the data hosting service provider for supply of the said services
3.2.3 In view of above, it is clarified that data hosting services provided by data hosting service
provider to the said cloud computing service providers cannot be considered in relation to the goods
“made available” by the said cloud computing service providers to the data hosting service provider in
India and hence, the place of supply of the same cannot be determined under section 13(3)(a) of the
IGST Act.
3.2.4 There may be some cases where some of the hardware required for data hosting service is
provided by the recipient of the service, i.e., the cloud computing service provider to the data hosting
service provider. Even in these cases, data hosting service provider handles all aspects of data centre,
like arranging for the premises, making available software and other hardware infrastructure, power,
net connectivity, security, human resource, maintenance etc., for providing data hosting services to
the cloud computing service provider. Accordingly, in such cases, though the data hosting services is
being provided by the data hosting service provider inter-alia using the hardware made available by
the cloud computing service provider, it cannot be said that data hosting service are being provided in
relation to the said goods made available by the cloud computing service provider to them.
Accordingly, even in these cases, place of supply cannot be determined under section 13(3)(a) of the
IGST Act..
3.3 Whether the Data Hosting services are provided directly in relation to “immovable
property” and the place of supply of the same is to be determined as per section 13(4) of the
IGST Act.

3.3.1 Section 13(4) of the IGST Act provides for the place of supply where services supplied are
directly in relation to immovable property.

3.3.2 In the present scenario, it is observed that the data hosting service providers either use owned
or leased premises for keeping IT infrastructure and other hardware required for providing data
Page 231 of 463
hosting services. They also procure hardware, uninterrupted power supplies, backup generators,
ventilation and cooling equipment, network connectivity, fire suppression systems, security, human
resource, etc.; handle operations like server monitoring, IT management; and equipment maintenance
including repairs and replacements of the same for providing data hosting services to their clients.
3.3.3 Thus, it is observed that data hosting services are not passive supply of a service
directly in respect of immovable property but are regarding supply of a comprehensive service related
to data hosting which involves the supply of various services by the data hosting service provider
like operating data centre; ensuring uninterrupted power supplies, backup generators, network
connectivity, backup facility, firewall services, and monitoring and surveillance service for
ensuring continuous operations of the servers and related hardware, etc. which are essential for
cloud computing service provider to provide cloud computing services to end
users/customer/subscribers.

3.3.4 Accordingly, it is clarified in such a scenario, that the data hosting services cannot be
considered as services provided directly in relation to immovable property or physical premises and
hence, the place of supply of such services cannot be determined under section 13(4) of IGST Act.

4. Further, the place of supply for the data hosting services provided by data hosting service
provider located in India to overseas cloud computing service providers does not appear to fit into any
specific provisions outlined in sections 13(3) to 13(13) of the IGST Act. Therefore, the place of
supply in such cases needs to be determined according to the default provision under section 13(2) of
the IGST Act, i.e. the location of the recipient of the services. Where the cloud computing service
provider receiving the data hosting services are located outside India, the place of supply will be
considered to be outside India according to section 13(2) of the IGST Act.

5. Accordingly, supply of data hosting services being provided by a data hosting service
provider located in India to an overseas cloud computing entity can be considered as export of
services, subject to the fulfilment of the other conditions mentioned in section 2(6) of IGST Act.
6. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
7. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the
Board. Hindi version will follow.

(Sanjay Mangal)
Principal Commissioner (GST)


Page 232 of 463
Agenda Item 4: Issues recommendations by the Fitment Committee for the consideration
of the GST Council:
This agenda item deals with proposals regarding GST rates on supply of goods and
services. The proposed changes in GST rates emanate from the recommendations made by the
Fitment Committee.

2. Accordingly, Fitment Agenda for the consideration of the GST Council is summarised
as below
(a) Recommendations made by the Fitment Committee for making changes in GST rates or
for issuing clarifications in relation to goods - Annexure-I

(b) Issues where no change has been proposed by the Fitment Committee in relation to goods
- Annexure- II
(c) Recommendations made by the Fitment Committee for making changes in GST rates or
for issuing clarifications in relation to services - Annexure- IV

(d) Issues where no change has been proposed by the Fitment Committee in relation to
services - Annexure-V
(e) Issue which has been proposed by the Fitment Committee for deferring in relation to
services Annexure-VI

(f) Agenda note on review of 51st GST Council’s recommendation to amend GST laws to
provide clarity on the taxation of supplies in casinos, horse racing and online gaming.
Page 233 of 463

(a). Recommendations made by the Fitment Committee for making changes in GST rates or
for issuing clarifications in relation to goods
Annexure-I
S.
No.
Description
of Goods
/HSN
Present
Rate
Requested Rate Comments
1. Roof mounted
air
conditioners
for Railways
[8415]

28% Request for
clarification on
HSN
classification for
these goods to
clear whether
these goods fall
under-
heading 8415
with 28% GST
rate
or
8607 with 18%
under GST
applicable,

due to contrary
AAR rulings.
• Goods falling under heading 8415 attract a GST rate of
28% vide S. No. 119 of Schedule IV of notification No.
01/2017-CT (Rate) dated 28.06.2017, which reads as:
“Air-conditioning machines, comprising a motor
driven fan and elements for changing the
temperature and humidity, including those machines
in which the humidity cannot be separately
regulated.”
• Further, the goods falling under heading 8607 attract a
GST rate of 18% vide S. No. 398G of Schedule III of
notification No. 01/2017-CT (Rate) dated 28.06.2017,
which reads as:
“Parts of railway or tramway locomotives or rolling
stock; such as Bogies, bissel-bogies, axles and
wheels, and parts thereof”
• An excerpt from Note 2 of Chapter 86 is reproduced
below:
The expressions “parts” and “parts and
accessories” do not apply to the following articles,
whether or not they are identifiable as for the goods
of this Section:
……
(e) machines and apparatus of headings 8401 to
8479, or parts thereof, other than the radiators for
the articles of this Section, articles of heading 8481
or 8482 or, provided they constitute integral parts of
engines and motors, articles of heading 8483;
• It is clear that machines and apparatus of heading 8415,
which include Air conditioning machines are excluded
from the ambit of parts under chapter 86 based on the
chapter note above.
• Further, an excerpt from Note 3 of Chapter 86 reads as
below:
References in Chapters 86 to 88 to “parts” or
“accessories” do not apply to parts or accessories
which are not suitable for use solely or principally
with the articles of those Chapters. A part or
Page 234 of 463
S.
No.
Description
of Goods
/HSN
Present
Rate
Requested Rate Comments
accessory which answers to a description in two or
more of the headings of those Chapters is to be
classified under that heading which corresponds to
the principal use of that part of accessory.
• However, from a conjoint reading of Note 2 and Note 3,
it is clear that goods of heading 8401 to 8479 (including
8415 – Air Conditioning Machines) are excluded from
the ambit of ‘parts’ covered under Chapter 86.
• In addition, reference has also been made to the
Supreme Court judgement in the Westinghouse Saxby
case, where the Supreme Court has stated that ‘relays’
used in railway signalling equipment to be classified
under 8608, the description of heading 8608 reads as
follows:
Railway or tramway track fixtures and Fittings;
mechanical (including electromechanical)
signalling, safety or traffic Control equipment for
railway, tramways, Roads, inland waterways,
parking facilities, Port installation or air-fields;
parts of the foregoing
• It is key to note that CBIC, after obtaining the opinion
of the learned Additional Solicitor General, vide
Instruction No. 01/2022-Customs dated 05.01.2022, has
directed the field formations to conduct assessment
based on HS explanatory note, the relevant section and
chapter notes.
• Further, vide Instruction No. 25/2022-Customs dated
03.10.2022, CBIC has reiterated Instruction No.
01/2022-Customs and stated the decision of Supreme
Court in Westinghouse Saxby case would apply onto
the goods in the facts and circumstances of the case.
• In view of the above, Roof Mounted Package Unit
(RMPU) Air Conditioning Machines for Railways
would be classified under 8415 attracting a GST rate of
28%, and a clarification in this regard may be issued.
• Fitment Committee after considering Note 2(e) to
Section XVII of Customs Tariff Act, 1975 and General
Explanatory Notes pertaining to HSN 8607 observed
that there is no ambiguity in the classification.
However, in order to make it explicitly clear
recommended to issue a clarification that Roof
Mounted Package Unit (RMPU) Air Conditioning
Machines for Railways would be classified under HSN
8415 attracting a GST rate of 28 %.
Page 235 of 463
S.
No.
Description
of Goods
/HSN
Present
Rate
Requested Rate Comments
2. Car seat
assembly
[CTH 9401]
18% Clarification is
sought on the
HSN code of
Car seat
assembly as to
whether car
seats are
classifiable
under CTH 9401
or 8708. The
issue has arisen
since some
taxpayers are
classifying under
CTH 9401,
which attracts
18% GST and
some are
classifying under
CTH 8708,
which attracts
GST at 28%.

• CTH 9401 covers ‘Seats, whether or not convertible
into beds, and parts thereof’ (94012000 specifically
covers seats of a kind used for motor vehicle). The
explanatory note to this heading has also mentioned that
seats for vehicles are covered under the ambit of CTH
9401

• Further, the HSN-2022 Explanatory notes to Chapter 94
has a list of exclusions that are not to be classified under
the said Chapter. This list of exclusions does not
mention seats meant for vehicles. Thus, it is seen that
car seat assemblies would fall under CTH 9401.

• CTH 8708 covers ‘Parts and accessories of motor
vehicles of headings 8701 to 8705’. Explanatory notes
related to CTH 8708 have listed the parts and
accessories that are to be covered under the said chapter.
This list does not have mention of car seats.

• In view of the above, car seat assemblies fall under CTH
9401 and consequently attract GST @ 18%.

• With regards to seats for two wheelers. It is pertinent to
note that the explanatory note to chapter 9401 has
specifically excluded items under CTH 8714. And the
explanatory note for chapter 8714 has a list of
inclusions, which has mention of Saddles (seats). Thus,
for two wheelers, the seats would be classifiable under
CTH 8714 attracting GST rate of 28%.

• To summarize, the seat assembly for 4 wheelers would
fall under CTH 9401 and seats for 2-wheelers would fall
under CTH 8714.

• Fitment Committee observed that there is no ambiguity
in the GST rate on car seats which are classifiable under
9401 attracting 18% and recommended to clarify the
same. It is also recommended to prospectively prescribe
a uniform rate of 28% for car seats of motor cars as it is
leviable for seats of motorcycles by amending the
notification for the sake of parity.
3. Extruded
snack pellets
(HS 1905)

18% 12% and
clarification that
extruded snack
pellets in ready-
to-eat form will
attract 12% GST
under HSN
210690 of entry
• On the basis of the recommendation of the GST
Council in its 48th meeting vide Circular No.
189/01/2023-GST, dated 13.01.2023, it has been
clarified that the snack pellets (such as ‘fryums’), which
are manufactured through the process of extrusion, are
appropriately classifiable under tariff item 19059030
and thereby attract GST at the rate of 18% vide S. No.
16 of Schedule-III of notification No. 1/2017-Central
Page 236 of 463
S.
No.
Description
of Goods
/HSN
Present
Rate
Requested Rate Comments
46 of Schedule
II of Notification
1/2017-Central
Tax(Rate)
Tax (Rate), dated the 28th June, 2017.
• Thereafter, on the basis of the recommendation of the
GST Council in the 50th meeting held w.e.f. 27th July,
2023, 5% rate has been prescribed on supply of un-fried
or un-cooked snack pellets, by whatever name called,
manufactured through process of extrusion, falling
under CTH 1905, vide S. No. 99B of Schedule-I of
notification No. 1/2017-Central Tax (Rate), dated the
28th June, 2017.
• In addition, vide Circular No. 200/12/2023-GST, dated
01.08.2023, the issue for past period up to 27th July,
2023, has been regularized on “as is” basis in view of
the prevailing genuine doubts in case of un-fried or
uncooked snack pellets.
• Namkeens, bhujia, mixture, chabena and similar edible
preparations in ready-for-consumption form are
classifiable under HS 2106 90, and attract GST at the
rate of 12% (when sold as pre-packaged and labelled)
vide S. No. 46 of Schedule-II of notification No.
1/2017-Central Tax (Rate), dated the 28th June, 2017,
and 5% (when sold as other than pre-packaged and
labelled) vide S. No. 101A of Schedule-I of notification
No. 1/2017-Central Tax (Rate), dated the 28th June,
2017.
• The general rate on “Extruded or expanded products,
savoury or salted” under tariff item 1905 90 30 is 18%
vide S. No. 16 of Schedule-III of notification No.
1/2017-Central Tax (Rate), dated the 28th June, 2017,
except un-fried or un-cooked snack pellets, by whatever
name called, manufactured through process of
extrusion, falling under CTH 1905 which attracts 5%.
• The issue is whether supply of extruded snack pellets in
ready- to-eat form, is covered under the entry covering
namkeens.
• There are reportedly disputes on the issue in light of the
fact that there is no definition of namkeens and the
dispute is arising due to differential rate of 12% and
18%.
• To obviate disputes, Fitment Committee recommended
to keep the GST rate of extruded or expanded products,
savoury or salted (other than un-fried or un-cooked
snack pellets, by whatever name called, manufactured
through process of extrusion), falling under HS 1905 90
30 to 12% at par with namkeens, bhujia, mixture,
chabena (pre-packaged and labelled) and similar edible
preparations in ready for consumption form, classifiable
under HS 2106 90.
• It also recommended to clarify that for the past period
18% rate is applicable, as was clarified by the GST
Council in the 48th meeting, and that the 12% rate is
Page 237 of 463
S.
No.
Description
of Goods
/HSN
Present
Rate
Requested Rate Comments
applicable only prospectively.
4. Metal Scrap 18% (i) 5% (with
ITC), or 2%
(without ITC);
or
5% or 18%
(under RCM)

(ii)Exempt
when sold by
dealers and
RCM in last leg
when sold to
manufacturer,

or

5%, or 1%
without ITC,
for traders only

(iii)Wholesaler
to manufacturer
option of 18 %
FCM or 5%
RCM
• Currently, GST rate on scrap is 18% on forward
charge basis as per provisions of section 9 (1) of
CGST Act, 2017.
• Requests to reduce GST rate from 18 % has not been
accepted by GST Council in its 47th meeting. During
the Meeting, Hon'ble Member from Karnataka
suggested to do a detailed study on scrap. The
representative from Punjab requested to defer the
issue and to take it up only after due consultation.
Accordingly, the Fitment Committee was asked to
looked into the issue of RCM and it was also
recommended that State of Punjab could be invited
for deliberations.

• State of Karnataka and Punjab consulted industries.
After industry consultation and study, State of
Karnataka observed, inter alia that the proposal of
levy of GST on reverse charge mechanism may not
be feasible as the same breaks the chain of input tax
credit and also leads to cascading of taxes and also
breakage of audit trail. However, to prevent the
evasion of tax and to create a conducive business
atmosphere, some procedural measures were
recommended by State of Karnataka.

• Punjab has suggested to tax iron and scrap on RCM
and exempt supply of scrap in the hands of traders.
I t w a s o p i n e d b y P u n j a b t h a t under RCM,
the manufacturer will have the liability to pay tax
and this is administratively efficient to boost tax
collection. Further, e -way bill should be
mandatory for all transactions in scrap irrespective
of value.

• After detailed deliberations, Fitment Committee
recommended to:
 introduce TDS @ 2% on supply of metal scrap
by registered person to registered person. (B to
B)
 introduce RCM on supply of metal scrap by
unregistered person to registered person
provided that:
o the supplier shall take registration as and
Page 238 of 463

S.
No.
Description
of Goods
/HSN
Present
Rate
Requested Rate Comments
when it crosses threshold limit and
accordingly, exclusion to be created in
Notification 5/2017-Central tax dated
19.06.2017, and
o recipient who is liable to pay under RCM
shall pay tax even if supplier is under
threshold limit.

5 Cancer drugs
namely-
Trastuzumab
Deruxtecan;
Osimertinib;
Durvalumab
12% 5% • Specified drugs attract reduced GST rate of 5% vide Sl
no. 180 of Schedule–I of notification No. 1/2017-
Central Tax (Rate).
• Ministry of Health and Family Welfare (MoHFW) had
recommended reduction of BCD and GST on the said
medicines.
• In Union Budget 2024-25, considering the high cost of
these medicines, the customs duty was fully exempted
on these drugs.
• Considering the high cost of treatment in cancer, the
Fitment Committee, recommended to reduce the GST
rate from 12% to 5% on all the three cancer drugs.
Page 239 of 463
(b). Issues where no change has been proposed by the Fitment Committee in relation to goods
Annexure II
S.
No.
Description of
Goods /HSN
Present
Rate
Requested
Rate
Comments
1. Paper Sack

18% Clarification
on the rate
for the
period
1.07.2017 to
30.09.2021
• Paper sacks are specifically classifiable under HSN
4819 30 /4819 40.
• Prior to 1st October, 2021 there were two specific
entries in GST Tariff for CTH 4819:
(i) Sr. No. 122 of Schedule - II of notification No.
1/2017-Central Tax (Rate) provides for 12% GST
rate for CTH 4819. However, this entry is restricted
to "Cartons, boxes and cases of corrugated paper
or paper board".
(ii)Sr. No. 153A of Schedule - III of notification No.
1/2017-Central Tax (Rate) provides for 18% GST
rate for HS Code 4819 20, which covers "Cartons,
boxes and cases of non-corrugated paper or paper
board".
• As paper sacks are not covered under any specific entry
in GST , these are covered under residual entry i.e., Sr.
No. 453 of Schedule - III of notification No. 1/2017-
Central Tax (Rate) and accordingly attract 18% GST.
• The matter was taken to GST Council in 45th meeting
and it was recommended to provide uniform rate of 18%
GST on all carton boxes made up of corrugated or non-
corrugated boxes under heading 4819 in order to resolve
the ambiguity. Paper sack already attracted 18%. Thus,
after implementing this recommendation all goods under
4819 attracted 18%. Thereafter the GST rate on carton
boxes and cases of corrugated or non-corrugated
paper/paperboard (falling under 4819 10 and 4819 20 )
was reduced to 12% as recommended by GST Council
in its 53rd meeting .
• Paper sack ( 4819 30 00 and 4819 40 00) always
attracted GST rate of 18%.
• Fitment Committee recommended to maintain status quo
as there was no ambiguity with respect to paper sack
which always attracts 18%.
2. Agro shade
nets
(6005 90 00)
5% 12% • Agro shade nets are shade nets that help in controlling
the temperature to help the off-season ripening of fruits
and vegetables. It also acts as a windshield to prevent
damage to young plants.
• The BIS recognizes agro shade nets as technical textiles
(agro textiles).
Page 240 of 463
S.
No.
Description of
Goods /HSN
Present
Rate
Requested
Rate
Comments
• The main raw material of Agro shade nets is HDPE
(high density polyethylene) granules which attract 18%
GST leading to inverted duty structure. Currently
manmade filaments attract 18% GST, manmade yarn
attracts 12% GST and manmade fabrics attract 5% GST.
• In the 45th GST Council meeting, the matter of inverted
rate structure on textiles was taken up wherein the
Council recommended correction of the inverted duty
structure. In the 46th GST Council meeting, the matter
was deferred and it was recommended that GoM on
Rate Rationalisation take up the matter.
• In view of the above, Fitment Committee recommended
to maintain status quo.
3. Compressed
Bio Gas (CBG)
5% Clarification
sought on
the
applicable
rate of GST
• The issue of GST rate on compressed biogas had been
deferred in the 37th GST Council meeting held on 20th
September 2019 for further examination.
• Biogas attracts GST @ 5% under Sl. No. 157 of
Schedule I to notification no. 01/2017-Central Tax
(Rate)
• Bio-gas is compressed for its injection into the pipeline
network. Though there is no separate entry for CBG and
the GST rate on Compressed Biogas is 5% at par with
bio gas.
• Fitment Committee deliberated this issue and
recommended that no clarification is required to be
issued as it appears that this is a non-issue now.
4. Feedstock like
reformate,
DHDT feed,
SRGO, VGO
18% Nil/5% • The main refinery products namely, petrol, diesel and
ATF are outside purview of GST, while GST is levied
on other refinery products including intermediate
streams.
• The matter was discussed in 47th GST Council meeting,
where it was felt that the revenue implication as far as
OMCs are concerned is not significant. Distortion, if
any, will be resolved when petroleum products would be
brought under GST.
• Fitment Committee recommended to maintain status
quo.
5. Cathode
Coating [8507
90 90] and
Separators
[8507 90 10] of
Li-Ion battery
28 18 • Goods falling under heading 8507 attract GST rate of
28% vide S. No. 139 of Schedule IV of notification No.
01/2017-CT (Rate) dated 28.06.2017.
• Description of goods under Sl.No. 139 is as follows:

“Electric accumulators, including separators therefor,
whether or not rectangular (including square) other
Page 241 of 463
S.
No.
Description of
Goods /HSN
Present
Rate
Requested
Rate
Comments
than Lithium-ion battery and other Lithium-ion
accumulators including Lithium-ion power banks”.
• On inception of GST all goods falling under heading
8507, including Lithium-ion batteries were prescribed a
GST rate of 28%.
• However, as per recommendation of the 28th GST
Council, since July, 2018 Lithium-ion batteries [8507 60
00] have been prescribed a GST rate of 18% vide S.
No.376A of Schedule III of notification No. 01/2017-CT
(Rate) dated 28.06.2017.
• Further, as per recommendation of the 31st GST
Council, since December, 2018, Lithium-ion
accumulators including Lithium-ion power banks
[8507] have also been prescribed a GST rate of 18%
vide S. No. 376AA of notification No. 01/2017-CT
(Rate) dated 28.06.2017.
• MeitY has forwarded a representation from a domestic
manufacturer of Li-ion batteries requesting for a
reduction in GST on key parts of Li-ion batteries from
28% to 18% stating that the 28% GST rate on these
goods cause inversion.

• The parts are Cathode Coating [8507 90 90] and
Separators [8507 90 10] of Li-Ion battery, which as per
MeitY contribute to 71.41% and 6.15% of BoM (bill of
materials) of Li-Ion batteries.

• Cathode of Lithium-ion battery is generally lithium
cobalt oxide (LiCoO2), lithium manganese oxide
(LiMn2O4), lithium iron phosphate (LiFePO4 or LFP),
and lithium nickel manganese cobalt oxide
(LiNiMnCoO2 or NMC).

• Separators are generally polymers which are porous
membranes that separate anode and cathode of battery.
Li-ion batteries use Polyolefin as separator, while lead-
acid batteries use polyethylene as separator.

• These goods fall under the heading 8507, and therefore
automatically attract a GST rate of 28% vide S. No. 139
Page 242 of 463
S.
No.
Description of
Goods /HSN
Present
Rate
Requested
Rate
Comments
of Schedule IV of notification No. 01/2017-CT (Rate)
dated 28.06.2017.

• As per MeitY, the other parts like electrolyte, tape,
anode coating, glue, packing foil, aluminium tab lead
and nickel tab lead, that form about 22.44% of the BoM
of Li-ion battery, attract GST rate at 18%.

• MeitY has requested for reduction in GST rate on these
goods to 18% stating that the 28% GST rate is creating
an inverted duty structure.

• Cathodes and Separators are present in all batteries
including lead-acid, nickel-cadmium, nickel-metal
hydride etc.

• Providing a concessional GST rate of 18% to only these
goods while all other goods attract 28% amounts to
providing an end-use based concession, which create
distortions and are prone to misclassifications leading to
disputes.

• Fitment Committee recommended to maintain status
quo.
6. The following
items for use in
manufacture of
EV:
(i)Li-ion cell
[8507 60 00]
for use in Li-
ion battery
pack of EV
(ii)Battery pack
for EV [8507
60 00]
(iii)Electric
Motor of E-
drive Assembly
[8501 10 19,
8501 32 10,
S. No.s
(i to xi):
18%
S. No xii:
28%
5% • EVs have been kept at a concessional rate of 5% in
order to promote its faster adoption. The refund on
account of inverted duty structure is available to the
OEMs.
• If parts are reduced to 5%, then it will introduce
inversion in the supply chain of such EV parts.
• Reduced import IGST, may also lead to spurt in imports
from other countries, which already have a huge
manufacturing capacity for such goods.
• Regarding capital goods, the concession is being sought
for the end use of manufacturing EVs. Such end use-
based concessions are difficult to monitor and enforce.
Further, the benefits of depreciation under the Income
Tax Act are already available for capital goods.
• The issue of GST rate reduction on parts used
exclusively for EVs has already been deliberated by the
GST Council in the 47th Meeting held on 28.06.2022.
No rate change has been recommended.
• Fitment Committee recommended to maintain status
Page 243 of 463
S.
No.
Description of
Goods /HSN
Present
Rate
Requested
Rate
Comments
8501 33 10]
(iv)High-
voltage wiring
harness [8544
30 00]
(v)Traction
motor [8501 53
30]
(vi)Battery
Management
System [8507
90 90]
(vii)Motor
Control Unit
[9032 89 90]
(viii)DC to DC
Converter
[8504 40 90]
(ix)Power
Distribution
Unit [8503 71
00]
(x)Chiller Unit
[8415 90 00]
(xi)eVCU
Vehicle
Control Unit
[9032 89 90]
(xii)Reduction
Gear Box
[8708 40 00]
quo.
7. Braided elastic
tapes
(HS 5604)
12% 5% • Braided Elastic is made with strands of latex rubber and
textile fibres. It falls under HS 5604 under the entry
“rubber thread and cord, textile covered; textile yarn,
and strip and the like of heading 5404 or 5405,
impregnated coated, covered or sheathed with rubber or
plastics.”
• As per HS Explanatory Notes, HS 5604 can also cover
Page 244 of 463
S.
No.
Description of
Goods /HSN
Present
Rate
Requested
Rate
Comments
yarn that has been surface-treated to improve its
adhesion to the rubber in which it is subsequently
incorporated during the manufacture of articles such as
tyres, machinery belts or belting, and tubes. This HS
can also cover imitation catguts consisting of textile
yarn with a heavy dressing of plastics which are used in
the manufacture of sports rackets, fishing lines, belts etc.
• Braided elastic attracts GST @12%. The average pre-
GST rate was around 13%.
• The request is to tax braided elastic at 5% at par with
woven elastic and knitted elastic.
• Fitment Committee recommended to maintain status quo
to avoid any further inversion in tax structure.

Page 245 of 463
(c). Recommendations made by the Fitment Committee for making changes in GST rates or
for issuing clarifications in relation to services.
Annexure IV
Sl.
No.
Proposal Details of request Discussions in Fitment Committee and its
recommendations
1. To clarify that GST
at the rate of 5%
will be applicable
on the helicopter
services for
pilgrims.

• Helicopter operators
offering helicopter
services at Kedarnath
temple have been charging
GST @ 5% since 2017 to
Pilgrims considering these
services as similar to
economy class offered by
scheduled airlines.
• In 2023, GST department
served notices to all
operators demanding GST
@18% on helicopter
services.
• Helicopter services at
Vaishno Devi and
Amartnath Yatra are also
charging GST @ 5%.
• GST Council has made
exception for Haj Yatra
and 5% GST is levied on
special flights for Haj
pilgrims.
• Ministry of Civil Aviation
in addition to above has
recommended to levy
uniform rate of 5% GST
on purchases, sale of seat
tickets and all services
• Currently there are three GST rates on
passenger transport services by air as below:
o Economy class attracts 5% GST;
o Other than economy class attracts 12%
GST and
o Other class than above two classes
attract 18% GST (Residual entry)
• W.e.f 01.01.2019, vide entry at Sl. No. 8(iva)
of notification No. 11/2017-CTR , GST @ 5%
on passenger transport service by non-
scheduled air transport service or charter
service engaged by specified organizations in
respect of religious pilgrimage facilitated by the
Government of India, under bilateral
agreements was made applicable.
• In helicopters usually there is no distinction
between economy and non-economy seats. In
most of the cases, helicopters do not provide
even basic facilities like those provided in
economy class. Further, there is no additional
facility provided in helicopters on additional
fare.
• The services by way of transport of passengers
on seat share basis and that by way of
chartering the entire helicopter to a person
cannot be equated. The latter is usually
consumed by the affluent and not by the
common man.
• After deliberations, Fitment Committee
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rendered by helicopters
including rentals paid for
hangarage.
recommended to clarify by way of circular
as below:
o GST @ 5% will be applicable on the
transport of passengers by
helicopters on seat share basis.
o Charter of helicopter will continue to
attract 18% GST.
2. To clarify whether
incidental/ ancillary
services such as
loading/ unloading,
packing,
unpacking,
transshipment,
temporary
warehousing etc.,
provided in relation
to transportation of
goods by road is to
be treated as part of
GTA service, being
composite supply,
or these services
are to be treated as
separate
independent
supplies.

• The above issue dates back
to 2008 when TRU vide
letter dated 29.02.2008
clarified that packing with
transportation will be
classifiable under cargo
handling service only and
not as a GTA.
• Revenue Authorities
initiated proceedings
against GTAs demanding
service tax on standard
rate applicable on cargo
handling services instead
of concessional rate
applicable on GTA
service.
• In a joint statement dated
04.07.2008 issued by
Government and the
transport association, it
was clarified that any
service provided by GTA
in relation to
transportation of goods are
to be treated as GTA
service.
• GTA has been defined to mean “any person
who provides service in relation to transport of
goods by road and issues consignment note, by
whatever name called”.
• Q. No. 6 of the FAQ issued by CBIC, in
question, states that “the GTA provides service
to a person in relation to transportation of
goods by road in a goods carriage, which is a
composite service. The composite service may
include various intermediary and ancillary
services, such as, loading/unloading,
packing/unpacking, transshipment and
temporary warehousing, which are provided in
the course of transport of goods by road. These
services are not provided as independent
services but as ancillary to the principal
service, namely, transportation of goods by
road. The invoice issued by the GTA for
providing the said service includes the value of
intermediary and ancillary services.
In view of this, if any intermediary and
ancillary service is provided in relation to
transportation of goods by road, and charges, if
any, for such services are included in the
invoice issued by the GTA, such service would
form part of the GTA service and would not be
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Proposal Details of request Discussions in Fitment Committee and its
recommendations
• Circular No. 104/7/2008-
ST dated 06.08.2008 was
also issued clarifying that
when GTA provides a
service in relation to
transportation of goods by
road and also issues
consignment note, it is a
composite supply. The
composite service may
include various
intermediate and ancillary
services provided in
relation to the principal
service of the road
transport of goods and
these services are not
provided as independent
activities but are the means
for successful provision of
the principal service,
namely, the transportation
of goods by road.
• It was further clarified that
this composite service,
even if it consists of more
than one service, should be
treated as a single service
based on the main or
principal service and
accordingly classified.
• W.e.f from 1st July, 2012
service tax shifted to
negative list regime and
treated as a separate supply. In fact, any
service provided along with the GTA service
that is part of the composite service of GTA
shall be taxed along with GTA service and not
as separate supplies.
If such incidental services are provided as
separate services and charged separately,
whether in the same invoice or separate
invoices, they shall be treated as separate
supplies”.
• The last para of the FAQ is being interpreted by
enforcement agencies to mean that if a GTA
shows packing charges, loading, unloading
charges etc., separately in the invoice, the GTA
becomes liable to pay GST at the rate of 18%
on these services by treating them as cargo
handling services.
• The essential characteristic feature of the
service/transaction needs to be considered,
while determining the nature of service.
• If ancillary/intermediate service is provided by
GST in relation to transport of goods, the
method of invoicing will not alter the
composite nature of the service and
classification in such cases are based on
essential characteristic of the supply.
• Thus, if any ancillary/intermediate service is
provided in relation to transportation of goods,
and the charges, if any, for such services are
included in the invoice issued by the GTA,
either shown separately or combined and they
are not supplied by any other person, such
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revenue authorities started
classifying transportation
services by GTAs along
with incidental services as
“Cargo Handling
Services”.
• Circular No. 186/5/2015-
ST dated 05.10.2015 was
issued reiterating the
position taken by
Department in the 2008
circular. It was inter-alia
clarified that service
provided by a Goods
Transport Agency (GTA)
is a composite service
which may include various
ancillary services such as
loading/ unloading,
packing/unpacking,
transshipment, temporary
storage etc., which are
provided in the course of
transportation of goods by
road.
• The issue of classification
of shifting/transportation
of household articles
between GTA and Cargo
Handling Service in
service tax period have
been settled by various
judgement of tribunal and
also upheld by the Apex
service would form part of GTA service as
composite supplies.
• After deliberations, Fitment Committee
recommended to clarify the issue by way of a
circular as below:
o When ancillary/intermediate
services are provided by GTA in the
course of transportation of goods by
road and also issues consignment
note, the service will constitute a
composite supply and all such
ancillary/intermediate services like
loading/unloading,
packing/unpacking, transshipment,
temporary warehousing etc. will be
treated as part of the composite
supply.
o The method of invoicing used by
GTAs will not generally alter the
nature of the composite supply of
service. However, if such services
are not provided in the course of
transportation of goods and invoiced
separately, then these services will
not be treated as composite supply
of transport of goods.
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recommendations
Court.
• With introduction of GST
w.e.f 1st July, 2017, GTAs
are again facing action
from revenue authorities
who allege that GST @
18% is applicable on
incidental, ancillary and
intermediary services in
cases where GTA has
shown cost of such
services separately on its
invoices irrespective of the
fact that consignment note
issued by GTA mentions
gross freight amount
(inclusive of cost of
ancillary charges) as the
charges for GTA service.
• The basis for the above
interpretation of revenue
authorities is Q No. 6 of
FAQ on Transport and
Logistics published by
CBIC wherein inter-alia, it
has been stated that “...if
such incidental services
are provided as separate
services and charged
separately, whether in the
same invoice or separate
invoices, they shall be
treated as separate
supplies”.
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recommendations
3. To clarify if Ro-Ro
service (Truck on
Train) is used for
the transportation
of milk, no GST is
leviable on the
empty tankers
returning after
delivery of milk.


• Gujarat is supplying milk to
the entire country. For easy
transportation of this milk
supply, Gujarat Cooperative
Milk Marketing Federation
Ltd (GCMMF) and
Dedicated Freight Corridor
Corporation of India Limited
(DFCCIL) signed an MOU
for Truck on Train (Ro-Ro
Service) in May-2023.
• G.C.M.M.F. and other milk
unions associated with it get
the benefit of this facility,
which is available between
Palanpur and New-Rewari
stations. Milk is shipped by
Banaskantha Milk Producers
Association using Ro-Ro
service.
• Actually, as per MOU, this
agreement is for carrying
and bringing back milk
tankers. Consequently, it
may be treated as a
composite supply which is
exempt from tax as per GST
Notification No-12/2017-
Central Tax (Rate) dated 28-
06-2017. Also as per circular
no. 177/09/2022-TRU dated
03-8-2022, it is clarified that
in case of movement of
empty containers from
• As per Sl. No.20 of the notification
No.12/2017-Cental Tax (Rate) dated
28/06/2017 transport of milk by rail is exempt
from GST. Indian Railways is charging 5%
GST on empty milk tankers returning after
delivery of the milk.
• In the case of transportation of empty
containers returning from Nepal and Bhutan
after delivery of transit cargo to India, it was
clarified vide Circular No. 177/09/2022-TRU
dated 03.08.2022 that exemption under Sl. No.
9B of notification No. 12/2017-Central Tax
(Rate) covers services associated with transit
cargo both to and from Nepal and Bhutan.
• Sl. No. 9B exempts supply of services
associated with transit cargo to Nepal and
Bhutan (landlocked country).
• Services associated with transit cargo to Nepal
and Bhutan were exempted in accordance with
International treaties.
• With respect to transit or transshipment of
cargo to Nepal, specific regulations namely
Transshipment of Cargo to Nepal under
Electronic Cargo Tracking System Regulations,
2019 have been notified. As per these
regulations, the authorized carrier has to
execute a general bond for an amount as
directed by the proper officer.
• The authorized carrier also has to procure
Electronic Cargo Tracking System (ECTS)
from a bi-laterally appointed managed service
provider. In order to discharge the bond, the
proper officer of customs has to extract trip
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Nepal and Bhutan, it is a
service associated with the
transit cargo sent from India
and no tax will be levied on
it.
• As per GST law transport of
milk is exempt from tax. But
Railways levy 5% GST on
milk tankers retuning empty.
As a result, the cost of
transporting milk increases.
• Ministry of Railways has
informed DFCCIL that:
o The business
arrangement under
reference does not
qualify as composite
supply, hence the
benefit of exemption
of transportation of
milk cannot be
extended to
transportation of
empty trucks from
New Rewari station to
New Palanpur and
accordingly GST rate
of 5% shall be charged
on such transportation
of empty trucks.
• GCMMF has requested to
clarify that if Ro-Ro
service is used for the
transportation of milk,
reports from the ECTS web application as proof
of completion of transshipment.
• The reconciliation of transshipment of
consignments is carried out on the basis of trip
report, by the proper officer at the Ports, as the
case may be, and then only the general bond
submitted by the authorized carrier is re-
credited or discharged.
• The regulations governing transit/
transshipment have to be followed in addition
to the ensuring that an electronic track and trace
facility is in place. This facility uses container
numbers to locate the cargo. Thus, it is
verifiable that the empty container returning
from Nepal or Bhutan is the same container
which was used to deliver goods to Nepal or
Bhutan.
• This sort of verification is not possible in case
of empty tankers returning after delivering
milk. It may not be plausible to equate the two
situations.
• The said transport of empty tankers is taxable
under entry no. 9(i) of notification No.
11/2017-CTR dated 28.06.2017 and attracts 5%
GST.
• After deliberations, Fitment Committee
recommended as below:
o To clarify the issue by way of a letter
to the concerned authority that the
transport of empty tankers returning
after delivery of milk is taxable and
not exempted.
o No exemption on the said transport
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then no GST is leviable on
the empty tankers
returning after delivery of
milk, so that the cost of
milk transportation is
reduced.
of empty tankers returning after
delivery of milk was recommended.
4. To exempt electric
vehicle (EV)
charging services at
public charging
stations
OR
To clarify that the
activity of charging
EVs in a charging
station essentially
involves supply of
electricity and
therefore should be
chargeable at the
same rate
applicable to
supply of
electricity.


• The activity relating to
charging of batteries of an
EV at public charging
station has two aspects (i)
access to electricity and
(ii) ancillary service
charges for public
charging station.
• Supply of electrical
energy is exempt as per Sl.
No. 104 of notification
No. 2/2017-CTR dated
28.06.2017. Further,
services of transmission
and distribution of
electricity is also exempt
under Sl. No. 25 of
notification No. 12/2017-
CTR dated 28.06.2017.
• Therefore, supply of
electricity for charging EV
batteries should be exempt
from GST. However,
Karnataka Authority for
Advance Ruling (AAR)
has recently held that the
activity of charging
batteries at public
• The request to reduce the rate of GST on EV
charging and battery swapping service to 5%
from the current rate of 18% and to exclude the
cost of electricity from taxable value while
charging GST on EV charging service was
placed before the 47th GST Council held in June
2022. However, the Council did not accede to
the request.
• Ministry of Power vide Circular No.
23/08/2018-R&R dated 13.04.2018 has
clarified that the charging of battery essentially
involves utilization of electrical energy for its
conversion to chemical energy, which gets
stored in the battery. Thus, the charging of
battery of an electric vehicle by a charging
station involves a service requiring
consumption of electricity by the charging
station and earning revenue for this purpose
from the owner of the vehicle.
• It has further been clarified vide above said
circular that the activity does not in any way
include sale of electricity to any person as the
electricity is consumed within premises owned
by the charging station, which may be
connected to the distribution system or
otherwise for receiving electricity. The activity
does not involve further distribution or
transmission of electricity, the charging station
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charging stations is
essentially a supply of
service and the entire
consideration is liable to
GST as supply of service
at the rate of 18%.
• Karnataka AAR was
indifferent to the fact that
the intention of an EV
user visiting the service
station is to seek access to
electricity available for
charging EV battery.
• While the supply of
electricity is undisputedly
exempt from GST, if at
all, the ancillary services
could be subject to GST.
However, on account of
ruling by Karnataka AAR,
18% GST is being applied
to entire consideration
being charged for facilities
being provided at charging
stations.
does not perform any of the activities namely
transmission, distribution or trading of
electricity, which require license.
• After deliberations, Fitment Committee
recommended as below:
o To clarify that charging of electric
vehicle does not include sale of
electricity to any person nor does this
activity involve further distribution
or transmission of electricity.
o No exemption from GST on electric
vehicle charging at public charging
stations was recommended.

5. To issue
corrigendum to the
Circular No.
34/8/2018- GST
dated 01.03.2018 in
respect of taxation
of ancillary
services of
transmission and
In the 37th GST Council
agenda, two view points which
were discussed have been
mentioned as below:
Viewpoint 1:
• Rental of electric meters
does not involve any
• Agenda was deferred in the 37th GST Council
meeting held in September 2019.
• Vide Sl. No. 25 of notification No. 12/2017-
CTR dated 28.06.2017, transmission or
distribution of electricity by an electricity
transmission or distribution utility attracts nil
GST rate.
• Vide Sl. No. 4 of Circular No. 34/8/2018-GST
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distribution of
electricity such as:
(i) application fees
for providing
electricity
connection,
(ii) rental charges
against electricity
meter,
(iii) testing fees for
meters/transformers
/capacitors,
(iv) labour charges
from customers for
shifting of
meters/service lines
&
(v) charges for
duplicate bills
may be considered.

transfer of property in
goods but only a right to
use given to the customer
by the distribution
company. Thus, such rental
is also a service as per Sl.
No. 5(f) of Schedule II of
the CGST/SGST Acts,
2017.
• Notification No. 32/2010 -
ST dated 22.06.2010
exempted “the taxable
service provided to any
person, by a distribution
licencee, a distribution
franchisee, or any other
person by whatever name
called, authorized to
distribute power under the
Electricity Act 2003(36 of
2003), for distribution of
electricity, from the whole
of service tax leviable
thereon under section 66 of
the said Finance Act.”
• Notification No. 11/2010-
ST dated 27.02.2010
exempted “the taxable
service provided to any
person, by any other person
for transmission of
electricity, from the whole
of service tax leviable
thereon under section 66 of
dated 1st March 2018, it has been clarified that
following services are taxable under GST w.e.f.
01.07.2017:
“The other services such as, - (i)
Application fee for releasing connection of
electricity; (ii) Rental Charges against
metering equipment; (iii) Testing fee for
meters/ transformers, capacitors etc.; (iv)
Labour charges from customers for shifting
of meters or shifting of service lines; (v)
charges for duplicate bill; provided by
DISCOMS to consumer are taxable.”
• The above said Sl. No 4 of Circular No.
34/8/2018-GST dated 1st March 2018 has been
struck down by the Hon’ble High Court of
Gujarat in Torrent Power Ltd Vs UOI (5343 of
2018) case.
• The department has gone in appeal against the
said order and the matter is pending before
Hon’ble Supreme Court (SLP(C) No.
019431/2019).
• In Service Tax regime, prior to introduction of
negative list regime for service tax, no service
tax was collected and paid in respect of
transmission and distribution of electricity.
• Notification No. 11/2010 – Service Tax dated
27.02.2010 exempted service tax on service
provided to any person, by any other person for
transmission of electricity.
• Notification No. 32/2010 – Service Tax dated
22.06.2010 exempted service tax on service
provided to any person by a distribution
licensee, a distribution franchisee, or any other
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the said Finance Act.”
• It may also be stated in this
context that a similar view
was taken by the same
TRU in a Service Tax
Circular No. 131/13/2010-
ST dt.07.12.2010.
Viewpoint: 2
• These services are all
intrinsic parts & parcel of
the electricity distribution
service itself and cannot be
treated in isolation of such
distribution service.
• So, as per the definitions
above, such services as
stated in Paras 1 & 2
above, form a part of a
composite supply as per S.
2(30) where the
predominant supply is
electricity distribution
service.
• Electricity distribution
service being exempted
from GST, as discussed in
Para 10, the tax on such
composite supply will also
thus be exempted, based on
the principle of GST levy
on composite supplies
based on principal supply.
person by whatever name called, authorised to
distribute power under the Electricity Act,
2003 for distribution of electricity.
• Vide circular No. 131/13/2010- ST dated
07.12.2010 it was clarified that service of
installing electric meter on hire to the
consumers of electricity by an electricity
transmission (TRANSCO) / distribution
companies (DISCOM) has direct and close
nexus with transmission and distribution of
electricity and the same is covered by the
exemption for transmission and distribution of
electricity extended under the Notification No.
11/2010 – Service Tax dated 27.02.2010 and
notification No. 32/2010 – Service Tax dated
22.06.2010.
• In the negative list regime vide section 66D(k)
of Finance Act, 1994 transmission or
distribution of electricity by an electricity
transmission or distribution utility were placed
under negative list and hence were not taxable
in the service tax regime.
• Further, the notification No. 11/2010-Service
Tax dated 27.02.2010 and notification No.
32/2010 Service Tax dated 22.06.2010 were
rescinded.
• However, the circular No. 131/13/2010-ST
dated 07.12.2010, which was issued in respect
of these two notifications was not withdrawn.
• Hon’ble High Court of Gujarat in the Torrent
Power case held that in the positive list regime,
Circular No. 131/13/2010-ST dated 07.12.2010
exempted activities such as hiring of meters
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• The same principles have
been upheld by the
Hon’ble High Court of
Gujarat in the order dated
19.12.2018 in the case of
Torrent Power Ltd. versus
Union of India [Special
Civil Application No. 5343
of 2018].
having a direct and close nexus with the
transmission and distribution of electricity.
• Further, in the negative list regime, the Court
held that the services in question would fall
within the ambit of bundled services and would
be treated in the same manner as the service
which gives the bundle its essential character,
namely, transmission and distribution of
electricity and, would therefore, be exempt
from payment of service tax. The Court held
that the tax liability thereof has to be
determined by treating such composite same as
a supply of the principal supply of transmission
and distribution of electricity and thereby
struck down para 4(1) of Circular No.
34/8/2018 GST dated 01.03.2018.
• Supply of services such as application fee for
releasing connection of electricity, rental
charges against metering equipment, testing fee
for meters/ transformers, capacitors etc., labour
charges from customers for shifting of meters
or shifting of service lines, charges for
duplicate bill etc. are incidental, ancillary or
integral to the supply of transmission and
distribution of electricity by transmission and
distribution utilities.
• All above such services, when provided by
DISCOM or transmission and distribution
utility to customers along with transmission or
distribution of electricity, are naturally bundled
and supplied in conjunction with principal
supply of service, i.e., transmission and
distribution of electricity, and will thus
constitute composite supply in such cases.
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• After deliberations, Fitment Committee
recommended as below:
o To partially modify the Circular No.
34/8/2018 GST dated 01.03.2018 to
the extent clarifying that supply of
services such as application fees for
providing electricity connection,
rental charges against electricity
meter, testing fees for meters/
transformers/capacitors, labour
charges from customers for shifting
of meters/service lines, charges for
duplicate bills etc. which are
incidental, ancillary or integral to the
supply of transmission and
distribution of electricity by
transmission and distribution
utilities to their consumers, when
provided as a composite supply are
exempt.
o The Fitment Committee further
recommended that the UOI’s SLP in
the Hon’ble Supreme Court may be
withdrawn simultaneously with the
issuance of the above clarification
after Council’s recommendation.
6. To clarify that no
GST is payable on
the affiliation fee
collected by
universities from
affiliated colleges.

• SCNs demanding GST on
affiliation fee which was
collected from the
affiliated colleges have
been issued to the
universities.
• If GST is levied on
affiliation fee, the
• As per para 2(y) of notification No. 12/2017-
CT(R) dated 28.06.2017, educational
institution means, inter-alia, an institution
providing services by way of education as a
part of a curriculum for obtaining a
qualification recognized by any law for the
time being in force.
• Thus, universities are ‘educational institutions’
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Universities shall have to
pass it on to the colleges
and the colleges in turn
will collect the fee from
students.



as per the said definition of an educational
institution.
• As per the definition of affiliation under UGC
(Affiliation of Colleges by Universities)
Regulations, 2009, affiliation in relation to a
college means recognition of such college by,
association of such college with, and
admission of such college to the privileges of
the university to which the college is affiliated.
• The activity of affiliation is to monitor whether
the institution possesses the required
infrastructure in terms of space, technical
prowess, financial liquidity, faculty strength,
etc. and is thereby eligible for the privileges to
conduct the course/programme of study for the
degree/title extended by the University to the
students enrolled in such institutions.
• As per the current scheme of exemptions
provided in the notification No. 12/2017- CTR,
the following categories of services are
exempt:
(i) Services provided by educational
institutions to its students, faculty and
staff (Entry 66(a) of the notification)
(ii) Services provided by an educational
institution by way of conduct of
entrance examination against
consideration in the form of entrance
fee (Entry 66(aa) of the notification)
(iii) Services provided to an educational
institution by way of, -
i. ……..
ii. ……..
iii. …..
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iv. services relating to admission
to, or conduct of examination
by, such institution (Entry
66(b) of the notification)
• The affiliation services provided by the
universities enable the colleges under it to
conduct the course/ programme and do not
relate to admission of students to such
course/programme in the said colleges or
conduct of examinations for admission in the
said colleges.
• Thus, the affiliation services provided by
universities to their constituent colleges are not
covered within the ambit of exemptions
provided for educational institutions in the
notification No. 12/2017-CT(R) dated
28.06.2017.
• A similar request regarding the GST
exemption on the amounts collected by
universities by way of the sale of application
forms, issue of migration
certificates, affiliation works and by way of
other educational activities was deliberated in
the 47th GST Council meeting held in June
2022.
• The Council recommended that in respect of
services supplied by universities/boards or
other educational organizations by way of
granting affiliations to educational institutions,
a clarification has already been issued vide
circular No. 151/07/2021-GST dated
17.06.2021(Para 4(iii)).
• The said para is reproduced for reference:
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“(iii) GST at the rate of 18% applies to other
services provided by such boards, namely of
providing accreditation to an institution or to
a professional (accreditation fee or
registration fee such as fee for FMGE
screening test) so as to authorise them to
provide their respective services.”
• After deliberations, Fitment Committee
recommended to clarify by way of circular
that the affiliation services provided by
universities to their constituent colleges are
not covered within the ambit of exemptions
provided to educational institutions in the
notification No. 12/2017-CT(R) dated
28.06.2017 and GST at the rate of 18% is
applicable on the affiliation services
provided by the universities.
7. To clarify that GST
is not applicable on
the affiliation fees
charged by CBSE.
If this relief, cannot
be given, it may be
clarified that GST
will only be
applicable
prospectively.


• CBSE is an autonomous
body under the Ministry of
Education formed with the
prime objective of
regulating and maintaining
the standard of Secondary
Education in India by way
of conducting examination
at Secondary Stage of
Education.
• The affiliation provided
by the CBSE to the
schools is purely in
relation to the
examinations conducted
by them and therefore, is
not a separate service of
• The activity of affiliation carried out by CBSE
is to ensure and monitor whether the schools
possess the required infrastructure in terms of
land, physical infrastructure, technical prowess,
financial liquidity, faculty strength, etc., and are
thereby eligible for the privileges to operate
under the aegis of CBSE.
• All schools which intend to be affiliated with
CBSE, including Government Schools like
Kendriya/ Sarvodaya Vidyalaya, are required to
pay the affiliation fee as specified in the
CBSE’s schedule.
• The affiliation norms laid down by CBSE, that
have to be fulfilled by the schools in order to
get affiliated, include an extremely diverse and
comprehensive set of parameters, including, but
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affiliation but a part of
unified service of conduct
of examinations.
• Hence the exemption
available to the services
provided to educational
institutions in relation to
the conduct of
examination is inclusive
of services by way of
granting of affiliation.
Therefore, affiliation fee is
covered under entry at Sl.
No. 66(b)(iv).
• Affiliation granted by
CBSE, is a sort of
certification that the
school is ensuring
minimum standard as per
expected norms set by
CBSE, is quality driven
and strives for excellence
in all aspects of its
activities, which enables
the school to become a
member and allows
students to appear in the
examination.
• Affiliation is granted to
the educational institutions
to enable their students to
appear for the
examinations conducted
by CBSE.
not restricted to, the establishment of the
school, its website, statutory compliances, land,
physical infrastructure, books, quality of
education etc. The schools are expected to meet
certain minimum standards with respect to these
parameters to become affiliated with CBSE.
• Therefore, it is evident that the affiliation
services provided by CBSE to various schools
are essentially in the nature of maintenance of
certain quality standards by the school which
enable it to operate under the aegis of CBSE
and enable its students to appear for senior and
senior-secondary examinations conducted by
CBSE.
• CBSE, along with other educational boards, has
been deemed to be an educational institution for
the limited purpose of providing services by
way of conduct of examinations to the students.
The service by way of granting affiliation to
schools is not a service by way of conduct of
examination.
• CBSE has also claimed eligibility for
exemption under Sl. Nos. 4 and 5 of
Notification No. 12/2017-Central Tax (Rate)
dated 28.06.2017.
• Sl. Nos. 4 and 5 of Notification No. 12/2017-
Central Tax (Rate) dated 28.06.2017 exempts
services by governmental authority by way of
any activity in relation to any function entrusted
to a municipality under article 243 W of the
Constitution or to a panchayat under article
243G of the Constitution.
• Governmental authority as defined in para 2(zf)
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• In view of the above facts
the accreditation provided
by Central and State
Boards like NBE cannot
be equated with the
affiliation provided by
CBSE to the schools for
education up to Senior
Secondary Level.
• CBSE has not charged any
GST from the schools.
Further CBSE is also not
maintaining any MIS in
this regard so as to
identify the fees that
would be taxable under
IGST or CGST/SGST and
input credit that will be
allowed.
• CBSE has also argued that
in performing the
affiliation service, it is
also discharging the
functions related to
education enumerated in
the 11th and 12th Schedules
of the Constitution of
India and therefore, meets
the criteria of a
‘Governmental Authority’
thereby making it eligible
for the exemptions under
Sl. Nos. 4 and 5 of
Notification No. 12/2017-
of Notification No. 12/2017-Central Tax (Rate)
dated 28.06.2017 means an authority or a board
or any other body,-
a) set up by an Act of Parliament or a
State Legislature; or
b) established by any Government,
with 90 per cent or more participation by way
of equity or control, to carry out any function
entrusted to a Municipality under article 243 W
of the Constitution or to a Panchayat under
article 243G of the Constitution.
• The functions entrusted to a Municipality under
article 243W are listed in the Twelfth Schedule
of the Constitution of India. The entry at Sl. No.
13 of the said schedule reads:
‘Promotion of cultural, educational and
aesthetic aspects’.
• The functions entrusted to a Panchayat under
article 243G are listed in the Eleventh Schedule
of the Constitution of India. The entry at Sl. No.
17 of the said schedule reads:
‘Education, including primary and
secondary schools’.
• The primary objective of CBSE, admittedly, is
to conduct examinations and to grant
diplomas/certificates to persons, who, after
pursuing course of study in an institution
affiliated to CBSE, have passed the
examination conducted by CBSE. However,
mere conduct of examination and grant of
diploma/certificates cannot amount to education
and per force, cannot tender on CBSE the status
of a body performing the function of
‘education’ or ‘promotion of educational
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CT(R) dated 28.06.2017.
• SCN dated 29.09.2023
demanding duty of Rs.
261.82 crores along with
with associated interest
and penalties has been
issued to CBSE.
aspects’.
• In the instant case, CBSE is clearly not
imparting any education, training or instruction
to any students. That is done by the affiliated
schools. Rather, it is conducting examinations
at the senior and senior secondary levels and
affiliating schools from which students can
appear in such examinations. Therefore, it
cannot be said to have been set up or
established to perform the function of
‘education’ or ‘promotion of educational
aspects’.
• Therefore, CBSE is not a ‘Governmental
Authority’ and is not eligible for the exemption
granted vide Sl. Nos. 4 and 5 of Notification
No. 12/2017-CT(Rate) dated 28.06.2017.
• The issue of granting exemption to the
affiliation service provided by CBSE was
placed before the 50th GST Council meeting
held on 11.07.2023 and the Council rejected the
same.
• After deliberations, Fitment Committee
recommended as below:
o To regularise the collection of GST
on affiliation fee charged by
State/Central educational boards to
schools on ‘as is where is’ basis for
the period from 01.07.2017 to
17.06.2021 i.e., the date of issuance of
Circular no. 151/07/2021 clarifying
that accreditation services of boards
are taxable at the rate of 18%.
o Exemption may be given to affiliation
services provided by State/Central
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educational boards to government
schools prospectively.
8. To clarify that
Flying Training
Organizations
(FTOs) approved
by DGCA are
educational
institutions under
GST and
consequently GST
is not applicable on
the courses
conducted by them.


