43rd GST Council Meeting

Confidential





Agenda for 43rd Meeting
of
the GST Council

28 May 2021


Volume – 1


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GST Council Secretariat
New Delhi


Dated: 16th May 2021
Notice for the 43rd Meeting of the GST Council Scheduled on 28th May 2021
The undersigned is directed to refer to the subject cited above and convey that the 43rd Meeting
of the GST Council would convene on 28th May 2021 (Friday) through Video Conference. The
schedule of the meeting is as follows:
28th May 2021 (Friday) : 1100 Hours onwards

2. Please convey the invitation to the Hon’ble Members of the GST Council to attend the Meeting.
(-Sd-)
(Tarun Bajaj)
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 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 (with legislature) 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/UT 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. Chairman, GST Network

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TABLE OF CONTENTS
Agenda
No.
Agenda Item Page No.
1 Confirmation of the Minutes of the 42nd GST Council Meeting held on 05th & 12th
October, 2020
7-89
2
Agenda Item 2 – Deemed Ratification of Notifications and Circulars by the GST
Council

90-95

3 Agenda Item 3: Decisions of the GST Implementation Committee (GIC) for
information of the GST Council.
96-146
4 Agenda Item 4: Status report of creation of GRC Zone–wise (CBIC) and
States/UTs as on 15.05.2021
147-149
5 Agenda Item 5 – Performance Report of the NAA (National Anti-profiteering
Authority) for the 2nd quarter (July,2020 to September,2020), 3rd quarter (October
2020 to December 2020) and 4th quarter (January 2021 to March 2021) for the
information of the Council
150-159

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Discussion on Agenda Items
Agenda Item 1 – Confirmation of the Minutes of the 42nd GST Council Meeting held on 05th & 12th
October, 2020
The draft minutes of the 42nd meeting of the GST Council (hereinafter referred to as ‘the Council’)
held on 05th & 12th October, 2020 was circulated to the Member States after the approval of Chairperson of
the GST Council. The changes suggested by Odisha, Rajasthan and Telangana have been incorporated and
the draft minutes are as follows.
The draft minutes of the 42nd meeting of the GST Council held on 05th & 12th October, 2020 through
video conference under the Chairpersonship of the Hon’ble Union Finance Minister, Smt. Nirmala
Sitharaman (hereinafter referred to as the Chairperson). A list of the Hon’ble Members of the Council who
attended the meeting is given at Annexure-1&2. A list of officers of the Centre, the States, the GST Council
and the Goods and Services Tax Network (GSTN) who attended the meeting is given at Annexure-3&4.
2. The following agenda items were listed for the discussion in the 42nd Meeting of the Council:
1. Confirmation of the Minutes of GST Council Meetings.
i. 40th meeting of the GST Council held on 12thJune, 2020
ii. 41st meeting of the GST Council held on 27thAugust, 2020
2. Deemed ratification by the GST Council of Notifications, Circulars and Orders
issued by the Central Government
3. Decisions of the GST Implementation Committee (GIC) for information of the
Council
4. Timelines in respect of TRAN-1/TRAN-2 declarations based on the discussions of
13th meeting of IT Grievance Redressal Committee held on 01.09.2020
5. Update on Return Enhancement and Advancement Project (REAP) & in-principle
approval of overall architecture
6. Issues recommended by the Law Committee for the consideration of the GST
Council
i. Extension of the GSTR-1/3B system of return filing and change in due
date for quarterly taxpayers upon introduction of the new GSTR-2B
functionality
ii. Issues related to Annual Return for Financial Year 2019-20
iii. Steps taken to improve compliance behavior of taxpayers for making
furnishing of GSTR-1 mandatory before furnishing GSTR-3B
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iv. Amendment to FORM GSTR-1 and notification 12/2017-Central Tax,
dated 28.06.2017 for improving data quality to enhance tax administration
v. Agenda Note regarding refund to be disbursed in same PAN and Aadhaar
linked bank account on which registration has been obtained under GST.
vi. Proposal for amendments to CGST Rules, 2017
vii. Limitation period for taking cognizance or institution of prosecution under
GST
7. Issues recommended by the Fitment Committee for the consideration of the GST
Council
i. Agenda Note on the representation received from HADMA seeking GST
rate of 12% on Ayurveda/Unani/Siddha’ (AUS)-ingredients based
sanitizer
8. Issues of Goods and Services Tax Network (GSTN):
i. Status of receipt of Advance User Charges (AUC) from States and CBIC
ii. Need for moving resources from CR model to T&M model for important
developments
iii. Status update on conversion of Goods and Services Tax Network (GSTN)
into 100% Government-owned Company
9. Agenda Note for continuation of cess beyond the transition period
9A. GST Compensation Options – Ways of meeting the Shortfall
10. Review of Revenue position
11. Enabling UPI and IMPS as a payment option for payments of Goods & Services
Tax
12. Status report of creation of GRC Zone-wise (CBIC) and States / UTs as on
04.09.2020
13. Performance Report of the NAA (National Anti-profiteering Authority) for the 1st
quarter (April to June, 2020) for the information of the Council
14. Any other agenda item with the permission of the Chairperson
i. Minutes of the Meetings of GoM on IGST Settlement held on 22.09.2020
& 01.10.2020
ii. GST on launch of small satellites by Indian enterprises
15. Date of the next meeting of the GST Council

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Preliminary discussion
3. The Hon’ble Chairperson invited the Union Finance Secretary and ex-officio Secretary to the GST
Council (hereinafter referred to as the Secretary) to begin the proceedings. The Secretary welcomed the
Hon’ble Chief Minister, the Hon’ble Minister of State (Finance), the Hon’ble Deputy Chief Ministers and
the Hon’ble Members to the 42nd Meeting of the GST Council.
3.1. After preliminary discussions, the Hon’ble Chairperson asked the Secretary to take up the
individual Agenda Items for consideration of the Council.
Agenda Item 1 : Confirmation of the Minutes of GST Council Meetings
4. The Secretary informed that the 1st Agenda item, was the confirmation of the Minutes of the 40th
and 41st Meetings of the GST Council (hereinafter referred to as Minutes) held on 12th June, 2020 and 27th
August, 2020 respectively. He stated that the Minutes were circulated to all the States in advance and
comments have been received from the following States suggesting the following changes.
i. The State of Puducherry suggested that:
a. in Para 6.5 of the minutes recorded for the 40th GST Council meeting in line 4, to replace
the presently recorded version (Several rounds of meetings were held amongst which one
was held in the presence of Hon’ble Union Finance Minister and it was agreed that this
issue will be resolved) with the following version “Several rounds of meetings were held
in this regard. One such meeting was held in the presence of the Hon’ble Union Finance
Minister and it was agreed that this issue will be resolved”.
b. in Para 9 of the minutes recorded for the 41st GST Council meeting, in lines 46 and 47, to
replace the presently recorded version (Further he brought up the issue that every State was
getting 51% revenue share whereas Puducherry was getting only 26% whereas it was
entitled to 51%) with the following version “Further he brought up the issue that every
State was getting 41% revenue share whereas Puducherry was getting only 26% whereas
it was entitled to 41%”.
ii The State of Kerala suggested that:
a. in Para 40 of the minutes recorded for the 41st GST Council meeting, to replace the
presently recorded version (the Hon’ble Member from Kerala stated that he disagreed with
the assessment made by the Finance Secretary in dealing with the situation. When the
economy is in recession, or in contraction, the theory suggests that the Government should
expand the expenditure.) with the following version “The Hon’ble Member from Kerala
strongly disagreed with the assessment made by the Finance Secretary in dealing with the
situation. He stated that barring one or two states all others who spoke, said
that the center should do the borrowing. Having felt the sense of the house, this aspect
should be discussed first and he took strong exception to the discussions centering on
Covid related revenue loss and non-Covid related revenue loss. When the economy is in
recession, or in contraction, the theory suggests that the Government should expand the
expenditure.”
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b. in Para 59 of the minutes recorded for the 41st GST Council meeting, to replace the
presently recorded version (the Hon’ble Member from Kerala stated that the best course
of action would be to give some time to the States to communicate the option they choose
to exercise.) with the following version “The Hon’ble Member from Kerala stated that the
best course of action would be to give some time to the States to examine the options.”
5. For Agenda Item 1(i) and 1 (ii), the Council approved the Minutes of the 40th GST Council meeting
and 41st GST Council meeting with the changes suggested by Puducherry and Kerala as detailed in para 4
above.
6. After confirmation of the minutes of the 40th and 41st meetings of the GST Council, the Hon’ble
Ministers from the States / UTs of Puducherry, Punjab, Kerala, Telangana, Haryana, Maharashtra requested
the Chairperson that the GST compensation issue should be discussed first while rest of the agenda items
could follow. The Secretary clarified that compensation issue was listed as Agenda Item 9A. He sought
permission of the Chairperson and the Hon’ble Ministers to first discuss Agenda Item 9 on continuation of
cess beyond transition period and then Agenda Item 9A. It was agreed upon and the meeting started with
discussion on Agenda No.9.

7. However, the minutes are presented below in sequence of the Agenda Items 2 to 14 for the
convenience of ease of reference.

Agenda Item 2: Deemed ratification by the GST Council of Notifications, Circulars and Orders issued
by the Central Government.
8. The Secretary asked Pr. Commissioner, GST Policy Wing, Sh. Yogendra Garg to place the Agenda
before the Council. PC, GSTPW introducing the Agenda briefed the Council that the Agenda is regarding
deemed ratification of Notifications, Circulars and Orders in relation to decisions already taken by GST
Council and if deemed fit may be ratified and approved by the Council. He stated that in the 40th GST
Council meeting held on 12-6-2020, the Council had ratified all the notifications, circulars and orders issued
before 10-6-2020. He thereafter made a presentation (Annexure 5) listing out all the notifications, rate and
non-rate of CGST, UTGST, IGST and Compensation Cess Circulars and Removal of Difficulty orders
issued since 10-6-2020 till 25-9-2020, under the GST Laws by the Central Government as available on
www.cbic.gov.in
9. For Agenda Item 2, the Council ratified the following:
i. the notifications, circulars and Orders as in Agenda Item and the presentation (attached as
Annexure 5) made during the Council Meeting, which are available on www.cbic.gov.in
Act / Rules Type
Notification/Circular/Order
Nos
CGST Act/CGST Rules
Central Tax

From Notification No. 48/2020-
Central Tax, dated 19.06.2020 to
Notification No. 73/2020-
Central Tax, dated 01.10.2020
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Act / Rules Type
Notification/Circular/Order
Nos
Notification No. 04/2020-Central
Tax (Rate) ,dt. 30-09-2020
UTGST Act
Union Territory Tax

Notification No. 02/2020 - Union
Territory Tax dated 24.06.2020
and Notification No. 04/2020 -
Union Territory Tax (Rate)
dated 30.09.2020
IGST Act
Integrated Tax



1. Notification No. 04/2020 -
Integrated Tax dated
24.06.2020
2. Notification No. 05/2020 -
Integrated Tax dated
24.06.2020
3. Notification No. 04/2020 -
Integrated Tax (Rate) dated
30.09.2020
Circulars Under CGST Act, 2017
141/11/2020 - GST
ROD Orders Under CGST Act, 2017
01 of 2020- Central Tax

ii. the notifications, Circulars and Orders issued by the States which are parimateria with above
notifications, Circulars and Orders.

Agenda Item 3: Decisions of the GST Implementation Committee (GIC) for information of the
Council
10. PC, GSTPW, CBIC informed that the GST Implementation Committee (GIC) took various
decisions between 27.05.2020. and 08.09.2020. Further, due to the urgency involved, certain decisions
were taken by GIC after obtaining approval amongst GIC Members by circulation. He made a presentation
(attached as Annexure 5) on the decisions taken by GIC.
10.1 The Hon’ble Deputy CM of Delhi on the decision of GIC with respect to sharing of information
with the Comptroller and Auditor General of India commented that this information should be sought
directly from GSTN instead of CAG approaching each State separately. He suggested that after getting
approval from the States, GSTN should make the information available directly to CAG. He stated that an
SOP be made by the Council for both CBIC and the States on the modalities of information sharing. He
added that CAG is first approaching the States and then States are seeking information from GSTN and
then sharing it with CAG. This will make the whole process cumbersome. He suggested that instead, GSTN
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should be authorised and with due approval of the States, GSTN should be allowed to share information
with CAG. He further stated that CAG was presently asking for information from the NCT of Delhi, so the
issue needs to be addressed urgently.
10.2 The Secretary to the GST Council acknowledged that suggestion of the Hon’ble Deputy CM of
Delhi was good and stated that it should be done the way suggested. He added that in consultation with
CAG, they had established certain protocol as to how information from the Central Government will go.
Now as per the suggestions given by the Hon’ble Member, the same will be incorporated and then in
principle approval can be taken with regard to the nature and manner of data sharing, so that whatever is
decided for Central Government, the same can be placed before the Council and based on that, data sharing
can be done with CAG. He informed the Council that the Deputy CAG had met him some time back and
placed similar request that going to all the States separately for data will be cumbersome and hinder proper
audit. He emphasised that proper audit was must to ensure timely corrective action on the observations of
CAG.
10.3 The CEO, GSTN, clarified that there were two aspects, one being selection of cases where audit
will be done and for that data can be taken centrally. Second is once the cases are selected then they need
to approach the particular jurisdiction and look at the files. He informed that now the Central Government
authorities have created User-ID and password for the CAG Officers so that they can access the
information. Suppose the CAG authorities want to look at the entire refund processing, they can see from
start to end for those cases which have been selected by them. Same thing they want for the States as well.
He informed that for 30 Model-2 States, GSTN was in the process of creating a similar kind of access
mechanism wherein the States create the access User-Id’s and passwords and give to CAG for accessing
data required.
10.4 The Secretary, GST Council summing up the discussion stated that today’s meeting could be taken
as authorisation for making similar mechanism for the States as had been done for the Centre after extensive
discussion with CAG for data sharing with CAG, wherein after approval from the States, the User-Id and
password can be given to CAG for enabling access and retrieval of data for the individual cases they want
to look at.
10.5 The Hon’ble Deputy CM of Delhi again stressed that approval of the State in this process was must.
10.6 The CEO, GSTN clarified that the User-Id and password will be made available to the State Nodal
Officer so that when the CAG team comes for audit it can be handed over by the State Nodal Officer for
access of data and then be taken back once audit is complete. So, the control rests with the States. As it is
approved today by Council, GSTN will work on the same and have the functionality ready at the earliest.
10.7 The Hon’ble CM of Delhi appreciated the same.
10.8 The Commissioner, Commercial Taxes, Karnataka submitted that as a Model 1 State, CAG had
already sought their data through the backend. So they were already accessing their system and as Model 1
State they did not have access to the GSTN system. So as far as Model 1 States were concerned, CAG could
continue to access their system much like their officers accessed it.
11. For Agenda Item 3, the Council took note of the decisions of the GST Implementation Committee
between 27.05.2020 and 08.09.2020.
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Agenda Item 4: Timelines for TRAN-1 and TRAN-2 based on 13th meeting of ITGRC
12. The Secretary of the Council asked the Convener, Law Committee to brief the Council on the
agenda. The Convener, Law Committee explaining the agenda informed that in 13th ITGRC meeting, it was
observed by the ITGRC that Rule 117(1A) of CGST Rules, 2017 had been amended vide Notification No.
02/2020-CT dated 01.01.2020 extending the due date for submitting the declaration electronically in Form
GST TRAN-1 upto 31.03.2020, in respect of taxpayers who could not submit the said declaration by the
due date on account of technical difficulties on the common portal and in respect of whom the Council had
made a recommendation for such extension. Similarly, due date of filing TRAN-2 had been extended upto
30.04.2020. In view of the spread of pandemic COVID-19, these timelines stood extended to 31.08.2020
vide CBIC Notification No. 35/2020–CT dated 03.04.2020 read with Notification No.55/2020-CT dated
27-06-2020.
12.1 He further informed that the ITGRC in its meeting held on 01.09.2020 had recommended 26 cases
(12 cases received from Nodal Officers and 14 cases received on account of Court cases) for opening up of
the portal to file revised TRAN-1/TRAN-2. Further, another 31 cases viz. 9 Court cases and 22 cases
received from Nodal Officer (received by nodal officers before 31.03.2020) were under examination by the
GSTN. He informed that the ITGRC had observed that as due date for submitting the declaration
electronically in Form GST TRAN-1 under present provisions of Rule 117(1A) was already over on
31.08.2020, it therefore appeared that ITGRC could not take up any fresh case for discussion and
recommendation unless the Rule was amended. In view of the above, the ITGRC requested that this issue
might be referred to Law Committee before bringing it to GST Council for appropriate recommendation.
12.2 The issue was deliberated by Law Committee in its meeting held on 09.09.2020, wherein it was
decided that the timeline under Rule 117(1A) should not be extended, as any extension of time limit under
Rule 117(1A) may adversely affect the stand taken by the Government in the Special Leave Petition 7425-
7428/2020 filed by the Revenue in the case of Brand Equity Treaties Limited in the Hon’ble Supreme Court.
12.3 The Secretary apprised the Council that this Agenda involves two parts:
(a) The ITGRC had recommended 26 cases (12 from Nodal Officers and 14 Court cases) in its 13th
meeting held on 01-09-2020 for opening up of the portal to file revised TRAN-1/TRAN-2.
(b) The cases pending with GSTN as on 01-10-2020, including 9 Court cases and 22 cases received
from Nodal Officer (received by nodal officers before 31.03.2020), totaling to 31 cases.
He explained that though the due date for submitting the declaration electronically in Form GST
TRAN-1 under present provisions of Rule 117(1A) was over on 31.08.2020 but these 26 cases, having
technical glitches while filing TRAN-1/TRAN-2 and recommended by the ITGRC, may be considered so
that the portal can be opened for these cases. This would give legal backing for enabling opening up of the
portal in respect of these 26 cases recommended by ITGRC.
12.4 For the cases mentioned at 12.3(b) above, he requested the Council that the issue may be kept open
and the same can be brought back to the Council. He informed that many of these taxpayers are approaching
Courts to get transitional credit and that there is a need to be cautious as whatever is done with regard to
these cases would have legal implications.
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13. For Agenda item 4, the GST Council took note of the above and accorded its approval for 26 cases
duly recommended by ITGRC in its 13th meeting held on 01-09-2020 for opening up of the portal to file
TRAN-1/TRAN-2, if they had faced technical glitch.
Agenda Item 5: Update on Return Enhancement and Advancement Project (REAP) & in-principle
approval of overall architecture
14. The PC, GSTPW made a presentation (Annexure 5) and briefed the Council that in the 39th GST
Council meeting held on 14.03.2020, it was decided that instead of an entirely new return system,
enhancements were to be carried out in the existing system and achieve the same objective. The Return
Enhancement and Advancement Project (REAP)undertaken by the GSTN essentially involved, inter-alia,
that the liability got auto-populated from the GSTR-1, the credit got auto-populated from GSTR-1 of the
suppliers and ultimately an auto populated return is generated.
14.1 Briefing the Council PC, GSTPW highlighted that following features had already been enabled
under REAP:-
i. Nil filing of GSTR 3B by SMS
ii. Nil filing of GSTR-1 by SMS
iii. Auto population of liabilities from GSTR-1 to GSTR- 3B for Monthly Taxpayer
iv. Auto drafted ITC Statement (GSTR-2B): Elaborating on this point, PC, GSTPW stated that auto
drafted ITC statement in GSTR-2B was now available. The Secretary explained that one of the
major issues during discussions in the Council was invoice matching. In GSTR-2B details of all
the suppliers’ invoices could be seen and on that basis his ITC was being computed leading us to
the final goal of invoice matching. He stated that GSTR-2B was an important step in that direction.
He reminded the Council of the presentation made by Sh. Nandan Nilekani in the 39th GST Council
meeting held in March wherein he was requested that by end of July, certain important milestones
be achieved, and this was one of them. This should prove beneficial for taxpayers as they would
know the exact ITC available to them on the basis of invoice matching and also for the tax
administration as any undue utilisation of tax credit will be red flagged for necessary action and
follow up. So, it was good for the taxpayer and good for the tax administration and should definitely
boost tax collection.
v. Enhancement of existing comparison report of auto-drafted and filed values for GSTR-3B
vi. Matching Tool for matching GSTR-2B and the Purchase register: To this point the PC, GSTPW
elaborated that matching tool is now available using which the taxpayer could match his purchase
register to GSTR-2B and find missing invoices. He stated that a communication tool is under
development which would enable taxpayers to send the details of missing invoices to his suppliers
for making necessary corrections/declaration.
vii. Import data as part of GSTR-2A download and GSTR-3B auto-population: To this point PC,
GSTPW added that earlier import data from customs was on self-entry basis and now it was also
flowing from the system automatically into the GSTR-2B.
viii. Delinking of credit/debit notes with invoices in GSTR-1/GSTR-6
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ix. Providing detail of invoices considered for computation in Table 8A of GSTR-9: To this point,
PC, GSTPW elaborated that in GSTR-9, ITC was auto populated for the entire year but the taxpayer
did not know as to which invoices were captured and there was a difficulty in reconciliation which
had now been made resolved.
Giving the roadmap, graphically depicted in the presentation (Annexure5) the PC, GSTPW stated that
finally everything will be linked, and taxpayer would get an auto drafted GSTR-3B from the system. The
ultimate goal is that everybody needs to declare only their GSTR-1, that is their own invoices, and once e-
invoice was achieved for everybody, even GSTR-1 will also be automatically prepared and from this
GSTR-3B will also be prepared. This would ensure that the compliance cost and burden go down
significantly and barring reverse charge supplies and ITC reversals, practically everything will be done by
the system.
14.2 He further highlighted that the only area where work was yet to be done was regarding the earlier
approved quarterly return with monthly payments which was proposed to be rolled out as part of the new
return system for smaller taxpayers with turnover less than Rs.5 crores. He informed that such taxpayers
are about 89% in number and contributed only about 13% to the total tax revenue. PC, GSTPW stated that
a similar QRMP system with a slightly different approach is now proposed to facilitate these small
taxpayers. He highlighted that the major issue was computation of the tax liability every month after taking
into account the outward supplies, inward supplies and ITC computation and filing of return because it may
require some external assistance. He stated that under the proposed scheme, all the small taxpayers having
turnover less than Rs.5 crores will have an option of either self-assessing their tax liability, or auto
generating their challans of 35 percent of the cash liability of the last quarter. Thus, based on past tax
liability, monthly tax liability would be allowed to be paid instead of assessing the tax liabilities. Only at
the end of the quarter, they would need to file their return and assess the correct liability. This way instead
of filing GSTR-3B and GSTR-1 every month, they would be required to be filed only quarterly which will
lead to substantial reduction in the compliance costs. The Secretary, GST Council added that the taxpayers
are actually paying 35% during first two months of the quarter on the basis of the last quarter cash payment
and in case, during the third month, he has to pay more because of greater tax liability for the quarter, then
he will not be required to pay interest on the tax liability for the first two months as he had already complied
with the 35% requirement. This would substantially reduce his compliance burden as instead of filing
monthly return, he is filing quarterly returns. He added that the total number of taxpayers with turnover less
than Rs. five crores is almost 89% and for making these monthly payments, these people will not need to
visit any accountant or professional anymore, so to that extent it will be a big relief.
14.3 The PC, GSTPW stated that the taxpayer will not need to refer back to his taxes and the system will
pick up and generate the challan. He stated that the quarterly filers will be required to file their GSTR-1
also quarterly only. He stated that the challenge in quarterly GSTR-1 currently available for taxpayers
having turnover less than Rs. 1.5 Crore is that some of the large buyers or buyers making exports demand
that invoices supplied to them should be declared on monthly basis. The smaller taxpayers are therefore
forced to either go for monthly compliance or lose their customers. He informed that keeping this difficulty
in mind, a facility is proposed so that the taxpayers can report invoices of such buyers on monthly basis
while report the rest on quarterly basis. Further he proposed that QRMP be made available from 01.01.2021
for which the option be made available from 01.12.2020. He informed that in order to facilitate these small
taxpayers, what is proposed is that they are migrated automatically by default to QRMP Scheme and they
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can opt out during December 2020-January 2021 till 31st January 2021 and the same will be publicised.
With this, he placed the following proposal for in-principle approval of the Council:
i. For month M1 and M2 of the quarter they will file only one challan PMT-06 for their liability (net
of ITC)
ii. Option to estimate tax liability or pay 35% of cash paid in last quarter
iii. Continuous invoice filing facility (IFF) to be made available in M1 and M2
He stated that once GST Council granted in principle approval to the same, the Law Committee would work
out the legal framework.
14.4 The Secretary GST Council reiterated that this was proposed to be brought from 01.01.2021 and
that it had two components. One part being Technology which was already being worked out and they were
confident that this would be done in time. The other part was legal for which certain changes in the Rules
would have to be made which Law Committee will work out, so the taxpayers should get the benefit of
QRMP right from the fourth quarter of this Fiscal Year.
14.5 The Hon’ble Member from Goa lauded the proposal and stated that it was long due and he was
waiting for invoice matching to be there. He complimented the officers for formulating this proposal and
opined that they should move ahead with it immediately for it to be implemented from 01.01.2021. He
reiterated that it was long overdue and congratulated the officers for having worked on it despite the
pandemic. He hoped this will help to plug leakages and firm up revenues.
14.6 The Hon’ble Dy. CM of Gujarat stated that it had always been discussed that the Forms and
Returns must be made as comfortable and easy as possible. He opined that the Law Committee had not yet
finalised the Return form and the format of the same must be widely publicised to CA’s and professionals
and feedback must be sought on it. He stated that it should be put up in public domain through website and
feedback from Trade associations and stakeholders be sought on whether it is really comfortable and easy
and only then should Law Committee finalise the same so that there is no need of any change in future.
14.7 To the point made by the Hon’ble Dy. CM of Gujarat, the PC, GSTPW explained that no returns
or forms were being changed and that the proposal was only to allow for monthly payment to small taxpayer
for which he will have to pay a challan of 35% of his cash payment of last quarter and that he will have to
file quarterly returns, for which the form remains the same. The Secretary, GST Council added that GSTR-
1 and GSTR-3B forms remained the same and only their frequency was being altered. This proposal would
require changes in the GST Rules which the Law Committee will look into and these will be brought before
the Council before 31.12.2020 for it to be made functional from 01.01.2021. Nonetheless he assured the
Hon’ble Deputy CM that in case any changes were made in the forms, they would consult the same with
stakeholders and obtain their feedback.
14.8 The Hon’ble Deputy CM of Gujarat suggested that they must strive to ease/simplify the forms as
these prove to be quite complicated for the small taxpayers who are being allowed to file returns quarterly.
A simple and easy form must be made available for these taxpayers. He thanked the Secretary for accepting
his suggestion on stakeholders’ feedback.
15. For Agenda Item 5, the Council granted in principle approval to the Quarterly Return and Monthly
Payment Scheme (QRMP) to be made available from 01.01.2021 as proposed and directed that the Law
Committee should work on the legal framework for the same expeditiously.
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Agenda Item 6: Issues recommended by the Law Committee for the consideration of the GST Council
16. The Secretary then asked PC, GST Policy Wing Sh. Yogendra Garg to take up this Agenda Item.
The PC, GSTPW, initiated the discussions with a presentation (Annexure 5) and briefed the Council that
all the proposals in this Agenda were discussed and recommended by Law Committee.
16.1 Taking up the Agenda Item 6(i) he stated that in the existing returns system consisting of GSTR 1-
2-3, since GSTR 2 and GSTR 3 were kept in abeyance, GSTR-1 and GSTR-3B need to be prescribed time
and again. He informed that the existing extensions were valid till 30 September 2020. The GST Council
in its 39th meeting held on 14th March, 2020 had already decided on incremental approach to new return
system by enhancing existing return system and that as explained in the previous agenda item, the said
project would get completed by 1st April 2021. Therefore, the proposal was that GSTR-3B and GSTR-1 be
prescribed till 31st March 2021 and at the same time Law Committee would work on ensuring that the legal
framework law gets aligned with GSTR-1 and GSTR-3B system which are going to be the final returns
system, so that further extensions are not required. He further stated that second part of the proposal was
that the due date of quarterly GSTR-1 is the last day of the month succeeding the quarter which would
cause difficulty to the buyers in availing ITC on time since now GSTR-2B has been made available which
gets generated on the 14th of the succeeding month. He explained that there was a need to align the due date
and it is proposed that due date for quarterly GSTR-1 be made 13th of the month following the quarter so
that GSTR-2B of the quarter involve all those invoices also. The Council approved the said proposal at 6(i).
16.2 Taking up the next Agenda Item 6(ii) the PC, GSTPW stated that it was regarding annual return /
reconciliation statement for 2019-20. He reminded the Council that for the annual returns for 2017-18 and
2018-19, based on the stakeholder’s suggestions, certain tables had been made optional. Now, out of those
optional Tables, two items i.e. details of ITC availed on capital goods and Tables 8A to 8D (ITC data) were
proposed to be made mandatory as part of 2019-20 return cycle. For 2020-21 cycle he stated that they will
be anyway developing a new form because of lots of enhancements which had taken place. He stated that
the second decision point was that the Council had made the annual return for 2018-19 optional for
taxpayers with turnover upto Rs.2 crore and 9C was mandatorily required to be filed by taxpayer having
turnover of above Rs.5 crore, but looking at the difficult times that the taxpayers have gone through due to
COVID related lockdown, further enhancement in turnovers in this regard could be considered. He
explained that just less than 2 percent of the taxpayers had turnover of greater than Rs.20 crore and who
contributed 84 percent of the tax. The PC, GSTPW, placed for the consideration of the Council whether
they should maintain the same threshold that is Rs.2 crore for GSTR-9 and Rs.5 crore for GSTR-9C or
should they be looking at any enhancement to give relief to more taxpayers.
16.3 The Secretary added that in this proposal some analysis had been done and it was discussed in Law
Committee and the Council can take a final view on this. He stated that Form-9C particularly requires some
professional help. It was also necessary because whatever extra credit one had taken, had to be reconciled
through 9C. He informed the Council that whatever tax came from 9C mechanism last year, majority of it
came from those who are having turnover more than Rs.20 crore. So the proposal was that if the turnover
for mandatory GSTR 9C could be increased from Rs.5 crore to Rs.20 crore it would provide a big relief to
the taxpayers and a larger number of taxpayers would not have to worry about filing 9C. Further he stated
that through data analytics if supposing they found large gaps and somebody had taken more credit than
due to him and if his turnover was less than 20 crores, they could always ask for more information. The
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Secretary opined that this kind of balanced approach will protect the revenue and ease the compliance
burden. He requested the Council to approve the proposal.
16.4 The Hon’ble Member from Kerala stated that when they had increased the limit last time he had
opposed it justifying that the annual return was a very important instrument to check tax evasion. Now
virtually they were giving it up in the name of easy compliance. He added that the extra effort to plug tax
leakage has a compliance cost. They had already raised the limit and raising it further was not a balanced
approach at all and therefore, he was not in favour of the proposal.16.5 The Hon’ble CM of Puducherry
stated that the present status for filing of annual returns GSTR-9 and 9A was that it was optional for
taxpayers with aggregate turnover less than Rs 2 crores and the filing of GSTR-9C was mandatory for those
with turnover greater than Rs.5 crore. In his view, filing of reconciliation statement in form GSTR-9C with
annual turnover of more than Rs.5 crore had to be continued. In the sense, he agreed with the view expressed
by the Hon’ble Finance Minister of Kerala that when they give exemption relaxations, it gives room for
evasion and the reconciliation statement definitely will help to avoid evasion of tax. Therefore, check and
balance will be there and according to him the present system of Rs.2 crores and Rs.5 crores be continued.
16.5 Hon’ble Member from West Bengal stated that in his presentation to the GST Council, Sh. Nandan
Nilenkani mentioned about significant leakage of revenue and bigger question was, as to how do we reform
this structure so that this leakage could be minimised. Of course now auto population was being proposed
which was one of the key points that three hundred crores of invoices were to be uplinked every month,
according to the original plan. He stated that GSTR-1 was working fine but GSTR-2 which was supposed
to be auto populated was not working. He enquired from the senior officers whether these changes would
bring down significant amount of leakage which is primarily due to input tax credit where fraudsters create
companies and those companies are non-existent shell companies and they create ITC on them because the
system does not have the auto population and matching of invoices there. What are the fundamental changes
which will help in reducing the ITC fraud due to the inefficiency or lacunae in the system, how do we do
that? If we can get an answer to that, if it was not possible now, if something could be produced to show
how this could happen, it would be big service in the collection of tax.
16.6 The Secretary sought the permission of the Hon’ble Chairperson to respond to the Hon’ble FM of
West Bengal stating that they had brought several proposals to achieve that goal of plugging leakages. In a
sense that some of the proposal had been brought in this Council Meeting and some had been approved in
the last two council meetings. One of the points mentioned by the Hon’ble Member about people creating
companies, fly by night operators, issuing invoices and disappearing had been restricted through
introduction of GST registration through Aadhar authentication. Now it was not that easy that somebody
gets some PAN card or some documents from somewhere and floats a company, issues invoice and
disappears. In order to get a registration, one will have to give Aadhaar and if somebody does not give
Aadhaar number then in that particular case his premises has to be physically inspected. He was very glad
to state that almost 90 percent of the new registration had been through Aadhaar based mechanism. Further
he added that GSTR-2B auto-population and matching had been implemented. He requested the Hon’ble
FM that instead of taking time here in the next Council meeting they could actually come up with the
presentation on the steps taken thus far to curb leakages, minimise ITC leakages, the achievements on that
front and the way forward and it could be discussed in detail.
16.7 The Hon’ble Member from West Bengal submitted that what the Hon’ble Deputy CM of Gujarat
had said with regard to stakeholder consultation and inputs, in his experience having been on both sides of
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the story, he found, was a very constructive suggestion. There were two sides of the story one is those who
create the shell companies and run away and the other is honest taxpayer who are made to go through such
a rigour. The bigger ones find ways and means through chartered accountant and smaller ones are unable
to do so. He suggested that as pointed by the Hon’ble Deputy CM of Gujarat, stakeholder consultation was
very important. He noted that it was here that they had repeatedly been making the mistake, not only in this
tax but taxation in general.
16.8 The Secretary agreed that stakeholder consultation was very important and they would include it
in every major decision. He brought to the notice of the Council that a major step had been taken from 1st
of October wherein electronic invoice (e-invoice) had been made mandatory for all companies having
turnover more than Rs.500 crore for B2B supplies. He noted that they were given a lot of time, lot of
discussion took place and finally from 1st October it was initiated and during the last 3-4 days, each day 6
to 7 lakh invoices were being filled electronically. He stated that the mandatory limit for e-invoices today
was Rs.500 crore and this Council had already approved that from 1st of January all companies having
turnover of more than Rs.100 crores will be required to generate e-invoice and ultimately, they will
gradually bring down this limit, so that smaller companies are also able to generate e-invoices. Finally, the
day everybody starts generating e-invoices, the whole concept of GSTR-1 will no more be relevant and the
invoice matching to that extent would be perfect, the return can be pre populated because all the invoices
are electronic. The taxpayer can simply verify and make the payment. He added that they were adopting a
gradual approach so that industry was also able to adjust. In this approach, bigger taxpayers are being
included first as once they are able to adjust to the new system, the medium and small industries also will
be able to follow up on the same.
16.9 The Hon’ble Deputy CM of Delhi stated that the driving force of this proposal, he presumed,
was change in the definition of MSME. He further stated that he was of the opinion that the 5 lakh taxpayers
falling between aggregate turnover of Rs.5 crores to Rs.20 crores were already getting their accounts
audited, even IT audit was already being done for them. If they were already getting their audit done, they
had to merely file return and subsequently with auto population tool this could be done. Therefore, he
opined that there was no need to relax it further as Rs.5 crore limit was already set, it should be allowed to
continue and they should not touch it and for the taxpayers with turnover above Rs 5 crore, it was not a big
deal as they were already getting their accounts audited.
16.10 The Secretary, with the permission of the Hon’ble Chairperson, stated that the older limit could be
retained and accordingly no change may be done. The PC, GSTPW, added that as part of this agenda 6(ii),
a clarification that annual return being optional for taxpayers with less than Rs.2 crores aggregate turnover,
was optional for composition dealers as well, may be issued. The Council approved the proposal to that
extent.
16.11 The PC, GSTPW taking up Agenda 6(iii) briefed the Council that for auto-population and any
matching, what was most important is that their outward supply statement, GSTR-1 was filed. Currently
the behaviour was very different though the behaviour had been changing ever since rule 36(4) was
introduced in terms of which the credit availed cannot be more than 110% of the tax as per invoices declared
by the supplier. He stated that still there was a gap of about 20% between GSTR-3B and GSTR-1 filing.
For the auto generation of liability in GSTR 3B under REAP project proposed from 1stof April, it was very
important that GSTR1 filing becomes disciplined and GSTR-1 is filed before GSTR-3B is filed. So, it is
proposed that measures be taken to ensure that GSTR-1 is filed before GSTR-3B. He explained that what
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is proposed is that there is going to be a system check and late fee collected from 1st of April 2021 if GSTR-
1 is not filed. He further stated that it was very important as the Secretary also mentioned that once GSTR-
1 is filed then the entire returns can be auto-populated. Of course, when e-invoice reaches the last level, the
GSTR-1 itself will become redundant but till such time it was important that GSTR-1 was filed. The other
measures which Council had approved in the meeting held in December last year was to bring in system
check that e-way bill is blocked if GSTR-1 are not filed. He further stated that both kinds of behaviour are
there that some file GSTR-1 and not file GSTR-3B and vice versa. He added that if the Council approves
the proposal in this meeting, the trade would get six months’ advance notice.
16.12 The Secretary said that the said requirement will come into effect from 1st of April 2021 and this
was very important. As the Hon’ble FM of West Bengal had mentioned about ITC leakages and resulting
loss of revenue, these steps regarding filing of GSTR-1 prior to GSTR-3B must be taken. And in case
GSTR-1 is not filed for 2 months their e-way bill would be blocked. He added that they were giving enough
time so that trade and industry can adjust before it is rolled out from 01-04-2021.
16.13 The PC, GSTPW stated that quite a large number of large taxpayers and compliant taxpayers were
already filing and more than two third of the paying taxpayers were already following this behaviour. He
further stated that for the late fee on delayed furnishing of GSTR-1, currently there is an impression that on
GSTR-1 there is no late fee though there is a late fee in law. The same is not being populated in the next
month’s GSTR-3B and not being thus collected also unlike the late fee for delayed submission of GSTR-
3B. The proposal is that from 1st of April 2021, GSTR-1 late fee also appears in the next GSTR-3B. Another
proposal for auto-population along with this is that of interest on the delayed payment of tax. He informed
that the Council had already decided that interest will be on net basis. Therefore, it is proposed that from
1st of April, the late payment interest would also auto populated in GSTR-3B so that it can be collected with
tax payment itself. It will also bring in more discipline in GSTR-3B filing. No change in law was required
and these all were procedural changes. Further, he informed that since GSTR-3B can contain liability of
earlier months also, there will be a facility to modify and add interest.
16.14 Taking up the next Agenda Item 6(iv) on changes in HSN requirement, the PC, GSTPW, stated
that tax administration had been struggling to generate the sectoral data. A conscious decision was taken
that in the first two-three years of the GST to not burden taxpayers with HSN requirement. Currently, for
taxpayers having aggregate turnover upto Rs.1.5 crore no HSN is to be given, from Rs.1.5 to Rs.5 crore
aggregate turnover it is only 2 digits and above Rs.5 crores it is 4 digits. But this is leading to misuse besides
challenge in getting sectoral data. Quoting the example of stainless-steel, PC,GSTPW, stated that people
don't declare the correct heading as they declare only 2 digit or 4 digit and the distinction cannot be made
between costly grades and cheap grades leading to evasion of tax. He explained that the proposal was that
from 1st of April 2021, 6 digit HSN for goods and service be made mandatory for all taxpayers above Rs.5
crore aggregate turnover while for those below Rs.5 crore aggregate turnover 4 digit code will be mandatory
only on B2B supplies. In addition, power to prescribe a class of supplies where the 8-digit HSN/SAC must
be mentioned so that sensitive items like chemical weapons or evasion prone goods like stainless steel etc.
can be effectively monitored. He also proposed to modify GSTR-1 to add ‘Rate of Tax’ in Table 12 so that
combined with the HSN the correct sectoral data can be obtained which would help in taking correct policy
view.
16.15 Taking up the next Agenda Item 6(v) the PC, GSTPW stated that in the last three years investigation
had shown that refunds were taken into accounts opened on the basis of fake documents. So when tax
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administration went after people after finding fake refund by monetisation of fake credit, they were unable
to trace them. Accordingly, it is proposed that refund be given only in the account which had been validated
vis-a-vis with the Aadhaar and PAN of the claimant. It would ensure that the refunds were going into
authenticated account belonging to registered taxpayer and not in the account of some operators of fake
credit. Further, as was approved in earlier Council meetings, the refund applications would be Aadhaar
validated so, one knows that it is coming from genuine person.
16.16 Moving to the next Agenda Item 6(vi) pertaining to amendment in CGST rules the PC, GSTPW,
stated that in Covid period they had stopped blocking e-way bill. The current rule was that if two
consecutive GSTR3Bs were not filed the e-way bill gets blocked. Since, conditional relaxation in filing of
GSTR3B was given in lockdown period, blocking of e-way bills had been stopped w.e.f. 25th March
2020. He informed that there was demand from some of the State Administrations that such suspension of
blocking should be made part of the rules. So, it was discussed in the Law Committee and the
recommendation was a proviso may be added in Rule 138E that from 20.03.2020 to 15.10.2020 no e-way
blocking be carried out and that from 15.10.2020 blocking will be reinitiated for taxpayers having aggregate
turnover above Rs.5 crore. He informed that for taxpayers having aggregate turnover below Rs.5 crores,
we would watch the behaviour and then take an appropriate call. He further stated that like they allowed
GSTR-3B and GSTR-1 nil filing through SMS now the composition taxpayers who have no liability in a
particular quarter also will be able to do NIL filing through SMS. He further highlighted some technical
changes as mentioned in his presentation (Annexure 5) for approval of the Council.
16.17 Moving to the next Agenda Item 6(vii) pertaining to inclusion of GST laws in Economic Offences
(Inapplicability of Limitation) Act, 1974 the PC, GSTPW stated that this was very important as in CrPC
there was a time limit for prosecution. He stated that in the Economic Offences Act (Inapplicability of
limitation) Act, 1974 all the existing laws are listed there but the GST laws are not there. He informed that
in some cases, people being arrested in GST offences were given bail on day one saying that GST Officers
do not file prosecution application within the limitation period. The proposal is that all the Central GST
Acts that is CGST Act, IGST Act, the UTGST Act and the Compensation Cess Act be put in the Annexure
to this Act. He further informed that most of the States also have similar acts and they also needed to carry
out the similar amendments. Wherever a State doesn't have such an Act, a proviso as per draft can be
inserted in the SGST Act itself.
16.18 Member CBIC Sh.Vivek Johri added that significance of changes carried out through this
amendment is that, otherwise, the general limitation which was applicable under CrPC would also apply to
all GST offences and that will prevent us from filing prosecution in time and taking action.
17. For Agenda Item 6, the Council took the following decisions:
i. Approved extension of the present GSTR-1/3B return filing system till March, 2021;
ii. Approved changing the due date for furnishing GSTR-1 by quarterly taxpayers till 13th of the month
succeeding the quarter;
iii. Granted in principle approval to make legal changes to replace GSTR-1/2/3 related provisions with the
present GSTR-1/3B return filing system.
iv. Empowered the Law Committee to deliberate upon the amendments required in the GST Acts and Rules
accordingly.
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v. Approved issuance of clarification with respect to waiver of annual return in FORM-9A for composition
taxpayers.
vi. Approved measures to ensure GSTR-1 filing mandatory before GSTR-3B from 01.04.2021 through
Waiver of GSTR-1 late fee if same is filed before GSTR-3B
Blocking of e-way bills to be enabled on system from 01.04.2021 if two consecutive GSTR-1’s are
not filed
vii. Approved to populate GSTR-1 late fee in next GSTR-3B
viii. Approved to populate interest for late payment of tax also in next GSTR-3B from 01.04.2021
ix. Approved facility to add interest if part of the liability being declared in GSTR-3B pertains to earlier tax
periods.
x. Approved making 6 digit HSN for goods and 6 digit SAC for services mandatory for taxpayers above
Rs. 5 Cr. turnover w.e.f. 01.04.2021
xi. Approved making 4 digit HSN/SAC compulsory on B2B supplies by taxpayers below Rs.5 Cr. turnover
w.e.f. 01.04.2021
xii. Amend Rules to empower to notify 8 digit HSN on notified class of supplies by all taxpayers
xiii. Approved modification of GSTR-1 to include Rate in Table 12 to have better sectoral data w.e.f.
01.04.2021
xiv. Approved grant of refund only in a PAN & Aadhaar linked Bank account of the claimant.
xv. Approved Aadhaar revalidation at the time of filing refund application.
xvi. Approved waiver of blocking of e-way bill during COVID period from 20.03.2020 to 14.10.2020 - to
be given legal backing through a proviso in CGST Rule 138E
xvii. Approved blocking to be reinitiated from 15.10.2020 for taxpayers with turnover > Rs. 5 crore.
xviii. Approved NIL filing of CMP-08 through SMS from a date to be notified-change in CGST Rule 67
xix. Approved change in Rule 142(1A) making communication of demand ascertained by the officer in
FORM DRC-01A optional
xx. Approved changes in forms-RFD-01, GSTR-5 (non-resident) to include reverse charge liability, GSTR-
5A (OIDAR) to include place of supply and Provision for declaring fee in DRC-1,2,7,8,9,24,25 & ASMT-
16
xxi. Approved inclusion of GST Laws in Schedule to Economic Offences (Inapplicability of Limitation)
Act, 1974 so as to exclude from said limitation and inclusion SGST Act in the Schedule of respective Acts
or if such an Act is not there, then to insert proviso to Section 134.
Agenda Item 7: Issues recommended by the Fitment Committee for the consideration of the GST
Council. 7(i): The representation received from HADMA seeking GST rate of 12% on Ayurveda /
Unani / Siddha (AUS)-ingredients based sanitizer.
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18. The Secretary introduced the Agenda Item 7(i) to the Council and asked the Joint Secretary, TRU-
I (Co-Convener of the Fitment Committee) to present the agenda before the Council.
18.1 The JS, TRU-I stated that a representation dated 27thJuly, 2020, was received from the Haryana
Ayurvedic Drugs Manufacturers Association (HADMA) regarding Ayurveda / Unani / Siddha (AUS)
ingredient-based sanitizers, having Tulsi, Neem, aloe vera or other similar ingredients, claiming that the
said goods were Ayurvedic medicines and, therefore, merit classification under HS Code 3004 90 11 and
should attract GST at the rate of 12%. The contention was that the clarification in Press Release dated the
15th July, 2020 did not apply to AUS ingredient-based sanitizers. Their main argument was that AUS
ingredients-based sanitizers should be treated differently from alcohol-based sanitizers for the purpose of
GST levy, since AUS ingredients-based sanitizers fall under category of Ayurveda ‘medicines’ and required
license under the Drugs and Cosmetics Act, 1940.
18.2 Subsequently, HADMA filed CWP No. 11474 of 2020 before the Hon’ble Punjab and Haryana
High Court, praying for accepting their above-mentioned contention regarding AUS ingredient-based
sanitizers, as well as relief from enforcement action by GST authorities on this account. The Hon’ble High
Court, in its Order dated the 11th August, 2020 disposed of the said petition with the observation that “It is
hoped that the same shall be taken up for consideration by the GST Council at the earliest, considering the
issue involved.” The Hon’ble High Court directed that the representation of HADMA dated 27thJuly, 2020
be placed before the GST Council for consideration.
18.3 The JS, TRU explained the contentions of HADMA. The representation of HADMA dated 27th
July, 2020 was placed before the GST Council as per the Order dated 11-08-2020 of the Hon’ble High
Court of Punjab and Haryana. The JS, TRU further explained the details of Press release dated 15-07-2020,
WCO reference from Covid-19 medical supplies and other details to the GST Council. He stated that the
Fitment Committee had examined the issue and recommended that Ayurveda / Unani / Siddha (AUS)
ingredients-based sanitizers were classified under tariff item 3808 94 00 and attracted 18% GST and as
such there should be no distinction between them and alcohol-based hand sanitizers.
18.4 The Hon’ble Ministers from Delhi and Kerala expressed their agreement with the recommendations
of the Fitment Committee. The Hon’ble Deputy Chief Minister from Gujarat also supported the
recommendation. The Hon’ble Minister from Tamil Nadu stated that same rate should be there for all types
of sanitizers otherwise it might lead to misclassification disputes. The Hon’ble Minister from Uttar Pradesh
stated that the present GST rate of 18% on all types of sanitizers should continue. The Deputy Chief
Ministers from Bihar, Haryana and the Hon’ble Minister from Rajasthan also agreed with the
recommendation. The Hon’ble Chief Minister from Puducherry also supported the proposal that GST rate
of 18% should continue on all types of sanitizers. Thus, the GST Council, after considering the
representation of HADMA dated 27th July, 2020, agreed with the recommendations the Fitment Committee
on this issue.
19. For Agenda Item 7(i), the GST Council recommended that the Ayurveda / Unani / Siddha (AUS)
ingredient-based sanitizers be classified under tariff item 3808 94 00 with 18% GST and as such there
should be no distinction between them and alcohol-based hand sanitizers.
Agenda Item 8: Issues of Goods and Services Tax Network (GSTN):
8(i): Status of receipt of Advance User Charges (AUC) from States and CBIC
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20. The Secretary of the Council asked the CEO, GSTN to brief the Council on the agenda. The CEO,
GSTN stated that as per the Revenue Model of GSTN approved by the Empowered Committee of State
Finance Ministers (EC) in its meeting held on 30th August 2016, the GST System Project was being
implemented by GSTN as per approval of the Cabinet and the cost incurred on the project (Capex and
Opex) along with GSTN’s own expenses was to be shared equally by the CBEC (now CBIC) and States in
the form of User Charges to be remitted by them in two (2) instalments in a Financial Year on a half-yearly
basis by 1st March and 1st September of the year.
20.1 He further informed that as per the approved Revenue Model, GSTN had raised demand for the
payment of AUC to the Central and State Governments for the 2018-19, 2019-20 and 2020-21. The
Advance User Charges of FY 2018-19 was received from all States and Centre, except from the States of
Punjab and Telangana. GSTN had been following up for the same with the concerned states. Further, the
follow up for Advance User Charges of 2019-20 was also being made continuously, including by way of
informing the status to the GST Council. Also, the first instalment of Advance User Charges for FY 2020-
21 was payable by 1st June 2020 and second Instalment was payable by 1st October 2020. However, in view
of the current situation, few states had expressed concerns that they might not be able to release funds to
GSTN within specified time, and had requested for extension of time without interest.
20.2 The Secretary stated that the CBIC had paid its first instalment of Rs.132.22 Crores towards AUC
for FY 2020-21. Submitting the status of pendency of AUC as on 29-09-2020, he specifically pointed out
the following:
(a) The States of Telangana, Punjab and others who had not paid the AUC for FYs 2018-19 and 2019-
20 were requested to pay their dues at the earliest.
(b) For FY 2020-21, the first installment for payment of AUC was due on 01-06-2020 and the second
installment for payment of AUC was due on 01-10-2020. Many States and the UTs had not paid
the AUC for FY 2020-21. Some of the States had requested for extension of time without interest.
Hence, he requested the GST Council to give consent for extension of due date for payment of
AUC for FY 2020-21 (both first and second installments) till 31-03-2021 without levying any
interest.
21. For Agenda Item 8(i), the GST Council took note of the above and accorded its approval for
extension of the due date for payment of AUC for FY 2020-21 (for both first and second instalments) till
31-03-2021 without levying any interest. Further, the States who had not paid the AUC for FYs 2018-19
and 2019-20 are requested to pay their dues at the earliest.
Agenda Item 8(ii): Need for moving resources from CR model to T&M model for important
developments.
22. The CEO, GSTN explained the agenda that the proposal of Software development under actual
identified resources utilization model, commonly known as Time and Material (T&M) basis, to implement
the changes identified under roadmap for incremental improvements to existing Returns (Linking of GSTR-
1/GSTR-2A/2B with GSTR-3B) was placed before the GST Council in its 39th meeting held on 14th March
2020. Consequently, Council approved the proposal of incremental enhancement of existing Returns on a
T&M basis starting with 60 personnel to carry out development. GSTN also approved 30.5 resources under
T&M model for critical changes of Back office, Front Office and Registration module of GST System,
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which had been named LEAP Project. These were not really additional resources being paid for but
movement of resources from normal CR model of change implementation to T&M model of change
implementation.
22.1 He further explained that the main difference in T&M model and normal CR model is that in T&M
model payment is calculated in terms of man-days of resources identified which were deployed exclusively
for the project. It was for GSTN to closely monitor the running of the project and ensure that the manpower
was fully utilised. At present GST, which had fast evolving law, needed this agile mode of IT development
under T&M model. GSTN was now experienced enough to use T&M model of development and deliver
projects faster. In CR model payment was made for individual CR and effort was estimated for each step
in the development and payment was for effort in the development. On the other hand, huge time was spent
on estimation of efforts, impact assessment etc and then designing involving to and fro movement between
GSTN and Infosys till agreement was arrived at the effort estimation and thereafter the software was
developed.
22.2 The CEO, GSTN further informed that the GSTN and Infosys started T&M model in the month of
April for changes in Returns and related CRs and named this as REAP (Return Enhancement and
Advancement Project). Accordingly, following approvals were requested from the GST Council:
(i) that the methodology of getting the work done on T&M basis, would be followed for developing
above mentioned changes along with other critical changes which had direct impact on
revenue. Overall 45 resources (30 in REAP and 15 in LEAP Project) starting from 1st Oct 2020
till 30th June 2021 would be utilised for the same over and above the existing resources; and
(ii) to extend REAP & LEAP Projects with existing resources from 1st Oct 2020 till 30th June, 2021.
22.3 Further, the Secretary apprised the Council that the agenda proposed methodology of getting the
work done on T&M basis through 45 additional resources for developing the software changes mentioned
in para 5 of the Agenda Item 8(ii) from 01-10-2020 to 30-06-2021 over and above the existing resources.
He also sought extension of REAP AND LEAP Projects with existing resources from 01-10-2020 to 30-
06-2021.
23. For Agenda Item 8(ii), the GST Council took note of the above and accorded its approval to the
proposal contained in Agenda Item 8(ii).
Agenda Item 8(iii): Status update on conversion of Goods and Services Tax Network (GSTN) into
100% Government-owned Company
24 The CEO, GSTN stated that the GST Council in its 27th Meeting held on 4th May 2018 had decided
that the GSTN will be converted into a 100% Government-owned entity by transferring 51% equity shares
held by the Non-Government institutions to the Centre and States equally. The Union Cabinet in its Meeting
held on 26th September 2018 had approved the proposal and the present status of conversion of GSTN into
100% Government-owned Entity.
24.1 He apprised that the Union Government and 24 States / UTs had paid the amounts while the
payment was pending from 07 States as on 16-09-2020. After the payment to the non-Governmental
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institutions for the shareholding by the remaining States, further processes were required to be done to
convert GSTN into 100% Government-owned entity.
24.2 He stated that there was an urgency to complete the process as early as possible and following were
placed before the Council for information and directions:
(a) The present status of conversion of GSTN in to 100% Government-owned entity.
(b) The 07 States as listed in (Annex-2 of the Agenda) may be requested to make payment of their
respective share purchase consideration and execute necessary documentations including
Shareholders' Agreement and send the same to GSTN in order to expedite the matter of conversion
of GSTN.
24.3 During the discussion, the GSTN updated that as on 03-10-2020, out of the 07 remaining States,
03 States viz. Tamil Nadu, Telangana and Arunachal Pradesh had made the payments to Non-Government
Institutions for share transfer. The officials from Andhra Pradesh Government stated that Andhra Pradesh
Government had already paid requisite amount on 03.10.2020 for their share purchase consideration.