• Flying Training
Institute/Organizations
approved by DGCA
conduct flying training to
pilots.
• DGCA fully controls such
training institutes by
prescribing syllabus,
number of seats per
session, conduct of
examination. It issues a
Course Completion
Certificate and On Job
Training certificate to
candidates. Course
completion certificate is
approved by DGCA.
• Thus, Flying Training
Institute/Organizations
should be considered as an
educational institution and
the educational courses
and certificates issued by
it for obtaining
commercial pilot license
should be considered as
education recognized
under law.
• Circular No. 117/36/2019-
GST dated 11.10.2019
clarified that Maritime
• Services supplied by educational institutions to
students are exempt from GST vide entry 66 of
the notification No. 12/2017-CT(Rate) dated
28th June, 2017. “Educational Institution”
means an institution providing services by way
of:
i. Pre-school education and education up to
higher secondary school or equivalent,
ii. Education as a part of a curriculum for
obtaining a qualification recognized by any
law for the time being in force,
iii. Education as a part of an approved
vocational education course.
• Based on the recommendation of GST Council
in the 37th Meeting held on 20th September,
2019, it has been clarified vide Circular No.
117/36/2019-GST dated 11.10.2019 that the
maritime training institutes are educational
institutions and the courses conducted by them
are exempt from levy of GST.
• Flying training institutes have also requested for
a similar clarification in respect of flying
training imparted by them.
• In its recommendations before the 48th Council
Meeting, the Fitment Committee had observed
that the education imparted by maritime
training institutes and flying training institutes
is vocational in nature. The vocational
education should therefore, meet the criteria of
‘approved vocational course’ prescribed in sub-
para (iii) of the definition of ‘Educational
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Institutes are educational
institutions under GST
Law and the courses
conducted by them are
exempt from levy of GST.
Institution’ mentioned above to be eligible for
exemption under Sl. No 66 of the Notification
No. 12/2017-CT(Rate), dated 28th June, 2017
and not clause (ii) of the said definition which
covers “Education as a part of a curriculum for
obtaining a qualification recognized by law”.
• In view of the above, question arose whether
courses conducted by maritime training
institutes and flying training institutes should
meet the criteria of ‘approved vocational
education course’ prescribed in sub-para(iii) of
the definition of ‘educational institution’ to be
eligible for exemption under Sl. No 66 of the
notification No. 12/2017-CT(Rate), dated 28th
June, 2017 and whether Circular No.
117/36/2019-GST dated 11.10.2019 needs to be
revisited. Accordingly, it was recommended
that the issue may be referred to GoM on rate
rationalisation for taking a comprehensive view
on definition of educational institutions.
• The issue has since been re-examined in light of
notification dated 5th December, 2018 issued
by the Ministry of Skill Development and
Education (No. SD-17/113/2017-E&PW) as
under:
1.(xxiv) “Vocational Education
and Training” means all skill
development programs, both long-
term and short-term, apprenticeship
training and recognition of prior
learning, certified by the Council
but not covered by the All India
Council for Technical Education
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Act, 1987 (52 of 1987), the
University Grants Commission Act,
1956 (3 of 1956), or by any other
law for time being in force.
• From the above definition, it appears that if a
particular skill development program is
covered by an existing law, the same cannot
amount to “vocational education and training”
as defined under the above Notification.
• Flying Training Organizations (FTOs) and the
training programs imparted by them are
covered under the Aircraft Act, 1934, the
Aircraft Rules, 1937 and the Civil Aviation
Requirements issued under the said Rules.
• From the examination of the legal provisions
applicable to the field of flying training, it is
seen that:
i. Section 5 of the Aircraft Act, 1934 gives
power to the Central Government to make
rules regulating the manufacture,
possession, use, operation, sale, import or
export of any aircraft or class of aircraft
and for securing the safety of aircraft
operations. The said Section further
provides that such rules may provide for,
inter-alia, the licensing of persons
employed in the operation, manufacture,
repair or maintenance of aircraft and the
licensing of persons engaged in air traffic
control;
ii. In exercise of the above power, the Central
Government has made the Aircraft Rules,
1937, which, inter-alia, provide for the
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following:
3.(1H)- “approved training” means a
training the curriculum of which has been
approved by the Director- General.
38. Licensing Authority- The authority by
which various categories of pilot’s licenses
may be granted and renewed shall be the
Central Government.
41. Proof of competency- Applicants for
licences and ratings shall produce proof of
having acquired the flying experience and
having passed satisfactorily the test and
examinations specified in Schedule II in
respect of the licence or rating concerned.
41B. Approved Training Organization-
An FTO is required to obtain the approval
of DGCA before it can enroll students to
acquire flying experience and the level of
competency required for obtaining a licence
or rating specified in rule 38 and Schedule
II of these rules.
Schedule II requires that the flying
experience required for issue of private
pilot and commercial pilot licenses shall be
acquired at the Flying Training
Organization (FTO) approved/ recognized
by the Director-General. Further, clause (e)
of the said schedule requires that the flying
training shall be completed in accordance
with the syllabus prescribed by the
Director-General.
iii. The Civil Aviation Requirements (CAR)
are issued under provisions of Schedule II
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as mentioned above. Section 7, Series D,
Part I of the CAR provides for approval,
renewal and Inspection/ Surveillance/ Audit
of flying training organizations. The CAR
contains detailed provisions covering the
eligibility, requirements and approval of
FTOs.
Para 6.2.4 of the CAR states that upon
satisfactory compliance of all requirements,
DGCA may grant an approval which shall
be valid for a period not exceeding five
years from the date of issue.
Paras 8 and 9 of the CAR provide that the
applicant shall prepare a training and
procedures manual for approval by DGCA,
and the said manual shall include the
programme for single and/ or multi engine
aircraft to be used for training.
Para 14.3 of the CAR provides that an
FTO shall issue a completion certificate to
each student who completes its approved
course of training. It also provides the
information which the said certificate must
necessarily contain.
Para 16 of the CAR provides for extensive
oversight of DGCA over the FTOs
including provisions for
inspection/surveillance/audit and
concomitant enforcement/penal provisions.
• Therefore, the trainings conducted by FTOs
approved by DGCA are skill development
programs covered by law, namely the Aircraft
Act, 1934, the Aircraft Rules, 1937 and the
Civil Aviation Requirements (CARs).
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Accordingly, these trainings conducted by
approved FTOs go out of the definition of
‘vocational education and training’ as provided
under notification dated 5th December 2018
issued by the Ministry of Skill Development
and Education (No. SD-17/113/2017-E&PW).
• Thus, trainings conducted by FTOs, meet the
criteria of being ‘education as a part of a
curriculum for obtaining a qualification
recognized by any law for the time being in
force’ prescribed in sub-para(ii) of the
definition of ‘educational institution’.
• After deliberations, Fitment Committee
recommended to clarify by way of a circular
that approved flying training courses
conducted by DGCA approved Flying
Training Organizations are exempt from
GST.
9. To replace National
Council for
Vocational
Training (NCVT)
with National
Council for
Vocational
Education and
Training (NCVET)
in the notification
No. 12/2017-CT(R)
dated 28.06.2017
and include the
services provided
by the recognized
Awarding Bodies,
• The Ministry of Skill
Development and
Entrepreneurship,
Government of India vide
notification No. SD-
17/113/2017-E&PW dated
5th December 2018
(hereinafter the ‘MSDE
Notification’) has
approved establishment of
the National Council for
Vocational Education and
Training (NCVET) as an
overarching regulator in
the skilling ecosystem
subsuming the erstwhile
• National Council for Vocational Education and
Training (NCVET) constituted vide notification
of Ministry of Skill Development and
Entrepreneurship (MSDE) dated 05.12.2018
has subsumed the existing National Council for
Vocational Training (NCVT) and the National
Skill Development Agency (NSDA).
• The newly constituted body, is a single,
centralized regulatory body, and has now been
entrusted with the development, qualitative
improvement and regulation of vocational
education and training, for granting recognition
to and monitoring the functioning of awarding
bodies, assessment agencies, skill information
providers, and training bodies.
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Assessment
Agencies, Training
Bodies and Skill
Related
Information
Providers approved
by NCVET in the
exempted list.



National Skill
Development Agency
(NSDA) and the National
Council of Vocational
Training (NCVT).
• NCVET has been
established to consolidate
the fragmented regulatory
structure skill ecosystem
of the Vocational
Education and Training
(VET)/ skilling and infuse
quality in the skill
ecosystem.
• The NCVET has been
entrusted with the
development, qualitative
improvement and
regulation of vocational
education and training, for
granting recognition to and
monitoring the functioning
of awarding bodies,
assessment agencies, skill
information providers, and
training bodies, and to
perform other incidental
functions. The main
functions of NCVET
mandated as per the
MSDE Notification are:
a) Recognition, ensuring
discipline, de -
recognizing and
• With the establishment of NCVET, the
regulatory functions, especially w.r.t. approval/
recognition of various Awarding Bodies (ABs)
and Assessment Agencies (AAs) which were
earlier approved/ recognized by multiple
entities like NCVT, Directorate General of
Training (DGT) and National Skill
Development Council (NSDC) etc. have been
consolidated.
• Now, recognition to various such Awarding
Bodies (like Sector Skill Councils (SSC),
Central Ministries, State Departments, DGT,
Universities and autonomous government
organizations, etc.) and Assessment Agencies is
being granted by NCVET.
• The functions of awarding bodies, assessment
agencies, and training bodies, as laid down in
the MSDE Notification, are briefly explained in
the following paragraphs:
Awarding Body
• An “awarding body” means a person
which awards or which proposes to award
certification for a skill or a qualification.
• A “recognized awarding body” means a
person which enters into an agreement
granting recognition with the NCVET and
which is permitted to award certification
for a qualification or a skill by accrediting
training bodies and for regulating their
conduct.
Assessment Agency
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regulation of
Awarding Bodies
(ABs), Assessment
Agencies (AAs) and
Skill related
Information Providers
(SIPs);
b) Anchoring the
National Skills
Qualification
Framework (NSQF),
maintaining the
National Qualification
Register (NQR);
c) Approval of the NSQF
aligned Qualifications
and National
Occupational
Standards (NOSs)
developed by
Awarding Bodies
including the Sector
Skill Councils (SSCs);
d) Monitoring,
evaluation, and
supervision of
recognized entities;
and
e) Establishing
guidelines for indirect
regulation of
vocational training
institutes through
Awarding Bodies.
• “assessment agency” means a person
which tests or conducts examinations to
assess whether a trainee has met the
requirements necessary to be certified as
qualified with respect to a skill or
qualification.
• “recognized assessment agency” means a
person who is a party to an agreement
granting recognition with the NCVET and
which is permitted to test or conduct
examinations to assess whether a trainee
has met the requirements to be certified as
qualified by a recognized awarding body.
Training body
• “training body” means a person who is
accredited with a recognized awarding
body for providing training with respect to
qualifications and skills.

• A “qualification” or “skill” means a
qualification or skill in respect of which the
National Council for Vocational Education and
Training has approved a qualification package.
In view of the above architecture, the
exemption granted vide Sl. No. 69 of
Notification No. 12/2017-CT(R) dated
28.06.2017 needs to be revised. Entry 71 and
the definition of approved vocation education in
para 2(h) of the said Notification also need to
be amended in order to replace references to
NCVT with NCVET.
• After deliberations, Fitment Committee
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• In view of the above, the
relevant entries of
notification No. 12/2017-
CTR need to be recast to
ensure that vocational
education and training/
skilling related services
being offered by NCVET
are exempt.
• Further, it has been
requested that Awarding
Bodies, Assessment
Agencies, and Skill
Related Information
Partners recognized by
NCVET may also be
covered under these GST
exemptions clauses. It has
further been requested that
any Vocational Education,
Training and skilling
training provider, training
centre, or training institute
affiliated to the NCVET
recognized Awarding
Bodies may also be
exempted. It has also been
requested that any other
services provided by
NCVET in pursuance of
its mandate in the skilling
domain be exempted.
recommended as below:
o To continue the exemption to NSDC
in its present form;
o The other proposals of MSDE in
relation to exempting activities of
Skill Related Information Providers
(SRIPs) may not be accepted since no
such exemption exists currently.
o Amendments required in Sl. Nos. 69,
71 and para 2(h) of Notification No.
12/2017-CT(R) dated 28.06.2017 may
be made in order to align the said
entries with the revised vocational
education and training framework
set up under the NCVET.
10. To clarify that for
the period prior to
• Feature films distribution
is undertaken based on
• There are two entries pertaining to distribution
share received from theatres namely, motion
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01.10.2021, the tax
rate applicable is
12% where the film
distributor or sub-
distributor acts on a
principal basis to
acquire and
distribute films.


arrangement entered into
between producers of such
feature films and
distributors and also by
way of an agreement
entered into between
producers/ distributors and
with the exhibition centres.
Hence, in the flow of
services, there are two
separate agreements.
• In some agreements, the
distributor acquires the
exclusive theatrical rights
of distribution, exhibition
and exploitation of the
feature film on a
commission basis for the
designated territories for a
fixed period from the date
of release of the feature
film.
• Further, the distributor in
turn enters into an
agreement with the
exhibition centers for
granting the exhibition
rights of feature films. As
per this agreement entered
into between the distributor
and the exhibitor, the
distributor grants the
exhibition rights to the
exhibitor.
picture distribution services under heading
9996 and services by way of licensing of rights
to broadcast or show films under heading 9973.
• Prior to 1st October 2021, “Motion Picture,
videotape and television programme
distribution services” under Heading 9996
attracted GST rate of 18% and “temporary or
permanent transfer or permitting the use or
enjoyment of intellectual property right in
respect of goods other than IT technology
software” under Heading 9973 which covered
services by way of licensing of rights to
broadcast or show films attracted 12%.
• Explanatory Notes to SAC 999614 and 997332
are reproduced below:
SAC 999614 - Motion Picture, videotape and
television programme distribution services
include:
(i) distribution of audiovisual works,
including granting permission to
exhibit, broadcast and rent
audiovisual works that are implicitly
or explicitly protected by a copyright
owned or controlled by licensor,
usually intended for theatres,
television, home video market etc.,
such as live action or animated films,
videos, digital media etc.
(ii) management services for motion
picture rights.
Note: This product is transacted between the
distributor and the exhibitor, television
network, television station, video rental store
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• The department has taken a
view that only the
transaction entered into by
the producers can only be
covered under SAC code
9973 eligible for 12% GST
rate and therefore, the
transaction between
distributors and exhibitors
wherein the distributors
grant the theatrical rights to
the exhibition centers
attract GST rate @ 18%
under SAC 9996.
etc. This service code does not include
licensing services (by the copyright holder)
for the right to reproduce, distribute or
incorporate audiovisual originals, cf. 997332.

SAC 997332- Licensing services for right to
broadcast and show original films, sound
recordings, radio and tv programmes etc.
includes:
Licensing services for the right to reproduce,
distribute or incorporate entertainment, musical
such as broadcasting and showing of original
films, sound recordings, radio and tv
programmes, prerecorded tapes and videos.
• The GST rates on these services were discussed
in the 45th GST Council meeting held on
17.09.2021 wherein, the Council recommended
to rationalize the GST rate and keep uniform rate
of 18% on both entries. It was also mentioned
that there is an overlap between explanatory
notes to services codes 999614 and 997332.
• It was noted that while “granting permission to
exhibit, broadcast and rent audiovisual works
protected by copyrights” is covered by Service
code 999614 and “licensing services for the right
to broadcast and show original films” is covered
by service code 997332, there is no difference
between “granting permission” and “licensing”.
• After deliberations, Fitment Committee
recommended to regularize the GST liability
for the past period prior to 01.10.2021 on ‘as
is where is’ basis, where the film distributor
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or sub-distributor acts on a principal basis to
acquire and distribute films.
11. To clarify
taxability on
Preferential
Location Charges
(PLC) collected
along with
consideration for
sale/ transfer of
constructed/
under-constructed
residential/comme
rcial properties.
• Haryana Appellate Authority
has held vide order dated
28.09.2020 that preferential
location is an exclusive
service independent of
construction services.
• A writ petition has been filed
against the said order. The
petitioner has contended as
below:
(i) sale of land and
building is altogether
excluded as per Schedule
III under Section 7 of the
CGST/SGST Act;
therefore, PLC is also
outside the ambit of the
GST.
(ii) even where
the case falls in Para 5 (b)
of the Schedule II i.e.,
supply of construction
services before issuance
of completion certificate,
then also preference
location charges can only
be charged to GST as a
part of the construction
service and not otherwise.
(iii) further, even
in case where the activity
• Allowing choice of location of apartment is
integral part of supply of construction services
and therefore, location charge is nothing but
part of consideration charged for supply of
construction services before issuance of
completion certificate. Being charged along
with supply of construction services for the
apartment, the same attracts GST at same rate as
of construction services before issuance of
completion certificate.
• Further, in case of sale of land or building after
the issuance of completion certificate, which is
neither a supply of goods nor a supply of
services, supply of PLC is also not taxable
under GST.
• For the purpose of determining the threshold of
Rs.45 lakhs in case of “affordable residential
apartment” charges such as preferential location
charges, development charges, parking charges,
common facility charges etc are included in the
gross amount. For the reference, clause xvi, sub-
clause (a)(ii)(C) of paragraph 4 of notification
No. 11/2017-CT(R) dated 28.06.2017, may be
referred which reads as below:
“C. Any other amount charged by the promoter
from the buyer of the apartment including
preferential location charges, development
charges, parking charges, common facility
charges etc.”
• Further , with respect to supply of PLC along
with the grant of long term lease, based on the
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falls within the ambit of
Clause (b) of Para 5 of
Schedule II, the taxable
activity is the
“construction” of a
complex, building, civil
structure or a part thereof,
including a complex or
building intended for sale
to a buyer, wholly or
partly, except where the
entire consideration has
been received after
issuance of completion
certificate, where
required, by the
competent authority or
after its first occupation,
whichever is earlier; and
not the sale of building.
Therefore, only that part
of the total consideration
must be subjected to tax
which is related to the
construction done in
pursuant to the agreement
to sell before issuance of
CC/OC.
(iv) PLC are a part
and parcel of the
transaction of sale of land
and building, and do not
constitute any
independent service by
recommendation of 47th GST Council meeting
held in June 2022, it was clarified vide Circular
No. 177/09/2022-TRU dated 03.08.2022 that
the location charges or preferential location
charges (PLC) paid upfront in addition to the
lease premium for long term lease of land
constitute part of the lease premium or of
upfront amount charged for long term lease of
land and are eligible for the same tax treatment.
• After deliberations, Fitment Committee
recommended to clarify that location charges
or Preferential Location Charges (PLC) paid
along with the consideration for the
construction services of residential complex
before issuance of completion certificate
forms part of composite supply where supply
of construction services is the main service
and PLC is naturally bundled with it and are
eligible for same tax treatment as the main
supply ie construction service.
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the developer to the
buyer. Preferential
location is a composite
supply wherein the
principal supply is the
construction service.
• However, Haryana AAAR,
in the instant case has
observed as under:
(i) Despite the
preferential location
coming into existence as
a consequence of the
construction activity
undertaken by the
developer, the amount
charged for preferential
location is a
consideration paid by the
prospective buyer for
provisioning of an
exclusive service viz. of
providing a location
which is more
preferential to a buyer of
a house or commercial
property even after
issuance of a completion
certificate.
(ii) Premiumness of
location attracts a
commensurate
consideration which the
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buyer pays for an
identified advantage, viz
view/ direction/
sunlight/airiness/vicinity/
serenity/parking facility
etc. or a combination of
these. This makes the
provided service an
exclusive service capable
of providing even by a
dealer in immovable
property. The same
therefore need not be
component of
construction service.
(iii) The most
appropriate entry wherein
the instant service is
classifiable is 997222 i.e
Building sales on a fee or
commission basis or on
contract basis
• Hon’ble AAAR, West
Bengal has also held that
Preferential Location
Service is attributable to
the choice of purchaser in
respect of floor rise and
directional advantage.
Hence, it is evident that
Preferential Location
Service cannot be naturally
bundled with construction
service in the ordinary
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course of business. The
abatement, which is
allowed on the value of
construction service, as the
plot of land on which
construction is done is not
liable to GST and cannot be
deemed to be applicable in
respect of Preferential
Location Service, which is
altogether a separate
service having no
association with the land.
12. To ascertain value
of land for deciding
value of
construction
services in case of
sale of commercial
/ residential
apartments.


• As per paragraph 2 of the
notification No. 11/2017-
Central Tax (Rate) dated
28th June, 2017, in case of
supply of “construction
service”, involving transfer
of land or undivided share
of land, the value of such
supply shall be equivalent
to the total amount
charged for such supply
less the value of transfer of
land or undivided share of
land, and the value of such
transfer of land or
undivided share of land,
shall be deemed to be one
third of the total amount
charged for such supply.
• However, Hon’ble High
Court of Gujarat in the
• Issue was deferred by the 52nd GST Council
held on 07.10.2023.
• Hon’ble High Court of Gujarat in the case of
Munjaal Manishbhai Bhatt Vs. UOI in SCA
No. 1350 of 2O21 dated 06.05.2022 has not
only directed to deduct value of land on actual
basis where it is ascertainable, but has also
ordered to refund the excess amount of tax paid
on this count in the past. The said order of the
Hon’ble High Court has been contested before
the Hon’ble Supreme Court.
• The Court in the said case has also held that
valuation has been done through a notification
entry while the same should have been done
under rules prescribed under Section 15 of the
Act.
• Relevant paras 122 – 124 of Hon’ble Gujarat
High Court in the Munjaal Manishbhai Bhatt
Vs. UOI in SCANo. 1350 of 20 21 dated
06.05.2022 is reproduced as under:
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case of Munjaal
Manishbhai Bhatt Vs. UOI
in SCANo. 1350 of 2O21
dated 06.05.2022, has
declared mandatory
deduction of 1/3rd of total
consideration towards
value of land as ultra-vires.
The said para (Para 122) is
shown below:
“in the result, the impugned
Paragraph 2 of the
Notification No. 11/2017-
Central Tax (Rate) dated
28.06.2017 and identical
notification under the
Gujarat Goods and
Services Tax Act, 2017,
which provide for a
mandatory fixed rate of
deduction of 1/3rd of total
consideration towards the
value of land is ultra- vires
the provisions as well as
the scheme of the GST Acts.
Application of such
mandatory uniform rate of
deduction is discriminatory,
arbitrary and violative of
Article 14 of the
Constitution of India.”
• Further, in the said
judgment Hon. Gujarat

“122. in the result, the impugned Paragraph 2
of the Notification No. 11/2017- Central Tax
(Rate) dated 28.06.2017 and identical
notification under the Gujarat Goods and
Services Tax Act, 2017, which provide for a
mandatory fixed rate of deduction of 1/3rd of
total consideration towards the value of land is
ultra- vires the provisions as well as the scheme
of the GST Acts. Application of such mandatory
uniform rate of deduction is discriminatory,
arbitrary and violative of Article 14 of the
Constitution of India.

123 While we so conclude, the question is
whether the impugned paragraph 2 needs to be
struck down or the same can be saved by
reading it down. In our considered view, while
maintaining the mandatory deduction of 1/3rd
for value of land is not sustainable in cases
where the value of land is clearly ascertainable
or where the value of construction service can
be derived with the aid of valuation rules, such
deduction can be permitted at the option of a
taxable person particularly in cases where the
value of land or undivided share of land is not
ascertainable.

124 The impugned paragraph 2 of Notification
No. 11/2017- Central Tax (Rate) dated 28th
June 2017 and the parallel State tax
C/SCA/1350/2021CAV JUDGMENT DATED:
06/05/2022 Notification is read down to the
effect that the deeming fiction of 1/3rd will not
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High Court proclaimed
that deduction of 1/3rd of
the value of land will be
permitted at the option of
taxpayer. Relevant para
123 and 124 are given
below;
“123 While we so conclude,
the question is whether the
impugned paragraph 2
needs to be struck down or
the same can be saved by
reading it down. In our
considered view, while
maintaining the mandatory
deduction of 1/3rd for value
of land is not sustainable in
cases where the value of
land is clearly
ascertainable or where the
value of construction
service can be derived with
the aid of valuation rules,
such deduction can be
permitted at the option of a
taxable person particularly
in cases where the value of
land or undivided share of
land is not ascertainable.
124 The impugned
paragraph 2 of Notification
No. 11/2017- Central Tax
(Rate) dated 28th June
be mandatory in nature. It will only be
available at the option of the taxable person in
cases where the actual value of land or
undivided share in land is not ascertainable.”
• Section 15(5) of CGST Act, 2017 empowers
the Government to notify the value of such
supplies, based on the recommendations of the
Council, which will be determined in the
manner as prescribed.
• After deliberations, Fitment Committee
recommended that valuation may be done on
the basis of notified circle rates or registered
sales deed/ or on actual basis wherever
available. Where the circle rate or value of
land is not available, then value of land may
be deemed. Law Committee may deliberate
for making necessary amendment in Rule 32
of CGST Rules, 2017.
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2017 and the parallel State
tax C/SCA/1350/2021CAV
JUDGMENT DATED:
06/05/2022 Notification is
read down to the effect that
the deeming fiction of 1/3rd
will not be mandatory in
nature. It will only be
available at the option of
the taxable person in cases
where the actual value of
land or undivided share in
land is not ascertainable.”
• In one of the search
operations, it is found that
promoter, involved in
construction of commercial
apartments, has claimed
60% deduction towards the
value of land. Taxpayer has
taken resort of the above
judgment of Hon Gujarat
High Court and paid GST
on 40% of the total amount
charged for such supply.
13. To levy GST on
renting of
commercial
property by
unregistered person
to registered person
on Reverse Charge
Mechanism (RCM)
• GST @18% is applicable
on the renting income.
However, vide notification
No. 12/2017- Central Tax
(Rate) dated 28th June
2017, services by way of
renting of residential
dwelling for use as a
• Issue was deferred by the 52nd Council meeting
held on 07.10.2023.
• Currently, vide entry no. 12 of the notification
No. 12/2017-CTR dated 28.06.2017, renting of
residential dwelling for use as residence is
exempt from GST except when it is rented to a
registered person, in which case it is taxed
under RCM.
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basis. residence are exempted
from GST.
• As per notification No.
05/2022- Central Tax
(Rate) dated 13th July
2022 service by way of
renting of residential
dwelling to a registered
person is subject to GST
on reverse charge and tax
is to be paid by the
registered person who is
taking the said dwelling on
rent.
• This implies that even if
the rent of the said
property is less than Rs. 20
lakhs (threshold for
registration) it would be
subject to GST. Further,
GST is applicable @ 18%
under forward charge on
renting of commercial
property.
• In case of renting of
commercial property, only
registered person is subject
to payment of tax.
However, where the
person providing service
of renting of commercial
property is unregistered
(on account of threshold
for registration) no GST is
• Services by way of renting of immovable
property (other than renting of residential
dwelling to a registered person for use as
residence) is taxable on forward charge basis
(except renting of immovable property by
Government and Local Authority to a registered
person).
• Non-imposition of tax on reverse charge basis
on rental services in relation to commercial
property from unregistered to registered person
appears to be creating differential tax regime
for residential property vis-à-vis commercial
property.
• After deliberations, to plug the revenue
leakage, Fitment Committee recommended
that renting of commercial property by
unregistered person to registered person
may be brought under RCM.
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applicable.
• Taxpayers are adopting
nefarious means to avoid
payment of tax by
remaining below the
threshold limit, as
illustrated below:

Illustration 1: Mr. X, Y
and Z are part owners of
the property and rent it to
Mr. A, who is a registered
person and rental income
is Rs. 24 lakhs. The rent is
divided between them and
received in individual
accounts, thereby keeping
the turnover below
threshold. In case, this
service is brought under
reverse charge, the
registered tenant i.e., Mr.
A in this case will be liable
to discharge GST without
applicability of threshold
limit.

Illustration 2: Mr X has a
commercial property
which is rented to a
registered person and the
rental income of same is
more than Rs. 20 lakhs but
in order to avoid GST
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rental income of less than
Rs. 20 lakhs is shown in
records and since GST is
applicable on forward
charge being below
threshold, the said
transaction will go out of
the ambit of GST.
• In light of the above, it is
proposed that renting or
leasing of commercial
property by unregistered
person to registered person
may be subject to tax on
reverse charge basis in
order to plug the leakage
of revenue.
• This would not only plug
the loopholes as detailed
earlier but also would
bring parity in the taxation
of service of renting of
commercial or residential
property to registered
person.
• Since the availment of
Input Tax Credit on
immovable property or
construction is already
barred by the provisions of
sub-section (5) of section
17 of the GST Act, there is
not expected to be much of
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ITC blocking for such
taxpayers as beyond the
extant regime.
14. To clarify the
taxability on sale of
partnership interest
in case of farm-in
farm out contracts
in oil and gas
exploration sector.


• For regulation of
petroleum operations and
grant of licenses & leases
for exploration,
development & production
of petroleum in India, the
Government of India has
executed Production
Sharing Contracts (PSCs),
with Exploration &
Production (E&P)
companies.
• Since the investment
involved is huge, a number
of E&P Companies come
together & enter into a
single PSC with the
Government of India,
wherein each of these
companies has agreed
Participating Interest (PI)
defined under the Model
PSC, as under

“Participating
Interest” means, in respect
of each Party constituting
the Contractor, the
undivided share expressed
as a percentage of such
Party’s participation in the
• A farm-in is an agreement between two
operators, one of which owns the interest in a
piece of land where oil or gas has been
discovered. The owner of the interest makes the
agreement in order to offset the costs associated
with drilling, developing, or otherwise
removing the resources from the land. The
company that acquires the rights to do the
actual drilling benefits from access to a proven
source of oil or natural gas without having to
discover it themselves.
• A farm out is a type of agreement where a
party that has a working interest to a gas and oil
lease will grant that interest to another party.
The other party will then be contractually
obligated to meet specific conditions, such as
setting up a drill in a specific location, drilling
to an agreed upon depth, etc. The owner of the
interest in this lease can assign either all their
interest to the other party, or only a portion of
it.
• The bids for licenses and leases of oil fields can
be made by a single company or by a
consortium of companies. The single company
or the consortium of companies which gets the
oil exploration lease and enters into Production
Sharing Contract with the Government is called
a contractor in the Production Sharing Contract.
• The Model Production Sharing Contract
available on the website of MoPNG provides in
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rights and obligations
under the Production
Sharing Contract.”
• Over a period of time, the
E&P Companies buy
(Farm-in) and sell (Farm-
out) their PIs in the PSC,
for consideration.
• Farm-in expenditure is
incurred when a company
in this line of business,
acquires PI from another
E&P company and
becomes part of the PSC
entered with the
Government of India.
Such Farm-in expenditure
is accounted for, as per
Circular No. 20/2019 dated
19-08-2019 of the Central
Board of Direct Taxes
(Annexure-A1), as
‘intangible asset’ (business
or commercial right akin to
a licence), eligible for
claim of depreciation.
• Thus, PI being undivided
share in the rights acquired
under the PSC, is
accounted for as intangible
assets and under the Farm-
in & Farm-out agreement,
the E&P company supplies
Article 28.1 that any party comprising the
contractor may assign or transfer a part or all of
its participating interest with the written
consent of the Government.
• Article 28.5 of the Production Sharing Contract
states that upon assignment or transfer of its
interest in the contract, the assigner or
transferor shall be released and discharged from
its obligations under the contract to the extent
such obligations are assigned by the assignee or
transferee.
• Article 28.7 of the Production Sharing Contract
provides that the minimum participating
interest that can be assigned is 10% of the total
participating interest of all the constituents of
the contractor.
• Article 29.7 of the Production Sharing Contract
indicates that where a party assigns all or a part
of its participating interest to a third party, an
addendum is added to the original contract
giving effect to the participating interest which
is executed by all the parties and on execution
of such addendum by all the parties, the
Government shall release the guarantee given
by the assignor required under the contract.
• Assignment of any right or interest by any
person to another against consideration is
taxable unless it has been exempted or such
assignment amounts to,-
• Supply of Actionable Claims or
• Transfer of Going Concern (TOGC).
• Supply of Actionable Claim has been declared
as neither a supply of goods nor a supply of
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such PIs (i.e. the undivided
share in the licenses/rights
obtained from the
Government, for
exploration, development
& production of
petroleum) under the PSC,
to another E&P company,
for consideration. Further,
intangible assets can be
both intellectual property
products (patents,
copyrights & trademarks
which are statutory forms
of intellectual property) as
we as non-intellectual
property products (i.e.,
trade secrets, contracts
etc.).
• Since PI is intangible asset
and also not a actionable
claim, it is, therefore, not
covered under the ambit of
goods as defined under the
CGST Act, 2017. Thus, it
appears to be under the
ambit of ‘service’ and in
terms of Explanatory note
on the Scheme of
Classification of Services,
supply of PIs under the
Farm-in & Farm-out
agreements, appears to be
covered under supply of
services while transfer of going concern on the
other hand has been exempted.
• To decide whether assignment of participating
interest is a constituent of the Production
Sharing Contract to another constituent or to a
person outside the contract, it has to be
determined whether the assignment of
participating interest in the Production Sharing
Contract amounts to supply of Actionable
Claims or supply of services by way of Transfer
of Going Concern.
• Actionable Claims has been defined in Transfer
of Property Act, 1882 as under:

“actionable claim” means a claim to any debt,
other than a debt secured by mortgage of
immoveable property or by hypothecation or
pledge of moveable property, or to any
beneficial interest in moveable property not in
the possession, either actual or constructive, of
the claimant, which the Civil Courts recognise
as affording grounds for relief, whether such
debt or beneficial interest be existent, accuring,
conditional or contingent.”
• Court decisions relating to Actionable Claims
have held that transfer of beneficial interest in a
contract can be transferred as an Actionable
Claim. However, transfer of obligations under
a contract cannot be assigned as an Actionable
Claim.
• Therefore, if a person transfers only the
beneficial interest in a contract without
transferring any of his obligations under the
contract or if he transfers the beneficial interest
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service under SAC 997337
(Group 99733), as under:

99733: Licensing services
for the right to use
intellectual property and
similar products
This group includes
permitting, granting or
otherwise authorising the
use of intellectual property
products and similar
products.
Note: This covers rights to
exploit these products,
such as licensing to third
parties; reproducing and
publishing software, books
etc.; using patented
designs in production
processes to produce new
goods and so on. Limited
end user licenses, which
are sold as part of a
product (e.g., packaged
software, books) are not
included here.

997337 Licensing services
for the right to use
minerals including its
exploration and evaluation
This service code includes
licensing services for the
in the contract after fulfilling all his obligations
under the contract such assignment of
beneficial interest in the contract would be
regarded as transfer of an Actionable Claim.
• However, the interest of a partner in an on-
going partnership firm cannot be transferred as
Actionable Claim because the interest of a
partner in an ongoing partnership firm has both
rights and obligations attached to it.
• Para 28.8 of the Production Sharing Contract
indicates an instance where a party comprising
the contractor may assign its participating
interest without assigning its obligations under
the contract for the purposes of obtaining
finance from the potential lenders.
• If the assignment of participating interest is of
such a nature where only the beneficial interest
of a party is transferred without transfer of any
obligations, it may amount to transfer of
Actionable Claim and will be outside GST.
Thus the contract or the agreement for such
assignment has to be closely examined in each
case to arrive at a decision whether the
assignment of participating interest can be
considered as transfer of Actionable Claim.
• In order to ascertain whether sale of partnership
interest falls within the scope of Transfer of
Going Concern (TOGC), it is pertinent to look
at the scope of TOGC.
• TOGC is exempt under GST although the term
TOGC has not been defined under GST Law.
However, the definition of ‘slump sale’ under
Income Tax Act broadly covers the concept of
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right to use, minerals
exploration and evaluation
information, such as
mineral exploration for
petroleum, natural gas and
non-petroleum deposits.
• Further, Sl. No. 17 of the
Notification No. 11/2017-CT
(Rate) dated 28-06-2017
notifies the rate of CGST on
supply of services covered
under SAC 9973. Since
supply of PIs is transfer or
permitting the use or
enjoyment of non-
intellectual property rights, it
appears to be covered under
the residuary entry at Sl. No.
17 (viii) of the Notification
No. 11/2017-CT (Rate)
dated 28-06-2017 which
presently attracts GST rate
of 18%.
• Thus, it is felt that supply of
PIs by way of Farm-in &
Farm-out agreements, is
taxable under the CGST Act,
2017.
TOGC.
• As per Section 2 (42 C) of Income Tax Act,
1961,
‘slump sale’ means the transfer of one or more
undertakings as a result of the sale for a lump
sum consideration without values being
assigned to the individual assets and liabilities
in such sales.
• Income Tax does not treat sale of partnership
interest as slump sale and sale of partnership
interest is taxed as capital gains and is not
treated as TOGC.
• If sale of partnership interest is not TOGC, the
same is liable to GST. ITC of the same is
available in most cases and would not be an
issue.
• Thus, sale of partnership interest in case of
farm-in farm out contracts in oil and gas
exploration sector is taxable.
• After deliberations, Fitment Committee
recommended to clarify that farm-in and
farm-out of participating interest is taxable.
15. To clarify whether
exemption under
entry 34 of
notification No.
12/2017-CTR dated
• In 2017, government
exempted transactions
below Rs 2000 from the
levy of service tax and
GST. This was to ensure
• Entry 34 of notification No. 12/2017-CTR dated
28.06.2017 reads as below:
“Services by an acquiring bank, to any person
in relation to settlement of an amount upto two
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28.06.2017 is
available to
payment
aggregators for
transactions
transacted through
credit card, debit
card, charge card or
other payment
cards over digital
networks upto Rs.
2000/-.



that the merchants are not
burdened with the
additional cost of GST on
smaller value transactions
done through credit card,
debit card or other
payment card services.
• Entry 34 of notification
No. 12/2017-CTR dated
28.06.2017 reads as below:
“Services by an acquiring
bank, to any person in relation
to settlement of an amount
upto two thousand rupees in a
single transaction transacted
through credit card, debit
card, charge card or other
payment card service.
Explanation. — For the
purposes of this entry,
“acquiring bank” means any
banking company, financial
institution including non-
banking financial company or
any other person, who makes
the payment to any person who
accepts such card”.
• Acquiring bank has been
defined broadly to cover
all/ any entity that is
involved in digital
payment transaction and
settles the payment to the
thousand rupees in a single transaction
transacted through credit card, debit card,
charge card or other payment card service.
Explanation. — For the purposes of this entry,
“acquiring bank” means any banking company,
financial institution including non-banking
financial company or any other person, who
makes the payment to any person who accepts
such card”.
• Payment Aggregators (PAs) are intermediaries
playing an important function in facilitating
payments in the online space.
• PAs are entities that facilitate e-commerce
sites and merchants to accept various payment
instruments from the customers for completion
of their payment obligations without the need
for merchants to create a separate payment
integration system of their own.
• PAs facilitate merchants to connect with
acquirers. In the process, they receive
payments from customers, pool and transfer
them on to the merchants after a time period.
• However, the definition of acquiring banks has
to be read in line with the other categories
mentioned in the definition such as banking
company, financial institution including NBFC
etc. and PAs being intermediaries do not fit the
mandate.
• After deliberations, Fitment Committee
recommended to clarify that the services
provided by payment aggregators in
relation to the transaction transacted
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end merchant who
accepted card transactions.
• Payment Aggregators (PA)
who are now directly
regulated under extant RBI
guidelines play a critical
role as they are involved in
handling of funds and
interface with the
merchants directly to
ensure that the card
payments accepted by the
merchants are duly settled
to such merchants.
• PAs onboard merchants
across geographical
locations, operating
models, size, etc. on the
digital payment ecosystem.
PAs do the settlement of
funds to merchants even
with less revenue margins
that such settlement
process entails.
through credit card, debit card, charge card
or other payment cards over digital
networks upto Rs. 2000/- are not eligible for
exemption under entry at Sl. No. 34 of the
notification No.12/2017-CTR dated
28.06.2017 and is taxable.
16. To clarify whether
concession amount
paid to NHAI by
concessionaire for
grant of rights
under Toll Operate
and Transfer model
(TOT) is liable to
GST or not, as toll
is exempted under
• National Highway
Authority of India (NHAI)
has been authorized for
monetization of assets by
introducing the Toll
Operate and Transfer
(TOT) model for
partnership with private
sector for toll collection,
operation and maintenance
• Under CGST Act, 2017, supply of any goods
and services or both, attracts GST unless that
supply is specifically exempted from GST.
• It is immaterial whether consideration in lieu of
that supply is appropriated in Consolidated
Fund of India or not or the said amount is
considered as income or not. No such
exemption has been granted in CGST Act based
on the fact that the consideration for any supply
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Notification-
12/2017 - Central
Tax (Rate) dated
28.06,2017.

for a period of 15-30 years
against an upfront lump
sump concession fee
quoted.
• As per NHAI submission,
all the proceeds of TOT are
remitted to Consolidated
Fund of India, upon
realization on the same day
and are not considered as
Income in the Books of
NHAI.
• Toll (user fee) is
reimbursement for the costs
that are incurred in the
construction, maintenance
and operation of roads and
bridges. Further, toll is a
consideration charged to
vehicles for
providing/allowing access
to a road or bridge.
• The concession amount is
the lump sum upfront
payment of toll revenue
which is in nature of a
Capital Receipt used to
fund for creation of new
assets. Therefore, it is not
liable to GST, as toll is
exempted under
Notification- 12/2017 -
Central Tax (Rate) dated
28.06,2017.
of service is appropriated in Consolidated Fund
of India.
• The consideration paid for the services provided
by other Government departments are also
appropriated to the consolidated fund of India
and they are also taxed under GST and no
exemption is given to them based on the
remittance of the consideration to the
Consolidated Fund of India.
• Under TOT model, the National Highway
Authority of India engages a concessioner for
operation, maintenance and management of
already developed/ constructed highway
projects. The concessioner is entitled to demand
and collect toll from vehicles and users of the
highway.
• As per the Model concession agreement under
TOT arrangement, grant of concession entitles
the concessioner:
(a) Right of Way, access and license to the
Site for the purpose of and to the extent
conferred by the provisions of this Agreement;
(b) manage, operate and maintain the
Project Highway and regulate the use thereof
by third parties in accordance with terms
hereof;
(c) demand, collect and appropriate
Fee from vehicles and Users liable for
payment of Fee for using the Project Highway
or any part thereof and refuse entry of any
vehicle if the Fee due is not paid;
(d) perform and fulfill all of the
Concessionaire's obligations under and in
accordance with this Agreement;
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• Demand amounting to Rs.
677 Cr for the period from
July, 2017 to March, 2022
has been issued.

( e) bear and pay all costs, expenses
and charges in connection with or incidental
to the performance of the obligations of the
Concessionaire under this Agreement; and
(f) neither assign, transfer or sublet or create
any lien or Encumbrance on this Agreement,
or the Concession hereby granted or on the
whole or any part of the Project Highway nor
transfer, lease or part possession thereof, save
and except as expressly permitted by this
Agreement.
• The upfront amount paid by the concessionaire
is the consideration paid by him for receiving
exclusive right of way, access and license to the
site including right to demand, collect and
appropriate fee from vehicles and users along
with the maintenance of the highways etc by
NHAI and regulation of third parties from the
appointed day till expiry of agreement.
• As per NHAI, Toll (user fee) is reimbursement
for the costs that are incurred in the
construction, maintenance and operation of
roads and bridges. Further, toll is a
consideration charged to vehicles for
providing/allowing access to a road or bridge.
• While entry at Sl. No.23 of the notification No.
12/2017-CTR dated 28.06.2017 exempts the
service by way of access to a road or a bridge on
payment of toll charges from GST, thereby, it
exempts the toll collected from the individual
users for access of the roads and bridges by the
concessionaire.
• Along with right to access, the concessionaire
also maintains and manages the already
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developed/ constructed highway projects and
such services are taxable unless exempted. The
upfront amount paid by concessionaire to NHAI
is also inclusive of this cost.
• After deliberations, Fitment Committee
recommended to clarify that the concession
amount paid to NHAI by concessionaire is
taxable and not covered under entry at Sl.
No. 23 of notification No. 12/2017-CTR.
17. Research grants or
donations received
from Government
or private agencies
may be kept outside
the purview of GST
taxation

• DGGI has issued show
cause notices to certain
research organizations
demanding GST on
research grants received
from government and
private sources.
• However, the research
grants may be treated as
subsidy as the nature of
research using the grant is
only towards delivering
public good and does not
lead to commercialization
or business. Only research
or consultancy leading to
contracted output of goods
or services should be
levied to GST and many
universities are paying
GST for such activities
• Research grants given for
open-ended generic
research are not
• DGGI has issued a series of Show Cause
Notices in respect of non-payment of GST by
institutions / universities on grants received by
them from government / non-government
bodies for conduct of research.
• DGGI has taken a view that research conducted
by an institute / university is a supply of service
by the institute / university. In the instant
cases, the payment in the form of grant was
made to the institute / university so that institute
/ university may undertake research on a
particular project. Therefore, the payment
received by the institute / university in the form
of grants appears to qualify as consideration.
Also, the research conducted by the institute /
university appears to be covered under the
definition of business.
• In the 22nd meeting of the GST Council, it was
recommended that grants given by Central
Government, State Government or a local
authority to a Government entity may be
exempted under GST. The context in which this
recommendation was made was a proposal
from the State of Gujarat to exempt the
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'consideration' as the grant
money received is a
voluntary payment without
any identifiable underlying
supply of goods or
services solely for the
benefit of the grantor. It
must also be borne in mind
that out of the grants
received, substantive
portions go for the
purchase of capital assets
or operational expenses for
which GST is paid at
prevailing rates.
• Research grant is a
voluntary donation
following a competitive
process of selection based
on proposals submitted.
The proposals clearly
highlight the objective of
delivering larger public
good which otherwise the
government or its agencies
have to do directly. Not
only is this a subsidy in
that regard but also the
grant given is renewed
only after submission of
utilisation certificate
periodically. While the
genuine pursuit of research
is not in question, it is safe
provision of budgetary grants to entities set up
by the Government to implement various
schemes and to carry out functions on its
behalf. Accordingly, vide Notification No.
No.32/2017- Central Tax (Rate) dated
13.10.2017, entry 9C was inserted in the
exemption notification 12/2017-CT(Rate) with
effect from 13.10.2017.
• As per Sl.No.9C of the Notification No.12/2017
– Central Tax (Rate) dated 28.06.2017 supply
of service by a Government Entity to Central
Government, State Government, Union
territory, local authority or any person
specified by Central Government, State
Government, Union territory or local authority
against consideration received from Central
Government, State Government, Union territory
or local authority, in the form of grants, is
exempted from GST.
• It is DGGI’s case that the supply of R&D
services by the research institute / university to
CSIR, ICMR, SERB and such other
Government entities or Private entities against
consideration received in the form of grants
from such entities do not qualify for exemption
under the aforesaid entry.
• This is because the existing entry at Sl. No. 9C
of Notification No. 12/2017-CT(R) exempts
services being provided only by Government
entities and further restricts the scope of the
exemption to cases where the service is
provided to the Government, or any person
specified by it, against grants received from the
Government.
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to assume that research is
not business.
• If the Government intends
to create intelligible
differentia to ensure only
deserving research
institutions are exempted,
GST may be exempted for
universities and institutions
notified u/s 35(i)(ii) of the
Income Tax Act as they are
recognised as research
institutions.
• It is felt that a specific exemption may be
created to include public funded research
activities being carried out by Government
entities and certain private entities which are
notified under Section 35(1)(ii) or (iii) of the
Income Tax Act, 1961 as organizations to
which contributions made for scientific
research are allowed as a deduction.
• After deliberations, the Fitment Committee
recommended to grant exemption to the
following service under heading 9981:

o Supply of research and development
services by-
(a) a Government Entity; or
(b) a research association, university, college
or other institution, notified under clauses (ii)
or (iii) of sub-section (1) of section 35 of the
Income Tax Act, 1961

to Central Government, State Government,
Union territory, local authority or Government
Entity against consideration received from
them in the form of grants.
o An explanation may be inserted in the
Notification entry explaining that a research
association, university, college or other
institution shall be eligible for the exemption
only if it is duly notified under section 35 of
the Income Tax Act, 1961 at the time of
supply of the research service; and
• Past cases may be regularized on ‘as is where
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is’ basis.
18. (a) To issue a
suitable
clarification with
regard to non-
applicability of
GST under reverse
charge on the India
branch office for
expenses incurred
by Foreign Airlines
Head Office.

(b) Any other relief
mechanism or
amendment
effective from
01.07.2012 that
meets the request.




• Taxation of Head Office
(HO) activities attributable
to India operations (on a
presumptive or deemed
basis) would amount to
taxation of aircraft lease,
fuel, maintenance, aircraft
stores and crew in the
course of their
international operations.
• These operations have
immunity from taxation
(such as customs and other
charges on their import
into another jurisdiction)
under international and
bilateral air services
agreements, including
under income tax treaties.
• Contract of carriage with
passengers globally, lies
with the Head Office even
though ticket sales may
occur through various
sales channels.
• All risks and
responsibilities for
fulfilling the journey lie
with the Head Office.
Consequently, the Head
Office contracts for all the
key expenses such as
• As per investigations, running an airline
includes inter alia the expenditures such as
lease rent of aircraft, maintenance charges for
aircraft which includes maintenance contract,
procurement of space etc., cost of crew and
pilots and other expenditures (including fuel).
• In case of Foreign Airlines operating flights
from India, majority of the aforesaid expenses
is incurred by the HO of foreign airlines located
outside India. The HO of the foreign airlines do
not charge any consideration against these
expenses from the branch offices located in
India.
• However, in terms of Schedule I Entry 4 of the
CGST Act, 2017, any import of services, even
if undertaken without consideration, by an
establishment of one person located in India
from an establishment of the same person
located outside India, would be considered as a
supply without consideration.
• The valuation of such supply of service without
consideration shall be done as per provisions of
Section 15 of the CGST Act, 2017 read with
Rule 28 of the CGST Rules, 2017.
• Therefore, it appears that the branch offices of
the foreign airlines were liable to pay tax on the
aforesaid expenditure under reverse charge
mechanism @18% even if no consideration was
charged by the HO.
• Possession of the aircraft always vests with the
HO located outside India which is deemed to be
a distinct person than the Indian Branch Office
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aircraft, fuel, maintenance,
crew, etc. (even though the
India Branch could
contract for some local
services relevant to its
limited in-country
activities and scope of
work).
• It would therefore be a
fallacy to presume, as is
being alleged in the
ongoing proceedings, that
the India Branch is
somehow responsible for
contracting and delivering
air transport services to the
passengers, and thus
requires the Head Office to
provide support to the
India Branch for the
fulfilment of these
services.
• Furthermore, the Branch is
not even the beneficiary of
the contracts signed by the
Head Office as the Head
Office runs the entire
operation from outside
India with no role for the
Branch in commercial
decisions
• Merely because the India
Branch is responsible for
payment of GST on the
in terms of Section 8 of the IGST Act. The cost
of the aforesaid expenditure ranges between
18% - 28% of the sales value depending on the
supply chain pattern of the different airlines.
• As per entry 4 of Schedule I of CGST Act,
“import of service by a person from a related
person or from any of his other establishments
outside India, in the course or furtherance of
business” is to be treated as a supply even if
made without consideration.
• Further, as per explanation to sub-section 2 of
section 8 of IGST Act, where a person has an
establishment in India and any other
establishment outside India then such
establishments shall be treated as
establishments of distinct persons.
• Section 7(1)(c) of CGST Act, 2017 states that
“the expression supply includes the activities
specified in Schedule I, made or agreed to be
made without a consideration”.
• Section 2 (11) of IGST Act, 2017 defines
‘import of services’ as the “supply of any
service, where–– (i) the supplier of service is
located outside India; (ii) the recipient of
service is located in India; and (iii) the place of
supply of service is in India.”
• Thus, in terms of existing legal provisions, the
services by branch office from head office is
taxable.
• However, in the representation it has been
highlighted that all expenses are being borne by
the head office on account of aircraft lease,
fuel, maintenance, aircraft stores and crew in
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entire outbound journey
under the GST law, it does
not automatically imply
that the India Branch is
contractually or factually
responsible for entire air
transport operations in
India.
• Section 7 of CGST Act,
2017 defines the term
‘supply’, which includes
within its ambit ‘activities
as specified in Schedule I
of CGST Act, 2017 even if
made without
consideration’ (deeming
provision). The provision
only permits taxation of
supplies in certain cases
where ‘consideration’ is
absent; and does not allow
a presumption of ‘supply’
itself.
• In the present case, the
Head Office is not,
whether under the
foregoing regulations or
under its contract for
carriage or other expenses,
or in fact as per activities
undertaken, supporting the
India Branch in carrying
on India operations.
Hence, even under GST
course of their international operations.
• The branch offices of the foreign airlines are
paying taxes as per the following:
 Transport of passengers by air is
chargeable to 5% GST in case of
economy class, 12% in case of other
than economy class and charter @18%
vide entries at Sr. Nos. 8(ii), (v) and
(vii) of the notification No. 11/2017-
CTR dated 28.06.2017.
 Further, transport of goods by air is
chargeable to 18% GST except the
services by way of transportation of
goods by aircraft from place outside
India to customs clearance in India (Sr.
No. 9(vii) of the notification No.
11/2017- CTR dated 28.06.2017 and
Sr. No. 19 of the notification No.
12/2017 CTR dated 28.06.2017
respectively).
• Ministry of Civil Aviation (MoCA) was
consulted and they have shared the draft entry
in the exemption notification along with
conditions to be imposed with the exemption
which is annexed as Annexure-I.
• Section 2(42) of the Companies Act, 2014
defines foreign company as “any company or
body corporate incorporated outside India
which— (a) has a place of business in India
whether by itself or through an agent,
physically or through electronic mode; and (b)
conducts any business activity in India in any
other manner.”
• Section 381 (1) of Companies Act, 2013 states
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law, there is no
presumption of supply
being permissible in such a
case.
• Further, if the Foreign
Airline would have
operated through a General
Sales Agent (3rd party) in
India, in place of having a
Branch office, this issue
would not be debated.
GST regulations cannot
result in a significantly
adverse outcome for the
Branch as compared to a
3rd party, operations
remaining the same.
• Investigations have been
started against various
branch offices of the
foreign airlines that they
are required to pay the tax
under Reverse Charge
Mechanism as recipient of
services from head offices
located outside India.
as follows:
“Every foreign company shall, in every calendar
year,— (a) make out a balance sheet and profit
and loss account in such form, containing such
particulars and including or having annexed or
attached thereto such documents as may be
prescribed; and (b) deliver a copy of those
documents to the Registrar:
Provided that the Central Government may, by
notification, direct that, in the case of any
foreign company or class of foreign companies,
the requirements of clause (a) shall not apply, or
shall apply subject to such exceptions and
modifications as may be specified in that
notification”
• In line with the suggestions given by the MoCA,
exemption can be considered on the import of
services by an establishment of a foreign
airlines company from a related person or any
of its establishment outside India in relation to
furtherance of business provided that the GST at
applicable rates has been paid by the
establishment of the foreign airline company in
India on transport of goods and passengers as
may be applicable.
• After deliberations, Fitment Committee
recommended to exempt import of services
by an establishment of a foreign airlines
company from a related person or any of its
establishment outside India, when made
without consideration and to regularise the
past period on as is where is basis. Proposed
formulation is attached at Annexure-II.
Page 302 of 463

Annexure I

Chapter,
Heading
Description of services Rate (%) Condition
Chapter 99 Supply of services,
covered under Entry no. 4
of Schedule I of the Act,
by a related party or its
establishment, outside
India, to its establishment
in India, being an
establishment of a foreign
company which is an
airlines company covered
under the notification
issued under sub-section
(1) of section 381 of the
Companies Act, 2013 (18
0f 2013)
Nil Provided that the establishment of
the foreign company in India is that
of a designated air carrier/airline
company which has been designated
by the foreign government under the
applicable bilateral air services
agreement with India.
Provided further that, on a reciprocal
basis, designated Indian carriers are
not subject to levy of taxes for the
same services appearing under the
entry, by the Government of the
country designating the foreign air
carrier/airline company.


Annexure II

Chapter,
Heading
Description of services Rate (%) Condition
Chapter 99 Import of services by an
establishment of a foreign
company, which is an airlines
company, from a related person
or from any of its other
establishments outside India.
Nil Provided that GST at applicable rates
is paid by the establishment of the
foreign airline company in India on
transport of goods and passengers as
may be applicable.
Provided further that the establishment
Page 303 of 463

Explanation: Foreign company
shall have the same meaning as
assigned to it in sub-section (42)
of section 2 of Companies Act,
2013 (18 of 2013).

of the foreign company in India is that
of a designated air carrier/airline
company which has been designated
by the foreign government under the
applicable bilateral air services
agreement with India.
Provided further that, on a reciprocal
basis, designated Indian carriers are
not subject to levy of taxes for the
same services appearing under the
entry, by the Government of the
country designating the foreign air
carrier/airline company.

Page 304 of 463
(d). Issues where no change has been proposed by the Fitment Committee in relation to services
Annexure-V
Sl.
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and its recommendations
1. Horticulture services
supporting the environmental
causes, should be fully
exempted from GST instead
of 25% due to their potential
role in improving air quality.

• AQI in Delhi went upto 900
in the month of November,
2023. Exemptions or
incentives for services that
contribute positively to
environmental and public
health goals such as
horticulture and urban
forestry should be provided.
• Horticulture and urban
forestry is related to each
other and they both
contribute oxygen which is
very important for human
life.
• Maintenance of community
assets, urban forestry,
protection of the
environment and promotion
of ecological aspects are
functions entrusted to
Panchayats and
Municipalities under
Article 243G and 243W
read with Sl. No. 29 of 11th
schedule and Sl. No. 8 of
12th schedule of the
Constitution.

• Sl. No. 3 and 3A of notification
No. 12/2017-CT(R) dated
28.06.2017 exempts pure services
and composite supply of goods
and services in which value of
goods does not constitute more
than 25%, respectively that are
provided to the Central
Government, State Government
or Union Territory or local
authority by way of any activity
in relation to any function
entrusted to a Panchayat under
article 243G of the Constitution
or in relation to any function
entrusted to a Municipality under
article 243W of the Constitution.
• The request to clarify the
applicability of GST on the
horticulture contracts of public
works department was placed
before the 52nd GST Council
meeting held in October, 2023.
• Based on the recommendations of
the 52nd GST Council, it was
clarified by Circular No.
206/18/2023-GST dated
31.10.2023 that supply of pure
services and composite supplies
by way of
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horticulture/horticulture works
(where the value of goods
constitutes not more than 25 per
cent of the total value of supply)
made to CPWD are eligible for
exemption from GST under Sl.
No. 3 and 3A of notification No.
12/2017-CTR dated 28.06.2017.
• The current request is to fully
exempt composite supplies to
CPWD by way of
horticulture/horticulture works
even where the value of goods
constitutes more than 25 per cent
of the total value of supply.
• The instant request would entail
deepening of the existing
exemption.
• Fitment Committee has
recommended that the request
may not be accepted.
2 To reconsider 5% GST
applicable on all bus
bookings through e-
commerce platforms.