24.4 Further, the Secretary apprised the GST Council that after payment by the 04 States as mentioned
above, only three States viz. Rajasthan, Chhattisgarh and Sikkim were remaining for payment of their
respective share purchase consideration to Non-Government Institutions. The officials from Rajasthan
Government stated that they had moved the proposal to Finance through Budget which could not be cleared
in Assembly and they would pay as soon as it was approved by the Assembly. The Secretary suggested that
the amount of Rs.8.23 lakhs was not much, and requested for exploring other methods (Head of Account)
for early payment.

25. For Agenda Item 8(iii), the GST Council took note of the agenda and requested the concerned
States to make early payment of their respective share purchase consideration to non-Government
institutions.
Agenda Item 9: Extension of levy of GST Compensation Cess beyond transition period.

26. The Secretary requested the Joint Secretary, DoR to present the agenda and initiate the discussion.
The JS, DoR began his discussion by quoting Section 8(1) of the GST (Compensation to States) Act 2017
which provided for levy of Compensation Cess on supply of goods and services for the purposes of
providing compensation to the States for loss of revenue arising on account of implementation of the Goods
and Services Tax for a period of five years or for such period as may be prescribed on the
recommendations of the Council. To ensure that the total cess is sufficient to cover the compensation
requirement during the entire transition period, the levy of cess would have to be extended beyond initial
period of five years. He informed that the Learned Attorney General of India, in his opinion in Note dt 26-
08-2020, had recommended that the continued levy and collection of the cess beyond the period of five
years could take place only in the event there has been a shortfall in the payment of compensation to the
States during the 5 year transition period. In other words, the GST Council would recommend the
continuance of the cess beyond the transition period of 5 years only in a situation of shortfall during the
transition period, which would necessitate the raising of funds for paying the compensation to the States
after the 5 year period is over.
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26.1 In light of the above, the Secretary requested the GST Council to take a view and consider the
recommendation that the levy of compensation cess be extended beyond the transition period of five years
for such period as may be required to meet the gap. Further, the exact period for which the cess would be
extended beyond June 2022 would be worked out and brought before the Council subsequently.

26.2 The Hon’ble Minister from Kerala welcomed the proposal. The Hon’ble Minister from West
Bengal stated that this proposal was very good and that it would not burden whoever borrowed. He
submitted that the Compensation Cess collected beyond the transition period may be used for paying off
interest and the principal amount and accordingly, the period for which the levy has to be effected beyond
the transition period ought to be decided. The Hon’ble Minister from Punjab also praised the proposal and
submitted that the end date should not be defined and the levy should be extended till full compensation is
settled. The Hon’ble Minister from Karnataka welcomed the proposal calling it both imperative and
inevitable. The Hon’ble Chief Minister of Puducherry stated that as there is a provision in law, it is agreed
upon to extend. Due to the extension of levy of the compensation cess beyond five years, the States would
not lose anything. This was also in accordance with the commitment made by the then Union Finance
Minister and Chairman of the Council Late Shri Arun Jaitley. The Hon’ble Minister from Madhya Pradesh
also supported the proposal. The Hon’ble Minister from Uttar Pradesh thanked the Chairperson for this
proposal and supported it. The Hon’ble Minister from Goa congratulated the Chairperson for taking such a
practical decision. During this period of global pandemic, India was far better than many other countries,
on account of the steps taken by the Hon’ble FM. The slow-down was mostly due to the pandemic and not
due to any reason on account of the Union of India. The GST architecture was working very well and as
the economic activity picks up, the revenue will become very good. The Hon’ble Minister from Odisha
supported the proposal.

27. For Agenda Item 9, the Council took note of the suggestions made by the Hon’ble Ministers and
approved to extend the levy of Compensation Cess beyond June 2022 till the entire shortfall is covered.
The extension has to be reviewed from time to time.

Agenda Item 9A: GST compensation options – ways of meeting the shortfall as discussed on 5th
October, 2020.

28. The Secretary asked the Joint Secretary, DoR to initiate the discussion on the Agenda Item. The
Joint Secretary, DoR stated that after the discussion on ways to meet shortfall in cess collection in the 41st
meeting of the GST Council held on 27-08-2020, States were given two options to meet their GST
compensation shortfall for current FY from market borrowing. The details of the two options were
communicated to States by the Department of Expenditure, Government of India. Thereafter, 21 States
opted for Option-1 while Puducherry indicated that it would accept Option-1 if accepted by all States. He
further stated that the States while giving the option have also made several suggestions and given their
views which are tabulated in Annexure to the Agenda Item. No State has yet opted for the Option-2.

28.1 The Secretary stated that based on these suggestions, the Department of Expenditure had agreed to
modify Option-1 as under:-
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(i) Projected growth of 10% would be reduced to 7% and the amount under Option-1 would then
be about ₹1.1 lakh crore.

(ii) The interest on borrowing will remain the first charge on the Fund. The repayment schedule
will be spread out during the period of extension of cess beyond transition period so that the part
of the cess collection, remaining payment of interest and repayment of debt is released to the States
against arrears of compensation.

28.2 The Secretary stated that the States which had not yet given their options may indicate their views
on Option-1 in the meeting. He further emphasized that the Department of Expenditure had communicated
that this borrowing of ₹1.1 lakh crore is in addition to the increase in the borrowing limit from 3% to 5%.
He stated that there should not be any doubt regarding the headroom for the States as this borrowing is in
addition to the 5% already available to the States. He further stated that in case a State were not able to
borrow the entire amount up to 5% in the present year, it also could be extended to next year as per the
special dispensation scheme as communicated by the Department of Expenditure. With the above details,
he submitted the Agenda Item to the Council for discussions.

28.3 The Hon’ble Minister from Chhattisgarh informed that the Hon’ble Chief Minister of Chhattisgarh
had expressed that the State was not able to accept either of the options provided. He stated that instead of
limiting to two options, the matter could have been left open for any State to give any proposal regarding
borrowing on their account or any other mechanism by which the shortfall in cess collection could be met.
He further stated that keeping in view the principles of cooperative federalism and Section 18 of
the Constitution (One Hundred and First Amendment) Act 2016, it was not proper to seek opinion on a
matter which had already been decided and incorporated in the Constitution (One Hundred and
First Amendment) Act 2016 and that the GST (Compensation to States) Act 2017 does not make any
differentiation in the shortfall in revenue either on account of implementation of GST or due to Covid-19
or any other reason. He urged that the GST Council must live by the letter, word and spirit of the
Constitution. The Hon’ble minister further stated that the international rating agencies also consider the
debts taken by the States to be the cumulative debt of the country when they downgrade or upgrade a
country’s economic rating. He further stated that the majority should not be the deciding factor, instead, the
principles enshrined in the Constitution, considered decisions and judgment that all members had taken
since the inception of the concept of GST to the passing of the GST Act should work. He stated that the
Centre should come forward to carry out its bounden Constitutional duty in times of stress by being the
agency taking the loan which would be serviced by the extended Cess collections beyond June 2022, instead
of just being a guarantor.

28.4 The Hon’ble Minister from Rajasthan stated that he agreed with the views of the Hon’ble Minister
from Chhattisgarh. He stated that during the debate on GST in the Parliament, doubts were expressed
regarding availability of compensation to the States and the draft Act was amended to remove the word
‘may’ and insert the word ‘shall’ in its place. He stated that it was a constitutional duty of the Centre to
compensate the States and not giving compensation to the States was harming the States, more so during
the Covid-19 pandemic.
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28.5 The Hon’ble Deputy Chief Minister of Gujarat thanked the Chairperson for finalizing and offering
two options to the States for handling the compensation shortfall, especially during the current Covid
scenario and the slowdown in the economy and when the revenues of both the Centre and the States had
fallen. He further stated that since all the recommendations of the States regarding the options provided
were considered by the Centre, such as reducing the assumed growth rate from 10% to 7%, interest payment
to be made from cess collections, the States would not be burdened by the borrowing. He further stated that
a decision should be taken soon, and the process be started immediately to enable the States to get the
amount as per the option chosen by them.

28.6 The Hon’ble Minister from Tamil Nadu stated that in the FY 2020-21, for the period till July 2020,
compensation of ₹4,258.94 crore is due to be paid to the State and it was a matter of grave urgency that the
GST compensation payments are made immediately to enable them to continue the battle against Covid-
19. He further stated that it is for the Centre to find the necessary funds to compensate the States if there
was a shortfall in the cess collection. He suggested a via media in the 41st meeting of the GST Council, that
the Centre could mobilize resources and borrow the funds required in the GST Compensation Fund. The
loan could be serviced through an extension of the GST cess for few years beyond 2021-22. He informed
that the Hon’ble Chief Minister of Tamil Nadu had written to the Hon’ble Prime Minister in this regard. He
further stated that in the last meeting held on 27.08.2020, the Centre had proposed two options in which an
artificial distinction was being drawn between GST implementation based losses and Covid induced losses.

28.7 He added that as per the note circulated earlier, under the operative Sections of the GST
Compensation Act 2017, the compensation is payable for the entire shortfall in revenue collection, even if
it is not on account of GST implementation. Further, this position had been clarified by the Attorney General
and was asserted by the Centre. It was also stated that the balance shortfall would be made good in the
subsequent years. He stated that even for the current financial year, partial release of compensation may be
done. He also stated that the States had pointed out in the meeting conducted by the Union Finance
Secretary, that the assumption of 10% normal growth in Option-1 was a highly unrealistic and unwarranted.
Instead, revenue gap of the States must be assessed based on the appropriate proportion of the total
anticipated loss this financial year under Option-1. He further stated that in such circumstances, given that
there are only limited options, his State chooses Option-1 with a hope that it would be reworked to reflect
the highest proportion of the actual loss in revenue.

28.8 The Hon’ble Minister from Madhya Pradesh thanked the Chairperson for considering the
suggestion of the State about reducing the assumed growth rate from 10% to 7%. He stated that under
Option-1, even after the State borrows Rs.4,500 crore, a further sum of about Rs.2295 crore would be due.
He stated that Madhya Pradesh had also suggested that after the period of cess collection is over, after the
payment of interest on borrowing, cess collections should be used for paying the pending compensation
amount before the principal on the borrowing is paid.

28.9 The Hon’ble Minister from Karnataka stated that there was a need to shift to the solution of the
problem, which is unprecedented and was never envisaged by the predecessors. He stated that the whole
country was in dire economic and health emergency. He further stated that the proposals brought before the
GST Council had further instilled the confidence among the States and showed the commitment of the
Centre and the Union Finance Ministry and now it is for the States to come forward to work towards the
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solution as enough discussion had taken place. He further requested the Chairperson to negotiate with RBI
for a special concession on interest and special period for extension of repayment. He further stated that if
the proposal did not go through because of the one issue of who should be borrowing, then there is a risk
of receiving no compensation for all the States.

28.10 The Hon’ble Chief Minister of Puducherry stated that he had sent a letter to the Hon’ble
Chairperson on 05.09.2020 in which he highlighted that it was the statutory obligation on the part of the
Centre to pay the GST compensation to the States and in case of any shortfall in compensation cess, it was
the responsibility of the Centre to borrow from the market and pay to the States. He stated that making the
States to borrow from the market was not agreed in previous GST Council Meetings namely, 7th, 8th and
10th. Without prejudice to the above proposal, only if all the States agree for the first option, Puducherry
also prefers first option but, unfortunately, a picture had been given in the note that Puducherry agreed for
the 1st option. The Hon’ble Chief Minister further stated when the Constitution (One Hundred and
First Amendment) Act 2016 was passed in the Parliament and thereafter implemented, the States had given
up their right to tax in view of the assurance given by the Centre to compensate the States for five years and
the autonomy of the States to tax had been taken away. Now that the States are reeling under severe
economic crisis as had been explained by other Hon’ble members, the compensation should be paid to the
State exchequer for meeting the Covid-19 challenges, and for fulfilling various liabilities and welfare
schemes for the people. He further stated that in the two options given by the GST Council, a growth rate
of 10%, further revised down to 7%, was assumed. A notional growth rate might not work for all the States
and the actual growth rate for each States should be taken, as different States have different growth rates.
He stated that apart from Ld. AGI’s opinion, the Constitutional obligation and statutory liability is on the
Centre, as the assurance was given by the then Chairman of the GST Council, on record in the minutes of
the meeting; that when there was a shortfall and when the cess was not accumulating, the Centre would go
for open market borrowing to compensate the States. He further stated that the Centre should go for market
borrowing as it was the liability of the Central Government to do it and it was much easier for them, and
the Centre should not tell the States to borrow. Further the Union Territories of Delhi and Puducherry would
face additional complexities also. He further stated that there had been a strong tradition of arriving at
consensus in the GST Council meetings under the then Chairman as well as the present Chairperson by
seeing the larger interest of the nation and the people of the country. He suggested that the Centre should
approach the RBI for borrowing and give the money to States as it was a much easier method than States
going for borrowing.

28.11 The Hon’ble Deputy Chief Minister of Tripura stated that he agreed with the view of the Hon’ble
Minister from Gujarat regarding being pragmatic and moving forward. He also agreed with the views of
the Hon’ble member from Karnataka that it was a practical solution that the loan would be repaid from the
cess collections of the extended period and it is important to get the fund in time. He requested the
Chairperson to initiate the opening of special window with the Reserve Bank of India, so that the States
who are willing to borrow could go ahead with the borrowing proposal.

28.12 The Hon’ble Minister from West Bengal stated that in the letter sent to the States it was mentioned
that it would be better for the States to borrow instead of the Centre because of the following: (i) Impact on
rating from credit agencies- He mentioned that the debt-to-GDP ratio, which is a benchmark used by credit
rating agencies, is arrived at by looking at the aggregate debt of the Centre and the States as a proportion
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of GDP. Hence, there would be no difference whether States or the Centre borrow. (ii) Increase in fiscal
deficit - He mentioned that the credit agencies would look at the fiscal deficits of the States as well as the
Centre. (iii) Macro-economic implications - He pointed out that the macro-economic implications would
be there for States as well as the Centre. He further stated that the Centre had a better headroom i.e. the
capacity to borrow and the States which were already mowed down in debt, did not have capacity to borrow.
He stated that the Centre can monetize its fiscal deficit while the States cannot. The Centre also had a special
window with the RBI, whereas the States do not have such a special window to borrow. He further stated
that the Centre would have an advantage of borrowing at G-sec rate whereas the States get a competitive
rate around 2% higher than the G-Sec rate. He stated that the State Bank of India’s report said that only 8
States had capacity to borrow, while the rest did not. He further mentioned that the Centre had sovereign
guarantee whereas the States do not, in the same manner in which the word ‘sovereign guarantee’ is used.
He mentioned that the artificial differentiation between Covid-19 and non-Covid-19 situation as delineated
in the borrowing options would not be possible as the Covid-19 situation was a reality.

28.13 The Hon’ble Minister from West Bengal further stated that history should be looked at, and that it
was Shri Arun Jaitley, then Leader of the Opposition who said on 20th December 2013 that the BJP did not
support GST because they did not trust the then Central Government to compensate the States. Further, on
18th February 2017, the then Secretary of the GST Council was asked why the Act should not clearly say
that the Parliament shall compensate in five years, instead of the present reading of the Act. The then
Secretary went on record to say that the Centre could raise resources by other means for compensation and
this could be recouped by continuation of cess beyond five years. He further mentioned that the Chairperson
stated on March 14th, 2020, that it was the solemn commitment to the States and the Centre is duty bound
to give compensation to the States. The Hon’ble Minister informed that when he was the Chairman of the
Empowered Committee, the States had given up 70% of taxing capacity under only one condition that the
Parliament shall compensate the States for a period of five years. He stated that a letter was sent from the
Hon’ble Chief Minister of West Bengal to the Hon’ble Prime Minister, saying the Centre should borrow
and the States would cooperate by extending the Cess so that the Centre does not have to pay anything on
its own apart from the cess collection irrespective of how long it would take. He further stated that the
options could have been given in advance. He said that both options specified that the States have to borrow.
In Option-1, with an artificial differentiation made where the interest and principal would be paid from the
cess collection. In Option-2, to borrow a sum of Rs. 2.5 lakh crore of estimated revenue loss where the
interest would be paid by the States from their resources. He appealed to the Chairperson that given the
Centre’s capacity to borrow and the headroom available to the Centre, the borrowing should not be done at
the cost of the States. He mentioned that the Reserve Bank of India has supposedly said that it was much
easier for the Centre to borrow. He concluded with a positive note that economy would pick up, as it was
seen in September 2020 revenue collection, and entire compensation can be paid from cess collection.

28.14 The Hon’ble Minister from Punjab stated that the State of Punjab lost 25% of its revenue base
which was subsumed when GST was launched and no other State would have lost so much of revenue. He
further stated that extending payment of compensation beyond the transition period was not permissible by
the law as on date. He referred to the opinion of the learned Attorney General which stated that the States
were entitled to receive full compensation during the transition period in accordance with the provisions of
the Act irrespective of the shortfall. As on date, there is no provision in the GST (Compensation to States)
Act 2017 for extending the period of five years for payment of compensation to States. He further mentioned
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that Section 8(1) of the Act would only entitle an extension with regard to period of the levy and collection
of cess beyond the period of five years for the payment of compensation to the States and this would not
permit the extension or deferment of the period of five years for the payment of compensation to the States.
He stated that in his opinion, it was only in the case where all the States together agree for a deferment or
extension with regard to payment of compensation to them, could one adopt such a course of action. He
stated that he had written to the Chairperson on the subject and wanted to know whether the compensation
law would be amended to provide compensation in the revised manner and if so, could this amendment be
retrospective starting from April 2020.

28.15 He further stated that the state of economy was not good, and the States’ fisc was stretched like
never before, and hence measures need to be taken to settle the past dues of compensations. He stated that
this would collectively match with the 25% of the revenue gap for the current year and hence the
compensation cess collected should be disbursed without any further delay. He further mentioned that the
Council could go ahead with the interim plan of borrowing for requirements up to December 2020 and by
that time, the proposals could be fine-tuned. He stated that the Centre was expanding the first part of
borrowing in Option-1 by another about Rs.13,000 crore with the provision of IGST settlement of 2017-18
providing additional revenue of Rs.13,000 crore. With GST picking up in September 2020 and cess crossing
Rs.7,000 crore and hopefully more in near future, there was not much left at stake to deny full compensation
as the gap could only be around Rs.60,000 crore. He suggested that a Group of Ministers may be formed
on the subject as the issue was too sensitive and had potential to become a precedent in settling
compensation issues in the future. He stated that in case the issue was not settled during the meeting, the
Council may activate the dispute resolution mechanism. He concluded saying that there were three issues
to be considered (i) whether the Council would go with the Ld. AGI’s opinion and amend the Act; (ii)
whether the dispute resolution mechanism could be activated and (iii) since the gap was only around
Rs.60,000 crore which could be handled by the Centre, a collective decision could be taken in this regard.
He stated that the spinoff in terms of morale for the business community and for the State governments
would far outweigh the sum of Rs.60,000 crore.

28.16 The Hon’ble Minister from Uttar Pradesh thanked the Chairperson for extending the cess
collection beyond five years and for reducing the assumed growth rate from 10% to 7%. He stated that the
Centre had not avoided any responsibility and had given assurance to give maximum facility to the States
in the form of the two options provided, among which the State of Uttar Pradesh had chosen Option-1. He
stated that since the Centre was taking responsibility and had given a suggestion, the States should agree to
it. He stated that his State would support the Centre in any decision it may take and further stated that with
the economic package announced by the Centre during the time of Covid, purchasing power of the people
has increased and economic performance of the State improved compared to last year. He stated that in
comparison to the revenue collection in the year 2019, the revenue collection in 2020 was better. He stated
that this improvement in economic performance was the result of the steps announced by the Centre from
time to time and he hoped that the same performance would continue in future. He further stated that the
Centre may consider two suggestions put forward by the State i.e. (i) a plan may be evolved regarding the
compensation till 2022 and (ii) more packages may be designed by the Centre so that purchasing power
may be increased and economic performance may be further strengthened. He thanked the Chairperson for
supporting the State and hoped that the support would continue in the future also.
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28.17 The Hon’ble Minister from Kerala stated that a written speech was circulated on 03.10.2020 to all
the Members of the Council and it be taken as read. One of the main concerns expressed by the States was
that the revenue loss which may occur when the taxing powers of States get subsumed, and when the
taxation system changes from origin-based to destination-based. The issue of GST compensation was
discussed in the Empowered Committee meetings held on 14th June and 26th July 2016. The States had
unanimously agreed that the compensation should be paid in full for a period of five years. The Union
Finance Minister, who was appreciative of the concerns of the States, assured the Empowered Committee
that the Centre is committed to give full compensation for a period of five years. The States were assured
of compensation by the Central Government and it was incorporated in the Constitution (One Hundred and
One Amendment) Act 2016, and further to allay the fears it was mandated that “Parliament shall, by law”
provide for compensation, instead of “may”. It cannot be denied that compensation package and the comfort
it provided to the states was the clincher in implementing GST across the country. He added that during the
discussions in the 5th meeting of the GST Council held on 2nd/3rd December 2016, the 7th meeting of the
GST Council held on 22nd/ 23rd December 2016 and the 8th meeting of the GST Council held on 3rd/
4thJanuary 2017, the relationship between compensation and Compensation Cess was extensively discussed.
It could be seen from the Minutes of the Council meetings that the States were assured that compensation
to States will not be restricted to the compensation Cess collected. It was after much deliberation that 14
per cent growth was guaranteed to the states. The widening of the Compensation deficit had become evident
much before COVID with the decline in GDP growth rate during 2019-20, so much so that in the 37th
meeting of the GST Council at Goa, the Chairman, Fifteenth Union Finance Commission, while addressing
the Council, pleaded to the States to re-visit the Compensation formula, saying that the growth at 14 per
cent was unsustainable in the macroeconomic scenario that prevailed in the country. All States had then
rejected the proposal.

28.18 The Hon’ble Minister of Kerala further stated that in the 41st meeting of GST Council, the States
presented their views, while the Centre discussed the opinion of Attorney General and placed before the
States two options of borrowing. In such circumstances, if it is difficult to arrive at a consensus, the legal
provisions for Dispute Resolution Mechanism within the Council may be activated. It appears that measures
taken by the Centre seem to have impact on State resources as cesses are kept outside the divisible pool,
the States are being given only 32% of the Centre’s resources against the promised 42%. He also raised the
issue of proper management of IGST and compensation accounts. He quoted the example of the Central
Government appropriating a sum of Rs.88,344.22 crores in 2017-18 and Rs.13944 crores in 2018-19 from
IGST account by crediting it to the Consolidated Fund of India. He also mentioned about amendment in
the GST Act for petroleum products to be brought into GST. Further, the long-standing demand of the
States to appoint a Vice-Chairperson to the GST Council may be considered and implemented at the earliest.
He stated that there were two principles on which the State would not compromise -. (1) that full
compensation had to be paid as it was a Constitutional right of the States and (2) if a borrowing is required,
it could not be part of the normal borrowing of the States or the additional borrowing of the States which
was already permitted. Option-2 did not meet these conditions. With the current proposal, these principles
were not upheld. He drew attention to the statement made by the Union Finance Minister two days after the
last GST Council meeting, wherein she assured that as a commitment of the Centre, full compensation
would be paid to the States.
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28.19 The Hon’ble Minister of Kerala further stated that there were four issues which needed to be
discussed. (1) the issue of how much compensation would be paid now and how much to be deferred, (2)
the issue of who should be borrowing, the States or Centre or both, (3) what would be the terms and
conditions of borrowing, and (4) the issue of repayment. He stated that the issue of repayment was already
settled. He stated that he was happy with the statement of the Secretary that the full compensation would
be paid. He further stated that he believed that the Council as a federal institution must be strengthened and
that all the members must strive to have a professional approach to decision making and must compromise
to develop a consensus. He stated that he agreed with the view expressed by the Hon’ble Member from
West Bengal that within the Council, a professional approach should be taken. He stated that as the Hon’ble
Member from Punjab stated, with an additional sum of Rs.60,000 crore, entire compensation could be paid
for the year. He stated that the issue was that a concept of distinction was made suddenly, between loss
incurred due to implementation of GST and due to other causes, which was never thought while preparing
the GST Act. He stated that the definition of the compensation and calculation of compensation was
elaborately mentioned in the Act itself, without any reference to any other factor such as act of nature, act
of God, and origin of the loss. He stated that even if one accepts this concept of differentiation between the
causes, it was all the more important that the compensation should be paid immediately since Covid had
already come and the impact was being felt at present and the shortfall must be made good immediately.
He stated that it would not make much sense macro-economically to compensate at a future date, for the
revenue loss during a recession. He stated that even with the differentiation, since the Covid impact was at
present, the loss of revenue was at present, the States should be compensated at present. He further stated
that regarding the question of who should borrow this amount, he would agree with the view of the Hon’ble
Members from West Bengal and Chhattisgarh that there would not be any difference whether the States
borrow or the Centre borrows. He stated that it would be much easier and convenient for the Centre to
borrow as the Centre would get much better terms and a window for monetizing the debt. He stated that as
the compensation requirement would be different for each State, there could not be same rule for all and
that the additional borrowing would have to be tweaked which was an ex-post outcome. He stated that it
would be much more convenient for the Centre, when looked at rationally.

28.20 He stated that with regards to the Ld. AGI’s opinion that it cannot be paid from the Consolidated
Fund, when undistributed IGST fund was not just parked in the Consolidated Fund but was appropriated
into the Consolidated Fund, there could be no argument that the Centre cannot borrow to make good the
shortfall in compensation to the States. He stated this view goes against the history of discussions held in
the Council, Empowered Committee and the Parliament, yet, a discussion should be held regarding how
much the Centre should borrow and how much should the States borrow and arrive at a consensus. He
stated that regarding the terms and conditions, since it was already decided that the repayment was to be
made from the extended cess collection and the interest also to be paid from the same, the whole 2%
additional borrowing could be made unconditional as few States would find it very difficult to implement
the condition regarding direct benefit transfer in electricity sector. He stated that in case this was not
acceptable, a dispute resolution mechanism be made active and the issue may be referred to the same as it
would only show the maturity of the Council in working to arrive at a consensus.

28.21 The Hon’ble Minister from Telangana stated that the distinction of loss of revenue on account of
implementation of GST and of Covid was artificial. He further stated that it was the Constitutional right of
the State to get the entire shortfall. He stated that compensation payment should not be linked to normal or
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additional borrowing which is permitted to States under the Aatma Nirbhar Package. He stated that the
Centre should borrow entire shortfall which could be serviced from the cess collected beyond 2022 and
Centre need not pay anything from its kitty. He further requested that the cess collected in the last six
months, which was readily available with the Council to the tune of about Rs.30,000 crore, may be paid to
the States immediately to provide relief to the States during the time of Covid.

28.22 The Hon’ble Deputy Chief Minister of Delhi stated that when the States surrendered their right to
tax, it was assured to them by the then Chairman, GST Council that the States would be compensated for
five years with an assured growth rate of 14%. He stated that ideal situation was for the Centre to borrow
and compensate entire shortfall to be recouped by the Cess collection beyond 2022. He stated that it would
not be proper to divide the shortfall into two categories of Act of God situation and due to implementation
of GST. He stated that when the borrowing options were provided, the Union Territories with legislature
were effectively provided with only one option, which was Option-1. He stated that the NCT of Delhi was
compelled to accept Option-1. He stated that in the detailed agenda note (volume-5), Agenda Item 9A (3)
(V) it was said that in respect of Union Territories (including National Capital Territory), suitable
arrangements to ensure flow of resources under the Special Window to them would be made by the
Government of India. He requested that it may be clarified whether the Ministry of Home Affairs (MHA)
had been kept in loop while deciding the above arrangement for Union Territories with Legislature because
it would not be possible without MHA’s approval. He further stated that it was mentioned in Agenda Item
9A (3) (XI) that the remaining arrears of compensation accrued during the transition period would be paid
after the interest and principal are paid. He sought clarification as to whether this would mean that the
remaining part of Rs.1.35 lakh crore would be given to the States after 2022. He further stated that assumed
growth rate of 7% was calculated based on two year average, instead it would have been better to be based
on last year’s revenue growth rate which was around 2.8% to 3.0%.

28.23 The Hon’ble Minister from Assam stated that the Centre had committed at the time of
implementation of GST that the Council would compensate the States for the revenue loss due to the
implementation of GST. He stated that as per Section 18 of the Constitution (One Hundred and
First Amendment) Act 2016 the shortfall due to implementation of GST was to be compensated, the Centre
was helping the States even though the Central Government is also facing several such challenges. He stated
that the Central Government was also facing the Covid-19 crisis as the States did and that the entire
vaccination program had been taken over by the Centre which would involve expenditure of huge amount.
This is in addition to the handling of the situation at Ladakh. He stated that this was the time to strengthen
the hands of the Centre rather than having difference of opinion. He further stated that the assurances about
the principal amount, the guarantor, the extension of cess period and no limitation on the borrowing of the
States, secure the interests of States. He further stated that the Centre had been standing by the States in
disbursing the Compensation amount, devolution amount and the revenue grants even though similar
situation is being faced by the Centre.

28.24 He further stated that the country was just recovering from the economic slowdown and the Centre
may be complimented for the GST revenue collection in the month of September 2020. Reacting to the
proposal of creating the dispute resolution mechanism within GST Council, he stated that Assam along
with around 21 other States had no dispute with the Centre. He also stated that the States were in immediate
need of revenue and the dispute resolution mechanism is not a priority as on date. He stated that the Centre
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had already taken the views of all the States and had generously assured the States of full compensation for
the revenue including the loss of revenue on account of Covid. He also stated that the 21 States which had
chosen Option-1, may be allowed to go ahead with the borrowing, irrespective of other States not joining,
as the revenue is needed immediately for the welfare of the people. He sought to place on record his deep
appreciation to the Union Government, the Hon’ble Prime Minister, the Hon’ble Union Finance Minister
and the Hon’ble Minister of State (Finance) for the kind of help and support extended to the States in the
present hour of crisis.

28.25 The Hon’ble Minister from Andhra Pradesh stated that he would like to reiterate certain facts. He
stated that taxation was an integral part of governance and administration. He stated that from the revised
estimates, an approximate amount of Rs.67 lakh crore was spent in total (about Rs.27 lakh crore of the
Union and Rs.40 lakh crore was spent by all the States). If the defence expenditure of around Rs.4,67,000
crore was deducted, along with paramilitary related expenditure, an expenditure of 7% would be reduced.
It would mean that the States spend about 64% and the Centre about 36% of the total expenditure towards
services, subsidies, welfare and administrative expenditure which directly concerns the common man. He
further stated that regarding the taxes that are collected, which form part of the divisible pool, the cesses
and surcharges in the year 2018-19 was around Rs.2,65,000 crore which had seen a steep increase in 2019-
20 to about Rs.6 lakh crore which was directly reflected on the divisible pool which otherwise would have
been automatically been part of the State revenues. In the year 2018-19 the divisible pool was around Rs.18
lakh crore whereas in 2019-20 (R.E), the divisible pool was reduced to Rs.15 lakh crore. This had a direct
bearing on the revenues of the States. In 2018-19, Rs.7,61,000 crore was the share of the States taxes which
had come down to Rs.6,50,000 crore in 2019-20. He stated that the Cesses and Surcharges had become the
major portion of total taxation which was reflecting on the divisible pool and on the taxes transferred to the
States.

28.26 He stated that in this scenario, where the States had far more direct responsibilities for governance
and administration, it was requested that certain decisions may be taken which would have a bearing on the
revenues of the States such as (i) the assumed growth rate of 7% may be reviewed further in a scientific
manner because there was slowdown in the country’s economy and global economy even before Covid (ii)
de-linking of the 2% additional borrowing facility which was provided to the States as part of Aatma
Nirbhar Package and (iii) the priority order for repayment to be changed to from interest first, principal next
and arrears of compensation later to arrears of compensation being the first charge, interest as the second
charge and the repayment of principal as the third charge. He further stated that with regards to borrowing,
the Centre was more empowered and appropriate to borrow or to raise the money of around Rs.1 lakh crore
required as the Centre had the facility to coordinate with RBI to do the needful.

28.27 The Hon’ble Minister from Arunachal Pradesh stated that he agreed with the views of the member
from Assam and chooses Option-1. He thanked the Centre for confirming that the interest would be repaid
from the compensation cess.

28.28 The Hon’ble Member from Jammu and Kashmir stated that they would opt for Option-1 and were
in favour of utilizing the borrowing mechanism that was proposed, as early as possible, to enable the Union
Territory to deal with the situation that was prevailing. He further requested that the compensation cess
collected till September 2020 may be released at the earliest possible.
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29. The Hon’ble Minister from Goa thanked the Hon’ble Chairperson for taking the problems being
faced by States, into consideration. He stated that after 21 States had already chosen Option-1, it could have
been put to a voting and done away with, but the Hon’ble Chairperson had not done so. He stated that a
good formula had been devised. He stated that with the new initiatives on invoice matching, detecting tax
fraud, plugging leakages of revenue, the revenue was bound to increase. He stated that in spite of the
pandemic, revenue was on a march to recovery as evidenced in the recent GST collection. He further stated
that right path had already been chosen by the Hon’ble Chairperson by allowing the cess to continue beyond
5 years to cover the entire borrowing and interest, by putting no additional burden on the States, making
available the borrowing, window through the RBI or such facility as created by the Centre and the States
not to be penalized for borrowing more.

29.1 He further stated that as he had suggested in the last GST Council meeting, Cess should be
increased on cigarettes, bidis and tobacco related products. He stated that the World Health Organization
recommends that the total taxation should represent at least 75% of the retail price where as it was only
49.5% for cigarettes, 63.7% for smokeless tobacco and 22% for bidis at present. In the name of common
man, bidis are taxed on the lower side, but they should also consider the suffering of poor people, because
of the impact on the health and subsequent economic costs involved. He stated that cess should be charged
on these products as was suggested by scientific data. He stated that according to his calculation an amount
of Rs.49,000-50,000 crore could be raised with minimum increase in the rate of cess so that the burden of
loan on the States and the Centre would be reduced. He further stated that around Rs.1,04,500 crore i.e.
1.16% of the GDP was spent on treatment for ailments of tobacco use in 2011 and it could be further more
at present. He stated that the Council need not be subjected to allegations that it was protecting the tobacco
industry and all the members of the Council should support this proposal as these products were harmful to
the health and were deteriorating the health of the common man in the form of bidis, and of the rich in the
form of smokeless, e-cigarettes. He further stated that people from tobacco industry had given a calculation
with much reluctance that even with just one rupee increase per stick, the revenue gain would be around
Rs. 50,000 crore.

29.2 He further requested that a sum of around Rs.7000 crore collected at present along with the balance
of Rs.15,000 crore collected, not released to the States should be released to the States without further delay.
He suggested that since smaller States like Himachal Pradesh, Goa and North Eastern States require smaller
amounts, and that it should be decided by consensus that smaller States, which require small amounts, may
be released compensation without any delay. He stated that with an early disbursal, the funds could have
been utilized in building tourism infrastructure, which would have resulted in a greater influx of tourists,
more earnings of foreign exchange through foreign tourists, more indirect tax collection through GST and
revenue would have risen. He stated that the smaller States deserved an extra consideration and he hoped
this would happen. He stated that it was not the case that the Centre had money and holding it back and not
giving to the States and that the problem was being faced by the States and Centre alike.

29.3 The Hon’ble Deputy Chief Minister of Haryana stated that his State opted for Option-1 as stated in
the Annexure. He further requested the Council that the cess collection which had been accumulated with
the Centre as on date to the tune of Rs.28,000 - 29,000 crore should be released as soon as possible with a
set timeline so that the States start getting funds and a timeline should be set for the repayment of interest
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and arrears to the States. Further, as per Agenda Item 9, a timeline regarding extension of cess whether for
three or five years must also be decided by the Council so that the interests of States are safeguarded.

29.4 The Hon’ble Deputy Chief Minister of Bihar thanked the Chairperson for giving two options to the
States and given the circumstances, these were the best options that the Centre could give. He further stated
all States were in need of money since compensation was not available for the last six months and since 20
States had already opted for Option-1, the process regarding the borrowing may be started at least for these
States. He further requested that the States, who had not given an option yet, may be given sufficient time
to choose but the process should start for others sothat the States who had opted for option 1 may start
getting the required money by November. He further stated that the Council should deliberate and list out
goods which can possibly be subjected to compensation cess. He stated that similar to raising compensation
cess on cigarettes and tobacco products as suggested by the Hon’ble Member from Goa, there was a need
to consider a change of tax structure on Pan Masala also as regularly suggested by the Hon’ble Member
from Uttar Pradesh. He stated that an Officers Committee may be made to deal with the issues of identifying
products which can be subjected to cess and the products on which cess already exists but it can be raised.
He stated that the States were already reeling under severe economic pressure and the process for borrowing
may be started at the earliest. He further stated that regarding the dispute resolution authority, he was the
Chairman of the Empowered Committee and that the Standing Committee and perhaps even the Parliament
had already rejected that proposal since the States are sovereign and no other authority or tribunal could
direct them in these matters. He stated that if a dispute arises, or if there was a difference of opinions, the
Council already had the mechanism of constituting Groups of Ministers (GoMs) to deal with those issues
and had already constituted 11 such GoMs so far which were successful in dealing with the issues referred
to them.

29.5 The Hon’ble Minister from Himachal Pradesh thanked the Centre for taking many steps to stabilize
the economy and agreed with the views as put forward by Hon’ble Members from Assam, Bihar and
Gujarat. He stated that he welcomed the options given for payment of compensation cess and the unanimous
decision of the Council to extend the compensation cess beyond July 2022 so that the burden of the
repayment, interest shall not fall on the States. He further stated that similar to many other States, Himachal
Pradesh also opted for Option-1, and requested that an early borrowing may be facilitated by the Centre at
G-sec rates.

29.6 Since the Hon’ble Minister from Jharkhand could not attend the meeting, the representative officer
from Jharkhand put forward the State’s view. She stated that the Hon’ble Member from Jharkhand and the
Hon’ble Chief Minister of the State had already sent written communication that neither of the two options
as communicated was acceptable and that it was the Centre’s responsibility to go for borrowing and transfer
the entire compensation to the States and that the Centre should raise the required funds as a loan lending
it to the GST Compensation Fund against the future receipts of the cess beyond 2022. She further requested
that the existing funds which had been collected already may be released to the States as soon as possible.

29.7 The Hon’ble Minister from Uttar Pradesh stated that he welcomed the statement of the Hon’ble
Member from Bihar. He further stated that he had raised three issues of Pan masala, brick kilns, and Mentha
oil earlier also. He stated that with regards to menthe oil, which was specific to his States, there was an
outgo of Rs.400 crore for which no tax was collected in return. He stated that a GoM may be convened to
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deal with the issues of Pan masala and brick kilns and said that he was ready to take responsibility in GoM
in whichever capacity assigned to him. He stated that there was a loss of revenue of Rs.2000 crore in these
issues and thus they may be decided at the earliest. He further stated that there was a significant evasion of
tax in these sectors and that in their single initiative they were able to uncover a loss of Rs.738 crore and
recover the same. He stated that these could be good sources of revenue. He stated that before GST, in
2015-16, around Rs.500 crore tax had been collected in brick kilns and at present, it was reduced to less
than Rs.100 crore and thus a decision should be taken at the earliest. He further stated that the problems in
Mentha would also be eliminated if Reverse Charge Mechanism (RCM), in which the buyer who purchases
from the farmer at the first instance would pay the tax, was implemented. He stated that the State was
already doing better at tax collection, compared to last year’s collection, and hoped to continue the
performance with the support of the Centre.

29.8 The Secretary stated that the issues of pan masala, brick kilns, mentha oil and casinos were already
discussed earlier and if time permitted, a presentation regarding the same could be made, so that the Council
can be made aware of the issues involved, then the Council could guide how to move further.

29.9 The Hon’ble Deputy Chief Minister of Gujarat stated that a scheme of Reverse Charge Mechanism
already existed in Cotton in Gujarat, where lakhs of farmers sell cotton and the dealers who purchase the
cotton to make cotton bales, make the payment of tax. Similar RCM mechanism may be employed as
suggested by Hon’ble Member from Uttar Pradesh. He further stated that a constitution of GoM may not
be required as the issue only pertains to Uttar Pradesh which had been raising the issue from a long time.

29.10 The Secretary stated that based on the suggestions given on all these four issues, a Group of
Ministers may be formed to discuss and analyze the issues: Capacity based taxation on Pan Masala, Reverse
Charge Mechanism in mentha oil, brick kilns, taxation in casinos and with respect to lotteries.

29.11 The Hon’ble Minister from Karnataka stated that the issue of horse racing also may be referred to
the proposed Group of Minister and the Chairperson assured the same.

29.12 The Hon’ble Minister from Odisha stated that the issue of whether the liquor was food or not should
be decided. He further stated that the issue is not pending in any court and would not be sub-judice to
decide. The Hon’ble Chairperson had assured him to take the matter in the next GST Council meeting, but
unfortunately, the same was not brought today, and requested to include this matter with issues of Pan
Masala etc, and requested that the issue may be taken at the next meeting of the GST Council. The Hon’ble
Chairperson assured the same.

29.13 The Hon’ble Chairperson stated that few members raised the point about the available cess amount
and she assured that the Centre is committed to disburse the money to the States. She further stated that
because of the lockdown, there was no substantial collection of the Cess till August 2020 but at present,
there was around Rs.20,000 crore which would be distributed by late that evening. The Hon’ble Members
from Gujarat, Karnataka, Uttar Pradesh, Madhya Pradesh, Puducherry thanked the Hon’ble Chairperson.

29.14 The Hon’ble Chairperson reiterated that the cess collection would be disbursed immediately and
the amount of excess compensation cess credited to the Consolidated Fund was also being reversed and that
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was how the compensation of around Rs.1,60,000 crore was given to the States, despite the collection being
around Rs.96,000 crore in the previous year. She stated that she was aware of the difficult times the Centre
and the States were facing and that the actual fight against Covid was being undertaken by the States. She
stated that since she took charge, with due process, she had given time to address all the long pending issues.
She thanked all the members of the Council for being positive in solving the three problems. She further
stated that she was always willing to hear any views of the members whether it was suggestions or criticism
and that she never hurried through when a member wants to put his point of view forward. The Hon’ble
Chairperson further stated that she was not in favour of any code of conduct for the members as each
member was a senior and experienced leader managing their States even during the current challenging
times.
29.15 The Secretary, GST Council stated that borrowing program was discussed with the Secretary,
Department of Expenditure and Secretary, Department of Economic Affairs who were in touch with the
banks. He further stated that since Agenda Item 9 was approved, procedural formalities could be started
within the next two days and that other States which had not exercised their options could also take a
decision within the next two days. He stated that the Reserve Bank desired a borrowing calendar so that
they can plan the logistics and go to the market and arrange for the money.

29.16 The Hon’ble Minister from Kerala stated that this went against the spirit that the Hon’ble
Chairperson had just espoused. He stated that he welcomed the remarks of the Hon’ble Chairperson about
Council being an open forum, and not making a code of conduct for Members. He disputed that Option-1
was the decision of the Council. He stated that he had mentioned earlier that both the options were
unacceptable and along with the reasons and that he also said that they could have a discussion and possible
to arrive at an alternative. The Council had not decided Option-1 as its final decision.

29.17 The Hon’ble Chief Minister of Puducherry stated that regarding Agenda Item 9A, some States had
expressed that the Central Government had to borrow and give the compensation to the States and some
States said they preferred Option-1, and thus there was no consensus regarding the Agenda Item 9A. He
stated that since there was a division, the Hon’ble Chairperson had to arrive at a consensus before coming
to a conclusion. He stated that he made his position clear that his State did not agree with Option-1.

29.18 The Hon’ble Minister from Chhattisgarh stated that he was in agreement with the view of the
Hon’ble Member from Puducherry. If it had been decided as Option-1, he was making it clear that his State
had not agreed with either of the options.

29.19 The Hon’ble Minister from West Bengal stated that along with Option-1 and Option-2 there was
also a third Option which the Hon’ble Chief Minister of West Bengal had written to the Hon’ble Prime
Minister, and as reiterated by the Hon’ble Members from Puducherry and the Hon’ble Member from
Chhattisgarh agreeing to it i.e. for the Union Government to borrow from the RBI window and crediting
the amount to the Compensation Cess Fund for further disbursal to the States. So there were three Options
on the table. He stated that the Council should come to a conclusion and if there was a difference, more
discussion could be held in next few days to arrive at a consensus.

29.20 The Hon’ble Minister from Punjab reiterated his remark about whether the law would be amended
as he regarded that the options provided were not in accordance with law. He further mentioned that the
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Article 279A (11) of the constitution provided a dispute resolution mechanism and that it could be activated.
He further stated that if there was no consensus, a division could be called. The Hon’ble Member from
Chhattisgarh also supported a division.

29.21 The Hon’ble Deputy Chief Minister of Gujarat stated that the matter which was being discussed
was of immense importance for the States. He stated that the first priority was how to get the fund at the
earliest. He further mentioned that as the Hon’ble Member from Karnataka and the Hon’ble Member from
Assam discussed that once money was received, there would be spurt in economic activities. It was already
stated by the Secretary to the Council, if they get approval, they would start the process of availing loan
from tomorrow itself. He further stated that any delay would only hurt the States and not the Centre as the
States were facing the shortfall of fund and their schemes were not working and requested all the members
to choose Option-1 and start the borrowing procedure at the earliest. He stated that there was never a
division in the GST Council earlier and it would not be appropriate to go for voting or division.

29.22 The Hon’ble Minister from West Bengal stated that his State was unable to accept Option-1 and if
the Hon’ble Chairperson was not convinced, the Hon’ble Chairperson may call for division.

29.23 The Hon’ble Member from Assam stated that his State had chosen Option-1 and he was not in a
position to accept any other alternative. He made request that proceedings should start for the States who
had already chosen option-1, as they were in immediate need of money.

29.24 The Hon’ble Minister from Karnataka stated that the States should come to a practical solution that
having the money at present was more important than receiving after six months by which time lot of
damage would have been done to the people and the economy. He requested the Hon’ble Chairperson to
state the sense of the house and take a call, stating the Consensus of the House.

29.25 The Hon’ble Minister from Chhattisgarh requested that the Chairperson may take more time to
achieve consensus as voting was not preferred by the States and if unfortunately consensus was not
forthcoming, tenets of the GST Act must be adhered to and a voting may be called where 75% or more
members vote for a particular issue.

29.26 The Hon’ble Deputy Chief Minister of Bihar stated that he failed to understand the opposition when
the Centre was guaranteeing in a way and making arrangements for borrowing, the States were not
burdened. He stated that this issue about who should go for borrowing might go on but in the process, States
which were in immediate need of money would suffer. He stated that another 5 days’ time may be given
and a meeting of the Council could be called next week and if the issue was unresolved, if required voting
should be resorted to, for as was done in deciding the lottery issue. He pleaded that it may either be decided
today or latest in next meeting. It should not be prolonged and States could not be deprived of funds. He
stated that some States could not veto when most other States suffer because of unavailability of funds.

29.27 The Hon’ble Minister from Uttarakhand stated that he welcomed the proposal under Agenda Item
9A and the State had opted for Option-1.
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29.28 The representative Officer from Rajasthan stated the State was in favour of Option-3 where the
Centre would borrow and disburse the amount to the States.

29.29 The Hon’ble Minister from Kerala stated that he had earlier requested that there should be a
compromise and a new formula could be arrived at within the broad contours he suggested earlier.

29.30 The Hon’ble Chairperson stated that she heard all the Hon’ble members, had been rightly reminded
that there should be consensus in decision making. Therefore, upholding the tradition of the Council and
going by the suggestion of the Hon’ble Member from Bihar, she proposed to hold another meeting on 12th
October 2020. She was open to have another round of discussions on 12th October 2020 and then they would
take a call that day. She further reiterated that States were on the forefront of fighting Covid, she had cleared
disbursement to the States as soon as resources were available whether it was GST compensation or
devolution in terms of Finance Commission’s recommendation.

The meeting on 5th October 2020 ended with thanks to the Chair.
Agenda Item 9A: GST compensation options – ways of meeting the shortfall as discussed on 12th
October, 2020.
30. The 42nd meeting of the GST Council resumed on 12th October 2020 with the Secretary of the GST
Council welcoming the Hon’ble Union Finance Minister, the Chief Minister, the Union Minister of State
(Finance), the Deputy Chief Ministers, and all the Hon’ble Members of the Council to the Council meeting.

31. The Secretary submitted to the Council that Agenda Item No.9 for ‘Continuation of cess beyond
transition period’ had been approved, and Agenda Item No.9A ‘GST Compensation Options – Ways of
meeting the Shortfall’ was under discussion. He requested the Chairperson to allow resumption of
discussion on the said Agenda Item. He asked the Joint Secretary, DoR, to initiate with a brief recap.
32. The JS, DoR stated that the States had been given two options. 23 States / UTs had opted for Option-
1, whereas no State had opted for Option-2 and 8 States had reservations against either of the two Options,
the details of which are given in Annexure to the Agenda.

33. The Secretary stated that the details of the option one were communicated to the States by the
Department of Expenditure, Ministry of Finance, Government of India. After the options were
communicated by the Department of Expenditure to the States, there was a meeting held by him as the
Finance Secretary, with the Expenditure Secretary and Finance Secretaries of the States and certain
suggestions were received and thereafter various suggestions had also been being received from the
States. He added that the Department of Expenditure examined all the suggestions in detail and agreed
to modify Option-1, under which the entire Rs.97,000 crore shortfall was calculated assuming GST growth
rate of 10%, but States had suggested that the real growth could be in the range of 7% to 8% depending
upon the State so the assumed growth rate was reduced to 7% which meant amount to be borrowed under
Option-1, would now become Rs.1.1 Lakh crore instead of Rs.97,000 crore.
34. On the question of as to how this entire debt would be serviced, the Secretary, stated that with the
approval of Agenda Item 9, the cess had already been extended beyond June 2022. He stated that the
Department of Expenditure had communicated to them, that the interest on the borrowing under the Special
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Window would be paid from the Cess as and when it arises until the end of the transition period. After the
transition period, principal and interest would also be paid from proceeds of the Cess, by extending the
Cess beyond the transition period. However, as per discussions, it is now decided that at first stage, cess
collected would be used for paying the interest and at the second stage, it will be used for repaying the
principal and the remaining part would be used for meeting the remaining arrears of compensation. The
Secretary submitted that this was the main item for discussion that had been communicated from the
Department of Expenditure and requested the Hon’ble Members of the Council to express their views on
the Agenda Item.
35. The Hon’ble Minister from Madhya Pradesh thanked the Hon’ble Finance Minister for announcing
the special package. He stated that he was glad that Central Government had positively considered the
Option-1 in respect of compensation cess and also considered the other two suggestions given by Madhya
Pradesh State. Now, his State could borrow Rs.4,542 crores instead of Rs.4,056 crores under the special
facilitation provisions of Central Government and RBI, which they could use for the development work of
the State. He added that in last meeting, he also requested that when Central Government was pondering
over the options of compensation cess so seriously and had also received the support of majority of States
then remaining States should also think over it positively so that some solution could be arrived at, and
amount is made available to the States so that the same could be utilized in the second half of this Financial
Year.

35.1 The Hon’ble Chief Minister of Puducherry thanked the Hon’ble Chairperson for postponing the
meeting so as to arrive at consensus on the issue of Agenda Item 9A. He stated that the issue was discussed
in the previous two meetings and Hon’ble Chairperson was kind enough to hear views of all Hon’ble
Members. Who would be borrowing and how it would be paid was elaborately discussed along with the
learned AGI’s view and also the views taken by various States. The points he liked to raise were the
decisions that had been taken in previous meetings of the GST Council and the assurance that had been
given by then Hon’ble Union Finance Minister, Late Shri Arun Jaitley that the Government of India would
borrow and give to the States and whenever there would be short fall of compensation Cess, it would be
honoured and implemented. How to implement this decision was the issue which the Hon’ble Members
had to decide.

35.2 He added that from point of view of Puducherry, GST, especially the commercial tax, was one of
the main components of their revenue. He mentioned that they are a small State and the taxation power
which was there with the States, had been surrendered to the GST Council on certain conditions and certain
assurances. Now, the State Governments would lose their revenue because of various factors including the
tax equalisation which had affected his State very badly and also due to COVID-19 pandemic situation.
The financial position of the State was in a very bad condition and they were not able to meet day to day
expenses of the Government on various schemes, projects, and towards salary of Government employees.
He requested the Hon’ble Chairperson that the borrowing from the open market or from RBI or issuance of
Gold Bond was very easy for the Government of India to do instead of the State Governments doing it.
Apart from that, his State had another difficulty as they were a Union Territory with legislature. Whenever
they wanted to borrow, they had to approach through the Home Ministry, Government of India. Unless the
Home Ministry concurs and the Finance Ministry gives the nod, it would be difficult for Puducherry to
borrow.
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35.3 He stated that they were grateful to the Hon’ble Chairperson who was hearing the views of the
Hon’ble Members of the Council and trying to arrive at a solution. He requested that the disputes had to be
resolved by give and take, all States had to agree because of present critical financial position in various
States. Therefore, he requested the Government of India to borrow and pass it on to States and all problems
associated with State borrowing such as State Governments approaching RBI, going to open market, in
their case, State going to the Home Ministry, could be resolved. Borrowing by the Government of India
would be very easy vis-à-vis State Government doing it because without the permission of the Government
of India, the State Governments cannot borrow and therefore he wanted easy route to be followed. He
requested the Hon’ble Chairperson to consider the third option proposed by the Hon’ble Finance Minister
of West Bengal i.e. the Govt of India to borrow and give it to States.