• Entry at Sl. Nos. 15(b) and
15(c) of notification No.
12/2017-CT(R) dated
28.06.2017 exempt
passenger transportation
services by non–air
conditioned contract
carriage and stage carriage
(i.e., buses) from GST.
• However, w.e.f
01.01.2022, 5% GST is
applicable on all bus
• Passenger transportation services
supplied by non-AC contract/
stage carriage are exempt from
GST.
• Based on the recommendations
of the 45th GST Council meeting
held on 17.09.2021, w.e.f.
01.01.2022, e-commerce
operators were made liable to
pay GST on passenger
transportation services supplied
through them using any motor
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bookings through e-
commerce platforms.
• Thus, 5% GST is
applicable only on online
booking done through e-
commerce platforms and
not applicable if the same
booking is made
physically in cash at bus
counter or if booking is
made directly from the bus
operators’ website.
• This is creating a
disadvantage for bus
operators providing
services through e-
commerce platforms.
• To remove distortion in
bookings done through
offline vs online channels
and to ensure a level
playing field to small
service providers who use
e-commerce platforms for
getting market visibility,
the application of 5% GST
on online bus bookings
may be reconsidered.
vehicle including buses and
further the exemption on
passenger transportation services
by non AC contract/stage
carriages (which includes buses)
supplied through ECOs was also
withdrawn w.e.f 01.01.2022.
• Supply of any service through
electronic commerce platforms is
a distinct category of supply as
compared to the service being
supplied by individual service
providers.
• There appears to be no
justification to reconsider the 5%
GST applicable on all bus
bookings through e-commerce
platforms.
• Fitment Committee has
recommended that the request
may not be accepted.
3. To include “any body
corporate” or “corporation”
established under any State
Act or Central Act or a
“Government company” for
purpose of exclusion under
• Pursuant to 52nd GST
Council meeting held on
07.10.2023, bus operators
organized as companies
have been removed from
• Based on the recommendations
of the 52nd GST Council,
notification No.17/2017-CTR
dated 28.06.2017 has been
amended to exclude bus
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Section 9(5) of CGST Act,
2017.


the purview of Section
9(5) of CGST Act, 2017 so
as to enable them to pay
GST on their supplies
using their ITC.
• However, the term
‘company’ has not been
defined under CGST Act.
It is not very clear whether
bus transport services
provided by State
Transport Corporation
through ECOs will be
covered by this exclusion.
• The definition of company
may include “any body
corporate” or
“corporation” established
under any State Act or
Central Act or a
“Government company” as
defined in clause (45) of
section 2 of Companies
Act, 2013 for purpose of
exclusion under Section
9(5) of CGST Act, 2017.
operators organized as
companies from the purview of
section 9(5) of CGST Act, 2017
in order to enable them to utilize
ITC for discharging outward
liability on passenger transport
services provided by them
through ECOs.
• The request will lead to
expansion of scope of exclusion
under section 9(5) to any body
corporate.
• Fitment Committee has
recommended that the request
may not be accepted.
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4. (i)To clarify that the delivery
services provided by the
delivery partners through
Electronic Commerce
Operator (ECO) are not
taxable due to providers
being below the threshold of
Rs. 20 lakhs.
OR
(ii) Bring delivery services
made in respect of those
supplies made through ECOs
under section 9(5) of CGST
Act, 2017 with prospective
effect and these delivery
services may be taxed at 5%.


• Restaurant services
provided through ECO
were brought under section
9(5) of CGST Act and 5(5)
of IGST Act w.e.f January
01, 2022. However, such
ECOs also enable
provision of delivery
services by registered as
well as unregistered
service providers.
• Where the delivery service
providers are registered, in
terms of section 52 of the
CGST Act, ECOs comply
with TCS at 1%.
However, notification No.
65/2017 -CT exempts
unregistered service
providers from TCS where
the aggregate turnover
does not exceed INR 20
lakhs.
• In some cases, in spite of
independent delivery
contracts with the
customers, tax authorities
are taking a view that it is
not the delivery service
providers (who though are
rendering services in their
own capacity), but the
ECOs who are deemed to
be rendering delivery
• The issue of bringing restaurant
service and delivery service under
section 9(5) of CGST Act, 2017
was taken to the 45th GST
Council meeting held on
17.09.2021.
• Restaurant service was notified
under section 9(5) consequent to
the recommendations of the 45th
GST Council.
• While the onus for pick-up and
delivery is placed on the Platform
Delivery Partner (PDP) from
merchant to the end customer, the
payment is not done on a one to
one basis to the PDPs by ECOs.
The payout to PDP is based on a
pay-out scheme which is designed
by the ECO and it takes into
consideration the number of
deliveries undertaken and distance
covered by PDP.
• Further the PDP has option to
deny/cancel the order but for such
acts, PDP becomes liable for
penalty and all the penal
provisions are drafted and
controlled exclusively by the
ECO.
• It has also been seen that the
ECOs offer certain membership
services which gives their
customers certain benefits for
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services and alleging non-
payment of GST at the rate
of 18% on the delivery
service fee charged from
end customers.
• Restaurant services are
subjected to 5% GST and
approach of taxing
delivery charges itself is
incorrect, seeking 18% of
restaurant services (i.e.,
food) is against the policy
decision on rate of GST on
food. This is
counterproductive to the
ECOs who enable small
delivery service providers
to be onboarded and earn
their livelihoods. This
interpretation is revenue
driven and does not follow
the contracting framework.
• In the GST minutes of 45th
GST Council meeting, this
issue was discussed and an
option to enable 9(5) for
delivery services was
deliberated. Relevant
extract of the minutes is as
under:
“22. It may also be
noted that currently
aggregators are not
paying any GST on
instance wavier of the delivery
fees. These free delivery services
are offered by the ECOs and not
PDPs.
• Also, the end customers do not
have the choice of selecting the
delivery partners.
• Therefore, ECOs are themselves
delivery service providers and
liable to pay GST at the rate of 18
per cent on the same. PDPs, under
no circumstance, could have been
held to be the suppliers of the
delivery service.
• Fitment Committee
recommended that both the
requests do not merit
consideration and may not be
accepted.
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delivery services
stating that their
delivery partners
(mostly unregistered)
are giving directly to
their customers. The
assumption is that
since most of the
electric partners will
individually be less
than Rs. 20 lacs
therefore, there is no
need of registration
for them. It may be
noted that the end
customer does not
have a choice of
choosing the delivery
partner, further, there
is no invoice raised by
the independent
delivery partner to the
end customer. The
invoice, payment,
refund and the entire
lifecycle of the
transaction is
managed by E-Cos
such as Swiggy and
Zomato. Therefore, it
is recommended that
the E-Cos may also be
made aggregators for
such delivery
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services.”
• However, no decision on
same was taken in the
council.
5. To issue circular clarifying
that prior to 01.10.2021, GST
@5% paid on job work
activities qua alcoholic
beverages be treated as fully
GST paid and no recovery of
differential tax, over and
above 5%, should arise.

• The issue of taxability of
subject services was
addressed in the 45th GST
Council meeting. The GST
rate on services by way of
job work in relation to
manufacture of alcoholic
liquor for human
consumption was
explicitly introduced vide
• Based on the recommendations
of the 45th GST Council meeting
dated 17th September 2021, a
new entry at Sl. No. 26 (ica) was
inserted in the notification
No.11/2017-CT(R) dated
28.06.2017 vide which services
by way of job work in relation to
manufacture of alcoholic liquor
for human consumption were
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notification No. 06/2021-
CT(R) with effect from
01.10.2021.
• Prior to 01.10.2021, more
than one-third of the
industry members were
under the belief that
alcoholic beverages are
‘food’ and accordingly job
services qua the said
alcoholic beverages are
exigible to GST @5%.
• Considering that the GST
is consumption based tax,
any attempt to levy 18%
GST on subject services
for period prior to
01.10.2021 will have
serious financial
ramifications on industry
members.

taxed at 18% GST.
• Further, vide Circular No.
164/20/2021-GST dated
06.10.2021, it was clarified that
the expression “food and food
products” in the said entry
excludes alcoholic beverages for
human consumption. As such, in
common parlance also alcoholic
liquor is not considered as food.
Accordingly, services by way of
job work in relation to
manufacture of alcoholic liquor
for human consumption are not
eligible for the GST rate of 5%
prescribed under the said entry.
GST Council recommended that
such job work would attract GST
at the rate of 18%.
• Thus, with effect from
01.10.2021, an explicit entry
26(ica) in notification No.
11/2017-CT(R) dated
28.06.2017 prescribing 18%
GST has been created for
services by way of job work in
relation to manufacture of
alcoholic liquor for human
consumption.
• Entry at Sl. No. 26(i)(f) of
notification No. 11/2017-CT(R)
dated 28.06.2017 prescribing
GST of 5% on job work services
in relation to all food and food
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products falling under Chapters
1 to 22 in the First Schedule to
the Customs Tariff Act, 1975
was introduced vide notification
No. 31/2017-CT(R) dated
13.10.2017. There appeared to
be no confusion over the scope
of entry for this period
(01.07.2017 to 12.10.2017).
During this period, job work
services supplied by contract
manufacturers to brand owners
for manufacture of alcoholic
liquor for human consumption
attracted GST at the rate of 18%.
• Fitment Committee has
recommended that the request
may not be accepted as there is
no ambiguity in the provisions
of the law related to the
taxability of job work activities
qua alcoholic beverages.
6. Request for exemption from
18% GST on Health
Insurance premium for
Persons with Mental Illness
(PMI) which is a scheduled
Disability under the Rights of
Persons with Disabilities Act
2016 (RPWD Act).


• MI or Mental Illness is a
scheduled disability under
RPWD Act 2016. Hence,
person with MI is a
Divyangjan vide RPWD
Act 2016.
• The Mental Health Care
Act 2017 has come into
force w.e.f. 29.05.18.
Sec21(4) of the Act
mandates insurance
companies to provide
• At present, GST on health
insurance services is levied at
standard rate, i.e., 18 per cent.
However, certain insurance
schemes catering to poor sections
of the society and differently
abled, such as Rashtriya
Swasthya Bima Yojana (RSBY),
Universal Health Insurance
Scheme, Jan Argoya Bima Policy
and Niramaya Health Insurance
Scheme are exempt from GST
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medical insurance for
persons with MI (PMI) at
par with person suffering
from physical illnesses.
• The current GST on health
insurance/Mediclaim
policy for PMIs is 18%.
Premium along with 18%
GST is not affordable by
many even in the middle
class.
• Mental illness is not
curable but only
manageable with regular
medication; therapy etc.
Occasional hospitalisation,
psychotherapy and rehab
facilities incur additional
expenses for the family of
the PMI not to speak of
savings for future care.
• For nearly 80% of PMI, the
illness is ongoing along
with disability deficits
resulting in low or nil
employability in regular
jobs. In fact, MI being an
illness of the youth, drop
outs at High School, PU
and College levels are very
high.
• In other words, lack of
qualifications, skills etc.
renders them unfit for
(Sl. No. 35 of notification No.
12/2017-CTR dated 28.06.2017).
• The objective of ‘Niramaya’
Health Insurance Scheme is to
provide affordable Health
Insurance to persons with
Autism, Cerebral Palsy, Mental
Retardation and Multiple
Disabilities and is fully exempt
from GST.
• The specific request to exempt
GST on insurance for persons
with Mental illness was deferred
in the 37th meeting of GST
Council.
• The specific issue of reduction of
GST on health insurance from
18% to 5% was discussed in the
37th GST Council and 47th GST
Council meetings held on
20.09.2019 and in June 2022
respectively and on both the
occasions it was not
recommended by the GST
council.
• Fitment Committee has
recommended that the request
may not be accepted.
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regular employment. Even
in the few cases where they
are employed, consistency
in holding a job depends on
the illness profile and
degree of disability of the
PMI.
• In many families, one
earning member drops out
of job to take care of the
PMI. This becomes an
added feature of the reality
of Mental illness (MI)
especially among middle
class and tax payers’
families. Economic burden
in addition to emotional
challenges takes a heavy
toll on the Divyangjan and
his/her family.
• Based on multiple factors
mentioned above, although
the right to insurance parity
is granted by the Mental
Health Act Care 2017, it
has become unaffordable to
pay premium + GST 18%.
7. Law Committee has referred
the following four matters to
Fitment Committee:

(a) To prescribe End-use
certification system / form for
• Vide entry at Sl. No.3 and
3A of the notification
number 12/2017-CT
(Rate), “pure services” and
composite supply of
services provided to the
Government or Local
• Currently, pure services and
composite supply of services
provided to Government or Local
Authority by way of any activity
in relation to any function
entrusted to a Panchayat under
Article 243G of the Constitution
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notification No. 12/2017-CT
(Rate) [entry no. 3], which
exempts pure services
provided to Government,
Local Authority in relation to
Municipality functions.


Authority by way of any
activity in relation to any
function entrusted to a
Panchayat under Article
243G of the Constitution or
to a Municipality under
Article 243W of the
Constitution are exempt
from levy of GST.
• Law Committee has
recommended that the
expression “in relation to”
has a wide meaning and
therefore the exemption
appears to cover all
services such as
advertisement in the print
media for floating a tender
for laying water pipeline,
contract for counting the
number of trees, survey of
number of people living
below the poverty line,
services by consulting
engineers, project
management consultants
for mono-rails, metro rails,
roads etc.
• As the suppliers of services
to the Panchayat or
Municipality are not in a
position to know whether
the services supplied are
really in relation to a
or to a Municipality under Article
243W of the Constitution are
exempt from levy of GST vide
entry at Sl. No.3 and 3A of the
notification number 12/2017-CT
(Rate).
• The above referred issues were
originally placed before the 43rd
GST Council meeting and
deferred. In the 45th Meeting,
these issues were tagged with
another proposal regarding
clarification of the scope of the
words “in relation to”.
• The issue was thereafter
discussed in 47th and 50th
meeting wherein a proposal to
prune the list of exemptions
under S.No 3 and 3 A were
discussed. In the 52nd GST
Council meeting held on
07.10.2023, the Council has
recommended to retain the
entries at Sl. No 3 & 3A of
12/2017-CT(R) dated 28.06.2017
as it exists with no change.
• Fitment Committee
recommended that no further
clarifications are required on
this issue and hence the
requests may not be accepted.
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function entrusted to a
Panchayat or Municipality,
some sort of end-use
certification system / form
be devised which will be
issued by the Panchayat /
Municipality inter-alia
declaring that the services
supplied to them are in
relation to a function
entrusted under the
Constitution as referred to
above.
(b) Request to clarify that the
service of hiring manpower
for providing services of
Health, Public Garden,
Promotion of education etc.
are the functions entrusted to
Municipality under Article
243W of the Constitution
• Pure services and
composite supply of
services and goods
provided to the
Government or Local
Authority by way of any
activity in relation to any
function entrusted to a
Panchayat under Article
243G of the Constitution or
to a Municipality under
Article 243W of the
Constitution are exempt
from levy of GST.
• ‘Cantonment Board’ is a
local municipal authority,
defined under Section
10(2) of the Cantonment
Act, 2006. They hire
various manpower for
providing various services
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in relation to functions
entrusted to Municipality
under Article 243W of the
Constitution such as they
hire contractual Doctors,
lab attendants, pharmacists,
staff nurses etc. for
providing health services;
mali, chowkidars for
providing public gardens;
contractual teachers,
safaiwala etc. for
promoting education;
electrician, helpers etc. for
providing street lighting.
• All these functions are
delegated to municipality
and the services of
manpower is received to
fulfill these functions by
the Cantonment.
(c) To clarify that the service
of “Enumeration &
Supervision” provided by the
implementing agency, i.e.
CSC-SPV, to MoSPI is
exempt from GST under
exemption entry 3 of
notification No. 12/2017-
CT(R) dated 28.06.2017.
• The Ministry of Statistics
and Programme
Implementation (MoSPI)
has engaged the CSC e-
Governance Services India
Ltd, a Special Purpose
Vehicle (hereinafter
referred as CSC-SPV) of
the Ministry of Electronics
and Information
Technology, as
implementing agency for
the conduct of 7th
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Economic Census (EC).
• Economic Census is a
periodic exercise
undertaken to measure the
spread and penetration of
the economic activities
across the country through
door to door survey in
prescribed questionnaire
form.
• The activities to be carried
out by the implementing
agency along with
approved cost for each of
the components are as
under:
• Enumeration &
Supervision (through
door to door visit
throughout country).
• Training and
assessment of the
Enumerators &
Supervisors engaged
in field work of EC.
• Deployment of
manpower to assist
MoSPI and State/UT
Governments in 7th
EC activities.
• Helpdesk and Call-
centre support.
• Awareness and
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sensitization.
• Project Management
Charges (@ 8% of
project cost).
• With respect to tax liability
admissible on the
aforementioned
components, the
implementing agency has
informed that the collection
of data and supervision
component is not liable to
draw tax under GST as per
notification No.12/2017-
Central Tax (Rate) New
Delhi dated 28th June,
2017 (Sl. No. 3).
(d) To clarify that the
services of spatial planning
study, provided by the
institutes to Ministry of
Panchayati Raj is exempt
from GST under exemption
entry at Sl. No. 3 of
notification No. 12/2017-
CT(R) dated 28.06.2017.
• The Ministry of Panchayati
Raj, in collaboration with
16 architectures as well as
engineering institutes has
taken up the initiative for
Gram Panchayat Spatial
Development Planning on
pilot basis.
• The proposed study seeks
to set out a framework as to
how a particular area in the
panchayat can be
developed taking into
account available
resources. It seeks to
promote decentralized
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planning with
strengthening of local
identity to create a
framework for future
policy decisions.
• As the ongoing spatial
planning study seeks to
enable panchayats to
function as institutions of
self-government in
accordance with Article
243G of the Constitution.
8. To clarify about liability of
GST on Man Power Supply
Services received by
Panchayats, Municipalities
and Local Bodies.



• Notification No. 12/2017
Central Tax-Rate dated:
28-06-2017 exempts
certain services from the
levy of central tax and
similar notifications are
issued by the state.
• In this regard, any pure
service related to those
functions entrusted to a
panchayat under Article
243 G of Constitution and
those entrusted to
Municipality under Article
243-W of Constitution are
exempted.
• Many of Panchayats,
Municipalities and Local
Bodies are Obtaining
Manpower like Computer
Operators and office
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Personnel who are not
directly related to service
are received by these
bodies.
• Such services has held not
to be directly related to the
functions entrusted to
Panchayat under Article
243 G of Constitution and
those entrusted to
Municipality under Article
243-W of Constitution and
hence tax was collected
from such local bodies and
Government Departments
by the Contractors.
• In view of the above a
clarification may be issued
on the scope of the words
“in relation to” in the
interest of uniformity
across the country.
9. A Writ Petition Nos. (C)
2036/2019 [CMA No.
9509/2019 and 14982/2019]
before Hon’ble Delhi High
Court has been filed by an
Association of Private
Security Industry wherein
they have inter-alia contested
the exclusion of body
corporates from making
payment under Reverse
Charge Mechanism (RCM) in
• Grounds on which the
instant writ petition has
been filed are as below:
o The notification lacks
intelligible differentia or
does not have reasonable
nexus with the object
sought to be achieved
with respect to the
category of the supply of
security services and
therefore, by excluding
• The issue of levying GST on
security services under reverse
charge mechanism was placed
before the 31st GST Council
meeting held on 22.12.2018.
• Based on the recommendations
of 31st GST council, entry at Sl.
No. 14 was inserted in the
notification No. 13/2017-CT(R)
wherein security services
(provided by way of supply of
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respect of security services.
(Entry at Sl. No. 14 of the
notification No. 13/2017-CT
(R).


body corporates from its
ambit, violates Article 14
of the Constitution.
o Impugned notification
is arbitrary, artificial and
evasive as the CGST Act
itself does not classify
‘person’ and ‘body
corporate’ separately.
o Impugned notification
is inherently flawed and
in conflict with the
definition of person as
defined in the CGST Act,
2017.
o Impugned notification
is discriminatory as it
confers particular
privilege of applicability
of the RCM upon a class
of persons arbitrarily
selected from a large
number of persons and
that those who seek the
benefit of the notification
are not substantially
different in any justifiable
manner.
o It is against the
executive policy outlined
in the 31st GST Council,
whereby it was decided
that entire security
services provided to
security personnel) provided by
any person other than a body
corporate were brought under
RCM when provided to a
registered person except
government departments
registered for TDS and entities
registered under composition
scheme services.
• The above said
recommendations were made as
nearly 60 per cent of the security
service providers operated in un-
organized manner, thereby
making it more evasion prone
and difficult to monitor
compliance.
• The Association of Private
Security Industry had
represented after the decision
taken in the 31st GST Council
meeting to bring the entire
security services sector including
body corporate under RCM and
the matter was taken to the 32nd
Meeting of the GST Council on
10th January 2019.
• The request of the association to
include security services
provided by the body corporates
under RCM in the said entry was
not accepted by the 32nd GST
Council.
• Body corporates are a different
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registered persons except
certain government
departments would be put
under RCM.
o Companies providing
security services are
generally MSMEs or start
ups which require cash
flow to sustain
themselves. GST @ 18%
is required to be paid
every 20th of the month
and therefore, it is
affecting their cash flow
leading to closure of
business.
o The grievance is that
while allowing for
payment of GST based on
reverse-charge
mechanism, body
corporates have been
excluded. This
amendment has not taken
into account the
circumstances of smaller
body corporates, which
are closely held entities.
• However, department has
argued that it is a policy
decision and that it is for
the GST Council to decide,
after taking into account
various facets, as to who
class of supplier and are not
same as the small businesses
such as proprietorship concern
etc. Thus, the benefit of RCM
under the said entry was not
extended to them.
• Fitment Committee has
recommended that the request
may not be accepted.
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has to be excluded from the
regime of reverse-charge
mechanism.
• Hon’ble Delhi High Court
directed to treat writ
petition as a representation
and take appropriate action
as deemed fit.
10. To exempt GST on the
services provided by Goethe
Institutes/Max Mueller
Bhavans, funded by the
German Federal Foreign
Office, in India for the period
from 01.07.2017 to
31.03.2023.


• Goethe Institutes/Max
Mueller Bhawan have
been registered under GST
at Delhi, Mumbai,
Chennai, Bangalore,
Kolkata and Pune. From
1st April, 2023, the Goethe
Institutes have started
collecting and paying
GST.
• Prior to 1st April, 2023, the
Institutes did not collect
GST from their students
nor did they remit the
same to Government as
they were under the belief
that their activities are
exempt from GST.
• They have requested that
no proceedings may be
initiated against them for
past period i.e., upto 31st
March, 2023 and GST on
services provided by them
may be exempted for the
• Entry at Sl. No. 66 of
notification No. 12/2017-CTR
exempts services provided by an
educational institution to its
students, faculty and staff.
• Educational institution has been
defined as an institution
providing services by way of, -
o Pre-school education and
education up to higher
secondary school or
equivalent;
o Education as a part of a
curriculum for obtaining a
qualification recognized by
any law for the time being in
force;
o Education as a part of an
approved vocational
educational course.
• The services provided by Goethe
Institutes are thus not eligible for
exemption under entry at Sl. No.
66 of notification No. 12/2017-
CTR dated 28.06.2017.
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period from 01.07.2017 to
31.03.2023.
• The six institutes across
India provide linguistic
and cultural training to
young Indians preparing
for their stay in Germany.
• The Goethe Institutes have
already started paying
GST on their services after
1st April, 2023.
• They have requested for
exemption from GST on
services provided by them
during the period
01.07.2017 to 31.03.2023.
• As Goethe Institutes cannot be
categorized as educational
institutions under provisions of
GST , the services provided by
them attract GST at 18%.
• Goethe Institutes have already
started paying GST on their
services after 1st April, 2023.
• Fitment Committee
recommended that the request
may not be accepted.
11. Request to exclude the
Legislative Area
Development Fund from the
ambit of GST.





• Currently under the
Legislative Area
Development Fund
Scheme, rate of GST is
generally charged by the
executing agency at the
rate of 18%.
• Thus, an amount of
approximately Rs. 1.00
crore goes towards GST
liability and an average
amount of Rs. 4.00 crore is
left for each member for
the development work of
the area.
• By excluding GST under
the Legislative Area
• Members of Legislative
Assembly Local Area
Development (MLA-LAD)
Scheme is the States’ version of a
Central Government scheme -
Members of Parliament Local
Area Development Scheme
(MPLAD).
• The objective of this scheme is to
create local need based
infrastructure, to create assets of
public utility and to remove
regional imbalances in
development.
• MLAs do not receive any
money under this scheme. The
government transfers it directly
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Development Fund
Scheme, development
work worth approximately
Rs 1.00 crore can be done
by the Hon’ble Legislative
Assembly/ Legislative
Council member in his/her
constituency area, so that
the common people of
his/her area can get the
benefit of additional
development work.
to the respective local authorities.
• The legislators can only
recommend works in their
constituencies based on a set of
guidelines. Amounts per MLA
varies across the states.
• The guidelines for use of MLA-
LAD funds differ across states.
For example, Delhi MLAs can
recommend the operation of
fogging machines (to contain
dengue mosquitoes), installation
of CCTV cameras etc.
• After the legislators give the list
of developmental works, they are
executed by the district authorities
as per the government's financial,
technical and administrative rules.
• MLALAD funds have its own set
of guidelines but the projects
funded by them are usually
restricted to “durable
infrastructure work”, from
repairing roads to building
community centres.
• A similar request regarding GST
exemption for works carried out
under MPLAD funds was placed
before the 47th GST Council in its
meeting held on 28th-29th June,
2022. However, the council did
not accede to the request.
• Exemptions provided under
entries at Sl. No.3/3A of
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notification 12/2017-CT(R) dated
28.06.2017 cover wide range of
supplies which may be received
by local authorities.
• Further, end use-based
exemptions are not advisable.
They are difficult to monitor and
prone to misuse. Exemption will
block ITC of suppliers and
increase cost.
• Fitment Committee has
recommended that the request
may not be accepted.
12. On helicopters uniform rate
of 5% GST should be
charged on purchases charter,
sale of seat tickets and all
services rendered by
helicopters including rental
paid for hangarage.


• The request was examined in the
47th GST Council meeting held
in June, 2022. The Council did
not accede to the request.
• Services by way of transport of
passengers on seat share basis
and that by way of chartering the
entire helicopter to a person
cannot be equated. The latter is
usually consumed by the affluent
and not by the common man.
• In Service Tax regime too,
chartering of helicopter attracted
service tax at the standard rate of
15%.
• Currently, GST rate on rental
paid for hangarage is 18%.
• Service of renting of hangarage
may be used either by helicopter
operators or MROs. In case the
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service is used by helicopter
operators providing goods or
passenger transport services or
charter services, the ITC of GST
paid on hangarage rentals is
available to the helicopter
operators for discharge of output
tax liability and does not become
a cost for them.
• In case the hangarage rental
services are being used by
MROs, which attracts GST at the
rate of 5%, the MROs are
entitled to take ITC of services
used by them for supplying the
MRO services. GST paid on
input goods and services by
MRO is available to them as ITC
and does not become a cost for
them.
• Fitment Committee has
recommended that the request
may not be accepted.
13. Rationalize GST on cargo
services from 18% to 5% to
bring it in line with other
services.


• Request to reduce GST rate on
air cargo services from 18% to
12% was examined in the 47th
GST Council meeting held in
June, 2022 and the Council did
not accede to the request.
• Transport of Goods by Air
attracts GST at the rate of 18%
with full ITC. Prescribing a
lower rate with restricted ITC
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will lead to distortion in tax
structure and blocking the ITC
chain resulting in increased cost
of operations for airlines.
• The business recipients of goods
transportation services are
entitled to ITC and therefore it is
a pass-through tax.
• Fitment Committee has
recommended that the request
may not be accepted.
14. To clarify whether ITC of
other business verticals can
be used to discharge GST on
outward liability in respect of
restaurant service given the
restriction of input tax credit
as specified in notification
No. 11/2017-CT (Rate) dated
28.06.2017, as amended,
against entry at Sl. No. 7 & in
8, 9, 10, 23, 25, 31A.


• During the period from
01.07.2017 to 14.11.2017,
supply by way of or as part
of any service or in any other
manner whatsoever, of
goods, being food or any
other article for human
consumption or any drink,
where such supply of service
was for cash, deferred
payment or other valuable
consideration provided by a
restaurant attracted tax @
12%/18% with ITC.
• GST Council in its 23rd
Meeting dated 10.11.2017
held that “All stand-alone
restaurants irrespective of
being air conditioned or
otherwise, shall attract tax at
the rate of 5% without input
tax credit. Food parcels (or
• The agenda item has been
withdrawn by the sponsoring
state.
• No change recommended.
• Fitment Committee
recommended to withdraw the
agenda.
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takeaways) from restaurants
shall also attract tax at the
rate of 5% without input tax
credit.”
• Accordingly, it appears that,
while approving the rate of
tax of “5% without input
tax credit” for restaurants,
the intent of the Council was
to disallow payment of
output tax liability with any
ITC whatsoever, whether in
respect of inward supplies
used in supplying the
restaurant services or other
business verticals under the
same GSTIN.
• Accordingly, changes were
made w.e.f. 15.11.2017 vide
notification No. 46/2017-CT
(Rate) dated 14.11.2017.
‘Restaurant Service’ was
later defined w.e.f.
01.10.2019 vide notification
No. 20/2019-CT (Rate) dated
30.09.2019. An Explanation
was also inserted in the
notification specifying that
the said rate of 5% is a
mandatory rate.
• Instances have been brought
to notice in this regard where
the output liabilities in
respect of restaurant service
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are being discharged by
utilizing ITC availed in
respect of other business
verticals under the same
GSTN. Restriction on
availing of ITC as imposed
by the aforesaid notifications
is applicable only in respect
of inward supplies used in
supplying the restaurant
services. Utilization of input
tax credit in respect of
inward supplies used in other
business verticals having
same GSTIN has not been
restricted for discharging
outward liability for
restaurant service.
• In Circular No. 167 / 23
/2021 – GST dated
17.12.2021 issued by the
CBIC in the context of
services supplied by
restaurants through e-
commerce operators,
clarifies that, on restaurant
service, ECO shall pay the
entire GST liability in cash
(No ITC could be utilised for
payment of GST on
restaurant service supplied
through ECO).”
15. Request to exempt GST on
services related to water
• The issue was deferred in the
37th GST Council held on
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harvest scheme.


20.09.2019.
• The sponsoring state has
informed that no such agenda
has been forwarded by them.
• Fitment Committee
recommended to withdraw the
agenda.


***
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(e). Issues deferred by the Fitment Committee for further examination in relation to services
Annexure-VI
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and its recommendations
1. To issue clarification
regarding tax liabilities
being demanded from
casinos and online
gaming industry for the
past period (i.e., for the
period from 2017-2023)
and to regularise the
GST paid on as is where
is basis for the period
01.07.2017 to
30.09.2023.

• The industry has represented that
majority of the tax liabilities
imposed on the industry are based
on difference in interpretation of
law by the industry and by the
government authorities.
• Group of Ministers on casinos, race
courses and online gaming was
established to look into the matter
of taxation of online games and
casinos and had a clear mandate in
the terms of reference to inter alia
“… examine the issue of valuation
of services provide by casinos, race
courses and online gaming portals
and taxability of certain
transactions in a casino, with
reference to the current legal
provisions and order of courts on
related matters”.
• The GoM submitted its report in
the 47th GST Council which
deliberated in detail on the issue of
redeployment in casinos and
concluded the following:
“taxing each round, once tax is
collected at entry on the purchase
of chips, is neither feasible nor
desirable. This will make the
casinos unviable. It was also felt
that the right to play with the
winnings of the previous games
was inherent in the rights acquired
by the players against the price
paid for the chips/tokens purchased
from the casinos”.
• Thereafter, 51st GST Council took
a decision that “the valuation of
supply of online gaming and
actionable claims in casinos may
• 50th GST Council meeting held in
July,2023 had recommended to clarify
that actionable claims supplied in
Casinos, Race Courses and Online
Gaming are also under the purview of
GST and are to be taxed at the rate of
28% on full face value irrespective of
whether the activities are games of
skill or chance.
• It was also recommended that the law
may be amended to provide clarity on
the matter.
• 51st GST Council meeting held in
August, 2023 recommended certain
amendments in the CGST Act 2017
and IGST Act 2017, including
amendment in Schedule III of CGST
Act, 2017, to provide clarity on the
taxation of supplies in casinos, horse
racing and online gaming.
• Further, regarding tax liability of the
past cases, the issue was discussed in
the 52nd GST Council meeting held on
07.10.2023. It was conveyed during
the meeting that the amendments
proposed are prospective and to come
into force with effect from 01.10.2023.
The notices issued by DGGI were for
the past period under the law as it
existed prior to the amendments and
that it is not a retrospective application
of the Council’s decisions in the 50th
and 51st meetings held on 11.07.2023
and 02.08.2023 respectively.
• The matter was discussed in the
Fitment Committee and it was
recommended to obtain data for
examination of the issue.
• Fitment Committee recommended to
defer the issue.
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be done based on the amount paid
or payable to or deposited with the
supplier, by or on behalf of the
player (excluding the amount
entered into games/bets out of
winnings of previous games/bets)
and not on the total value of each
bet placed. The Council
recommended that CGSST Rules,
2017 may be amended to insert
specific provisions for valuation of
supply of online gaming and supply
of actionable claims in casino
accordingly.”
• Media reports show that total tax
liabilities of Rs 1.5 lakh crores
have been cast on the online
gaming and casino industry
majorly on the grounds that the
business amounted to gambling,
betting and therefore, were
supposed to pay GST on the entire
face value of every bet from the
past period prior to the
amendments.
• Various operators have approached
the courts and there are ongoing
litigations on the subject across
various courts in the country.
• The tax liabilities on the casino
industry are more than 10 times
their annual revenues. It raises a
serious concern regarding
(a) On the ability of the
government to recover the tax
liability
(b) The ability of the industry to
pay the tax liability.
• Goan economy is dependent on the
casino industry to promote tourism
and this retrospective taxation will
irrevocably damage the Goan
economy. Further, all the states
will be impacted due to loss of
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potential revenue expected from
legitimate online gaming industry,
i.e., the permissible online real
money games.
• It has been requested that the GST
Council may provide a solution to
resolve the issue by creating a
framework for issuing clarification
for past period as deemed
appropriate, prior to these
amendments.
2. To clarify the nature
and taxability of various
supplies in relation to
the crypto eco-system.
• Issue was deferred by the 52nd GST
Council held on 07.10.2023.
• TRU is to undertake study and submit
a paper after obtaining expert opinion
from IIT. Accordingly, IIT is being
consulted.
• Fitment Committee recommended
to defer the issue.
3. To clarify whether GST
is applicable on charges/
fees like FSI paid by
builders to local
authorities under
Reverse Charge
Mechanism (RCM).



• In construction industry, all
builders & developers pay various
charges to local/ municipal
authorities in the form of FSI
premium, road permission charges,
scrutiny fees, liasoning fees,
staircase premium, water charges,
sewerage charges etc.
• Some of the taxpayers have
contended that the said services are
exempt under notification No.
12/2017-CT(R) dated 28.06.2017.
• Floor Space Index (FSI) is defined
as the maximum permitted floor
area that a developer can build or
construct on any given plot or piece
of land area. In other words, it is a
measure of the intensity of land
utilization in a given area.
• As per the information received,
Rajkot Municipal Corporation has
granted FSI of Rs. 543.24 Cr since
inception of the GST Act. In a
small city like Rajkot, local
municipal corporation has
• Issue was deferred by the 52nd GST
Council held on 07.10.2023.
• Municipalities collect various charges
such as FSI premium, road permission
charges, scrutiny fees, liasioning fees,
staircase premium, lift NOC charges,
fire NOC charges, sewerage charges,
charges for change of land use etc for
different services supplied to
builders/developers.
• To understand the issue, data is being
collected and the same is awaited.
• Fitment Committee recommended
to defer the issue.
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collected a handsome amount
towards grant of FSI within span
of just six years. In the big metro
city like Ahmedabad, Surat and
Baroda, handsome amount is
being collected towards grant of
FSI.
• Promoters have viewed that
transactions may be considered as
neither a supply of goods nor a
supply of service due to following
reasons:
o As per the notification No.
14/2017-Central Tax (Rate),
activities or transactions
undertaken by any local authority
by way of any activity in relation
to a function entrusted to a
Municipality under article 243W
of the Constitution shall be treated
neither as a supply of goods nor a
supply of service.
o As per Article 243W, certain
responsibilities are conferred
upon them including those listed
in the XIIth Schedule. Sl. No. 1 &
2 of Schedule XII of the
Constitution of India deal with
"Urban planning including town
planning" and "Planning of land-
use and construction of buildings”
respectively. These functions are
entrusted to Municipality under
Article 243W of the Constitution.
o As per the representation, sale or
grant of FSI against collection of
fees is also part of the said two
functions only. Therefore, GST is
not payable on supply of FSI by
municipal corporation to the
registered person.
• However, tax authorities have
viewed that supply of FSI against
collection of fees is not integral part
of "town planning". Transaction of
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supply of FSI by the RMC to the
taxpayer is merely a commercial
activity. Performance or non-
performance of "town planning
work" has no nexus with activity
per se the supply of FSI, which is
entirely independent to each other.
Supply of FSI to the business entity
serves the only purpose of
generating revenue for local
authority.
• In the notification No. 14/2017 ST
(Rate), the phrase "Services by way
of any activity in relation to a
function entrusted to a Municipality
under article 243W of the
Constitution” does not mean
"Commercial activities under
consideration". Thus, the said
activity in form of the supply of FSI
against charging fees by RMC
being an independent taxable
supply of services, would not be
qualified for and could not be
treated as "No Supply of Services".
• Further, as per entry-16 (iii) in
notification No. 11/2017 state tax
(rate) read with entry-5 in
notification No. 13/2017 state tax
(rate), tax under RCM is payable by
the taxpayer as recipient of
services.
4. To clarify that as long
as transport of goods is
undertaken entirely by
road and the person
transporting the goods
issues consignment
note, the service would
be treated as Goods
Transport Agency
(GTA) service instead
of courier services.
• Tech enabled companies operating
in intra-city goods transport
segment provide goods
transportation service to customers
from one location to another via 2,
3 and 4 wheeler vehicles.
• Two wheelers are used for
movement of consignments
weighing upto 20kgs and light
commercial vehicles (3 and 4
wheelers) are used for movement of
goods from 20kgs to 2500kgs.
• Goods Transport Service by GTA
attracts GST at the rate of 5% without
ITC or 12% with ITC under forward
charge. Courier service attracts GST at
the rate of 18% with ITC.
• Fitment Committee recommended
to defer the issue for more
comprehensive examination.
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• The companies issue consignment
note and bill of supply to an
unregistered person and invoice to a
registered customer in respect of
each trip in compliance with
provisions of the CGST Act, 2017
for the goods transportation
services rendered as GTA.
• These companies are also
registered as common carrier under
the Carriage by Road Act.
• The companies do not give any
assurance/guarantee to customers
for time bound delivery of goods
but assumes liability to ensure safe
delivery of goods to consignee.
• In service tax period, it had been
clarified that so long as the entire
transportation of goods is by road
and the person transporting the
goods issues a consignment note,
the service would be classified as
GTA service. [Circular no.
104/04/2008-ST dated 06.08.2008
and Circular No. 186/5/2015-ST
dated 05.10.2015 refers].
• Similar clarification has been
requested in GST period.
5. To examine the
inclusion of services
under the notification
No. 17/2017-CTR dated
28.06.2017 under which
four services have been
notified on which GST
is paid by Electronic
Commerce Operator
under section 9(5) of
CGST Act, 2017.
• Fitment Committee recommended that
both Law Committee and Fitment
Committee to jointly examine the
issue.
• Fitment Committee recommended
to defer the issue.
6. To clarify whether all
the services provided by
an educational
institution to its
students, faculty and
• The educational institutions are
providing services to the students of
the educational institutions which
fall into the following three
categories-
• Fitment Committee examined the
issue and recommended that the issue
requires further detailed examination.
• Fitment Committee recommended
to defer the issue.
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staff, irrespective of the
SAC, are exempt from
levy of GST.



a) Tuition services where the
consideration is collected as
Tuition fees and is directly
linked to the educational
services
b) Services which are directly
linked to the admission of the
students without which the
students are ineligible to take
educational services like
Development fees (collected
for management seats), Sports
fees, Examination fees etc.
c) Services which are provided
by the educational institutions
which are optional for the
students.
• The first category of services are
exempt as per notification no.
12/2017 and there is no confusion
in it.
• The issue is whether the services
falling under the second and the
third category of services are
exempt or not.
• The notification no.12, in its
opening para does not make any
reference to the column no. 2 which
relates to the Service Accounting
Code but only to the description of
services in column no.3. Further,
the explanation clause in the said
notification clearly says that the
SAC is only indicative. This
principle is clearly referred to in
circular 177/09/2022-TRU dated 3rd
August 2022 wherein in the para
4.3, it is clearly stated-

“it can be seen that all services
supplied by an ‘educational
institution’ to its students are
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exempt from GST”

and goes on to say…

“The exemption is wide enough to
cover the amount or fee charged for
admission or entrance, or amount
charged for application fee for
entrance, or the fee charged from
prospective students for issuance of
eligibility certificate to them in the
process of their entrance/admission
to the educational institution.
Services supplied by an educational
institution by way of issuance of
migration certificate to the leaving
or ex-students are also covered by
the exemption.”
• The circular no. 85/04/2019-GST
also clearly states that supply of
food and beverages by an
educational institution to its
students are also exempt prior to
the amendment of entry serial no.
66.
• Hence, the trade has been
representing that all services
provided by educational institutions
to its students are exempt from tax
irrespective of SAC to which the
services belong.
7. Harmonisation of GST
Rate Schedule on
Services and the
Classification of
Services adopted for
GST
• The issue was deferred in the
52nd meeting of the GST Council
held on 07th Oct 2023.
• In GST, a Scheme of Classification
of services has been adopted. This
classification of services is a
modified version of UNCPC (UN
Central Product Classification of
Goods and Services). While
UNCPC has a 5-digit classification,
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the classification adopted for GST is
a 4-digit classification with digits 99
pre-fixed to indicate that these are
services.
• As per Notification No. 12/2017-
Central Tax dated 28.06.2017, as
amended by Notification No.
78/2020-Central Tax dated
15.10.2020, taxpayers having
turnover up to Rs. 5 Crore in the
previous financial year are required
to declare classification of services
at a 4-digit level and those having
turnover above Rs. 5 Crore at a 6-
digit level.
• However, currently the GST rate
schedule for services does not
mention the classification of
services at the 6-digit level.
• The GST rate schedule follows
classification of services only up to
4-digit level. Further sub-
categorization of services in the
GST rate schedule is at complete
divergence with the Classification of
Services adapted for GST.
• In the GST rate schedule, sub-
categorization of services beyond
the 4-digit level has been carried out
only for those services, on which a
rate lower or higher than the
standard rate of 18% was to be
prescribed. This sub-categorization
in the rate schedule has been done
on the basis of the description of
such services, without mentioning
the 6 digit-level classification, and
such sub-categories have been
numbered as (i), (ii), (iii) and so on
under each 4-digit heading.
Therefore, in effect, the GST rate
schedule operates at a 2 digit-level
of classification (the first two digits,
namely ‘99’ (only denoting that it is
Page 343 of 463
Sl.
No.
Proposal Detail of request Discussions in Fitment Committee
and its recommendations
a service) rendering impossible any
meaningful analysis of revenue
foregone, ITC availment etc.
• The taxpayers are required to
declare in the invoice/GST returns
not the Sl. No. of GST Rate
Schedule under which they have
paid GST but the 6-digit
classification of services in the
Scheme of Classification annexed to
the Rate Schedule. As a result, data
of services for which a concessional
rate of 5% or 12% or a higher rate of
28% has been notified is not
captured.
• A revised rate schedule of services
which is a synthesis of the current
rate schedule with the classification
of services was prepared with a view
to promote ease of doing business
and to ensure better collection of
data.
• It was recommended by the Fitment
Committee that the draft revised rate
schedule may be circulated to all
States with a request to give their
views. Inputs/feedback from
states/UTs of Kerala, Haryana,
Tripura, Punjab, Tamil Nadu and
New Delhi have been received and
suitably incorporated.
• It was further recommended by the
Fitment Committee that the draft
revised rate may be placed in the
public domain for stakeholder
consultation. Accordingly, the draft
revised rate schedule was placed on
the CBIC website and a copy was
also circulated to all CGST field
formations inviting their comments.
• The feedback received was
presented before the Fitment
Committee on 04.04.2024 and the
changes found suitable were
Page 344 of 463
Sl.
No.
Proposal Detail of request Discussions in Fitment Committee
and its recommendations
incorporated.
• It is proposed that the revised rate
schedule may be placed in the public
domain and shared with prominent
industry/tax
associations/professional bodies and
implemented after incorporating any
changes required therein in view of
the feedback received and after a
drop-down mechanism for selecting
6-digit classification of services is
made available on the GSTN portal.
• Fitment Committee recommended
to defer the issue.
8. To notify Delhi
Development Authority
(DDA) as a Local
Authority and to remove
the reference of DDA
from the answer to
question #5 of the
“FAQs on GST in
Government Services
Sector”
• As per section 2(1)(d) of National
Capital Territory of Delhi Laws
(Special Provisions) Act, 2011,
DDA is “a local authority”
established under the Delhi
Development Act 1957.
• As per Hon’ble Supreme Court
judgement dated 17.02.1981 in
Union of India & Ors. Vs.
R.C.Jain & Ors. (1981 AIR951),
DDA has been recognised as a
Local Authority.
• In arriving at this conclusion, the
Hon’ble Supreme Court has relied
upon section 3(31) of General
Clauses Act 1897 which defines a
local authority and “local
authority” shall mean a municipal
committee, district board, body of
port commissioners or other
authority legally entitled to or
entrusted by the Government with
the control or management of a
municipal or local fund.
• Section 2(69)(c) of CGST Act
2017 defines “local authority” as
a Municipal Committee, a Zilla
Parishad, a District Board, and
any other authority legally
entitled to, or entrusted by the
• Issue was deferred in the 52nd GST
Council meeting held on 07.10.2023.
• As per entry at Sl. No. 5 of
notification No. 13/2017-CTR,
services provided by local authority
to a business entity are taxable under
Reverse Charge Mechanism (RCM).
• Entry at Sl. No. 6 of notification No.
12/2017-CTR exempts services
provided by local authority to
individuals.
• DDA was inquired to inform
whether DDA is legally entitled to or
entrusted by the Government with
the control or management of
Municipal or Local Fund.
• For any authority to be treated as
“Local Authority” they must fulfill
the requirement of the definition of
Local Authority as per Section 2 (69)
of the CGST/SGST/UTGST Act.
Local authority under CGST Act,
2017 has been defined as
“2(69) ―local authority means––
(a) a ―Panchayat as defined in
clause (d) of article 243 of the
Constitution; (b) a
―Municipality as defined in
clause (e) of article 243P of the
Constitution; (c) a Municipal
Page 345 of 463
Sl.
No.
Proposal Detail of request Discussions in Fitment Committee
and its recommendations
Central Government or any State
Government with the control or
management of a municipal or
local fund.
• Thus, section 2(69)(c) of CGST
Act 2017 and section 3(31) of the
General Clauses Act,1897
appears to be identical.
Answer to question#5 of the
“FAQs on GST in Government
Services Sector” issued by CBIC
has listed DDA as not a local
authority.
Committee, a Zilla Parishad, a
District Board, and any other
authority legally entitled to, or
entrusted by the Central
Government or any State
Government with the control or
management of a municipal or
local fund; (d) a Cantonment
Board as defined in section 3 of
the Cantonments Act, 2006; (e) a
Regional Council or a District
Council constituted under the
Sixth Schedule to the
Constitution; (f) a Development
Board constituted under article
371[and article 371J] of the
Constitution; or (g) a Regional
Council constituted under article
371A of the Constitution;”
• Fitment Committee recommended
that Local fund may be defined.
Maharashtra and West Bengal were
requested to send draft formulation
on the same. However, reply is still
awaited from Maharashtra.
• Fitment Committee recommended
to defer the issue.

Page 346 of 463
Agenda Note
(f). Review of 51st GST Council meeting’s recommendation to amend GST laws to provide
clarity on the taxation of supplies in casinos, horse racing and online gaming
The GST Council in its 50th and 51st meetings held on 11.07.2023 and 02.08.2023, respectively,
has recommended the following in respect of taxation of supplies in casinos, horse racing and online
gaming:

(i) Actionable claims supplied by way of or in casinos, horse racing and online gaming will
continue to be taxed at the uniform rate of 28%.
(ii) Valuation of supply of actionable claims involved in online money gaming and actionable
claims in casinos may be done based on the amount paid or payable to or deposited with
the supplier (initial deposit), by or on behalf of the player (excluding the amount entered
into games/ bets out of winnings of previous games/ bets) and not on the total value of
each bet placed.
2. The changes recommended in the 51st Council meeting have been brought into effect from
01st October, 2023. During the discussion in the 51st GST Council meeting, the Hon’ble Union
Minister of Corporate Affairs & Finance and Chairperson GST Council stated that a review would be
conducted after six months of implementation of the aforesaid amendments and the statistics would be
reviewed.
3. Accordingly, the status of the amendments and the statistics are being placed before the GST
Council.
*****



Page 347 of 463
Agenda Item 5: Recommendations of the 21st meeting of the IT Grievance Redressal
Committee for approval/decision of the GST Council:
The 21st meeting of the IT Grievance Redressal Committee (ITGRC) was held on 01st August, 2024 at
11.00 AM in online mode to resolve the grievances of the taxpayers arising out of the technical
problems faced by them on the GSTN portal in relation to GST Compliance filings.
The agenda for the 21st ITGRC meeting covered the following issues:
1. Technical Issues requiring data fixes through back-end utilities
2. Any other agenda with the permission of the chair

2. Recommendations of ITGRC on Data Fix issues:
As per the SOP approved in the 45th GST Council meeting for technical issues requiring data fix of
the processed incorrect data through backend utilities, GSTN presented 32 issues which required data
fixes for the consideration of ITGRC during its 21st meeting.
2.1 ITGRC took note of the data fixes carried out by GSTN in 27 issues impacting 635 cases which
were technical issues with no financial implication where correct data was known (Category-1 of the
approved SOP).
2.1.1 In the cases mentioned above in Category-1 (Technical issues having no financial implications
where correct data is known), ITGRC recommended that:
(i) In cases where the taxpayers trying to login first time but getting error while generating the
OTP due to double quotes in the name, GSTN should take note of the limitation imposed by
the current technology and examine whether special characters can be allowed in the system.
(ii) In the cases wherein Taxpayers facing issue while filing GSTR3B getting error "You have
submitted TRAN-1 but have not filed it", GSTN would obtain report from jurisdictional tax
officers as to whether taxpayers have availed credit.
(iii) In the case related to the grievance raised by M/s OPaL (ONGC Petro additions Limited), a
SEZ unit located in Gujarat regarding the negative value (deficit) in the export ledger is not
allowing further eligible invoices to get transmitted to ICEGATE, GSTN would submit the
report of Jurisdictional officer in the next meeting.
(iv) In the case of M/s Corrtech (GSTIN 24AAACI8838F1ZK) wherein the taxpayer misreported
DTA-SEZ supplies (not meant for authorized operation) as zero-rated supplies for the period
of December 2018, March 2019 and May 2019 in GSTR 1, GSTN would obtain report from
the jurisdictional tax officer.
(v) In the case of M/s Escon Gensets Pvt Ltd. (29AAACE3903H1ZU), wherein the taxpayer had
erroneously entered the order and the rectification order with the same amount of
Rs.23,56,554/- in the system and thus, the amount posted in taxpayer’s electronic credit ledger
got zero, GSTN would reset the rectified order from backend.
2.2 For the 3 technical issues pertaining to Category-2 (Technical issues where there were financial
implications and the correct data was known), ITGRC took note of the data fixes carried out by
GSTN in all 765 cases involving an amount of Rs. 1289.60/-.
Page 348 of 463
2.3 ITGRC also took note of the data fixes carried out by GSTN in case of 2 Court Directions
impacting 3 cases.
2.4 23 data fixes done between April – June 2024, were also brought during the meeting. There
were 13 Technical issues with no financial implication where data was known, involving 62195 cases.
ITGRC took notice of the data fix done in 9 issues. 4 issues were deferred for the next meeting. 10
Technical issues affecting locally with financial implications were deferred for the next meeting.
2.5 In addition to this, 01 issue involving 15960 cases which was an update on a previous ITGRC
issue was also tabled before the Committee.
The recommendations of ITGRC as per attached Minutes of the 21st meeting of ITGRC are placed for
information of the GST Council as Annexure-A (attached).
The GST Council may approve the recommendations of the ITGRC and the data fixes carried out by
GSTN as mentioned in Para 2 above.
Page 349 of 463
Annexure-A
Minutes of the 21st Meeting of the IT Grievance Redressal Committee (ITGRC) held on 01.08.2024.
The 21st meeting of the IT Grievance Redressal Committee (ITGRC) was held in an online mode
over WebEx platform on 1st August 2024 at 11:00 am. The list of officers who attended the meeting is
attached as Annexure-1. The agenda and annexure to agenda circulated for the meeting is at
Annexure-2.
2. Shri Shashank Priya, Chairperson, ITGRC welcomed all the members of ITGRC and invited
EVP, GSTN to proceed with the agenda.
3. Shri Dheeraj Rastogi, Executive Vice President (EVP), GSTN stated that the agenda for the
meeting consisted of issues where data fixes have been carried out by GSTN as per the SOP developed
and approved in the 45th meeting of the GST Council. There were 27 technical issues with no financial
implications where correct data was known with certainty, 03 technical issues affecting locally with
financial implications where data is known with certainty and 02 agendas on implementation of court
directions. He further added that 23 data fixes done between April – June 2024 are also brought before the
committee. In addition to this, 01 issue which is an update on a previous ITGRC issue is also tabled
before the Committee.
4. EVP, GSTN then proceeded with the presentation (Annexure-3). First the technical issues having no
financial implications were taken up.
5(a) Technical issues having no financial implications where correct data known:
5(a).1
S. No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
1.
Taxpayers
are unable to
select the
Composition
opt out date
from the
Previous
Financial
Year though
their
turnover has
exceeded in
the previous
FY.
24
(includes
1 case of
data fix
done
between
April’24-
June’24)
Registration
Circular No. 77/51/2018-GST dt
31.12.2018 provided that date of
withdrawal from composition
scheme may not be prior to the
commencement of FY in which
such intimation/application for
withdrawal is being filed.
Few tickets pertaining to such
composition taxpayer who had
crossed the annual aggregate
turnover in 4th quarter of pervious
FY 2022-23 but taxpayer got to
know this fact when he was
trying to file CMP-08 for the
period of Jan-March quarter of
FY 2022-23 in April’23 i.e in the
subsequent FY 2023-24.
Data fix
done for
such
taxpayer to
enable
them for
filing their
returns for
past period
Page 350 of 463
As a result, Taxpayers wanted to
opt out of composition scheme
from the last quarter of FY 2022-
23 but the maximum passed date
was provided as opt out date
within current FY on portal.
Therefore, these taxpayers miss
the opportunity for opting out in
FY 2022-23. Though, they were
not qualified to continue the
composition from the last quarter
2022-23, they are not able to
apply for withdrawal vide Rule-6
(2).
Due to this implementation of the
directions in the circular on the
portal, the following issues are
being faced by TPs:
From the opt out date, they are
filing returns as a normal TP but
they are not able to file the
returns for the 4th quarter of
2022-23 or the past returns before
opting out.
It has subsequent impact of
interest and late fee.

Discussion:
EVP, GSTN explained that in these cases the taxpayer had crossed the annual aggregate turnover for
composition scheme in 4th quarter of FY 2022-23 but taxpayer got to know this fact while trying to file
CMP-08 for the period of Jan-March quarter of FY 2022-23 in April’23 i.e. in the subsequent FY 2023-
24. However, Circular No. CBIC-20/16/04/2018-GST dt 31.12.2018 provided that date of withdrawal
from composition scheme may not be prior to the commencement of FY in which such
intimation/application for withdrawal is being filed. Therefore, the system was not allowing the taxpayer
to file CMP-08 for the last quarter of FY 2022-23 and GSTN has done a data fix to enable them to file
returns for the past period.
Upon enquiry by JS, GSTCS; EVP, GSTN informed that in all these cases taxpayers have tried to opt out
within 7 days of crossing the threshold limit.
Decision: ITGRC took note of the data fix done by the GSTN.
Page 351 of 463
5(a).2
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
2.
Taxpayer
M/s SHRI
RAM
PRINT
"N"
PACK
(GSTIN-
02ABFFS4
545L1Z2)
is trying to
login first
time but
getting
error
while
generating
the OTP.
1 Registration
The taxpayer M/s SHRI RAM
PRINT "N" PACK (GSTIN-
02ABFFS4545L1Z2) has double
quotes in his Income tax database
and the same name was reflected
in his Legal Name. Due to
presence of double quotes in the
Legal name, OTP was not getting
generated for this taxpayer. Since
Name is not matched with Income
tax name, taxpayer was advised to
fix the name in income tax end.
The same have to be addressed in
GSTN database through Data fix
to enable generation of OTP for
the user.
Data fix
done on
20.12.2023
and issue
resolved.
Double
quotes have
been
deleted.

Discussion:
EVP, GSTN explained that in this case the taxpayer had double quotes in the name provided in PAN and
therefore, OTP was not getting sent to the taxpayer as special characters are not being allowed in the legal
name in GST system. Therefore, the taxpayer was advised to update the name without double quotes in
his PAN card. He stated that the same needed to be addressed in GSTN database through Data fix to
enable generation of OTP for the user.
Pr. DG Systems stated that the legal name has double quote and therefore, the concern is whether it
remains the same legal entity.
Pr. CC, Delhi Zone, CBIC stated that there would be legal implications to having double quotes in the
legal name as the same could be considered a brand name and therefore special characters may not be
allowed in the name. Chairperson, ITGRC replied that there is no restriction in GST law to using special
characters in the legal name.
Chairperson, ITGRC enquired as to whether the double quote has been removed from the CBDT records
and whether there will be difficulty in getting data for this tax payer from CBDT in future on account of
removal of double quote. He stated that the name across various compliance/regulatory bodies including
GSTN should remain the same and therefore, the taxpayer may be advised to remove the double quote
from the legal name. He further stated that in the long run GSTN should take note of the limitation
imposed by the current technology and examine whether such special characters can be allowed in the
system.
Page 352 of 463
GSTN stated that they will follow up this case through the jurisdictional tax officer for ensuring that the
legal name is same across the various regulatory framework.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).3
S. No. Issue reported No. of
Cases
Impacted
Module Detailed Description Status
3.
Request from
Embassy of The
Bolivarian
Republic of
Venezuela (UIN
0717VEN00140U
NM) and
Embassy of
Iceland (UIN
0717ISL00057UN
V) to update their
contact details
and email ID
2 Registration
Request from Embassy of
The Bolivarian Republic
of Venezuela (UIN
0717VEN00140UNM) to
update mobile number to
9205236616 and
Embassy of Iceland (UIN
0717ISL00057UNV) to
update their contact
details to 9311090160
and email ID to
newdelhi@utn.is
Data fix done
and issue
resolved.
Permanent fix
will get
automatically
resolved after
CBIC
migration.

Discussion:
EVP, GSTN explained that these registrations were taken through CBIC and there was no option/API to
update the contact details and email id. Therefore, the same has been done through back end.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).4
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
4
.
End date of
Registration
(GSTN:
01AAPPD3636
C3Z9) in GST
Master was
17.05.2019 as
selected by the
taxpayer,
1 Registration
The taxpayer has applied for
self-cancellation and the
Registration End date was
captured as 17th May 2019
in GST_MSTR table.
However, the actual
cancellation date was 11th
June 2019. Due to this, the
taxpayer was unable to file
Data fix done
and issue
resolved
Page 353 of 463
whereas the
cancellation
date per Tax
Officer Order
was 11.06.2019.
Due to this,
taxpayer was
unable to file
return for June
2019 for
GSTR1 and
GSTR3B and
the GTSR9,
also return tile
were disabled.
This was an old
case, and the
GST master
data needs to
be updated to
11.06.2019.
return for June 2019 period.
There was a gap in the self-
cancellation process. As per
the old implementation, if
there was a difference
between cancellation date
selected by the taxpayer at
the time of filing and
cancellation date selected by
the authority at the time of
disposal then master table
used to consider
REG_END_DT as
cancellation date selected by
the taxpayer at the time of
filing in GST_MSTR table.
Based on new business
requirement it was decided to
change the flow in self-
cancellation form and
consider cancellation date
and REG_END_DT as the
date selected by the officer at
the time of disposal.