35.4 The Hon’ble Minister from Assam congratulated the Hon’ble Union Finance Minister for declaring
so many benefits for States in continuation to what had already been done for them. He stated that, in the
last meeting held on 5th Oct 2020 also they had discussed this GST Compensation options issue at length
and 23 States had already chosen the option. The Department of Expenditure had already deliberated the
issue and States would be borrowing as it would be repaid by the Central Government out of the collection
of the Cess. The mechanism of borrowing is being handled by the Department of Expenditure of
Government of India and as the provisions of the Article 293 of the Constitution, the options have been
worked out. The GST Council has jurisdiction to extend the levy of cess to compensate for shortfall in the
compensation and in the last GST Council meeting held on 5th October, the GST Council exercised its
authority to extend the levy of cess beyond June 2022. That decision was actually taken to ensure the States
would get full compensation with respect to any shortfall in comparison to the projected revenue growth of
14%.

35.5 He was of the opinion that, so far as the borrowing was concerned, it was the decision of the
individual State and the Centre in accordance with the Article 293 of the Constitution of India and he was
of the opinion that it will fall outside the jurisdiction of the GST Council. As a matter of respect, the Central
Govt. had brought this issue to the GST Council for information that in case of shortfall, one could go for
borrowing under various options but it would not be ultimately decided by the GST Council. This decision
had to be taken under the Article 293 by the Government of India independent of any decision which would
be arrived at in the GST Council. He said over and above this, the Chairperson offered that if they had any
immediate requirement of funds, they could approach the Central Govt. under Article 293 and choose from
the options provided. He said the 23 States that have preferred Option-1 needed immediate funds and they
could discuss under Article 293 with the Department of Expenditure, Government of India on borrowing
and the GST Council need not discuss about borrowing which was not their mandate.

35.6 The Hon’ble Minister from Chhattisgarh thanked the Hon’ble Chairperson for allowing this
discussion to continue and allowing them all to make an honest and concerted effort to come to a consensus
and not get into options of division or voting and also thanked her for whatever releases had been done so
far. He quoted para.6.3 of the Minutes of the 10th meeting of the GST Council held on 18th February 2017
wherein it is stated that:
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“The Hon'ble Minister from Telangana stated that the Compensation Law should provide that if money fell
short in the Compensation Fund, it could be raised from other sources. The Secretary stated that Section
8(1) of the draft Compensation Law provided that cess could be collected for a period of five years or such
period as may be prescribed on the recommendation of the Council. He stated that this implied that the
Central Government could raise resources by other means for compensation and this could be then
recouped by continuation of cess beyond five years. He stated that the other decisions including the
possibility of market borrowing for payment of compensation was part of the Minutes of the Meeting of the
Council (held on 3rd and 4th January 2017) and need not be incorporated in the Law. The Council agreed
to this suggestion.”

He stated that the then Hon’ble Chairperson of the GST Council assured that compensation to States shall
be paid for 5 years in full. Within the stipulated period of 5 years, in case the amount of GST compensation
fell short of compensation payable in any bi-monthly period, the GST Council may decide the mode of
raising additional sources. In this regard he further referred to para 6.5 of the Minutes of the 10th meeting
of the GST Council wherein it is mentioned that on pointing it out by the Hon'ble Minister from Karnataka,
the words “such other revenues” in Section 10(1) of the GST (Compensation to States) Act 2017 were
replaced with the words “such other amounts”. Thus, there was a commitment for Central Government to
provide 100% compensation and how it would be done was for the Council to decide.

35.7 He then referred to the Section 18 of the Constitution (One Hundred and First Amendment) Act
2016 wherein it is mentioned that the Parliament shall, by law, on the recommendation of the Goods and
Services Tax Council, provide for compensation to the States for loss of revenue arising on account of
implementation of the goods and services tax for a period of five years. This was supported and brought
into active mode through Section 8 of the GST (Compensation to States) Act 2017. These acts and laws
and provisions are passed in the Parliament which were enshrined through deliberation in the GST Council.
He further referred to Article 293(2) of the Constitution where it is stated that Government of India can
give guarantee in respect of a loan raised by the State Government and sums required for this purpose shall
be charged on the Consolidated Fund of India. It was GST cess amount which they had all agreed in Agenda
Item 9, would be extended beyond June 2022. The GST Compensation Cess was under the GST regime
and these Articles did not take into account of the same and thus the ways of meeting of the shortfall for
GST compensation was under the purview of GST Council.

35.8 The Hon’ble Minister from Assam stated that for certain matters, the sovereignty lies with the
Parliament and the Constitution of India and are out of purview for discussion in the GST Council. He
requested the Hon’ble Chairperson to not allow, any decision to be taken, which did not fall within the
mandate of the GST Council.

35.9 The Hon’ble Finance Minister of West Bengal put forth his submission that there was a historical
context. As was discussed in the 10th meeting of the GST Council held on 18th February 2017 wherein the
then Secretary of the GST Council in the presence of the then Hon’ble Union Finance Minister who was
chairing the meeting, very clearly said that “…this implied that the Central Government could raise
resources by other means for compensation and this could be then recouped by continuation of cess beyond
five years...” (as mentioned in para.6.3 of the Minutes of the 10th meeting of the GST Council). In the same
spirit after several years, on 14th March 2020, the Hon’ble Union Finance Minister said the same thing, “It
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was the solemn commitment to the States that the Centre is duty bound to give compensation to the States”.
So his first point was that, it was the historical commitment that they were talking about and the matter of
trust and faith in a federal system.

35.10 He further stated that the options of borrowing by the States were sent after day-long discussions
in the 42nd meeting of the GST Council held on 05-10-2020. The GST Council Secretariat sent “Note
regarding GST compensation borrowing option – please find attached note of borrowing options as
discussed in the 41st meeting of the GST Council about GST Compensation” and thus it is within the scope
of GST Council.

35.11 Then he discussed about Article 279A(11) of the Constitution for establishment of a dispute
resolution mechanism within the GST Council. He requested that in a time bound manner, the dispute
resolution mechanism may be set up in 7 days, with a request to come to a conclusion and then quickly
bring it back to the GST Council. Alternatively, he suggested that the possibility of formation of GoM on
the issue may also be explored.

35.12 He suggested that the third option which was that the Government of India may borrow, may be
accepted. The Hon’ble Chief Minister of West Bengal had also written to the Hon’ble Prime Minister of
India that they would allow indefinite extension of the cess so that when the Government of India borrowed,
it did not have to repay from its own resources. The two options proposed require States to borrow from
RBI. It may be noted that the Central Government already had such a window with RBI. The Centre could
simply borrow and had no risk at all. States cannot borrow because they did not have such a window. He
further added that the Secretary Expenditure, Ministry of Finance, Government of India, had clearly said
that there was no such window possible for the States.

35.13 The Hon’ble Minister from Goa referred to the special assistance that the Hon’ble Union Finance
Minister had provided to the States. Expectations by States were very high but the States could not recognize
the fact that in spite of the COVID, the last quarter had shown that economy was picking up. He stated that
at least in his State Goa they were concerned that they had no funds for payment towards the ongoing
infrastructure work. And when the Centre had come out with this special package, certainly there should
be some level of satisfaction. He stated that Goa was also a very small State which came in the planning
process much later. He suggested that when certain amount remains pending with the Centre from
compensation cess collected, the smaller States may be given preference to release that amount to them.

35.14 He felt that the GST Council may arrive at simple consensus since most of the States had already
opted for Option-1. He pleaded that the GST Council had got the spirit to unite as well as had got the spirit
of consensus. With the special assistance that had been announced by the Hon’ble Finance Minister, they
would be able to keep the expenditure towards infrastructure, committed payments and building something
that was necessary for the States. He hoped that all that would help to resolve the problem and by the end
of the meeting they would be deciding that matter by consensus and to close that issue once for all.

35.15 The Hon’ble Deputy Chief Minister of Bihar stated that the first question which had been raised by
some States was whether the GST Council had the jurisdiction to discuss the borrowing issue. He personally
felt that they were stakeholders and in a federal structure they could discuss any issue in this GST Council
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but not necessarily take a decision and go for voting on that particular issue. He recalled that earlier the
issue of natural gas was discussed even though as on date GST is not levied on it. Similarly the issue of
Stamp duty on securities was the second example that was presented to the Council. Third example was
regarding CST Act where many States had raised the issue regarding C-Form on petrol and diesel. CST Act
is not under the jurisdiction of the GST Council but still it discussed it. He stated that in this fiscal federal
body, States could raise issues, they could discuss about the same but as far as voting was concerned, with
respect to borrowing issue, it was not within the jurisdiction of the GST Council. It comes under the purview
of Article 293 of the Constitution of India and it was between the States and the Centre to decide about the
same.

35.16 He said, that in the last meeting, some States were urging for voting on the issue of borrowing. He
referred to the Minutes of 20th meeting of the GST Council held on 5th August 2017 regarding amendment
to the ‘Procedure and Conduct of Business Regulations of the GST Council’. The Chairperson may convene
a meeting of the Council through video conferencing but if a proposal under discussion is required to be
decided by voting, then it shall be deferred and taken up in the next physical meeting of the Council. So, if
some States want voting, the voting cannot take place through video conferencing as voting could only be
done in physical meeting. Further, he said that some States suggested for constitution of the GoM. He felt
that suggesting for GoM after two months is not proper and it would be difficult even for the GoM also to
arrive at a consensus. It would only delay the process as they knew the views of everybody and majority of
views were in favour of Option-1. Bihar was absolutely not in favour of constituting the GoM. He further
referred to the Attorney General of India’s opinion that within the parameters of Article 293, the States
could borrow on the strength of the future receipts of the compensation cess. Even if a single State accepts
the option and if the Government of India was ready, then other States could not prevent those States who
wanted borrowing. He felt that there was no requirement of constituting the GoM and also there was no
requirement to resorting to voting and opined that after taking everybody’s opinion they should resolve the
issue in that meeting.

35.17 The Hon’ble Finance Minister of Kerala stated that in the 42nd meeting of the GST Council held on
05.10.2020, he had distributed a fairly detailed written statement about his position on the issue. He relied
upon the response to Question No.3 given by the Attorney General of India wherein it was stated that “this
wouldn’t permit extension or deferment of the period of 5 years for the payment of compensation to States.
By law they had no right to extend it beyond 5 years”. Then AGI further stated that “where all States come
together, agree for a deferment or extension in regard to the payment of compensation to them, that one
could adopt such a course of action”. Keeping in view the above response from AGI, the Hon’ble Finance
Minister of Kerala was opposed to both the Options suggested by Department of Expenditure, Ministry of
Finance, Government of India. According to him, the Option-1 involved deferment of the compensation
and there was no guarantee that it would be paid within 5 years. Therefore, he would say that the Attorney
General had suggested that it required a consensus and there was no consensus regarding deferment of
compensation cess. The Hon’ble Minister also drew attention to the AGI’s opinion that “it is for the GST
Council to decide on any other source from it may lawfully recommend crediting the necessary amounts to
the GST compensation cess fund”. The amount so borrowed has to come to the Compensation Fund and
Compensation has to be paid from it. The Attorney General of India’s opinion made it very clear that it
could not be done without the agreement of the Centre. Thus, he again relied upon the Attorney General of
India’s response to Question No.2 that stated “the GST Council wouldn’t be in a position to make
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recommendation to which the Central Government was opposed. This has to be kept in mind”. He stated
that the Council had sought the opinion of the Attorney General of India on this issue and the discussion in
the Council may focus upon the opinion given by the AGI as mentioned above.

35.18 He stated that discussion on any issue does not necessarily mean voting on it. There could be
difference of opinion but there is unity in diversity. In the GST Council meetings repeatedly they had said
that they should try to have a consensus but not division at every point of time. Therefore, he is in support
of Option-3 of borrowing by the Centre and they could discuss this proposal or they could go to Option-4
also, if any. He was against deferment and wanted compensation funds this year. Law was very clear that
Compensation had to be paid every two months.

35.19 He also suggested to form a GoM on this issue which may take one more month, then discuss and
come to consensus with mutual sense of accommodation. The functioning of the States would not be
hindered because there was an accommodation provided in the additional borrowing which was already
permitted. So within one month, this GoM could see how they reach an understanding and he promised
that he would try to work towards consensus in a spirit of accommodation.

35.20 The Hon’ble Minister from Uttar Pradesh stated that Uttar Pradesh was with the Central
Government, and with the decisions taken by the Central Government. His suggestion was for increasing
revenue and they could impose cess on some other items too. He requested all to think over items on which
they could increase their collection, to robust their mechanism and the items on which they could impose
more cess so that their cess collection could increase over time. He completely agreed with the views of the
Hon’ble Deputy Chief Minister Bihar that nothing new would come out of the GoM because opinion of all
the States had already come.
35.21 The Hon’ble Minister from Punjab stated that Punjab had raised many pertinent questions both in
writing and in the previous meetings. As far as Punjab was concerned, their issue was very simple, give
them the compensation as per the law or if a pragmatic change was necessary then get the law amended.
The word compensation was defined as difference between the projected revenue and the actual revenue.
Thus, compensation could not be arbitrarily split into two parts. There was no basis to apply either 7%
growth now or 10%. Compensation shall be paid out of the GST Compensation Fund as mentioned in
Section 10 of the GST (Compensation to States) Act 2017. Any amount of compensation that comes from
sources other than this Fund was not compensation. Thus, unless the Central Government borrowed and
credited it to the GST Compensation Fund, it was not compensation. The Section 7 of the Act requires that
compensation shall be paid to the States during the transition period which was 5 years. This was clarified
in the opinion of the learned Attorney General of India. They needed to take note that in Option-1, a good
part of the cess collected would be used to pay the interest on that borrowing of Rs.1.10 lakh crore.
According to him, there should be some legal backing for that. The learned Attorney General of India had
further pointed out that unless all States agree, the compensation could not be delayed beyond 5 years.
Thus, majority voting would not matter unless all States agree.

35.22 He stated that he would not be talking about activating the dispute resolution mechanism because
the Hon’ble Finance Minister of West Bengal had already highlighted it. Some Hon’ble Members even
suggested that those who were willing to borrow should be allowed to borrow, leaving others to fend for
themselves, which is not proper. He had suggested a GoM on the subject to look at the issue with the
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calmness and in far greater spirit of accommodation of consensus of all. It would also serve as decent proxy
for the dispute resolution mechanism. If the Group could be announced that day, it could give its report
within 7 days. He stated that it is proposed to borrow Rs.1.10 lakhs crore. The balance amount that could
be borrowed is only Rs.73,000 crores out of which Rs.13,000 crores has already been credited out of
provisional IGST settlement. Thus, what is left over to be borrowed was now only of Rs.60,000 crores.
This issue can be deliberated in a GoM which could submit its report to the Council. Punjab would rather
have consensus on the issue than a split in the Council. He stated that he didn’t have mandate from his
Cabinet or from his Chief Minister but if they could consider part borrowing by the State and the balance
borrowing by the Government of India, he was sure this third option would be acceptable to most of the
States and if a GoM could be constituted, it would break the deadlock.

35.23 The Hon’ble Minister from Karnataka thanked the Hon’ble Chairperson for giving them the GST
compensation as per all the States’ demand from the Compensation fund collections, which reflected the
earnest commitment towards helping the States in dire need. Centre was trying to arrive at consensus in
the whole issue and they could understand the position of the Union Finance Minister and the Ministry of
Finance in the given economic crisis. The Central Government had proposed extension of levy of cess
which was agreed by all the States and welcomed by all the States. Thirdly, he stated that, the Centre even
considered States request to reduce the growth from 10% to 7%. That was the accommodation by the
Government of India. That showed the true spirit of coming to a consensus and everybody agreed to that.
So all States had agreed that compensation would be paid in full, they had agreed that it would be through
other means that are provided by the law i.e. by borrowing and they had agreed that there would be more
amount available for the loans, they had agreed that the entire things would be paid through this
compensation cess so there will be no burden on the States or on the Centre. So, these broad parameters
had been agreed upon.

35.24 He stated that it had been very clear that the question of compensation had to be addressed
immediately. The question was not only that compensation had to be paid; it had to be paid immediately.
Further any improvement in terms of efficiency, in terms of broadening the tax net, in terms of procedure,
in terms of ultimately increasing the revenue that could be thought over but at the same time, at present,
States were in the dire need of money. So, his only humble suggestion was to allow them to operate Option
1.

35.25 The Hon’ble Minister from Karnataka earnestly requested not to stop their right to take loan and
put that funds in the development activities of States. As most of the senior Members said there was no
question of voting on it and if there was a GoM, it should be for further reforms rather than delaying the
present options which they had already chosen. Therefore, they may be allowed to operate their options.

35.26 The Hon’ble Minister from Tamil Nadu stated that he was thankful to the Hon’ble Chairperson for
taking initiative to come to a consensus on the matter of GST compensation to States. The background note
that the Ministry of Finance had circulated at the 41st meeting of the GST Council held on 27.8.2020, there
it had been specifically stated that the GST Council had to decide other modes of making good that
shortfall. His Hon’ble Chief Minister had also written to the Hon’ble Prime Minister on that issue. Since,
the Government of India appeared unwilling to borrow, they had no option other than to choose one of the
two options offered. The Government of Tamil Nadu was conscious that reaching a common meeting
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ground was the need of the hour amidst this COVID-19 pandemic. It was in this spirit that they had agreed
to Option-1 in the previous meeting. He looked forward to early resolution of that issue so that the States
get the fund that they so urgently needed for reviving the economy during this COVID-19 crisis.

35.27 The Hon’ble Minister from Telangana completely agreed with the views expressed by the Hon’ble
Minister from Chhattisgarh regarding the aspect of borrowing to meet compensation requirement not falling
within the ambit of Article 293 of the Constitution. Apart from which it might also be noted that Section
7(2) of the GST (Compensation to States) Act 2017 mandated release of compensation to States every two
months in case of shortfall in revenue. This compensation shall be released from the GST Compensation
Fund. Borrowing mentioned in Option-1 and Option-2 fell under ‘such other amounts’ as per Section 10(1)
of the GST (Compensation to States) Act 2017. Hence, the discussion regarding the borrowing under
Option-1 and Option-2 was very much within the framework of the GST Council. He added that as pointed
out by his colleague, the Hon’ble Minister from Punjab, the Centre could also re-think to settle the issue at
the earliest in a consensual manner as Option-1 was now revised to Rs.1.10 lac crores and Option-2 stood
at Rs.1.83 lakhs crores and the gap was only around Rs.73,000 crores, out of which, the Chairperson was
kind enough to release some amount since the last meeting of the GST Council. Hence, under Option-1, if
the amount is revised to Rs.1.80 lakhs crores, consensus among States would be easy, and requested the
Hon’ble chairperson to kindly consider the request at the earliest.

35.28 The Hon’ble Minister from Jharkhand stated that he was in agreement with what had been stated
by the Hon’ble Members from Chhattisgarh, West Bengal and Punjab. When GST Act was framed, it was
an Act of faith for them and they trusted in it. Jharkhand got its 70% indirect tax share subsumed in GST.
Today they just had 30% and it was known that Jharkhand was extremely backward and poor State. It is
difficult for the State to manage with 30% of the taxes of the erstwhile regime. They depended on GST
share and GST compensation which was promised to be paid to them at 14% growth rate. He stated that
both Option-1 and Option-2 were not acceptable to them. They are in favour of Option-3 by which they
mean that the Government of India should borrow and give the amount to States. He is in agreement with
the views expressed by the Hon’ble Member from West Bengal on provision of dispute resolution
mechanism under Article 279A. He is in agreement with the views expressed by the Hon’ble member from
Punjab about formation of a GoM on this issue. He noted that compensation amount of around Rs.3300
crores was due to Jharkhand, out of which the Hon’ble Chairperson had sanctioned Rs.318 crores. He
thanked her for that and hoped that remaining compensation amount would also be released soon. He stated
that decision needed to be taken early so that a poor State like Jharkhand could be benefitted and they could
carry on with their welfare activities.

35.29 The Hon’ble Minister from Andhra Pradesh while appreciating the revision from 10% to 7%, he
once again requested for a study to be done to arrive at more realistic figures closer to the actual that would
have been. In view of the increasing cesses and surcharges which were affecting the resources of divisible
pool directly reflecting on the transfer to States, he requested the Centre to be a little more magnanimous.
Keeping in view the fact that this was a peculiar situation, it was imperative that the Centre and States come
forward to arrive at consensus. He agreed with his counterpart from Karnataka where he had mentioned
that most of the essential issues were almost agreed upon. He agreed with his counterparts from Bihar,
Kerala & Karnataka where they had expressed that they could sit together and do a little more of the
deliberation in order to arrive at consensus but in view of the situation where all the States were severely
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starving for finances and resources to meet the regular expenditure as well as additional COVID
expenditure, he requested Hon’ble Chairperson to provide some sort of temporary relief until such time that
in a month or two where either by deliberation or by taking view point from various States in writing, a
study could be made and more or less like majority of States were expressing their views of having a
consensus only. So, with the spirit of federalism and the patience that everybody had faced this challenge,
he requested the Hon’ble Chairperson to provide some immediate relief and go forward for deliberation to
arrive a consensus.

35.30 The Hon’ble Minister from Rajasthan stated that, as provided in the Constitution and the GST
(Compensation to States) Act 2017, the States were not getting compensation due to them. As mentioned
by the Hon’ble Members from Punjab, Kerala, West Bengal and Jharkhand, whenever there was a problem
in federal structure then the Central Government should come forward to resolve the problem of the State
Governments. He believed that the Central Govt should borrow from RBI because they had window system
and whoever borrowed, fiscal deficit would anyway be impacted. An amount of Rs.7,300 crore was due for
Rajasthan till September 2020 as compensation from the Central Government. He supported the suggestion
that if there was a dispute, the provisions of dispute resolution mechanism can be activated. He proposed
the GoM option to give time of 7 days, GoMs would sit, reach at consensus and would take decision.
Whatever decision it would be, at least States would feel that they were heard and decision was taken on
consensus. He would not go for borrowing as it was the responsibility of the Central Government to pay
compensation to States and reminded that the Central Government had guaranteed to pay it which was very
much mentioned in the law.

35.31 The Hon’ble Minister from Himachal Pradesh said that they had opted for Option-1 and decision
on Option-1 should be taken soon. Small States like them were facing lot of problems. He requested that as
per their calculation his loan amount comes around Rs.1700 crores and that should be made available to
them at the earliest.

35.32 The Hon’ble Deputy Chief Minister of Haryana stated that as Haryana had already chosen Option-
1, he requested the Council, at least for the States who had chosen Option-1, to at least get their share of
compensation because he thought it was the need of the hour. He is not in favour of formation of GoM. He
requested the Council to unanimously approve Option-1 for the liquidity for the States to come up.

35.33 The Hon’ble Deputy Chief Minister of Tripura stated that he is in agreement with the Hon’ble
Deputy Chief Minister of Haryana and the Hon’ble Deputy Chief Minister of Bihar that they should be
allowed to borrow. He stated that the North-Eastern States were very small States and they were burdened
with financial difficulties. So he pleaded with the Hon’ble Union Finance Minister not to delay any further
and allow them to exercise Option 1.

35.34 The Hon’ble Minister from Meghalaya reiterated their stand and said that Meghalaya decided to
opt for Option-1. He informed that he would stand by that option. He also thanked the Govt. of India for
having considered the suggestions put forward by Meghalaya and requested to place their choice of Option-
1 on record.
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35.35 The Hon’ble Deputy Chief Minister of Gujarat stated that Gujarat had already made their stand
clear in the last meeting that they would choose Option-1. He said that it would help all the States to receive
funds needed urgently for going forward with their plans and fostering economic activities which would
help people in that difficult situation. He also expressed that if it was not possible to reach a consensus
amongst all the Hon’ble Finance Ministers of States, then it would be difficult to do so even if the GoM
was formed and it would delay the matter. He proposed that the Government of India should initiate the
process of giving loans through RBI to the 21 States that already gave their consent for Option-1. He said
that the States which did not agree with Option-1 could discuss with the Hon’ble Finance Minister of India
about other options available and it would not be appropriate to stop other States from getting loans for the
sake of a few States. He opined that in the present situation, this matter should not be delayed any further
and it was the responsibility of all the State Governments along with the Central Government to help the
States’ people and the matter needed a quick resolution. He also suggested that the amount of loan that the
States would get should be based on the formula of net GST revenue and not gross GST income.

35.36 The Advisor to Hon’ble Lieutenant Governor of Jammu and Kashmir stated that they opted for
Option-1 in view of their current financial resources and need of funds for the Govt. of J&K. He requested
for the Council’s consideration that Option-1 might be implemented on priority since J&K needed finances
urgently.

35.37 The Hon’ble Chief Minister of Puducherry, while referring to the package and interest free loans
for 50 years for the States especially for the North-Eastern States and other States based on the formula for
devolution of funds under Central Finance Commission, pointed out that Puducherry and Delhi had been
deprived of these package and loans as they did not come under the purview of the Central Finance
Commission. He felt that the Central Government could borrow without certain limitations whereas States
cannot borrow without the permission of the Centre. He further suggested that in addition to all the options
considered so far, he proposed another option in which the Government of India can allow the GST Council
to borrow. He mentioned that according to Article 293 of the Constitution of India, the Central Government
can take a decision in the matter so that the issue could be resolved by the GST Council being authorized
by the Central Government to borrow and disburse the funds to the States.

35.38 The Hon’ble Minister from Chhattisgarh sought clarification from the Hon’ble Chairperson on the
points viz. (a) He mentioned that in the last meeting, the Finance Secretary had announced that the GST
Council had decided that States could take a loan. The Hon’ble Minister asked whether the GST Council
was within its rights to ask the States to take a loan. (b) Under Article 293, when an amount is borrowed by
the Central Government the security was to be of the Consolidated Fund of India. Similarly, when the State
Government borrowed, the security was to be the Consolidated Fund of the State or India. He asked, in the
present proposal whether the security would be on the Consolidated Fund of the State or the GST
Compensation Fund. (c) He further sought a clarification / guidance if the GST Council decides that States
had to borrow, then do States have a choice whether to take loan or not.

35.39 The Hon’ble Finance Minister of Assam referred to the deliberations of the 10th meeting of the
GST Council where the then Revenue Secretary had mentioned about market borrowing. He pointed out
that the said meeting took place on 18th February 2017. However, the GST (Compensation to States) Act
2017 was passed in the Parliament on 12th April 2017. That meant whatever had been discussed in the
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Council, even after that, the Parliament in its wisdom decided on 12th April 2017 to discuss about cess only
in order to raise compensation. He stated that the question of borrowing which had been mentioned on the
18th February 2017 meeting was not reflected in the GST Compensation Act passed on 12th April 2017.

36.1 The Secretary clarified the issue raised by the Hon’ble Finance Minister of Punjab, by referring to
the opinion given by the Attorney General of India that the levy of the Compensation Cess could be
extended beyond five years. On the reference made by Hon’ble Member to the opinion of the Attorney
General of India that unless and until all States agrees it could not be extended, Secretary clarified that what
the Attorney General of India meant was that under the current Act, the compensation entitlement would
be only for five years. However, actual levy and collection could go beyond five years if the Council
recommended. That would not permit the extension or deferment of the period of five years for the
entitlement of compensation to the States. In his opinion, therefore, AG has stated that only if the Council
agrees to deferment or extension in regard to the payment of compensation to them (States), one could
adopt such course of action. In the month of August 2020, the Attorney General of India has further clarified
that extending the levy and collection of the cess beyond five years under Section 8(1) of the Act can be
done on the recommendation of the GST Council which would require the decision by three fourths majority
of the weighted vote. Since all States were represented in the GST Council, that could only be achieved if
the requisite number of States supported such recommendations. That was clarified by the Attorney General
of India that ‘all States’ meant ‘requisite number of States that supported such recommendations’. In
Agenda Item 9, the Council had recommended the levy of cess beyond five years.

36.2 On the issues raised by the Hon'ble Finance Minister of Chhattisgarh that if the borrowing was
done then, whether the borrowing would be done on the strength of the Consolidation Funds of States, and
also whether the States could be permitted to borrow, the Secretary clarified by drawing the kind attention
of the Council to the opinion in the month of June 2020 by Attorney General of India. In the question No.4,
the AGI was asked 'Can the States borrow on the future receipts of the compensation fund to meet the
compensation gap either fully or partially?’ The Secretary quoted the Attorney General of India's reply that
'this query can be answered with the reference to Article 292 and 293 of the Constitution. The entitlement
of a State to borrow is set out in Article 293(1). And the Article 293(3) states that States can borrow on the
basis of the Consolidation Funds of States’. The Secretary further quoted the Attorney General of India that
'Limitation on such right is found in clause (3), which prohibits a State from raising any loan, without the
consent of the Government of India, if there is still outstanding any part of a loan which has been made to
the State by the Government of India. Clause (2) of Article 292 authorised the Parliament to make loan to
a State, subject to any limit which may have been fixed by law made by the Parliament. Thus, it is within
these parameters that a State can borrow, even on the strength of future receipts from the compensation
fund.’

36.3 The Hon'ble Minister from Chhattisgarh reiterated the contentions as already stated in above paras.
About Article 293 which envisages or stipulates that security would be of the Consolidated Fund of State
whereas the compensation cess fund does not have any specific share of the State. The Hon'ble Minister
from Chhattisgarh further mentioned that the Compensation Cess would come after end June 2022, it was
not known today, when and how much amount would come and in which time frame. Article 293 was an
entirely different provision and it had no inclusion of compensation cess and the Consolidated Fund of a
particular State has no fixed amount.
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36.4 The Secretary clarified that the compensation cess goes to the States and it becomes the part of the
Consolidated Fund of State and that was exactly the reason why the Attorney General said that under Article
293(1) States can borrow. As regards apprehension of Hon'ble Minister from Chhattisgarh that
Compensation Fund was uncertain in comparison to CGST and SGST, Secretary mentioned that in this
meeting itself they had approved Agenda Item 9 i.e. the GST Council approved that the levy of the
compensation cess shall be extended to meet the entire gap. So, once Compensation Cess got extended, it
was not an uncertain revenue and it becomes a certain source of revenue. Therefore, on the strength of that
compensation fund, the loan or borrowing could be done under Article 293(1). The Hon'ble Minister from
Chhattisgarh replied that the amount was uncertain for sure. If the collections of Compensation Cess were
lower, amount would be lower, but the percentage of CGST and SGST are fixed.

36.5 The Hon'ble Minister from Odisha said that the law was elastic not fixed and GST Act or
Compensation Act were by-product of the Constitution. He agreed with the submissions made by the
Secretary to the Council that similar to a State budget, compensation was an estimate and estimate had
already been made.

36.6 The Hon’ble Finance Minister of Kerala stated that it was possible to make an estimate of what
would be the compensation for a State and it was complicated for States which was so simple and straight
for the Centre to borrow. The Council had decided to extend the compensation cess but not to defer the
compensation of the current year to future as it would require a decision of the Council and not a proposal
of Option-1.

36.7 The Hon’ble Finance Minister of Tamil Nadu stated that Option-1 might be agreed upon by
consensus. He proposed that a meeting of officers might be organized to sort out the modalities of borrowing
of the loan and mode of repayment through cess based Compensation Fund, etc.

36.8 The Hon’ble Finance Minister of Assam stated that he wanted to add few lines to the opinion given
by the learned Attorney General of India. He said that the Attorney General had clearly pointed out that the
entitlement of a State to borrow would emerge from the authority the Constitution had given under Article
293(1) read with Article 292 and Article 293. He reiterated that the Council had no jurisdiction to advise
the Hon’ble Union Finance Minister as and when she wanted to exercise her authority under these two
Articles as the jurisdiction of GST Council did not extend to that.

37 The Hon’ble Chairperson mentioned with regard to the issues mentioned by the Hon’ble Minister
from Chhattisgarh, that in continuation of the clarifications given by the Secretary to the Council, the Joint
Secretary (DoR) would elaborate with regard to the estimates of compensation to States.

37.1 The Joint Secretary (DoR) mentioned that the figures were already shared with the States after
meeting of the Finance Secretary and the Expenditure Secretary with the State Secretaries on various
aspects of the borrowing options. The basis of calculation was also shared where it was said that the SGST
with respect to the previous years’ collection at 10% would be recalculated on 7%. The calculation was
done for each State and S.No.22 showed the figure for Chhattisgarh. He stated that calculations would be
redone at 7% for all States and would be communicated to all the States.
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38. The Hon’ble Chairperson clarified that compensation to the States would be given only for the
period pertaining to the first 5 years but the levy of compensation cess can be extended beyond 5 years in
order to make up for the shortage. She stated that this is as per the existing law and this was clarified by the
Attorney General of India. She informed that exercising the powers that were vested in the Council,
Members had collectively agreed to extend the collection of cess beyond 5 years in the last meeting held
on 05.10.2020. She asked the Secretary to the Council to read out the relevant portion from the opinion
given by the Attorney General in this regard. The Secretary to the Council referred to the paragraph 2 of
the answer given by the Attorney General of India to question No.(iii) on this issue.

39. The Hon’ble Deputy Chief Minister of Gujarat referred to the clarification sought by the Hon’ble
Finance Minister of Chhattisgarh, and stated that if compensation cess collections increased, then the
compensation to States would also decline. He further clarified that if in 2021, the market performs better
and sales increases, compensation to States requirement would automatically be lower. Therefore, in his
opinion, compensation to States was not fixed and it would decrease with an increase in economic activity.
He referred to the Hon’ble Finance Minister of Odisha pointing out that it was elastic in nature. He said
that the accounting procedures were regular exercises that could be done any time but Option-1 should be
agreed upon and the matter should be resolved quickly by taking a decision.

39.1 The Hon’ble Finance Minister of Telangana reiterated his points of view and requested the Hon’ble
Chairperson to take a decision. He expressed that Council should come to a decision and that should be
implemented by all the States. Whether some States would accept or not, but collectively the Council
needed to take a final decision, he emphasized.
39.2 The Hon’ble State Minister of Technical Education of Rajasthan requested the Centre to take loan
and distribute to States.

39.3 The Hon’ble Finance Minister of Goa expressed that in the past also, whenever such a thing had
happened and opinions had been divided, it was left to the wisdom of the Chairperson. He wanted to leave
the decision to the Hon’ble Chairperson and he requested his fellow Ministers to agree to the final decision.

40. The Secretary to the Council answered the queries raised by the Hon’ble Finance Ministers of
Chhattisgarh and the hon’ble State Minister of Technical Education of Rajasthan as to why the Centre
could not borrow under Article 292. He stated that the Department of Expenditure circulated a note on
Option-1 and Option-2 and also mentioned the background of those options. He said that ultimately the aim
was that States should get the money on account of compensation. Since there was not enough collection
of cess, the borrowing arrangement was being worked out by the Department of Expenditure and the
Department of Economic Affairs. The borrowing decision by the Central Government was not taken in the
Council but was taken by the aforementioned Departments based on their own constraints. He mentioned
that after having considered all the constraints, they had worked out a solution where the entire borrowing
would be tied up.

41. The Hon’ble Chairperson thanked all the Ministers for having gone through two extended days of
discussion on the matter. She stated that there was absolutely no doubt that the GST collections have
suffered and these are the things that everybody knows. She also said that however much all of the Members
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had spoken, she did not see them having a dispute. She expressed that although there might be differences
of opinion, they were not fundamentally denying one another’s position. She stated that compensation and
compensation in full was payable and there was no question about it. However, it was everybody’s
knowledge that compensation cess had not been yielding adequately. She requested everyone to look at
how various views have been resolved in the past and have trust and confidence. She reminded that this
was an extraordinary situation and the Members of the Council, including some who were in the
Empowered Committee before the Council was formed, would not have foreseen a pandemic of this nature.
Therefore, it was not only a problem for the States but the problem was for all of them.

42. While referring to the discussion as to why the Centre could not borrow, she explained that the
Centre’s borrowing beyond the calendar actually would adversely impact interest rates in the market and
not only impact the Centre’s case of borrowing but also of States as well as for the private sector. The
impact would not be the same if the States were to borrow. She assured that even if the States borrow, the
Government of India would work with the RBI to ensure that the States are able to raise the amount at
equitable and fair rate. She explained that a balanced approach was followed after consulting State-level
officials.

43. She explained that since the compensation cess had been extended to cover the entire shortfall in
the compensation, she assured that full compensation would be released and other resources of the States
would not be touched for the remaining loan that was being borrowed. Therefore, States need not have any
apprehension that the burden would fall upon them. She appealed to the States to reach a solution quickly
so that fund could reach them which they could spend on pandemic, development expenditure and other
contingent expenditure of the States. She said that even if a consensus could not be reached, she would
want the Centre to be engaged with the States outside the broader consensus to devise ways that could be
mutually acceptable.

44. She stated that at some time she would like to sit with all the Ministers to discuss about improving
the rates per se so that the cess collection could be improved. If she had to voice the views of the States
which had chosen an option, it would not be proper for the Council to say to those States to keep waiting
till everybody arrived at a consensus. She emphasized consensus was something all of them, including
herself would honour. She questioned if she was unable to arrive at a consensus, did it mean she would ask
the States to wait as much as time they would take to arrive at a consensus. She said States had got the
collection of cess coming to them and if they wanted to go ahead and do something, should the Council
take a view that till a consensus is arrived at, no State could go on with the borrowing. So, in order to voice
everybody’s views, she would only say that although a consensus on how to go about borrowing could not
be reached, her humble appeal would be that the need of the hour is that money should go to States so that
they could start spending.

45. The Hon’ble Finance Minister of West Bengal wanted to know from the Hon’ble Finance Minister
of India about the conclusion. He appealed to the Hon’ble Chairperson that it would be solved if the Central
Government agrees to borrow.
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46. The Hon’ble Finance Minister of Assam stated that they had understood what the Hon’ble Finance
Minister of India said. If any State wanted to borrow it could go ahead and other States should allow that.
This was what he understood and he was grateful for that.

46.1 The Hon’ble Finance Minister of Kerala commented that at the end of the deliberations, two
contentious issues are still not clear. One issue was to finalize whether the Central Government would
borrow or individual States. The other issue was about the amount to be borrowed. He was totally against
deferring part amount and how much to defer was something that was to be stated more significantly.

46.2 The Hon’ble Minister of Chhattisgarh thanked the Hon’ble Finance Minister of India for the
complete openness she exhibited in bringing the facts and discussions in the Council. He congratulated her
openness not only to listen and reach a consensus. He understood from the conclusion given by the Hon’ble
Finance Minister of India that the issue was open under Article 293(1) and 293(2) and that nobody could
stop anyone from borrowing.

47. The Hon’ble Chairperson responded that she had already explained the constraints for the Central
Government borrowing the amount. She stated that there is no dispute but a difference of opinion on the
approach. She further stated that while there was no consensus, she would urge all to be fair to one another.
She stated that India was on a revival path and they could not have the Council deny the Indians an
immediate catalytic effect required for the economy. She added that we needed the money to go down to
the people, so that there is quick recovery. She hoped that revenue collections would probably be adequate
next year. She again humbly appealed to all States to work out something that would benefit all states
immediately.

48. After the above concluding remarks by the Chairperson of the Council, the Hon’ble Finance
Ministers of West Bengal, Gujarat, Assam and Karnataka expressed their gratitude to the Hon’ble Finance
Minister of India and appealed to her for doing the needful which would serve best the needs of the States.
Agenda Item 10: Review of Revenue position

49. The Council took note of the Revenue position.

Agenda Item 11: Enabling UPI and IMPS as a payment option for payments of Goods & Services
Tax

50. The Secretary asked JS, DoR to take up Agenda Item 11. The JS, DoR briefed the Council that as
on date, three or four modes of payment are available for GST payment. He emphasized that in the past few
years digital payments through Unified Payment Interface (UPI) had seen a historic rise, so the proposal
was to allow payment of GST through UPI in addition to the existing modes of payment. He highlighted
that in this regard GSTN had already done test runs and the interface was ready, and if the Council approved
it could be made functional.

50.1 The Secretary to the GST council added that this would greatly facilitate the taxpayers as currently
only certain banks and certain modes of payment were available for payment of GST. The GST payments
through UPI would provide taxpayers the facility to do business with banks that are not authorized to collect
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GST with an instant and inter-operable payment option. In view of the reasons explained above, he
submitted to the Council that GSTN may be permitted to allow UPI and IMPS as an option for GST
payments.

51. For Agenda Item 11, the Council approved the proposal for including UPI and IMPS as an option
for GST payment apart from the existing ones.

Agenda Item 12: Status report of creation of GRC Zone-wise (CBIC) and States / UTs.

52. The Secretary introduced the agenda and stated that the GST Council in its 38th meeting held on
18.12.2019 had decided that a structured grievance redressal mechanism should be established for the
taxpayers under GST to tackle grievances of taxpayers on GST related issues of specific / general nature.
The GST Council accordingly approved constitution of ‘Grievance Redressal Committee’ (GRC) at CBIC
Zonal / State level consisting of both Central Tax and State Tax officers, representatives of trade and
industry and other GST stakeholders.

52.1 Office Memoranda F.No.820/GRC/GSTC/2019 dt. 30.12.2019 and 07.02.2020 were issued by this
GST Council Secretariat for constitution of GRC at CBIC Zonal / State level in accordance with CBIC
letter F.No.20/10/16/2018-GST(Pt.l) dated 24.12.2019.

52.2 The present position of constitution of GRC on the basis of orders constituting Zonal / State level
GRC which have been received in the GSTC Secretariat, was submitted to the GST Council. The details of
constitution of these GRCs are being uploaded regularly on the GST Council website
http://www.gstcouncil.gov.in/grievance-redressal-committees-central-zonestate-level under sub-menu
"Public Grievance Redressal Committee (GRC)" under menu "Help" for creating awareness amongst the
trade.

52.3 All State / UTs / CBIC Zones have constituted the GRCs, except the following 06 States / UTs /
CBIC Zones which have not yet constituted GRC. The GST Council Secretariat reminded them vide OM
dated 02.06.2020, 20.07.2020 24.08.2020 and 16.09.2020.
S. No. State / UT CBIC Zone
Status of
constitution of GRC
1. Andaman and Nicobar
Islands
Kolkata Pending
2. Dadra Nagar Haveli,
Daman and Diu
Vadodara Pending
3.
Gujarat Ahmedabad Pending
4.
Haryana Panchkula Pending
5. Puducherry
Chennai
Pending
6. Tamil Nadu Pending
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It was requested that the above mentioned 06 States / UTs / CBIC Zones may constitute GRC and
copy of orders of constitution of GRC may be sent on priority to the GST Council Secretariat.
52.4 The GSTN created a specific portal for uploading the grievances received in these meetings, for
the purpose of escalating the same to the appropriate authority. The CBIC Zones / States / UTs have been
requested to take Login credentials for the specific portal where the GRC is constituted.
52.5 The latest status of the constitution of GRC at Zonal / State level for redressal of grievance of
taxpayers on GST related issues was placed before the GST Council for information.
53. For Agenda item 12, the GST Council took note of the latest status of the constitution of Grievance
Redressal Committee at Zonal / State level for redressal of grievance of taxpayers on GST related issues.

Agenda Item 13: Performance Report of the NAA (National Anti-profiteering Authority) for the 1st
quarter (April to June, 2020)

54. The Secretary introduced the Agenda Item and stated that in terms of provisions of clause (iv) of
Rule 127 of the CGST Rules 2017, National Anti- Profiteering Authority (NAA) is required to furnish a
performance report to the GST Council by 10th day of the close of each quarter.He placed the Quarterly
Performance Report of NAA for the 1st quarter of the financial year 2020-2021 i.e. for the period from
01.04.2020 to 30.06.2020, before the GST Council, as under:
Opening
Balance
No. of
Investigation
Reports
received from
DGAP during
the quarter
Disposal of Cases (during Quarter)
Closing
Balance
Total
Disposal
during
quarter
No. of cases
Where
Profiteering
established
No. of cases
Where
Profiteering
not
established
No. of
cases
referred
back to
DGAP
66 21 21 14 01
06

66

54.1 The NAA reported that due to Corona pandemic outbreak, the orders in cases where in the
limitation was expiring between 20.03.2020 and 29.03.2020 might not be passed within a period of 06
months from the date of receipt of the report from the DGAP due to force majeure. Accordingly, the orders
were passed in terms of the Notification No.35/2020-Central Tax dated 03.04.2020 issued by the Govt. of
India, Ministry of Finance (Department of Revenue), CBIC under Section 168A of the CGST Act, 2017 as
amended vide the Notification No.55/2020-Central Tax dated 27.06.2020. The NAA also reported that the
hearings scheduled from 01.04.2020 to 31.05.2020 could not be held due to extended lockdowns in Delhi
till 31.05.2020. Thereafter, personal hearing has been accorded only on the specific request by the interested
parties preferably through video conferencing.
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55 For Agenda item 13, the Council took note of the Quarterly Performance Report of the National
Anti-Profiteering Authority for the 1st quarter of the financial year 2020-2021 i.e. for the period from
01.04.2020 to 30.06.2020.
Agenda Item 14(i): Minutes of the Meetings of GoM on IGST Settlement held on 22.09.2020 &
01.10.2020

56. The Secretary, GST Council taking up Agenda Item 14(i) briefed the Council that a GoM under
the Chairmanship of the Hon’ble Deputy CM of Bihar was constituted which held meetings on the issue of
IGST settlement. The report of the GoM had been circulated to all the Hon’ble Ministers of the GST
Council. The Secretary submitted that the recommendations of the GoM were as under:
(a) Centre should disburse net amount of Rs.24,400 crore due to States / UTs on account of
apportionment of the entire year-end IGST balance available as on 31st March, 2018;
(b) Before initiating recovery of the excess Compensation amount, Centre should consult the States
from which recovery is to be made;
(c) IGST settlement data arising on account of annual returns filed by the taxpayers for FY 2017-
18, may be referred to the Law Committee for examination and recommendation; and
(d) The matter would be placed before the 42nd meeting of the GST Council to be held on 5th
October 2020.

The Hon’ble Chairperson invited comments of the Hon’ble Ministers on the same.

56.1 The Hon’ble Minister from West Bengal stated that he has no issue with the recommendations of
GoM. But, he said that he would like to bring to the attention of the Chairperson that Rs.1,76,688 crores
were received for IGST in 2017-18. As per set procedure, half of it, that is Rs.88,344 crores, has gone to
the States and an equal amount remained with the Centre in the Consolidated Fund of India. As a second
step, of the IGST amount received in the CFI, 42% of that should have been devolved to the States and thus
a total amount of Rs.1,25,000 crores should have been devolved to the States. He said that miscalculation
of IGST has resulted in shortfall of IGST devolved to the States and the compensation amount of Rs.33,000
crores was released in the earlier meeting. He said that CAG had made a very strong observation on this
and it reflected poorly on the GST Council.

56.2 The Hon’ble Minister of Assam stated that GST Council was not the right forum to discuss the
report of CAG as the CAG report would go to the Parliament and the Public Accounts Committee would
discuss it. He advised to restrict the discussions to the report of GoM on IGST settlement.

56.3 The Hon’ble Minister from Telangana submitted that he would like to bring up an issue other than
the Agenda being discussed. One was the issue of ineligible, reversed and lapsed IGST ITC not being settled
to the States on monthly basis. In this regard when the settlement reports pertaining to annual returns filed
upto 24-9-2020 were run by the GSTN, it was noticed that an amount of Rs.1,000 crores was due to State
of Telangana which may be settled at the earliest. Secondly, him being a Member of the GoM, the GoM
has unanimously agreed to the recommendations made in the report. As per the report, he requested that an
amount of Rs.25,058 crores which was transferred to the CFI, may now be devolved to the States.
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56.4 The Hon’ble Minister from Madhya Pradesh submitted that an IGST recovery of Rs.1,612 crores
was due from the State and it was requested that in light of the shortage of GST and VAT revenues and the
increased requirements due to the corona pandemic, the State had opted for Option-1 and that this amount
may be settled with the compensation dues accruing to the State either through payments in form of
instalments required to be made after a period of 5 years or may be with the dues accruing for FY 2021-
22.

56.5 The Hon’ble Minister from Chhattisgarh, on the issue of IGST stated that the matter was brought
up in the Council and then referred to GoM on IGST settlement ably led by the Hon’ble Deputy CM of
Bihar that reached a unanimous decision. He also discussed about Compensation to States, loan to be taken
and related issues. He also sought whether certain guidelines could be framed on Members of the Council
interacting with the Media on the GST related issues being discussed in the Council meetings.

56.6 The Hon’ble Minister from Tamil Nadu requested the Hon’ble Chairperson that the payment of
IGST settlement dues as recommended by the GoM should be made in one instalment and this month itself.

56.7 The Hon’ble Minister of Karnataka stated that as per the GoM’s second recommendation that
before initiating recovery of the excess Compensation amount, the Centre should consult the States from
which recovery was to be made. He also mentioned that considering the hardships on finance front
presently, it should not be recovered immediately and may either be settled at one time after five years or
it could be done in instalments.

56.8 The Hon’ble CM of Puducherry stated that he had been attending meetings of the Council right
from 2017 and it was through deliberations and broad consensus that decisions were being arrived at. He
requested the Hon’ble Chairperson that each state had its typical problems and the Hon’ble Ministers
represent the will of the people of the State. Centre and State had to work together in the spirit of cooperative
federalism.

56.9 The Hon’ble Minister from Assam agreed with the views expressed by the Hon’ble CM of
Puducherry and suggested that if any code of conduct is being finalized, then it shall be for all Members of
the GST Council.

56.10 The Hon’ble Minister from Chhattisgarh requested the Chairperson to clarify what should be the
stand of the Ministers of the Council in the Media and when the Council was not meeting, were they to
keep silent. So if a public issue came forward, should they not express themselves in the public.

56.11 The Hon’ble Minister of Karnataka stated that more focus was required on the Agenda, and the
Hon’ble Chairperson should take a call and sought greater clarity on the Compensation issue.

56.12 The Hon’ble Chairperson stated with regard to the issue of IGST settlement, she did not want to go
back to the problem as to how it happened but she pointed that after she took over as the Chairperson, GST
Council in 2019, some of these issues that had been festering the GST Council were (i) IGST issue related
to a particular State with regard to fixing of base year revenue, (ii) the IGST settlement issue concerning
all States, and (iii) the Compensation Cess issue that had been credited to CFI and had not been transferred
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to public account. She stated that all the three issues were settled by following proper process within a
period of 12 months. The issue of IGST Settlement concerning all States was looked into by the GoM on
IGST settlement, headed by Sh. Sushil Modi, and the recommendations of the GoM are placed today before
the GST Council. She stated that as per the recommendations of the GoM, the Centre would be disbursing
net amount of Rs.24,400 crores due to States on account of apportionment of the entire year-end IGST
balance available as on 31st March, 2018. Further, she assured that the entire IGST settlement amount of
Rs.24,400 crore would be released within a week.

56.13 The Hon’ble Chairperson acknowledged the desperate financial need of States as they were front-
liners in the fight against Covid. She said that in spite of Compensation Cess collections being only
Rs.96,000 crores last year, the Central Government had released compensation of Rs.1,60,000 crores.
Further, she clarified that on the issue of mechanism for recovery of excess IGST from States, it was not
presently being pressed and could be recovered gradually.

56.14 The Hon’ble Chairperson further stated that she was grateful that the Hon’ble Finance Ministers
of the States chose to write a personal letter thanking her. In response, she thanked all the Hon’ble Finance
Ministers of the States for being positive about the resolution of each of these issues.

56.15 The Hon’ble Chairperson further stated that she had always been willing to hear every Minister
who wished to speak and she had never asked any Minister to cut short or conclude. She has also assured
that she was not going to prepare any code of conduct. She stated each one of them were very senior,
experienced and managing their respective State’s affairs during these challenging times. She stated that
till today, there was never a meeting where it had been felt that a code of conduct should be formed and
every meeting had gone with its due share of interaction and sharing of information.

57. For Agenda 14(i) the Council approved the recommendation of the GoM on IGST Settlement.
Agenda Item 14(ii): Exemption from GST on launch of satellites of Indian private enterprises, by
ISRO, Antrix and NSIL.
58. The Secretary introduced the Agenda Item 14(ii) regarding exemption of levy of GST on satellite
launch services supplied by ISRO, Antrix Corporation Ltd. and New Space India Limited (NSIL) to Indian
private enterprises. He mentioned that, recently certain Indian startups engaged in manufacturing and
launch of nano / micro satellites opted for launch of their satellites by foreign space companies instead of
ISRO, Antrix Corporation Ltd., or NSIL, the premier Indian agencies engaged in the activity of launching
of satellites. One of the reasons for this was the GST applicable on the service of launch of satellite by an
Indian Space agency such as Antrix or NSIL to an Indian service recipient.
58.1 According to the provisions of GST law, supply of satellite launch services by Antrix Corporation
Ltd. or New Space India Limited (NSIL) to international customers against payment in foreign exchange
constituted export of service and was zero-rated. However, supply of satellite launch services by ISRO,
Antrix or NSIL to a person located in India was taxable. This position had been clarified vide Circular
No.2/1/2017-IGST dated 29.9.2017.
58.2 The Council agreed that the satellite launch services supplied by ISRO, Antrix Corporation Ltd or
NSIL may be exempted from GST.
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59. For Agenda Item 14(ii), the GST Council recommended that the satellite launch services supplied
by ISRO, Antrix Corporation Ltd or NSIL be exempted from payment of GST.
60. After detailed discussion on the Agenda Item 9A on 12th October 2020, the Secretary to the Council
thanked the Hon’ble Union Finance Minister, the Chief Minister, the Union Minister of State (Finance), the
Deputy Chief Ministers, all the Hon’ble Members of the Council, and other participants of the meeting.
With this, he announced the closure of the meeting.





































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Annexure-1
List of Hon’ble Ministers who attended the 42nd meeting of the GST Council
held on 05th October, 2020
Sl
No.
Centre/State Name of Hon’ble Minister Charge
1 Govt of India Ms. Nirmala Sitharaman Union Finance Minister
2 Govt of India Shri Anurag Singh Thakur Minister of State (Finance)
3 Andhra Pradesh Shri Buggana Rajendranath Minister for Finance, Planning and
Legislative Affairs
4 Arunachal Pradesh Shri Chowna Mein Deputy Chief Minister
5 Assam Dr.Himanta Biswa Sarma Finance Minister
6 Bihar Shri Sushil Kumar Modi Deputy Chief Minister
7 Chhattisgarh Shri T.S. Singh Deo Minister, Commercial Tax
8 Delhi Shri Manish Sisodia Deputy Chief Minister
9 Goa Shri Mauvin Godinho Minister for Transport and Panchayat Raj,
Housing, Protocol and Legislative Affairs
10 Gujarat Shri Nitinbhai Patel Deputy Chief Minister
11 Haryana Shri Dushyant Chautala Deputy Chief Minister
12 Himachal Pradesh Shri Bikram Singh Minister for Industries
13 Jammu and
Kashmir
Shri K. K. Sharma Advisor to Lt. Governor
14 Karnataka Shri Basavaraj Bommai Minister for Home Affairs
15 Kerala Dr. T. M. Thomas Isaac Minister for Finance & Coir
16 Madhya Pradesh Shri Jagdish Devda Minister for Finance and Commercial
Taxes
17 Maharashtra Shri Jayant Patil Minister for Water Resource
18 Meghalaya Shri James K. Sangma Minister for Taxation
19 Manipur Shri Yumnam Joykumar
Singh
Deputy Chief Minister
20 Mizoram Shri Lalchamliana Minister for Taxation, Home, Disaster
Management & Rehabilitation
21 Puducherry Shri V. Narayanasamy Chief Minister
22 Punjab Shri Manpreet Singh Badal Finance Minister
23 Odisha Shri Niranjan Pujari Minister, Finance & Excise
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24 Rajasthan Shri Shanti Kumar Dhariwal Minister for Local Self Government,
Urban Development & Housing,Law and
Legal
Affairs and Parliamentary Affairs
25 Sikkim Shri B.S. Panth Minister for Tourism & Industries
26 Tamil Nadu Shri D. Jayakumar Minister for Fisheries and Personnel &
Administrative Reforms
27 Telangana Shri T. Harish Rao Finance Minister
28 Tripura Shri Jishnu Dev Varma Deputy Chief Minister
29 Uttarakhand Shri Subodh Uniyal Minister for Agriculture, Agricultural
Marketing,Agricultural Processing,
Agricultural Education,Garden and Fruit
Industries, Silk Development
30 Uttar Pradesh Shri Suresh Kumar Khanna Minister for Finance, Parliamentary
Affairs, Medical Education
31 West Bengal Dr. Amit Mitra Finance Minister











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Annexure-2
List of Hon’ble Ministers who attended the 42nd meeting of the GST Council
held on 12th October, 2020
Sl.No Centre/State Name of Hon'ble
Minister
Charge
1 Govt of India Ms. Nirmala
Sitharaman
Union Finance Minister
2 Govt of India Shri Anurag Singh
Thakur
Minister of State (Finance)
3 Andhra
Pradesh
Shri Buggana
Rajendranath
Finance Minister
4 Arunachal
Pradesh
Shri Chowna Mein Deputy Chief Minister
5 Assam Dr. Himanta
Biswa Sarma
Finance Minister
6 Bihar Shri Sushil Kumar
Modi
Deputy Chief Minister
7 Chhattisgarh Shri T.S. Singh
Deo
Minister, Commercial Tax
8 Delhi Shri Manish
Sisodia
Deputy Chief Minister
9 Goa Shri Mauvin
Godinho
Minister for Transport and Panchayati Raj, Housing,
Protocol and Legislative Affairs
10 Gujarat Shri Nitinbhai
Patel
Deputy Chief Minister (Finance)
11 Haryana Shri Dushyant
Chautala
Deputy Chief Minister
12 Himachal
Pradesh
Shri Bikram Singh Minister for Industries
13 Jammu and
Kashmir
Shri K. K. Sharma Advisor to Lt. Governor
14 Jharkhand Dr. Rameshwar
Oraon
Minister for Planning cum Finance,Commercial Taxes,
Food, Public Distribution & Consumer Affairs.
15 Karnataka Shri Basavaraj
Bommai
Minister for Home Affairs
16 Kerala Dr. T. M. Thomas
Isaac
Finance Minister
17 Madhya
Pradesh
Shri Jagdish
Devda
Minister for Finance and Commercial Taxes
18 Manipur Shri Yumnam
Joykumar Singh
Deputy Chief Minister (Finance in-charge)
19 Meghalaya Shri James K.
Sangma
Minister for Taxation
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20 Odisha Shri Niranjan
Pujari
Minister, Finance & Excise
21 Puducherry Shri V.
Narayanasamy
Chief Minister
22 Punjab Shri Manpreet
Singh Badal
Finance Minister
23 Rajasthan Shri Subhash Garg Minister for Technical Education, Sanskrit Education,
Medical & Health Ayurved, ESI & DIPR
24 Sikkim Shri B.S. Panth Minister for Commerce & Industries, Tourism and
Civil Aviation
25 Tamil Nadu Shri D. Jayakumar Minister for Fisheries and Personnel & Administrative
Reforms
26 Telangana Shri T. Harish Rao Finance Minister
27 Tripura Shri Jishnu Dev
Varma
Deputy Chief Minister
28 Uttarakhand Shri Subodh
Uniyal
Minister for Agriculture, Agricultural
Marketing,Agricultural Processing, Agricultural
Education,Garden and Fruit Industries, Silk
Development
29 Uttar Pradesh Shri Suresh Kumar
Khanna
Minister for Finance, Parliamentary Affairs, Medical
Education
30 West Bengal Dr. Amit Mitra Finance Minister
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Annexure 3
List of officials who attended the 42nd meeting of the GST Council held on 05th October, 2020
Sl No State/Centre Name of the Officer Charge
1 Govt. of India Dr. A B Pandey Finance Secretary
2 Govt. of India Shri M. Ajit Kumar Chairman, CBIC
3 Govt. of India Shri Sandeep M Bhatnagar Member(Investigation & Customs),
CBIC
4 Govt. of India Shri Vivek Johri Member (GST, IT, Tax Policy), CBIC
5 Govt. of India Shri Ajay Jain Member (Legal, CX & ST), CBIC
6 Govt. of India Shri Dhruva Kumar Singh CCA
7 Govt. of India Shri Anil Kumar Jha Additional Secretary, DoR
8 Govt of India Shri Ritvik Pandey Joint Secretary, DoR
9 GSTN Shri Manish Kumar Sinha Executive Vice President
10 Govt. of India Shri G.D. Lohani Joint Secretary, TRU I, DoR
11 Govt. of India Shri Yogendra Garg Pr. Commissioner (GST), CBIC
12 Govt. of India Shri Vipul Bansal PS to Union Finance Minister
13 GST Council Shri Amitabh Kumar Joint Secretary
14 GST Council Shri S.K. Rahman Joint Secretary
15 GST Council Ms Ashima Bansal Joint Secretary
16 Govt. of India Shri Rajesh Malhotra DG (M&C)
17 Govt. of India Shri Astik Sinha PS to MoS (Finance)
18 GST Council Shri Rajesh Agarwal Director
19 GST Council Shri G.S. Sinha Director
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20 GST Council Shri Jagmohan Director
21 GST Council Ms. Ujjaini Datta Director
22 Govt. of India Shri N Gandhi Kumar Director, DoR
23 Govt. of India Shri Amaresh Kumar Addl. Comm., GST Policy Wing
24 Govt of India Ms Nisha Gupta Joint Commissioner, GST Policy Wing
25 Govt of India Shri Nimba Ram Joint Commissioner, GST Policy Wing
26 Govt of India Shri Rakesh Dahiya OSD, TRU-II, CBIC
27 Govt of India Shri Gaurav Singh Deputy Secretary (TRU)
28 Govt. of India Shri Rahul Raja OSD to Chairman, CBIC
29 Govt of India Shri Vikash Kumar DC, GST Policy Wing
30 Govt of India Shri Kumar Asim Anand DC, GST Policy Wing
31 Govt of India Dr. Vikash Shukla Media Advisor to Revenue Secretary
32 Govt of India Shri Harsh Singh OSD, TRU-II, CBIC
33 Govt of India Ms. Rajni Sharma OSD, GST Policy Wing
34 Govt of India Ms. Rachna OSD, TRU-II, CBIC
35 Govt of India Shri Shikhar Pant OSD, TRU-I, CBIC
36 Govt of India Shri Aman Mittal Assistant Comnr., GST Policy Wing
37 GST Council Shri Arjun Meena Under Secretary
38 GST Council Shri Nitin Deepak Agarwal Under Secretary
39 GST Council Shri Mahesh Singarapu Under Secretary
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40 GST Council Shri Krishna Koundinya Under Secretary
41 GST Council Shri Naveen Agrawal Under Secretary
42 GST Council Shri Karan Choudhary Under Secretary
43 GST Council Shri SaribSahran Superintendent
44 GST Council Ms Chanchal Soni Superintendent
45 GST Council Shri Abhishek Kumar Superintendent
46 GST Council Shri Rakesh Joshi Inspector
47 GST Council Shri Pankaj Bharadwaj Inspector
48 GST Council Shri Vijay Malik Inspector
49 Andhra Pradesh Dr Rajath Bhargava Special Chief Secretary, Revenue
50 Andhra Pradesh Shri Peeyush Kumar Chief Commissioner of State Tax
51 Andhra Pradesh Shri D. Venkateswara Rao OSD to Special Chief Secretary
52 Andhra Pradesh Shri K. Ravishankar Commissioner State Tax GST (FAC)
53 Andhra Pradesh Sri. J. V. M Sarma Joint Commissioner State Tax, GST
54 Arunachal Pradesh Shri Anirudh Singh Secretary
55 Arunachal Pradesh Shri Ando Pangkam Deputy Commissioner
56 Arunachal Pradesh Shri KenmiZirdo Superintendent
57 Arunachal Pradesh Shri TayemNamoh Inspector
58 Assam Shri Anurag Goel Commissioner of Taxes
59 Assam Shri Shakeel Saadullah Joint Commissioner of Taxes
60 Assam Shri BedabrataSaika Inspector of Taxes
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61 Bihar Dr Pratima State Tax Commissioner cum Secretary
62 Bihar Shri Arun Kumar Mishra Special Secretary
63 Chhattisgarh Ms Maninder Kaur Dwivedi Principal Secretary, Commercial Tax
64 Chhattisgarh Ms RanuSahu Commissioner, Commercial Tax
65 Delhi Shri Sandeep Kumar Secretary, Finance
66 Delhi Shri Vivek Pandey Commissioner, State Tax
67 Delhi Shri Anand Kumar Tiwari Additional Commissioner, State Tax
68 Delhi Shri C. Arvind Secretary to Dy CM
69 Goa Shri Hemant Kumar Commissioner, State Tax
70 Gujarat Shri Pankaj Joshi Additional Chief Secretary, Finance
71 Gujarat Shri J. P. Gupta Chief Commissioner, State Tax
72 Gujarat Shri Milind Torawane Secretary (Economic Affairs)
73 Haryana Shri Anurag Rastogi Principal Secretary, Excise & Taxation
74 Haryana Shri Shekhar Vidhyarthi Excise & Taxation Commissioner
75 Haryana Shri Rajeev Chaudhary Joint Excise and Taxation
Commissioner
76 Himachal Pradesh Shri Jagdish Chander Sharma Principal Secretary (Excise & Taxation)
77 Himachal Pradesh Shri Rohan Chand Thakur Commissioner of State Tax and Excise
78 Himachal Pradesh Shri Rakesh Sharma Additional Commissioner of State Tax
and Excise
79 Jammu and Kashmir Dr. Arun Kumar Mehta Financial Commissioner, Finance
80 Jammu and Kashmir Shri P.K. Bhat Commissioner, State Taxes
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81 Jammu and Kashmir Shri Waseem Raja Assistant Commissioner, State Taxes
82 Jharkhand Ms Vandana Dadel Secretary, Commercial Tax
83 Jharkhand Ms Akanksha Ranjan Commissioner, CTD
84 Jharkhand Shri Santosh Kumar Vatsa Special Secretary, CTD
85 Jharkhand Shri Brajesh Kumar State Tax Officer
86 Karnataka Shri M.S. Srikar Commissioner, CT
87 Karnataka Shri Padmakar Kulkarni Additional Commissioner
88 Karnataka Dr.Raviprasad Additional Commissioner
89 Kerala Shri Rajesh Kumar Singh Additional Chief Secretary (Finance)
90 Kerala Shri Anand Singh Commissioner, State Tax
91 Kerala Dr. Karthikeyan Special Commissioner, State Tax
92 Kerala Shri Abraham Renn Additional Commissioner, State Tax
93 Madhya Pradesh Ms Dipali Rastogi Principal Secretary, Commercial Taxes
94 Madhya Pradesh Shri Raghwendra Kumar
Singh
Commissioner, Commercial Taxes
95 Madhya Pradesh Shri Sudip Gupta Joint Commissioner, Commercial
Taxes
96 Maharashtra Shri Manoj Saunik Additional Chief Secretary, Finance
97 Maharashtra Shri RajgopalDevara Principal Secretary, Financial Reforms
98 Maharashtra Shri Sanjeev Kumar Commissioner, State Tax
99 Maharashtra Shri Kiran Shinde Deputy Commissioner, State Tax
100 Manipur Shri Charchit Gaur Commissioner of Taxes
101 Manipur Shri YumnamIndrakumar
Singh
Assistant Commissioner of Taxes
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102 Meghalaya Smt S. A. Synrem Commissioner & Secretary, Excise,
Registration, Taxation & Stamps
103 Meghalaya Shri L. Khongsit Additional Commissioner of Taxes
104 Meghalaya Shri K. War Deputy Commissioner of Taxes
105 Mizoram Shri VanlalChhuanga Commissioner &Secretary , Taxation
Department
106 Mizoram Shri HK Lalhawngliana Joint Commissioner, State Tax
107 Mizoram Shri Lalthansanga Joint Commissioner, State Tax
108 Nagaland Shri KesonyuYhome Finance Secretary& Commissioner of
State Taxes
109 Nagaland Shri Y Mhathung Murry Additional Commissioner of State
Taxes
110 Nagaland Shri WochamoOdyuo Additional Commissioner of State
Taxes
111 Odisha Shri Ashok K. K. Meena Principal Secretary, Finance
112 Odisha Shri Sushil Kumar Lohani Commissioner, CT & GST
113 Odisha Shri N.K.Rautry Special Secretary, Finance
114 Puducherry Shri Shurbir Singh Secretary (Finance)
115 Puducherry Shri L. Kumar Commissioner (ST)
116 Puducherry Shri. K. Sridhar Deputy Commissioner (ST)
117 Punjab Shri V. K. Garg Advisor (Financial Resources) to Chief
Minister
118 Punjab Shri A. VenuPrashad Financial Commissioner (Taxation)
119 Punjab Shri Nilkanth S. Avhad Commissioner of State Taxes
120 Punjab Shri Ravneet Khurana Additional Commissioner (Audit)
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121 Rajasthan Dr. Prithvi Raj Secretary, Finance (Revenue)
122 Rajasthan Shri Abhishek Bhagotia Chief Commissioner, State Taxes
123 Rajasthan Shri Ketan Sharma Special Commissioner (GST)
124 Sikkim Shri Jigme Dorjee Bhutia Secretary cum Commissioner, CT
125 Sikkim Shri V.P. Pathak Additional Chief Secretary, Finance
126 Sikkim Shri Kumar Bardewa Director (Budget), Finance
127 Sikkim Shri Bikash Diyali Deputy Director, CTD
128 Tamil Nadu Shri S. Krishnan Additional Chief Secretary, Finance
129 Tamil Nadu Shri M. A. Siddique Principal Secretary/Commissioner,
Commercial taxes
130 Tamil Nadu Dr.Beela Rajesh Secretary, Commercial Taxes &
Registration
131 Telangana Shri Somesh Kumar Chief Secretary
132 Telangana Ms Neetu Prasad Commissioner, CT
133 Telangana Shri Laxminarayan Jannu Additional CCT
134 Telangana Shri N. Sai Kishore Joint CCT
135 Tripura SmtTanushree Deb Barma Secretary, Finance
136 Tripura Dr. Vishal Kumar Chief Commissioner of State Tax
137 Tripura Dr. Sudip Bhowmik Deputy Commissioner of Taxes
138 Tripura Shri Badal Baidya Assistant Commissioner of Taxes
139 Tripura Shri Ashish Barman Nodal Officer, GST
140 Uttarakhand SmtSowjanya Secretary, Finance
141 Uttarakhand Shri Anil Singh Additional Commissioner, State Tax
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142 Uttarakhand Shri Anurag Mishra Joint Commissioner, State Tax
143 Uttarakhand Shri Pramod Joshi Joint Commissioner, State Tax
144 Uttarakhand Shri S.S.Tiruwa Deputy Commissioner, State Tax
145 Uttarakhand Shri Ranjeet Singh Negi Assistant Commissioner, State Taxes
146 Uttar Pradesh Shri Alok Sinha Additional Chief Secretary,
Commercial Tax
147 Uttar Pradesh Ms Amrita Soni Commissioner, Commercial Tax
148 Uttar Pradesh Shri Sanjay Kumar Pathak Joint Commissioner(GST), Commercial
Tax HQ
149 Uttar Pradesh Shri Anil Kumar Kannojiya Deputy Commissioner(GST,
Commercial Tax HQ
150 Uttar Pradesh Shri Paritosh Mishra Assistant Commissioner(TRU),
Commercial Tax HQ
151 Uttar Pradesh Ms Nidhi Srivastava Assistant Commissioner(GST,
Commercial Tax HQ
152 West Bengal Shri H K Dwivedi Additional Chief Secretary, Finance
153 West Bengal Shri Manoj Pant Finance Secretary
154 West Bengal Shri Smaraki Mahapatra Secretary, Finance
155 West Bengal Shri Devi Prasad Karanam Commissioner, CT
156 West Bengal Shri Khalid Aizaz Anwar Head, GST PPU