Discussion:
EVP, GSTN explained that the taxpayer was unable to file returns for the month of June, 2019 on account
of difference in the registration end date selected by the taxpayer at the time of filing for cancellation of
GST registration and cancellation date selected by the authority at the time of disposal. He stated that the
system has been now tweaked to take the date which the tax officer has selected at the time of disposal to
be the date of cancellation. Data fix has been done by GSTN and issue has been resolved.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).5
S. No. Issue
reported
No. of Cases
Impacted
Module Detailed Description Status
5.
Foreign
National is
unable to
perform
1 Registration
Rule 10B of the CGST Rules
requires mandatory Aadhaar
Authentication of MD or WTD
for processing of refund of IGST
Data fix
done and
issue
resolved
Page 354 of 463

Discussion:
EVP, GSTN explained that the taxpayer was unable to do Aadhaar authentication for processing of refund
of IGST paid on export of goods on account of MD being a foreign national. He submitted that the issue
was also placed before the Law Committee and that the same has been approved by LC. Data fix has been
done by GSTN and issue has been resolved.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).6
Aadhaar
Authenticatio
n.
Air India
Limited,
Maharashtra
(27AACCN61
94P1ZP)
paid on export of goods.
Accordingly, AIL is unable to do
Aadhaar Authentication as: - AIL
does not have any WTD and -
AIL has a MD, who is not a
citizen of India, as exempted from
Aadhaar Authentication and GST
portal does not provide any
functionality to do Aadhaar
Authentication of foreign national
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
6.
Correction
in cash
ledger
balance due
to
credit/debit
happened
simultaneou
sly.
7+28 (Data fix
done between
April’24-
June’24)

Cash
Ledger
Some tickets were received from
taxpayers at GST Helpdesk for
correction in Cash Ledger balance.
It was observed that balance was
not updated due to credit/ debit
happening simultaneously. On
further analysis, 29 cases (28 active
and 1 cancelled) were identified
from Nov 2023 to Mar 2024 where
in credit entry was not updated in
Cash Ledger balance.
Reason:
The issue had occurred due to
debit/ credit entry in the cash ledger
happening at the same time, which
lead to incorrect cash balance in the
Data fix
was done
on 15 Dec
2023 via
ICRNo.23
856.
Permanen
t fix is in
process
through
CR
21982.
Page 355 of 463

Discussion:
EVP, GSTN explained that in these cases payment is not updated in the database on account of which the
ledger balance was not getting updated. He stated that the data fix was done and that the permanent fix is
in the process. Chairperson ITGRC enquired whether there were 2 transactions as the agenda item states
that the glitch arose because of 2 transactions happening simultaneously, if not, the description of the
issue may be amended to reflect the correct position.
Chairperson, ITGRC also enquired as to whether there are third party audit for such data fixes. EVP,
GSTN stated there is a 3rd party audit in place but for data fixes done there is no such third party audit.
Chairperson, ITGRC stated that it is desirable to have a 3rd party audit for all such data fixes.
EVP, GSTN stated that the scope of the audit would be enhanced accordingly.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).7
S. No. Issue
reported
No. of
Cases
Impacted
Modul
e
Detailed Description Status
7.
Taxpayer
(Riso India
Ltd) has
already filed
their
respective
GSTR-3B
returns but
they have
reported a
mismatch in
their saved

1
Returns
Taxpayer has done offset but filing
status not updated with 'FRZ' in the
Return Filing Status table and
taxpayer has done the NIL filings.
Taxpayer has done offset on 19th
April 2023 and has done nil filing
on 11th May 2023.
GSTIN: 33AADCR4540C1ZW
Return period: Mar, 2023

Reason
Taxpayer has done offset, and
Data fix
was done
on 30 Jan
2024.
RQMNo.22
721 is
raised for
permanent
fix and is in
developme
nt.
cash ledger. The reason for
occurrence of the issue is due to
dirty read where the two
transactions happened
simultaneously and read the same
record causing a mismatch.
It is a corner scenario wherein due
to a technical glitch in the back end,
two transactions happen at the same
time leading to incorrect cash
balance in the cash ledger.
Page 356 of 463
and offset
data.
Ledger gets inserted but filing
status was not updated with 'FRZ'
value due to database connectivity
loss.
As a next step, taxpayer opted ‘yes’
in questionnaire page for nil filing
of GSTR-3B and was able to
complete the NIL filing. As a part
of NIL filing process, ‘Y’
questionnaire values updated in
Hbase whereas no updates happen
in the ledger tables. This will result
in mismatch between HBase and
ledger.

Discussion:
EVP, GSTN explained that the taxpayer has filed the GSTR-3B returns but there was a mismatch between
the HBASE and ledger of the taxpayer. The tax payer has done nil filing of GSTR-3B by opting ‘ yes’ in
questionnaire page for nil filing of GSTR-3B and as a result values were updated in Hbase whereas no
updates happened in the ledger table and thereby, resulting in a mismatch between Hbase and ledger. He
stated that the data fix was done and that the permanent fix is being developed
Chairperson, ITGRC enquired as to the frequency at which these type of data fixes need to done. EVP,
GSTN replied that the requirement for such data fixes occur only on as and when ticket is raised. Further,
as permanent fix is being developed for the above scenario, the said issue is presumed not to recur in
future.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).8
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
8.
GSTR9 Post
Filing
behavior -
Entry posted
to ledger
Table but
filing status
of the return
could not be
updated.
5 Returns
Taxpayers have filed the GSTR9
form for FY:2018-19 & 2022-23
but status was still showing “Not
Filed” on portal.

Reason
Entries got posted to ledger
tables, but the status of filing
were not updated in the Hbase
table.
Issue has been
fixed on 29
Mar 2024 via
ICRNo.25265.
RQM:21228 is
under progress
for permanent
fix.
Page 357 of 463

Discussion:
EVP, GSTN explained that the taxpayers have filed the GSTR-9 returns and that the entries got posted to
ledger tables, but the status of filing were not updated in the Hbase table. There are 05 such cases for
which data fix had been done by GSTN and that the permanent fix is in the process.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).9
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
9.
ISD filed
GSTR6
However
correspon
ding
invoices
couldn’t
be
reflected
in
GSTR2A
of the
recipient.
Hence,
there was
ITC
mismatch.
333 Returns
Problem Statement

This is for the R2A data
population issue in which ISD
invoices are not reflecting in
GSTR2A form when uploaded
from GSTR6 form till February
2022 return period.
While adding the multiple
invoices through offline utility,
due to the bug in code, only the
last invoice was getting saved in
ISD_UNIT_RelationShip Hbase
table and that is why user was
unable to view all their invoices
on the portal.
Permanent fix has
already gone to
production
through
RQMNo.22445
on 15th Feb,2022.
Team is working
on utility for One
Go Fix for all
such cases that
pertains prior to
16th Feb 22.

Discussion:
EVP, GSTN explained that in some cases there was issue in auto population of data from GSTR-6 to
GSTR2A. While adding the monthly multiple ISD invoices through offline utility, due to a bug in the
code, all of the invoices data were not getting reflected in the GSTR-2A and only the data relating to last
invoice was getting saved in the portal. On account of this, the user was unable to view all their invoices
on the portal. A permanent data fix has already gone to production through RQMNo.22445 on 15th
Feb,2022. and in addition, GSTN is working on a utility for One Go Fix for all such cases that pertains
prior to 16th Feb 22.
Chairperson, ITGRC enquired as to the number of cases impacted by this issue. EVP, GSTN replied that
333 cases were covered under this issue.
Page 358 of 463
Joint Secretary, GST Council enquired as to whether these are the total number of cases and also as to the
financial implications, EVP, GSTN replied that there would be some more cases. However, this does not
involve any financial implication.
Chairperson, ITGRC stated that the technology should be made robust to ensure correct auto population
of figures in the system.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).10
S. No. Issue reported No. of
Cases
Impacted
Module Detailed
Description
Status
10.
Update the
financial year
from ‘2024-25’
to ‘2023-24’ for a
taxpayer having
GSTIN =
09AALCC4943L
1Z4, reference to
ticket no.
11764973
1 GTA
Due to a bug in a
filing of Annexure
V functionality for a
newly registered
taxpayer, the
taxpayer was unable
to choose ongoing
FY i.e. 2023–24,
and then he chose
FY 2024–25 and
filed an Annexure
V.
To permanently
resolve this issue, a
code fix has already
been moved to
production on 14th
Feb 2024, through
ECR 24608,
regarding enabling
filing of Annexure
V for the current
FY for the newly
registered GTA.

Discussion:
EVP, GSTN explained that in the case of this taxpayer on account of a bug in the system they were
unable to select ongoing F.Y 2023-24 while filing Annexure V for the newly registered GTA and instead
F.Y 2024-25 was getting selected. GSTN has already moved a code fix to enable filing of Annexure V for
the F.Y 2023-24.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).11a
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
Page 359 of 463
11a. “Data
already
submitted”
This error
was
reflected
during
amendment
of invoices
in GSTR5A
2 Returns Taxpayer is unable to amend the
invoices for previous return periods in
the current return period.

Taxpayer has amended the record from
the previous financial year and saved it.

Record type status is changed to ‘A’ in
the backend. Before filing the GSTR5A
that saved amended record has been
deleted by taxpayer, and then in the
next return period, the ‘Data already
submitted’ error is coming up, while
going for amendment of the same
record.

Record type status is changed to ‘A’ in
backend and hence ‘Data already
submitted’ error is coming in UI due to
design issue.
Data Fix
Done.
Permanent
fix is done
on date ()

5(a).11b
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
11b. Unable to
amend
B2C(others)
record
43 Returns When taxpayer is trying to amend
B2C (other) record, he gets error
"B2CS Amendment already exists
for the original month in different
return period".
As per analysis user did DELETE
activity after amending record. But
we have found that AMDBL_PRD
Column value is holding
“amendable return period” in
B2C_SUMMARY table due to
which user is unable to amend
again.

Since the taxpayer has deleted the
amended invoice before filing, data
Data Fix
Done
Page 360 of 463
fix have to be done for 43
taxpayers to remove the entries for
these documents which are saved in
Hbase but not included in filing, so
that taxpayer can amend the
document

Discussion:
EVP, GSTN stated that presently the taxpayers are unable to amend the record for B2C in GSTR-1 and
GSTR5A more than once. In these cases, the taxpayers after amending the records had deleted the entry
before filing the returns and on account of this deleted record remaining in the data base, the taxpayer is
being prevented from making further amendments of the same record for future periods. GSTN has fixed
the issue by removing the said traces.
Chairperson, ITGRC enquired as to the quantum involved in these B2Cs as there appeared to be no need
for reporting of B2C invoices individually in cases where invoice value is less than Rs. 2.5 lakh. EVP,
GSTN replied that the B2C invoices were of less than Rs. 2.5 lakh, however, these were cases where
there was error in the summary.
Chairperson, ITGRC stated that as per law there is no restriction on the number of amendments but in this
case the system is not allowing the amendments. On enquiry by Chairperson, ITGRC whether the issue
has been permanently fixed, EVP, GSTN replied that the process for permanent fix is in progress and
currently a data fix has been done.
Decision: ITGRC took note of the data fix carried out by GSTN.

5(a).12
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detail Description Status
12. After
Filing
GSTR1 for
the tax
period
03/2023 ,
however
invoices
are not
reflected in
GSTR-2B
of the
1 Returns During the peak filing period of GSTR-1,
a situation unfolded in the production
environment where one taxpayer
conducted multiple save actions.
Subsequently, the user then initiated a
reset process, which was still in progress at
that point. Despite this ongoing reset, the
taxpayer proceeded to save and file the
return for the tax period 03/2023.
In an unexpected turn of events, the
previous reset operation that was still
Data Fix
Done. Team
is working
on
Permanent
fix.
Page 361 of 463
recipient. processing was successfully executed after
the filing had taken place. This led to the
removal of data pertaining to GSTR1,
GSTR2B, ITC, and GSTR9 from the
underlying HBASE table.

Discussion:
EVP, GSTN stated that the taxpayer is unable to claim ITC in GSTR-2B on account of invoices not being
visible due to removal of data pertaining to GSTR1, GSTR2B, ITC, and GSTR9 from the underlying
HBASE table for the tax period 03/2023. He explained that the taxpayer had initiated reset option after
multiple save actions and then proceeded to complete the filing process of return. The previous reset
operation was still running and got successfully executed after the completion of filing process. On
account of this, the data pertaining to GSTR1, GSTR2B, ITC, and GSTR9 got removed from the
underlying HBASE table.
Pr. DG, DG Systems enquired as to whether the person could have availed credit. EVP, GSTN replied
that in most likely scenario credit would not have been availed. However, an audit might be done to check
the same.
Decision: ITGRC took note of the data fix carried out by GSTN and directed GSTN to inform
jurisdictional tax officer to confirm whether or not taxpayer has utilized credit only once for the invoices
in GSTR1 affected by the reset .

5(a).13
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
13 Taxpayer
facing issue
while filing
GSTR3B
getting
error "You
have
submitted
TRAN-1
but have
not filed it"
6 Returns Taxpayers who were filing Tran-1
return in the earlier TRAN filing flow
from 01-07-2017 to 28-09-2022 used to
get the credit on submission of TRAN
but the system doesn’t allow them to
file GSTR -3B due to a validation for
filing TRAN return post submission.
However, few taxpayers submitted
TRAN returns and then opted for
composition scheme. These taxpayers
when switched back to normal scheme,
then the system didn’t allow them to file
their GSTR-3B due to the validation on
submission but non-filing of TRAN.
Data Fix
Done.
Page 362 of 463
Reason:
As per the old code of TRAN-1 flow
the Taxpayers were able to get credit
(ITC) on submit (FRZ) of TRAN return
but there was a validation in the system
wherein the system does not allow to
file GSTR-3B unless TRAN is filed. So,
these Taxpayers shifted to composition
scheme and did not complete the filing
of TRAN-1 return.

Discussion:
EVP, GSTN stated that the taxpayer is facing issues in filing GSTR-3B on account of filing of form
TRAN-1 . He explained that taxpayers who had submitted but not filed their TRAN-1 return from 01-07-
2017 to 28-09-2022 got their electronic ledger credited on submitting the TRAN-1 return instead of filing.
As per the old,flow of TRAN-1, Taxpayer were able to get credit on submit of form Tran-1. Therefore,
the taxpayers did not complete the filing of TRAN-1 return and shifted to Composition Scheme. Later the
taxpayers shifted back to normal taxpayers in 2022. Now, while trying to file GSTR-3B as a normal
taxpayer they are getting an error message that they have not filed TRAN-1 form and that GSTR-3B can
be filed only on filing the TRAN-1 form. Data fix done has been done by GSTN and issue has been
resolved.
Chairperson, ITGRC enquired as to the period for which the data fix has been done and GTSN replied
that the cases mostly pertain to the period 2022.
Pr. DG, DG Systems, CBIC stated that in these cases, credit is not eligible so the jurisdictional officer
needs to be alerted to not allow the TRAN -1 credit. Chairperson, ITGRC directed GSTN to seek a
compliance report from the jurisdictional tax officer.
Decision: ITGRC took note of the data fix carried out by GSTN and directed GSTN to obtain report from
jurisdictional tax officers as to whether taxpayers have availed credit in the 6 cases mentioned in the
agenda.

5(a).14
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
14. M/s OPaL (ONGC
Petro additions
Limited), having
GSTIN
24AAACO9200B3Z2,a
SEZ unit located in
1 Refund This is related to grievance
raised by M/s OPaL (ONGC
Petro additions Limited), a SEZ
unit located in Gujarat. The
export ledger of this taxpayer is
deficit to the amount of Rs
Data Fix will
be given in
the export
Ledger to
offset the
negative
Page 363 of 463
Bharuch, Gujrat.
During FY 18, the
taxpayer has reported
SEZ-DTA supply
(Normal supply) as
SEZ-SEZ (Zero rated
supply) in GSTR 1.
As per the taxpayer,
GST system did not
allow him to pay IGST
as the DTA’s GSTIN
is also located in
Gujrat. To
circumvent, SEZ-DTA
supply is reported as
SEZ-SEZ supply i.e.,
“SEZ supply with
payment” on GST
portal in GSTR 1.
However, the taxpayer
has made the payment
under the correct head
in GSTR 3B (Table
3.1(a)) .
1,11,42,985.35.

During FY 18, the taxpayer has
reported the supplies made to a
DTA unit located in Gujarat as
SEZ supplies. As per the
taxpayer, GST system was not
accepting the DTA’s GSTIN for
IGST payment as both are in
the same State. To disclose the
correct liability under IGST,
these supplies have been
reported as “SEZ supply with
payment” on GST portal while
filing GSTR 1. The taxpayer
has made the payment in table
3.1(a) of GSTR 3B and also the
same has been verified by the
technical team.

As the supplies have been
reported as ‘SEZ’ supply, it has
created liability in Export
ledger. The payment has been
done in Table 3.1(a) and
therefore, it is not reflecting in
Export ledger and created the
negative balance. The negative
value (deficit) in the export
ledger is not allowing further
eligible invoices to get
transmitted to ICEGATE. The
only solution available in this
case is to provide offset for Rs
1,11,42,985.35 in the export
ledger.
balance

Discussion:
EVP, GSTN stated that the taxpayer had incorrectly reported the SEZ-DTA supply (Normal supply) as
SEZ-SEZ (Zero rated supply) as the system did not allow them to pay IGST on SEZ-DTA transaction. He
explained that the export ledger of the taxpayer is having negative balance on account of this action by
taxpayer in GSTR-1 and this negative balance is disallowing transfer of eligible export invoices to
ICEGATE for IGST Refund. He further added that though the liability is reported wrongly in Table 6 of
GSTR 1, the taxpayer has made the payment under the correct head in GSTR 3B i.e. Table 3.1(a) instead
of Table 3.1(b).
Page 364 of 463
Chairperson, ITGRC enquired whether there is any check provided in the system to check these scenarios
and EVP, GSTN replied that if corresponding IGST is not paid, then invoices would not be transmitted to
ICEGATE. Chairperson, ITGRC clarified that this should not have been reported in Table 4 of GSTR-1
as the same is not an export but normal supply.
Chairperson, ITGRC asked GSTN about the amount involved and GSTN replied that the supplies
misreported as Zero rated has created negative balance in the export ledger to the tune of INR
1,11,42,985.35. Chairperson, ITGRC directed GSTN to seek clarification from the jurisdictional officer
within next 48 hours. He directed that copy of the invoice be obtained and the same be analysed in detail
and re-submitted after clarification. If the same is not obtained, issue may be re-submitted in the next
ITGRC meeting.
EVP, GSTN stated that data fix will be given in the export Ledger to offset the negative balance.
Decision: Report of Jurisdictional officer is to be submitted before issuance of MoM. If not submitted,
the issue will be postponed for next ITGRC meeting.
Notes by GSTN before issuance of MoM: This is a supply of services from SEZ to DTA where the
liability to report in GSTR 1 and pay the tax in GSTR 3B is the responsibility of SEZ. For supply of
services, the taxpayer instead of reporting in Table 4 reported the same in Table 6 of GSTR 1. The report
and details sought by the Chairperson will be submitted in next ITGRC meeting.

5(a).15
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
15. The export ledger
is having negative
balance due to
mistakes
committed by
taxpayer in GSTR-
1 and this negative
balance disallows
transfer of eligible
export invoices to
ICEGATE for
IGST Refund. In
this case, the
“Export supplies
without payment
of duty” are
reported as
“Export supplies
with payment of
1 Refund The issue pertains to M/s IDE
Technologies India Private Limited
(GSTIN 09AABCI9713N1Z2). The
taxpayer has made “Export supplies
without payment of duty” for the
period of August 2017 and
November 2017. However, these
supplies were mis-reported as
“Export with Payment” in GSTR 1
and created negative balance in
export ledger. Also, these supplies
are reported correctly in GSTR
3B.As per the claim of the taxpayer,
the tax department has made a
demand for the supplies mentioned
as “Export with payment” which is
not paid in GSTR 3B. The taxpayer
went for appeal and the demand
raised by the proper officer was
nullified by Appellate Authority.
Data Fix
will be
given in the
export
Ledger to
offset the
negative
balance.
Page 365 of 463
duty” in GSTR 1. Thereafter, the taxpayer approached
GST helpdesk for nullifying the
negative balance in the export
ledger to the amount
of Rs. 1785963.42/- .

Discussion:
EVP, GSTN stated that the taxpayer had made Export supplies without payment of duty for the period of
August 2017 and November 2017. However, these supplies were mis-reported as “Export with Payment”
in GSTR 1 and this created negative balance in export ledger. These supplies are reported correctly in
GSTR 3B. The department had raised demand for the supplies mentioned as “Export with payment”
which is not paid in GSTR 3B and the taxpayer went in appeal. The appellate authority has nullified the
order and the taxpayer has now requested for nullifying the negative balance in the export ledger to the
amount
of Rs. 1785963.42.
Pr. DG, DG Systems stated that in this case data should not be transmitted to ICEGATE after the data fix.
EVP, GSTN stated that the invoices would not be transmitted to ICEGATE.
Chairperson, ITGRC stated that as the appellate authority has decided the issue, data fix might be
approved subject to the condition that the invoices are not transmitted to ICEGATE
Decision: ITGRC approved of the data fix proposed by the GSTN subject to invoices not being
transmitted to ICEGATE.
5(a).16
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
16. The export ledger is
having negative balance
due to mistakes committed
by taxpayer in GSTR-1
and this negative balance
disallows transfer of
eligible export invoices to
ICEGATE for IGST
Refund. In this case, DTA-
SEZ (not meant for
authorized operation)
supply is reported as
Export supply instead of
domestic supply in GSTR
1.
1 Refund M/s Corrtech (GSTIN
24AAACI8838F1ZK) has
misreported DTA-SEZ
supplies (not meant for
authorized operation) as
zero-rated supplies for the
period of December 2018,
March 2019 and May 2019
in GSTR 1. It has created
negative balance of Rs
16,67,197 in the export
ledger. This negative balance
has stopped further
transmission of eligible
export invoices to ICEGATE
Data Fix
will be
given in the
export
Ledger to
offset the
negative
balance of
Rs
16,67,197.
Page 366 of 463
belonging to the period
November 2022 to October
2023 and IGST refund of Rs
7,23,91,175.70 is stuck.

Discussion:
EVP, GSTN stated that the present matter is pending in the Hon’ble High Court. In this case the taxpayer
has misreported DTA-SEZ supplies (not meant for authorized operations) as zero-rated supplies for the
period of December 2018, March 2019 and May 2019 in GSTR 1. This has created negative balance of
Rs 16,67,197 in the export ledger and this in turn has stopped further transmission of eligible export
invoices to ICEGATE belonging to the period November 2022 to October 2023.
Chairperson, ITGRC enquired whether IGST involved in the supplies had been paid to which EVP,
GSTN replied in the affirmative. Chairperson, ITGRC suggested that the agenda may be deferred for the
next meeting as the matter is pending in the court. Also, the Chairperson sought report from the
jurisdictional tax officer.
Decision: ITGRC agreed to defer the item to the next meeting.
Notes from GSTN before issuance of MoM:
In this Writ Petition, GSTN is made as one of the respondents. In the reply filed before the Court, GSTN
has stated that the agenda is placed before ITGRC for decision on offsetting the export ledger. After
ITGRC meeting, an email is written to Commissionerate to submit report for the next ITGRC meeting.

5(a).17
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
17 Appeal
application
filed with Zero
disputed
amount and
was
acknowledged
by the officer.
As the
disputed
amount is Zero
the officer
could not issue
the final order.
1 Appeal This issue is forwarded by the
State of Rajasthan. In this case, a
taxpayer (08AFCPD0195G1ZS)
has filed an appeal against
Enforcement Order with
‘disputed amount’ as Zero in
Appeal application. When Zero
amount is entered, the officer
cannot issue the Appeal order
‘APL 04’. In this case, the officer
has mistakenly admitted the
application also but couldn’t
issue the final order.
Data fix is
given to
change the
status from
appeal
admitted to”
appeal
submitted “ so
that officer can
reject the
application.
Page 367 of 463
Discussion:

EVP, GSTN stated that this issue has been referred by Rajasthan State Tax Department and that the
taxpayer has mistakenly reported the disputed amount as zero while filing APL-01 and on account of
which APL-04 cannot be issued by the tax officer. As the case officer has admitted the application they
are unable to reject the application without APL04. Therefore, data fix is given to change the status from
appeal admitted to” appeal submitted “so that officer can reject the application.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).18
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
18. Appeal ARN:
AD0709230003288
was filed by GSTIN :
07BMHPS5748B1ZV
against Registration
Order :
ZA071220040517Z
which was
inadvertently
rejected by the
officer instead of
accepting the same.
1
Appeal A taxpayer (GSTIN:
07BMHPS5748B1ZV) filed an
Appeal ARN : AD0709230003288
against Registration Order :
ZA071220040517Z which was
inadvertently rejected by the officer
instead of accepting the same. The
appeal was inadvertently rejected by
selecting the option "I reject the
Original Order" instead of "I accept
the original order". Rectification
option is not available for
Registration related appeals.
Therefore, in this case, the only
option was to do reset of APL 04
from back end.
Data fix is
given to
reset APL-
04 for
reissuance.

Discussion:
EVP, GSTN stated that the taxpayer had filed an appeal, and this was mistakenly rejected by the officer
while issuing APL 04 instead of accepting and rectification option is not available for Registration related
appeals. Therefore, GSTN had to reset APL 04 from back end.
Officer from West Bengal requested that in such cases option may be given to the tax officer to correct
the error apparent on face of record.
Chairperson, ITGRC thanked officer from West Bengal for raising the issue and enquired from GSTN as
to whether this was a permanent fix. EVP, GSTN replied that in this, data fix has been given to reset
APL-04 for reissuance and that they will provide a functionality for rectification for errors apparent on
the face of the record.
Page 368 of 463
Pr. DG, DG Systems stated that earlier in service tax also there existed provisions for rectification of
errors on the face of record.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).19
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
19. Issue in
adjustment
of excess
tax paid
with RCM
liability.
1 Return Taxpayer reported that while filing
GSTR 3B for the month of Nov. 2022,
the CGST amount under RCM
Liability mentioned in table 3.1d
(inward supplies liable to reverse
charge) was not reflecting in Table 6
(Payment of Tax details). Upon
analysis, it was found that the system
was auto adjusting the Excess paid tax
by the taxpayer from his reverse
charge liability and showing the
details in negative liability ledger. As
per the analysis, for July 2017 return,
the total CGST liability to be paid
under “Other than reverse charge” was
Rs. 4781595.00 and total liability to
be under “Reverse charge” was Rs.
12311.00.
At the time of payment, the Reverse
charge liability of Rs. 12311 was set
off through cash ledger as per the
functionality. On the hand, the other
than reverse charge liability was set
off with an amount of Rs. 790126
which was utilized from the cash
ledger. Now, the liability left for
“other than reverse charge” was Rs.
3991469.00 but instead taxpayer again
paid the total liability amount (i.e., Rs.
4781595.00) through ITC (Credit
Ledger). Hence, this way excess
payment of CGST liability of Rs.
790126 was done in July 2017. This
excess payment was considered as the
negative liability balance under the
The taxpayer is
asking either for a
refund of the
remaining excess
tax collected or to
shift the amount to
the ITC ledger so
that the same can
be used for other
than reverse
charge liability.
Note – If refund is
filed by the TP
under Excess
payment of Tax
category (July,
2017) , it will be
time barred. The
solution available
is to give the
excess paid
amount in ITC
ledger through
data fix.
Page 369 of 463
CGST Tax Head and is getting
adjusted in Reverse Charge CGST
liability in subsequent months till
now.

Discussion:
EVP, GSTN stated that this issue was deferred from the last meeting. In this case, in the GSTR-3B filed
by the taxpayer for the month of November 2022, the CGST amount under RCM Liability mentioned in
table 3.1d (inward supplies liable to reverse charge) was not reflecting in Table 6 (Payment of Tax
details). Upon technical analysis, it was found that the system was auto adjusting the Excess paid tax by
the taxpayer from his reverse charge liability. The taxpayer paid excess tax of Rs. 7,90,126/-in July 2017
through double debit of cash ledger and ITC Ledger. EVP, GSTN stated that the taxpayer is asking either
for a refund of the remaining excess tax collected or to shift the amount to the ITC ledger so that the same
can be used for other than reverse charge liability. EVP, GSTN suggested that the excess paid amount
could be given in ITC ledger through data fix, as refund would be time barred Upon enquiry by the
Chairperson, ITGRC as to whether the taxpayer could be advised to use the balance for payment of RCM
liability, EVP, GSTN stated that the RCM liability of the taxpayer is very less and he has been able to use
only Rs. 3.5 lakh for the same in the past 7 years.
Chairperson, ITGRC accepted the suggestion of EVP, GSTN and asked whether the same issue could
recur. EVP, GSTN replied that as per the data there is a remote possibility for the same. However the
issues will be resolved on the same lines when any ticket is raised.
Decision: ITGRC took note of the data fix done by the GSTN.
5(a).20
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
20. As per
Hon’ble
Supreme
Court order,
the taxpayer
has filed a
revised
TRAN-1(new)
application as
prescribed
under
Circular No.
180/12/2022-
GST dated
09.09.2022.
The taxpayer
1 Returns As per circular No. 180/12/2022-
GST dated 09.09.2022, the
registered taxpayers were given an
opportunity to file their TRAN-
1/TRAN-2 forms or to revise their
already filed TRAN forms during the
two months windows provided from
01.10.2022 to 30.11.2022. The back
office functionality for passing the
TRAN orders was designed in such
way that the system will
automatically deduct the earlier
claimed TRAN credit from the
approved amount and the remaining
TRAN credit will be posted to the
electronic credit ledger (ECL) of the
In such cases
where the net
amount was
arriving negative
due to filing of
TRAN forms with
differential/missed
values, the LC has
already decided
that the tax officer
can approve
amount more than
the amount claimed
by taxpayer in their
revised TRAN
forms so that the
Page 370 of 463
had missed out
the cenvat
credit related
to service tax
amounting to
Rs.23,70,696/-
during filing
of old TRAN-1
application.
The tax officer
vide order
dated
20.02.2023
approved the
TRAN-1 credit
of Rs.
23,56,554/- but
the said
amount has
not been
credited to
taxpayer’s
ECL.
taxpayer on passing of order by Tax
Officer in back office. M/s Escon
Gensets Pvt
Ltd.(29AAACE3903H1ZU) had
filed TRAN forms the old TRAN-1
application on 13.12.2017 for
carrying forward the credit of
Rs.75,48,705/-. The said amount was
credited to taxpayer’s ECL.
During the two months window
opened as per Hon’ble Supreme
Court order, the taxpayer has filed a
revised TRAN-1(new). The taxpayer
had missed out the cenvat credit
related to service tax amounting to
Rs.23,70,696/- during filing of old
TRAN-1 application. The tax officer
approved the TRAN-1 credit of Rs.
23,56,554/- but the said amount has
not been credited to taxpayer’s ECL.
net amount in back
office can become
equal to the
eligible credit and
the same can be
posted to
taxpayer’s ECL.
Accordingly, in the
instant case, GSTN
can reset the
rectified order from
backend and tax
officer may put the
higher values in
back office so that
the net amount can
become the amount
approved in order
passed by the tax
officer.

Discussion:
EVP, GSTN stated that in this case the tax officer has erroneously entered the order and the rectification
order with the same amount of Rs.23,56,554/- in the system and thus, the amount posted in taxpayer’s
Electronic credit ledger got zero. EVP, GSTN further stated that GSTN can reset the rectified order from
backend and tax officer may put the higher values in back office so that the net amount can become the
amount approved in order passed by the tax officer.
Chairperson, ITGRC allowed GSTN to reset the rectified order from backend
Decision: ITGRC allowed GSTN to reset the rectified order from backend.
5(a).21
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
21. GSTR9
tile is not
enabled
for
FY:2019-
10 Returns Taxpayers were inactive at the time of
GSTR2A processing for GSTR-9. Due to
that R2A entry for these taxpayers were
not inserted into the database. Later, these
taxpayers became active and were trying to
Issue has
been fixed on
29 Mar 2024.
Page 371 of 463
20,2020-
21,2021-22
and 2022-
23
file the GSTR-9 but the GSTR9 tile was
not enabled for them, due to which, R2A
entries for the reported taxpayers were
needed to be inserted manually from
backend.

Discussion:
EVP, GSTN stated that in these 10 cases, the taxpayers were inactive at the time of GSTR-2A processing
for GSTR-9 for the FY:2019-20,2020-21,2021-22 and 2022-23. Therefore, GSTR-2A entry for these
taxpayers were not inserted into the database. Later, these taxpayers became active and on trying to file
the GSTR-9, the tile was not enabled for these taxpayers.
Chairperson, ITGRC enquired whether the number of years were different in all the said 10 cases. EVP,
GSTN replied in affirmative.
Pr. DG, DG Systems enquired as to period for which these 10 taxpayers were inactive and GSTN replied
that the same are for different periods. GSTN has done data fix for these taxpayers by inserting the R2A
entries for the reported taxpayers manually.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).22
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
22. 1. Creation of missing
APOB entries in
ADDR_DETL for large
firms.
2. RC regeneration for
missing APOB of large
firms.
3. Data loading from
backend for core/non-core
for large firms having high
count of APOB.
Below Taxpayers are
impacted by the data-fix
1. 08AAACC9762A1ZT,
CHAMBAL
4 +8 (data
fix done
between
April’24-
June’24)
(Similar
issue
discussed
and
approved
in 20th
ITGRC)
Registra
tion
1. End user is not able to see
list of newly added APOB in
amended RC as database
transaction is not getting
completed with in optimized
time limit as a result master
tables are not getting updated.
This is happening with large
firms who are adding 400+
new APOB in one go.
2. End user is not able to see
amended RC as database
transaction is not getting
completed within optimized
time limit as a result master
tables are not getting updated.
This is happening with large
Data fix
done. For
permanent
fix CR
No. 26195
has been
given
which is
under
developm
ent.(TFD
approved
on
12.06.202
4)
Page 372 of 463
FERTILISERS AND
CHEMICALS LTD
2.33AAACS7018R1Z0,
SHRIRAM FINANCE
LTD
3.27AAACB2894G1ZN,
BHARTI AIRTEL LTD
4.32AADCM4352R1Z6
MUTHOOT VEHICLE &
ASSET FINANCE LTD
firms who are adding 400+
new APOB in one go.
3. End user is not able to open
fresh core/non-core application
as data from all the master
tables is not getting loaded
with in optimized time limit.
This is happening with large
firms who are having high
count of APOB.

Discussion:
EVP, GSTN stated that in these cases the issue is with respect to updation of additional place of business.
The taxpayer is not able to see the additional place of business that were getting added as the database
transaction were not getting completed within optimized time limit on account of which result master
tables are not getting updated. He added that similar issue was discussed and approved in 20th ITGRC
meeting.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).23
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
23. Casual taxpayers
who are having
null registration
end date in the
database are
facing issue in
returns module.
15 +28
(Data fix
done
between
April’24-
June’24)
(39 Such
cases have
been
approved in
20th
ITGRC. )
Registration As per the current code
implementation, system is
updating registration end date as
null in the database in following
scenarios if cancellation order is
not passed or has been
withdrawn. This implementation
is present in the system since go
live of the following use cases:
Drop proceedings of Suo-moto
cancellation.
Rejection of self-cancellation
application.
Withdrawal of self-cancellation
application.
Data fix
done and
issue
resolved
Page 373 of 463

Discussion:
EVP, GSTN stated that Casual taxpayers who are having null registration end date in the database are
facing issue in returns module. As the end registration date was null , users were facing issue for filing of
returns. As per the current code implementation, system is updating registration end date as null in the
database in following scenarios if cancellation order is not passed or has been withdrawn - Drop
proceedings of Suo-moto cancellation, rejection of self-cancellation application and withdrawal of self-
cancellation application. GSTN has done data fix and issue has been resolved. He added that 39 similar
cases was discussed and approved in 20th ITGRC
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).24a
S.
No.
Issue
reported
No. of
Cases
Impacted
Modul
e
Detailed Description Status
24a. Transfer of
Cash
Ledger
Amount
from
Temporary
Registratio
n to GSTIN
with same
PAN.
1
(Advance
Ruling
issue has
been
discussed
in the 19th
& 20th
ITGRC
and were
approved.)
Cash
Ledger
The challan amount of
Rs.39,08,237/- was deposited
in GST
No.372300001317ARW(Te
mporary) meant for Advance
Ruling. This amount cannot
be used for any other
purpose as there is no
functionality for setting off
against any demand or
claiming refund.

Reason
The taxpayer has wrongly
deposited the amount in
Temp ID instead of the
regular GSTIN.
Functionality to
restrict payment for
more than required
amount through
Challan for Advance
Ruling Temp IDs
has been deployed
on 06-04-2024. Data
fix is done for this
particular case.

Discussion:
EVP, GSTN stated that the taxpayer has wrongly deposited the amount Rs.39,08,237/- in Temp ID GST
No.372300001317ARW for Advance Ruling through Challan facility and that this amount cannot be used
for any other purpose as there is no functionality for setting off against any demand or claiming refund.
He added that the issue has been discussed in the 19th & 20th ITGRC meetings and it was approved that a
functionality to restrict payment (more than required amount) through Challan for Advance Ruling Temp
Page 374 of 463
ID users be made available and the same has been deployed on 06-04-2024. He also stated that data fix is
done for this particular case.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).24b
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
24b. Credit entry
missed for
destination
GSTIN while
transferring
amount through
PMT-09 from
one GSTIN to
another GSTIN
registered on the
same PAN.
1 Return
While transferring cash amount
through PMT-09 from one GSTIN
to another GSTIN registered on
the same PAN, amount got
debited from source GSTIN but
not credited into destination
GSTIN.

Reason
Duplicate entries coming from
CMP08 and GSTR3B (same
timestamp) with different source
id. Even though there is no impact
on the balance in ‘Cash Balance’
table, these cases might impact
PMT09 filing, due to a check
enabled in PMT09 code to
validate the ‘Cash Ledger Id’ in
both ‘Cash Ledger’ & ‘Cash
Balance’ tables.
Data fix was
done on 1 Jan
2024 via
ICRNo.24506.

Discussion:
EVP, GSTN stated that while transferring cash amount through PMT-09 from one GSTIN to another
GSTIN registered on the same PAN, amount got debited from source GSTIN but was not credited into
destination GSTIN. He added that there is no option for filing of refund through Advance Ruling and
therefore, data fix is done by transferring the amount involved to the Taxpayer’s another GSTIN.
Decision: ITGRC took note of the data fix done by the GSTN.

Page 375 of 463
5(a).25
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
25. Taxpayer
tried to file
CMP08 for
Jan – March
2022 and
ARN was
generated
but filing
status was
not updated
to FIL. Now
while
clicking on
Proceed to
file button,
taxpayer is
getting error
“The
turnover
reported
exceeds the
threshold
limit for
availing
composition
scheme.”
2 (Already
discussed
and
approved in
20th
ITGRC)
Return Taxpayer has filed CMP08 for
Jan – March 2022 with taxable
value of Rs. 3537250 and with
Rs. 17886 CGST/SGST tax but
Filing Status not updated from
RTF to FIL. Taxpayer has
aggregate turnover of Rs.
12334295 for FY 2021-22.
When taxpayer tried again and
clicked on save button, previous
RTF entry got deleted from
filing status table and while
clicking Proceed to file button,
turnover error is coming because
last quarter turnover has been
adding twice in GT_DETL h-
base table which resulted in
crossing the threshold limit of
Rs. 1.5 crore.

Reason
Taxpayer tried to file the return
during peak filing days and issue
might have occurred due to high
load. Transaction was not
completed and filing status was
not updated to FIL. Since
turnover for last quarter was
already posted in the database,
now while doing proceed to file
with same turnover of Rs.
3537250 again, previous 'Return
to File' entry got deleted from
filing status table.

Now as per system functionality
on click of proceed to file, due
to PAN based aggregate
turnover validation, taxpayer
received turnover error message.
Data fix was
done on 21
Dec 2023 via
ICRNo.24036.
Permanent fix
in process
through RQM
25635.
Page 376 of 463

Discussion:
EVP, GSTN stated that the taxpayer has tried to file CMP-08 for Jan – March 2022 and ARN was
generated but filing status was not updated from RTF to FIL. He added that when multiple attempts were
made to save the change in status the previous RTF got deleted and on account of which the last quarter
turnover has been counted twice in base table and this has resulted in the taxpayer crossing the threshold
for composition scheme. He stated that the data fix was done and that the permanent fix is in the process.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).26a
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
26a. No
Document
Found
Issue
17
(Already
discussed
and
approved
in 18th
ITGRC)
Return 1.Hbase Columns are missing from
INV_DTL table. So, when they try to
amend a invoice they are getting No
Document found Error
2. When Taxpayer is validating the
statement in Refund, system is giving
error “RF-FCAS1007” and not
allowing to file the Refund
Permanent
fix has
been done
through
RQM
25821 on
25th April
2024, Night

Discussion:
EVP, GSTN stated that due to missing of HBase Columns in Invoice details table, when taxpayers tried
to amend invoice details, they were getting “No Document found” Error. He stated that the issue was
already discussed and approved in the 18th ITGRC. Accordingly, 17 more similar issues have been
addressed and GSTN has done permanent fix for the issue.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).26b
S.
No.
Issue
reported
No. of Cases
Impacted
Module Detailed Description Status
26b. MD
Column
27 (Already
discussed and
Return When Taxpayer is validating
the statement in Refund,
Permanent
Fix has
Page 377 of 463
Null
Issue
approved in
18th ITGRC)
system is giving error “RF-
FCAS1007” (MD column null
issue) and not allowing to file
the Refund.

Permanent Fix has already
been deployed through a ICR
25155/ RQM 26414
+E6
already been
deployed
through a
ICR 25155/
RQM
26414, on
21st March
2024 .

Discussion:
EVP, GSTN stated in this case, when Taxpayer is validating the statement in Refund, system showing
MD column null issue error and not allowing to file the Refund. He stated that the issue was already
discussed and approved in the 18th ITGRC. Accordingly, 27 more similar issues have been addressed and
GSTN has done permanent fix for the issue.
Decision: ITGRC took note of the data fix done by the GSTN.

5(a).27
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
27. Problem in
integration
with CBIC
w.r.t
update
TRAN
summary.
59 (Similar
cases have
been
discussed
in the 19th
& 20th
ITGRC and
were
approved.)
TRAN Due to technical issue, whenever the tax
officers are trying to update the
summary, the records get stuck in
IP/REC (the records were received more
than once while the previous record was
under execution and hence, they were
finally not processed being rejected as
duplicate). Therefore, the tax officers are
unable to proceed with issuing order for
TRAN, for the respective taxpayers.
Data Fix ICR
to update the
IP/REC
records to ER
so that it can
be re-
processed
from tax
Officers end.

Discussion:
EVP, GSTN stated that CBIC was required to send report to GSTN through API with respect to TRAN
however on account of faulty operation of the system whenever the tax officers were trying to update the
summary, the records were getting stuck and therefore, the tax officers were unable to proceed with
issuing order for TRAN for the respective taxpayers.
Page 378 of 463
Chairperson, ITGRC enquired as to reason for the delay in rectification to which EVP, GSTN replied that
data fix has been done in February/March, 2024.
Decision: ITGRC took note of the data fix done by the GSTN.

5 (b). Thereafter, EVP, GSTN explained 03 cases where there were technical issues affecting locally with
financial implications and where the correct data was known.
The details of the cases are mentioned as follows:
5 (b).1
S.
No.
Issue
reported
No. of
Cases
Impacte
d
Module Detailed Description Status
1. Issue in
filing
GSTR-4
annual due
to
unsuccessful
auto-
population
of data in
Table 4A &
4B.
763 Cash
Ledger
During the initial phase of GST
implementation, taxpayers were
allowed to make debit in cash
ledger with decimal values as
well. Later, as part of
improvement it was restricted to
whole number for all the ledger
transactions.

Reason
Due to the impact of earlier
implementation, there were few
entries found with decimal
amounts in cash balance of the
taxpayer. The balances of the
identified cases need to be
corrected so that the amount
could be utilized by the taxpayer
during the filing of return forms.
The balances of
the identified
cases were
corrected so that
the amount could
be utilized by the
taxpayer during
the filing of return
forms. It has been
Permanently fixed
via RQM 25366
on 30-09-2023.

Discussion:

EVP, GSTN stated that in the initial phase of GST implementation, taxpayers were allowed to make debit
in cash ledger with decimal values however, as part of improvement it was restricted to whole number for
all the ledger transactions. He stated that on account of this there were few entries found with decimal
amounts in cash balance of the taxpayers. While filing the returns the auto population of data in table 4A
and 4B from GSTR-4A was not successful due to decimal values present in cash ledger. Accordingly, the
balances of the identified cases were corrected so that the amount could be utilized by the taxpayer during
the filing of return forms.
Page 379 of 463
Chairperson, ITGRC enquired as to number of cases and the amount involved and EVP, GSTN stated that
there were 763 cases and Net amount to be credited is Rs. 139.60.

Decision: ITGRC took note of the data fix done and recovery made by the GSTN.

5 (b).2
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
2. The
taxpayer
has
reported
that their
ledger has
been
credited &
debited
twice for
the same
transactio
n.
1 Returns When the taxpayer was trying to file GSTR-
3B, the first transaction of taxpayer was in
progress and was not completed. Due to this, its
status was not visible and meanwhile the
taxpayer initiated another transaction, thinking
the previous one got failed. Both the
transactions were now in progress at the same
time and also got completed in parallel . Hence,
Ledger was credited & debited twice for the
same transaction and the ledger has been
updated accordingly, thereby leading to a loss
in the overall balance.
Reason
This has happened due to high load to the
system when taxpayers were trying to file
GSTR-3B.

In this case, the first transaction of taxpayer was
in progress and not committed. Due to this, its
status was not available, and taxpayer initiated
another transaction, thinking the previous one
failed. Both the transactions were now in
progress at the same time and got committed in
parallel which has leads to the problem being
observed.
Code fix
for XA
transactio
ns issue
was fixed
on 14 Nov
2018 and
Payment
API issue
was fixed
on14
March
2019.
This is old
case prior
to code
fix which
can be
fixed by
data fix.

Discussion:
EVP, GSTN stated that the taxpayer while trying to file GSTR-3B was unable to see the status of
transaction and therefore, they initiated another transaction, thinking the previous one got failed.
However, both the transactions were executed parallel and this resulted in their ledger getting
credited/debited twice for the same transaction and the ledger has been updated accordingly, thereby
leading to a loss in the overall balance. He informed that this system glitch occurred on account of the
Page 380 of 463
high traffic in the system. GSTN has done the data fix. Total amount of Rs. 1,150/- has to be re-credited
to the taxpayer.
Decision: ITGRC took note of the data fixes done by the GSTN.

5 (b).3
S.
No.
Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status
3. Late Fee
Waiver in
GSTR3B
for 4
districts
of Tamil
Nadu due
to
Cyclonic
Storm
1 Returns Problem Reported: -
We are dealers having our principal place of
business in Chennai. As per Notification no.
55/2023-CT dated 20.12.23 the due date for
filing GSTR 3B for the month of Nov-23
was extended up to 27.12.2023 for districts
of Chennai, Tiruvallur, etc. We had filed our
GSTR 3B for Nov-23 on 26.12.23. However,
while filing GSTR 3B for Dec-23, we are
being charged late fees of Rs. 150+150 for
late filing of Nov-23 GSTR-3B. Request you
to kindly make corrections so that we can
file the Dec-23 GSTR 3B without delay.
GSTIN : 33ARBPN6698P2ZX
Reason:-

Due date of GSTR3B for the month of
November 2023 for the affected districts was
extended from 20th December 2023 to 27th
December 2023, but for few taxpayer late
fee was levied in spite of due date extension.
This was because their district code was not
present in GST_MSTR table and due to this
due date extension was not applicable on
them.
Data fix is
done
through
ICR
no.25479.
Permanen
t fix will
be done
through
RQM
26807.

Discussion:
EVP, GSTN stated that this was in relation to the late Fee Waiver in GSTR3B for 4 districts of Tamil
Nadu due to Cyclonic Storm. He stated that due date of GSTR3B for the month of November 2023 for the
affected districts was extended from 20th December 2023 to 27th December 2023, but for few taxpayers
late fee was levied in spite of due date extension. This was because their district code was not present in
GST_MSTR table and due to this due date extension was not made applicable to them. GSTN has done
the data fix.
Decision: ITGRC took note of the data fixes done by the GSTN.
Page 381 of 463
5(c) Court Directions:
Thereafter, EVP, GSTN explained 2 cases of Court Directions. The details of the cases are mentioned as
follows:
5(c).1
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status

1.
Basis on
the
decision
made by
Hon’ble
Delhi
Court,
late fee
has to be
refunded
to the
taxpayer.
1 Refund In pursuance of Order dated 18.05.2023, in
WP, Civil No. 10363 of 2022 passed by
Hon’ble High Court of Delhi. GSTR3B for
the month of September 2020 and October
2020 have been filed with payment of late
fee of Rs. 10,000/-. Therefore, you are
requested to refund recredit the late fee
paid.

As there is no provision of late fee waiver
in GSTR3B currently, therefore user can be
asked to pay his late fee, and once late fee
is paid, same can be reversed. The late fee
which has been paid by the taxpayers
should be refunded to them under the same
major head and late fee minor head.

As above taxpayer already paid the late fee,
therefore late fee needs to be refunded.

Reason
Late fee has to be refunded to the taxpayer
in pursuance of Order dated 18.05.2023, in
WP, Civil No. 10363 of 2022 passed by
Hon’ble High Court of Delhi.
Data fix
was
done on
8 Mar
2024 via
ICRNo.
25055.

Discussion:
EVP, GSTN stated that this was in pursuance of an Order of the Hon’ble High Court of Delhi. The
taxpayer had filed GSTR3B for the month of September 2020 and October 2020 after making a payment
of late fee of Rs. 10,000/-. A total amount of Rs. 20,000/- was to be refunded to the taxpayer. GSTN has
done the data fix by reversing the amount to the taxpayer.
Chairperson, ITGRC stated that a provision needs to be made for tax officers to carry out Courts’
directions and inputs can be sought from the Law Committee on this issue. Pr. DG, DG Systems stated
that there needs to a facility for tax officers to manually override the system in case of Courts’ orders and
that this shall be taken up in the Law Committee for approval.
Decision: ITGRC took note of the data fix done by the GSTN.
Page 382 of 463
5(c).2
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status

2.
Appeals filed
against
registration
rejection
orders which
were rejected
by the
appellate
authorities.
However, HCs
allowed the
petitioners to
re-file the
appeal.
Therefore,
reset was
given to the
ARN to allow
re-filing of
appeal as
remand back
functionality
is not
available for
Registration
Orders.
2 Appeal The issue in brief is that the taxpayers
have filed appeal against the
Registration orders and the appeal have
been rejected by the Appellate authority.
Against the rejections, the said
taxpayers have filed Appeal in Hon’ble
High court of Rajasthan and Jammu and
Kashmir The Courts has allowed the
petitioner to refile the appeal within 10
days.

As per the existing business process,
once appeal is filed against an Order,
Appeal cannot be filed against the same
order. Also, remand back functionality
for Appellate authority is available for
Demand and Refund orders. For
Registration and other type of orders, it
is not available and yet to be develop.

To comply with the high courts’ orders,
APL 04 issued against earlier Appeal
has to be removed from the system.
Therefore, please allow data fix for this
case to comply with High court order.
Appeal
status
reverted
from
acknowl
edged to
submitte
d

Discussion:
EVP, GSTN stated that this was in pursuance of orders of the Hon’ble High Courts of Rajasthan and
J&K. The taxpayers had filed appeal against the Registration rejection orders and the appeals were
rejected by the Appellate authority. The taxpayers filed appeals in the Hon’ble High Courts and the
Courts have allowed the petitioner to re-file the appeal within 10 days. He stated that as per the existing
business process, appeal cannot be filed against an order more than once. Further, as of now, remand back
functionality is available only for Demand and Refund orders and not for Registration orders. Therefore,
in order to comply with the Hon’ble High Courts’ orders, the appeal status has been reverted from
“acknowledged” to “submitted” in the 2 cases.

Decision: ITGRC took note of the data fixes done by the GSTN.
Page 383 of 463
5 (d) Other issues presented during the meeting
Thereafter, EVP, GSTN took up 23 data fixes done between April – June, 2024 of which 13 were
technical issues with no financial Implications – Correct data known and 10 were technical issues
affecting locally with financial implications – Correct data known.

Technical issues with no financial Implications – Correct data known
5(d).1
S. No. Issue
reported
No. of Cases
Impacted
Module Detailed Description Status

1.
Restorati
on of Suo-
moto
cancelled
TDS
GSTINs.
4 Registra
tion
04 TDS GSTINs were Suo-moto
cancelled due to non-filing of monthly
returns continuously for six months.
Since the time limit for applying for
revocation was over, therefore, data fix
was required.
1. 33CHED00302B1DV: Directorate
of Census Operations, Tamil Nadu, basis
the Appeal Order passed by Additional
Commissioner, Appeals II, Chennai.
2. 33CHER05232D1DJ: Indian Civil
Accounts Service Office, Chennai basis
the request received by AC, CGST,
Chennai (CPGRAM received by AC)
3. 37AAALY0152H1D8: M/s
Yelamanchili Municipality on the basis
of request by Superintendent,
Narayanpet.
4. 09AAALN2188C1DC: NAGAR
PANCHYAT UMRI KALAN, basis the
Appeal Order passed by Joint
Commissioner, CGST(Appeals), Meerut
Data Fix
done and
GSTIN
status has
been
restored
to active,
Taxpayer
is
requested
to file
return.

Discussion:

EVP, GSTN stated that in these 04 cases the GSTINs were suo-moto cancelled due to non-filing of
monthly returns continuously for six months and that the time limit for applying for revocation was over
and that GSTN had done a Data Fix by restoring GSTIN status to active, and that Taxpayers have been
requested to file returns
Page 384 of 463
Chairperson, ITGRC enquired as to how these cases came to GSTN and as to whether appeal orders have
been received in these cases. EVP, GSTN stated that out of these 04 cases, they have received orders of
Appellate authorities in 02 cases for restoration of registration and in other 02 cases, the requests were
received from the tax officials. He stated that Data Fix has been done and GSTIN status has been
restored to active.

Pr DG, DG Systems enquired as to the provisions of GST law under which such suo-moto cancellations
had taken place as registered persons under section 51 had to file monthly returns only for the months in
which deductions had been made. EVP, GSTN stated in the recent GST Council meeting the same had
been amended to ensure that GSTR-7s are filed each month, however, these cases were of governmental
authorities who had failed to file monthly returns continuously for six months and after data fix taxpayers
have been requested to file returns.

Decision: ITGRC took note of the data fix done by the GSTN.

5.d (2)
S.
No.
Issue
reported
No. of
Cases
Impacte
d
Module Detailed Description Status

2.
Taxpayer
was
unable to
file
Amendme
nt of
Core-
Field
applicatio
n.
1 Registratio
n
The taxpayer EPSILON INDIA DATA
AND DIGITAL TECHNOLOGY
SOLUTIONS LLP (GSTIN:
29AAKFC0829P1ZW) had been
migrated from VAT to GST. State
Jurisdiction details were not added
during migration period.
Therefore, the taxpayer was unable to
file Amendment of Core-Field
application, as State jurisdiction details
were blank on the portal and State
Jurisdiction dropdown was disabled,
which in turn was blocking the taxpayer
from moving to the next tab
State
Jurisdiction
of the
migrated
taxpayer is
now updated
in DB and
Taxpayer can
file
amendment
application.

Discussion:

EVP, GSTN stated that the taxpayer EPSILON INDIA DATA AND DIGITAL TECHNOLOGY
SOLUTIONS LLP (GSTIN: 29AAKFC0829P1ZW) had migrated from VAT to GST. However, State
Jurisdiction details were not added during migration period. Therefore, the taxpayer was unable to file
Amendment of Core-Field application, as State jurisdiction details were blank on the portal and State
Jurisdiction drop down was disabled. He stated that State Jurisdiction of the migrated taxpayer is now
updated in database and that taxpayer can now file amendment application.
Page 385 of 463

Decision: ITGRC took note of the data fix done by the GSTN.
5.d (3)
S. No. Issue reported No. of Cases
Impacted
Module Detailed Description Status

3.
Auto Drop
proceeding
against the
Taxpayers who
have filed their
return, was not
working at CBIC
back office.
Hence, after
there migration
into GSTN BO,
this data fix is
required.


61044 ARNs
Registra
tion
1. System starts proceedings
against the Taxpayers who have
not filed returns continuously for 6
months.
2. When the Taxpayer files the
return the proceedings are auto
dropped. Taxpayer is also
provided with a functionality on
FO to drop proceedings after
returns are filed.
3. the GSTIN status was restored
to Active from Suspended but the
ARNs are still in pending
clarification status.
ARN status
updated and
proceedings
dropped.

Discussion:

EVP, GSTN stated that the Auto Drop proceedings against the Taxpayers who have filed their return was
not working at CBIC back office. In this case, the GSTIN status was restored to Active from Suspended
but the ARNs were still shown in pending clarification status.

Chairperson, ITGRC enquired as to what are Auto Drop proceedings and EVP, GSTN replied that the
system starts proceedings against the taxpayers who have not filed returns continuously for 6 months and
thereafter, when the taxpayer files the returns, the proceedings are auto dropped. In addition, the taxpayer
is also provided with a functionality on FO to drop proceedings after returns are filed.

EVP, GSTN stated that this is a coding issue and ARN is not updated whenever taxpayer files the pending
returns and upon migration of CBIC into GSTN Back Office, this data fix is required. GSTN has done the
data fix and the ARN status has been updated and proceedings dropped.

Decision: ITGRC took note of the data fix done by the GSTN.