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Annexure 4
Officials who attended the 42nd meeting of the GST Council (continuation) held on 12.10.2020
Sl
No
Centre/State Name of the Officer Charge
1 Govt. of India Dr. A B Pandey Finance Secretary
2 Govt. of India Shri M. Ajit Kumar Chairman, CBIC
3 Govt. of India Shri Sandeep M Bhatnagar Member(Investigation & Customs), CBIC
4 Govt. of India Shri Vivek Johiri Member (GST, IT, Tax Policy), CBIC
5 Govt. of India Shri Anil Kumar Jha Additional Secretary, DoR
6 Govt of India Shri Ritvik Pandey Joint Secretary, DoR
7 Govt. of India Shri G.D. Lohani Joint Secretary, TRU I, DoR
8 Govt. of India Shri Yogendra Garg Pr. Commissioner (GST), CBIC
9 Govt. of India Shri Vipul Bansal PS to Union Finance Minister
10 GST Council Shri Amitabh Kumar Joint Secretary
11 GST Council Shri S.K. Rahman Joint Secretary
12 GST Council Ms Ashima Bansal Joint Secretary
13 Govt. of India Shri Rajesh Malhotra DG (M&C)
14 Govt. of India Shri Astik Sinha PS to MoS (Finance)
15 GST Council Shri Rajesh Agarwal Director
16 GST Council Shri G.S. Sinha Director
17 GST Council Shri Jagmohan Director
18 GST Council Ms. Ujjaini Datta Director
19 Govt. of India Shri N Gandhi Kumar Director, DoR
20 Govt. of India Shri Rahul Raja OSD to Chairman, CBIC
21 Govt of India Dr. Vikash Shukla Media Advisor to Revenue Secretary
22 GST Council Shri Arjun Meena Under Secretary
23 GST Council Shri Nitin Deepak Agarwal Under Secretary
24 GST Council Shri Mahesh Singarapu Under Secretary
25 GST Council Shri Naveen Agrawal Under Secretary
26 GST Council Shri Karan Choudhary Under Secretary
27 GST Council Shri Sarib Sahran Superintendent
28 GST Council Ms Chanchal Soni Superintendent
29 GST Council Shri Abhishek Kumar Superintendent
30 GST Council Shri Rakesh Joshi Inspector
31 GST Council Shri Pankaj Bharadwaj Inspector
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32 GST Council Shri Vijay Malik Inspector
33 Andhra Pradesh Dr Rajath Bhargava Special Chief Secretary, Revenue
34 Andhra Pradesh Shri Peeyush Kumar Chief Commissioner of State Tax
35 Andhra Pradesh Shri K. Ravishankar Commissioner State Tax GST (FAC)
36 Andhra Pradesh Sri. J. V. M Sarma Joint Commissioner State Tax, GST
37
Arunachal
Pradesh
Shri Anirudh Singh Secretary, Tax and Excise
38
Arunachal
Pradesh
Shri Ando Pangkam DC (Legal)
39
Arunachal
Pradesh
Shri Kenmi Zirdo ST GST Cell
40
Arunachal
Pradesh
Shri T. Jamoh Inspector
41 Assam Shri Anurag Goel Commissioner of Taxes
42 Assam Shri Md. Shakeel Saadullah Joint Commissioner of Taxes
43 Assam Shri Bedabrata Saikia Inspector of Taxes
44 Chhattisgarh Ms Maninder Kaur Dwivedi Principal Secretary, Commercial Tax
45 Chhattisgarh Ms Ranu Sahu Commissioner of State Tax
46 Delhi Shri Sandeep Kumar Secretary, Finance
47 Delhi Shri Vivek Pandey Commissioner GST, State Tax
48 Delhi Shri C. Arvind Secretary to Dy CM
49 Delhi Shri Anand Kumar Tiwari Additional Commissioner, State Tax
50 Goa Shri Shashank Mani Tripathi Commissioner of Excise
51 Goa Ms Sarita S. Gadgil Additional Commissioner, State Tax
52 Gujarat Shri Pankaj Joshi Additional Chief Secretary, Finance
53 Gujarat Shri J. P. Gupta Chief Commissioner of State Tax
54 Haryana Shri Anurag Rastogi Principal Secretary, Excise & Taxation
55 Haryana Shri Shekhar Vidhyarthi Excise & Taxation Commissioner
56 Haryana Shri Rajeev Chaudhary Joint Excise and Taxation Commissioner
57
Jammu and
Kashmir
Dr. Arun Kumar Mehta Financial Commissioner, Finance
58
Jammu and
Kashmir
Shri P.K. Bhat Commissioner, State Taxes
59
Jammu and
Kashmir
Shri Waseem Raja Assistant Commissioner, State Taxes
60 Jharkhand Ms Vandana Dadel Secretary, Commercial Tax
61 Jharkhand Shri Santosh Kumar Vatsa Special Secretary, CTD
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62 Jharkhand Ms Akanksha Ranjan Commissioner, CTD
63 Jharkhand Shri Brajesh Kumar State Tax Officer
64 Kerala Shri Rajesh Kumar Singh Additional Chief Secretary (Finance)
65 Kerala Shri Anand Singh Commissioner of State Tax
66 Kerala Dr. Karthikeyan Special Commissioner, State Tax
67 Kerala Shri Abraham Renn Additional Commissioner, State Tax
68 Madhya Pradesh Ms Dipali Rastogi Principal Secretary, Commercial Taxes
69 Madhya Pradesh Shri Raghwendra Kumar Singh Commissioner, Commercial Taxes
70 Madhya Pradesh Shri Sudip Gupta Joint Commissioner, Commercial Taxes
71 Maharashtra Shri Manoj Saunik Additional Chief Secretary, Finance
72 Maharashtra Shri Rajgopal Devara Principal Secretary, Financial Reforms
73 Maharashtra Shri Sanjeev Kumar Commissioner of State Tax
74 Maharashtra Shri Kiran Shinde Deputy Commissioner of State Tax
75 Manipur Shri Charchit Gaur Commissioner of Taxes
76 Manipur
Shri Yumnam Indrakumar
Singh
Assistant Commissioner of Taxes
77 Meghalaya Ms S. A. Synrem
Commissioner & Secretary, Excise,
Registration, Taxation & Stamps
78 Meghalaya Shri L. Khongsit Additional Commissioner of Taxes
79 Meghalaya Shri K. War Deputy Commissioner of Taxes
80 Mizoram Shri Vanlal Chhuanga
Commissioner &Secretary , Taxation
Department
81 Mizoram Shri HK Lalhawngliana Joint Commissioner, Taxes
82 Mizoram Shri Hrangthanmawia ACT
83 Nagaland Shri Y Mhathung Murry Additional Commissioner of State Taxes
84 Odisha Shri Ashok K. K. Meena Principal Secretary, Finance
85 Odisha Shri Sushil Kumar Lohani Commissioner, CT & GST
86 Odisha Shri N. K. Rautray Special Secretary, Finance
87 Puducherry Shri Shurbir Singh Secretary (Finance)
88 Puducherry Shri L. Kumar Commissioner (ST)
89 Puducherry Shri. K. Sridhar Deputy Commissioner (ST)
90 Punjab Shri V. K. Garg
Advisor (Financial Resources) to Chief
Minister
91 Punjab Shri A. Venu Prashad Financial Commissioner (Taxation)
92 Punjab Shri Nilkanth S. Avhad Commissioner of State Taxes
93 Punjab Shri Ravneet Khurana Additional Commissioner (Audit)
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94 Punjab Ms Baldeep Kaur Deputy Commissioner of State Taxes
95 Rajasthan Shri Niranjan Arya Additional Chief Secretary (Finance)
96 Rajasthan Dr. Prithvi Raj Secretary, Finance (Revenue)
97 Rajasthan Shri Abhishek Bhagotia Chief Commissioner, State Taxes
98 Rajasthan Shri Ketan Sharma Special Commissioner (GST)
99 Sikkim Shri V.B. Pathak Additional Chief Secretary, Finance
100 Sikkim Shri J. D. Bhutia Secretary/Commissioner, CT
101 Tamil Nadu Shri S. Krishnan Additional Chief Secretary, Finance
102 Tamil Nadu Shri M. A. Siddique
Principal Secretary/Commissioner,
Commercial taxes
103 Tamil Nadu Dr.Beela Rajesh
Secretary, Commercial Taxes &
Registration
104 Telangana Shri Somesh Kumar Chief Secretary
105 Telangana Ms Neetu Prasad Commissioner, CT
106 Telangana Shri Laxminarayan Jannu Additional CCT
107 Telangana Shri N. Sai Kishore Joint CCT
108 Tripura Dr Vishal Kumar Chief Commissioner of State Tax
109 Tripura Dr Sudip Bhowmik Deputy Commissioner of State Tax
110 Tripura Shri Badal Baidya Assistant Commissioner of State Tax
111 Uttarakhand Shri Ahmed Iqbal Commissioner of State Tax
112 Uttarakhand Shri Anil Singh Additional Commissioner
113 Uttarakhand Dr Sunita Pandey Joint Commissioner
114 Uttarakhand Shri Anurag Mishra Joint Commissioner
115 Uttarakhand Shri S. S. Tiruwa Deputy Commissioner
116 Uttarakhand Shri Ranjeet Negi Assistant Commissioner
117 Uttar Pradesh Shri Alok Sinha APS/ACS, State Tax
118 Uttar Pradesh Ms Amrita Soni Commissioner, Commercial Tax
119 Uttar Pradesh Shri Sanjay Kumar Pathak
Joint Commissioner(GST), Commercial
Tax HQ
120 West Bengal Shri Manoj Pant Principal Secretary, Finance
121 West Bengal Ms Smaraki Mahapatra Secretary (Budget)
122 West Bengal Shri Devi Prasad Karanam Commissioner of State Tax
123 West Bengal Shri Khalid Aizaz Anwar Joint Secretary, Finance


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Agenda Item 2 – Deemed Ratification of Notifications and Circulars by the GST Council
In the 22nd meeting of the GST Council held at New Delhi on 06th 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 42nd meeting held on
05.10.2020 and 12.10.2020, the GST Council had ratified all the Notifications, Circulars, and Orders issued
up to 30.09.2020.
2. In this respect, the following Notifications and Circulars issued after 30.09.2020 till 18.05.2021
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/Circul
ar/Order Nos.
Description/Subject
Notification
under CGST
Act/CGST
Rules
Central
Tax
1. Notification No.
73/2020-Central Tax
dated 01.10.2020
Seeks to notify a special procedure for taxpayers for
issuance of e-invoices in the period 01.10.2020 -
31.10.2020.
2. Notification No.
74/2020-Central Tax
dated 15.10.2020
Seeks to prescribe the due date for furnishing FORM
GSTR-1 for the quarters October, 2020 to December,
2020 and January, 2021 to March, 2021 for registered
persons having aggregate turnover of up to 1.5 crore
rupees in the preceding financial year or the current
financial year.
3. Notification No.
75/2020-Central Tax
dated 15.10.2020
Seeks to prescribe the due date for furnishing FORM
GSTR-1 by such class of registered persons having
aggregate turnover of more than 1.5 crore rupees in the
preceding financial year or the current financial year, for
each of the months from October, 2020 to March, 2021.
4. Notification No.
76/2020-Central Tax
dated 15.10.2020
Seeks to prescribe return in FORM GSTR-3B of CGST
Rules, 2017 along with due dates of furnishing the said
form for October, 2020 to March, 2021.
5. Notification No.
77/2020-Central Tax
dated 15.10.2020
Seeks to make filing of annual return under section 44
(1) of CGST Act for F.Y. 2019-20 optional for small
taxpayers whose aggregate turnover is less than Rs 2
crores and who have not filed the said return before the
due date.
6. Notification No.
78/2020-Central Tax
dated 15.10.2020
Seeks to notify the number of HSN digits required on
tax invoice
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Act/Rules Type
Notification/Circul
ar/Order Nos.
Description/Subject
7. Notification No.
79/2020-Central Tax
dated 15.10.2020
Seeks to make the Twelfth amendment (2020) to the
CGST Rules.2017.
8. Notification No.
80/2020-Central Tax
dated 28.10.2020
Seeks to amend notification no. 41/2020-Central Tax
dated 05.05.2020 to extend due date of return under
Section 44 of CGST Act, 2017 till 31.12.2020.
9. Notification No.
81/2020-Central Tax
dated 10.11.2020
Seeks to notify amendment carried out in sub-section
(1), (2) and (7) of section 39 vide Finance (No.2) Act,
2019.
10. Notification No.
82/2020-Central Tax
dated 10.11.2020
Seeks to make the Thirteenth amendment (2020) to the
CGST Rules, 2017
11. Notification No.
83/2020-Central Tax
dated 10.11.2020
Seeks to extend the due date for FORM GSTR-1
12. Notification No.
84/2020-Central Tax
dated 10.11.2020
Seeks to notify class of persons under proviso to section
39(1) of CGST Act, 2017.
13. Notification No.
85/2020-Central Tax
dated 10.11.2020
Seeks to notify special procedure for making payment
of 35% as tax liability in first two month
14. Notification No.
86/2020-Central Tax
dated 10.11.2020
Seeks to rescind Notification 76/2020-Central tax dated
15.08.2020.
15. Notification No.
87/2020-Central Tax
dated 10.11.2020
Seeks to extend the due date for furnishing of FORM
ITC-04 for the period July- September 2020 till 30th
November, 2020.
16. Notification No.
88/2020-Central Tax
dated 10.11.2020
Seeks to implement e-invoicing for the taxpayers having
aggregate turnover exceeding Rs. 100 Cr from 01st
January 2021.
17. Notification No.
89/2020-Central Tax
dated 29.11.2020
Seeks to waive penalty payable for noncompliance of
the provisions of notification No.14/2020 – Central Tax,
dated the 21st March, 2020.
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Act/Rules Type
Notification/Circul
ar/Order Nos.
Description/Subject
18. Notification No.
90/2020-Central Tax
dated 01.12.2020
Seeks to make amendment to Notification no. 12/2017-
Central Tax dated 28.06.2017.
19. Notification No.
91/2020-Central Tax
dated 14.12.2020
Seeks to extend the due dates for compliances and
actions in respect of anti-profiteering measures under
GST till 31.03.2021.
20. Notification No.
92/2020-Central Tax
dated 22.12.2020
Seeks to bring into force Sections
119,120,121,122,123,124,126,127 and 131 of Finance
Act, 2020(12 of 2020).
21. Notification No.
93/2020-Central Tax
dated 22.12.2020
Seeks to waive late fee for FORM GSTR-4 filing in UT
of Ladakh for Financial year 2019-20.
22. Notification No.
94/2020-Central Tax
dated 22.12.2020
Seeks to make the Fourteenth amendment (2020) to the
CGST Rules, 2017.
23. Notification No.
95/2020-Central Tax
dated 30.12.2020
Seeks to extend the time limit for furnishing of the
annual return specified under section 44 of CGST Act,
2017 for the financial year 2019-20 till 28.02.2021.
24. Notification No.
01/2021-Central Tax
dated 01.01.2021
Seeks to make amendment (2021) to CGST Rules,
2017.
25. Notification No.
02/2021-Central Tax
dated 12.01.2021
Notifying amendment to jurisdiction of Central Tax
officers.
26. Notification No.
03/2021-Central Tax
dated 23.02.2021
Seeks to notify persons to whom provisions of sub-
section (6B) or sub-section (6C) of section 25 of CGST
Act, 2017 will not apply.
27. Notification No.
04/2021-Central Tax
dated 28.02.2021
Seeks to extend the time limit for furnishing of the
annual return specified under section 44 of CGST Act,
2017 for the financial year 2019-20 till 31.03.2021.
28. Notification No.
05/2021-Central Tax
dated 08.03.2021
Seeks to implement e-invoicing for the taxpayers having
aggregate turnover exceeding Rs. 50 crores from 01st
April 2021.
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Act/Rules Type
Notification/Circul
ar/Order Nos.
Description/Subject
29. Notification No.
06/2021-Central Tax
dated 30.03.2021
Seeks to waive penalty payable for non-compliance of
provisions of Notification No. 14/2020 dated 21st
March 2020.
30. Notification No.
07/2021-Central Tax
dated 27.04.2021
Seeks to make second amendment (2021) to CGST
Rules, 2017.
31. Notification No.
08/2021-Central Tax
dated 01.05.2021
Seeks to provide relief by lowering of interest rate for
the month of March and April, 2021.
32. Notification No.
09/2021-Central Tax
dated 01.05.2021
Seeks to amend notification no. 76/2018-Central Tax
dated 31.12.2018 in order to provide waiver of late fees
for specified taxpayers and specified tax periods.
33. Notification No.
10/2021-Central Tax
dated 01.05.2021
Seeks to extend the due date for filing FORM GSTR-4
for financial year 2020-21 to 31.05.2021.
34. Notification No.
11/2021-Central Tax
dated 01.05.2021
Seeks to extend the due date for furnishing of FORM
ITC-04 for the period Jan-March, 2021 till 31st May,
2021.
35. Notification No.
12/2021-Central Tax
dated 01.05.2021
Seeks to extend the due date of furnishing FORM
GSTR-1 for the month of April, 2021.
36. Notification No.
13/2021-Central Tax
dated 01.05.2021
Seeks to make third amendment (2021) to CGST Rules,
2017.
37. Notification No.
14/2021-Central Tax
dated 01.05.2021
Seeks to extend specified compliances falling between
15.04.2021 to 30.05.2021 till 31.05.2021 in exercise of
powers under section 168A of CGST Act, 2017.
38. Notification No.
15/2021-Central Tax
dated 18.05.2021
Seeks to make fourth amendment (2021) to CGST
Rules, 2017.

Central
Tax
(Rate)
1. Notification No.
05/2020-Central Tax
(Rate), dated
16.10.2020
To amend notification No. 12/2017- Central Tax (Rate)
so as to exempt satellite launch services provided by
ISRO, Antrix Co. Ltd and NSIL as recommended by
GST Council in its 42nd meeting held on 05.10.2020.
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Act/Rules Type
Notification/Circul
ar/Order Nos.
Description/Subject
Notifications
under
UTGST Act
Union
Territory
Tax
1. Notification No.
01/2021-Union
Territory Tax dated
01.05.2021.
Seeks to provide relief by lowering of interest rate for
the month of March and April, 2021.
Union
Territory
Tax
(Rate)
1. Notification No.
05/2020-Union
Territory Tax (Rate),
dated 16.10.2020
To amend notification No. 12/ 2017- Union Territory
Tax (Rate) so as to exempt satellite launch services
provided by ISRO, Antrix Co. Ltd and NSIL as
recommended by GST Council in its 42nd meeting held
on 05.10.2020.
Notifications
under IGST
Act
Integrated
Tax
1. Notification No.
06/2020 - Integrated
Tax dated
15.10.2020
Seeks to notify the number of HSN digits required on
tax invoice.
2. Notification No.
01/2021 – Integrated
Tax dated
01.05.2021
Seeks to provide relief by lowering of interest rate for
the month of March and April, 2021
Integrated
Tax
(Rate)
1. Notification No.
05/2020-Integrated
Tax (Rate), dated
16.10.2020
To amend notification No. 9/ 2017- Integrated Tax
(Rate) so as to exempt satellite launch services provided
by ISRO, Antrix Co. Ltd and NSIL as recommended by
GST Council in its 42nd meeting held on 05.10.2020.
Circulars under CGST
Act, 2017
1. Circular No.
142/12/2020-GST
dated 09.10.2020
Clarification of issues relating to application of sub-rule
(4) of rule 36 of the CGST Rules, 2017, cumulatively
for the months of February, 2020 to August, 2020.
2. Circular No.
143/13/2020-GST
dated 10.11.2020
Clarification regarding the provisions relating to
Quarterly Return Monthly Payment (QRMP) Scheme
3. Circular No.
144/14/2020-GST
dated 15.12.2020
Waiver from recording of UIN on the invoices for the
months of April, 2020 to March, 2021.
4. Circular No.
145/01/2021-GST
dated 11.02.2021
Standard Operating Procedure (SOP) for
implementation of the provision of suspension of
registrations under sub-rule (2A) of rule 21A of CGST
Rules, 2017.
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Act/Rules Type
Notification/Circul
ar/Order Nos.
Description/Subject
5. Circular No.
146/02/2021-GST
dated 23.02.2021
Clarification in respect of applicability of Dynamic
Quick Response (QR) Code on B2C invoices and
compliance of notification 14/2020- Central Tax dated
21st March, 2020.
6. Circular No.
147/03/2021-GST
dated 12.03.2021
Seeks to clarify certain refund related issues.
7. Circular No.
148/04/2021-GST
dated 18.05.2021
Seeks to prescribe Standard Operating Procedure (SOP)
for implementation of the provision of extension of time
limit to apply for revocation of cancellation of
registration under section 30 of the CGST Act, 2017 and
rule 23 of the CGST Rules, 2017.

3. The GST Council may grant deemed ratification to the Notifications and Circulars as detailed
above.












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Agenda Item 3: Decisions of the GST Implementation Committee (GIC) for information of the GST
Council.
The GST Implementation Committee (GIC) took certain decisions between 9th September 2020 and
1st May 2021. Due to the urgency involved and due to prevailing Covid-19 situations most of the decisions
were taken after obtaining approval by circulation amongst GIC members. There were only three meetings
of GIC viz. the 36th meeting held on 03rd November 2020, the 37th GIC meeting held on 15th December
2020 and the 38th GIC meeting held on 12th January 2021. The details of the decisions taken are given
below:
Decisions of GIC by circulation on 14 September 2020
Agenda Note 1: Reduction in late fee for non-filing of FORM GSTR-4 for the quarterly tax periods
from July 2017 to March 2019 & FORM GSTR 10 - One-time amnesty to clean up pendency in return
filing in GST regime

2.1 In the Agenda Note it had been mentioned that based on the recommendations of the GST Council,
waiver/reduction in late fee for not furnishing FORM GSTR-3B for tax periods July 2017 to January 2020
has been provided vide Notification No.52/2020 -Central Tax dated 24.06.2020. It provides for:
i. Zero late fee for taxpayers, who did not have any tax liability for the said tax periods and are thus required
to file NIL return;
ii. A late fee of fifty rupees per day (Rs. 25/- under CGST Act plus Rs 25/- under SGST Act) for non-filing
of returns as currently applicable subject to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST)
per return as against ceiling of Rs. 10000/- (Rs. 5000/- each for CGST & SGST) at present by taxpayers
other than those having NIL liability; subject to the condition that the returns are filed between 01.07.2020
to 30.09.2020

2.2 It is stated that representations have been received from trade & industry seeking similar
waiver/reduction of late fee for delay in filing return in FORM GSTR-4 by composition taxpayers. The
filing percentage of FORM GSTR-4, as on 18th August 2020, is as below:
Quarter ending Eligibility Filed %age of Filing
Sep'17 11,41,565 10,22,994 89.61%
Dec'17 17,24,344 15,33,819 88.95%
Mar'18 19,31,061 15,91,018 82.39%
Jun'18 17,66,630 15,69,195 88.82%
Sep'18 17,74,379 15,34,021 86.45%
Dec'18 17,57,919 14,92,068 84.88%
Mar'19 17,52,540 14,38,572 82.08%
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2.3 It is noted that in the past late fee waiver of GSTR-3B and GSTR-4 have been given together, GST
Council may deliberate whether in view of such high percentage of GSTR-4 filing, late fee waiver/capping
at Rs. 500 is required at this stage. A request on these lines has been received from Tax Bar Association,
Amravati, Maharashtra, and multiple such requests have been made through social media platforms also.

2.4 It is further noted that representations have also been received seeking waiver/reduction in late fee
in furnishing FORM GSTR-10 (final return). Under section 45, every registered person who is required to
furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish
a final return within three months of the date of cancellation or date of order of cancellation, whichever is
later, in FORM GSTR-10. For delay in filing final return in FORM GSTR-10 also, a late fee is levied
under section 47 amounting to one hundred rupees every day for each of CGST and SGST subject to a
maximum amount of five thousand rupees for each tax thus applicable late fee is Rs. 200 per day, subject
to a maximum of Rs. 10,000.

2.5 These requests were deliberated by the Law Committee in its meeting held on 02.09.2020, wherein
following has been recommended:
•late fee for non-filing of FORM GSTR-4 for 2017-18 and 2018-19 be capped to a maximum of Rs 500/-
(Rs. 250/- each for CGST & SGST) per return and completely waived for taxpayers filing NIL
FORM GSTR-4, subject to the condition that the returns are filed between 20.09.2020 to 31.10.2020;
•late fee for non-filing of FORM GSTR-10 (Final Return) be capped to a maximum of Rs 500/- (Rs. 250/-
each for CGST & SGST), subject to the condition that the returns are filed between 20.09.2020 to
31.12.2020.

Agenda Note 2: One time extension for the time limit under Section 31(7) of the CGST Act 2017
for the purpose of Re-import of goods exported on consignment basis

3.1 In the said Agenda Note reference was invited to representations received from Gems and Jewellery
Export Promotion Council [GJEPC] requesting an extension of time for issue of invoice in respect of
consignment exports/sales on approval basis, specially where such goods were sent abroad and where it
hasn’t been possible to get the same back within prescribed time limits due to non-availability of regular
flights. The related provisions are contained in sub-section (7) of section 31 of the CGST Act 2017. The
same is reproduced hereunder:
“(7) Notwithstanding anything contained in sub-section (1), where the goods being sent or taken
on approval for sale or return are removed before the supply takes place, the invoice shall be issued
before or at the time of supply or six months from the date of removal, whichever is earlier.
Explanation.––For the purposes of this section, the expression “tax invoice” shall include any
revised invoice issued by the supplier in respect of a supply made earlier.”.
3.2 It is noted that GJEPC has represented that due to the current situation of outbreak of COVID-19
pandemic, import and export activities are disrupted everywhere, and it has become practically impossible
to re-import the goods sent on consignment/approval basis within the stipulated period of six months. A
Similar challenge is being faced in respect of goods sent locally on approval basis, which are not sold. The
compliance related relaxation provided by the Government under section 168A of the CGST Act has
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excluded section 31 from its ambit, and therefore they have requested that compliances relating to section
31(7) may be relaxed starting from 1st February, 2020.

3.3 It is further submitted that notification No. 35/2020-Central Tax, dated 03.04.2020, which was
issued under section 168A of the CGST Act to provide an extension in the due date of compliances due to
the Covid-19 pandemic, contained an exclusion clause wherein, inter-alia, Chapter IV (time and value of
supply) and section 31 are excluded. Accordingly, if any goods sent on approval for sale basis are not
returned within a period of six months, then the invoice shall be issued on completion of six months from
the date of removal. Further, the lockdown, resulting in restriction in movement of persons / goods was
ordered by the Government with effect from 20th March, 2020.

3.4 The issue was deliberated by the Law Committee in its meeting held on 19.08.2020 and 02.09.2020.
The Law Committee recommended that the relaxation in compliances under section 31(7) be restricted to
goods which have been sent out of India for sale on approval basis, and the said relaxation may not be
extended to goods sent on approval basis within India. The Law Committee further recommended that the
relaxation may be provided to all goods and may not be limited to Gems and Jewellery alone. The Law
Committee has recommended extension of compliances under section 31(7) till 31.10.2020

3.5. The proposals were put before the GIC and the GIC approved the proposals.

Decisions of GIC by circulation on 23 September 2020
Agenda Note 1: GST exemption on transport of goods by air which is currently valid till 30.09.2020
may be extended till 30.09.2021.

4.1 In the Agenda Note it had been mentioned that Air Cargo Agents Association of India has requested
that GST exemption on transport of goods by air which is currently valid till 30.09.2020 may be extended
till 30.09.2021.

4.2 The services by way of transportation of goods by air or by sea from customs station of clearance
in India to a place outside India are currently exempt from GST till 30.09.2020 [entry 19A & 19B of
notification No. 12/2017-CT(R) refer]. Upon the recommendation of the 25th GST Council held on
18.01.2018 the exemptions were initially given on 25.01.2018 valid till 30.09.2018 in view of the reported
delays faced by exporters in getting refund of GST paid on the transport of export goods.

4.3 The validity of the exemptions was subsequently extended twice by one year on each occasion as
recommended by the 28th and 37th GST Council Meetings and the same are currently valid till 30.09.2020.

4.4 Keeping in view the present situation, post Covid, withdrawal of this exemption at this stage would
cause hardship to exporters in terms of cash flow with no significant gains to revenue as the GST so
collected shall have to be refunded to exporters, being as it relates to exports. Further, civil aviation sector
is going through rough patch and airlines have defaulted in payment of GST. Hence, at this stage it would
be appropriate to extend the exemption by another year, i.e. upto 30th September 2021. As such there is no
revenue implication of the proposal as the services are creditable and the exporter is entitled to take refund
of GST paid on them.
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4.5 Therefore, an agenda note was circulated to the Fitment Committee on 10.09.2020 for comments
on the proposal to extend GST exemption on services by way of transportation of goods by air or by sea
from customs station of clearance in India to a place outside India by one more year upto 30th September,
2021. All member-states of the fitment committee have expressed their concurrence to the proposal.

4.5.1 Maharashtra while approving the proposal has stated as under:
“This exemption has been extended twice in the past. As explained aforesaid if there is no revenue
implication then it is the considerate view of the State Tax Department that instead of extending
the exemption benefit every year, we should grant permanent exemption on such services.”

4.6 Exporters are entitled to refund of GST paid on export freight. As such there is no loss on account
of the said exemption. However, this does affect the cash flow and interest income of the Government.
Moreover, it is always desirable in a VAT system to keep exemptions to the minimum and ensure integrity
of the ITC chain. Therefore, it is proposed that for the time being, on account of the unprecedented situation
due to Covid, we may extend the exemption by one more year upto 30.09.2021.

4.7 Since the present exemptions were expiring on 30.09.2020 and the next GST Council meeting was
scheduled on 05.10.2020, it was proposed that GIC may recommend extension of the exemptions in
question by one year, i.e. upto 30.09.2021.

4.8. The proposal was put before the GIC and the GIC approved the proposal.

Agenda Note 2: E-invoice: Enabling provision for power to exempt issuance of e-invoice on the
recommendation of the Council and related issues.

5.1 In the said Agenda Note, reference was invited to Sub-rule (4) and (5) of rule 48 of the Central
Goods and Services Tax Act, 2017 (CGST Act) which prescribe for issuance of e-invoice. The same are
reproduces hereunder:
“(4)The invoice shall be prepared by such class of registered persons as may be notified by the
Government, on the recommendations of the Council, by including such particulars contained
in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information
contained therein on the Common Goods and Services Tax Electronic Portal in such manner and
subject to such conditions and restrictions as may be specified in the notification.

(5)Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the
manner specified in the said sub-rule shall not be treated as an invoice.”

5.2 GSTN has conducted various webinars on the e-invoice and has presented various issues raised by
the stakeholders before the Law committee. One of the concerns raised was that in the existing rule there is
no provision of exemption from e-invoice if there is interruption on account of internet connectivity or
some other reasons.
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5.3 The issue was deliberated in the Law Committee in its meeting held on 19.08.2020. It was discussed
that the temporary glitches like internet connectivity, power failure etc. would not be a cause of concern for
taxpayers as the details of the invoices can be submitted on IRP portal within 24 hours. The concern is when
there are issues related to natural calamities like flood, cyclone etc. where the disruption is for a longer
period. Law Committee recommended to have provision in the rule to cater to such situations and
accordingly recommended to insert a proviso to sub-rule (4) of rule 48 whereby Government may issue
notification to exempt such class of registered person from e-invoicing for specified time period. The draft
proviso proposed to be inserted is as below:
“Provided that the Commissioner may, on the recommendations of the Council, by notification,
exempt a person or a class of registered persons from issuance of invoice under this sub-rule for a
specified period, subject to such conditions and restrictions as may be specified in the said
notification.”.

5.4 It was further mentioned that notification under sub-rule (4) of rule 48 was issued vide notification
No. 13/2020-Central Tax, dated 21.03.2020, to specify the class of taxpayers required to issue e-invoice. It
was amended vide notification No. 61/2020 - Central Tax, dated the 30.07.2020. The notification as
amended is reproduced as below:
“In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services
Tax Rules, 2017(hereinafter referred as said rules), the Government on the recommendations of
the Council, and in supersession of the notification of the Government of India in the Ministry of
Finance, Department of Revenue No. 70/2019-Central Tax, dated the 13th December, 2019,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number
G.S.R. 926(E), dated the 13th December, 2019, except as respects things done or omitted to be
done before such supersession, hereby notifies registered person, other than a Special Economic
Zone unit and those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules,
whose aggregate turnover in a financial year exceeds five hundred crore rupees, as a class of
registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule
(4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered
person.

2. This notification shall come into force from the 1st October, 2020.”

5.5 While discussing various doubts raised by taxpayers during webinars conducted by GSTN, the
following issues have been noticed in the notification No 13/2020-CT which were deliberated in the Law
committee:
i.The Eligibility i.e. “aggregate turnover in a financial year” will include present financial year
also and hence is a dynamic concept. This will be difficult to monitor, and therefore, Law
Committee recommended that “aggregate turnover in a financial year” may be substituted with
“aggregate turnover in any preceding financial year since 2017-18”. Therefore, notification
may be amended to this effect.
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ii.E-invoice is required for supply of goods or services or both to a registered person i.e. for B2B
transactions. Law committee has recommended export invoice may be explicitly be mentioned
in the notification itself. Accordingly, notification may be amended to this effect.

5.6 Accordingly, it was proposed to amend the said Notification. The proposed draft amendment in the
notification is shown (in red) as below:
“In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services
Tax Rules, 2017(hereinafter referred as said rules), the Government on the recommendations of
the Council, and in supersession of the notification of the Government of India in the Ministry of
Finance, Department of Revenue No. 70/2019-Central Tax, dated the 13th December, 2019,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number
G.S.R. 926(E), dated the 13th December, 2019, except as respects things done or omitted to be
done before such supersession, hereby notifies registered person, other than a Special Economic
Zone unit and those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose
aggregate turnover in a financial year any preceding financial year since 2017-18 exceeds five
hundred crore rupees, as a class of registered person who shall prepare invoice and other
prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of
goods or services or both to a registered person or for exports”.

5.7. The proposals were put before the GIC and the GIC approved the proposals.

Agenda Note 3: Extension of due date for filing Annual Return for Financial Year 2018-19.
6.1 In the Agenda Noteit had been mentioned that the last date for filing Annual returns specified under
section 44 of the CGST Act for the Financial year 2018-19 was extended till 30thSeptember, 2020 vide
Notification No. 41/2020 – Central Tax dated 5th May, 2020.
6.2 An agenda note was placed before the Law Committee in its meeting held on 17thSeptember, 2020
regarding extension of due dates for filing of Annual Return for Financial Year 2018-19. A comparison of
the Annual Return filing data (as on 17.09.2020) for Financial Years 2017-18 and 2018-19 is detailed in the
table below:
GSTR – 9
(as on
17.09.2020)
FY 2017-18 FY 2018-19
Eligibility 92,58,899 92,58,899*
Returns Filed 42,86,584 514167
Return Filing % 46.30% 5.55%

6.3 It was observed from the relevant data that for the FY 2017-18, as on 17.09.2020, approximately
46.3% of the eligible taxpayers have furnished their Annual Return. Further, the return filing percentage of
the FY 2018-19, as on 17.09.2020, was comparatively very low, 5.55 % of eligible taxpayers i.e. only
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5,14,167 taxpayers have furnished their Annual Returns in FORM GSTR-9. As detailed above, the due date
for furnishing Annual Return for FY 2018-19 is 30th September, 2020.
6.4 The Law Committee in its meeting held on 17thSeptember, 2020 (via Video Conferencing)
deliberated on the issue of extension of due dates for filing of Annual Return for the Financial Year 2018-
19. Considering the low annual return filing percentage for the Financial Year, 2018-19, the Law Committee
recommended that the due date for filing of Annual Return for Financial Year 2018-19 may further be
extended to 31stOctober, 2020.
6.5. The proposals were put before the GIC and the GIC approved the proposals.

6.6 On 23-10-2020 a proposal was moved by the Principal Commissioner, GST Policy Wing, CBIC,
that:
“Madam/Sir,
In view of the challenges faced by taxpayers and tax auditors in furnishing Annual Return and
Reconciliation Statement for 2018-19 in FORM GSTR 9 and GSTR 9C due to pandemic related
lockdown in various parts of the country since March 2020, it is proposed to extend the due date
further beyond 31st October 2020 to 31st December 2020. Request your concurrence asap.
Regards
Yogendra Garg”

6.7 All the Members of GIC concurred with the proposal to extend the due date further upto 31-12-
2020. Due to urgency, a Press release in this regard was issued on 24-10-2020.
6.8 The proposal was reduced to writing and formal approval of the Competent Authority was taken
on 27-10-2020.
6.9 The proposal was put before the GIC and the GIC approved the proposal.

GIC Decision by Circulation- 25 September 2020
Agenda Note: Rules amendments for the smooth implementation of e-invoice.
7.1 In the Agenda Note it has been mentioned that Under rule 48(4) of CGST Rules, 2017, it has been
prescribed that supplier before issuance of an invoice will send certain specified particulars of it included
in Form INV-01 to Invoice Reference Portal (IRP) and will obtain Invoice Reference Number (IRN), for
the invoice.
7.2 When the rule for e-way bill was framed, under 138A(2) of CGST Rules, 2017 it was envisaged
that there will be a portal on which any invoice would get reported, and an IRN for that invoice will be
generated. In such case, no physical copy of such reported invoice will be required to be carried along with
conveyance during movement, and such IRN will be valid only for 30 days from the day it was reported.
However, with the burgeon of rule 48(4), the formulation of rule 138A(2) itself has become infructuous.
Therefore, the sub rule (2) of rule 138A may be redrafted in order to remove contradiction with rule 48(4)
and the requirement of carrying physical copy of invoice issued in a manner prescribed under rule 48(4) of
the said rule may be waived off.
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7.3 In case invoice is issued in a manner prescribed under rule 48(4) of said rule, the notified supplier
gets IRN after uploading certain specified particulars of it in Form INV-01 to Invoice Reference Portal
(IRP). During the Law Committee meeting held on 19.08.2020, it was recommended that rule 138A(2) may
be redrafted in view of the QR code, having embedded IRN in it so that in lieu of the physical copy of the
such invoice, producing QR code for verification shall be sufficient. Draft approved by the Law Committee
for the rule 138A(2) is as follows:
‘In case, invoice is issued in the manner prescribed under sub-rule (4) of rule 48, the Quick
Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be produced
electronically, for verification by the proper officer in lieu of the physical copy of such tax invoice.’
7.4 It was proposed that rule 138A(2) may be substituted as proposed above.
7.5 Further, During the Law Committee meeting on 13.08.2020 FAQs on e-invoice were discussed,
wherein it was learnt that IRN is a unique 64-character hash, typically it looks like e.g.
35054cc24d97033afc24f49ec4444dbab81f542c555f9d30359dc75794e06bbe
Hence manual feeding of the same in machine for the purpose of printing of the same on the invoice or for
verification may lead to human errors. Therefore, Law Committee vide FAQ no. 35 had recommended that
printing of QR code may be made mandatory in place of IRN in case of e-invoice.
7.6 Rule 46 of CGST Rules, 2017 prescribes all particulars which are required to be included on the
invoice. In view of the above, it was proposed that a clause (r) may be inserted in rule 46 below clause (q)
for the same. Draft for clause (r) is as follows:
(r) Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice
has been issued in the manner prescribed under sub-rule (4) of rule 48.
7.7. The proposal was put before the GIC and the GIC approved the proposal.

GIC Decision by Circulation- 29 September 2020
Agenda Note: Date extension for the implementation of Quick Response (QR) Code in B2C invoice.
8.1 In the Agenda Note it has been mentioned that vide notification No. 72/2019-Central Tax dated
13.12.2019 it was notified that every registered person whose aggregate turnover exceeds ₹ 500 Crores in
a financial year, is mandatorily required to capture a Quick Response (‘QR’) code on every tax invoice
issued to unregistered customers, i.e. for B2C supplies, along with other mandatory fields required on such
tax invoices with effect from 1st April, 2020.
8.2 For the smooth implementation of QR code, National Payment Corporation of India (NPCI) was
required to come up with detailed guidelines for QR code generation. NPCI was also mandated to create
awareness among the trade about the implementation of QR code in B2C invoices. It has been bought to
the notice that NPCI hasn’t had an adequate engagement in this regard with the trade. In view of the above
on the recommendations of GST Council in its 39th meeting held on 13-14th March 2020 the date of
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implementation of QR code was deferred till 01st October 2020 vide issuance of notification no. 14/2020-
Central Tax dated 21st March 2020 in this effect. This issue had been discussed with NPCI and also in the
GST Core Group meeting multiple times.
8.3 As the trade had still been representing, as directed by the Finance Secretary a meeting was taken
by the Chairman CBIC with NPCI and Banks on 23.09.2020. NPCI informed that:
(i) The technology/APIs for the same were to be shared by NPCI which they have shared with respective
banks way back on 14th February 2020;
(ii) The Banks need to integrate and send on software for this purpose which they are not willing in the
absence of MDR;
(iii) The requirement to generate a dynamic QR code by the POS machine of the supplier is software
updation and alignment between the acquirer’s bank software, payee bank software and NPCI software.
(iv) Till date, only Axis Bank had started the integration and certification with NPCI and, no other bank
had completed the certification process with NPCI.
8.4 NPCI further informed that the integration process might take 30 days’ time and the process of QR
code for B2C invoice can be implemented even if 10 banks are onboard.
8.5 Almost all the bankers present in the meeting informed that they had initiated the process but that
they would take time to complete the integration and certification process. Punjab National Bank informed
that they would initiate the process after their merger process gets completed sometimes in December 2020.
8.6 It also came out in the meeting that changes would also need to be made in the third-party UPI
applications used by the consumers for making payments. As such, it came out that the rolling out of
dynamic QR code on the B2C invoices would take some more time- at least 2 months at the bare minimum.
8.7 The issue was earlier discussed in the Law committee held on 13th August 2020, and the committee
had recommended the deferment of the same. In view of the above, it was felt that the date of
implementation of QR code on B2C invoices might be deferred by at least two more months i.e. till 1st
December 2020.
8.8 Furthermore, Notification No. 72/2019-Central Tax dated 13.12.2019 was issued to specify the
class of taxpayers required to issue QR Code. It was amended vide notification No. 14/2020 - Central Tax,
dated the 30.07.2020. The notification as amended is reproduced as below:
“………hereby notifies that an invoice issued by a registered person, whose aggregate turnover in
a financial year exceeds five hundred crore rupees, other than those referred to in sub-rules (2),
(3), (4) and (4A) of rule 54 of said rules, and registered person referred to in section 14 of the
Integrated Goods and Services Tax Act, 2017, to an unregistered person (hereinafter referred to
as B2C invoice), shall have Dynamic Quick Response (QR) code
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Provided that where such registered person makes a Dynamic Quick Response (QR) code available
to the recipient through a digital display, such B2C invoice issued by such registered person
containing cross-reference of the payment using a Dynamic Quick Response (QR) code, shall be
deemed to be having Quick Response (QR) code.
2. This notification shall come into force from the 1st day of October, 2020.”
8.9 While discussing various doubts raised by taxpayers during webinars conducted by GSTN in the
context on e-invoice, it was deliberated in the Law committee that the Eligibility i.e. “aggregate turnover
in a financial year” will include present financial year also and hence is a dynamic concept. This will be
difficult to monitor, and therefore, Law Committee recommended that “aggregate turnover in a financial
year” may be substituted with “aggregate turnover in any preceding financial year since 2017-18”.
Therefore, the notification may be amended to this effect.
8.10 The proposal was put before the GIC and the GIC approved the proposal.
Decision by Circulation – 09 October 2020
Agenda Note 1: Clarification relating to application of sub-rule (4) of rule 36 of CGST Rules, 2017
for the months of February 2020 to August, 2020.
9.1 In the Agenda Note it has been mentioned that vide Circular No. 123/42/2019 – GST dated 11th
November, 2019, various issues relating to implementation of sub-rule (4) of rule 36 of the Central Goods
and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules) regarding availment of input tax
credit (ITC) in respect of invoices or debit notes, the details of which have not been uploaded by the
suppliers under sub-section (1) of section 37of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the CGST Act) were clarified.
9.2 Considering the situation prevailing in view of measures taken to contain the spread of COVID-19
pandemic, it had been specified , vide notification No. 30/2020-CT, dated 03.04.2020, that the condition
made under rule 36(4) of the CGST Rules shall apply cumulatively for the tax period February, March,
April, May, June, July and August, 2020 and that the return in FORM GSTR-3B for the tax period
September, 2020 should be furnished with the cumulative adjustment of input tax credit for the said months.
9.3 To ensure uniformity in the implementation of the said provisions across the field formations, it
was proposed to issue a Circular to clarify various issues arising out of implementation of the said
Notification. It was proposed to re-iterate that the clarifications issued earlier vide Circular No. 123/42/2019
– GST dated 11.11.2019 shall still remain applicable, except for the cumulative application as prescribed
in proviso to sub-rule (4) of rule 36 of the CGST Rules. Accordingly, all the taxpayers should be advised
to ascertain the details of invoices uploaded by their suppliers under sub-section (1) of section 37 of the
CGST Act for the periods of February, March, April, May, June, July and August, 2020, till the due date
of furnishing of the statement in FORM GSTR-1 for the month of September, 2020 as reflected in GSTR-
2As.
9.4 Taxpayers may also be advised to reconcile the ITC availed in their FORM GSTR-3Bs for the
period February 2020 to August, 2020 with the details of invoices uploaded by their suppliers for the said
months, till the due date of furnishing FORM GSTR-1 for the month of September, 2020. The cumulative
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amount of ITC availed for the said months in FORM GSTR-3B should not exceed 110% of the cumulative
value of the eligible credit available in respect of invoices or debit notes the details of which have been
uploaded by the suppliers under sub-section (1) of section 37 of the CGST Act, till the due date of furnishing
of the statements in FORM GSTR-1 for the month of September 2020.
9.5 It was also proposed to clarify that availability of 110% of the cumulative value of the eligible
credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers
under sub-section (1) of section 37 of the CGST Act does not mean that the total credit can exceed the tax
amount as reflected in the total invoices for the supplies received by the taxpayer i.e. the maximum credit
available in terms of provisions of Section 16 of the CGST Act. Also the excess ITC availed arising out of
reconciliation during this period, if any, shall be required to be reversed in Table 4(B)(2) of FORM GSTR-
3B, for the month of September, 2020. Failure to reverse such excess availed ITC on account of cumulative
application of sub-rule (4) of rule 36 of the CGST Rules would be treated as availment of ineligible ITC
during the month of September, 2020.
9.6 The proposal was put before the GIC and the GIC approved the proposal.
Agenda Note 2: Annual Return (GSTR-9) and Reconciliation Statement (GSTR 9C) for FY 2018-19
10.1 In the Agenda Note it has been mentioned that vide Notification No. 69/2020 – Central Tax, dated
30.09.2020, the due date for furnishing of the Annual return for the FY 2018-19 had been extended till
31.10.2020.
10.2 Certain representations have been received stating that the auto populated GSTR 9 for the year
2018-19 (Tables 4, 5, 6 and 7) also includes the data for FY 2017-18. However, this information for FY
2017-18 had already been furnished by the taxpayers in the annual return (GSTR9) filed for FY 2017-18
and there was no mechanism to show the split of two years (2017-18 & 2018-19) in FORM GSTR-9 for
2018-19.
10.3 In this regard, it was proposed to clarify through issuance of a press release that the taxpayers are
required to report only the values pertaining to Financial Year 2018-19 in the annual return for FY 2018-
19 and that values pertaining to Financial Year 2017-18, which might have already been reported or
adjusted, were to be ignored. No adverse view should be taken in cases where there are variations in returns
for taxpayers who have already filed their GSTR-9 of Financial Year 2018-19 by including the details of
supplies and ITC pertaining to Financial Year 2017-18 in the Annual return for FY 2018-19. It was also
proposed to emphasize that furnishing of the Annual return in FORMGSTR-9/9A is mandatory only for
taxpayers with aggregate annual turnover above Rs. 2 Cr. while reconciliation statement in FORM GSTR-
9C is to be furnished only by the registered persons having aggregate turnover above Rs. 5 Cr.
10.4 The proposal to issue the press release was placed before the GIC and the GIC approved the
proposal.
Decisions and Minutes of the 36th GIC Meeting held on 03rd November 2020
11. The 36th Meeting of the GST Implementation Committee (GIC) was held via Cisco WebEx on 03rd
November 2020 from 11:00 am onwards
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12. The agenda items were circulated through email among Members of GIC, were discussed and
decisions taken are as under:
Agenda Item 1: Quarterly Return and Monthly Payment Scheme

13.1 The proposal before the GIC for approval was based on the recommendation of the GST Council.
In its 42nd meeting held on 5th October 2020, the GST Council had recommended a Quarterly Return and
Monthly Payment Scheme for registered persons having turnover up to Rs.5 Crore, with a slightly modified
approach based on existing return system itself. It was recommended that the scheme be implemented with
effect from 01.01.2021. As approved by the council earlier in this regard, under the proposed approach also
such registered persons will have option to file quarterly GSTR-1 and GSTR-3B. Payment of tax for month
M1 and M2 of the quarter will be through normal challan PMT-06 representing their liability (net of ITC)
for the month.

13.2 Agenda note was placed before the GIC for deliberation and approval of Rules, Notifications and
Circular for implementation of the recommendations of the GST Council. It was proposed to issue Rules,
Circular and notifications at an early date so that all the taxpayers were informed well in advance before
the scheme gets rolled out. Any feedback received, within the contours of the scheme, could then be
deliberated and resolved before 1st January 2021.

13.3 Decision: The GIC approved the five draft Notifications and draft amendments to Rules dealing
with return subject to vetting by Ministry of Law & Justice. GIC also approved the draft Circular on
Quarterly Return and Monthly Payment Scheme.
Agenda Item No.2: Agenda for mandatorily furnishing HSN Code at 8-digit level in invoice and
Form GSTR-1 for 32 scheduled chemicals of Chemical Weapon Convention
14.1 The proposal before the GIC for approval was based on the recommendation of the Law
Committee meeting held on 25.06.2020 that mandate 8-digit HSN Code for all categories of notified
supplies for all classes of taxpayers both in invoice and in FORM GSTR-1. Further, GST Council in its
42nd meeting held on 05.10.2020 recommended to amend proviso to rule 46 of the CGST Rules, 2017 to
seek HSN Code for a class of supplies irrespective of turnover in the invoice. The said amendment was
done vide Notification No. 79/2020-Central Tax dated 15.10.2020.
14.2 In view of the above it was proposed to –
(i) issue a notification under proviso of rule 46 to notify that for the said chemicals, HSN Code at 8-
digit level shall be provided in the invoice.
(ii) amend instruction no. 16 & 17 of FORM GSTR-1 so as to make HSN code at 8-digit level made
mandatory for the supply of said chemicals.

14.3 Decision: The GIC, approved to:

(i) issue a notification under proviso of Rule 46 of CGST Rules 2017 to notify that for the said chemicals,
HSN Code at 8-digit level shall be provided in the invoice, and
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(ii) amend concerned instruction in Form GSTR-1 so as to make HSN code at 8-digit level made mandatory
for the supply of said chemicals.

Agenda Item No.3: Extension of due date for filing Form GST ITC-04 for the July 2020-September
2020.
15.1 The proposal before the GIC for approval was that GSTN has vide email dated 25th October,2020
informed that the taxpayers are not able to file their quarterly statement GST ITC-04 under rule 45 of the
CGST Rules 2017, for furnishing details of goods sent for job work, received back or supplied from the
premises of job worker etc for the quarter July,2020 - September 2020 which was due date on 25th
October, 2020.
15.2 Hence, in view of above, it was proposed that the due date for filing of FORM ITC-04 for the
July- September 2020 may be extended till 30thNovember 2020 so that taxpayers are able to file the said
statement. Accordingly, the approval of GIC was sought for the proposal above.

15.3 Decision: The GIC approved the proposal and the Draft Notification for extension of the due date
for filing of Form ITC-04 for the Quarter July-September 2020, to 30th November 2020.

Agenda Item No.4: Roll out second phase of e-invoicing for the taxpayers having aggregate turnover
exceeding Rs.100 crores from 01st January 2021.

16.1 In the agenda note before GIC, it was mentioned that e-invoicing for B2B supplies by taxpayers
having aggregate turnover above Rs 500 crore in any of the preceding financial years from 2017-18
onwards, with few exemptions, has already been mandated with effect from 1st October 2020 vide
Notification no. 13/2020-Central Tax dated 21st March, 2020 read with Notification 61/2020-Central Tax,
dated 30th July, 2020.

16.2 It was proposed that from 01st January 2021 second phase of e-invoicing may be rolled out for the
taxpayers having aggregate annual turnover exceeding Rs. 100 Cr. in any of the preceding financial years
from 2017-18 onwards. It was further proposed that a press release may be issued to inform taxpayers of
next phase well in advance.

16.3 The proposal was put before the GIC and the GIC approved the proposal.

Decision by Circulation – 29 November 2020
Agenda Note: Waiver of penalty for issuing invoice without dynamic QR Code from 01.12.2020 to
31.03.2021.
18.1 In the Agenda Note it has been mentioned that vide notification No. 72/2019-Central Tax dated
13.12.2019 it was notified that every registered person whose aggregate turnover exceeds 500 Crores in a
financial year, was mandatorily required to capture a Quick Response (‘QR’) code on every tax invoice
issued to unregistered customers, i.e. for B2C supplies, along with other mandatory fields required on such
tax invoices with effect from 1st April 2020.
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18.2 It was further stated that the requirement of issuing invoice having QR code emanates from the
sixth proviso to rule 46, which reads as below:
“Provided also that the Government may, by notification, on the recommendations of the Council,
and subject to such conditions and restrictions as mentioned therein, specify that the tax invoice
shall have Quick Response(QR) Code.”
18.3 Accordingly, notification No 14/2020-Central Tax, dated 21st March 2020 had been issued which
requires dynamic QR code on B2C invoice issued by taxpayers having aggregate turnover more than 500
crore rupees, w.e.f 01.12.2020. Non-issuance of B2C invoice with QR code by the said class of registered
person u/s 125 of the CGST Act, 2017 would result in a general penalty up to twenty-five thousand rupees.
However, the Government has the power to waive the penalty under section 128 of the CGST Act, 2017
that reads as stated below:
“128. The Government may, by notification, waive in part or full, any penalty referred to in section
122 or section 123 or section 125 or any late fee referred to in section 47 for such class of taxpayers
and under such mitigating circumstances as may be specified therein on the recommendations of
the Council.”
18.4 Accordingly, it was proposed that:
(i) The date of implementation of dynamic QR code on B2C invoice may not be extended from 01.12.2020
(ii) The penalty payable under section 125 of the CGST Act, 2017 for non-compliance of the provisions of
the notification No. 14/2020- Central Tax, dated 21st March 2020 as amended may be waived for the period
from 01.12.2020 to 31.03.2021, subject to the condition that the said persons comply with the provisions
of the said notification from 01.04.2021.
18.5 The proposal was put before the GIC and the GIC approved the proposal.
Decision by Circulation – 04 December 2020
Agenda Note: Waiver of Recording of UIN for Foreign Diplomatic Missions/UN Organizations
19.1 In the Agenda Note it had been mentioned that section 55 of the CGST Act, 2017 read with Rule
95 of the CGST Rules,2017 provides special status to Foreign Diplomatic Missions/UN organizations,
whereby UIN entities were granted UIN which was different from GSTIN. Refund for the Foreign
Diplomatic Missions/UN Organizations was given to them for the tax paid by them on their purchases based
on the terms of reciprocity which were specific to countries. UIN entities provide a statement of invoices
while filing quarterly returns in their FORM GSTR-11. It was stated that recording of UIN on the invoice
was a necessary condition under Rule 46 of the CGST Rules,2017.
19.2 Further, it was stated that in the past it had been reported that many of the retailers/vendors to
Foreign Diplomatic Missions/UN Organizations had been declining supply of goods or services to Foreign
Diplomatic Missions/UN organizations on the premise that such UIN is not a valid GSTIN and therefore
cannot be recorded in their invoices. Due to this non-compliance, UIN entities weren’t eligible for a refund
as per Section 55 of CGST Act,2017. In order to facilitate refunds to Foreign Diplomatic missions/UN
Organizations, a waiver of non-recording of UINs on invoices issued by the retailers/other suppliers, has
been given earlier from time to time. The latest waiver was extended till 31st March 2020 issued vide
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corrigendum dated 06.09.2019 to the circular no 63/37/2018-GST dated 14.09.2018 with adequate
safeguards.
19.3 Besides, it was also stated that the matter was discussed with MEA on 6th October 2020 with
Retailers Association of India (RAI) & MEA on 8th October 2020 in a joint meeting. In the said meeting,
RAI had informed that since the format of UIN & GSTIN was different and the latter had prefixed
alphanumeric arrangement, the retailers, in general, were not able to accommodate UIN format in their
systems. RAI requested that UIN format could also be changed on the lines with GSTIN format. Further
MEA suggested for issuance of Sub-UIN to only those diplomats/consular who hold a diplomatic card
which was issued by MEA.
19.4 Also, it was mentioned that the refund claims from the period April 2020 onwards, involving
invoices without having UIN, were put on hold. The same grievances were also informed by MEA in the
recent meeting. Therefore, it was proposed that a waiver from the recording of UIN on invoices may be
given for one more year from 1st April 2020 to 31st March 2021 with the adequate safeguard that the hard
copy of invoice submitted for a claim of refund shall be attested by the authorised representative of Foreign
Diplomatic missions/UN Organizations.
19.5 It was further mentioned that a draft circular regarding the above matter was placed before the Law
Committee in its meeting on 11.11.2020. The draft circular was recommended by LC for extension of the
waiver of the recording of UIN for Foreign Diplomatic Missions/UN Organizations from 1st April 2020 to
31st March 2021 with the adequate safeguard as mentioned above. LC also observed that GSTN might
subsequently undertake discussion with MEA to find a solution on the above stated matter.
19.6 The proposal was put before the GIC and the GIC approved the proposal.
Decision by Circulation – 07 December 2020
Agenda Note: Extension of Due Dates for Compliances and Actions in Respect of Anti-Profiteering
Measures under GST
20.1 In the Agenda Note it had been mentioned that a reference dated 24.11.2020 has been received
from the Chairman, National Anti-Profiteering Authority (GST) on the above subject wherein it has been
said that there had been a delay in granting Personal Hearing (PH) to parties being investigated for
profiteering on account of COVID-19 pandemic. Due to Pan-India restrictions on the movement and non-
availability of video-conferencing infrastructure or know-how with the parties concerned, PH could not be
held in around 60 cases. Also, the parties were not able to share the data summoned by the DGAP
(Directorate General of Anti-profiteering) for investigation due to closure of the offices of the parties or the
absence of requisite staff at their disposal. Accordingly, NAA has requested to grant a further extensionfrom
the current deadline of 30.11.2020 to 31.03.2021) in respect of statutory deadlines under anti-profiteering
law.
20.2 In this regard, reference was invited to notification No. 35/2020 – Central Tax dated 03.04.2020 as
amended by notification No. 55/2020 – Central Tax dated 27.06.2020 and further amended by notification
No. 65/2020 – Central Tax dated 01.09.2020 vide which any time limit for completion or compliance of
any action, by any authority or by any person, under section 171 of the GST Act, which falls during the
period from the 20th day of March, 2020 to the 29th day of November, 2020 was extended up to the 30th day
of November, 2020.
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20.3 It was further mentioned that the provisions related to anti-profiteering measures were contained in
section 171 of the CGST Act read with rules 122 to 137 of the CGST Rules. Sub-rule (6) of rule 129 deals
with the timelines of initiation and conduct of proceedings and specifies that investigation should be
completed within a period of six months from the receipt of the reference, which might be extended by a
period of three months.
20.4 Further, it was also stated that if the request for an extension was granted, it would require the
issuance of notification in exercise of powers conferred by section 168A of the CGST Act, 2017 in order
to carry out the following changes to the proviso to clause (i) of the first para of notification No. 35/2020 –
Central Tax dated 03.04.2020 read with Notification No.65/2020-CT dated 01-09-2020:
“where, any time limit for completion or compliance of any action, by any authority or by any
person, has been specified in, or prescribed or notified under section 171 of the said Act, which
falls during the period from the 20th day of March, 2020 to the 30th day of March, 2021, and where
completion or compliance of such action has not been made within such time, then, the time limit
for completion or compliance of such action, shall be extended up to the 31st day of March, 2021.”.
20.5 The proposal was put before the GIC and the GIC approved the proposal.
Decision in the 37th Meeting of GIC – 15 December 2020
Agenda item 1: Notifying provisions of the Finance Act, 2020 relating to amendment of various
sections of the CGST Act.
21.1 The proposal before the GIC for approval was that vide the Finance Act, 2020 (No. 12 of 2020),
various sections of the CGST Act and Section 25 of Integrated Goods and Services Tax Act, 2017 (IGST
Act) had been amended. A specific reference was invited to sub-section (2) of section 1 of the Finance Act,
2020, along with corrigenda, which states that sections 118 to 131 and 134 of the Finance Act, 2020 shall
come into force on such date as the Central Government may appoint by way of a notification in the official
Gazette. The Sections 118, 125, 128, 129 and 130 of the Finance Act, 2020 have already been enacted. In
view of the same, it was proposed that the following remaining provisions of the Finance Act, 2020 (No.
12 of 2020) may be notified with effect from 01.01.2021:
S.No.
Finance
Act 2020
section
CGST/
IGST Act
2017
section
Purpose of Amendment and reason for carrying out
the amendment
1. 119 10 of CGST
Clauses (b), (c) and (d) of sub-section (2) of the section
10 of the CGST Act is amended to harmonize the
conditions for eligibility for the Composition scheme
under sub-section (1) and sub-section (2A) of section 10
of the CGST Act
2. 120 16 of CGST
Sub section (4) of the section 16 of the CGST Act is
amended to delink the date of issuance of debit note
from the date of issuance of the underlying invoice for
purposes of availing input tax credit.
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S.No.
Finance
Act 2020
section
CGST/
IGST Act
2017
section
Purpose of Amendment and reason for carrying out
the amendment
3. 121 29 of CGST
Clause (c) of sub-section (1) of section 29 of the CGST
Act is amended to provide for cancellation of
registration which has been obtained voluntarily under
sub-section (3) of section 25.
4. 122 30 of CGST
A proviso to sub-section 1 of section 30 of the CGST
Act is inserted to empower the jurisdictional tax
authorities to extend the date for application of
revocation of cancellation of registration in deserving
cases.
5. 123 31 of CGST
Section 31 of the CGST Act is amended to provide
enabling provision to prescribe the manner of issuance
of invoices in case of supply of taxable services.
6. 124 51 of CGST
Section 51 of the CGST Act is amended to remove the
requirement of issuance of TDS certificate by the
deductor; and to omit the corresponding provision of
late fees for delay in issuance of TDS certificate.
7. 126
122 of
CGST
Section 122 of the CGST Act is amended by inserting a
new sub-section to make the beneficiary of the
transactions of passing on or availing fraudulent Input
Tax Credit liable for penalty similar to the penalty
leviable on the person who commits such specified
offences.
8. 127
132 of
CGST
Section 132 of the CGST Act is amended to make the
offence of fraudulent availment of input tax credit without
an invoice or bill a cognizable and non-bailable offence;
and to make any person who commits, or causes the
commission, or retains the benefit of transactions arising
out of specified offences liable for punishment.
9. 131 Schedule II
Entries at 4(a) & 4(b) in Schedule II of the CGST Act
are amended w.e.f. 01.07.2017 to make provision for
omission of supplies relating to transfer of business
assets made without any consideration from Schedule II
of the said Act.

The enactment of the corresponding amendments was still pending as on 15-12-2020 only with 3 States
namely West Bengal, Arunachal Pradesh & Nagaland.
21.2 Decision: It was decided that the provisions of Finance Act, 2020 (No. 12 of 2020) as enumerated
in paragraph 3 above be notified with effect from 01.01.2021.
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22. Remaining three States, if they did the amendment later than the given date, would be requested to
do it with retrospective effect so that the date of implementation remains 01.01.2021.
Agenda Item No.2: Agenda note for the approval of the GIC regarding Waiver of Late Fee for FORM
GSTR-4 filing in UT Ladakh for the Financial Year 2019-20
23.1 The proposal before the GIC for approval was that late fee in delay in furnishing return in
FORMGSTR-4 for the registered person having principal place of business in Union Territory of Ladakh
may be waived for the period 01st November 2020 to 31st December 2020. Implementation of the decision
would require issuance of notification for waiver of late fee in filing FORMGSTR-4 return to the taxpayers
for Financial Year 2019-20.
23.2 Decision: GIC approved the waiver of Late Fee for delay in furnishing FORM GSTR-4 for the
registered persons having principal place of business in UT of Ladakh for the Financial Year 2019-20 for
the period 01st November 2020 to 31st December 2020 and approved issuance of notification to this effect
Agenda Item No.3: Proposal for amendment in CGST Rules, 2017
24. The proposal before the GIC for approval was that Law Committee (LC), in its various meetings
had deliberated upon several issues and recommended changes in various provisions viz. Rule 8, 9, 21,
21A, 22, 36, 59, 86B, 138, 138E of the Central Goods and Services Tax Rules, 2017. These changes were
primarily arising out of following two Agenda Notes placed before the Law Committee stated as under:
(a) Agenda note on countermeasures against fake invoices
(b) Agenda Note brought by UP on provisions of e-way Bill
25.1 Amendment to rule 8:
25.1.1 The proposal before the GIC for approval was that in case the applicant had opted for Aadhaar
authentication, he must undergo biometric-based Aadhaar authentication at one of the Facilitation Centres
notified by the Commissioner. In case the applicant has not opted for Aadhaar authentication, the
application must be followed by taking biometric information and verification of such other KYC
documents, as notified, at verification centres. This verification process may also include taking photograph
and verification of the original copy of the documents uploaded with the application in FORM GST REG-
01. The amendment shall come into effect from a date to be notified.
25.1.2 Decision: The GIC agreed to the Amendments in Rule 8 for in person verification as proposed and
the same to be made effective from a date to be notified.
25.2 Amendment to rule 9:
25.2.1 The proposal before the GIC for approval was that even in cases where a person successfully
undergoes authentication of Aadhaar number, physical verification may be carried out in certain cases with
the approval of an officer, authorized by the Commissioner. Thus, in Rule 9 the proposal for Amendment
of (a) Sub-rule (1): 7 working days in place of 3 working days (b) Proviso to Rule 9(1): the word “only” to
be deleted (c) Sub-rule (2): 30 days in place of to 21 days, and (d) Sub-rule (5): both 7 working days and
30 days in place of the earlier versions, was submitted to GIC.
25.2.2 The proposal was put before the GIC and the GIC approved the proposal.
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25.3 Amendment to rule 21:
25.3.1 The proposal before the GIC for approval was that the registration to be also liable for cancellation
in cases where input tax credit was availed in violation of Section 16 of Central Goods and Services Tax
Act, 2017. Further, it was proposed that in cases where the details of outward supplies in FORM GSTR-1
were in excess than the outward supplies declared in FORM GSTR-3B, for one or more tax periods, such
cases may be added to the grounds of cancellation of registration. It was proposed that violation of provision
of the proposed rule 86B shall also be a ground for cancellation of registration
25.3.2 Decision: The Members of GIC agreed to the Amendments in Rule 21 as proposed
25.4 Amendment to rule 21A and 22:
25.4.1 The proposal before the GIC for approval was that Rule 21A may be amended by inserting sub-
rule (2A) which would provide certain additional grounds for suspension of registration. It was proposed
that where on comparison of the returns furnished by a registered person under Section 39 with: -
(a) the details of outward supplies furnished in FORM GSTR-1; or
(b) the details of inward supplies derived based on the details of outward suppliers furnished by his suppliers
in their FORM GSTR-1 or such other analysis, as may be carried out on the recommendations of the
Council, show that there are significant differences his registration shall be suspended. However, the
suspension of registration issued under this rule may be revoked by the proper officer in case the difference
is justified by the person.
25.4.2 During the period when the registration is suspended under this rule, it was proposed that no refund
be sanctioned to the taxpayer whose registration was suspended. Moreover, suspension needed to be
immediate to prevent passing on of fake input tax credit. Since Rule 22 for cancellation of registration
already provided adequate safeguard in form of requirement of issuance of a notice to the person before
registration is cancelled, opportunity to be heard may not be given before suspension.
25.4.3 It was further proposed that since Rule 21A is proposed to be amended as discussed above, suitable
consequential amendment is required in Rule 22 which lists the procedure for cancellation of registration.
25.4.4 Decision: GIC approved the Amendments to Rule 21A and Rule 22 as proposed.
25.5 Amendment to Rule 36:
25.5.1 The proposal before the GIC for approval was that limit of 10 percent in Rule 36(4) may further be
reduced to 5 percent w.e.f. 01.01.2021. Further, consequent to the implementation of QRMP scheme and
facility of IFF with effect from 01.01.2021, reference to IFF has also been proposed to be incorporated in
this rule.
25.5.2 Decision: GIC approved the amendments to Rule 36 as proposed.



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25.6 Amendment to Rule 59:
25.6.1 The proposal before the GIC for approval was that a registered person shall not be allowed to
furnish FORM GSTR-1, if he had not furnished the return in FORMGSTR-3B for preceding two months.
This was one of the spike rules proposed by GSTN in the Law Committee which was agreed by the
Committee members. Similar restriction was proposed to be placed on taxpayers filing quarterly return,
with a deviation that restriction on furnishing details of outward supplies in FORM GSTR-1 shall be
imposed if return in FORM GSTR 3B was not filed by the taxpayer for the preceding one tax period. It
was also proposed to have this restriction for taxpayers covered under rule 86B if he does not file return for
preceding tax period.
25.6.2 Decision: GIC approved the amendments to Rule 59 as proposed.
25.7 Insertion of Rule 86B:
25.7.1 The proposal before the GIC for approval was that a registered person shall not use the amount
available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine
per cent of such tax liability, in cases where the value of taxable supply other than exempt supply and zero-
rated supply, in a month exceeds fifty lakh rupees. However, if the said person or specified number of
partners / directors etc paid more than one lakh rupees as income tax in each of the last two financial years
or person had received a refund amount of more than one lakh rupees in the preceding financial year on
account of unutilized input tax credit on zero rated supply or on account of inverted duty structure or had
discharged his liability towards output tax through the electronic cash ledger for an amount which is in
excess of 1% of the total output tax liability, applied cumulatively upto the said month in the current
Financial Year, he shall be exempted. Further, Government Department, Public Sector Undertaking; a local
authority; statutory body were also exempted.
25.7.2 Decision: GIC approved the proposal, subject to approvals from West Bengal and Haryana, who
sought time till 18th December 2020. Subsequently, both the States also accorded their approval to the
proposed rule 86B.
25.8 Amendments to Rule 138E and 138 (10):
25.8.1 The Commissioner, GSTPW stated that the amendments as proposed in rule 21A would have a
consequential amendment in rule 138E relating to restriction on furnishing of information in PART A of
FORM GST EWB-01 during the period of suspension of registration, as recommended by the Law
Committee.
25.8.2 Further, he added that various issues and suggestions regarding validity period of E-Way bill had
been brought before the LC by Uttar Pradesh to plug the revenue leakages in the GST regime. It had been
observed that the validity provided under the Rule 138(1) was very wide and it was possible that a single
set of documents and e-way bill may be used for more than one time for transportation of goods. It was
noticed by the officers of UP Govt. that in number of cases, a vehicle was intercepted using same invoice
and e-way bill, multiple times due to validity of e-way bills being of larger number of days, in view of
present provision of validity being one day for every 100 KM. Accordingly, they have recommended
amendment in rule 138 (10) of CGST Rules to change the provisions related to validity of e-way bill.
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25.8.3 The proposal before the GIC for approval was that Rule 138E &138(10) may be amended as shown
in red.
Sl. No. Distance Validity period
1. Upto100200 km.
One day in cases other than Over Dimensional
Cargo [or multimodal shipment in which at
least one leg involves transport by ship
2.
For every 100 200 km. or part thereof
thereafter
One additional day in cases other than Over
Dimensional Cargo [or multimodal shipment
in which at least one leg involves transport by
ship
3. Upto 20 km
One day in case of Over Dimensional Cargo
[or multimodal shipment in which at least one
leg involves transport by ship
4. For every 20 km. or part thereof thereafter
One additional day in case of Over
Dimensional Cargo [or multimodal shipment
in which at least one leg involves transport by
ship:

25.8.4 Decision: GIC approved the amendments to Rule 138E and Rule 138 (10) as proposed.
Decision by Circulation – 22 December 2020
26.1 In the Agenda Note it has been mentioned that the last date for filing Annual returns specified under
section 44 of the CGST Act for the financial year 2019-20 is 31st December 2020, while the last date for
filing Annual Returns pertaining to the Financial year 2018-19, as extended vide Notification No. 80/2020-
Central tax dated 28th October 2020 is also 31st December 2020.
26.2 The said return / FORM GSTR-9 for the year 2019-20 was amended vide notification No.79/2020-
Central Tax, dated 15th October 2020. GSTN has informed that the amended GSTR-9 for 2019-20 has been
made available on the portal and it would be accessible to all taxpayers by the night of 14.12.2020. It was
therefore desired that the last date for the Annual Return for 2019-20 be extended by at least 2-3 months.
26.3 It was further stated that the Law Committee in its meeting held on 14th December 2020 deliberated
on the issue of extension of due date for filing of Annual Return for the Financial Year 2019-20 and had
recommended that the last date for filing of the Annual Return for 2019-20 be extended to 31.03.2021.
Revised proposal was placed before the GIC to extend the due date of filing the Annual return for FY 2019-
20 from 31.12.2020 to 28.02.2021 and the same was approved.
26.4 The proposal was put before the GIC and the GIC approved the proposal.