Page 386 of 463
5(d).4
S. No. Issue
reported
No. of Cases
Impacted
Module Detailed Description Status

4.
In ITC
ledger,
the state
code is
updated
as 99
instead of
actual
state code
of the
taxpayers.
965 Tran The CBIC team issued the
Tran1 order with state code
99 during the period 18-02-
2023 to 01-03-2023. Hence
the state codes in ITC
ledger was appearing as 99
instead of actual state codes
of the taxpayer.
The same has
been corrected
in the ledger
and the issue is
also fixed
permanently
via RQM
26608.

Discussion:
EVP, GSTN stated that in this issue the Tran 1 order for the period 18-02-2023 to 01-03-2023 was issued
with State code as 99 instead of the actual State code of the taxpayers by CBIC and therefore, the same
has been corrected in the ledger and the issue has been fixed permanently by GSTN.
Chairperson, ITGRC enquired as to whether the State code is connected to ITC ledger. EVP, GSTN
replied that the same was required for distribution of credit.
Decision: ITGRC took note of the data fix done by the GSTN.

5(d).5
S. No. Issue reported No. of Cases
Impacted
Module Detailed Description Status

5.
Rectification of APL-
02. During migration
of CBIC to GSTN BO,
some appeals of center
were erroneously
allocated to state and
some tax officers also
acted upon the same.
Hence, the data fix is
required in one case as
in other 31 cases no
action was initiated by
the officer. Hence,
1 Appeal For the appeal
application
AD1902240009457,
the tax officer has
rejected the application
by APL 02
inadvertently. There is
no option available for
rectification of APL 02
in GST system.

The only option
Reset of
APL-02 to be
given as a
data fix.
Assignment
logic is
permanently
fixed.
Page 387 of 463
they were simply
reassigned to center
jurisdiction.
available is to give a
reset of APL 02
through data fix so that
the center officer can
reissue APL 02.

Discussion:
EVP, GSTN stated that during migration of CBIC to GSTN BO, some of the appeals of the center were
erroneously allocated to State. For the appeal application AD1902240009457, the tax officer has rejected
the application by APL 02 inadvertently and there is no option available for rectification of APL 02 in
GST system. Therefore, data fix is required in that case and in other 31 cases no action was initiated by
the officer, therefore they were reassigned to center. GSTN informed that the assignment logic is
permanently fixed.
Decision: ITGRC took note of the data fix done by the GSTN.
5(d).6
S. No. Issue reported No. of Cases
Impacted
Module Detailed Description Status

6.
Issuance of
PMT-03A for
zero amount.
This was on
account of data
loss in
transmission
from CBIC
system to
GSTN system.
13 Refund
DG systems reported that
certain PMT-03A were issued
for re-credit of ITC and in the
payload no amount was
received for these PMT-03As.
Since no amount was received.
Therefore, no re-crediting
happened to the taxpayer's
Electronic credit ledger. DG
systems requested GSTN to
delete the entries of PMT-03A
so that fresh PMT-03A's could
be issued with the correct
recredit amounts.
Data fix
required to
delete
PMT-03A
from the
system.

Discussion:
EVP, GSTN stated that DG systems had reported that certain PMT-03A were issued for re-credit of ITC
and that in the payload no amount was received for these PMT-03As. He stated that as no amount was
received for these PMT-03As therefore, no re-crediting happened to the taxpayer's Electronic credit
ledger. GSTN was requested by DG Systems to delete the entries of PMT-03A so as to issue fresh PMT-
03A's with the correct recredit amounts. GSTN informed that data fix is required to delete PMT-03A
from the system.
Page 388 of 463
Decision: ITGRC took note of the data fix done by the GSTN.

5(d).7
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status

7.
Partial
commit
happened
on click of
old reset
button in
GSTR-
3B.
1 Returns This is an old issue when there used to be
a reset button on portal.
When the taxpayer was filing the GSTR
3B for Dec 2017. Taxpayer clicked on
“Reset” button with intention to clear
liabilities posted and the submit entry in
return database. However, a rollback
happened in return database, post which
entries in ledger database were also
supposed to be rolled back. However,
this did not happen because commit issue
in a distributive environment. Hence, the
return was filed without Tax payment.
Defect was
fixed in Reset
code as part of
relaunch of
Reset button
functionality
that was
deployed to
production on
27th March
2018.


Discussion:

EVP, GSTN stated that while filing GSTR 3B for Dec 2017 the taxpayer clicked on “Reset” button with
intention to clear liabilities posted and the submit entry in return database but a rollback happened in
return database, post which entries in ledger database were also supposed to be rolled back but this did
not happen. Therefore, the return was filed without Tax payment.
GSTN informed that defect was fixed in Reset code as part of relaunch of Reset button functionality that
was deployed to production on 27th March 2018.

Decision: ITGRC took note of the data fix done by the GSTN.
5(d).8
S. No. Issue
reported
No. of
Cases
Impacte
d
Module Detailed Description Status

8.
Mismatch
in the
Annual
Aggregate
Turnover
(AATO)
56 Return Mismatch in the AATO of the
taxpayers because few records
are getting missed intermittently
during the pick-up and
processing from Hbase tables for
AATO calculation. Thus the
The permanent fix
of this issue will
be accommodated
in the scope of
AATO design
change approach
Page 389 of 463
accurate AATO could not be
updated to the MySQL master
tables. The system processes data
from GSTR 3B and CMP08
filings to calculate turnover
(AATO) of the taxpayers. The
records are stored in HBase
tables in the backend. Every
hour, a system process (periodic
bolt) calculates the aggregate
turnover and updates the MySQL
master tables. However, some
records are intermittently missed
by this hourly process, leading to
incomplete turnover data in the
MySQL tables.
CR 27001
“Changes in
computation of
aggregate
turnover” which is
currently under CR
prioritization

Discussion:
EVP, GSTN explained that the system processes messages from GSTR-3B and CMP08 filings to
calculate turnover. These messages are stored in HBASE table and every hour, system processes the
aggregate turnover and updates the master tables. However, some records are missed intermittently in this
hourly process, leading to incomplete data.
Chairperson, ITGRC enquired as to how this issue has come to light. JS, GSTCS stated that there
appeared to be a discrepancy in the turnover data.
Decision: ITGRC decided to defer the issue to the next meeting.

5(d).9
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status

9.
Mismatch
between
h-base
and
ledger
data
14 Returns 14 taxpayers have raised
tickets stating that they
have filed the GSTR 3B
return but there is a
mismatch in the data
entered vis-à-vis payment
made.
On analysis of the issue,
it was found that in certain
situations due to technical
Data fix was
completed on 9-
Apr-2024 via
ICRNo.25530
RQM: 22721
has been created
for the
permanent fix
and is in
Page 390 of 463
glitches system is storing
different values in the
HBase tables and the
Ledger entries of the
taxpayers. (The table 6 of
GSTR 3B i.e. the payment
table is auto-populated
from values in table 3 i.e.
Outward supplies and table
4 i.e. ITC Availed. Post the
payment of the liability, the
values are then posted to
the respective ledgers i.e.,
the Cash, ITC and Liability
ledgers.)
On reporting of these
values on the GST portal,
the data is thereby stored in
Hbase tables in the
backend.
Further, in some rare
cases system also allowed
the returns to be filed
without debiting the taxes
from the respective ledgers.
development.

Discussion:

EVP, GSTN stated that this issue initially came to notice through CAG audit but later on tickets were
filed by 14 taxpayers. The taxpayers have filed the return but there is a mismatch in the data entered vis-
à-vis payment made. GSTN informed that on analysis it was found that in certain situations, due to
technical glitches, the system was storing different values in the Hbase tables and the Ledger entries of
the taxpayers. He informed that on reporting of these values on the GST portal, the data is thereby stored
in Hbase tables in the backend. Also, in some rare cases system also allowed the returns to be filed
without debiting the taxes from the respective ledgers. GSTN has done the data fix and the permanent fix
is in the process.
Chairperson, ITGRC enquired as to whether such issues had come to light previously also. EVP, GSTN
replied in the affirmative and stated that the same had been brought as an agenda in the previous meeting
too covering all 5 scenarios. Chairperson, ITGRC stated that the data fix may be taken note of.
Decision: ITGRC took note of the data fix done by the GSTN.
Page 391 of 463
5(d).10
S. No. Issue reported No. of
Cases
Impac
ted
Module Detailed Description Status

10.
Taxpayer was
unable to file
GSTR-3B for
month September
2017 because
taxpayer has
submitted entries
for GSTR-4 return
for quarter Jul-Sept
and Oct - Dec 2017-
18.
1 Returns Taxpayer (GSTIN-
09BAEPA7929R1Z1) was
trying to file GSTR-3B for
month September 2017
where system gives the
error “Something seems to
have gone wrong while
processing your request.
Please try again. If error
persists quote error number
RT-3BAS-9018 when you
contact customer care for
quick resolution”.
Data fix
was
completed
on 22-
May-2024
via
ICRNo.26
020.

Discussion :
EVP, GSTN stated that in this case taxpayer was unable to file GSTR-3B for month of September 2017
because taxpayer has submitted entries for GSTR-4 return for quarter Jul-Sept and Oct - Dec 2017-18.
This issue arose because the taxpayer had opted for composition scheme from 1.7.2017 and later
withdrawn from composition scheme on the same date. Hence all GSTR-4 entries in data base become
invalid.
Chairperson, ITGRC enquired as to how GSTR-4 returns were available in the database when the
taxpayer had opted for composition scheme on a particular date and also withdrawn from it on the same
date. He suggested that the agenda be deferred till the next meeting when the same could be re-submitted
with clarity.
Decision: ITGRC decided to defer the issue to the next meeting.

5(d).11
S. No. Issue
reported
No. of Cases
Impacted
Module Detailed Description Status

11.
Deductors
were not
able to
file
GSTR-7
2 Returns GSTR7 users (Deductor) were
not able to file the GSTR-7
return form for the month of
September and October 2023.
System shows the error
Data fix
was
completed
on 27-
June-2024
Page 392 of 463
return
form.
RET791135 i.e. “No action
taken on TDS details rejected by
counter party”.
via
ICRNo.26
683.

Discussion:
EVP, GSTN stated that this issue arose because deductors were not able to file GSTR-7 returns for the
months of September and October, 2023 as no action had been taken on TDS details rejected by the
counter party.
JS, GSTCS enquired why September return could not be filed when record had been rejected in June,
2023. EVP, GSTN stated that it might have been due to late filing of return.
Chairperson, ITGRC enquired as to why the issue cropped up and stated that the issue may be deferred till
the next meeting when GSTN could clarify the issues raised by JS, GSTCS.
Decision: ITGRC decided to defer the issue to the next meeting.

6(d).12
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status

12.
GSTR6 &
GSTR9
users
have filed
the
respective
returns
form but
in the
portal
status is
showing
as ‘Not
Filed’
2 Returns Taxpayer
(24RKTA05807E1D9)
has filed the GSTR6
return form but in the
portal, status is still not
filed.
Taxpayer
(33ATRPS6591C2Z7) has
filed the GSTR9 return
form but in the portal,
status is not updated.
Data fix was
completed on 22-
May-2024 via
ICRNo.25940 for
GSTR6.
Data fix was
completed on 6-June-
2024 via
ICRNo.26330 for
GSTR9.
RQMNo.21228 has
been raised for the
permanent fix which
is under progress.

Discussion:
EVP, GSTN stated that the 02 taxpayers have filed the respective returns but the status is being shown as
“not filed” in the portal. He stated that there should be two entries - one should be in Ledger table and
other should be in Return Filing Status table. Entries got posted to ledger tables, but the status of filing
Page 393 of 463
were not updated in the Hbase table. GSTN has done the fix in these 02 cases and permanent fix is in
progress.
Decision: ITGRC took note of the data fix done by GSTN.

5(d).13
S. No. Issue
reported
No. of
Cases
Impacted
Module Detailed Description Status

13.
Data is
not
reflecting
in Table
7J of
PDF of
GSTR9
Return
Form.
Same
data is
not
reflecting
in
GSTR9C
Return
Form in
table 12
E.
91 Returns In GSTR 9 Return Form,
Resultant difference of Table 6
column O(Total ITC
availed)and Table 7column
I(Total ITC Reversed) is to be
put/displayed for Table 7
column J(Net ITC Available
for Utilization (6O - 7I) )
which must be displayed on UI
and the Preview Draft GSTR9
PDF/ Excel as well.
The 7J data is further used in
GSTR9C Return Form. Post
the correction, 7J Data will be
stored in Hbase and displayed
to the user correctly which will
be further used in GSTR9C
Return Form.
The permanent fix
was deployed on
production via
RQM: 25857,
ECR 23365 on 2-
Nov-2023.
These are older
cases prior to
permanent fix for
which data fix
was completed on
4-June-2024 via
ICRNo.26333.

Decision: ITGRC decided to defer the agenda item and also the rest of the issues listed in the agenda to
the next meeting in view of paucity of time. Chairperson, ITGRC directed that the next meeting of
ITGRC may be held at the earliest possible.
Page 394 of 463
Annexure-1

Centre:
i. Member (GST), CBIC – Sh. Shashank Priya (Chairman, ITGRC)
ii. Additional Secretary, DoR – Sh. Vivek Aggarwal
iii. Pr. Chief Commissioner, CGST, Delhi Zone – Sh. Rajesh Sodhi
iv. Pr. DG, DG (Systems) – Sh. Yogendra Garg
States:
i. Additional Commissioner, Excise and Taxation, Haryana – Dr. Hemant Kumar
ii. Additional Commissioner, State Tax, Gujarat – Sh. Milind Kavatkar
iii. Additional Commissioner, State Tax, Tamil Nadu – Sh. M. Ravi
iv. Special Commissioner, State Tax, West Bengal – Sh. Aashish Mukhergee
v. Additional Commissioner, State Tax, West Bengal – Sh. Joyjit Banik
vi. Additional Commissioner, State Tax, West Bengal – Ms. Srobona Bose Datta
GST Council Secretariat:
i Additional Secretary, GSTCS- Sh. Pankaj Kumar Singh
ii Joint Secretary, GSTCS- Ms. Ashima Bansal
iii Joint Secretary, GSTCS- Ms. B. Sumidaa Devi
iv Under Secretary, GSTCS- Ms. Reshma R Kurup

Special Invitee:
i. Executive Vice President, GSTN- Sh. Dheeraj Rastogi
Page 395 of 463
Annexure-2

Agenda on Data Fix issues
Technical Issues Requiring Data Fix of the Processed Incorrect Data through Backend
Utilities
The changes in GST law / Rules, the representations received from taxpayers and
other stakeholders require alterations to be continuously made in the GST System. GSTN
has therefore adopted an agile methodology of developing applications for GST System
keeping it modular to handle frequent changes in law and rules incorporated in a running
application. This has necessitated integrating all new application changes downstream being
dependent on the module undergoing the change and led to following concerns:

 Some corner scenarios owing to varying taxpayer actions and system behaviour,
when subjected to heavy load, go unhandled leading to inconsistent data persisting
in GST System.
 The data inconsistencies vary from ledger getting improper debits/credits, the return
details stored in the system having incorrect information relating to situations where
an irreversible commit has happened in the database.
 No option available to taxpayer to seek remedy in GST System leading to a need of
performing data fixes through auditable utilities.

These issues generally have been noticed after

 A complaint is raised by taxpayer/ tax officer
 Result of a periodic internal and external audits.

In order to resolve these issues, the processed incorrect data requires fixing, collecting
correct data besides solving the software/platform issues being faced by respective
stakeholders. Accordingly, GSTN has initiated fixing of technical issues identified, as per
the SOP approved by the ITGRC in the15th meeting held on 12/08/2021, which is as below:

i. Analysis of data discrepancy.
ii. Confirmation of discrepancy sought from MSP.
iii. Upon confirmation, utility to be created by MSP to extract similar cases from GST
System data.
iv. A root cause analysis conducted to fix the issue and implemented by MSP in
consultation with GSTN to rectify data inconsistency.
v. Scripts created for data fix and tested in multiple cycles by MSP and GSTN.
vi. Approval note presented to competent authority to fix the issue.
vii. After approval, audit entries created for each change affecting the data.
Page 396 of 463
viii. Scripts executed and post execution state of data stored for reference later.
ix. List of all such changes to be presented and explained to GST policy wing & ITGRC and
periodic internal audit also to be undertaken.
Data Fix cases are accordingly presented to ITGRC for deliberations and decision
as mentioned in the attached Annexure.
Page 397 of 463
Annexure
Technical Issues Requiring Data Fixes through Backend Utility
(Period -01st Nov 2023 to 31st Mar 2024)
Cases Requiring Internal Approval of SVP, EVP/CEO or Post facto Approval of ITGRC
No Financial Implication
S.
No.
Modul
e
Issue
reporte
d By
Issue in Brief Detailed
Description
Appr
oved
By
Date
of
Appr
oval
No.
of
Cas
es
Imp
acte
d
Fina
ncial
Impl
icati
on (
Yes/
No)
Corr
ect
Data
Kno
wn /
Not
Kno
wn
Status
1
Registr
ation
Taxpay
ers
Tickets
Taxpayers are
unable to select
the Composition
opt out date
from the
Previous
Financial Year
though their
turnover has
exceeded in the
previous FY.
Below are the
Taxpayers
details that are
impacted :
1.
27AABPG4719
M2ZK,
2.
07BBRPS2420P
1Z0,
3.
24ADPPA8651
F1ZL,
4.
27AFHPJ5769D
1Z9
Circular No.
CBEC-
20/16/04/2018-
GST dt
31.12.2018
provided that date
of withdrawal
from composition
scheme may not
be prior to the
commencement of
FY in which such
intimation/applica
tion for
withdrawal is
being filed.
Few tickets
pertaining to such
composition
taxpayer who had
crossed the annual
aggregate
turnover in 4th
quarter of
pervious FY
2022-23 but
taxpayer got to
EVP
(Ser.)
20-
11-
2023
4 No
Data fix
done for
such
taxpayer
to enable
them for
filing
their
returns for
past
period.
Page 398 of 463

Taxpayers are
unable to select
the Composition
opt out date
from the
Previous
Financial Year
though their
turnover has
exceeded in the
previous
FY.Below
GSTINs are
impacted :
1.
27ACEPK0771
E2ZU
2.
24AAFFH6444
Q2ZW
3.
24AFEPJ9521J
2ZE
4.
19AQCPD6469
N1ZA
5.
27AEGPM9692
G2ZW
6.
03BTUPK6238
C1ZN
7.
27ADLFS8724
K1ZD
8.
09AFJPY5645
M1ZG
9.
32ANIPR1176
M2ZN
know this fact
when he was
trying to file
CMP-08 for the
period of Jan-
March quarter of
FY 2022-23 in
April’23 i.e in the
subsequent FY
2023-24.
As a result ,
Taxpayers wanted
to opt out of
composition
scheme from the
last quarter of FY
2022-23 but the
maximum passed
date was provided
as opt out date
within current FY
on portal.
Therefore, these
taxpayers miss the
opportunity for
opting out in FY
2022-23. Though,
they were not
qualified to
continue the
composition from
the last quarter
2022-23, they are
not able to apply
for withdrawal
vide Rule-6 (2).
Due to this
implementation of
the directions in
the circular on the
portal, the
EVP
(Ser.)
09-
01-
2024
9 No
Page 399 of 463
taxpaye
rs
Tickets
Taxpayers are
unable to select
the Composition
opt out date
from the
Previous
Financial Year
though their
turnover has
exceeded in the
previous FY.
1.33AIZPD8886
C2ZQ
2.27AABPG471
9M2ZK
3.07BBRPS242
0P1Z0
4.24ADPPA865
1F1ZL
5.27AFHPJ5769
D1Z9
6.27ACEPK077
1E2ZU
7.24AAFFH644
4Q2ZW
8.03BTUPK623
8C1ZN
9.09AFJPY5645
M1ZG
10.
32ANIPR1176
M2ZN
following issues
are being faced by
TPs:
From the opt out
date, they are
filing returns as a
normal TP but
they are not able
to file the returns
for the 4th quarter
of 2022-23 or the
past returns
before opting out.
It has subsequent
impact of interest
and late fee.
EVP
(Ser.)
06-
03-
2024
10 No
2 Registr
ation
Taxpay
ers
Tickets
Taxpayer M/s
SHRI RAM
PRINT "N"
PACK (GSTIN-
02ABFFS4545L
1Z2) is trying to
login first time
but getting error
while generating
the OTP.
OTP is not sent to
taxpayer due to
double quotes in
the name.
Since Name have
been matched
with Income tax
name, taxpayer
was advised to fix
the name in
income tax end.
As per the advice
Taxpayer had
already updated
the name without
double quotes at
income tax end.
The same have to
be addressed in
GSTN database
through Data fix
to enable to OTP
for the user.
EVP
(Ser.)
18-
12-
2023
1 No
Data fix
done on
20.12.202
3 and
issue
resolved.
Double
quotes
have been
deleted.
Page 400 of 463
3 Registr
ation
Taxpay
ers
Tickets
Request from
Embassy of The
Bolivarian
Republic of
Venezuela (UIN
0717VEN00140
UNM) and
Embassy of
Iceland (UIN
0717ISL00057
UNV) to update
their contact
details and
email ID.
Request from
Embassy of The
Bolivarian
Republic of
Venezuela (UIN
0717VEN00140U
NM) to update
mobile number to
9205236616 and
Embassy of
Iceland (UIN
0717ISL00057U
NV) to update
their contact
details to
9311090160 and
email ID to
newdelhi@utn.is
EVP
(Ser.)
02-
02-
2024
2 No
Data fix
done and
issue
resolved.
Permanen
t fix will
get
automatic
ally
resolved
after
CBIC
migration.
4 Registr
ation
Taxpay
ers
Tickets
End date of
Registration
(GSTN:
01AAPPD3636
C3Z9) in GST
Master was
17.05.2019 as
selected by the
taxpayer,
whereas the
cancellation
date per Tax
Officer Order
was 11.06.2019.
Due to this,
taxpayer was
unable to file
return for June
2019 for
GSTR1 and
GSTR3B and
the GTSR9, also
return tile were
disabled. This
was an old case,
and the GST
master date was
needs to be
updated to
11.06.2019.
The taxpayer has
applied for self-
cancellation and
the Registration
End date was
captured as 17th
May 2019 in
GST_MSTR
table. However,
the actual
cancellation date
was 11th June
2019. Due to this,
the taxpayer was
unable to file
return for June
2019 period.
There was a gap
in the self-
cancellation
process. As per
the old
implementation, if
there was a
difference
between
cancellation date
selected by the
taxpayer at the
time of filing and
cancellation date
selected by the
authority at the
time of disposal
then master table
used to consider
REG_END_DT
as cancellation
date selected by
the taxpayer at the
time of filing in
GST_MSTR
EVP
(Ser.)
28-
02-
2024
1 No Data fix
done and
issue
resolved
Page 401 of 463
table. Based on
new business
requirement it
was decided to
change the flow in
self-cancellation
form and consider
cancellation date
and
REG_END_DT
as the date
selected by the
officer at the time
of disposal.
5 Registr
ation
Taxpay
ers
Tickets
Foreign
National is
unable to
perform
Aadhaar
Authentication.
Air India
Limited,
Maharashtra(27
AACCN6194P1
ZP)
Rule 10B of the
CGST Rules
requires
mandatory
Aadhar
Authentication of
MD or WTD for
processing of
refund of IGST
paid on export of
goods.
Accordingly, AIL
is unable to do
Aadhar
Authentication as:
- AIL does not
have any WTD
and - AIL has a
MD, who is not a
citizen of India, as
exempted from
Aadhar
Authentication
and GST portal
does not provide
any functionality
to do Aadhar
Authentication of
foreign national
EVP
(Ser.)
21-
03-
2024
1 No Data fix
done and
issue
resolved
6 Cash
Ledger
Basis
on the
report
generat
ed at
GSTN
Correction in
cash ledger
balance due to
credit/debit
happened
simultaneously.
The issue has
occurred due to
debit and credit
entry happening
simultaneously in
the cash ledger,
due to which
balance was not
updated properly
for 7 taxpayers.
These 7 cases
pertains to the
period - Jul 2023
to Oct 2023.

Reason
It is happening
EVP
(Serv
ices)
05.12
.2023
7 No.
Total
amou
nt
credi
ted to
cash
ledge
r:
18,68
6 /-
(CG
ST
TAX
AMT
: Rs.
10,41
Kno
wn
Data fix
was done
on 15 Dec
2023 via
ICR#2385
6.
Permanen
t fix is in
process
through
CR
21982.
Page 402 of 463
due to defect in
the application
which is being
looked after
separately.
7/-,
CGS
T
FEE
AMT
: Rs.
825/-
,
SGS
T
TAX
AMT
:
Rs.6,
553/-
,
SGS
T
FEE
AMT
:
Rs.8
25/-)
7 GSTR-
3B
Taxpay
er has
raised
ticket#1
089547
9
Taxpayer (Riso
India Ltd) has
already filed
their respective
GSTR-3B
returns but they
have reported a
mismatch in
their saved and
offset data.
Taxpayer has
done offset but
filing status not
updated with
'FRZ' in the
Return Filing
Status table and
taxpayer has done
the NIL filings.
Taxpayer has
done offset on
19th April 2023
and has done nil
filing on 11th
May 2023.
GSTIN:
33AADCR4540C
1ZW
Return period:
Mar, 2023

Reason
Taxpayer has
done offset, and
Ledger gets
inserted but filing
status was not
updated with
'FRZ' value due to
database
connectivity loss.

As a next step,
taxpayer opted
‘yes’ in
questionnaire
page for nil filing
EVP
(Serv
ices)
25.01
.2024
1 No Kno
wn
Data fix
was done
on 30 Jan
2024.
RQM#22
721 is
raised for
permanent
fix and is
in
developm
ent.
Page 403 of 463
of GSTR-3B and
was able to
complete the NIL
filing. As a part of
NIL filing
process, ‘Y’
questionnaire
values updated in
Hbase whereas no
updates happen in
the ledger tables.
This will result in
mismatch
between hbase
and ledger.
8 GSTR-
9
Taxpay
ers
have
raised
tickets#
116287
86,1174
9140,11
747138,
117406
47,1173
8421
GSTR9 Post
Filing behaviour
- Entry posted to
ledger Table but
not posted in
FILING Table.
Taxpayers have
filed the GSTR9
form for
FY:2018-19 &
2022-23 but status
was still not filed
on portal.

Reason
Entries got posted
to ledger tables,
but corresponding
records were not
updated from
'Return To FIL' to
'FIL' in 'Return
Filing Status'
table in return
database.
SVP
(Serv
ices)
20.03
.2024
5 No Kno
wn
Issue has
been fixed
on 29 Mar
2024 via
ICR#2526
5.
RQM:212
28 is
under
progress
for
permanent
fix.
9 GSTR
6
taxpaye
rs
raised
Ticket
GSTR6 to
GSTR2A Data
Reflection
Problem
Statement

This is for the
R2A data
population issue
in which ISD
invoices are not
reflecting in
GSTR2A form
when uploaded
from GSTR6
form till February
2022 return
period.

While adding the
multiple invoices
through offline
utility, due to the
bug in code (for
loop ended in the
wrong place),
only the last
invoice was
getting saved in
EVP
(Serv
ices)
Multi
ple
Dates
333 No Kno
wn
Permanen
t fix has
already
gone to
productio
n through
RQM#22
445 via
ECR#153
37 on
15th
Feb,2022.
Team is
working
on utility
for One
Go Fix for
all such
cases that
pertains
prior to
16th Feb
22 via
RQM
26996.
Page 404 of 463
ISD_UNIT_Relati
onShip Hbase
table and that is
why user was
unable to view all
their invoices on
the portal.

Permanent fix has
already gone to
production
through
RQM#22445 via
ECR#15337 on
15th Feb,2022.
10 GTA Taxpay
er
raised
Ticket
update the
financial year
from ‘2024-25’
to ‘2023-24’ for
a taxpayer
having GSTIN
=
09AALCC4943
L1Z4, reference
to ticket no.
11764973
update the
financial year
from ‘2024-25’ to
‘2023-24’ for a
taxpayer having
GSTIN =
09AALCC4943L
1Z4, reference to
ticket no.
11764973. Due to
a bug in a filing of
Annexure V
functionality for a
newly registered
taxpayer, the
taxpayer was
unable to choose
ongoing FY i.e.
2023–24, and then
he chose FY
2024–25 and filed
an Annexure V.

EVP
(Serv
ices)
19-
03-
2024
1 No Kno
wn
To
permanent
ly resolve
this issue,
a code fix
has
already
been
moved to
productio
n on 14th
Feb 2024,
through
ECR
24608,
regarding
'Enable
filing of
Annexure
V for the
current
FY for the
newly
registered
GTA'.
11a GSTR
5A
Taxpay
er
raised
Ticket
Data already
submitted error
during
amendment of
invoices in R5A
Taxpayer is
unable to amend
the invoices for
previous return
periods in the
current return
period.

TP has amended
the record from
the previous
financial year and
saved it.
Record type status
is changed to ‘A’
in the backend.
Before filing the
Gstr5a that saved
amended record
has been deleted
EVP
(Serv
ices)
Multi
ple
Dates
2 No Kno
wn
Data Fix
Done
Page 405 of 463
by taxpayer, and
then in the next
return period, the
‘Data already
submitted’ error is
coming up, while
going for
amending the
same record.

Record type status
is changed to ‘A’
in backend and
hence ‘Data
already
submitted’ error is
coming in UI due
to design issue.

Permanent fix is
taken care in
ongoing CR
25039
11b GSTR
1
Taxpay
ers
raised
Ticket
Unable to
amend
B2C(others)
record
B2CS
Amendment
already exists
for the original
month in
different return
period
When taxpayer is
trying to amend
B2C (other)
record getting
error "B2CS
Amendment
already exists for
the original month
in different return
period".

As per analysis
user did DELETE
activity after
amending record.
But we have
found that
AMDBL_PRD
Column value is
holding
“amendable return
period” in
B2C_SUMMAR
Y table due to
which user is
unable to amend
again.

Since the taxpayer
has deleted the
amended invoice
before filing, data
fix have to be
done for 43
taxpayers to
remove the entries
for these
EVP(
Tech)
05-
12-
2023
43 No Kno
wn
Data Fix
Done
Page 406 of 463
documents which
are saved in
Hbase but not
included in filing,
so that taxpayer
can amend the
document

RQM No is
25474.
12 GSTR
1
Taxpay
er
raised
Ticket
After Filing
GSTR1 during
032023 invoices
are not visible.
Receiver unable
to claim ITC in
GSTR-2B.
During the peak
filing period of
GSTR-1, a
situation unfolded
in the production
environment
where 1
Taxpayer, who
conducted
multiple save
actions.
Subsequently, the
user then initiated
a reset process,
which was still in
progress at that
point. Despite this
ongoing reset, the
taxpayer
proceeded to save
and file for the
return period
032023.

In an unexpected
turn of events, the
previous reset
operation that was
still processing
was successfully
executed after the
filing had taken
place. This led to
the removal of
data pertaining to
GSTR1,
GSTR2B, ITC,
and GSTR9 from
the underlying
HBASE table.

GSTR1-
INVOICE_DTL,
Invoices,
INV_RELATION



GSTR2B/ITC-
GSTR2B_FORM
EVP(
Servi
ces)
04-
11-
2023
1 No Kno
wn
Data Fix
Done.
Team is
working
on
Permanen
t fix via
RQM
24995.
Page 407 of 463
_SUMMARY,
INVOICES_2B,
NOTES_2B



GSTR9-
ANNUAL_RETU
RN_DTL
13a TRAN Taxpay
ers
Taxpayer facing
issue while
filing GSTR3B
getting error
"You have
submitted
TRAN-1 but
have not filed it"
Taxpayers who
have submitted
but not filed their
TRAN-1 return
from 01-07-2017
to 28-09-2022 got
the electronic
ledger credited on
submitting the
TRAN-1 return
instead of getting
Electronic ITC
Ledger credit
after TRAN-1
return filing.
Taxpayer opted
for composition
scheme in 2017 &
became normal
taxpayer in 2022,
when same
taxpayer is filing
GSTR3B now,
taxpayer is getting
the below error
"You have
submitted TRAN-
1 form but have
not filed it. You
are requested to
file the same
before submitting
this return. If
error persists
quote error
number RT-
3BAS1055 when
you contact
customer care for
quick resolution"
while filing the
GSTR-3B.
EVP
Tech
and
Servi
ces
04-
11-
2023
1 No Kno
wn
Page 408 of 463
13b TRAN Taxpay
ers
Taxpayer facing
issue while
filing GSTR3B
getting error
"You have
submitted
TRAN-1 but
have not filed it"
Taxpayers who
have submitted
but not filed their
TRAN-1 return
from 01-07-2017
to 28-09-2022 got
the electronic
ledger credited on
submitting the
TRAN-1 return
instead of getting
Electronic ITC
Ledger credit
after TRAN-1
return filing.
Taxpayer opted
for composition
scheme in 2017 &
became normal
taxpayer in 2022,
when same
taxpayer is filing
GSTR3B now,
taxpayer is getting
the below error
"You have
submitted TRAN-
1 form but have
not filed it. You
are requested to
file the same
before submitting
this return. If
error persists
quote error
number RT-
3BAS1055 when
you contact
customer care for
quick resolution"
while filing the
GSTR-3B.
EVP
Tech
and
Servi
ces
18-
12-
2023
4 No Kno
wn
13c TRAN Taxpay
ers
Taxpayer facing
issue while
filing GSTR3B
getting error
"You have
submitted
TRAN-1 but
have not filed it"
Taxpayers who
have submitted
but not filed their
TRAN-1 return
from 01-07-2017
to 28-09-2022 got
the electronic
ledger credited on
submitting the
TRAN-1 return
instead of getting
Electronic ITC
Ledger credit
after TRAN-1
return filing.
Taxpayer opted
for composition
scheme in 2017 &
EVP
Tech
and
Servi
ces
24-
01-
2024
1 No Kno
wn
Page 409 of 463
became normal
taxpayer in 2022,
when same
taxpayer is filing
GSTR3B now,
taxpayer is getting
the below error
"You have
submitted TRAN-
1 form but have
not filed it. You
are requested to
file the same
before submitting
this return. If
error persists
quote error
number RT-
3BAS1055 when
you contact
customer care for
quick resolution"
while filing the
GSTR-3B.
14 Refund Taxpay
er
We, ONGC
Petro additions
Limited
(‘OPaL’ or
‘We’), having
GSTIN
24AAACO9200
B3Z2 are
registered
Special
Economic Zone
(SEZ) unit
located in
Bharuch,
Gujarat. The
export ledger
balance is
negative to the
amount of INR
1,11,42,985.35
under IGST
head. The
taxpayer has
made payment
under Table
3.1(a) instead of
table 3.1(b),
therefore, the
export ledger is
showing
negative
balance. The
negative value
(deficit) in the
export ledger is
not allowing
This is related to
grievance raised
by M/s OPaL
(ONGC Petro
additions
Limited), a SEZ
unit located in
Gujrat. The export
ledger of this
taxpayer is deficit
to the amount of
Rs
1,11,42,985.35.

During FY 18, the
taxpayer has
reported the
supplies made to a
DTA unit located
in Gujrat as SEZ
supplies. As per
the taxpayer, GST
system was not
accepting the
DTA’s GSTIN for
IGST payment as
both are in the
same State. To
disclose the
correct liability
under IGST, these
supplies have
been reported as
“SEZ supply with
payment” on GST
portal while filing
To be
place
d
befor
e
ITGR
C for
appro
val.
1 No,
Beca
use
paym
ent
again
st
liabil
ity is
alrea
dy
made
in
anoth
er
head.
Kno
wn
Data Fix
will be
given in
the export
Ledger to
offset the
negative
balance
Page 410 of 463
further eligible
invoices to get
transmitted to
ICEGATE
GSTR 1. The
taxpayer has
made the payment
in table 3.1(a) of
GSTR 3B and
also the same has
been verified by
the technical
team.

As the supplies
have been
reported as ‘SEZ’
supply, it has
created liability in
Export ledger.
The payment has
been done in
Table 3.1(a) and
therefore, it is not
reflecting in
Export ledger and
created the
negative balance.
The negative
value (deficit) in
the export ledger
is not allowing
further eligible
invoices to get
transmitted to
ICEGATE. The
only solution
available in this
case is to provide
offset for Rs
1,11,42,985.35 in
the export ledger.
15 Refund Taxpay
er
The export
ledger is having
negative balance
due to mistakes
committed by
taxpayer in
GSTR-1 and
this negative
balance
disallows
transfer of
eligible export
invoices to
ICEGATE for
IGST Refund.
In this case, the
“Export supplies
without
payment of
duty” are
reported as
“Export supplies
The issue pertains
to M/s IDE
Technologies
India Private
Limited (GSTIN
09AABCI9713N1
Z2). The taxpayer
has made “Export
supplies without
payment of duty”
for the period of
August 2017 and
November 2017.
However, these
supplies were
mis-reported as
“Export with
Payment” in
GSTR 1 and
created negative
balance in export
ledger. Also,
To be
place
d
befor
e
ITGR
C for
appro
val.
1 Since
the
invoi
ces
that
were
repor
ted
unde
r WP
categ
ory
didn’
t get
trans
mit
to
ICE
GAT
E as
the
Expo
Yes,
Rs.
1785
963.4
2/-
Data Fix
will be
given in
the export
Ledger to
offset the
negative
balance.
Page 411 of 463
with payment of
duty” in GSTR
1.
these supplies are
reported correctly
in GSTR 3B.As
per the claim of
the taxpayer, the
tax department
has made a
demand for the
supplies
mentioned as
“Export with
payment” which
is not paid in
GSTR 3B. The
taxpayer went for
appeal and the
demand raised by
the proper officer
was nullified by
Appellate
Authority.
Thereafter, the
taxpayer
approached GST
helpdesk for
nullifying the
negative balance
in the export
ledger to the
amount
of Rs.
1785963.42/- .
rt
Ledg
er
was
negat
ive
and
no
refun
d has
been
taken
w.r.t
those
invoi
ces.
Ther
efore
, NO
finan
cial
impli
catio
n is
seen
in
this
case.
16 Refund Writ
petition
. Filed
by
taxpaye
r in GJ
HC
The export
ledger is having
negative balance
due to mistakes
committed by
taxpayer in
GSTR-1 and
this negative
balance
disallows
transfer of
eligible export
invoices to
ICEGATE for
IGST Refund.
In this case,
DTA-SEZ (not
meant for
authorized
operation)
supply is
reported as
Export supply
instead of
domestic supply
in GSTR 1.
M/s Corrtech
(GSTIN
24AAACI8838F1
ZK) has
misreported DTA-
SEZ supplies (not
meant for
authorized
operation) as
zero-rated
supplies for the
period of
December 2018,
March 2019 and
May 2019 in
GSTR 1. It has
created negative
balance of Rs
16,67,197 in the
export ledger.
This negative
balance has
stopped further
transmission of
eligible export
invoices to
ICEGATE
belonging to the
To be
place
d
befor
e
ITGR
C for
appro
val.
1 For
July
2018,
the
GST
syste
m
will
creat
e a
back
end
fix
and
will
remo
ve
the
doub
le
liabil
ity at
the
earlie
st.
Data Fix
will be
given in
the export
Ledger to
offset the
negative
balance of
Rs
16,67,197
.
Page 412 of 463
period November
2022 to October
2023 and IGST
refund of Rs
7,23,91,175.70 is
stuck.
17 Appeal Rajasth
an State
Appeal
application filed
with Zero
disputed amount
and was
acknowledged
by the officer.
As the disputed
amount is Zero
the officer could
not issue the
final order.
This issue is
forwarded by the
State of
Rajasthan. In this
case, a taxpayer
(08AFCPD0195G
1ZS) has filed an
appeal against
Enforcement
Order with
‘disputed amount’
as Zero in Appeal
application. When
Zero amount is
entered, the
officer cannot
issue the Appeal
order ‘APL 04’.
In this case, the
officer has
mistakenly
admitted the
application also
but couldn’t issue
the final order.
EVP
(Serv
ices)
10th
Febru
ary,2
024
1 No N.A Data fix is
given to
change
the status
from
appeal
admitted
to” appeal
submitted
“ so that
officer
can reject
the
applicatio
n.
18 Appeal Delhi
State
Appeal ARN :
AD0709230003
288 was filed by
GSTIN :
07BMHPS5748
B1ZV against
Registration
Order :
ZA0712200405
17Z which was
inadvertently
rejected by the
officer instead
of accepting the
same.
A taxpayer
(GSTIN:
07BMHPS5748B
1ZV) filed an
Appeal ARN :
AD07092300032
88 against
Registration
Order :
ZA071220040517
Z which was
inadvertently
rejected by the
officer instead of
accepting the
same.The appeal
was inadvertently
rejected by
selecting the
option "I reject
the Original
Order" instead of
"I accept the
original order".
Rectification
option is not
available for
Registration
related appeals.
EVP
(Serv
ices)
20th
Febru
ary
2024
1 No N.A Data fix is
given to
reset
APL-04
for
reissuance
.
Page 413 of 463
Therefore, in this
case, the only
option was to do
reset of APL 04
from back end.
19 Return Issue in
adjustment of
excess tax paid
with RCM
liability.
Taxpayer reported
that while filing
GSTR 3B for the
month of Nov.
2022, the CGST
amount under
RCM Liability
mentioned in
table 3.1d (inward
supplies liable to
reverse charge)
was not reflecting
in Table 6
(Payment of Tax
details). Upon
analysis, it was
found that the
system was auto
adjusting
the Excess paid
tax by the
taxpayer from his
reverse charge
liability.Upon
technical analysis
it was found that
the taxpayer paid
excess tax of Rs.
7,90,126/-in July
2017 through
double debit of
cash ledger and
ITC Ledger and
the system was
built to accept the
excess tax
payment.
Over the course of
years his excess
tax collected is
getting adjusted in
the Reverse
Charge Liability
due to the
transaction code
of 90018 which
was designed for
adjustment of
negative liability,
and it can be
adjusted into only
reverse charge
liability. Hence
the system is
adjusting the
To be
appro
ved
by
ITGR
C
1 No Kno
wn
The
taxpayer
is asking
either for
a refund
of the
remaining
excess tax
collected
or to shift
the
amount to
the ITC
ledger so
that the
same can
be used
for other
than
reverse
charge
liability.
Note – If
refund is
filed by
the TP
under
Excess
payment
of Tax
category
(July,
2017) , it
will be
time
barred.
The
solution
available
is to give
the excess
paid
amount in
ITC
ledger
through
data fix.
Page 414 of 463
negative liability
with Reverse
charge CGST
only and the
remaining
negative liability
amount is ~ 4.58
lakh.
20 Return
s
As per Hon’ble
Supreme Court
order, the
taxpayer has
filed a revised
TRAN-1(new)
application as
prescribed under
Circular No.
180/12/2022-
GST dated
09.09.2022. The
taxpayer had
missed out the
cenvat credit
related to
service tax
amounting to
Rs.23,70,696/-
during filing of
old TRAN-1
application. The
tax officer vide
order dated
20.02.2023
approved the
TRAN-1 credit
of Rs.
23,56,554/- but
the said amount
has not been
credited to
taxpayer’s ECL.
As per circular
No. 180/12/2022-
GST dated
09.09.2022, the
registered
taxpayers were
given an
opportunity to file
their TRAN-
1/TRAN-2 forms
or to revise their
already filed
TRAN forms
during the two
months windows
provided from
01.10.2022 to
30.11.2022. The
back office
functionality for
passing the
TRAN orders was
designed in such
way that the
system will
automatically
deduct the earlier
claimed TRAN
credit from the
approved amount
and the remaining
TRAN credit will
be posted to the
electronic credit
ledger (ECL) of
the taxpayer on
passing of order
by Tax Officer in
back office.M/s
Escon Gensets
Pvt
Ltd.(29AAACE39
03H1ZU) had
filed TRAN forms
the old TRAN-1
application on
13.12.2017 for
carrying forward
the credit of
Rs.75,48,705/-.
The said amount
was credited to
Data
fix to
be
done
post
appro
val of
ITGR
C
1 No Kno
wn
In such
cases
where the
net
amount
was
arriving
negative
due to
filing of
TRAN
forms
with
differentia
l/missed
values,
the LC
has
already
decided
that the
tax officer
can
approve
amount
more than
the
amount
claimed
by
taxpayer
in their
revised
TRAN
forms so
that the
net
amount in
back
office can
become
equal to
the
eligible
credit and
the same
can be
posted to
taxpayer’s
ECL.
According
ly, in the
Page 415 of 463
taxpayer’s ECL.
During the two
months window
opened as per
Hon’ble Supreme
Court order, the
taxpayer has filed
a revised TRAN-
1(new). The
taxpayer had
missed out the
cenvat credit
related to service
tax amounting to
Rs.23,70,696/-
during filing of
old TRAN-1
application. The
tax officer
approved the
TRAN-1 credit of
Rs. 23,56,554/-
but the said
amount has not
been credited to
taxpayer’s ECL.
instant
case,
GSTN
can reset
the
rectified
order
from
backend
and tax
officer
may put
the higher
values in
back
office so
that the
net
amount
can
become
the
amount
approved
in order
passed by
the tax
officer.
21 GSTR-
9
Taxpay
ers
have
raised
tickets#
116409
68,1163
0952,11
764904,
117643
74,1175
9691,11
754934,
117516
55,1174
3166,11
743124,
117383
72
GSTR9 tile is
not enable for
FY:2019-
20,2020-
21,2021-22 and
2022-23
Taxpayers were
inactive at the
time of GSTR2A
processing for
GSTR-9 due to
that R2A entry for
these taxpayers
were not inserted
into the database.
Later, these
taxpayers were
active and were
trying to file the
GSTR-9 but the
GSTR9 tile was
not enabled. Due
to which, R2A
entries for the
reported taxpayers
were needed to be
inserted manually.

Reason
Taxpayers were
inactive at the
time when R2A
batch ran for the
FY:2019-
20,2020-21,2021-
22 and 2022-23
EVP
(Serv
ices)
20.03
.2024
10 No Kno
wn
Issue has
been fixed
on 29 Mar
2024 via
ICR#2525
9.

Page 416 of 463

Repetitive Issues/Issues already discussed in previous ITGRC

22 Registr
ation

Taxpay
ers
Tickets
1. Creation of
missing APOB
entries in
ADDR_DETL
for large firms.
2. RC
regeneration for
missing APOB
of large firms.
3. Data loading
from backend
for core/non-
core for large
firms having
high count of
APOB.
Below
Taxpayers are
impacted by the
data-fix
1.
08AA
ACC9762A1ZT
, CHAMBAL
FERTILISERS
AND
CHEMICALS
LTD
2.
33AA
ACS7018R1Z0,
SHRIRAM
FINANCE LTD
3.
27AA
ACB2894G1ZN
, BHARTI
AIRTEL LTD
4.
32AA
DCM4352R1Z6
MUTHOOT
VEHICLE &
ASSET
FINANCE LTD
1. End user is not
able to see list of
newly added
APOB in
amended RC as
database
transaction is not
getting completed
with in optimized
time limit as a
result master
tables are not
getting updated.
This is happening
with large firms
who are adding
400+ new APOB
in one go.
2. End user is not
able to see
amended RC as
database
transaction is not
getting completed
within optimized
time limit as a
result master
tables are not
getting updated.
This is happening
with large firms
who are adding
400+ new APOB
in one go.
3. End user is not
able to open fresh
core/non-core
application as
data from all the
master tables is
not getting loaded
with in optimized
time limit. This is
happening with
large firms who
are having high
count of APOB.
EVP
(Ser.)
24-
01-
2024
4
(Sim
ilar
issu
e
disc
usse
d
and
appr
oved
in
20th
ITG
RC)
No Data fix
done. For
permanent
fix CR
No. 26195
has been
given
which is
under
developm
ent.
Page 417 of 463
23 Registr
ation
Taxpay
ers
Tickets
Casual
taxpayers who
are having null
registration end
date in the
database are
facing issue in
returns module.
As per the current
code
implementation,
system is
updating
registration end
date as null in the
database in
following
scenarios if
cancellation order
is not passed or
has been
withdrawn. This
implementation is
present in the
system since go
live of the
following use
cases: Drop
proceedings of
Suo-moto
cancellation.
Rejection of self-
cancellation
application.
Withdrawal of
self-cancellation
application.
EVP
(Ser.)
06-
03-
2024
15
(Suc
h
case
s
have
been
appr
oved
in
20th
ITG
RC)
No Data fix
done and
issue
resolved
24a Cash
Ledger
CGST,
Tirupati
Transfer of
Cash Ledger
Amount from
Temporary
Registration to
GSTIN with
same PAN.
The challan
amount of
Rs.39,08,237/-
was deposited in
GST
No.37230000131
7ARW(Temporar
y) meant for
Advance Ruling.
This amount
cannot be used for
any other purpose
as there is no
functionality for
setting off against
any demand or
claiming refund.

Reason
The taxpayer has
ignorantly
deposited amount
in Temp ID for
Advance Ruling
through Challan
facility.
EVP
(Serv
ices)
04.11
.2024
1
(Ad
vanc
e
Ruli
ng
issu
e
has
been
disc
usse
d in
the
19th
&
20th
ITG
RC
and
were
appr
oved
.)
No Kno
wn
Functiona
lity to
restrict
payment
(more
than
required
amount)
through
Challan
for
Advance
Ruling
Temp ID
users has
been
deployed
on 06-04-
2024.
Data fix is
done for
this
particular
case.
Page 418 of 463
24b PMT-
09
Taxpay
er has
raised
ticket#1
165293
8
Credit entry
missed for
destination
GSTIN while
transferring
amount through
PMT-09 from
one GSTIN to
another GSTIN
registered on the
same PAN.

While transferring
cash amount
through PMT-09
from one GSTIN
to another GSTIN
registered on the
same PAN,
amount got
debited from
source GSTIN but
not credited into
destination
GSTIN.

Reason
Duplicate entries
coming from
CMP08 and
GSTR3B (same
timestamp) with
different source
id. Even though
there is no impact
on the balance in
‘Cash Balance’
table, these cases
might impact
PMT09 filing, due
to a check enabled
in PMT09 code to
validate the ‘Cash
Ledger Id’ in both
‘Cash Ledger’ &
‘Cash Balance’
tables.
EVP
(Serv
ices)
25.01
.2024
1 No
Amo
unt
of
Rs.
19,04
8/-
credi
ted
back
to the
taxpa
yer
Kno
wn
Data fix
was done
on 1 Jan
2024 via
ICR#2450
6.
25 CMP-
08
Taxpay
er have
raised
tickets#
115445
31,
115779
13
Taxpayer tried
to file CMP08
for Jan – March
2022 and ARN
was generated
but filing status
was not updated
to FIL. Now
while clicking
on Proceed to
file button,
taxpayer is
getting error
“The turnover
reported
exceeds the
threshold limit
for availing
composition
scheme.”
Taxpayer has
filed CMP08 for
Jan – March 2022
with taxable value
of Rs. 3537250
and with Rs.
17886
CGST/SGST tax
but Filing Status
not updated from
RTF to FIL.
Taxpayer has
aggregate
turnover of Rs.
12334295 for FY
2021-22. When
taxpayer tried
again and clicked
on save button,
previous RTF
entry got deleted
from filing status
table and while
clicking Proceed
EVP
(Serv
ices)
14.12
.2023
2
(Alr
eady
disc
usse
d
and
appr
oved
in
20th
ITG
RC)
No Kno
wn
Data fix
was done
on 21 Dec
2023 via
ICR#2403
6.
Permanen
t fix in
process
through
RQM
25635.
Page 419 of 463
to file button,
turnover error is
coming because
last quarter
turnover has been
adding twice in
GT_DETL h-base
table which
resulted in
crossing the
threshold limit of
1.5 crore.

Reason
Taxpayer tried to
file the return
during peak filing
days and issue
might have
occurred due to
high load.
Transaction was
not completed and
filing status was
not updated to
FIL. Since
turnover for last
quarter was
already posted in
the database, now
while doing
proceed to file
with same
turnover of Rs.
3537250 again,
previous 'Return
to File' entry got
deleted from
filing status table.

Now as per
system
functionality on
click of proceed
to file, due to
PAN based
aggregate
turnover
validation,
taxpayer received
turnover error
message.
Page 420 of 463
26a GSTR
1
Taxpay
er
raised
Ticket
No Document
Found Issue
1.Hbase Columns
are missing from
INV_DTL table.
So, when they try
to amend a
invoice they are
getting No
Document found
Error
2. When
Taxpayer is
validating the
statement in
Refund, system is
giving error “RF-
FCAS1007” and
not allowing to
file the Refund
EVP
(Tech
)
4531
3
17
(Alr
eady
disc
usse
d
and
appr
oved
in
18th
ITG
RC)
No Kno
wn
Permanen
t fix has
been done
through
RQM
25821 on
25th April
2024,
Night
26b GSTR
1
taxpaye
rs
raised
Ticket
MD Column
Null Issue
When Taxpayer is
validating the
statement in
Refund, system is
giving error “RF-
FCAS1007” (MD
column null issue)
and not allowing
to file the Refund.

Permanent Fix
has already been
deployed through
a ICR 25155/
RQM 26414
+E6
EVP
(Tech
)
4531
3
27
(Alr
eady
disc
usse
d
and
appr
oved
in
18th
ITG
RC)
No Kno
wn
Permanen
t Fix has
already
been
deployed
through a
ICR
25155/
RQM
26414, on
21st
March 24
Night.
27 TRAN CBIC Problem in
integration with
CBIC w.r.t
update TRAN
summary.
Due to technical
issue, whenever
the tax officers
are trying to
update the
summary, the
records get stuck
in IP/REC (the
records were
received more
than once while
the previous
record was under
execution and
hence, they were
finally not
processed being
rejected as
duplicate).
Therefore, the tax
officers are
unable to proceed
with issuing order
for TRAN, for the
respective
taxpayers.
EVP
Servi
ces
04.11
.2023
59
(Sim
ilar
case
s
have
been
disc
usse
d in
the
19th
&
20th
ITG
RC
and
were
appr
oved
.)
No Kno
wn
Data Fix
ICR to
update the
IP/REC
records to
ER so that
it can be
re-
processed
from tax
Officers
end.
Page 421 of 463

Financial Implications
S.
No.
Modul
e
Issue
reporte
d by
Issue in Brief Detailed
Description
Appr
oved
By
Date
of
Appr
oval
No.
of
Cas
es
Imp
acte
d
Fina
ncial
Impl
icati
on
(Yes/
No)
Corr
ect
Data
Kno
wn /
Not
Kno
wn
Status
1 Cash
Ledger
GSTN
Analysi
s
Issue in filing
GSTR-4 annual
due to
unsuccessful
auto-population
of data in Table
4A & 4B.
During the initial
phase of GST
implementation,
taxpayers were
allowed to make
debit in cash
ledger with
decimal values as
well. Later, as
part of
improvement it
was restricted to
whole number for
all the ledger
transactions.

Reason
Due to the impact
of earlier
implementation,
there were few
entries found with
decimal amounts
in cash balance of
the taxpayer. The
balances of the
identified cases
need to be
corrected so that
the amount could
be utilized by the
taxpayer during
the filing of return
forms.
EVP
(Serv
ices)
04.11
.2024
763 Yes.
Net
amou
nt to
be
credi
ted:
Rs.
139.6
0 /-
(CG
ST:
Rs.
87.14
/-,
SGS
T:
Rs.
77.63
/-,
IGST
: Rs.
-
25.86
/-,
CES
S:
Rs.
0.69
/-)
Kno
wn
The
balances
of the
identified
cases
were
corrected
so that the
amount
could be
utilized
by the
taxpayer
during the
filing of
return
forms. It
has been
fixed via
RQM
25366.
Page 422 of 463
2 GSTR-
3B
Taxpay
er has
raised
ticket#1
163162
0
ITC Ledger
balance is not
correct due to
double credit
and debit
entries.
Ledger has been
credited/debited
twice for the same
transaction and
the ledger has
been updated
accordingly,
thereby leading to
a loss in the
overall balance.

In the current
design of system,
there are three
types of ledgers
viz. Liability
Ledger,
Electronic Cash
Ledger and
Electronic Credit
Ledger for
keeping account
of payments and
input tax credit
respectively.

Cash Ledger is
credited on
deposit of amount
by the taxpayer
through bank
whereas the
Credited Ledger
is credited on
claiming of ITC
mainly through
returns (GSTR-3B
or GSTR-6) or
any ITC forms.

Liabilities related
to return or other
than return are
discharged by
debiting either or
both of the two
(Cash or ITC)
ledgers.

When credit is
claimed, a credit
entry is inserted in
the credit ledger
and when the
liabilities are
discharged by
utilising the credit
balance, a debit
entry is made in
the ledger.
EVP
(Serv
ices)
19.03
.2024
1 Yes,

Total
amou
nt of
Rs.
1,150
/-
(CG
ST-
Rs.
575,
SGS
T-
Rs.
575)
has
to be
re-
credi
ted to
the
taxpa
yer.
Kno
wn
Code fix
for XA
transactio
ns issue
was fixed
on 14 Nov
2018 and
Payment
API issue
was fixed
on14
March
2019.
This is old
case prior
to code
fix which
can be
fixed by
data fix.
Page 423 of 463

In this case, both
debit and credit
had happened
twice. The credit
ledger has got
double credit
entries as well as
double debit
entries, impacting
their overall
balance in the
ledger.

Reason
This has
happened due to
high load to the
system when
taxpayers were
trying to file
GSTR-3B.

In this case, the
first transaction of
taxpayer was in
progress and not
committed. Due
to this, its status
was not available,
and taxpayer
initiated another
transaction,
thinking the
previous one
failed. Both the
transactions were
now in progress at
the same time and
got committed in
parallel which has
leads to the
problem being
observed.
3 GSTR-
3B
TaxPay
er
raised
Ticket
Late Fee Waiver
in GSTr3B for 4
districts of
Tamil Nadu due
to Cyclonic
Storm
Problem
Reported: -
We are dealers
having our
principal place of
business in
Chennai. As per
Notification no.
55/2023-CT dated
20.12.23 the due
date for filing
GSTR 3B for the
month of Nov-23
was extended up
to 27.12.2023 for
districts of
EVP
(Serv
ices)
09.04
.2024
1 Yes Kno
wn
Data fix is
done
through
ICR
no.25479.
Permanen
t fix will
be done
through
RQM
26807.
Page 424 of 463
Chennai,
Tiruvallur, etc.
We had filed our
GSTR 3B for
Nov-23 on
26.12.23.
However, while
filing GSTR 3B
for Dec-23, we
are being charged
late fees of Rs.
150+150 for late
filing of Nov-23
GSTR-3B.
Request you to
kindly make
corrections so that
we can file the
Dec-23 GSTR 3B
without delay.
GSTIN :
33ARBPN6698P2
ZX
Reason:-

Due date of
GSTR3B for the
month of
November 2023
for the affected
districts was
extended from
20th December
2023 to 27th
December 2023,
but for few
taxpayer late fee
was levied in spite
of due date
extension. This
was because their
district code was
not present in
GST_MSTR table
and due to this
due date
extension was not
applicable on
them.









Page 425 of 463

Court Directions

S.
No.
Modul
e
Issue
reporte
d By
Issue in Brief Detailed
Description
Appr
oved
By
Date
of
Appr
oval
No.
of
Cas
es
Imp
acte
d
Fina
ncial
Impl
icati
on (
Yes/
No)
Corr
ect
Data
Kno
wn /
Not
Kno
wn
Status
1 GSTR-
3B
As per
order
passed
by
Hon'ble
High
Court
of
Delhi.

Ticket#
117868
00
Basis on the
decision made
by Hon’ble
Delhi Court, late
fee has to be
refunded to the
taxpayer.
In pursuance of
Order dated
18.05.2023, in
WP, Civil No.
10363 of 2022
passed by
Hon’ble High
Court of Delhi.
GSTR3B for the
month of
September 2020
and October 2020
have been filed
with payment of
late fee of Rs.
10,000/-.
Therefore, you are
requested to
refund recredit the
late fee paid.

As there is no
provision of late
fee waiver in
GSTR3B
currently,
therefore user can
be asked to pay
his late fee, and
once late fee is
paid, same can be
reversed. The late
fee which has
been paid by the
taxpayers should
be refunded to
them under the
same major head
and late fee minor
head.

As above
taxpayer already
paid the late fee,
therefore late fee
needs to be
refunded.

Reason
EVP
(Serv
ices)
05.03
.2024
1 Yes,

Total
amou
nt for
rever
sal to
the
taxpa
yer is
Rs.
20,00
0/-
(CG
ST:R
s.
10,00
0/-,

SGS
T:Rs.
10,00
0/-)
Kno
wn
Data fix
was done
on 8 Mar
2024 via
ICR#2505
5.
Page 426 of 463
Late fee has to be
refunded to the
taxpayer in
pursuance of
Order dated
18.05.2023, in
WP, Civil No.
10363 of 2022
passed by
Hon’ble High
Court of Delhi.
2a Appeal H.C
Order
receive
d via
Rajasth
an State
Officer
An appeal was
filed against a
registration
rejection order
which was
rejected by the
appellate
authority.
However, HC
allowed the
petitioner to re-
file the appeal.
Therefore, reset
was given to the
ARN to allow
re-filing of
appeal as
remand back
functionality is
not available for
Registration
Orders.
The issue in brief
is that the
taxpayer with
GSTIN
08ARJPM7935N
1ZY has filed
appeal against the
Registration order
(ZA08012304526
04) and the appeal
has been rejected
by the Appellate
authority. Against
the rejection, the
said taxpayer has
filed Appeal in
Hon’ble High
court of
Rajasthan. The
court has allowed
the petitioner to
refile the appeal
within 10 days.

As per the
existing business
process, once
appeal is filed
against an Order,
Appeal cannot be
filed against the
same order. Also,
remand back
functionality for
Appellate
authority is
available for
Demand and
Refund orders.
For Registration
and other type of
orders, it is not
available and yet
to be develop.

To comply with
the high court,
APL 04 issued
against earlier
EVP
(Serv
ices)
19th
Janua
ry,
2024
1 No N.A Appeal
status
reverted
from
acknowle
dged to
submitted
Page 427 of 463
Appeal has to be
removed from the
system.
Therefore, please
allow data fix for
this case to
comply with High
court order.
2b Appeal H.C
Order
receive
d via
J&K
State
Officer
An appeal was
filed against a
registration
rejection order
which was
rejected by the
appellate
authority.
However, HC
allowed the
petitioner to re-
file the appeal.
Therefore, reset
was given to the
ARN to allow
re-filing of
appeal as
remand back
functionality is
not available for
Registration
Orders.
The issue in brief
is that the
taxpayer with
GSTIN
01AAICA2918C1
ZD has filed
appeal against a
registration order
and the appeal
(AD01012400139
30) has been
rejected by the
Appellate
authority. Against
the rejection, the
said taxpayer has
filed Appeal in
Hon’ble High
court of J&K. The
court has directed
the Appellate
authority to rehear
the case.

As per the
existing business
process, once
appeal is filed
against an Order,
Appeal cannot be
filed against the
same order. Also,
Remand back
functionality for
Appellate
authority is
available for
Demand and
Refund orders.
For Registration
and other type of
orders, it is not
available and yet
to be developed.

To comply with
the high court,
APL 01 has to be
changed to appeal
submitted status
for the purpose of
rehearing.
EVP
(Serv
ices)
25th
Janua
ry,20
24
1 No N.A Appeal
status
reverted
from
acknowle
dged to
submitted
Page 428 of 463
Therefore, please
allow data fix for
this case to
comply with High
court order.


Page 429 of 463
Annexure-3
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Page 1 of 32
Confidential

Agenda for
54th GST Council Meeting
09th September, 2024
Volume - II





Page 2 of 32
Page 3 of 32

GST Council Secretariat New Delhi

5th Floor, Tower-II, Jeevan Bharti Building, New Delhi
09th August, 2024
OFFICE MEMORANDUM
Subject: Notice for the 54th GST Council Meeting to be held on 09th September, 2024-
reg

The undersigned is directed to refer to the above subject and to convey that the 54th Meeting
of the GST Council will be held on 09th September, 2024 at New Delhi. The schedule of the
meeting is as follows:-
• Monday, 9th September, 2024, from 11.00 A.M. onwards
2. In addition, an Officers’ Meeting will be held on 8th September, 2024 at New Delhi as
per the following schedule:
• Sunday, 8th September, 2024 from 2.30 P.M. onwards

3. The venue of the meeting, agenda items and other details for the 54th Meeting of the GST
Council and officers’ Meeting will be communicated in due course of time.

4. Kindly convey the invitation to the Hon’ble Member of the GST Council to attend the
54th Meeting of the GST Council.

Sd/-
(Sanjay Malhotra)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi
with the request to brief Hon’ble Minister about the above said meeting.
2. PS to the Hon’ble Minister of State (Finance), Government of India, North Block, New
Delhi with the request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Union Territories of Delhi, Puducherry
and Jammu and Kashmir with the request to intimate the Minister in charge of
Finance/Taxation or any other Minister nominated by the State Government as a Member
of the GST Council about the above said meeting.
4. Chairman, CBIC, North Block, New Delhi, as a permanent invitee to the proceedings of
the Council.
5. CEO, GST Network
Page 4 of 32
Page 5 of 32
TABLE OF CONTENTS
(VOLUME-II)

Sl. No. Agenda Item Page No.
6.
Performance Report of the Competition Commission of India (CCI), State Level
Screening Committee (SLSC) and DG (Anti-Profiteering) for 1st quarter of the
F.Y 2024-25 along with Performance Report of Standing Committee (SC) for 3rd
quarter and 4th quarter of F.Y. 2023-24 and 1st quarter of F.Y 2024-25 for the
information of the Council.
7-9
7.
Issues recommended by GSTN
(a) Integration of UPI, Credit Cards and Debit Card Payment Option
by Accounting Authorities 10
(b) B2C e-Invoicing Pilot Project 11
(c) Enhancement in the existing GST Return Architecture 12
8.
(a) Review of revenue position under Goods and Services Tax 13-22
(b) Status update on Compensation Cess 23-28
(c) IGST Settlement 29-32

Page 6 of 32
Page 7 of 32
Discussion on Agenda Items

Agenda Item 6: Performance Report of the Competition Commission of India (CCI), State Level Screening
Committee (SLSC) and DG (Anti-Profiteering) for 1st quarter of the F.Y 2024-25 along with Performance
Report of Standing Committee (SC) for 3rd quarter and 4th quarter of F.Y. 2023-24 and 1st quarter of F.Y
2024-25 for the information of the Council.

The performance report of Anti-profiteering authorities at various levels are as under:

2.1 Performance of Competition Commission of India (CCI) :
Opening
Balance
No. of
Investigation
Reports received
from DGAP
during the
quarter
Disposal of Cases (During Quarter) Closing
Balance Total
Disposal
during the
Quarter
No. of cases
where
Profiteering
established
No. of cases
where
Profiteering
not
established
No. of
cases
referred
back to
DGAP
Quarter 1st April, 2024 to 30th June, 2024
57 8 12 2 0 10* 53
*8 out of 10 cases which pertains to real estate sector have been sent back to DGAP for re-
investigation for re-working the profiteered amount in terms of judgement dated 29.01.2024 of the
Hon’ble High Court and remaining 2 cases pertain to non-real estate sector which have been sent back
to DGAP for re-investigation on case specific issues.

2.2 Performance of DG (Anti-profiteering):

Opening
Balance
(No. of
cases)
Receipt Disposal Mode of disposal of cases Closing Balance
(No. of cases) Report to CCI
confirming
profiteering
Report to CCI for
closure action
Quarter 1st April, 2024 to 30th June, 2024
136 13 8 7 1 141


2.3 Performance report of the Standing Committee on Anti-profiteering:

Opening Balance
(No. of cases)
Receipt Disposal Closing Balance
(No. of cases)
Page 8 of 32
Quarter 1st October, 2023 to 31st December, 2023
59 104 46 117

Quarter 1st January, 2024 to 31st March, 2024
117 53 81 89

Quarter 1st April ,2024 to 30th June, 2024
89 77 38 128

2.4 Performance report from the State Level Screening Committee:

Opening Receipt Disposal Closing
Balance (No. of
cases)
Cases referred to
Standing
Committee
Cases Rejected Balance
(No. of
cases)
Quarter 1st April, 2024 to 30th June, 2024
66 111 1 3 173
*Report from the Arunachal Pradesh, Bihar, Haryana, Karnataka, Kerala, Manipur, Meghalaya,
Mizoram, Tamil Nadu and Tripura State Screening has not been received

3. During the quarter, CCI has undertaken the following activities/initiatives-
(i). The Quarterly Performance report for the quarter 1st April, 2024 to 30th June, 2024
is submitted as under:-
i. The mandate to examine profiteering has been vested with Competition Commission of
India (CCI) w.e.f. 01.12.2022, as per the Notification No. 23/2022- Central Tax dated
23.11.2022 issued by Central Board of Indirect Taxes and Customs, Department of
Revenue, Ministry of Finance. The required quorum in the CCI to proceed with the anti-
profiteering matters has been restored w.e.f. 23.05.2023 with the joining of the
Chairperson. Proceedings in anti-profiteering cases has commenced w.e.f. 22.06.2023
and the Commission has passed 46 orders in anti-profiteering cases till 30.06.2024.
ii. 2 Final Orders have been passed by the Commission during the quarter ending on
30.06.2024. As on 30.06.2024, 53 cases of anti-profiteering are pending with
Commission.
During the quarter ending on 30.06.2024, 8 cases of real estate sector have been sent
back to DGAP for re-investigation for re-working the profiteered amount in terms of
judgement dated 29.01.2024 of the Hon’ble High Court and 2 cases pertaining to non-
real estate sector have been sent back to DGAP for re-investigation on case-specific
issues.
Page 9 of 32
iii. Eight Ordinary meetings of the Commission were held during the quarter ending on
30.06.2024. Therefore, total 36 meetings were held by the Commission w.e.f. 01.12.2022
till 30.06.2024.
iv. 12 hearings in 6 cases were accorded by the Commission during the quarter ending on
30.06.2024. In total 43 hearings were given by the Commission w.e.f. 01.12.2022 till
30.06.2024
v. W.e.f. 01.12.2022 till 30.06.2024, the Commission has forwarded 138 complaints to the
respective Authorities for further necessary action. For the quarter ending on 30.06.2024,
out of 11 complaints, 5 complaints relating to profiteering in terms of Section 171 of the
CGST Act, 2017 were forwarded to respective Screening Committees/Standing
Committee for further action/examination and 6 complaints which related to other
GST/Enforcement issues were forwarded to the Jurisdictional State & Central GST
Commissioners/Chief Commissioners for necessary action.
4. Accordingly, the Performance Report of Competition Commission of India (CCI), SLSC and
DG, Anti-Profiteering for 1st Quarter (April-June) of the F.Y 2024-25 and Performance Report of SC
for the 3rd Quarter (October-December) and 4th Quarter (January-March) of F.Y. 2023-24 and 1st
Quarter (April-June) of the F.Y 2024-25 are placed before the GST Council for information.
Page 10 of 32
Agenda Item 7: Issues recommended by GSTN
Agenda Item 7(a): Integration of UPI, Credit Cards and Debit Card Payment Option by
Accounting Authorities
1. GSTN has enabled additional payment options - UPI, credit card, and debit card - for tax payments
on the GST portal, in addition to the already available option of payment through net banking.
However, the integration of these three new payment options also requires preparedness on the part of
the accounting authorities of the States/UTs.

2. Currently, seventeen States/UTs namely Assam, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh,
Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan,
Tripura, Uttar Pradesh, and West Bengal have successfully integrated these new options. As a result,
only taxpayers registered in these States/UTs are able to use the new payment options.

Proposal before the GST Council

3. The remaining States/UTs are requested to expedite the integration of the three additional payment
options namely - UPI, credit card and debit card.










Page 11 of 32
Agenda Item 7(b): B2C e-Invoicing Pilot Project
1. Background
1.1 The Goods and Services Tax (GST) framework has successfully implemented e-invoicing for
Business-to-Business transactions. This system has now reached a considerable level of maturity and
has proven to be a robust tool for improving tax compliance, reducing errors and facilitating auto
population of GSTR-1 for faster filing of returns. Given the maturity of B2B e-invoicing, it is
proposed to consider extending this digital transformation to Business-to-Consumer (B2C)
transactions.
2. Proposal for B2C e-Invoicing Pilot Project
2.1 Building upon the learnings from the B2B e-invoicing system, it is proposed to start a pilot project
for B2C e-invoicing. This pilot project would be implemented on a voluntary basis in selected sectors,
in collaboration with willing States/UTs. The primary objective is to gather valuable insights and
assess the feasibility and impact of B2C e-invoicing in the Indian context.
3. Benefits of B2C e-Invoicing
3.1 The implementation of B2C e-invoicing is expected to bring several benefits to taxpayers,
consumers and tax administration. It would promote environmental sustainability by reducing paper
usage through digital invoices. The system would help control tax evasion and improve compliance in
B2C transactions. It would also lower the transaction costs, bringing in cost efficiency for businesses.
Consumers would be able to easily verify the authenticity of their bills. It can also be used for GST
refunds for foreign tourists in future. Thus, there are multiple benefits for the economy from B2C e-
invoicing.
4. Proposal before the GST Council
4.1 In view of the above, the GST Council is requested to kindly
(i) accord in principle approval for initiating the B2C e-invoicing pilot project on a voluntary basis;
(ii) direct Law Committee to propose necessary amendments in the law to enable the same and
(iii) authorise the GSTN Board to prepare and finalise the commercial model for this.

Page 12 of 32
Agenda Item 7(c): Enhancement in the existing GST Return Architecture
Background: ITC Reclaim Ledger:
To facilitate the taxpayers in accurate reporting of reversal and reclaim of ITC a new ledger namely
Electronic Credit and Re-claimed Statement (ITC Reclaim ledger) was introduced on the GST portal
for each return period, starting from August 2023. Taxpayers were provided a facility to report their
Opening Balance in the said ledger and were also given 3 opportunities to amend the same till 29th
Feb 2024. Therefore, an alert message comes in case taxpayer attempts to re-claim excess ITC than
reversed however, the taxpayer is allowed to file its Form GSTR-3B. Further, Law Committee held on
23.08.2024 decided that the taxpayers may be given one more opportunity to declare opening balance
till 31.10.24 and to amend the same till 30.11.2024.
Background: RCM Ledger:
Further, the taxpayer reports its liability under the reverse charge in Table 3.1.d and claims
corresponding ITC in Table 4A2 and Table 4A3 of GSTR-3B. Due to return being editable taxpayer
can avail excess ITC than the liability paid and file its return in form GSTR-3B. Therefore, as per
decision of Law Committee on 18.03.2024, a running RCM ledger has been developed wherein the
RCM liability and its corresponding ITC in would be monitored in the system and the taxpayer would
be given a warning message in case of availing excess ITC than paid in GSTR-3B. Law Committee,
in its meeting on 23.08.24 decided that till 31.10.24 the taxpayers may be given time to declare their
opening balance of unclaimed or excess claimed ITC on reverse charge basis and opportunity to
amend the same in case of any mistakes till 30.11.2024.
Benefit to the Taxpayers:
Implementation of ITC re-claim ledger and RCM ledger will reduce the mismatch issues on account
of ITC and thus will reduce the notices issued to this effect.
Invoice management System (IMS):
Under the GST regime monitoring of ITC is not available at invoice level, it is being monitored at
ledger level. Resultantly, various mismatches happen which lead to various notices to the taxpayer.
There is no platform available to the taxpayer to accept, reject or to rollover any invoice, if required.
To enable taxpayers to avail the correct ITC, a functionality to allow the taxpayer to accept, reject or
keep the invoices pending in the system called the Invoice Management System (IMS) has now
been developed. IMS will also provide a communication platform between supplier and recipient, so
that at invoice level correction could be carried out, if pointed out by the recipient by way of rejection.
5. Proposal before the GST Council:
The Council is requested to kindly
(i) take note of the above developments related to ITC re-claim ledger, RCM ledger and IMS;
(ii) approve the above time lines of opportunity given for declaration of opening balance and
amendment thereof in ITC re-claim ledger and RCM ledger and
(iii) further authorise the Law Committee to revise the time lines if necessary. This would present
an opportunity in due course of time to prevent erroneous claim of ITC and will reduce
erroneous return filling.
Page 13 of 32
Agenda Item 8 (a): Review of revenue position under Goods and Services Tax

1. The Figure below shows the trend and Table 1 shows the details of the collection in Jan’24 –
July’24 vis-à-vis Jan’23 – July’23.

Figure 1: Monthly gross GST collection (in ₹ lakh crore)


Table 1: Monthly gross GST collection (₹ crore)
GST Collection Jan’24 Feb’24 Mar’24 Apr’24 May’24 Jun’24 Jul’24
CGST 32,685 31,785 34,532 43,846 32,409 32,627 32,386
SGST 40,895 39,615 43,746 53,538 40,265 40,715 40,289
IGST 88,550 84,098 87,947 99,623 87,781 87,310 96,447
Domestic 48,952 45,505 47,625 61,797 47,902 47,270 49,437
Imports 39,598 38,593 40,322 37,826 39,879 40,040 47,009
Comp Cess 11,976 12,839 12,259 13,260 12,284 13,160 12,953
Domestic 11,173 11,854 11,263 12,252 11,207 12,188 11,923
Imports 803 984 996 1,008 1,076 972 1,029
Gross Total 1,74,106 1,68,337 1,78,484 2,10,267 1,72,739 1,73,812 1,82,075
Less – Refunds
(Domestic +
Imports)
19,255 17,810 13,891 18,507 28,410 19,946 16,283
Net GST Collection 1,54,851 1,50,527 1,64,593 1,91,760 1,44,329 1,53,866 1,65,792

1.57 1.49 1.60
1.87
1.57 1.61 1.651.74 1.68 1.78
2.10
1.72 1.74 1.82
0.00
0.50
1.00
1.50
2.00
2.50
Jan Feb Mar Apr May Jun July
GST Collection in Jan'23 - July'23 GST Collection in Jan'24 - July'24
Page 14 of 32
2. Table 2 shows the IGST collected, refunded, and settled/apportioned during FY 2024-25 till
July, 2024.
Table 2: IGST Collection/Settlement/Apportionment/Refund in FY 2023-24 & 2024-25
(Figures in Rs. Crore)
# Particulars 2023-24 2024-25
1 Collections (+) 10,22,280 3,66,725
2 Recovery from IGST Ad-hoc apportionment (+) - -
3 Refunds (-) 1,46,730 60,468
4 Settlement (-) 8,99,067 3,17,367
i. CGST 4,87,039 1,71,665
ii. SGST 4,12,028 1,45,702
5 Ad-hoc Settlement (-) -18,000 -
i. CGST ad hoc -9,000 -

ii. SGST ad hoc -9,000 -
6 Net (1+2-3-4-5) -5,516 -11,110
Source: Pr. CCA, CBIC

Compensation Fund
3. As per provision of GST (Compensation to States) Act, 2017, the Compensation Cess
collected since implementation of GST w.e.f. 01.07.2017 till July, 2024 and the compensation
released till July, 2024 are shown in the table below:
Table 3: Compensation Cess collected and compensation released as on 31.07.2024
(Figures in Rs. Crore)
2017-18 2018-19 2019-20 2020-21 2021-22
2022-23
2023-24 2024-25#
Opening
Balance
- 21,466 47,271 55,736 9,734 11,501 11,018 18,393
Add:
Collected
(net)
62,612 95,081 95,551 85,191
1,04,609 1,25,863 1,43,109 50499
Less:
Released
41,146 69,275 1,20,498 1,36,988 97,500 1,49,168 44,946 4407
Page 15 of 32
Add:
Transfers
from CFI
to Cess
Fund*
- - 33,412 5,796 - 36,805 1300 -
Balance 21,466 47,271 55,736 9,734 16,844 25,001 1,10,481 64,485
Less:
Interest
and
Principal
of B2B
Loan
- - - - 5,343 13,983 92,088 -
Balance
Carried
forward
21,466 47,271 55,736 9,734 11,501 11,018$ 18,393^ 64,485

*Centre had transferred Rs. 33,412 crore from CFI to cess fund as part of an exercise to apportion
balance IGST pertaining to 2017-18 on 01.06.2020. Centre had transferred Rs. 5,796 crore from CFI
to cess fund as part of an exercise to apportion balance IGST pertaining to 2018-19 on 08.03.2022.

$ Balance GST compensation cess available in FY 2023-24 is Rs. (-11,804) crore. Centre had
transferred Rs. 36805 Crore from CFI to cess fund through budgetary provision on 12.04.2023.
Hence GST Compensation cess carried forward to FY 2023-24 as opening balance is Rs. 11018
crore.

^ Balance GST compensation cess available in FY 2024-25 is Rs. 1,09,181 crore. Centre had
transferred Rs. 1300 Crore from CFI to cess fund through budgetary provision on 15.04.2024. Hence
GST Compensation cess carried forward to FY 2023-24 as opening balance is Rs. 18393 crore.

# upto July 2024

Page 16 of 32
Table 4: Status of AG’s certificate received and processed
S. No. Name of State/UT FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY 2022-
23 (Q1)
1 Andhra Pradesh

2 Arunachal Pradesh

3 Assam

4 Bihar

5 Chhattisgarh

6 Delhi

7 Goa

8 Gujarat

9 Haryana

10 Himachal Pradesh

11 J & K

12 Jharkhand

13 Karnataka

14 Kerala

15 Madhya Pradesh

16 Maharashtra

17 Manipur

18 Meghalaya

19 Mizoram

20 Nagaland

21 Odisha

22 Puducherry

23 Punjab

24 Rajasthan

25 Sikkim

26 Tamil Nadu

27 Telangana

28 Tripura

29 Uttar Pradesh

30 Uttarakhand

31 West Bengal


AG’s Certificate not received
AG’s Certificate received and GST compensation finalised
AG’s certificate received and file is under process
Page 17 of 32
States Revenue Comparison
4. The State-wise details of comparison of SGST revenue and the post settlement SGST revenue
(including ad-hoc settlement) for FY 2024-25 (April-July) as compared to FY 2023-24 (April-July)
may be seen in the Table 5.
Table 5: State-wise Revenue Comparison (Apr-July) (FY 2024-25) vs (Apr-July) (FY 2023-24)
(Amount Rs. in Crore)
State
Code State/UT
Pre-
settleme
nt
(Apr'23-
July'23)
Pre-
settlement
(Apr'24-
July'24)
SGST
Growth
(%)
Post-
Settlement
(Apr'23-
July'23)
Post-
Settlement
(Apr'24-
July'24)
SGST
Growth
Post
settlement
(%)
1 Jammu and
Kashmir
1,063 1,067 0% 2,816 3,007 7%
2
Himachal
Pradesh 948 949 0% 2,023 2,126 5%
3 Punjab 2,952 3,207 9% 7,248 7,585 5%
4 Chandigarh 232 252 9% 758 770 2%
5 Uttarakhand 1,820 2,075 14% 2,807 3,156 12%
6 Haryana 6,720 7,878 17% 11,724 13,096 12%
7 Delhi 5,316 6,046 14% 10,978 12,027 10%
8 Rajasthan 5,902 6,289 7% 13,066 14,187 9%
9 Uttar Pradesh 11,173 12,574 13% 25,278 29,111 15%
10 Bihar 2,791 3,073 10% 8,734 9,575 10%
11 Sikkim 196 146 -25% 401 353 -12%
12
Arunachal
Pradesh
266 228 -14% 742 685 -8%
13 Nagaland 109 106 -3% 373 367 -2%
14 Manipur 127 152 20% 403 439 9%
15 Mizoram 115 125 8% 353 362 2%
16 Tripura 188 186 -1% 547 606 11%
17 Meghalaya 220 222 1% 601 636 6%
18 Assam 2,017 2,226 10% 4,954 5,331 8%
19 West Bengal 8,265 8,466 2% 14,324 15,249 6%
20 Jharkhand 3,023 3,050 1% 4,230 4,740 12%
21 Odisha 5,537 6,438 16% 7,484 9,139 22%
22 Chhattisgarh 2,796 3,044 9% 4,286 5,073 18%
23 Madhya Pradesh 4,356 4,728 9% 10,714 12,167 14%
24 Gujarat 14,229 15,502 9% 21,936 23,709 8%
25&26
Dadra and Nagar
Haveli & Daman
and Diu
217 264 21% 380 393 3%
27 Maharashtra 34,424 38,283 11% 50,313 56,013 11%
29 Karnataka 13,600 15,214 12% 24,713 26,951 9%
30 Goa 771 884 15% 1,386 1,445 4%
Page 18 of 32
State
Code State/UT
Pre-
settleme
nt
(Apr'23-
July'23)
Pre-
settlement
(Apr'24-
July'24)
SGST
Growth
(%)
Post-
Settlement
(Apr'23-
July'23)
Post-
Settlement
(Apr'24-
July'24)
SGST
Growth
Post
settlement
(%)
31 Lakshadweep 13 2 -87% 54 28 -48%
32 Kerala 4,783 4,947 3% 10,607 10,704 1%
33 Tamil Nadu 13,337 14,807 11% 21,254 24,896 17%
34 Puducherry 161 180 12% 531 475 -11%
35
Andaman and
Nicobar Islands 89 82 -8% 197 219 11%
36 Telangana 6,470 6,892 7% 13,280 14,203 7%
37 Andhra Pradesh 4,783 5,086 6% 10,311 11,182 8%
38 Ladakh 65 74 15% 182 203 12%
97 Other Territory 82 62 -23% 350 301 -14%
Grand Total 1,59,155 1,74,808 10% 2,90,339 3,20,509 10%

Trends in Return filing
5. The table 6 shows the trend in return filing in FORM GSTR-3B and GSTR-1 as on
26.08.2024 for return period Jan’24 to July’24. Tables 7 and 8 show the State wise filing for these
months.
Table 6: Return filing (GSTR-3B/GSTR-1) as on 26.08.2024
Return Period GSTR-3B (%) GSTR-1(%)
Jan’24 98.8% 98.7%
Feb’24 97.9% 98.0%
Mar’24 97.9% 98.2%
Apr’24 97.1% 97.3%
May’24 95.8% 96.1%
Jun’24 95.0% 95.8%
July’24 89.0% 92.0%




Page 19 of 32
Figure 2: GSTR-3B/GSTR-1 Filing as on 26.08.2024

Table 7: State-wise Return filing (GSTR-3B) till 26.08.2024 (Jan’24-July’24)

State/UT Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 July-24
1 Jammu and Kashmir 99.2% 98.4% 98.9% 98.3% 97.0% 96.4% 90.3%
2 Himachal Pradesh 99.4% 98.4% 98.5% 97.5% 96.0% 95.4% 89.6%
3 Punjab 99.2% 98.0% 98.5% 97.7% 96.2% 95.8% 91.3%
4 Chandigarh 100.2% 99.1% 99.7% 98.7% 97.2% 96.7% 91.9%
5 Uttarakhand 99.2% 97.8% 97.6% 97.0% 93.8% 94.4% 87.9%
6 Haryana 98.7% 98.1% 98.2% 97.6% 96.7% 95.8% 89.6%
7 Delhi 98.1% 97.1% 97.4% 96.9% 95.4% 94.7% 89.3%
8 Rajasthan 99.5% 97.7% 98.6% 98.0% 96.6% 95.7% 90.4%
9 Uttar Pradesh 98.6% 97.7% 97.8% 97.2% 95.8% 95.3% 89.4%
10 Bihar 97.4% 94.9% 95.3% 94.7% 92.2% 92.9% 86.7%
11 Sikkim 96.7% 95.6% 95.9% 93.6% 86.2% 89.3% 81.2%
12 Arunachal Pradesh 98.6% 96.4% 95.0% 89.5% 87.9% 86.2% 77.2%
13 Nagaland 96.4% 96.4% 96.3% 93.5% 92.8% 90.4% 83.0%
98.8%
97.9% 97.9%
97.1%
95.8%
95.0%
98.7%
98.0% 98.2% 97.3%
96.1%
95.8%
92.0%
91.0%
92.0%
93.0%
94.0%
95.0%
96.0%
97.0%
98.0%
99.0%
100.0%
Jan’24 Feb’24 Mar’24 Apr’24 May'24 Jun'24 July'24
GSTR-3B (%) GSTR-1(%)
Page 20 of 32
State/UT Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 July-24
14 Manipur 97.6% 95.2% 93.4% 91.6% 90.7% 88.3% 79.1%
15 Mizoram 97.1% 96.9% 96.4% 95.4% 94.1% 91.9% 85.5%
16 Tripura 99.1% 98.1% 98.1% 93.3% 94.9% 94.3% 86.7%
17 Meghalaya 98.4% 95.9% 96.0% 95.8% 93.6% 93.2% 85.1%
18 Assam 97.5% 95.9% 95.0% 92.0% 91.4% 90.5% 82.1%
19 West Bengal 98.8% 97.9% 98.1% 97.1% 95.1% 95.0% 89.8%
20 Jharkhand 98.5% 97.8% 97.6% 96.5% 95.4% 94.2% 87.8%
21 Odisha 98.4% 96.9% 96.9% 95.9% 94.1% 93.2% 86.4%
22 Chhattisgarh 99.3% 98.3% 98.2% 97.8% 96.1% 95.1% 85.3%
23 Madhya Pradesh 99.4% 97.8% 98.1% 97.2% 95.6% 95.1% 88.2%
24 Gujarat 100.2% 99.8% 99.9% 99.6% 98.7% 98.3% 94.0%
25 Dadra and Nagar Haveli
& Daman and Diu
99.5% 98.9% 98.7% 97.8% 97.2% 95.7% 87.9%
27 Maharashtra 99.3% 98.2% 98.3% 97.2% 95.8% 94.9% 88.1%
29 Karnataka 98.6% 97.8% 97.4% 96.7% 95.7% 94.7% 88.6%
30 Goa 100.0% 98.5% 97.4% 95.8% 93.9% 92.4% 85.0%
31 Lakshadweep 97.0% 95.2% 93.5% 93.3% 90.5% 91.3% 85.4%
32 Kerala 98.7% 97.8% 97.1% 95.9% 94.8% 93.3% 86.7%
33 Tamil Nadu 98.7% 98.4% 98.3% 98.0% 97.1% 96.2% 90.8%
34 Puducherry 98.0% 97.7% 97.1% 96.2% 95.4% 93.7% 87.0%
35 Andaman and Nicobar Islands 99.3% 98.1% 96.0% 94.2% 91.7% 88.8% 78.7%
36 Telangana 98.2% 97.7% 97.3% 96.3% 94.8% 93.1% 86.0%
37 Andhra Pradesh 97.8% 97.4% 97.2% 96.3% 94.9% 93.5% 86.9%
38 Ladakh 104.2% 99.0% 100.5% 97.4% 93.2% 93.4% 81.1%
97 Other Territory 81.5% 81.3% 81.3% 81.3% 81.3% 80.8% 96.9%
Total 98.8% 97.9% 97.9% 97.1% 95.8% 95.0% 89.0%
Page 21 of 32
Table 8: State-wise Return filing (GSTR-1) till 26.08.2024 (Jan’24-July’24)
State/UT Jan-24 Feb-24 Mar-24 Apr-24 May-
24
Jun-24 July-24
1 Jammu and Kashmir 99.0% 98.5% 99.2% 98.4% 97.1% 97.0% 92.7%
2 Himachal Pradesh 98.9% 98.3% 98.9% 97.1% 96.0% 96.3% 92.4%
3 Punjab 98.9% 98.0% 98.8% 97.6% 96.4% 96.5% 94.1%
4 Chandigarh 100.1% 99.1% 100.1% 98.7% 97.4% 97.6% 94.7%
5 Uttarakhand 98.8% 97.8% 98.1% 97.0% 94.1% 95.4% 91.1%
6 Haryana 98.5% 98.1% 98.6% 97.7% 97.0% 96.7% 93.3%
7 Delhi 97.9% 97.2% 97.8% 96.9% 95.7% 95.6% 92.5%
8 Rajasthan 99.0% 97.5% 99.0% 97.7% 96.7% 96.4% 93.1%
9 Uttar Pradesh 98.5% 97.8% 98.1% 97.3% 96.1% 96.0% 92.0%
10 Bihar 97.4% 95.0% 95.6% 94.9% 92.5% 93.7% 88.7%
11 Sikkim 96.5% 95.6% 96.2% 93.8% 86.5% 90.0% 83.3%
12 Arunachal Pradesh 98.7% 96.8% 95.7% 89.9% 88.4% 87.0% 79.4%
13 Nagaland 96.5% 96.5% 96.7% 94.0% 93.3% 91.0% 85.6%
14 Manipur 97.8% 95.4% 94.0% 92.0% 91.1% 89.2% 81.2%
15 Mizoram 97.2% 97.1% 96.9% 95.6% 94.5% 92.6% 87.2%
16 Tripura 99.1% 98.2% 98.5% 93.6% 95.3% 95.0% 90.3%
17 Meghalaya 98.2% 95.9% 96.3% 95.8% 93.9% 93.8% 87.0%
18 Assam 97.5% 96.0% 95.5% 92.3% 91.7% 91.4% 85.0%
19 West Bengal 98.7% 97.9% 98.4% 97.3% 95.4% 95.7% 92.5%
20 Jharkhand 98.5% 97.8% 97.9% 96.8% 95.8% 94.9% 90.4%
21 Odisha 98.4% 96.9% 97.4% 96.0% 94.5% 94.0% 89.0%
22 Chhattisgarh 99.1% 98.3% 98.5% 97.8% 96.3% 96.0% 88.8%
23 Madhya Pradesh 99.1% 97.7% 98.4% 97.1% 95.8% 95.9% 90.7%
24 Gujarat 99.9% 99.7% 100.0% 99.4% 98.6% 98.9% 96.8%
25 Dadra and Nagar Haveli
& Daman and Diu
99.5% 99.1% 99.1% 98.1% 97.7% 97.0% 93.8%
27 Maharashtra 99.3% 98.3% 98.7% 97.4% 96.2% 95.8% 91.9%
Page 22 of 32
State/UT Jan-24 Feb-24 Mar-24 Apr-24 May-
24
Jun-24 July-24
29 Karnataka 98.7% 98.0% 97.8% 97.0% 96.0% 95.5% 91.5%
30 Goa 100.0% 98.8% 97.9% 96.2% 94.4% 93.6% 88.5%
31 Lakshadweep 97.0% 95.2% 94.4% 93.3% 91.5% 91.8% 89.8%
32 Kerala 98.9% 98.1% 97.7% 96.4% 95.4% 94.3% 90.7%
33 Tamil Nadu 98.8% 98.6% 98.6% 98.2% 97.4% 96.9% 93.9%
34 Puducherry 98.2% 97.9% 97.5% 96.6% 95.9% 94.7% 90.5%
35 Andaman and Nicobar Islands 99.4% 98.4% 97.0% 94.6% 92.1% 89.8% 82.3%
36 Telangana 98.4% 97.9% 97.7% 96.7% 95.3% 94.0% 89.1%
37 Andhra Pradesh 97.8% 97.6% 97.6% 96.6% 95.3% 94.3% 89.9%
38 Ladakh 104.0% 99.0% 101.0% 97.5% 93.3% 94.5% 84.4%
97 Other Territory 81.5% 81.3% 81.3% 81.3% 81.3% 82.1% 96.9%
Total 98.7% 98.0% 98.2% 97.3% 96.1% 95.8% 92.0%
Page 23 of 32
Agenda Item 8 (b): Status update on Compensation Cess

GST Council’s decision in its 52nd meeting on October 7, 2023, may please be recalled, wherein it was
decided that a status update on Compensation cess be presented to the Council. Extracts of the minutes are
reproduced hereunder:

“It was decided that a complete picture of the compensation cess, the likely time by which loan will be
repaid and the proposal for tax/cess in lieu of compensation cess post repayment be presented to the
Council.”

2. Accordingly, a status note with regard to Compensation Cess is being put up for perusal and
consideration of the Council. In this regard, it may be seen that from July 2017 till July, 2024, the net
collection of the GST Compensation Cess is Rs. 7,61,215 crores [State wise details of Compensation Cess
collected tabulated in the Table given in Annexure 1].

3. Total actual collections upto July, 2024 and projected cess collection for the remaining
compensation period [i.e. till March, 2026] are summarized below:
(Amount in ₹ Crores)
Year Total
2017-18 (from July 2017) 62,612
2018-19 95,081
2019-20 95,551
2020-21 85,191
2021-22 1,04,609
2022-23 1,25,863
2023-24 1,41,809
2024-25 (upto July, 2024) 50,499
Actual Total (up to July 2024) 7,61,215
Projected (August, 2024 -March 2025) 99,501
Projected Total (till Mar 2025) 8,60,716
FY 25-26 (est. @ 11.5% growth) 1,67,250
Projected Total (till Mar 2026) 10,27,966

4. Similarly, State-wise details of payment to states from the compensation account are given in
Annexure 2 (with status of AG certificate for final compensation). It is noteworthy that the entire amount of
provisionally admissible GST compensation for the period up to 30th June, 2022 has already been paid to all
states. Further, Final Compensation arising out of reconciliation of provisional figures with audited figures is
released immediately on receipt of the AG’s certificate and no amount is pending for release to the
States/UTs. Details of compensation paid, year wise, till date and the back-to-back loan are given below:
Amount in ₹ Crores
Year Compensation Cess
paid till 29th Aug 2024
Back-to-Back
Loan Total
2017-18 (from July 2017) 49,688 49,688
2018-19 85,439 85,439
2019-20 1,67,631 1,67,631
2020-21 1,96,001 1,10,208 3,06,209
2021-22 1,02,906 1,59,000 2,61,906
2022-23 (upto June 2022) 62,538 62,538
Total 6,64,203 2,69,208 9,33,411
Page 24 of 32
5. The original repayment schedule of the loan and the amount of principal and interest actually paid
till date is given in Annexure 3. However, if the loan taken was to be repaid with interest by 31.03.2025,
Compensation account summary projected as of March 31, 2025 is as follows:
Particulars Amount (₹ Crores)
Total Cess Collections (actual + projected) up to March 2025 8,60,716
Compensation Paid till 29th August 2024 -6,64,203
Back-to-Back Loan -2,69,208
Estimated Compensation payable -13,000
Interest on B2B Loan (projected) -51,561
Excess compensation to be recovered 213
Shortfall in Compensation Account as of March 31, 2025 -1,37,043

6. As can be seen from the table above, it is estimated that there will still be a shortfall of ₹ 1,37,043
crore in the compensation account as of March 31, 2025. Therefore, the Compensation Cess levy would
have to be continued beyond FY 2024-25 and well into FY 2025-26.

7. The above status update on Compensation Cess is placed before the GST Council.
Page 25 of 32
Annexure 1
State wise Compensation Cess collected till July 2024:
(Amount in ₹ Crores)
Sr. No. State/UT 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
(till July 24)
Total
1 Jammu and Kashmir
47 42 42 59 54 68 86 51 449
2 Himachal Pradesh 10 15 19 10 17 20 21 9 122
3 Punjab 87 154 211 174 222 340 378 182 1,748
4 Chandigarh 6 4 13 11 15 22 20 12 103
5 Uttarakhand 145 240 190 90 87 124 131 47 1,053
6 Haryana 2,795 3,889 3,671 3,816 4,977 6,031 7,041 2,429 34,649
7 Delhi 746 1,072 1,093 888 1,022 1,023 1,312 461 7,617
8 Rajasthan 1,144 1,516 1,470 1,508 1,872 1,501 1,852 591 11,455
9 Uttar Pradesh 7,582 12,264 12,762 10,910 12,649 14,236 15,556 5,515 91,473
10 Bihar 1,294 1,923 2,063 1,677 1,940 2,005 2,043 733 13,677
11 Sikkim 1 2 2 1 1 1 1 1 9
12 Arunachal Pradesh 1 2 2 2 2 2 2 0 14
13 Nagaland 2 9 10 6 14 44 47 11 143
14 Manipur 1 1 2 2 2 3 3 0 12
15 Mizoram 0 1 1 1 0 1 1 1 5
16 Tripura 6 3 2 3 2 3 3 0 22
17 Meghalaya 26 21 5 4 9 19 24 6 116
18 Assam 317 468 479 309 403 628 1,033 560 4,197
19 West Bengal 2,277 3,898 3,995 3,254 3,494 4,251 4,603 1,945 27,716
20 Jharkhand 3,331 5,160 5,211 4,571 5,431 5,772 6,939 2,686 39,100
21 Odisha 4,241 5,641 5,723 6,198 7,840 8,874 9,368 3,289 51,174
22 Chhattisgarh 4,097 6,489 6,171 5,869 6,861 7,041 7,708 2,808 47,044
23 Madhya Pradesh 3,183 4,939 5,525 5,530 6,280 7,006 7,554 2,678 42,696
24 Gujarat 2,460 3,975 4,588 4,821 6,263 6,667 8,025 2,856 39,654
25 Daman and Diu 0 0 0 0 - - - - 1
26 Dadra and Nagar Haveli 2 1 1 2 4 11 7 1 28
27 Maharashtra 7,606 11,442 11,513 8,953 14,092 19,907 23,229 8,342 1,05,084
29 Karnataka 6,619 10,079 9,446 7,521 9,468 13,342 16,852 5,991 79,319
30 Goa 19 29 33 19 21 39 42 16 217
31 Lakshadweep - - - - - - - - -
32 Kerala 71 64 120 79 80 75 57 23 569
33 Tamil Nadu 4,248 7,168 5,894 5,586 7,076 8,051 8,747 3,089 49,858
34 Puducherry 6 6 7 4 5 8 8 4 49
35 Andaman and Nicobar Islands 0 1 1 1 0 1 2 0 6
36 Telangana 3,789 6,497 6,500 5,161 6,310 6,481 6,549 2,185 43,471
37 Andhra Pradesh 154 273 1,537 2,113 2,361 3,794 3,398 1,047 14,676
38 Ladakh - - - 2 1 1 1 1 6
97 Other Territory 9 0 - 0 - 0 - - 10
99 Centre Jurisdiction - - - - - - - - -
Total Cess - Domestic 56,319 87,290 88,303 79,152 98,878 1,17,390 1,32,639 47,571 7,07,542
Total Cess - Import 6,295 10,080 10,442 9,190 8,789 10,896 11,915 4,086 71,692
Total Gross 62,614 97,369 98,745 88,342 1,07,667 1,28,286 1,44,554 51,657 7,79,234
Net Cess Collection 62,612 95,081 95,551 85,191 1,04,609 1,25,862 1,41,809 50,499 7,61,215


Page 26 of 32
Annexure 2

Status of Compensation released with updated status of AG's certificate received and
processed:
(Amount in ₹ Crores)
S.No Name of
State/UT FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
(Q1) Total
1 Andhra Pradesh 382.00 0.00 2864.68 5086.08 3047.13 2222.24 13602.13
2 Arunachal
Pradesh - - - - - 0.00 0.00
3 Assam 980.39 454.26 1305.64 1612.47 21.89 568.06 4942.71
4 Bihar 2921.55 2805.20 5440.58 4205.57 231.77 500.69 16105.35
5 Chhattisgarh 1589.00 2608.09 4537.69 3021.16 775.31 1876.08 14407.33
6 Delhi 326.00 5868.49 9148.13 10793.45 8367.80 3556.55 38060.42
7 Goa 281.00 693.98 1303.68 1335.23 1231.08 464.10 5309.07
8 Gujarat 4277.00 8787.96 15557.81 17771.02 7150.19 5250.89 58794.86
9 Haryana 1461.00 3835.41 6810.97 6736.84 2975.99 1707.48 23527.70
10 Himachal Pradesh 1088.11 2084.02 2619.10 1485.63 647.99 841.27 8766.12
11 J & K 1160.00 1667.00 3281.00 1834.06 0.00 418.12 8360.18
12 Jharkhand 1368.00 1106.27 2277.63 2639.97 1016.53 1167.39 9575.79
13 Karnataka 7669.59 12465.14 18463.16 19300.85 9877.21 7966.44 75742.39
14 Kerala 2102.00 3757.40 8172.58 7352.30 4282.56 3191.86 28858.70
15 Madhya Pradesh 2668.00 3402.17 6735.14 6797.63 2981.24 2897.01 25481.19
16 Maharashtra 3077.00 8453.62 18873.81 35626.65 22099.23 7205.51 95335.82
17 Manipur 0.00 0.00 0.00 0.00 0.00 0.00 0.00
18 Meghalaya 113.31 114.21 146.96 271.70 20.22 0.00 666.41
19 Mizoram 0.00 0.00 0.00 11.37 0.00 0.00 11.37
20 Nagaland 0.00 0.00 0.00 14.22 0.00 0.00 14.22
21 Odisha 2348.08 4241.08 5331.92 4243.43 834.48 1052.48 18051.47
22 Puducherry 387.29 692.71 1057.42 926.71 26.62 377.46 3468.22
23 Punjab 5224.88 9764.18 12737.77 8776.59 4755.15 4792.54 46051.12
24 Rajasthan 2989.22 2569.57 7084.78 7624.79 1820.10 2161.95 24250.41
25 Sikkim 6.00 0.00 0.00 2.62 0.00 0.00 8.62
26 Tamil Nadu 1018.00 5366.39 11423.19 16963.32 11698.29 4863.50 51332.69
27 Telangana 0.00 0.00 2996.21 6062.09 1561.12 1608.30 12227.72
28 Tripura 140.06 176.11 284.14 219.83 6.07 -9.62 816.59
29 Uttar Pradesh 2431.00 0.00 9168.33 15329.77 9815.21 3851.91 40596.22
30 Uttarakhand 2071.45 2485.23 3400.26 2126.29 1191.67 1161.43 12436.33
31 West Bengal 1608.00 2040.52 6608.81 7829.58 6470.97 2844.76 27402.64
Total 49687.93 85439.02 167631.39 196001.23 102905.81 62538.42 664203.80
AG's certificate not received. Provisional compensation released
AG's certificate received and GST compensation finalised
AG's certificate received and file is under process.

Note:
1. For States where AG certificate is received, final compensation is shown.
2. For States where AG Certificate is not received, provision compensation is shown.
Page 27 of 32
Annexure 3

Original repayment schedule of back-to-back loan:
(Amount in ₹ Crores)

Year Principal Interest Total Repayment
FY 20-21 0.00 0.00 0.00
FY 21-22 0.00 5342.15 5342.15
FY 22-23 0.00 13983.64 13983.64
FY 23-24 78104.00 13983.64 92087.64
FY 24-25 123604.00 10575.28 134179.28
FY 25-26 0.00 3838.07 3838.07
FY 26-27 67500.00 3838.07 71338.07
Total 269208.00 51560.85 320768.85

Page 28 of 32
Updated (on 29.08.2024) Status of AG’s certificate received and processed
Status of AG's certificate received and processed

S.No. Name of State/UT FY
2017-18
FY
2018-19
FY
2019-20
FY 2020-
21
FY 2021-
22
FY
2022-
23(Q1)
1 Andhra Pradesh
2 Arunachal Pradesh
3 Assam
4 Bihar
5 Chhattisgarh
6 Delhi
7 Goa
8 Gujarat
9 Haryana
10 Himachal Pradesh
11 J & K
12 Jharkhand
13 Karnataka
14 Kerala
15 Madhya Pradesh
16 Maharashtra
17 Manipur
18 Meghalaya
19 Mizoram
20 Nagaland
21 Odisha
22 Puducherry
23 Punjab
24 Rajasthan
25 Sikkim
26 Tamil Nadu
27 Telangana
28 Tripura
29 Uttar Pradesh
30 Uttarakhand
31 West Bengal

AG's certificate not received
AG's certificate received and GST compensation finalised
AG's certificate received and file is under process

Page 29 of 32
Agenda Item 8 (c): IGST Settlement

Background:
This agenda aims to lay down a standardized procedure for ad-hoc advance apportionments and
adjustments/recovery thereof which are done from the excess balance or shortfall in IGST account
respectively.
2. In terms of Section 17 of the Integrated Goods and Services Tax Act, 2017 ("IGST Act") related to
apportionment of tax and settlement of funds, the IGST collected by the Central Government is
required to be transferred to Central Goods and Service Tax ("CGST") and the respective States/UTs'
Goods and Services Tax ("SGST"/ "UTGST") as per the method specified in the Goods and services
Tax Settlement of funds Rules, 2017 ("GST Settlement Rules"). Goods and Services Tax Network
("GSTN") provides the details of amount of apportionment and Input Tax Credit ("ITC") cross
utilization in respect of the Centre and States
3. After making the settlement as per the procedure laid down in GST Settlement Rules, if any
positive or negative balance remains in the IGST account, then the need for ad-hoc apportionment or
adjustment/recovery thereof would arise. The objective is to maintain the balance in the IGST account
as close to zero as possible. Both apportionment and recovery are carried in the 50:50 ratio between
Centre and States.
4. Ad-hoc apportionment and recoveries made from time to time are summarised below, while month
wise details are given in Annexure:
(Amount in ₹ Crores)
FY STATES CENTRE
Advance
Apportionment
Recovery Balance Advance
Apportionment
Recovery Balance
2017-18 17,500 0 17,500 17,500 0 17,500
2018-19 65,000 -3,500 61,500 65,000 -3,500 61,500
2019-20 16,500 -14,500 2,000 16,500 -14,500 2,000
2020-21 38,000 0 38,000 38,000 0 38,000
2021-22 39,500 -5,500 34,000 39,500 -5,500 34,000
2022-23 24,500 -1,500 23,000 24,500 -1,500 23,000
2023-24 0 -9,000 -9,000 0 -9,000 -9,000
TOTAL 2,01,000 -34,000 1,67,000 2,01,000 -34,000 1,67,000

5. During FY 2023-24, after accounting for the recovery of Rs. 18,000 crore, the negative balance in
the IGST Account for FY 2023-24 was Rs.5,516 crore. It was decided to observe the movement in the
Page 30 of 32
account for few months so as to avoid frequent apportionment/recovery. During the first 4 months of
the current fiscal year, the net negative balances are as follows:
(Amount in ₹ Crores)
Month Balance for the month
April 2024 -2,645
May 2024 -8,238
June 2024 707
July 2024 -483
Cumulative Balance -10,659

6. Together with the negative balance of Rs. 5,516 crore for FY 2023-24, cumulative negative balance
in the IGST account as of date is Rs. 6,175 crore. For the month of August, 2024 also, as per estimates
there would be a shortfall of another Rs. 10,000 crore. Since, it is not expected that the trend of
negative balance would reverse dramatically during this year, it is proposed that the negative balance
be recovered in the ratio of 50:50 from Centre and the States. Accordingly, the amount of shortfall at
the end of August, 2024 (expected to be around Rs. 25,000 crore) is proposed to be recovered from
the Centre (Rs. 12,500 crore) and the States (Rs. 12,500 crore) in four instalments beginning
September 2024.
7. While the ratio of apportionment (50:50) between the Centre and the States is specified in law,
method of apportionment among the States is not specified. Ad-hoc advance apportionment has been
consistently distributed among the States in the ratio of their revenues in FY 2015-16 revenue.
Recoveries have been consistently made in the ratio of the actual settlement of the month.
8. The share of revenue of each state has changed significantly post implementation of GST and so it
is not appropriate to continue making advance apportionment on the basis of revenues of FY 2015-16.
Accordingly, it is proposed to revise the method of apportionment of ad-hoc surplus and shortfall of
IGST among States. The adopted method needs to be dynamic enough to reflect current realities and
at the same time stable for administrative ease and better predictability.
9. It is proposed that the decided methodology may be implemented and followed for advance
apportionment and recovery adjustments to be made from 01.04.2024 onwards and the ad-hoc
advance balance as on 31.03.2024 may be left on an as-is where-is basis [Approval Point -1].
10. Moreover, the IGST is to be given to state that actually utilises the IGST. There is therefore no
reason that the advance apportionment of surplus IGST is done on the basis of the share of revenue of
each state, especially since the proportion of IGST utilisation of a state to the revenue of the state
varies from state to state. IGST utilisation of a state is a good indicator of the IGST accumulation in
the state. Accordingly, it is proposed that the advance apportionment of surplus IGST may be done to
each state in the ratio of the amount of IGST utilised by the state to that of the total IGST utilised by
all the states together in the recent past [Approval Point- 2].
Page 31 of 32
11. In the interest of stability, it is proposed to calculate the ratio of the past period, a rolling period of
the immediate previous three financial years may be used. The advance apportionment for FY 2024-
25 would be based on the total amount of IGST utilisation of the states in FYs 2021-22 to 2023-24.
Similarly, the advance apportionment for FY 2025-26 would be based on the total amount of IGST
utilisation of the states in FYs 2022-23 to 2024-25. This would also apply to recovery from the States.
[Approval Point-3].
12.The above proposals are placed before the GST Council for kind consideration and kind approval.
*****
Page 32 of 32
Annexure
The details of the ad-hoc advance apportionment carried out and the recovery adjustments carried out
in the past periods are detailed in the below Tables:
Details of Advance Appointment:
(Amount in ₹ Crores)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Total
Apr 6,000
May
Jun 25,000 13,500
Jul 7,500
Aug 6,000 12,000
Sep
Oct 15,000 11,000
Nov
Dec 9,000
Jan 17,500
Feb 17,500 24,000
Mar 10,000 3,000 14,000 10,000
Total 17,500 65,000 16,500 38,000 39,500 24,500 0 2,01,000
Details of Recovery adjustments:
(Amount in ₹ Crores)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Total
Apr -1,750
May -1,750
Jun
Jul -4,000
Aug -3,000 -5,500
Sep -2,000
Oct -3,000
Nov -9,000
Dec -2,500
Jan
Feb
Mar -1,500
Total -3,500 -14,500 -5,500 -1,500 -9000 -34,000


Page 1 of 83
Confidential

Agenda for
54th GST Council Meeting
09th September, 2024
Volume - III







Page 2 of 83


Page 3 of 83

GST Council Secretariat New Delhi

5th Floor, Tower-II, Jeevan Bharti Building, New Delhi
09th August, 2024
OFFICE MEMORANDUM
Subject: Notice for the 54th GST Council Meeting to be held on 09th September, 2024-reg

The undersigned is directed to refer to the above subject and to convey that the 54th Meeting of
the GST Council will be held on 09th September, 2024 at New Delhi. The schedule of the
meeting is as follows:-
• Monday, 9th September, 2024, from 11.00 A.M. onwards
2. In addition, an Officers’ Meeting will be held on 8th September, 2024 at New Delhi as per
the following schedule:
• Sunday, 8th September, 2024 from 2.30 P.M. onwards

3. The venue of the meeting, agenda items and other details for the 54th Meeting of the GST
Council and officers’ Meeting will be communicated in due course of time.

4. Kindly convey the invitation to the Hon’ble Member of the GST Council to attend the 54th
Meeting of the GST Council.

Sd/-
(Sanjay Malhotra)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with
the request to brief Hon’ble Minister about the above said meeting.
2. PS to the Hon’ble Minister of State (Finance), Government of India, North Block, New
Delhi with the request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Union Territories of Delhi, Puducherry
and Jammu and Kashmir with the request to intimate the Minister in charge of
Finance/Taxation or any other Minister nominated by the State Government as a Member of
the GST Council about the above said meeting.
4. Chairman, CBIC, North Block, New Delhi, as a permanent invitee to the proceedings of the
Council.
5. CEO, GST Network


Page 4 of 83


Page 5 of 83
TABLE OF CONTENTS
(VOLUME-III)

Sl. No. Agenda Item Page No.
(Part-II) of
Sl. No. 3.
(Vol-I)
Issues recommended by the Law Committee for the consideration of the GST
Council
vii) Consequential amendments required in CGST Rules, 2017 and relevant
forms subsequent to insertion of Section 128A and clarification on
various related issues
7-47
(Part-II) of
Sl. No. 4.
(Vol-I)
Recommendations of the Fitment Committee for the consideration of the GST
Council 48
c) (Part-II) Recommendations made by the Fitment Committee for making
changes in GST rates or for issuing clarifications in relation to services (2
issues) – Annexure-IV
49-52
e) (Part-II) Recommendations made by the Fitment Committee for deferring
issues for further examination in relation to services (1 issue) – Annexure-
VI
53-55
g) Issuance of circular clarifying the scope of the phrase ' as is where is basis' 56
h) Report of Committee of Officers on Taxation of Extra-Neutral Alcohol
under GST for the past period (from 1.7.2017 to 20.10.2023) 57
i) Status update on Group of Ministers (GoM) on Rate Rationalisation 58-59
j) Status update on Group of Ministers (GoM) on boosting real estate sector
under GST regime 60-63
(Part-II) of
Sl. No. 8.
(Vol-II)
(d) GST Appellate Tribunal - Issues for approval 64-74
(e) Sharing of personally Identifiable Information of Taxpayers with other
Ministries/Departments 75-77
9. Ad-hoc Exemptions Orders issued under Section 25(2) of the Customs Act,
1962 to be placed before the GST Council for information. 78-82
10. Any other agenda item with the permission of the Chairperson



Page 6 of 83



Page 7 of 83
Discussion on Agenda Items

Agenda Item 3 (Part-II): Issues recommended by the Law Committee for the consideration of
the GST Council

Agenda Item 3 (vii): Consequential amendments required in CGST Rules, 2017 and relevant
forms subsequent to insertion of Section 128A and clarification on various related issues.

1.1 GST Council in its 53rd meeting held on 22nd June 2024, recommended insertion of Section
128A in the Central Goods and Services Tax Act, 2017 (hereinafter referred to as ‘the CGST Act’) to
provide for a waiver of interest or penalty or both, relating to tax demands under Section 73 pertaining
to FYs 2017-18, 2018-19 and 2019-20. Section 146 of Finance Act (no.2), 2024 provides for the same.
Subsequent to the insertion of the said section, corresponding rules are required to be inserted in Central
Goods and Services Tax Rules, 2017 (hereinafter referred to as ‘the CGST Rules’), along with new
forms, in order to implement the same.
2.1 Law Committee in its meetings held on 09.08.2024, 23.08.2024, 29.08.2024 and 02.09.2024
discussed the procedure for implementation of Section 128A of CGST Act in detail and recommended
to insert Rule 164 in CGST Rules, as per the details in Annexure-A enclosed with this agenda.
2.2 Further, the Law Committee also recommended to introduce various forms mentioned below in
CGST Rules, as per details in Annexure-B enclosed with this agenda:
S.
No.
Name of the FORM Particulars
1 FORM GST SPL -01 Application for waiver of interest or penalty or both in cases
pertaining to notices issued under Section 73 that are yet to be
adjudicated (clause (a) of sub-section (1) of section 128A)
2 FORM GST SPL -02 Application for waiver of interest or penalty or both in cases
pertaining to orders issued under Section 73 (clause (b) and clause
(c) of sub-section (1) of section 128A)
3 FORM GST SPL -03 Show cause notice in respect of application of waiver of interest or
penalty or both under section 128A
4 FORM GST SPL -04 Reply to show cause notice in FORM GST SPL-03
5 FORM GST SPL -05 Order for conclusion of proceedings under Section 128A to be
issued by the proper officer, accepting the application made in
FORM GST SPL-01 or FORM GST SPL-02
6 FORM GST SPL-05A Order for conclusion of proceedings under Section 128A to be
issued by the Appellate Authority, in cases where appeal is filed
against rejection of the said application by the proper officer in
FORM GST SPL -06


Page 8 of 83
7 FORM GST SPL -06 Order rejecting the application made in FORM GST SPL-01 or
FORM GST SPL-02
8 FORM GST SPL -07 Undertaking submitted by the applicant under the proposed rule
164(15)(b)(ii) of CGST Rules, 2017

3. Further, the Law Committee also recommended issuance of a circular to clarify the procedure to
be followed by the taxpayers and the tax officers in order to avail and implement the benefit provided
under Section 128A of the CGST Act. The draft circular recommended by the Law Committee is enclosed
as Annexure C with this agenda.

4. The Law Committee also recommended for issuance of the notification under sub-section (1) of
Section 128A of CGST Act in order to provide for a date on or before which the payment of tax may be
made by different class of registered persons, to avail the benefit of waiver of interest or penalty or both
provided under Section 128A of the CGST Act. In this regard, it is to mention that the Law committee
recommended that date to be notified under sub-section (1) of 128A of the CGST Act (i.e. the date upto
which the payment of tax may be made in respect of the due tax liability) may be preferably at least 6
months from the date of notification of Section 128A of the CGST Act. The draft notification
recommended by the Law Committee is enclosed as Annexure D with this agenda.

5. The recommendations of the Law Committee, as detailed in paras 2 to 4, are placed before
Council, for deliberation and approval.


Page 9 of 83
Annexure-A

Rule 164: Procedure and conditions for closure of proceedings under section 128A in respect of
demands issued under section 73. -

(1) Any person who is eligible for waiver of interest or penalty or both in respect of a notice or
a statement mentioned in clause (a) of sub-section (1) of section 128A, may file an
application electronically in FORM GST SPL-01 on the common portal, providing the
details of the said notice or the statement, as the case may be, along with the details of the
payments made in FORM GST DRC-03 towards the tax demanded.

(2) Any person who is eligible for waiver of interest or penalty or both in respect of orders
mentioned in clause (b) and clause (c) of sub-section (1) of section 128A, may file an
application electronically in FORM GST SPL 02 on the common portal, providing the
details of the said order, along with the details of the payments made towards the tax
demanded:
Provided that the payment towards such tax demanded shall be made only by crediting the
amount in the electronic liability register against the debit entry created by the said order:
Provided further that if the payment towards such tax demanded has been made through
FORM GST DRC-03, an application in FORM GST DRC-03A, as prescribed in rule
142(2B), shall be filed by the said person for credit of the said amount in the Electronic
Liability Register against the debit entry created for the said demand, before filing the
application in FORM GST SPL 02.
(3) Where the notice or statement or order mentioned in sub-section (1) of section 128A
includes demand of tax partially on account of erroneous refund, and partially for other
reasons, an application under sub-rule (1) or sub-rule (2) can be filed only after payment
of the full amount of tax demanded in the said notice or statement or order on or before the
date notified under the said sub-section.


(4) Where the notice or statement or order mentioned in sub-section (1) of section 128A
includes demand of tax partially for the period mentioned in the said sub-section, and
partially for the period other than that mentioned in the said sub-section, an application
under sub-rule (1) or sub-rule (2) can be filed only after payment of the full amount of tax
demanded in the said notice or statement or order on or before the date notified under the
said sub-section.

(5) The amount payable under sub-rule (1) or sub-rule (2) shall be the amount that remains
payable after deducting the amount not payable in accordance with sub-section (5) or sub-
section (6) of Section 16, from the amount payable in terms of the notice or statement or
order under section 73, as the case may be.


Page 10 of 83
(6) Any person who wishes to file an application under sub-rule (1) or sub-rule (2) may do so
within a period of three months from the date notified under sub-section (1) of section
128A:
Provided that where an application in FORM GST SPL-02 is to be filed in cases referred
to in the first proviso to sub-section (1) of section 128A, the time limit for filing the said
application shall be six months from the date of communication of the order of the proper
officer redetermining such tax under section 73.
(7) The application under sub-rule (1) or sub-rule (2) shall be accompanied by documents
evidencing withdrawal of appeal or writ petition, if any, filed before any Appellate
Authority, or Tribunal or Court, as the case may be, to establish that the applicant is
eligible for the waiver of interest or penalty or both in terms of section 128A:
Provided that where the applicant has filed an application for withdrawal of an appeal or
writ petition filed before Appellate Authority or Appellate Tribunal or a court, as the case
may be, but the order for withdrawal has not been issued by the concerned authority till
the date of filing of the application under sub-rule (1) or sub-rule (2), the applicant shall
upload the copy of such application or document filed for withdrawal of the said appeal or
writ petition along with the application under sub-rule (1) or sub-rule (2), and shall
upload the copy of the order for withdrawal of the said appeal or writ petition on the
common portal, within one month of the issuance of the said order for withdrawal by the
concerned authority.

(8) Where the proper officer is of the view that the application made in FORM GST SPL-01
or FORM GST SPL-02, is liable to be rejected as not being eligible for waiver of interest
or penalty or both as per section 128A, he shall issue a notice on the common portal to the
applicant in FORM GST SPL-03 within three months from the date of receipt of the said
application and shall also give the applicant an opportunity of being heard.

(9) On receiving the notice under sub-rule (8), the applicant may file a reply to the said notice
on the common portal, in FORM GST SPL-04, within a period of one month from the date
of receipt of the said notice.

(10) If the proper officer is satisfied that the applicant is eligible for waiver of interest and
penalty as per section 128A, he shall issue an order in FORM GST SPL-05 on the
common portal accepting the said application and concluding the proceedings under
section 128A.

(11) In cases where the order in FORM GST SPL-05 is issued by the proper officer under sub-
rule (10),
a. in respect of an application filed in FORM GST SPL-01 pertaining to a
notice or statement referred to in clause (a) of sub-section (1) of section 128A,
the summary of order in FORM GST DRC-07 as per rule 142(5) shall not be
required to be issued by the proper officer, in respect of the said notice or
statement.
b. in respect of an application filed in FORM GST SPL-02, pertaining to an
order referred to in clause (b) or clause (c) of sub-section (1) of section 128A,


Page 11 of 83
the liability created in the part II of Electronic Liability Register, shall be
modified accordingly.

(12) If the proper officer is not satisfied with the reply of the applicant, the proper officer shall
issue an order in FORM GST SPL-06 rejecting the said application.

(13) (a) In cases where notice in FORM GST SPL-03 has not been issued, the proper officer
shall issue the order under sub-rule (10) within a period of three months from the date of
receipt of the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may
be.

(b) In cases where notice in FORM GST SPL-03 has been issued, the proper office shall
issue the order in sub-rule (10) or sub-rule (12) within a period of three months from the
date of receipt of reply of the applicant in FORM GST SPL-04, or within a period of four
months from the date of issuance of notice in FORM GST SPL-03 in case where no reply
is received from the applicant.
Explanation: For the purpose of this sub-rule, in cases referred in proviso to sub-rule (7),
the time period from the date of filing of the application under sub-rule (1) or sub-rule (2)
till the date of submission of the order for withdrawal of the appeal or the writ, as the case
may be, shall not be included while calculating the time period under clause (a) or clause
(b) of this sub-rule.

(14) If no order is issued by the proper officer within the time limit prescribed in sub-rule (13),
then the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be,
shall be deemed to be approved and the proceedings shall be deemed to be concluded.

(15) (a) In cases where no appeal is filed against the order in FORM GST SPL-06, within the
time period specified in sub-section (1) of section 107, the original appeal, if any, filed by
the applicant against the order mentioned in clause (b) or clause (c) of sub-section (1) of
section 128A, and withdrawn for filing the application in FORM GST SPL-02 in
accordance with sub-section (3) of section 128A, shall be restored.

(b) In cases where an appeal is filed against the order in FORM GST SPL-06, for rejection of
application for waiver of interest or penalty or both, if
(i) the appellate authority has held that the proper officer has wrongly rejected
the application for waiver of interest or penalty or both in FORM GST SPL-
06, the said appellate authority shall pass an order in FORM GST SPL-05A
on the common portal accepting the said application and concluding the
proceedings under section 128A.

(ii) the appellate authority has held that the proper officer has rightly rejected the
application for waiver of interest or penalty or both in FORM GST SPL-06,
the original appeal, if any, filed by the applicant against the order mentioned
in clause (b) or clause (c) of sub-section (1) of section 128A, and withdrawn


Page 12 of 83
for filing the application in FORM GST SPL-02 in accordance with sub-
section (3) of section 128A, shall be restored, subject to condition that the
applicant files an undertaking electronically on the portal in FORM GST
SPL-07, within a period of three months from the date of issuance of the
order by the appellate authority in FORM GST APL-04, that he has neither
filed nor intends to file any appeal against the said order of the Appellate
Authority.

(16) In cases where the taxpayer is required to pay an additional amount of tax liability as per
second proviso to sub-section (1) of section 128A and such additional payment is not made
within the time limit specified in the said proviso, the waiver of interest or penalty or both
under section 128A as per the order issued in FORM GST SPL-05 or FORM GST SPL-
05A, if any, shall become void.
(17) In cases where the taxpayer is required to pay any amount of interest or penalty or both, in
respect of any demand pertaining to erroneous refund or on account of demand pertaining
to the period other than the period mentioned in sub-section (1) of section 128A, and the
details of such amount have been mentioned in FORM GST SPL-05 or FORM GST SPL-
05A, the applicant shall pay the said amount of interest or penalty or both, within a period
of three months from the date of issuance of the order in FORM GST SPL-05 or FORM
GST SPL-05A, as the case may be, and where the said amount is not paid within the said
time period, the waiver of interest or penalty or both under section 128A as per the order
issued in FORM GST SPL-05 or FORM GST SPL-05A, shall become void.

Explanation: For the purposes of this rule, the proper officer for issuance of order under this
rule, in cases where the application for waiver of interest or penalty or both is made with respect
to a notice or statement mentioned in clause (a) of subsection (1) of section 128A, shall be the
proper officer for issuance of order as per section 73 of the Act, and in cases where the
application for waiver of interest or penalty or both is made with respect to an order mentioned
in clause (b) or clause (c) of subsection (1) of section 128A, shall be the proper officer referred to
in section 79 of the Act.



Page 13 of 83
Annexure-B
FORM GST SPL – 01
[See Rule 164(1)]
Application for waiver of interest or penalty or both under Section 128A,
in respect of a notice or a statement mentioned in clause (a) of sub-section (1) of section 128A
Reference No.
Date:


S.
No.
Particulars
1 a GSTIN/Temporary ID/UIN
b Legal Name of the Business (As
mentioned in PAN No.)
c Mobile Number
d Email Address
e Address
f Jurisdiction
2 S. No. Details of the notice
1 Notice / Statement No
2 Date of issuance of notice/ statement
3 Section under which notice/
statement is issued
Drop down
i. 73
ii. 74 read with section 75(2)
4 Whether any writ petition is filed
against the notice/ statement before
High Court/ Supreme Court
Drop down
Yes / No
5 If Yes in ‘4’,
whether the order for withdrawal of
writ petition is issued or not?
Drop down
Yes / No
6 Whether notice/ statement involves
demand of erroneous refunds
Drop down
Yes / No


Page 14 of 83
(Amount in Rs.)

2B Amount paid through DRC -03
Payment Reference No. IGST CGST SGST CESS Total Tax
including Cess
1 2 3 4 5 6
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TOTAL <Auto> <Auto> <Auto> <Auto> <Auto>
2A




Financial
Year
Amount demanded in notice/ statement (A)
Out of amount mentioned in (A), demand
pertaining only to ITC which has been denied
solely on account of contravention of Section 16(4)
and not on any other grounds, and which has now
become eligible as per Section 16(5) or Section
16(6), if any.
(B)
I
G
S
T
C
G
S
T
S
G
S
T
C
E
S
S
Total
Tax
including
Cess
Interest
Penalty
IGST CGST SGST CESS
Total Tax
including
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13


TOTAL


Page 15 of 83

3

Declaration:
1. I undertake that, I have not filed any writ petition against the said notice/ statement.
OR
I undertake that though I had filed a writ petition against the said order, I have
withdrawn the said writ petition or filed an application for withdrawal of the same and have
attached the copy of withdrawal order or the application filed for withdrawal, with this
application.


2. Further, I understand and agree that no appeal shall be filed against the order concluding
demand proceedings, issued under section 128A, in any forum in the future.

3. I declare that all information provided by me is accurate and truthful. I understand that
any incorrect declaration or suppression of facts will render this application void and may lead
to recovery proceedings for the outstanding dues along with applicable interest and penalties.
4 Verification:
I________________ (name of the authorized signatory), hereby declare that the information
provided above is true and correct to the best of my knowledge and belief. I understand that any
incorrect declaration or suppression of facts will render my application void and all benefits
under Section 128A will be withdrawn.

5 Upload required documents
Self-certified copy of notice/ statement
Proof of payment made through FORM GST DRC 03
Proof of withdrawal of writ petition or application filed
for withdrawal of writ petition (if the order for
withdrawal has not been issued) (where applicable)

Any other document (please specify)
Signature of authorized signatory
Name/Designation
Email address
Mobile No.


Page 16 of 83

Instructions:
1. In entries 1 to 6 of Table 2, the details of the notice/ statement against which the
application under Section 128A is filed needs to be filled in by the applicant.
2. In case the notice/ statement is available on the common portal, ARN number of the same
needs to be filled. If the same is not available on the portal, the reference number of the
manually issued notice/ statement needs to be filled.
3. In entry 3 of Table 2, the applicant has to choose the option ‘Section 73’ from the
dropdown, if the notice/ statement is issued under Section 73 at the first instance, and the
option ‘Section 74 read with Section 75(2)’ in case the notice was initially issued under
Section 74 and was later deemed to be issued under Section 73, based on the order of the
Appellate Authority/ Appellate Tribunal or Court as per Section 75(2).
4. In Table 2A, columns 2 to 8 will be auto filled, in case the notice/ statement is available
on the common portal. If the same is not available on the portal, the details of the same
are to be manually filled by the applicant.
5. While calculating the amount deductible on account of not being payable in accordance
with sub-section (5) or sub-section (6) of Section 16, from the amount payable in terms of
the notice or statement or order under section 73, as the case may be, applicant is required
to ensure that such amount is deducted only where ITC has been denied solely on account
of contravention of Section 16(4) and not on any other grounds.



Page 17 of 83
FORM GST SPL -02
[See rule 164(2)]
Application for waiver of interest or penalty or both under Section 128A, in respect of an
order mentioned in clause (b) or clause (c) of sub-section (1) of section 128A

Reference No.
S.
No.
Particulars Remarks
1 a GSTIN/Temporary ID/UIN
b Legal Name of the Business (As mentioned in
PAN No.)
<Auto>
c Mobile Number <Auto>
d Email Address <Auto>
e Address <Auto>
f Jurisdiction <Auto>
2 S. No. Details of the demand order
1 Demand Order No
2 Date of issuance of order
3 Section under which order is issued Drop down
i. 73
ii. 74 read with
section 75(2)
4 Whether any appeal or writ petition is filed against
order before the Appellate Authority/ Appellate
Tribunal/ High Court/ Supreme Court
Drop down
Yes / No
5 If Yes in ‘4’,
whether the order for withdrawal of appeal or writ
petition is issued or not?
Drop down
Yes / No
6 Whether demand order involves demand of
erroneous refunds
Drop down
Yes / No



Page 18 of 83
(Amount in Rs.)


3 Declaration:
1. I undertake that, I have not filed any appeal or writ petition against the said order.
OR
I undertake that though I had filed an appeal / writ petition against the said order, I
have withdrawn the said appeal/ writ petition (or) I have filed an application for withdrawal
of the same and have attached the copy of withdrawal order or the application filed for
withdrawal, with this application.
2. Further, I understand and agree that no appeal shall be filed against the order
2
A


Finan
cial
Year
Amount demanded in the order (A)
Out of the amount mentioned in
(A), demand pertaining only to
ITC which has been denied
solely on account of
contravention of Section 16(4)
and not on any other grounds,
and which has now become
eligible as per Section 16(5) or
Section 16(6)
(B)
IG
ST
CG
ST
SG
ST
CE
SS
Total
Tax
includ
ing
Cess
Inter
est
Pena
lty
IG
ST
CG
ST
SG
ST
CE
SS
Total
Tax
includ
ing
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13


TOT
AL

2B Amount paid through payment Facility against demand order mentioned in Table 2A
[including those paid through FORM GST DRC-03 and later adjusted through filing an
application in FORM GST DRC - 03A]
Credit
entry
Reference
No.
Reference
number of
FORM
GST DRC-
03 (where
applicable)
Reference
number of
FORM
GST DRC-
03A (where
applicable)
IGST CGST SGST CESS
Total
Tax
including
Cess
1 2 3 4 5 6 7 8
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Total <Auto> <Auto> <Auto> <Auto> <Auto>


Page 19 of 83
concluding demand proceedings, issued under section 128A in any forum in the future.
3. I also undertake that on issue of an order concluding demand proceedings issued under
section 128A, no writ shall be filed against the order mentioned in Table 2 of this form.
4. If an application is filed/ has been filed by the department against the order mentioned
in Table 2 or if any proceedings are initiated under sub-section (1) of section 108 against
the said order, and the Appellate Authority or the Appellate Tribunal or the court or the
Revisional Authority, as the case may be, issues an order enhancing my tax liability, I
undertake to pay the additional amount of tax payable within three months from the date
of the said order of the Appellate Authority or the Appellate Tribunal or the court or the
Revisional Authority, as the case may be, as per second proviso to sub-section (1) of
section 128A.
5. I declare that all information provided by me is accurate and truthful. I understand
that any incorrect declaration or suppression of facts will render this application void and
lead to recovery proceedings for the outstanding dues along with applicable interest and
penalties.

4 Verification:
I________________ (name of the authorized signatory), hereby declare that the information
provided above is true and correct to the best of my knowledge and belief. I understand that
any incorrect declaration or suppression of facts will render this application void and the
benefits provided under section 128A will not be valid.

5 Upload required documents
Self-certified copy of the order
Proof of withdrawal of appeal / writ petition or
application filed for withdrawal of appeal/ writ
petition (if the order for withdrawal has not been
issued) (where applicable)

Proof of payment made towards demand / paid
through FORM GST DRC-03 and adjusted
through FORM GST DRC-03A.

Any other document (please specify)
Signature of authorized signatory
Name/Designation…………..
Email address……………….
Mobile No……………….


Page 20 of 83
Instructions:
1. In columns 1 to 6 of Table 2, the details of the order against which the application under
Section 128A is filed needs to be filled in by the applicant.
2. In case the order is available on the common portal, ARN number of the same needs to be
filled. If the same is not available on the portal, the order number of the manually issued order
needs to be filled.
3. In Table 2A, columns 2 to 8 will be auto filled, in case the order is available on the common
portal. If the same is not available on the portal, the details of the same are to be manually
filled in by the applicant.
4. Similarly, the reference number of the credit entry (made in ELR- Part II) needs to be filled in
column 1 of Table 2B. In case the payment intended to be made towards the said demand
order was originally paid through FORM GST DRC-03, and later adjusted through filing an
application in FORM GST DRC - 03A, the reference numbers of the same are to be filled in
columns 2 and 3, and the rest of the columns will be auto-filled.
5. While calculating the amount deductible on account of not being payable in accordance with
sub-section (5) or sub-section (6) of Section 16, from the amount payable in terms of the
notice or statement or order under section 73, as the case may be, applicant is required to
ensure that such amount is deducted only where ITC has been denied solely on account of
contravention of Section 16(4) and not on any other grounds.



Page 21 of 83
FORM GST SPL -03
Notice in response to an application filed under Section 128A
[See Rule 164(8)]
Date:
Reference No.:
To
GSTIN of applicant ……………………………
Legal Name of applicant ………………………
Address of applicant …………………………

Reference No. of FORM GST SPL -01 or FORM GST SPL -02 ………… dated ……………
Subject: Notice in response to application filed under Section 128A-regarding

1. Whereas, you have submitted an application under Section 128A, declaring your outstanding dues
and seeking waiver of interest and penalty in the FORM GST SPL-01/ FORM GST SPL-02
bearing reference no……………dated ………….

2. Upon verification of your application and the details provided therein, your application is liable to
be rejected for the following reasons:
- [Reason 1]
- [Reason 2]
OR/ AND


Page 22 of 83
In this regard, it appears that the amount of tax is short paid by you as given below:
Demand details (A)
Demand paid through FORM
GST DRC 03 (in case of
notice/ statement) or by
crediting electronic liability
register in case of orders
Out of amount mentioned in
(A), demand pertaining only to
ITC which has been denied
solely on account of
contravention of Section 16(4)
and not on any other grounds,
and which has now become
eligible as per Section 16(5) or
Section 16(6), if any.
Demand Short Paid
No
tice
id/
Or
der
id
No
.
Fina
ncial
Peri
od
IG
ST
CG
ST
SG
ST
CE
SS
Tota
l
Tax
inclu
ding
Cess
IG
ST
CG
ST
SG
ST
CE
SS
Tota
l
Tax
inclu
ding
Cess
IG
ST
CG
ST
SG
ST
CE
SS
Tota
l
Tax
inclu
ding
Cess
IG
ST
CG
ST
SG
ST
CE
SS
Tota
l
Tax
inclu
ding
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22




Dro
p
dow
n


Dro
p
dow
n



3. You are hereby required to show cause, along with necessary documents in FORM GST SPL-04,
to support your claim, as to why your application no……….. dated …….. should not be rejected.
4. You are also granted an opportunity for a personal hearing on [date and time] at [venue]. You may
appear in person or through an authorized representative to present your case.

[Signature]
[Name of the Tax Officer]
[Designation]
[Jurisdiction]
[Address]

Upload Attachment


Page 23 of 83
FORM GST SPL-04
Reply to Notice issued under Rule 164(9)
[See Rule 164(9)]
Date:
Reference No:

To
Proper Officer ……………………………
Jurisdiction ……………………………
Legal Name of the applicant……………………………
Address of applicant …………………………

Reference No of FORM GST SPL-03: ……. Dated …..
Subject: Reply to the Notice issued in respect of application filed under Section 128A.

Sir/Madam,
This is in reference to the notice issued in FORM GST SPL-03 vide no …………… dated ………….
from your office.
The reply is as under:








Page 24 of 83
Enclosures:
The following documents in respect of payment proof or additional submissions are enclosed for your
reference:
• Document 1: [Taxpayer's Document 1]
• Document 2: [Taxpayer's Document 2]
• Document 3: [Taxpayer's Document 3]

Verification:
I ________________ hereby solemnly affirm and declare that the information given hereinabove are
true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.


[Signature of Authorised Signatory]
[Name of the of authorized signatory]
[Designation/Status]
[Date]



Page 25 of 83
FORM GST SPL -05
Order for conclusion of proceedings as per Section 128A
[See Rule 164 (10)]
Reference No. ……
Date:
To,
GSTIN of applicant ……………………………
Legal Name of applicant ……………………………
Address of applicant …………………………

Reference No. of FORM GST SPL-01/ FORM GST SPL-02 …………….. dated ……………
Subject: Order for Approval of Application submitted under Section 128A
This has reference to your application with reference no. …… dated ….. furnishing details/ information
and documents in support of your request for availing the benefit of waiver of interest or penalty or both
under section 128A.
OR
This has reference to your application with reference no. …… dated ….. , and your reply in FORM
GST SPL-04 with reference no. …… dated …… furnishing details/ information/ submission and
documents in support of your request for availing the benefit of waiver of interest or penalty or both
under section 128A .

2. Upon verification of the details provided in your application and the reply, where applicable,
waiver of interest or penalty or both under section 128A, is allowed as under:

3. Demand Notice/ Demand Order Details:
a. Order No/ Notice No.:
b. Date of order/ Notice:


Page 26 of 83

Fina
ncial
Year
Amount demanded in the notice/ statement/
order against which application under
Section 128A was filed (A)
Out of
the
amoun
t
mentio
ned in
(A),
deman
d
pertain
ing
only to
ITC
which
has
been
denied
solely
on
accoun
t of
contra
ventio
n of
Sectio
n 16(4)
and not
on any
other
ground
s, and
which
has
now
becom
e
eligibl
e as
per
Sectio
n 16(5)
or
Sectio
n 16(6)

Amount already paid towards the said
notice/ statement / order

Amount of
interest
and
Penalty
waived as
per Section
128A
Remaining
amount of
interest
and
penalty,
payable, if
any, by the
applicant
(in cases
referred to
in sub-rule
(3) and
sub-rule
(4) of Rule
164)
Pla
ce
of
Su
ppl
y
(Po
S)

Ac
t
Tax
inclu
ding
cess
Inte
rest
Pen
alty
F
e
e
Ot
her
s
Tax
includi
ng cess
Pla
ce
of
Su
ppl
y
(Po
S)

A
ct
Tax
inclu
ding
cess
Inte
rest
Pen
alty
F
e
e
Ot
her
s
Inte
rest
Pen
alty
Inte
rest
Pen
alty
1 2 3 4 5 6 7 8 9 10 11 12 13 14 1
5
16 17 18 19 20
CG
ST

C
GS
T


Page 27 of 83
SG
ST SG
ST
IG
ST IG
ST

Ce
ss

Ce
ss

TOTAL TOTAL

CG
ST

C
GS
T

SG
ST SG
ST
IG
ST IG
ST
Ce
ss Ce
ss
TOTAL TOTAL

[Signature]
[Name of the Tax Officer]
[Designation]
[Jurisdiction]
[Address]

Notes -
Any incorrect declaration or suppression of facts will render this approval void and may lead to
recovery proceedings for the outstanding dues along with applicable interest and penalties.



Page 28 of 83
FORM GST SPL -05A
Order for conclusion of proceedings as per Section 128A
[See Rule 164 (15)(b)(i)]
Reference No. ……
Date:
To,
GSTIN of applicant ……………………………
Legal Name of applicant ……………………………
Address of applicant …………………………
Name of the authorised representative -

Reference No. of FORM GST SPL-01/ FORM GST SPL-02 …………….. dated ……………
Reference No. of FORM GST SPL-06 ……………… dated ………….
Reference No. of FORM GST APL-01 ……………… dated ………….

Subject: Order for Approval of Application submitted under Section 128A
1. This has reference to your appeal with reference no. …… dated ….. furnishing details/
information/ prayer and documents in support of your request for availing the benefit of waiver
of interest or penalty or both under section 128A.
2. Upon verification of the details provided in your application and the reply, where applicable,
waiver of interest or penalty or both under section 128A, is allowed as under:
3. Demand Notice/ Demand Order Details:
a. Order No/ Notice No.:
b. Date of order/ Notice:


Page 29 of 83
Fina
ncial
Year
Amount demanded in the notice/ statement/
order against which application under
Section 128A was filed (A)
Out of
the
amoun
t
mentio
ned in
(A),
deman
d
pertain
ing
only to
ITC
which
has
been
denied
solely
on
accoun
t of
contra
ventio
n of
Sectio
n 16(4)
and not
on any
other
ground
s, and
which
has
now
becom
e
eligibl
e as
per
Sectio
n 16(5)
or
Sectio
n 16(6)
Amount already paid towards the said
notice/ statement / order

Amount of
interest
and
Penalty
waived as
per Section
128A
Remaining
amount of
interest
and
penalty,
payable, if
any, by the
applicant
(in cases
referred to
in sub-rule
(3) and
sub-rule
(4) of Rule
164)
Pla
ce
of
Su
ppl
y
(Po
S)

Ac
t
Tax
inclu
ding
cess
Inte
rest
Pen
alty
F
e
e
Ot
her
s
Tax
includi
ng cess
Pla
ce
of
Su
ppl
y
(Po
S)

A
ct
Tax
inclu
ding
cess
Inte
rest
Pen
alty
F
e
e
Ot
her
s
Inte
rest
Pen
alty
Inte
rest
Pen
alty
1 2 3 4 5 6 7 8 9 10 11 12 13 14 1
5
16 17 18 19 20

CG
ST

C
GS
T

SG
ST SG
ST


Page 30 of 83
IG
ST IG
ST
Ce
ss Ce
ss
TOTAL TOTAL

CG
ST

C
GS
T

SG
ST SG
ST
IG
ST IG
ST
Ce
ss Ce
ss
TOTAL TOTAL

[Signature]
[Name of the Appellate Authority]
[Designation]
[Jurisdiction]

Notes -
Any incorrect declaration or suppression of facts will render this approval void and may lead to
recovery proceedings for the outstanding dues along with applicable interest and penalties.


Page 31 of 83
FORM GST SPL -06
Order for Rejection of Application submitted under Section 128A
[See Rule 164(12)]
Reference No. ……..
Date:
To,
GSTIN of applicant ……………………………
Legal Name of applicant ……………………………
Address of applicant …………………………
Reference is invited to:
Particulars Reference No. Dated
Application in FORM GST SPL -01/ FORM GST SPL-02
Show Cause Notice in FORM GST SPL -03:
Reply to the Show Cause Notice in FORM GST SPL -04:
Subject: Order for Rejection of Application submitted under Section 128A
This has reference to your application with reference no. …… dated ….. furnishing details/
information and documents in support of your request for availing the benefit of waiver of interest and
penalty under section 128A. The notice referred to above was issued to you to explain the reasons as
to why the said application should not be rejected, for which you had furnished reply dated ……/ no
reply was furnished by you.

2. Introduction:

3. Submissions, if any:

4. Conclusion:


Page 32 of 83

Based on the verification your application with reference no. …….. dated …… filed under
Section 128A, is hereby rejected.

5. Summary of rejection:
Order id/ SCN id Reason for rejection

<Drop Down>
Options in <Drop Down>
1. Full payment not made
2. Payment made after the date notified in Section 128A.
3. Notice/ Order pertaining to Sections other than Section 73.
4. Appeal/ writ petition filed before Appellate Authority/ Appellate
Tribunal/ High Court/ Supreme Court not withdrawn
5. Others, please specify.

[Signature]
[Name of the Tax Officer] ………
[Designation]……….
[Office Name] ………..
[Contact Information]…………



Page 33 of 83
FORM GST SPL -07
Undertaking submitted under Rule 164(15)(b)(ii)
[See Rule 164(15)(b)(ii)]
Date:
Reference No:
1. Legal Name of the applicant……………………………
2. Address of applicant …………………………
3. GSTIN of the applicant:
4. Reference No of FORM GST SPL-02: ……. dated …..
5. Reference No of FORM GST SPL-06: ……. dated …..
6. Reference No of FORM GST APL-04 passed with reference to FORM GST SPL-06 specified
at serial number 5 above: ……. dated …..
7. Reference number of appeal filed originally but subsequently withdrawn …… dated …….

Subject: Undertaking submitted in respect of Rule 164(15)(b)(ii).
Sir/Madam,
I hereby undertake not to file an appeal against the order of the appellate authority bearing
reference number …… dated …., as specified at serial number 6 above, and accordingly I pray for
restoration of my appeal filed vide reference number …… dated …. as specified at serial number 7
above.

I ________________ hereby solemnly affirm and declare that the information given
hereinabove are true and correct to the best of my knowledge and belief and nothing has been
concealed therefrom.
[Signature of Authorized Signatory]
[Name of the of authorized signatory]
[Designation/Status]
[Date]




Page 34 of 83
Annexure-C
CBIC-…………………..-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the ……………

To,
The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)

Madam/Sir,
Subject: Clarification of various doubts related to Section 128A of the CGST Act, 2017.
Based on the recommendations of the GST Council made in its 53rd meeting, Section 128A
has been inserted in the Central Goods and Services Tax Act, 2017 (hereinafter referred to as ‘the
CGST Act’), to provide for waiver of interest or penalty or both, relating to demands under section 73
of the CGST Act, pertaining to Financial Years 2017-18, 2018-19 and 2019-20, subject to certain
conditions.
1.2 Subsequently, based on the recommendations of the GST Council made in its 54th meeting,
Rule 164 has been inserted in Central Goods and Services Tax Rules, 2017 (hereinafter referred to as
‘the CGST Rules’) vide notification No. xx/2024 dated xx September 2024, providing for procedure
and conditions for closure of proceedings under section 128A of CGST Act.

1.3 Further, vide notification No. xx/2024 dated xx September 2024, dd/ mm/ yyyy has been
notified under sub-section (1) of section 128A of CGST Act, as the date on or before which, the full
payment of tax demanded in the notice/ statement/ order needs to be made by the taxpayer in order to
avail the benefit of waiver of interest or penalty or both under the said section. Also, for cases where
the application is made as per the first proviso to the sub-section (1) of the section 128A, the date on
or before which, the full payment of tax demanded in the order issued by the proper officer
redetermining the tax under section 73 needs to be made by the taxpayer, has been notified as six
months from the date of issuance of such order by the proper officer redetermining the tax under
section 73.
2.1 Various doubts have been raised by the trade and the field formations in respect of
implementation of provisions of Section 128A of the CGST Act, relating to waiver of interest or
penalty or both in respect of demands under section 73 of the CGST Act pertaining to Financial Years
2017-18, 2018-19 and 2019-20.


Page 35 of 83
2.2 In order to clarify the issue and to ensure uniformity in the implementation of the provisions
of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of
the CGST Act, hereby issues the following clarifications and guidelines.

2.3 Unless otherwise specified, all the sections mentioned in this circular refer to sections of the
CGST Act and all the rules mentioned refer to the CGST Rules.

3. The procedure to be followed by the taxpayers and the tax officers to avail and implement
the benefit provided under Section 128A, is as follows:


3.1 Filing of application:

3.1.1 Section 128A provides for “Waiver of interest or penalty or both relating to demands raised
under section 73, for certain tax periods”. Therefore, provisions of Section 128A are applicable in
cases where notices/ statements have been issued under Section 73, for the FYs 2017-18, 2018-19
and 2019-20, in the following situations:
(a) Where a notice issued under sub-section (1) of section 73 or a statement issued under
sub-section (3) of section 73, and where no order under sub-section (9) of section 73 has
been issued;
(b) Where an order has been issued under sub-section (9) of section 73, in respect of such
notice/ statement issued under section 73, but where no order has been issued by the
Appellate Authority/ Revisional Authority under sub-section (11) of section 107 or sub-
section (1) of section 108;
(c) Where an order has been issued by the Appellate Authority/ Revisional Authority under
sub-section (11) of section 107 or sub-section (1) of section 108, in such cases where
notice/ statement was issued under section 73 and where no order under sub-section (1) of
section 113 has been passed by the Appellate Tribunal;
3.1.2 Additionally, as per the first proviso to sub-section (1) of Section 128A, in cases where a
notice was initially issued under section 74 for FYs 2017-18, 2018-19 and 2019-20, and an order is
passed or required to be passed by the proper officer under section 73 (in pursuance of the direction
of the Appellate Authority or Appellate Tribunal or a court in accordance with the provisions of sub-
section (2) of section 75), those cases are also covered under Section 128A for the purpose of waiver
of interest or penalty or both.

3.1.3 In cases referred to in clause (a) of sub-section (1) of Section 128A where a notice/
statement under Section 73 has been issued demanding tax inter alia pertaining to the period from
July 2017 to March 2020, for which no order has been issued under section 73, an application in
FORM GST SPL-01, may be filed electronically on the common portal, by the taxpayer.

3.1.4 In cases referred to in clause (b) of sub-section (1) of Section 128A, where an order has
been issued under Section 73 demanding tax inter alia pertaining to the period from July 2017 to
March 2020, for which no order has been issued under section 107 or section 108, an application in
FORM GST SPL-02, may be filed electronically on the common portal, by the taxpayer. Similarly,
in cases referred to in clause (c) of sub-section (1) of Section 128A, where an order has been issued


Page 36 of 83
under Section 107 or Section 108, but no order has been issued under section 113, an application in
FORM GST SPL-02, may be filed electronically on the common portal, by the taxpayer.

3.1.5 The application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be, shall be
filed within a period of three months from the date notified under section 128A (1), i.e., within three
months from _________. However, as per the first proviso to sub-section (1) of Section 128A, where
a notice has been issued under section 74, and the Appellate Authority or Appellate Tribunal or a
court directs the proper officer to redetermine the tax as if the demand notice is issued under section
73, in accordance with the provisions of section 75(2), then same is covered under clause (b) of sub-
section (1). Therefore, as mentioned in proviso to sub-rule (6) of Rule 164, in such cases, an
application in FORM GST SPL-02, can be filed within six months from the date of communication
of order of the proper officer redetermining the amount of tax to be paid under section 73.
3.1.6 Where an appeal under Section 107 or section 112 has been filed by the taxpayer, against an
order referred to in clause (b) or clause (c) of sub-section (1) of section 128A, or where a writ
petition has been filed by the taxpayer against a notice/ statement/ order referred to in clause (a) or
(b) or clause (c) of sub-section (1) of section 128A, the taxpayer is required to withdraw the same
before filing an application for waiver of interest or penalty or both, and enclose the order of
withdrawal of such appeal/ writ petition in along with the application filed in FORM GST SPL-01
or FORM GST SPL-02, as the case may be. However, in cases where the applicant has filed the
application or any other document, for withdrawal of an appeal or writ petition before Appellate
Authority or Appellate Tribunal or a court, as the case may be, but the order for withdrawal has not
been issued by the concerned authority till the date of filing of the application in FORM GST SPL-
01 or FORM GST SPL-02, he is required to upload the copy of such application or the document
filed for withdrawal of the said appeal or writ petition along with the said application in FORM GST
SPL-01 or FORM GST SPL-02. It is to be mentioned that he is required to upload the final order for
withdrawal of the said appeal or writ petition on the common portal, within one month of the
issuance of the said order for withdrawal by the concerned authority.
3.1.7 It may be noted that, in case the taxpayer has been issued multiple notices/ statements/
orders pertaining to demands under section 73, for period from July 2017 to March 2020, he is
required to file a separate application in FORM GST SPL-01 or FORM GST SPL-02, as the case
may be, in respect of each of the concerned notice/ statement/ order.
3.2 Payment of tax:

3.2.1 With respect to a notice or statement referred to in clause (a) of sub-section (1) of Section
128A, i.e., a notice or statement that is yet to be adjudicated, the payment towards the tax demanded
in the said notice shall be made by the taxpayer through FORM GST DRC-03.
3.2.2 With respect to an order referred to in clause (b) and clause (c) of sub-section (1) of Section
128A, the payment towards such tax demanded shall be made by the taxpayer, only by the making
the payment against the debit entry created in the Part II of the Electronic Liability Register (ELR)
by the demand order. In this regard, the procedure mentioned in para 4 of Circular No. 224/18/2024
-GST dated 11th July 2024 may be referred to. However, in cases where the payment towards tax
demanded in the demand order has already been made through FORM GST DRC-03, the procedure
prescribed in rule 142(2B) may be followed. In such cases, the taxpayer shall be required to file an
application in FORM GST DRC-03A as prescribed in the said rule, in order to adjust the amount
already paid vide the FORM GST DRC-03, towards the demand created in the ELR-Part II, before


Page 37 of 83
filing the application for waiver under Section 128A in FORM GST SPL-02. For the purposes of
determining the date of payment of full amount of tax, the date on which the amount has been paid
through FORM GST DRC-03 may be considered and not the date on which the said amount has
been adjusted using FORM GST DRC-03A.

3.2.3 Such payment shall be made on or before the date notified under section 128A (1), i.e., on or
before _________. Where applications are filed in respect of cases referred to in the first proviso to
sub-section (1) of section 128A, then the applicants shall be required to make the payment on or
before the date notified under section 128A (1) specifically for those cases, i.e., within six months of
the communication of the order of the proper officer redetermining the amount of tax to be paid
under section 73.

3.2.4 In cases where the amount of tax payable as per the notice/ statement/ order includes the
amount that was demanded due to contravention of provisions of sub-section (4) of section 16,
which is however not payable anymore due to the retrospective insertion of sub-section(5) and sub-
section(6) to section 16, the full amount of tax payable as per the notice/ statement/ order as
mentioned in sub-section (1) of section 128A for eligibility of waiver of interest or penalty or both
shall be calculated after deducting the amount, which is not payable anymore as per sub-sections (5)
and (6) of section 16, as per sub-rule (5) of Rule 164. In this regard, it is also to be mentioned that,
where the taxpayer is deducting the amount of ITC which was denied on account of contravention of
sub-section (4) of section 16, but which is now available as per retrospectively inserted provisions of
sub-section (5) or sub-section (6) of section 16 of the CGST Act, he is not required to file an
application for rectification for the same in terms of the special procedure notified under section 148
vide notification No. XX/2024 dated ……….
3.2.5 It is also clarified that while calculating the amount deductible on account of not being
payable in accordance with sub-section (5) or sub-section (6) of Section 16, from the amount
payable in terms of the notice or statement or order under section 73, as the case may be, taxpayer is
required to ensure that such amount is deducted only where ITC has been denied solely on account
of contravention of Section 16(4) of the CGST Act and not on any other grounds. The tax officer
scrutinising such applications is also required to verify that the said amount that has been deducted
by the taxpayer as not payable anymore on account of retrospective insertion of sub-section (5) and
sub-section (6) to section 16, was initially denied solely deducted on the basis of contravention of
sub-section (4) of section 16, and not on any other grounds.
3.2.6 It is further mentioned that, in cases referred to in sub-rule (3) and sub-rule (4) of rule 164,
the applicant can file the application for waiver of interest or penalty or both under section 128A, in
respect of a notice/ statement/ order mentioned in sub-section (1) of section 128A, only after
payment of full amount of tax demanded in the said notice/ statement/ order, including on account of
demand pertaining to erroneous refund, if any, and also on account of demand pertaining to the
period other than the period mentioned in sub-section (1) of section 128A, if any, in the said notice/
statement/ order.
3.3 Processing of application and issuance of order:
3.3.1 The proper officer for processing the application for waiver of interest or penalty or both
under Section 128A, would be the proper officer to issue the order under section 73, in case the


Page 38 of 83
application is filed in FORM GST SPL-01, and would be the proper officer for recovery under
Section 79, in case the application is filed in FORM GST SPL-02.

3.3.2 The proper officer on receipt of the application in FORM GST SPL-01 or FORM GST SPL-
02, shall examine the said application. If, on examination, he finds that the said application is liable
to be rejected, he shall issue a notice to the applicant, within three months from the date of receipt of
the said application, in FORM GST SPL-03 on the common portal. The proper officer shall also give
the applicant an opportunity of personal hearing.

3.3.3 On receipt of the notice in FORM GST SPL-03, the applicant may file his reply in FORM
GST SPL-04, electronically on the common portal, within a period of one month from the date of
receipt of the notice.

3.3.4 The proper officer shall issue an order in FORM GST SPL-05, accepting the said
application, if he is satisfied that the applicant is eligible for waiver of interest or penalty or both
under Section 128A. However, if the proper officer, based on the application and the reply in FORM
GST SPL-04 received from the taxpayer, is of the view that the applicant is not eligible for waiver of
interest or penalty or both under Section 128A, he shall issue an order in FORM GST SPL-06,
rejecting the said application.

3.3.5 The order in FORM GST SPL-05 or FORM GST SPL-06 shall be required to be issued
within the time period prescribed in sub-rule (13) of rule 164. In terms of sub-rule (14) of rule 164,
in cases where no order is issued within the time limit prescribed in sub-rule (13) of rule 164, the
application filed in FORM GST SPL-01 or FORM GST SPL -02, as the case may be, shall be
deemed to be approved, and the order in FORM GST SPL-05 approving the said application shall be
made available on the common portal.

3.3.6 In cases where an application for waiver of interest or penalty or both was filed in FORM
GST SPL-01 and an order approving the said application is issued by the proper officer in FORM
GST SPL-05, then a summary of order in FORM GST DRC-07 need not be issued on the common
portal. However, in cases where an order in FORM GST SPL-05 or in FORM GST SPL-05A, as
the case may be, has been issued approving an application filed in FORM GST SPL-02, the liability
earlier created in the ELR – Part II by the demand order or the appellate order, as the case may be,
shall stand modified accordingly.

3.3.7 It is also to be mentioned that as per the second proviso to sub-section (1) of Section 128A,
the conclusion of proceedings against a demand notice/ statement/ order under this section and
further issuance of such conclusion order in FORM GST SPL-05 or in FORM GST SPL-05A, as the
case may be, in cases where the department had filed an application/ initiated revisional proceedings
against the said demand notice/ statement/ order, is conditional upon the payment of additional tax
payable, if any, as determined by the Appellate Authority or the Appellate Tribunal or the court or the
Revisional Authority, as the case may be, within three months of issuance of such order. In case,
such additional tax is not paid within the specified time limit, then as per sub-rule (16) of Rule 164,
the waiver of interest or penalty or both provided under section 128A as per the order issued in
FORM GST SPL-05 or FORM GST SPL-05A, as the case may be, shall become void.


Page 39 of 83
3.3.8 Further, while processing the said application, the proper officer shall ensure that the
applicant has paid the amount of tax demanded in the notice/ statement/ order referred in sub-section
(1) of section 128A (other than the amount not payable anymore due to the retrospective insertion of
sub-section(5) and sub-section(6) to section 16, as referred in para 3.2.4), including the amount of
tax demand pertaining to erroneous refund, if any, and also on account of demand pertaining to the
period other than the period mentioned in sub-section (1) of section 128A, if any, in the said notice/
statement/ order. Further, the proper officer shall also keep in consideration that waiver of interest
and penalty under section 128A is available only in respect of demand pertaining to the period
mentioned in sub-section (1) of section 128A, and the demand on issues other than on account of
erroneous refund.

3.3.9 Where it is found that any amount of interest and penalty is payable by the applicant on
account of some demand pertaining to the period other than the period mentioned in sub-section (1)
of section 128A or pertaining to demand of erroneous refund, the detail of the same shall be
mentioned in column no. 19 and column no. 20 of FORM GST SPL-05 or FORM GST SPL-05A, as
the case may be. Further, in such cases, an opportunity of personal hearing may be granted to the
applicant, before issuance of order in FORM GST SPL-05 or FORM GST SPL-05A.

3.3.10 In cases referred in para 3.3.9, the applicant is required to pay the amount of interest or
penalty or both, detailed in column no. 19 and column no. 20 of FORM GST SPL-05 or FORM GST
SPL-05A, within a period of three months from the date of issuance of the said order in FORM GST
SPL-05 or FORM GST SPL-05A, as the case may be. In case where the said amount is not paid
within the period of three months from the date of issuance of the said order in FORM GST SPL-05
or FORM GST SPL-05A, as the case may be, the waiver of interest or penalty or both under section
128A as per the order issued in FORM GST SPL-05 or FORM GST SPL-05A, shall become void, as
per sub-rule (17) of rule 164.

3.4 Appeal against the orders issued under Rule 164:

3.4.1 No appeal shall lie under section 107, against an order issued in FORM GST SPL-05
concluding the proceedings under section 128A. The order issued in FORM GST SPL-06, rejecting
the application for waiver, shall be, however, appealable in accordance with sub-section (1) of section
107 within the time limit specified therein, by filing an application in FORM GST APL-01. In such
cases, normally, no pre-deposit may be required to be paid by the taxpayer for filing the said appeal,
as the said amount may already have been paid as a part of payment of tax dues involved in the
demand notice/ statement / order before filing an application in FORM GST SPL-01 or FORM GST
SPL-02. However, in cases where no amount of tax dues has been paid or amount of tax dues paid is
less than the requisite amount for pre-deposit for filing appeal as per sub-section (6) of section 107,
the remaining amount of pre-deposit will be required to be paid for filing the said appeal.
3.4.2 It is also important to note that the subject matter of the appeal will only be regarding the
applicability of waiver of interest or penalty or both under Section 128A and not on the merits of the
original notice/ statement/ order.
3.4.3 It is to be mentioned that, in cases where an appeal has been filed by the applicant against
the order in FORM GST SPL-06, and the appellate authority holds that the proper officer has
wrongly rejected the application, thereby allowing the applicant the benefit of the waiver of interest


Page 40 of 83
or penalty or both, the said appellate authority shall pass an order in FORM GST SPL-05A. This
form shall accordingly modify the liability created, if any, in the ELR-Part II.

3.4.4 Where appeal had been withdrawn before filing an application in FORM GST SPL-02, for
availing the waiver of interest or penalty or both under Section 128A, but the application for waiver
is rejected by the proper officer by issuance of order in FORM GST SPL-06,
(a) in cases, where the taxpayer prefers an appeal against the said rejection order, and the
appellate authority holds that the proper officer has righty rejected the said application made
in FORM GST SPL-02, and issues an order in FORM GST APL-04, then the original appeal
filed by the applicant shall be restored, subject to condition that the applicant files an
undertaking electronically on the portal in FORM GST SPL-07, that he has neither filed nor
intends to file any appeal against such order of the Appellate Authority.

(b) in cases, where the taxpayer prefers an appeal against the said rejection order, and the
appellate authority holds that the proper officer has wrongly rejected the said application
made in FORM GST SPL-02, and issues an order in FORM GST SPL-05A, thereby holding
that the appellant is eligible for waiver of interest or penalty or both, no appeal shall lie
against the said order issued in FORM GST SPL-05A.

(c) in case, where the taxpayer does not prefer an appeal within the time period mentioned in
sub-section (1) of section 107 against the said rejection order, then the original appeal filed
by the applicant shall be restored.

4. Further, the following issues with respect to availing the benefit of waiver of interest or
penalty or both provided under Section 128A, are also clarified hereby:
S.
No.
Issue Clarification
1 Whether the benefit provided
under Section 128A will be
applicable to taxpayers who have
paid the tax component in full
before the date on which the said
section has come into effect?
In this regard, it is to be mentioned that all such amount
paid towards the said demand upto the date notified
under sub-section (1) of section 128A, irrespective of
whether the said payment has been done before Section
128A comes into effect, or after that, and irrespective of
whether such payment was made before the issuance of
the demand notice or demand order, or after that, shall be
considered as paid towards the amount payable in sub-
section (1) of Section 128A, as long as the said amount
has been paid upto the date notified under sub-section (1)
of section 128A and was intended to be paid towards the
said demand.
2 Whether amount recovered by the
tax officers as tax due from any
other person on behalf of the
taxpayer, against a particular
demand can be considered as tax
paid towards the same for the
Yes.
The said amount recovered by the tax officers as tax due
from any other person on behalf of the taxpayer against a
demand, shall also be considered as the tax paid towards
the said demand, for the purpose of section 128A


Page 41 of 83
purpose of Section 128A? provided the same has been recovered on or before the
date notified under sub-section (1) of section 128A.
3 Whether the amount recovered by
the tax officers as interest or
penalty or both, pertaining to
demand under Section 73
pertaining to Financial Years
2017-18, 2018-19 and 2019-20,
can be adjusted against the tax
amount payable towards the
demand made under Section 73
pertaining to the said financial
years?
No. It is mentioned that as per the third proviso to sub-
section (1) of section 128A, no refund of such amount of
interest or penalty or both, is available.
Accordingly, any amount paid by the taxpayer or
recovered by the tax officers, as interest or penalty
cannot be adjusted towards the amount payable as tax.
4 Whether the benefit provided
under Section 128A will be
applicable in cases, where the tax
due has already been paid and the
notice or demand orders under
Section 73 only pertains to
interest and/or penalty involved?
Where the tax due has already been paid and the notice
or demand orders under Section 73 only pertains to
interest and/or penalty involved,
the same shall be considered for availing the benefit of
section 128A.
However, the benefit of waiver of interest and penalty
shall not be applicable in the cases where the interest has
been demanded on account of delayed filing of returns,
or delayed reporting of any supply in the return, as such
interest is related to demand of interest on self-assessed
liability and does not pertain to any demand of tax dues
and is directly recoverable under sub-section (12) of
section 75.
5

Whether the benefit under Section
128A is available, if the taxpayer
intends to avail partial waiver of
interest or penalty or both, on
certain issues, by making part
payment of the amount demanded
in the notice/ statement/ order, as
the case may be, and opts to
litigate for the remaining issues?
No.

Section 128A (1) clearly provides that the waiver of
interest or penalty or both is only applicable when the
full amount of tax demanded in the notice/ statement/
order is paid.
6 Where the notice/order involves
multiple periods, ranging from
the period for which waiver
provided in Section 128A is
applicable, and includes some
other tax periods for which such
waiver is not applicable, whether
the benefit of waiver of interest or
The taxpayer is eligible to apply for waiver of interest or
penalty or both, in such cases where the demand notice/
order spans tax periods covered under Section 128A and
those not covered under the said section.
However, as per sub-rule (4) of Rule 164, the taxpayer
shall be required to pay the full amount of tax demanded
in the notice/ statement / order, as the case may be, to


Page 42 of 83
penalty or both under Section
128A can be availed for the
period covered under section
128A?

If so, what is the tax amount
payable for claiming waiver
under Section 128A?

avail the benefit of waiver of interest or penalty or both
under Section 128A.
Further, though the amount of tax demanded shall be
required to be paid as per the notice/ statement / order, as
the case may be, for whole of the period covered under
the said notice/ statement / order, but the waiver of
interest or penalty or both under section 128A shall only
be applicable for the period specified in section 128A,
and not for the period not covered under the said section.
On payment of the full amount demanded in the notice/
statement/ order, if the proper officer finds that the
applicant is eligible for waiver of interest or penalty or
both for tax periods covered under Section 128A, he will
reduce the liability to that extent in his order in FORM
GST SPL-05, and the remaining liability of interest or
penalty or both for tax periods not covered under Section
128A, remains payable by the taxpayer.
The said amount shall be required to be paid by the
applicant within three months from the date of issuance
of order in FORM GST SPL-05 or FORM GST SPL-
05A, as the case may be. If the said amount is not paid
within the time limit as mentioned above, the order in in
FORM GST SPL-05 or FORM GST SPL-05A, as the
case may be, the waiver of interest or penalty or both
under section 128A as per the order issued in FORM
GST SPL-05 or FORM GST SPL-05A, shall become
void, as per sub-rule (17) of rule 164.
7 Where the notice/ statement/
order issued under Section 73
involves multiple issues and one
of them is regarding demand of
erroneous refund, whether an
application can be filed for
waiver of interest or penalty or
both under Section 128A?

If so, what is the tax amount
payable for claiming waiver
under Section 128A?
Yes.

However, as per sub-rule (3) of Rule 164, the taxpayer
shall be required to pay the full amount of tax demanded
in the notice/ statement / order, as the case may be,
including on account of demand of erroneous refund, to
avail the benefit of waiver of interest or penalty or both
under Section 128A.
Further, in such cases, the waiver of interest or penalty or
both under section 128A shall only be available in
respect of tax demand other than that pertaining to
demand of erroneous refund.
On payment of the full amount demanded in the notice/
statement/ order, if the proper officer finds that the
applicant is eligible for waiver of interest or penalty or


Page 43 of 83
both for tax periods covered under Section 128A in
respect of tax demand other than that pertaining to
demand of erroneous refund, he will reduce the liability
to that extent in his order in FORM GST SPL-05, and the
remaining liability of interest or penalty or both, that
corresponds to demand of erroneous refund, remains
payable by the applicant.
The said amount shall be required to be paid by the
applicant within three months from the date of issuance
of order in FORM GST SPL-05 or FORM GST SPL-
05A, as the case may be. If the said amount is not paid
within the time limit as mentioned above, the order in in
FORM GST SPL-05 or FORM GST SPL-05A, as the
case may be, the waiver of interest or penalty or both
under section 128A as per the order issued in FORM
GST SPL-05 or FORM GST SPL-05A, shall become
void, as per sub-rule (17) of rule 164.
8 In cases where department has
filed an appeal against the order
mentioned in clause (b) or clause
(c) of sub-section (1) of section
128A and the Appellate Authority
or the Appellate Tribunal or the
court or the Revisional Authority,
has issued an order enhancing the
tax liability, and in the meanwhile
the proper officer has issued an
order in FORM GST SPL-05
under section 128A, and the
taxpayer has not paid the said
additional amount of tax liability
within the specified time limit,
what will be the status of the
conclusion of proceedings under
Section 128A?
Yes, as per the second proviso to section 128A, the
conclusion of proceedings in such cases is subject to the
condition that the said person pays the additional amount
of tax payable, if any, in accordance with the order of the
Appellate Authority or the Appellate Tribunal or the
court or the Revisional Authority, as the case may be,
within three months from the date of the said order.
Accordingly, it becomes clear that even in cases where
an order in FORM GST SPL-05 or in FORM GST SPL-
05A has been issued the conclusion of the said
proceedings will be subject to the condition that the
taxpayer pays the additional tax amount as determined
by the Appellate Authority or the Appellate Tribunal or
the court or the Revisional Authority by an order issued
in the matter of appeal filed by the department, within a
period of three months from the date of the such order
enhancing the tax liability.
In case such additional payment is not done within a
period of three months from the date of the said order,
then as per sub-rule (16) of Rule 164, the waiver of
interest or penalty or both under section 128A as per the
order issued in FORM GST SPL-05 shall become void.
9 Sub-section (3) of section 128A
refers to only appeal or writ
petition.
Yes, in such cases also the applicant will be required to
withdraw the said special leave petition and file an
application in FORM GST SPL-01 or FORM GST SPL-
02, as the case may be, along with proof of withdrawal
of SLP or the copy of the application or any other


Page 44 of 83

In this regard, whether matters
where SLP filed by the applicant
is pending before the Supreme
Court, what is the procedure to be
followed by the taxpayer to avail
the waiver of interest or penalty
or both?
document filed for withdrawal of SLP, where the order
for withdrawal of SLP has not been issued at the time of
filing application in FORM GST SPL-01 or FORM GST
SPL-02. In such cases, the procedure mentioned in para
3.1.6 may be followed.
10 Whether the benefit provided
under Section 128A will be
available for matters involving
IGST and Compensation Cess?
Yes.
On joint reading of section 20 of the Integrated Goods and
Services Tax Act, 2017 and section 11 of GST
(Compensation to States) Act, 2017 along with section
128A of CGST Act, it becomes clear that the benefit
provided under Section 128A of CGST Act will be
available for matters involving IGST and compensation
cess as well.
In this regard, it is mentioned that in such cases, full
payment of tax means payment of CGST, SGST, IGST
and compensation cess demanded in the notice/
statement/ order, as the case may be.
11 Whether Section 128A covers
cases involving demand of
irregularly availed transition
credit?
The transitional credit is considered to be availed on the
date on which the said credit amount is credited in the
Electronic Credit Ledger.
On reading Rule 121 read with sub-rule (3) of rule 117, it
is clear that any demand in respect of transitional credit
wrongly availed, whether wholly or partly can be made
under section 73 or, as the case may be, section 74.

Therefore, it is mentioned that if the amount of
transitional credit has been availed in the period covered
under Section 128A and notice for demand of wrongly
availed credit is issued under section 73, the same is
covered under Section 128A.
12 Whether Section 128A will cover
waiver of penalties under other
provisions, late fee, redemption
fine etc?
It is clarified that any penalty, including penalties under
section 73, section 122, section 125 etc, demanded under
the demand notice/ statement/ order issued under section
73, is covered under the waiver provided under Section
128A.
However, late fee, redemption fine etc are not covered


Page 45 of 83
under the waiver provided under Section 128A.
13 Whether payment to avail waiver
under Section 128A can be made
by utilizing ITC?
Yes.
The payment of tax required to be made for eligibility for
waiver under section 128A is the amount of tax demanded
in the notice/ statement/ order. Therefore, it can be paid
either by debiting from electronic cash ledger or by
utilising the Input Tax Credit (ITC), by debiting the
electronic credit ledger, or partly from both.
However, where the demand is in respect of any amount
of tax to be paid by the recipient under Reverse Charge
Mechanism or by the Electronic Commerce Operator
under section 9(5), then the said amount shall be required
to be paid by debiting the electronic cash ledger only and
not through the electronic credit ledger. Further, where
the amount has to be paid for demand of erroneous
refund, the demand in respect of erroneous refund paid in
cash is required to be paid only by debiting the electronic
cash ledger only and not through the electronic credit
ledger.
14 Whether the benefit of waiver
under Section 128A be availed
qua import IGST payable under
the Customs Act, 1962?
No.
In such cases, demand is not issued under section 73 of
the CGST Act, but is issued under the provisions of
Customs Act, 1962 and therefore, such cases are not
covered under waiver of interest or penalty or both under
section 128A.
15 With retrospective insertion of
sub-sections (5) and (6) to
Section 16 of the CGST Act, the
tax demanded in notice/
statement/ order reduces.

Whether the entire tax amount
demanded in the notice/
statement/ order has to be paid in
such cases, to avail the benefit
under section 128A?
Sub-rule (5) of rule 164 mentions that the amount
payable in order to avail the benefit under section 128A,
shall be calculated after deducting the amount not
payable in accordance with sub-section (5) or sub-
section (6) of Section 16, from the amount payable in
terms of the notice or statement or order under section
73, as the case may be.
Therefore, the applicant is required to pay only the
amount that is payable, calculated after deducting the
amount not payable in accordance with sub-section (5) or
sub-section (6) of Section 16, from the amount payable in
terms of the notice or statement or order under section 73,
as the case may be, before submitting the application.
While calculating the amount deductible on account of not
being payable in accordance with sub-section (5) or sub-
section (6) of Section 16, from the amount payable in
terms of the notice or statement or order under section 73,


Page 46 of 83
as the case may be, taxpayer is required to ensure that
such amount is deducted only where ITC has been denied
solely on account of contravention of Section 16(4) of the
CGST Act and not on any other grounds.
He is also advised to provide a breakup of the amount not
payable by him anymore, as per sub-sections (5) and (6)
of section 16, in FORM GST SPL-01 or FORM GST
SPL-02, as the case may be, to enable the officer to verify
the payment easily.
It is also re-iterated that where the taxpayer is deducting
the amount of ITC which was denied on account of
contravention of sub-section (4) of section 16 of the
CGST Act, but which is now available, as per
retrospectively inserted provisions of sub-section (5) or
sub-section (6) of section 16 of the CGST Act, he is not
required to file application for rectification in respect of
the same as per special procedure notified under Section
148 vide notification No. xx/2024 dated ……………
16 In case of application in FORM
GST SPL-02, where the applicant
has paid full or partial amount of
tax through FORM GST DRC-03,
whether the said applicant is
mandatorily required to file
application in FORM GST DRC-
03A for such tax amount which
he desires to get adjusted against
tax demand as per FORM GST
DRC-07/ FORM GST DRC-08/
FORM GST APL-04?
Yes.
In cases where order in FORM GST DRC-07, FORM
GST DRC-08 or FORM GST APL-04, as the case may be,
has been issued and such taxpayer has paid required
amount through FORM GST DRC-03, such applicant is
required to adjust the said amount towards the demand
created in the Electronic Liability Register, as per the
second proviso to sub-rule (2) of rule 164, before filing
the application in FORM GST SPL-02.

5. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.

6. Difficulty, if any, in implementation of the above instructions may please be brought to the
notice of the Board. Hindi version would follow.

Sanjay Mangal
Principal Commissioner (GST)


Page 47 of 83
Annexure-D
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. xx/2024–Central Tax
New Delhi, the ___ September 2024

G.S.R.....(E). – In exercise of the powers conferred by sub-section (1) of section 128A of the
Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations
of the Council, hereby notifies the date upto which payment for the tax payable as per the notice or
statement or the order referred to in clause (a) or clause (b) or clause (c) of section 128A, as the case
may be, can be made by the class of registered person specified in column (2) of the Table below, as
the date specified in the corresponding entry in column (3) of the said Table, namely:

Table
Sl. No. Class of registered person Date upto which payment for the tax payable
as per the notice or statement or the order
referred to in clause (a), clause (b) or clause
(c) of section 128A, as the case may be, can
be made, for waiver of interest or penalty or
both under section 128A.
(1) (2) (3)
1 Registered persons to whom a notice or
statement or order has been issued
referred to in clause (a) or clause (b) or
clause (c) of section 128A, on or before
the date of issuance of this notification
31.03.2025
2 Registered persons to whom a notice has
been issued under sub-section (1) of
section 74 in respect of the period referred
to in section 128A, and an order is passed
or required to be passed by the proper
officer in pursuance of the direction of the
Appellate Authority or Appellate Tribunal
or a court in accordance with the
provisions of sub-section (2) of section
75, for determination of the tax payable
by such person, deeming as if the notice
were issued under sub-section (1) of
section 73.
Date ending on completion of six months
from the date of issuance of the order by the
proper officer redetermining tax under section
73.
[F.No.20/xx/xx/2024-GST]
(Raghavendra Pal Singh)
Director


Page 48 of 83
Agenda Item 4 (Part-II): Recommendations of the Fitment Committee for the consideration of
the GST Council

I. Additional Agenda of the Fitment Committee pertaining to goods:
1. Issuance of circular clarifying the scope of the phrase ' as is where is basis'
2. Report of Committee of Officers on Taxation of Extra-Neutral Alcohol under GST for the
past period ( from 1.7.2017 to20.10.2023)
II. Additional Agenda of the Fitment Committee pertaining to services:
1. Recommendations for making changes in GST rates or for issuing clarifications (2 issues)
2. Recommendations for deferring the issues for further examination (1 issue)

III. Agenda notes on status updates of the GoM meetings:
1. Status update on GoM on Rate Rationalisation
2. Status update on GoM on boosting real estate sector


Page 49 of 83
Agenda Item 4 (c) (Part-II): Recommendations made by the Fitment Committee for making
changes in GST rates or for issuing clarifications in relation to services
Annexure IV
Sl.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
1. Reduction of
GST paid by
individuals on
health
insurance
premiums from
18% to 5%.

Or

To exempt
GST on
medical
insurance
premiums.
• The Department of
Financial Services
(DFS), Ministry of
Finance,
Government of
India has requested
for reducing the
GST on individual
health insurance
premiums from
18% to 5% to make
health insurance
more affordable
and accessible.
• This reduction aims
to address the low
penetration of
health insurance in
India by lowering
the cost of
premiums,
encouraging more
people to purchase
health insurance
and opt for higher
coverage.
• The key benefits of
this reduction
include making
health insurance
premiums more
affordable,
enabling
individuals to
choose higher
coverage within the
 Presently, as per the residual entry at Sl. No. 15(vii) of
Notification No. 11/2017-Central Tax (Rate), health
insurance policies, other than those which have been
specifically exempted, attract 18% GST.
 The data for FY 2022-23 provided by DFS is as follows:
 Total health insurance premiums in India amounted
to approximately Rs. 90,032 crores.
 Out of the above, individual health insurance
segment contributed Rs. 35,300 crore (39.21% of the
total health premiums).
 GST amounting to Rs 6,354 crore was collected on
individual health insurance premiums at the current
rate of 18%.

• As per a NITI Aayog Report (Health Insurance for
India’s Missing Middle, October 2021), the Ayushman
Bharat - Pradhan Mantri Jan Arogya Yojana - a flagship
scheme towards Universal Health Coverage, and State
Government extension schemes - provide comprehensive
hospitalization cover to the bottom 50% of the
population. Further, around 20% of the population is
covered through social health insurance such as ESIS,
CGHS, and private voluntary health insurance (PVHI).
The NITI-Aayog Report identifies that nearly 40 crore
people (30%), largely belonging to low-middle-income
categories, remain without any health insurance coverage.
This group is known as the ‘missing middle’.
• Further, the report by Standing Committee on Finance
(Performance Review and Regulation of Insurance
Sector, February 2024) has recommended to rationalize
the GST rate on insurance products, especially health
and term insurance. The report has observed that the
high rate of GST results in a high premium burden
which acts as a deterrent to getting insurance policies.
 The Fitment Committee deliberated upon the issue and


Page 50 of 83
Sl.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
same budget, and
reducing the health
protection gap in
the country.
• The anticipated
increase in the
number of insured
individuals is
expected to offset
the initial reduction
in GST revenue.
• This move supports
the Government's
efforts to provide a
minimum social
coverage net for
every citizen and
aligns with the
vision of
"Insurance for All"
by 2047.

• 18% GST on
medical insurance
is proving to be a
deterrent to the
growth of the
segment which is
socially necessary.
following options were discussed:
a) Exempting all individual health insurance
premiums;
b) Exempting individual health insurance premiums
which are paid by senior citizens and individual
health insurance premiums (irrespective of age)
where the coverage is up to Rs. 5 lakhs;
c) Exempting only those individual health insurance
premiums which are paid by senior citizens;
d) Reducing the rate of GST on all individual health
insurance services to 5% without ITC;
 The revenue implications of the above options (FY
2022-23 data) are tabulated below:
Scenario Revenue Implication
(Rs. Crores)
Exempting all individual
health insurance
premiums
3,495
Exempting individual
health insurance
premiums which are paid
by senior citizens and
those individual health
insurance premiums with
cover up to Rs. 5 lakhs
(irrespective of age)
2,110
Exempting only those
individual health
insurance premiums
which are paid by senior
citizens
645
Reducing the rate of GST
on all individual health
insurance services to 5%
without ITC
1,730

• The Fitment Committee recommended that the GST
Council may decide from the above options and a
similar benefit may be extended to reinsurance
services also. The Committee further recommended


Page 51 of 83
Sl.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
that the GST Council may also record its desire that
the benefit given in GST rates, if any, must be passed
on to the policy holders.
2. Reduction of
GST on
premiums paid
by individuals
for the
term/pure
protection
insurance plans
from 18% to
5%.

Or

To exempt
GST on life
insurance
premiums.

• The Department of
Financial Services
(DFS), Ministry of
Finance,
Government of
India has requested
for reducing the
applicable rate of
GST on premiums
paid by individuals
on term/pure
protection
insurance plans
from 18% to 5%.
• Term insurance
plans are
considered a basic
financial necessity
as they offer higher
life insurance cover
at affordable
premiums.
• Life insurance
penetration in India
is only 3% and the
mortality protection
gap is at 91%.
• Life insurance is a
push product and
most of the policies
are sold with
savings element in
consideration.

• Term insurance
policies do not offer
any survival benefit
so the willingness
• Presently, life insurance policies attract GST rate of 18%
vide residual entry at Sl. No. 15(vii) of the Notification
No. 12/2017-Central Tax (Rate).
• Rule 32(4) of the GST Rules, 2017 prescribes valuation
in case of life insurance schemes. The premium paid in
life insurance policies represents two portions – risk
coverage and savings.

• GST is only on the risk portion of the premium and not
on savings portion.

• Consequently, pure term life policies, i.e. where the entire
premium paid by the policy holder is only towards the
risk cover, get taxed at the full value of the premium paid
at the rate of 18%.

 The data for FY 2022-23 provided is as follows:
 Total term life insurance premiums in India
amounted to approximately Rs. 23,943 crores.
 Out of the above, individual pure term life insurance
segment contributed Rs. 2,669 crore (11.15% of the
total term life premiums).
 GST amounting to Rs 480 crore was collected on
individual health insurance premiums at the current
rate of 18%, of which Rs. 202 crores has been paid in
cash.

• DFS has informed that most life insurance products sold
in India have a savings component rather than being pure
protection/term insurance. This is because life insurance
is often viewed more as a savings instrument rather than a
risk protection tool. Term insurance policies do not offer
any survival benefits, and the willingness to buy term
insurance is negligible as they are not actively pushed by
insurance providers.
• The report by Standing Committee on Finance
(Performance Review and Regulation of Insurance
Sector, February 2024) has recommended rationalizing
the GST rate on insurance products, especially health and


Page 52 of 83
Sl.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
to buy term
insurance is
negligible. The
GST of 18% makes
the product
completely lack-
lustre.

• The reduction in
GST rate would
make term
insurance policies
more affordable,
encourage more
citizens to opt for
term insurance,
enable insured to
opt for higher
coverage which
would result in
reducing the
protection gap. The
reduction in GST
rate would also
encourage public-
private partnerships
to devise more
affordable
insurance solutions.

• 18% GST on life
insurance amounts
to levying tax on
uncertainties of life
and may be
withdrawn.
term insurance. The report has observed that the high rate
of GST results in a high premium burden which acts as a
deterrent to getting insurance policies and recommended
to reduce GST rate on term insurance policies.
• After deliberations, Fitment Committee recommended
exempting pure term individual life insurance policies
along with reinsurance thereof. The revenue
implication of the same is likely to be Rs. 213 crores.
The Committee further recommended that the GST
Council may also record its desire that the benefit
given in GST rates, if any, must be passed on to the
policy holders.







Page 53 of 83
Agenda Item 4 (e) (Part-II): Recommendations made by the Fitment Committee for deferring
issues for further examination in relation to services
Annexure VI
Sl
.
N
o.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
1. (a) To amend
Schedule I of the
CGST Act to declare
that there is no
supply by Head
Office of foreign
shipping lines to its
Indian GST
registration or their
agents with
retrospective effect
from 01.07.2017.

(b) Since amendment
to the schedule I
would require
completion of
various legislative
processes, following
may be considered:

• Notification may
be issued
retrospectively
w.e.f 01.07.2017
to grant
exemption for all
alleged deemed
supplies from
Head office of
Foreign shipping
lines to its Indian
GST registrations
or agents in
India.
• For ease of
reporting in GST
returns the value
• Foreign shipping lines (FSLs)
operate a global shipping
business conducted across
international trade lanes.
• They do not have presence in any
country which may be covered
by the trade lanes.
• FSLs would merely appoint an
agent in each country for the
limited purpose of undertaking
necessary compliance in that
country.
• FSLs have formally obtained
registration under GST laws and
discharge GST in respect of all
contracts entered into by it with
Indian customers.
• The business of the foreign
shipping lines is conducted
through offices, vessels, assets,
networks and personnel-all based
outside India. The business of
foreign shipping lines is not
conducted through any branch,
agency, or representational office
in India.
• Explanation 1 and 2 of Section 8
of IGST Act, 2017 cannot apply
in their case. FSLs do not have
an establishment or a distinct
person in India.
• All the shipping contracts
including contracts with Indian
customers are entered into by the
foreign shipping lines which are
overseas entities. The expenses
incurred and the profits earned -
including under contracts with
• As per DGGI investigations, the
shipping lines are liable to pay GST
under RCM as recipient of services
from their head offices located outside
India.
• The same is on account of various costs
incurred by head office such as lease of
vessel, repairs and maintenance
undertaken outside India etc.
• As per entry 4 of Schedule I of CGST
Act, “import of service by a person
from a related person or from any of
his other establishments outside India,
in the course or furtherance of
business” is to be treated as a supply
even if made without consideration.
• Further, as per explanation to sub-
section 2 of section 8 of IGST Act,
where a person has an establishment in
India and any other establishment
outside India then such establishments
shall be treated as establishments of
distinct persons.
• Section 7(1)(c) of CGST Act, 2017
states that “the expression supply
includes the activities specified in
Schedule I, made or agreed to be made
without a consideration”.
• Section 2 (11) of IGST Act, 2017
defines ‘import of services’ as the
“supply of any service, where–– (i) the
supplier of service is located outside
India; (ii) the recipient of service is
located in India; and (iii) the place of
supply of service is in India.”
• Based on the above provisions, DGGI
is of the view that branch offices of
foreign shipping lines are liable to pay


Page 54 of 83
Sl
.
N
o.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
of alleged
deemed supplies
could also be
clarified as nil.
• The exemption
notification could
also be supported
by decision from
GST Council to
conclude all
investigations in
the matter.
• Once the
amendments in
the Schedule I of
the CGST Act are
completed,
exemption
notification may
be rescinded. The
process may be
completed within
next three
months.

Indian customer are likewise, of
the overseas entities;
• For a transaction to be taxed
under GST, the same needs to
qualify as supply of goods and
services. Further Indian
registration would either have to
qualify as a natural person or a
juridical person for the tax to be
levied. In the instant case, the
Indian registration neither
qualifies as a natural person or a
juridical person.
• It is a well settled in law that a
legal entity cannot contract with
itself. The FSL cannot therefore
contract with its registration.
There can be no transaction of
supply.
• Entry 2 and 4 of the Schedule I
cannot apply in this case.
• Head office of the foreign
shipping lines have obtained
Indian GST registration to
simplify the process of discharge
of tax and to avoid payment
under Reverse Charge
Mechanism by its customers.
• The remittances from Indian
customers under the said
contracts after payment of
expenses in India belong to
overseas client. Such remittances
cannot be equated as
consideration for presumed
supply.
• It has been requested that correct
position thus is to amend
Schedule I of the CGST Act to
declare that there is no supply by
Head Office of foreign shipping
lines to its Indian GST
registration or their agents with
tax under RCM as recipient of services
from their Head office located outside
India.
• Indian National Shipowners’
Association (INSA) has requested for
parity in the treatment in respect of
GST for Indian shipping industry
similar to exemptions proposed to be
granted to foreign shipping lines.
• Currently, transport of goods in vessel
is taxed at 5% GST provided that ITC
on the goods (other than on ships,
vessels) used in supplying the service
has not been taken.
• Fitment Committee deliberated on
the issue and recommended that the
issue may be deferred for more
comprehensive examination and
collection of data in view of the fact
that the issue is resolved for these
foreign shipping line after issuance
of Circular No. 210/4/2024-GST
dated 26.06.2024 which provides that
“where the foreign affiliate is
providing certain services to the
related domestic entity, and where
full input tax credit is available to
the said related domestic entity, the
value of such supply of services
declared in the invoice by the said
related domestic entity may be deemed
as open market value in terms of
second proviso to rule 28(1)of CGST
Rules. Further, in cases where full
input tax credit is available to the
recipient, if the invoice is not issued
by the related domestic entity with
respect to any service provided by the
foreign affiliate to it, the value of such
services may be deemed to be declared
as Nil, and may be deemed as open
market value in terms of second
proviso to rule 28(1)of CGST Rules”.


Page 55 of 83
Sl
.
N
o.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
retrospective effect from
01.07.2017.
• DGGI has initiated investigations
against the shipping lines on the
ground that they are liable to pay
GST under RCM as recipient of
services from their head offices
located outside India.



Page 56 of 83
Agenda Item 4 (g): Issuance of circular clarifying the scope of the phrase ' as is where is basis'


1. The GST Council has been recommending regularisation of the past period on ‘as is where is’
basis. This has been done mainly in situations, such as, where genuine doubts have arisen due to
ambiguity in the language of notification or there are two competing entries with different rates in the
notifications or issues have arisen due to diverse interpretation resulting in a situation where some
suppliers have paid a lower rate of GST (including nil rate on account of an exemption entry) and
some suppliers have paid a higher rate of GST.

2. The intention of the Council behind regularization of payments is that the payment of GST,
even if made at the lower rate of GST (or nil rate in case of exemption entry), shall be treated as tax
fully paid. Taxpayers who had paid at the higher GST rate shall not be eligible for any refund.

3. Instances have been brought to the notice of the Board pertaining to the prevailing doubts
among the field formations/trade as regards the scope of regularization of GST payments on “as is / as
is, where is”. To avoid disputes, the Fitment Committee has recommended to issue a Circular to
clarify the intent of the Council behind such regularization.


Page 57 of 83
Agenda Item 4 (h): Report of Committee of Officers on Taxation of Extra-Neutral Alcohol
under GST for the past period (from 1.7.2017 to 20.10.2023)


1. A Committee of Officers (CoO) was constituted as per directions of the GST Council in its
52nd Meeting held on 7.10.2023 with Joint Secretary (TRU) as Convenor and with States of Andhra
Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and West
Bengal as members to study the taxation of Extra-Neutral Alcohol (ENA) under GST for the past
period i.e from 1.7.2017 to 20.10.2023. This was against the backdrop of the recommendation of the
GST Council in its 52nd meeting to keep ENA for use in manufacture of alcoholic liquor for human
consumption outside the ambit of GST.

2. The requisite changes in GST law have been carried out in section 9 (1) of the CGST Act vide
section 114 of the Finance (No.2) Act 2024. The provision will come into effect from a date to be
notified based on the recommendation of the GST Council.

3. The Committee held three meetings on 3rd November, 2023, 11th January, 2024 and 21st
August, 2024.

4. There is no dispute regarding ENA for industrial purposes which always attracted 18%. Thus,
the examination by the Committee is confined to only taxation of ENA that is used for manufacture of
alcoholic liquor for human consumption.
5. The Committee examined the data collected from States/UTs and CGST formations including
protective demands raised under GST/VAT on ENA and GST/VAT revenue collected on ENA
/Rectified Spirit /Undenatured Ethyl Alcohol used for alcoholic liquor for human consumption. One
of the solutions discussed in the meetings was whether to regularise the past on “as is where is basis”.
The power of States to levy VAT on ENA under Entry 8 of List II is currently sub-judice before the
Hon’ble Supreme Court on an appeal filed by State of UP against Allahabad HC judgement in the
case of M/s Jain distillery holding that States does not have the power to levy VAT ENA that is used
for manufacture of alcoholic liquor for human consumption. State of UP informed the Committee that
the matter is likely to be decided soon. Members of the Committee raised the apprehension that in the
event the Hon’ble Apex Court upholds the HC decision then all States would have to refund the VAT
collected. Therefore, Committee of Officers has recommended take a view after the decision of the
Hon’ble Supreme Court.
6. The report of the Committee of Officers is proposed to be placed before the GST Council.




Page 58 of 83
Agenda Item 4 (i): Status update on Group of Ministers (GoM) on Rate Rationalisation
The GST Council, during its 45th Meeting held on 17th September, 2021, decided that a
Group of Ministers may be constituted to look into matters related to rate rationalization and
correction of inverted duty structure. Accordingly, the Group of Ministers on Rate Rationalization
(GoM) was constituted with Hon’ble Chief Minister, Karnataka as convenor. Vide order dated 24th
September 2021. Thereafter the GoM was reconstituted on four occasions vide orders dated 22 Nov,
2021, 22 Sep, 2022, 1 Nov, 2023 and 02 July 2024.
2. Currently, Hon’ble Deputy Chief Minister, Bihar is the Convener of the GoM and and
Hon’ble Ministers of the State Governments of Karnataka, Uttar Pradesh, Rajasthan, West Bengal and
Kerala as its members. Fitment Committee is to assist the GoM and JS(TRU-I) is to provide
secretarial assistance.
3. The terms of reference (ToR) of the GoM are as follows:
(i) review the supply of goods and services exempt under GST with an objective to expand the
tax base and eliminate breaking of ITC chain;
(ii) review the instances of inverted duty structure other than where Council has already taken a
decision to correct the inverted structure and recommend suitable rates to eliminate inverted duty
structure as far as possible so as to minimize instances of refund due to inverted duty structure;
(iii) review the current tax slab rates and recommend changes in the same as may be needed to
garner required resources; and
(iv) review the current rate slab structure of GST, including special rates, and recommend
rationalization measures, including merger of tax rate slabs, required for a simpler rate structure
in GST.
4. In 47th GST Council meeting held on 28th- 29th June, 2021, the GoM submitted it interim
Report containing recommendations on corrections in inverted duty structure and review of
exemptions on supply of goods and services in the GST rate structure. The GoM also requested 3
months’ time for the GoM to come up with final report. The interim report was accepted by the GST
Council and 3 months’ extension was also provided to submit a final report.
5. In the 53rd GST Council held on 22nd June, 2024, it was directed that a status update may be
placed before the GST Council on the work done by the GoM on Rate Rationalisation.
6. The 4th meeting of GoM was held on 22nd July 2024 in Delhi and the next meeting of the
GoM has been scheduled on 25th September 2024.
7. A status update on Group of Ministers (GoM) on Rate Rationalisation is proposed to be
presented before the GST Council.
*****


Page 59 of 83
STATUS UPDATE REPORT ON GoM on RATE RATIONALISATION
I. Context
1. A Group of Ministers (GoM) on Rate Rationalization was set up based on the
recommendations of the GST Council in its 45th Meeting held on 17th September, 2021.
2. The GoM was constituted with the Hon’ble Chief Minister of Karnataka, as the convenor, and
Hon’ble Ministers from State Governments of Bihar, Goa, Kerala, Rajasthan, Uttar Pradesh
and West Bengal as members. Subsequently, the GoM was reconstituted on 22 Nov, 2021, 22
Sep, 2022, 1 Nov, 2023 and 02 July 2024.
3. Currently, the GoM is reconstituted with Hon’ble Deputy Chief Minister, Bihar as Convener
and Hon’ble Ministers of the State Governments of Karnataka, Uttar Pradesh, Rajasthan, West
Bengal and Kerala as its members. Fitment Committee was directed to assist the GoM and
JS(TRU-I) shall provide the secretarial assistance.
4. The terms of reference of the GoM on Rate Rationalization are as under:
(i) review the supply of goods and services exempt under GST with an objective to
expand the tax base and eliminate breaking of ITC chain;
(ii) review the instances of inverted duty structure other than where Council has already
taken a decision to correct the inverted structure and recommend suitable rates to
eliminate inverted duty structure as far as possible so as to minimize instances of refund
due to inverted duty structure;
(iii) review the current tax slab rates and recommend changes in the same as may be
needed to garner required resources; and
(iv) review the current rate slab structure of GST, including special rates, and
recommend rationalization measures, including merger of tax rate slabs, required for a
simpler rate structure in GST.
5. In addition, in subsequent meetings following issues were also referred to GoM in order to
carry out a holistic and comprehensive examination of the issues.
i. Correction of Inverted Duty structure in Textile Sector
ii. Rationalisation of rates of inputs in Fertiliser sector
iii. Reduction of GST rate on silk and silk weaving material
iv. Reduction of GST rate on handloom weavers
v. GST on Flying Training Organisations (FTO) approved by DGCA

6. In 47th GST Council meeting held on 28th-29th June, 2021, the GoM submitted
recommendations on corrections in inverted duty structure and review of exemptions on
supply of goods and services in the GST rate structure, in its interim report. Furthermore,
GoM requested 3 months’ time for the GoM to come up with final report. The interim report
was accepted by the GST Council and 3 months’ extension was also provided to submit a
final report.
7. GoM discussed the issues and decided to hold the next meeting of GoM on 25th September
2024. The recommendations of the GoM on the Terms of Reference and the issues will be
incorporated in the Final Report and placed before the GST Council in due course.


Page 60 of 83
Agenda Item 4 (j): Status update on Group of Ministers (GoM) on boosting real estate sector
under GST regime

The GST Council in its 32nd meeting held on 10th January 2019 recommended to constitute a
Group of Ministers for boosting Real Estate sector under GST regime. Seven-member Group of
Ministers for boosting Real Estate sector was constituted with Shri Nitin Patel, Hon’ble Dy. Chief
Minister of Gujarat, as the Convenor of the GoM. After its constitution, the GoM convened two
meetings on 8th February, 2019 and 21st November, 2019. Third meeting of GoM has been held on
22.08.2024.

2. Currently, Dr. Pramod Sawant, Hon’ble Chief Minister, Goa is the Convenor of the GoM and
Hon’ble Ministers of the States of Bihar, Uttar Pradesh, Kerala, Maharashtra, Punjab and Gujarat are
its members.
3. The Terms of Reference (ToR) of the GoM are as below:
i. Analyse tax rate of GST, including inter alia issues/challenges in view of proposal for
boosting real estate sector under GST regime by providing a composition scheme for
residential construction units referred to GoM in its 32nd GST meeting of GST Council
held on 10th January, 2019;
ii. Examine and suggest ways for composition scheme or any other scheme, for boosting
real estate sector and suggest scheme for transition vis-à-vis introduction of suggested
scheme;
iii. Examine various aspect of levy of GST on Transfer of Developmental Rights (TDR)
and Developmental Rights in a Joint Development Agreement and suitable model;
iv. Examine legality of inclusion/exclusion of land or any other ingredient, in composition
and suggest valuation mechanism;
v. Examine and suggest any other aspect relevant to boost Real Estate Sector, which may
be brought to the notice of GoM.
4. The third meeting of the GoM held on 22.08.2024 under the chairmanship of Dr. Pramod P.
Sawant, Hon’ble Chief Minister of Goa and convener of the GoM at North Block, New Delhi was
attended in person by Sh. Samrat Choudhary, Hon’ble Deputy Chief Minister of Bihar; Sh. Suresh
Kumar Khanna, Hon’ble Minister for Finance, Uttar Pradesh; Sh. K.N. Balagopal, Hon’ble Minister
for Finance, Kerala and Smt. Aditi Tatkare, Hon’ble Minister for Women & Child Development,
Maharashtra. Shri Harpal Singh Cheema, Hon’ble Minister for Finance, Punjab attended the meeting
through Video Conferencing. The state of Gujarat was represented by the
Commissioner, State Tax, Gujarat.

5. The issues under consideration of the GoM and various decisions taken on them are as below:
i. To exempt GST on long term lease of land (thirty years, or more) of industrial plots or
plots for development of infrastructure for financial business, provided by a private
person or entity, or an entity having less than 20% ownership of the Government (Request
from the state of Punjab).
ii. To exempt GST on the services provided by Central Government or State Government or
Governmental Authority by way of granting of long-term lease (exceeding 30 years)


Page 61 of 83
(Request from state of Punjab).
iii. To exempt GST payable on the premium amount for long-term leases of 30 years and
above executed by Government owned Institutions/ Industrial Development Corporations/
Undertakings for industry, financial or other businesses (Request from state of Madhya
Pradesh).
iv. To exempt GST on supply of construction services provided by the Co-operative Housing
Society to its members at cost-to-cost basis on any plot which has been allotted by any state
government or the central government or any union territory or any other governmental
authority or governmental entity to such co-operative housing societies may be exempted.
(Request from the state of West Bengal).
v. To exempt GST on the redevelopment of buildings in own cooperative housing society on
ownership basis in Abhyuday Nagar, Mumbai (Request from the state of Maharashtra).
vi. To provide preferential tax treatment to free houses provided to slum dwellers in a slum
rehabilitation/ redevelopment project and mechanism of taxing TDR handed over to
builder by Government thereof (Request from the state of Maharashtra).
vii. To review the value limit of Rs. 45 lakhs in the definition of affordable residential apartment
for a metropolitan region, if necessary (Request from the state of Maharashtra).

6. Discussion on agenda item No. i & ii:
• To exempt GST on long term lease of land (thirty years, or more) of industrial plots or
plots for development of infrastructure for financial business, provided by a private
person or entity, or an entity having less than 20% ownership of the Government.
• To exempt GST on the services provided by Central Government or State Government or
Governmental Authority by way of granting of long-term lease (exceeding 30 years).

6.1 The above requests were sponsored by the state of Punjab. However, Hon’ble Finance
Minister from Punjab requested to defer the discussion on both these issues on grounds that the issues
need to be studied in detail and data needs to be collated before taking any decision in this regard.

6.2 Hon’ble Convenor recommended to form a committee of the Commissioners of Commercial
State Taxes to obtain the data on the issue in a month’s time and examine the same before presenting
to the GoM. The GoM recommended to defer the decision on the matter till the next meeting.

7. Discussion on agenda item No. iii
• To exempt GST payable on the premium amount for long-term leases of 30 years and
above executed by Government owned Institutions/ Industrial Development Corporations/
Undertakings for industry, financial or other businesses.
7.1 The states were of the view that for inclusion of ‘other businesses’ in the existing exemption
entry will widen the scope of exemption to unintended businesses also. Hence, there should be clarity
on what activity/business are to be included to avoid any misuse of this exemption. This proposal was
received from the state of Madhya Pradesh as they would like to provide the exemption if the long-


Page 62 of 83
term lease is meant for tourism sector. It is observed that in certain states such long term lease is
covered by the existing exemption as they have granted the status of industry to tourism sector.
Accordingly, it was suggested to seek reports from states who have given the status of industry to
other sectors (including tourism sector) along with revenue implications to such sectors with a view to
examine the issue comprehensively before taking any decision.
7.2 Hon’ble Convenor accordingly recommended to defer the matter till next meeting. Hon’ble
Convenor also recommended that the proposed committee of the Commissioners of Commercial State
Taxes shall obtain the data on the issue in a month’s time and examine the same before presenting to
the GoM.
8. Discussion on agenda item No. iv
• To exempt GST on supply of construction services provided by the Co-operative Housing
Society to its members at cost-to-cost basis on any plot which has been allotted by any state
government or the central government or any union territory or any other governmental
authority or governmental entity to such co-operative housing societies.
8.1 The GoM recommended that members from Maharashtra, Goa and UP to collect details of the
issues/ various practices being followed in the states. The Hon’ble Convenor stated that proposed
committee of officers to obtain such details of practices being followed in their respective states in
respect of construction and supply of flats by the CHS to its members along with the suggestions on
the issue on the given agenda in next 30 days. The Commissioner of State Tax, Goa is required to
submit a note regarding the practice followed in the state of Goa about the old CHS. It has also been
recommended that above Committee of Commissioners constituted will examine all the practices
received.
9. Discussion on agenda item no. v & vi
• To exempt GST on the redevelopment of buildings in own cooperative housing society on
ownership basis in Abhyuday Nagar, Mumbai.
• To provide preferential tax treatment to free houses provided to slum dwellers in a slum
rehabilitation/ redevelopment project and mechanism of taxing TDR handed over to
builder by Government thereof
9.1 With respect to issue of redevelopment of buildings in own co-operative society, Hon’ble
Convenor requested Maharashtra that a fresh request may be sent again for examination as the issue
and request of the state of Maharashtra is not clear. The state of Maharashtra was requested to submit
a detailed proposal on both the issues.
10. Discussion on agenda item no. vii
• To review the value limit of Rs. 45 lakhs in the definition of affordable residential apartment
for a metropolitan region, if necessary.
10.1 Hon’ble Minister from the state of Maharashtra informed that value fixed for affordable
residential apartments needs to be revised as the prevailing rates in one state may substantially vary
from other states. The Commissioner of Commercial Taxes, Maharashtra stated that the ceiling limit
of 45 lakhs for affordable housing for metro cities like Mumbai will only cover less than 15% of
overall flats constructed.


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10.2 Hon’ble Convenor stated that the value of residential apartments significantly vary in different
states and for the states of state of Maharashtra was requested to do detailed study and propose
different ceiling limits for examination in the GoM with appropriate justification. Further, the
convenor stated that the formulation should encourage the industry with no adverse revenue
implication.

**************



Page 64 of 83
Agenda Item 8 (d): GST Appellate Tribunal - Issues for approval
The present Agenda Note is to seek approval of the GST Council on 3 different issues related
to the GST Appellate Tribunal (GSTAT in short), as detailed below:
2. Notification of amendments in sections 109 and 171 of the CGST Act, as amended vide
Finance (No. 2) Act, 2024
2.1. The Finance (No. 2) Act, 2024 was notified on 16.08.2024. Vide the said Act, various
amendments have been carried out to the CGST Act, 2017, including amendments to sections 171 and
109 of the CGST Act [extract of relevant sections placed as Annexure-I]. The said amendments inter
alia deal with empowering the Principal Bench of GSTAT to undertake examination of the Anti-
Profiteering measures under GST. Also, amendment further provides for introducing a sunset clause
for Anti-Profiteering measures.
2.2. Therefore, it is proposed that amendments to the Finance Act 2024 in sections 109 and 171 of
the CGST Act may be notified with effect from 15.09.2024. In this regard, a notification is required to
be issued [Draft Notification placed as Annexure-II]. Accordingly, approval of the GST Council is
sought to notify provisions of sections 109 and 171 of the CGST Act with effect from 15.09.2024.
3. Notification regarding jurisdiction of the various benches of the GSTAT
3.1. As per the provisions of sub-section 4 of section 109 of CGST Act, 2017,
“…on the request of the State, the Government may, by notification, constitute such number
of State Benches at such places and with such jurisdiction as may be recommended by the
Council.”
3.2. Accordingly, it may be seen that the jurisdiction of the State Benches (and the additional
Sittings associated with the State Benches) is required to be notified as per the said provisions.
3.3. In this regard, the States were requested in the last Council meeting to intimate the locations of
the Benches / Additional Sittings district-wise. The jurisdiction has been received from majority of the
States (except Gujarat and Haryana). Based on the details received from the States, a draft notification
has been prepared.
3.4. Approval of the GST Council is sought for notifying the jurisdictions of the State Benches
as per draft notification placed at Annexure III.
4. Representations received from Kerala, Uttar Pradesh and Punjab in respect of location of the
State Bench of GSTAT
4.1. Post approval of the GST Council in its 53rd meeting held on 22.06.2024, requests were
received from the States of Kerala, Punjab and Uttar Pradesh for changing the locations of the Bench /
Additional Sittings. The request of Kerala has already been incorporated in notification No. S.O.
3048(E) dated 31.07.2024 notifying, under section 109 (4), the location of the State Benches of
GSTAT and the sitting/circuit associated with the said Bench. The said request is hereby placed
before the GST Council for post-facto approval and records.


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4.2. The proposal of Government of Uttar Pradesh is for notifying Prayagraj as location of the
Bench and Varanasi as the additional sitting of Prayagraj because the Principal Bench of High Court
of Uttar Pradesh is also situated in Prayagraj.
4.3 The State of Punjab has requested that that the location of Bench be changed from Jalandhar to
Chandigarh and notify Jalandhar as the additional sitting of Chandigarh.
4.4 It is proposed to accept the above requests of Uttar Pradesh and Punjab and amend the
notification No. S.O. 3048(E) dated 31.07.2024 as per draft notification placed at Annexure III.
5. To summarise, the following proposals are placed before the GST Council for its approval:
i. Notifying the provisions of sections 109 and 171 of the CGST Act, 2017 with effect from 15th
September 2024 [as detailed in para 2.2 above];
ii. Notifying the jurisdiction of the State Benches and Additional Sittings of GSTAT [as detailed
in para 3.4 above];
iii. Proposal of Kerala for changing location of Sitting for post-facto approvals [as detailed in
para 4.1 above]; and
iv. Proposals of Governments of Uttar Pradesh and Punjab to change in the location of the bench
and additional sitting [as detailed in para 4.2 to 4.4 above].
*****


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ANNEXURE-I
Amended Section 109 of the Central Goods and Services Tax Act (amendments made by
Finance Act 2024 in red):
109. Constitution of Appellate Tribunal and Benches thereof.
(1) The Government shall, on the recommendations of the Council, by notification, establish with
effect from such date as may be specified therein, an Appellate Tribunal known as the Goods and
Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate
Authority or the Revisional Authority, or for conducting an examination or adjudicating the cases
referred to in sub-section (2) of section 171, if so notified under the said section.
….
(5) The Principal Bench and the State Bench shall hear appeals against the orders passed by the
Appellate Authority or the Revisional Authority:
Provided that the cases in which any one of the issues involved relates to the place of supply, shall be
heard only by the Principal Bench:
Provided further that the matters referred to in sub-section (2) of section 171 shall be examined or
adjudicated only by the Principal Bench:
Provided also that the Government may, on the recommendations of the Council, notify other cases or
class of cases which shall be heard only by the Principal Bench.
(6) Subject to the provisions of sub-section (5), the President shall, from time to time, by a general or
special order, distribute the business of the Appellate Tribunal among the Benches and may transfer
cases from one Bench to another.


Amended Section 171 of the Central Goods and Services Tax Act (amendments made by
Finance Act 2024 in red)
171. Antiprofiteering measure. —
(1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit
shall be passed on to the recipient by way of commensurate reduction in prices.
(2) The Central Government may, on recommendations of the Council, by notification, constitute an
Authority, or empower an existing Authority constituted under any law for the time being in force, to
examine whether input tax credits availed by any registered person or the reduction in the tax rate
have actually resulted in a commensurate reduction in the price of the goods or services or both
supplied by him.
Provided that the Government may by notification, on the recommendations of the Council, specify
the date from which the said Authority shall not accept any request for examination as to whether
input tax credits availed by any registered person or the reduction in the tax rate have actually resulted
in a commensurate reduction in the price of the goods or services or both supplied by him.


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Explanation.–– For the purposes of this sub-section, “request for examination” shall mean the written
application filed by an applicant requesting for examination as to whether input tax credits availed by
any registered person or the reduction in the tax rate have actually resulted in a commensurate
reduction in the price of the goods or services or both supplied by him.’;
(3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such
functions as may be prescribed.
(3A) Where the Authority referred to in sub-section (2), after holding examination as required under
the said sub-section comes to the conclusion that any registered person has profiteered under sub-
section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so
profiteered: Provided that no penalty shall be leviable if the profiteered amount is deposited within
thirty days of the date of passing of the order by the Authority.
Explanation (1).— For the purposes of this section, the expression “profiteered” shall mean the
amount determined on account of not passing the benefit of reduction in rate of tax on supply of
goods or services or both or the benefit of input tax credit to the recipient by way of commensurate
reduction in the price of the goods or services or both.
Explanation 2.––For the purposes of this section, the expression “Authority” shall include the
“Appellate Tribunal”


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ANNEXURE-II
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION(ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)
NOTIFICATION No. xx/2024–Central Tax
New Delhi, dated the September, 2024

S.O. .....(E).—In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the
Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby appoints the 15th day of
September, 2024, as the date on which the provisions of sections 142 and 148 of the said Act shall
come into force.
[F.No. XXX]
( )
Jt Secretary



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Annexure-III
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (ii)]
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, dated September, 2024

S.O. (E). — In exercise of the powers conferred by the sub-sections (1), (3) and (4) of section
109 of the Central Goods and Services Tax Act, 2017 (12 of 2017), in the notification No.
S.O.3048(E), of Department of Revenue, Ministry of Finance, published in the Gazette of India,
Extraordinary, Part II, Section 3, sub-section (ii), the Central Government, on the recommendation of
the Goods and Services Tax Council, hereby makes the following amendments, namely:-

(i) in clause (iii), in the Table given in the said notification,
a. against serial number 25 of column (1), in column (4), the word “Varanasi” shall be replaced
by “Prayaragraj” and in column (5), the word “Prayaragraj” shall be replaced by “Varanasi”;
b. against serial number 19 of column (1), in column (4), the word “Jalandhar” shall be replaced
by “Chandigarh” and in column (5), the word “Jalandhar” shall be replaced by “Chandigarh”;
(ii) after clause (iii) in the said notification, clause (iv) shall be inserted as follows, namely:—

“(iv) notifies the jurisdiction of the State Benches of the Goods and Services Tax Appellate Tribunal
in column (4) of the table below for the locations of the benches specified in corresponding entry in
column (3), and in column (6) for the Sitting / Circuit specified in corresponding entry in column (5)
thereof, with effect from the date of publication of this notification in the Gazette of India
(Extraordinary), namely:—

Sl.
No.
State Name Location Jurisdiction (Districts) Sitting / Circuit Jurisdiction
(District)
(1) (2) (3) (4) (5) (6)
1 Andhra
Pradesh
Vijayawada Krishna,
NTR,
Guntur,
Palnadu
Bapatla
Prakasam,
Sri Potti Sriramulu
Nellore,
Kurnool,
Nandyal,
Ananthapuramu,
Sri Sathya Sai,
YSR Kadapa,
Vishakhapatnam Srikakulam,
Vizianagaram,
Manyam,
Alluri Sitharama
Raju,
Visakhapatnam
Anakapalli
Kakinada,
Dr. B. R. Ambedkar
Konaseema
East Godavari
West Godavari
Eluru


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Annamayya,
Tirupati and
Chittoor
2 Bihar Patna All districts in the State
of Bihar

3 Chhattisgarh Raipur All districts in the State
of Chhattisgarh

4 Delhi Delhi All districts in the
Union Territory of NCT
of Delhi

5 Gujarat
Dadra and
Nagar Haveli
and Daman
and Diu
Ahmedabad
6 Surat Rajkot
7 Haryana Gurugram Hissar
8 Himachal
Pradesh
Shimla All districts in the State
of Himachal Pradesh
9 Jammu and
Kashmir
Ladakh
Jammu Jammu
Samba
Kathua
Rajouri
Poonch
Reasi
Udhampur Ramban
Doda
Kishtwar
Srinagar Anantnag
Kulgam
Pulwama
Shopian
Srinagar
Budgam
Ganderbal
Baramulla
Bandipora
Kupwara
Leh
Kargil
10
11 Jharkhand Ranchi All districts in the State
of Jharkhand

12 Karnataka Bengaluru All districts in the State
of Karnataka

13 Kerala
Lakshadweep
Ernakulum Ernakulam (Including
Aluva)
Idukki
Thrissur
Palakkad
Malappuram
Kozhikode
Wayanad
Kannur
Kasaragod
UT of Lakshadweep
Thiruvananthapuram Thiruvananthapuram
Kollam
Alappuzha
Pathanamthitta
Kottayam
14
15 Madhya Bhopal All districts in the State


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Pradesh of Madhya Pradesh
16 Goa
Maharashtra
Mumbai Mumbai,
Mumbai-suburban
Panaji (Circuit) All districts in the
State of Goa
17 Pune Pune
Kolhapur Satara
Sangli Ratnagiri
Sindhudurg
Solapur
Dharashiv
Thane Thane
Palghar
Raigad
Nagpur Nagpur
Chandrapur
Bhandara
Gondia
Gadchiroli
Wardha
Amravati
Yavatmal
Akola
Washim
Buldhana
Chhatrapati
Sambhajinagar
Chhatrapati-
Sambhajinagar
Beed
Jalna
Nashik
Ahmednagar
Nanded
Latur
Parbhani
Hingoli
Jalgaon
Dhule
Nandurbar
18 Odisha Cuttack All districts in the State
of Odisha

19 Punjab
Chandigarh
Chandigarh Mohali
Ropar
Fatehgarh Sahib
Patiala
Sangrur
Barnala
Bathinda
Fazilka
Sri Muktsar Sahib
Malerkotla
Mansa
Jalandhar Jalandhar
Hoshiarpur
Nawan Shahar
Kapurthala
Amritsar
Tarn Taran
Gurdaspur
Pathankot
Ludhiana
Moga
Ferozepur
Faridkot
20
21 Rajasthan Jaipur Alwar
Bhilwara
Tonk
Baran
Bundi
Jhalawar
Kota
Bharatpur
Dholpur
Karuali
Sawai Madhopur


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Jaipur
Alwar
Jhunjhunu
Sikar
Dausa
Beawar
Kekri
Shahpura
Khairthal-Tijara
Gangapur City
Deeg
Jaipur(Rural)
Kotputli-Behrod
Neem Ka Thana
Dudu
Jodhpur Bikaner
Churu
Hanumangarh
Shri Ganganagar
Banswara
Chittorgarh
Dungarpur
Udaipur
Rajsamand
Pratapgarh
Barmer
Jaisalmer
Jalore
Jodhpur
Pali
Sirohi
Nagaur
Anoopgarh
Salumber
Jodhpur(Rural)
Falodi
Balotra
Sanchor
Deedwana-Kuchaman
- -
22 Tamil Nadu Chennai Chennai (North),
Chennai (Central),
Chennai (South),
Tiruvallur,
Chengalpattu,
Cuddalore,
Kancheepuram,
Vellore
Puducherry (Circuit) All districts in the
Union Territory of
Puducherry


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23 Puducherry Madurai Thiruvarur,
Trichy,
Madurai,
Virudhunagar,
Tirunelvi
Coimbatore Coimbatore,
Tiruppur, Erode,
Salem,
Hosur
24 Telangana Hyderabad All districts in the State
of Telangana
- -
25 Uttar Pradesh Lucknow Lucknow
Hardoi
Raebareli
Sitapur
Lakhimpur
Unnao
Kanpur Nagar
Kanpur Dehat
Bareilly
Badaun
Shahjahanpur
Pilibhit

Prayagraj Prayagraj
Pratapgarh
Fatehpur
Kaushambi
Ayodhya
Barabanki
Gonda
Bahraich
Balarampur
Amethi
Sultanpur
Shravasti
Varanasi
Varanasi
Ghazipur
Chandauli
Jaunpur
Azamgarh
Ballia
Mau
Mirzapur
Sonbhadra
Bhadohi
Gorakhpur
Basti
Siddharth Nagar
Sant Kabir Nagar
Deoria
Maharajganj
Kushinagar
Ghaziabad Ghaziabad
Hapur
Bulandshahar
Gautam Buddha-
Nagar
Meerut
Baghpat
Saharanpur
Shamli
Muzaffarnagar
Moradabad
Agra Agra
Farrukhabad
(Fatehgarh)
Auraiya
Kannauj
Mainpuri
Firozabad
Aligarh
Etah
Kasganj
Mathura


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Amroha
Sambhal
Rampur
Bijnor
Hathras
Jhansi
Lalitpur
Jalaun
Banda
Chitrakoot
Hamirpur
Mahoba
26 Uttarakhand Dehradun All districts in the State
of Uttarakhand
- -
27 Andaman and
Nicobar
Islands
Sikkim
West Bengal
Kolkata All districts in the State
of Sikkim and West
Bengal and the Union
Territory of Andaman
and Nicobar Islands
- -
28
29
30 Arunachal
Pradesh
Guwahati All districts in the state
of Arunachal Pradesh,
Assam, Manipur and
Meghalaya
Aizawal (Circuit) All districts in the
state of Mizoram
31 Assam
32 Manipur
33 Meghalaya
34 Mizoram
35 Nagaland Kohima (Circuit) All districts in the
state of Nagaland
36 Tripura Agartala (Circuit) All districts in the
state of Tripura
[F. No. A-50050/99/2024-GSTAT-DOR]
Balasubramanian Krishnamurthy, Jt. Secy.


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Agenda Item 8 (e): Sharing of personally Identifiable Information of Taxpayers with other
Ministries/Departments.
This Agenda note is regarding the GST data sharing with Ministries and Departments. In this
regard, it may be noted that the GST Council in its 48th meeting had approved an Agenda regarding
the format and procedure to be followed while sharing of data when requested by various other
Government Departments / Ministries / Agencies at the Central / State level.
2. The GST data sharing with Ministries and Departments request for data can be broadly
classified into the following categories:
(i) Category A: Validating GSTIN using GSTN validation API with the following data field;
(ii) Category B: Aggregated GST data which does not involve disclosure of any personally
identifiable information of a taxpayer etc.;
(iii) Category C: Dis-aggregated data which does not disclose the identity of the taxpayer; and
(iv) Category D: Any data sharing request that does not fall under the above category, including
data of individual taxpayers.
3. GST Council in its 48th meeting had approved the agenda along with the procedure to process
the request and the defined format for GST data sharing. As per the procedure, it was decided that the
requests would be placed before the GST Implementation Committee (GIC) for a decision on sharing
of the data.
4. As per the above residual category (D), any data sharing request that does not fall under the
above category should only be done with specific approval of the GST Council/GST Implementation
Committee on a case-to-case basis. Thus, any such cases falling in the residual category would also
include personally identifiable data, but it would require to be approved by Council or GIC on a case-
to-case basis. The merits of each case should fall within the requirements of section 158 (3).
5. Section 158 (3) of the CGST Act lists down the instances where GST data can be shared.
Clauses (h), (k) and (l) of sub-section 3 of section 158 specifies that there is no bar on disclosure of
"(h) any particulars when such disclosure is occasioned by the lawful exercise by a public servant
or any other statutory authority, of his or its powers under any law for the time being in force;
or
…
(k) any particulars to an officer of the Government as may be necessary for the purposes of any
other law for the time being in force; or
(l) any information relating to any class of taxable persons or class of transactions for publication,
if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such
information."
6. In this regard, certain proposals were received from Departments/Ministries where sharing of
personally identifiable individual tax-payer data has been requested. There was no consensus in GIC
for some of these proposals. The following proposals are placed before GST Council for approval.


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6.1 Request from M/o Labour and Employment:
(a) M/o Labour and Employment has requested GST data related to e-commerce sector for FY
2022-23 and 2023-24. Requested data includes supplier's name, GSTIN, annual turnover,
HSN Code.
(b) The said data is required for identification of digital platforms / aggregators, to assess the
implementation of schemes for social security coverage of platform workers out of
contribution received from digital platforms / aggregators (such as Ola, Uber, Zomato
etc.).
6.2 Request from Directorate General of Commercial Intelligence & Statistics, M/o
Commerce & Industry:
(a) The request is for Sharing of GSTN data for units engaged in export of services to develop
a comprehensive Business Directory of Service Exporting Units of India.
(b) The data requested inter alia includes Mobile number and Email address of suppliers.
(c) The data is required for better compilation of services export values.
6.3 Request from Gujarat Infrastructure Development Board (GIDB)
(a) The request is for providing GST and e-way bill data to Gujarat Infrastructure
Development Board (GIDB) for the "Preparation of Integrated Logistics Master Plan for
the State of Gujarat".
(b) In this case, data of "From Address" and "To Address" has been requested.
(c) The said data has been requested to plot the movement of goods by quantum and
commodity type along with the connectivity network through rail, road, pipeline, Inland
waterway and Coastal shipping to identify the infrastructure bottlenecks. Further, it has
been informed that Gujarat is implementing Gujarat Logistics Resource Centre to regularly
monitor the logistics cost along the key routes and commodities.
6.4 Request from National Industrial Corridor Development Corporation Limited
(NICDC), New Delhi:
(a) The request is to provide Bulk Data of E-way Bill numbers along with vehicle number of
carriage.
(b) The data is required for analysing commodity-wise origin and consumption points
mapping and preferred mode of transportation, to identify bottlenecks in the logistics
sector.
7. It may be seen that the requests are being received from various Ministries / Departments /
Agencies for study / developing new services and / or improving public services. Request from M/o
Labour and Employment is for the purposes implementation of its obligations under the Labour Laws
and hence covered by the exception in clause (k) of section 158(3). Other requests are covered by the
public interest exception provided in clauses (h) and (l) of section 158(3).


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8. Based on the above, it is felt that there is no bar in the GST law on sharing of personally
identifiable data also (as there is no bar in publishing of the same); however, the same may only be
done in public interest or if it is required for the purposes of any other law. The above proposals
would fall within these exceptions. Accordingly, the proposals as listed in para 6 above may be
approved, by the Council
9. It is further proposed that the sharing of data should be subject to following general
conditions:
(i) The user agency should ensure safety and security of the data received from GST system and
put in place proper IT and administrative mechanisms to ensure safety of data shared.
(ii) The user agency should use the data only for the purpose it was shared and not disseminate
the data further to other agencies.
(iii) The user agency should not use the raw data for commercial benefits since this data has been
acquired from the compliances furnished by taxpayers. Agencies can, however, charge for
value added services made available based on the data shared.
(iv) For data shared on recurring basis, right to access may be revoked at any time if it is found
that it is not in public interest or it does not meet the requirements of section 158.
10. Accordingly, the agenda is placed before Council for approval of the specific proposals
listed in para 6 above subject to the conditions listed in para 9 above.
*****



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Agenda Item 9: Ad-hoc Exemptions Order(s) issued under Section 25(2) of Customs Act, 1962 to be placed
before the GST Council for information
In the 26th GST Council meeting held on 10th March, 2018, it was decided that all ad hoc
exemption orders issued with the approval of Hon’ble Finance Minister as per the guidelines
contained in Circular No. 09/2014-Customs dated 19th August, 2014, as was the case prior to the
implementation of GST, shall be placed before the GST Council for information.
2. The details of the ad hoc exemption orders issued recently are as follows:
Order No. Date Remarks
AEO No. 4 of 2024 27.06.2024
Ad-hoc exemption under section 25(2) of the Customs Act
1962 from payment of Customs Duty on import of reading
eye glasses by M/s Supreme Task India donated by
Restoring Vision, USA
AEO No. 5 of 2024 23.07.2024
Ad-hoc exemption under section 25(2) of the Customs Act
1962 from payment of Customs Duty on re-importation of
one unit of Liebherr Heavy Lift Crawler Crane (Model:
LR 1350/1, Sl. No. 074113) by Bharat Heavy Electricals
Limited (BHEL)

3. This is placed for the information of GST Council.


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