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Decisions and Minutes of the 38th GIC Meeting held on 12 Jan 2021
The 38th Meeting of the GST Implementation Committee (GIC) was held via WebEx on 12 January 2021
from 03:00PM onwards.
27. The agenda items circulated through email among Members of GIC, were discussed and decisions
taken are as under:
Agenda 1: Suspension of Registration on Basis of changes Introduced vide Notification No.-94/2020-
Central Tax
28.1 The proposal before the GIC for approval was that vide Notification No.-94/2020-Central Tax
dated 22.12.2020 Sub-Rule (2A) had been inserted in Rule 21A of the Central Goods and Services Tax
Rules, 2017 (CGST Rules, 2017) where in it is mentioned that on comparison of returns or such other
analysis, as may be carried out on the recommendations of the Council ,show significant differences or
anomalies then registration shall be suspended.
28.2 It was further stated that keeping in view the number of GSTINs and administrative capacity to
handle the numbers it was proposed that to start with, GSTINs having certain risk parameters may be
suspended centrally through the GST portal under sub rule (2A) of Rule 21A of CGST Rules, 2017
29. Decision: The proposal was agreed and it was decided that suspension of GSTINs on certain risk
parameters may be done in phased manner with a gap of about 10-14 days. It was also agreed upon that the
specific risk parameters based on which the GSTINs registrations are suspended may be kept confidential
and may not be placed in public domain.
Agenda Item 2: Proposal for amendments in the Return Related Provisions of the CGST Act, 2017
as Recommended by the GST Council.
30.1 The proposal before the GIC was that the original design of return involved an elaborate process
of filing of GSTR-1, 2 & 3 in a sequence which also envisaged inter-linking with back-and-forth flow of
invoices. The return related sections viz. Section 37 to 43 of the CGST Act, 2017 was drafted accordingly.
However, the return system and linkage could not be established, and GSTR-1-2-3 model were kept in
abeyance. Instead, as an interim measure, FORM GSTR-1 and a summary return in FORM GSTR-3B was
introduced
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30.2 Subsequently, a new return system was envisaged (ANX-1 / ANX-II and RET-01). Section
43A was also inserted into the CGST Act vide CGST Amendment Act, 2018. However, Section 43A
has not been notified yet.
30.3 It was further stated that in the 42nd meeting of the GST Council, it was recommended that the
present system of GSTR-1 / 3B return filing to be continued and the GST laws may be amended to
make the GSTR-1 / 3B return filing system as the default return filing system. The recommendation of
the Council, as communicated through the draft minutes, is stated below:
“12. For Agenda 6 the Council took the following decisions:
(iii) Granted in principle approval to make legal changes to replace GSTR-1/2/3 related
provisions with the present GSTR-1 / 3B return filing system.
iv. Empowered the Law Committee to deliberate upon the amendments required in the GST
Acts and Rules accordingly.”
Accordingly, various provisions that require amendment have been examined by the Law Committee
in its meeting held on 16th, 23rd, and 30th December 2020 and has recommended amendment in various
provisions of the Act. The same were placed before GIC . The drafting of provisions would be finalized
in consultation with the Union Ministry of Law and Justice.
30.4 Decision: The members of the GIC agreed with the amendments on merit but suggested that
the proposed law amendments may be submitted to the GST Council in its next meeting for approval.
Decision by Circulation- 13 January 2021
Subject: Standard Operating Procedure (SOP) for implementation of the provision of suspension
of registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017
31.1 In the agenda note it was stated that vide notification No. 94/2020- Central Tax, dated
22.12.2020, sub-rule (2A) has been inserted to rule 21A of the Central Goods and Services Tax Rules,
2017 (hereinafter referred to as the CGST Rules) which provides for immediate suspension of
registration of a person, as a measure to safeguard the interest of revenue, on observance of such
discrepancies / anomalies which indicate violation of the provisions of Act and Rules made thereunder;
and that continuation of such registration poses immediate threat to revenue.
31.2 Sub-rule (2A) of Rule 21A is reproduced hereunder:
“(2A) Where, a comparison of the returns furnished by a registered person under section 39 with
(a) the details of outward supplies furnished in FORM GSTR-1; or
(b) the details of inward supplies derived based on the details of outward supplies
furnished by his suppliers in their FORM GSTR-1,
or such other analysis, as may be carried out on the recommendations of the Council, show that there
are significant differences or anomalies indicating contravention of the provisions of the Act or the rules
made thereunder, leading to cancellation of registration of the said person, his registration shall be
suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the
common portal, or by sending a communication to his e-mail address provided at the time of registration
or as amended from time to time, highlighting the said differences and anomalies and asking him to
explain, within a period of thirty days, as to why his registration shall not be cancelled.”;
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31.3 Till the time an independent functionality for FORM REG-31 is developed on the portal, in
order to ensure uniformity in the implementation of the provisions of above rule 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, provided certain guidelines for implementation of the provision of suspension
of registrations under the said rule.
31.4 On the recommendation of the Council, the registration of specified taxpayers shall be
suspended, and system generated intimation for suspension and notice for cancellation of registration
in FORM GST REG-31, containing the reasons of suspension, shall be sent to such taxpayers on their
registered e-mail address. Till the time functionality for FORM REG-31 is made available on portal,
such notice/intimation shall be made available to the taxpayer on their dashboard on common portal in
FORM GST REG-17. The taxpayers will be able to view the notice in the “View/Notice and Order”
tab post login.
31.5 The taxpayers, whose registrations are suspended under the above provisions, would be
required to furnish reply to the jurisdictional tax officer within thirty days from the receipt of such notice
/ intimation, explaining the discrepancies/anomalies, if any, and shall furnish the details of compliances
made or/and the reasons as to why their registration shouldn’t be cancelled:
a. The said person would be required to reply to the jurisdictional officer against the notice for
cancellation of registration sent to them, in FORM GST REG-18 online through Common
Portal withing the time limit of thirty days from the receipt of notice/ intimation.
b. In case the intimation for suspension and notice for cancellation of registration is issued on
ground of non -filing of returns, the said person can file all the due returns and submit the
response. Similarly, in other scenarios as specified under FORM GST REG-31, they may meet
the requirements and submit the reply.
31.6 Post issuance of FORM GST REG-31 via email, the list of such taxpayers would be sent to
the concerned Nodal officers of the CBIC/ States. Also, the system generated notice can be viewed by
the jurisdictional proper officers on their Dashboard for suitable actions. Upon receipt of reply from the
said person or on expiry of thirty days (reply period), a task would be created in the dashboard of the
concerned proper officer under “Suo moto cancellation proceeding”.
31.7 Proper officer, post examination of the response received from the said person, may pass an
order either for dropping the proceedings for suspension/ cancellation of registration in FORM GST
REG-20 or for cancellation of registration in FORM GST REG-19. Based on the action taken by the
proper officer, the GSTIN status would be changed to “Active” or “Cancelled Suo-moto” as the case
maybe
31.8 Till the time independent functionality for FORM GST REG-31 is fully ready, it is advised
that if the proper officer considers it appropriate to drop a proceeding anytime after the issuance of
FORM GST REG-31, he may advise the said person to furnish his reply on the common portal in
FORM GST REG-18.
31.9 It is advised that in case the proper officer is prima-facie satisfied with the reply of the said
person, he may revoke the suspension by passing an order in FORM GST REG-20. Post such
revocation, if need be, the proper officer can continue with the detailed verification of the documents
and recovery of short payment of tax, if any. Further, in such cases, after detailed verification or
otherwise, if the proper officer finds that the registration of the said person is liable for cancellation, he
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can again initiate the proceeding of cancellation of registration by issuing notice in FORM GST REG-
17.
31.10 The proposals were put before the GIC and the GIC approved the proposals.
Decision by Circulation – 19 January 2021
Agenda: Corrigendum to Circular No. 125/44/2019-GST dated 18thNovember, 2019 issued vide
F. No. CBEC/20/16/4/2018-GST
32. In the Agenda note it has been stated that various representations have been received from the
field formations and the trade/industry relating to refunds which need to be immediately addressed to
ensure the uniformity in the implementation of the provisions of law across field formations. The
various issues raised are enumerated as under:
33. Clarification in respect of refund claim by recipient of Deemed Export Supply
33.1 It was further mentioned that representations have been received in respect of difficulties being
faced by the recipients of the deemed export supplies in claiming refund of tax paid in respect of such
supplies since the system is not allowing them to file refund claim under the aforesaid category unless
the claimed amount is debited in the electronic credit ledger.
33.2 Para 41 of Circular No. 125/44/2019 – GST dated 18/11/2019 has placed a condition that the
recipient of deemed export supplies for obtaining the refund of tax paid on such supplies shall submit
an undertaking that he has not availed ITC on invoices for which refund has been claimed. Thus, the
recipient of deemed export supplies cannot avail ITC on such supplies but when they proceed to file
refund on the portal, the system asks them to debit the amount so claimed from their electronic credit
ledger.
33.3 The 3rd proviso to Rule 89(1) of CGST Rules, 2017 allows for refund of tax paid in case of a
deemed export supply to the recipient of the deemed export supplies or the supplier of deemed export
supplies. The said proviso is reproduced as under:
“Provided also that in respect of supplies regarded as deemed exports, the application may be
filed by, -
(a) the recipient of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient does not avail of input
tax credit on such supplies and furnishes an undertaking to the effect that the supplier may
claim the refund”
From the above, it can be seen that there is no restriction on recipient of deemed export supplies in
availing ITC of the tax paid on such supplies when the recipient files for refund claim.
33.4 Therefore, it was proposed that the Circular No. 125/44/2019-GST date 18.11.2019 may be
modified to remove the said condition from the undertaking that no ITC has been availed on such
invoices. The issue was discussed in the meeting of the Law Committee held on 30.09.2020 wherein
the Law Committee has recommended the following:
I) For Short term, the condition prescribed in para 41 regarding non-availment of ITC by the
recipient of deemed export supplies may be deleted.
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II) However, the Law Committee proposed that this issue needs to be re-examined for sanction of
refund to recipients under Section 55 in the long-term and the detailed proposal for refund on
deemed exports to be placed before Law Committee.
33.5 Accordingly, the proposal was to remove the said condition of submission of an undertaking
by recipient of deemed export supply regarding the non-availment of ITC on the invoices pertaining to
deemed export supplies as approved by the Law Committee as a short-term measure. A detailed
proposal for refund of deemed export supplies under Section 55 of the CGST Act 2017 would be
prepared and placed before the Law Committee in due course.
34. The proposal was put before the GIC and the GIC approved the proposal.
Extension of relaxation for filing refund claim in cases where zero-rated supplies has been
wrongly declared in Table 3.1(a).
35.1 Para 26 of Circular No. 125/44/2019-GST dated 18th November 2019 gave a clarification in
relation to cases where taxpayers had inadvertently entered the details of export of services or zero-
rated supplies to a Special Economic Zone Unit/Developer in table 3.1(a) instead of table 3.1(b) of
FORM GSTR-3B of the relevant period and were unable to claim refund of the integrated tax paid on
the same through FORM GST RFD-01A. This was because of a validation check placed on the common
portal which prevented the value of refund of integrated tax/cess in FORM GST RFD-01A from being
more than the amount of integrated tax/cess declared in table 3.1(b) of FORM GSTR-3B. The said
Circular clarified that for the tax periods from 01.07.2017 to 30.06.2019, such registered persons shall
be allowed to file the refund application in FORM GST RFD-01A on the common portal subject to the
condition that the amount of refund of integrated tax/cess claimed shall not be more than the aggregate
amount of integrated tax/cess mentioned in the tables 3.1(a), 3.1(b) and 3.1(c) of FORM GSTR-3B filed
for the corresponding tax period.
35.2 Since the clarification issued vide the above Circular was valid only from 01.07.2017 to
30.06.2019, taxpayers who committed these errors in subsequent periods were not able to file the refund
applications in FORM GST RFD-01A/ FORM GST RFD-01. The issue was discussed in the meeting
of the Law Committee held on 30.09.2020 wherein it was recommended that the said facility may be
extended in respect of periods till 31.03.2021.
35.3 The proposal was put before the GIC and the GIC approved the proposal.
Amendment of Annexure-A of the Circular No.125/44/2019-GST dated 18-11-2019.
36. Requirement of submission of Certificate provided under Clause (b) of sub-section (4) of
Section 54
36.1 Sub-section (4) of Section 54 provides for the documents which shall be provided with the
refund application. Sub-section (4) of Section 54 is reproduced, as under:
“(4) The application shall be accompanied by—
(a) such documentary evidence as may be prescribed to establish that a refund is due to
the applicant; and
(b) such documentary or other evidence (including the documents referred to in section
33) as the applicant may furnish to establish that the amount of tax and interest, if any, paid on
such tax or any other amount paid in relation to which such refund is claimed was collected
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from, or paid by, him and the incidence of such tax and interest had not been passed on to any
other person:
Provided that where the amount claimed as refund is less than two lakh rupees, it shall not be
necessary for the applicant to furnish any documentary and other evidences but he may file a
declaration, based on the documentary or other evidences available with him, certifying that
the incidence of such tax and interest had not been passed on to any other person.”
36.2 Sub-section (8) of Section 54 of CGST Act 2017 provides for the cases where the refund
amount would be paid to the applicant, instead of being credited to the Consumer Welfare Fund, the
same is reproduced, as under:
“(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of
being credited to the Fund, be paid to the applicant, if such amount is relatable to—
(a) [refund of tax paid on export of goods or services or both or on inputs or input services used
in making such exports;]
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which
invoice has not been issued, or where a refund voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on
the incidence of such tax and interest to any other person; or
(f) the tax or interest borne by such other class of applicants as the Government may, on the
recommendations of the Council, by notification, specify.”
36.3 Rule 89 of CGST Rules 2017 provides for manner and procedure for filing application for
refund except for refund of integrated tax paid on goods exported outside India. As per the provisos of
clause (l) and (m) of sub-rule (2) of rule 89, the declaration or certificate regarding incidence of tax has
not been passed on to any other person is not required in claims covered under the clause (a), (b), (c),
(d) and (f) of Section 54 (8) of CGST Act 2017. Clause (l) and (m) of Rule 89 (2) is reproduced as
under:
“(l) a declaration to the effect that the incidence of tax, interest or any other amount claimed
as refund has not been passed on to any other person, in a case where the amount of refund
claimed does not exceed two lakh rupees:
Provided that a declaration is not required to be furnished in respect of the cases covered under
clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54;
(m) a Certificate in Annexure 2 of FORM GST RFD-01 issued by a chartered accountant or a
cost accountant to the effect that the incidence of tax, interest or any other amount claimed as
refund has not been passed on to any other person, in a case where the amount of refund
claimed exceeds two lakh rupees:
Provided that a certificate is not required to be furnished in respect of cases covered under
clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of subsection (8) of section 54;”
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36.4 From the above, it can be seen that the requirement for furnishing the said declaration is not
required in cases of exports, Zero-rated supplies, Advances, inverted duty structure, payment under
wrong head etc. However, representations have been received from the trade/industry wherein they
have informed that the claims pertaining to refund of unutilised ITC on account inverted duty structure
has been rejected on account of non-submission of the declaration/ certificate prescribed under clause
(l)/ (m) of Rule 89 (2) as the said requirement of submission of the said declaration/certificate has been
specified in the Annexure A of the Circular No. 125/44/2019-GST dated 18.11.2019 which specifies
the List of all statements/declarations/undertakings/certificates and other supporting documents to be
provided along with the refund application.
36.5 On perusal of the facts stated above, it appears that the requirement of said
declaration/certificate in the cases relating to inverted duty has been wrongly mentioned and if
approved, the same may be corrected by removing the said requirement.
37. Requirement for uploading copy of GSTR 2A.
Representations are being received from the trade stating that they are not able to upload GSTR-
2A in the limited space 5 MB for each document (Maximum 10 documents of 5 MB each can be
uploaded) provided on the portal. However, the refund sanctioning authority is not processing the refund
until the copy of GSTR-2A is uploaded. Further, in cases where GSTR-2A is of size bigger than 5 MB,
it creates an option for manual interface. Further, it has been learnt that GSTR-2A has been made visible
to the refund sanctioning authority. Therefore, there appears no need for seeking copy of GSTR-2A for
the claimant.
38. Requirement for furnishing the statement of invoices pertaining to missing invoices.
38.1 In view of the clarification issued vide Circular No. 135/5/2020-GST dt 31.03.2020 vide which
refund has been restricted to the amount of ITC reflected in the GSTR-2A, it is proposed to remove the
condition of requirement for uploading missing invoices. However, in case of refund on account of
inverted duty structure or unutilised ITC, requirement for uploading the details of the inward supplies
may be continued as the said statement provides the information regarding the nature of inward supply
i.e. whether it is input, input services or capital goods.
38.2 Further, it was observed that undertaking as per second and third proviso of sub-section (3) of
Section 54 has been prescribed even in cases pertaining to refund of tax paid on the zero-rated supplies.
However, the refund under sub-section (3) of Section 54 is pertaining to refund of unutilised ITC.
Therefore, it was proposed to remove the requirement of such undertakings in case of refund of tax paid
on zero-rated supplies.
39. Accordingly, it was proposed that the Annexure- A of Circular 125/44/2019-GST dated
18.11.2019, may be amended to the extent of corrections mentioned in above paras. Incorporating the
proposed amendments, the amended Annexure ‘A’ was placed before the officers. The issue was
discussed in the meeting of the Law Committee held on 30.12.2020 wherein it was approved.
40. Decision: The proposal was put before the GIC and the GIC approved the proposal.




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GIC Decision by Circulation 5 February 2021
Agenda: Implementation of Phase 2 of Aadhaar Authentication in Registration under GST
41.1 In the agenda note it was stated that in the 36th & 37th GST Council Meeting, it was
recommended that in order to ensure that registration under GST is given only to genuine tax-payers,
registration would be granted on the basis of Aadhaar authentication. Accordingly, in the first phase,
with effect from 21.08.2020, Aadhaar authentication while applying for new registration of following
category of taxpayers has been implemented in the first phase:
(a) Proprietor, in case of proprietorships business;
(b) Managing/authorized partner in partnerships firms;
(c) Karta in case of HUF; and
(d) Authorized signatory of all kind of constitution of business.
42.2 Accordingly, notification No 16/2020, 17/2020, 18/2020 and 19/2020 all dated 23rd March
2020, were issued. Subsequently, notification No. 62/2020 dated 20thAugust, 2020 was also issued
specifying the effective date of starting Aadhaar authentication for the above category of taxpayers
w.e.f. 21st August, 2020.
42.3 In the second phase of implementation, it is proposed that Aadhaar authentication for
registration would be applicable for all the new applicants seeking registration through FORM REG-
01 (regular & composition Taxpayers), except-
(a) Govt departments,
(b) Local authorities,
(c) Statutory Body,
(d) PSUs,
42.4 It is also proposed that Aadhaar authentication would be required to be done for primary
Authorized Signatory and one person out of Promoter / Partner (1+1).
42.5 In the second phase of implementation, GSTN has also developed a functionality to upload E-
KYC documents in case applicants select “NO” option for Aadhaar Authentication. When applicant
selects “No” option for Aadhaar authentication, the E-KYC document upload option will be enabled
for those applicants, who have selected from ‘Promotor/Partners tab’ and the ‘Primary Authorized
Signatory’ (based on 1+1 rule) for e-KYC document upload. Below list of documents can be uploaded
as part of E-KYC documents:
▪ Aadhaar Enrolment Number
▪ Passport
▪ EPIC (Voter ID Card)
▪ KYC Form
▪ Certificate issued by Competent authority
▪ Others (as specified)
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Uploading the documents would be optional for the taxpayers and processing of registration application
would be done in the same manner as in the case of applicants who have not opted for Aadhaar
authentication.
42.6 The issue was deliberated by the Law Committee in its meeting dated 14.12.2020 and it was
recommended to issue a notification under section 25(6D) of the CGST Act, amending notification
No.17/2020 -CT dated 23.03.2020.
42.7 The proposal was put before the GIC and the GIC approved the proposal.
GIC Decision by Circulation 11 February 2021
Agenda: Proposal to Settle an Additional IGST Amount of Rs. 48,000 crores on an Ad Hoc Basis.
43.1 In the Agenda Note it has been mentioned that depending on the amount of IGST remaining to
be apportioned, provisional settlement was being done from time to time on an ad-hoc basis.
Accordingly, Rs. 35,000 crore was apportioned in February, 2018, Rs. 50,000 crore was apportioned
in June, 2018, Rs.12000 crore in August, 2018, Rs. 30,000 crore was apportioned in October,2018, Rs.
18,000 crore was apportioned in December,2018, Rs. 20,000 crore was apportioned in March,2019,
Rs.12,000 crore was apportioned in April,2019, Rs. 15,000 crore was apportioned in June’19 and Rs.
6,000 in March’20. These amounts were settled in a ratio of 50:50 to Centre and States and the amount
apportioned to States was divided in the ratio of subsumed/ protected revenue.
43.2 It was further stated that based on the collection of IGST upto 31st December 2020, net of
refunds and the settlement of IGST during the period, it is proposed to do provisional settlement of Rs.
48,000 crore by appropriating 50% of it to Centre and 50% of it to States. This would reduce the revenue
gap of States and the subsequent requirement of Compensation to States.
43.3 The proposal was put before the GIC and the GIC approved the proposal.
Agenda: Issuance of FAQs for Clarifications on Dynamic Quick Response (QR) Code in B2C
invoice
44.1 In the Agenda note it was stated that vide notification no. 31/2019 - Central Tax dated 28 June
2019, the sixth proviso was inserted to rule 46 of the Central Goods and Services Tax Rules, 2017
(CGST Rule, 2017), namely: -
“Provided also that the Government may, by notification, on the recommendations of the
Council, and subject to such conditions and restrictions as mentioned therein, specify that the
tax invoice shall have Quick Response (QR) code”.
44.2 It was further stated that the requirements regarding Dynamic QR Code on GST invoices were
prescribed vide Notification No. 14/2020-Central Tax, dated 21 March 2020.
44.3 The objective behind providing a QR Code payment method was to promote the Digital India
campaign launched by the Government along with providing measures of ease of doing business.
Though this facility empowers the consumers to use digital payment methods, it also brings challenges
related to updation / modification in technological /system requirements by banks and suppliers
(vendors).
44.4 Besides, it was also mentioned that as per the amendment done vide Notification No. 71/2020-
Central Tax, dated 30.09.2020, to the parent Notification No.14/2020-CT dated 21-03-2020, the
Dynamic QR Code was implemented from 1st December 2020. But to provide adequate time to trade to
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fulfil the requirements and to banks to bring the necessary technological changes, the Government vide
Notification No. 89/2020-Central tax, dated 29.11.2020, waived the amount of penalty payable by any
registered person under section 125 of the said Act for non-compliance of the provisions of Notification
No.14/2020 – Central Tax, dated 21.03.2020, between the period from the 1st December 2020 to the
31st March 2021, subject to the condition that the said person complies with the provisions of the said
notification from the 01st April 2021.
44.5 Further, it was also stated that various representations had been received from trade regarding
the challenges in the implementation of Dynamic QR Code as per the Notification No. 14/2020-Central
Tax dated 21 March 2020 as amended. Trade and Associations have sought clarity regarding various
compliance requirements vis-à-vis the implementation of Dynamic QR Code. The issues raised in these
representations have been discussed with all stakeholders in consultation with the National Payment
Corporation of India (NPCI). A few of the major doubts raised are as follows:
(a) To whom the notification No 14/2020-Central Tax dated 21 March 2020 is applicable?
Would this requirement be applicable on invoices issued for supplies made for Exports?
(b) What parameters/ details are required to be captured in the Quick Response (QR) Code?
(c) If a supplier provides/ displays Dynamic QR Code, but the customer opts to make the
payment without using Dynamic QR Code, then will the cross-reference of such payment, made
without the use of Dynamic QR Code, on the invoice, be considered as compliance of Dynamic
QR Code on the invoice?
(d) If the supplier makes available to customers an electronic mode of payment like UPI
Collect, UPI Intent or similar other modes of payments, through mobile applications or
computer-based applications, where though Dynamic QR Code is not displayed, but the details
of the merchant as well as the transaction are displayed/ captured otherwise, how the
requirement of Dynamic QR Code as per this notification can be complied with?
(e) Is generation/ printing of Dynamic- QR on B2C invoices mandatory for pre-paid, i.e.
where advance payment has been made before issuance of the invoice?
(f) Once the E-commerce operator (ECO) or the online application has complied with the
Dynamic QR Code requirements, will the suppliers using such e-commerce portal or
application for supplies still be required to comply with Dynamic QR Code?
44.6 It was also stated that all the issues raised as mentioned above, were discussed in Law
Committee meeting held on 28.01.2021 and the Law Committee has approved the draft Circular
containing FAQs related to Dynamic QR Code.
44.7 Decision: The proposal along with the draft Circular was put before the GIC and the GIC
approved the same.
GIC Decision by Circulation 12 February 2021
Agenda: Issuance of Clarification Regarding the Calculation of Adjusted Total turnover under
sub-rule (4) of Rule 89 of CGST Rules, 2017
45.1 In the Agenda note it was stated that the definition of ‘Turnover of zero-rated supply of goods’
specified under sub-rule (4) of Rule 89 of the CGST Rules 2017 was amended vide Notification
No.16/2020-Central Tax dated 23.03.2020, and the same is stated as under:
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“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-rules (4A) or (4B) or both;”.
45.2 However, the State of Maharashtra raised the issue that there was a need to clarify as to whether
the restriction on value of zero-rated supply of goods to 1.5 times the value of like goods domestically
supplied by the same or, similarly placed, supplier, as declared by the supplier, as per the amended
definition of ‘Turnover of zero-rated supply of goods’ would also apply in “Adjusted Total Turnover”
in the formula given under sub-rule (4) of Rule 89 of CGST Rules, 2017 for calculation of admissible
refund amount. In this regard, it was of the view that the turnover of zero-rated supplies taken for
calculation of refund amount (as per the amended definition) should form part of Adjusted Total
Turnover and not the’ Turnover of zero-rated supply of goods’ as per books of account.
45.3 The said Agenda Note was examined by GSTPW, CBIC and it was submitted that sub-rule (4)
of Rule 89 prescribes the formula for computing the refund of unutilised ITC payable on account of
zero-rated supplies made without payment of tax. The formula prescribed under Rule 89 (4) is
reproduced below, as under:
“Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply
of services) x Net ITC ÷ Adjusted Total Turnover”
45.4 Further, Adjusted Total Turnover has been defined in clause (E) of sub-rule (4) of Rule 89 as
under:
“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;”
45.5 “Turnover in State or turnover in Union Territory” as referred to in the definition of adjusted
total turnover in sub-rule (4) of Rule 89 has been defined under sub-section (112) of Section 2 of CGST
Act 2017, as:
“Turnover in State or turnover in Union territory” means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is payable by a person on reverse
charge basis) and exempt supplies made within a State or Union territory by a taxable person,
exports of goods or services or both and inter State supplies of goods or services or both made
from the State or Union territory by the said taxable person but excludes central tax, State tax,
Union territory tax, integrated tax and cess”
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45.6 It was further stated that on the examination of the above provisions, it was noticed that
“adjusted total turnover” includes “turnover in a state or union territory”, as defined in Section 2(112)
of CGST Act. As per Section 2(112), “turnover in a state or union territory” includes turnover/ value of
export/ zero-rated supplies of goods. The definition of “Turnover of zero-rated supply of goods” has
been amended vide Notification No.16/2020-Central Tax dated 23.03.2020, as detailed above. It
emerges from the above that the same value of zero-rated/ export supply of goods, as calculated as per
amended definition of “Turnover of zero-rated supply of goods”, needs to be taken into consideration
while calculating “turnover in a state or a union territory”, and accordingly, in “adjusted total turnover”
for the purpose of sub-rule (4) of Rule 89. Thus, it emerged that the restriction of 150% of the value of
like goods as applied in “turnover of zero-rated supply of goods” would also apply to the value of
“Adjusted Total Turnover” in Rule 89 (4) of the CGST Rules, 2017.
45.7 Accordingly, concurring with the recommendations of the State of Maharashtra it was
recommended that the said issue may be clarified through a circular. The said Agenda was placed before
the Law Committee in its meeting held on 28.01.2021 wherein the Law Committee approved the said
draft circular.
45.8 Decision: The proposal, along with draft circular was put before the GIC and the GIC approved
the same.

GIC Decision by Circulation 16 February 2021
Agenda: Deferring e-Wallet Scheme and Extending Duty Exemption on the imports made by the
holders of Advance Authorization holders (AA) / Export Promotion Capital Goods (EPCG)
licenses and EOUs
46.1 In the Agenda note the Directorate General of Export Promotion (DGEP), CBIC stated that the
GST Council in its meeting held on 06 October 2017 had approved proposal to prevent the cash
blockage of the exporter due to upfront payment of GST on inputs, raw materials etc. One component
of the solution was to exempt the IGST and Compensation Cess payable on the imports up to 31.03.2018
made by the holders of Advance Authorization holders (AA)/ Export Promotion Capital Goods (EPCG)
licenses and Export Oriented Units (EOUs).
46.2 Further, it was decided as a long-term solution to implement the e-wallet scheme so that
exporter could pay the GST by using the amount in their e-wallet. A group of Officers on e-Wa1let
Group was constituted, on 16.12.2017 that was chaired by the Chairman, GSTN and included officers
of the Central and State Governments to give recommendations on e-Wallet scheme. While work was
going on the proposed e-Wallet scherm, the exemptions were extended from time to time and are
presently valid up to 31.03.2021.
46.3 It was further stated that over a period of time since the implementation of GST, various
measures have already been taken. These include, declaration of supplies made to EOU/AA/EPCG
holder as deemed export supplies thus making either supplier or receiver to get the refund of GST,
making merchant exporters receive supplies at a nominal rate of 0.1% of GST, enabling online system
for claim of the ITC refund as well as disbursement of refund by the single refund disbursing authority
etc. Implementation of all these measures along with continuation of exemption from IGST, cess, etc
on imports made under AA/EPCG/EOU scheme, seem to suggest that they have largely resolved the
issue of cash blockage and achieved the objective what e-wallet was envisaged to achieve without any
extra burden on IT system and any additional legal/administrative requirement.
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46.4 It was also as stated that on the overall analysis of additional compliance requirements by
suppliers and exporters with little indications of commensurate gains, it was felt expedient to
discontinue pursuing the e-wallet scheme and continue with the present scheme of exemption from
IGST, cess, etc. on imports by AA/EPCG/EOU scheme. Further, at present, tax exemptions on imports
under AA/EPCG/EOU scheme are expiring on 31.03.2021, which is causing uncertainty to exporters.
The trade was also habituated to the system of exemptions which have been repeatedly extended from
time to time. Creating a new system of e-wallet could be disruptive, which is not desirable when a post-
COVID recovery has become a priority. In this background, proposals were submitted to GIC for
approval of the following:
a. Discontinue the pursuance of e-wallet scheme.
b. Continuing the present exemption from the IGST and cess on the imports made under
AA/EPCG/EOU schemes
46.5 In this regard, all the Members of GIC have approved the proposals. Gujarat vide email dated
17-02-2021 has sought additional data on total import of goods made by the taxpayers under
AA/EPCG/EOU schemes, duty foregone and cases booked, if any. The DGEP replied vide OM dated
26-02-2021 to the above comments of Gujarat with additional data sought.
46.6 Gujarat concurred with the proposal vide email dated 09-03-2021. However, they have also
sent a note highlighting the issues pertaining to refund of tax on account of deemed export. They
requested to address these issues while extending exemption benefits to AA/EPCG/EOU scheme. As
these issues are on GST policy & procedures, the same have been forwarded to GST Policy Wing,
CBIC. Thus, all GIC members including Gujarat have agreed to the proposals.
46.7 Decision: The proposal was put before the GIC and the GIC approved the proposal with
following remarks:
“Exemption from payment of IGST, Cess etc. on imports under AA/EPCG/EOU schemes, which
is to expire on 31.03.21, may be continued up to 31.3.22. In the meantime, technical issues
related to e-wallet may be looked into separately.”

GIC Decision by Circulation 22 February 2021
Agenda: Roll out of third phase of e-invoicing with effect from 1st April 2021
47.1 In the Agenda note it was mentioned that Government may start working on enabling the
taxpayers with aggregate annual turnover of Rs. 50 to 100 Crores for e-invoice scheme.
47.2 In this regard, it was submitted that w.e.f. 1st October 2020 first phase of e-invoicing was rolled
out for the taxpayers having aggregate turnover exceeding Rs. 500 Cr in any preceding financial year
from 2017-18 onwards. Further, from 1st January 2021 second phase of e-invoicing was rolled out for
the taxpayers having aggregate turnover exceeding Rs. 100 Cr in any preceding financial year from
2017-18 onwards. The updated figures as received from the NIC are stated as under:



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Number of GSTINs generating IRN, up to 21-02-21.
Taxpayers having AATO > Rs. 500 Crore

Number
enabled
(a)
Registered and
Generating IRNs
(b)
Registered, but not
generating IRNs
(c)
Not Registered
[a-(b+c)]
GSTINs 52307 31587 14337 6383
PANs 6971 5302 1259 410



47.3 The total number of e-invoices generated by taxpayers were also mentioned as under:

Total number of IRNs generated till
31.01.2021
Average IRNs per day
Taxpayers having
AATO > Rs. 500 Crore
22,64,96,765 18,41,437
Taxpayers having
AATO between Rs. 100 -
500 Crore
1,58,94,860 5,12,737
TOTAL 24,23,91,625 19,70,663

47.4 Besides, it was highlighted that data has been received from GSTN related to number of
taxpayers along with their turnover and these are stated as under:
Turnover range Count of Taxpayers
0 -1.5 Cr 57,58,919
1.5 -5 Cr 9,87,107
5-20 Cr 4,72,235
20-50 Cr 1,05,931
Taxpayers having AATO between Rs. 100 - 500 Crore

Number
enabled
Registered and
Generating IRNs
Registered, but not
generating IRNs
Not Registered
GSTINs 81756 42003 26892 13766
PANs 31582 20200 8793 2740
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Turnover range Count of Taxpayers
50-100 Cr 33,869

47.5 Furthermore, it was stated that E-invoice has been one of the major reforms taken by the
Government which is beneficial for both tax administration as well as trade. Therefore, a proposal was
placed before the Law Committee for implementation of third phase of e-invoicing for taxpayers having
aggregate turnover between Rs.20 to Rs.100 crores, from 01.04.2021. For implementing the next phase
w.e.f. 01.04.2021 the eligible taxpayers would be required to acquire the utility for generation of IRNs,
but their integration would allow GSTR-1s to be auto-populated for this segment too. Also,
implementation date is proposed to be 01.04.2021 which would provide sufficient time to the taxpayers
to make necessary IT changes and NIC can enable the specified taxpayers on sandbox for testing.
47.6 It was mentioned that the issue was deliberated by the Law Committee in its meeting held on
10.02.2021 wherein NIC was also present. Based on inputs from NIC, Law Committee decided that the
taxpayers with aggregate turnover between Rs.50 crores to 100 crores be brought in mandatory e-
invoicing w.e.f. 01.04.2021. Further, sandbox testing facility for these taxpayers would be provided by
NIC at the earliest. Accordingly, it was proposed that taxpayers with aggregate turnover exceeding Rs.
50 Cr in any preceding financial year from 2017-18 onwards may be brought under the ambit of e-
invoice in the third phase w.e.f. 01.04.2021.
47.7 Decision: The proposal was put before the GIC and the GIC approved the proposal.

GIC Decision by Circulation 27 February 2021
Agenda: Extension of due date for filing Annual Return for Financial Year 2019-20.

48.1 In the Agenda noteit was mentioned that the time limit for furnishing of the Annual returns
specified under Section 44 of the CGST Act 2017 read with Rule 80 of the CGST Rules 2017 for the
Financial Year 2019-20 was originally 31st December 2020, which was extended to 28.02.2021 vide
Notification No. 95/2020-CT dated 30.12.2020 on the ground that the amended form was made
available on the portal w.e.f 10.12.2020.
48.2 It was further stated that vide Notification No. 47/2019-CT, dated 09.10.2019 read with
Notification No.77/2020-CT, dated 15.10.2020, furnishing of the annual return FORM GSTR-9 for
FY 2019-20 was made optional for registered person having aggregate turnover up to Rs. 2 Crore.
Similarly, registered person having aggregate turnover up to Rs. 5 Crore are not required to furnish
reconciliation statement FORM GSTR-9C. Total number of GSTR-9 and GSTR-9C filed up to 26th
February 2021 for Financial Years 2018-19 and 2019-20 are detailed in the table below: -
2018-19 2019-20

GSTR-9
Persons liable to file GSTR-9 18,27,308 16,41,578
Out of such persons, number of
Persons who have filed GSTR-9.
11,78,976 5,04,117
Total filing of GSTR-9 23,75,958 11,24,763
% filed out of persons who were liable
to file GSTR-9
64.51 30.71
Persons liable to file GSTR-9C 10,27,322 8,86,914
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GSTR-9C Out of such persons, number of
Persons who have filed GSTR-9C.
6,13,485 1,88,092
Total filing of GSTR-9C 6,78,221 2,04,184
% filed out of persons who were liable
to file GSTR-9C
59.72 21.21

48.3 It was further mentioned that the relevant data that for FY 2019-20, the return filing percentage
was still to reach 50% of the numbers of FY 2018-19. Further, return filing percentage of the FY 2019-
20, as on 26.02.2021, is comparatively very low, as only 30.7% of eligible taxpayers i.e., only 5,04,117
taxpayers have furnished their Annual Returns in FORM GSTR-9 and only 21.21% of eligible
taxpayers i.e., only 1,88,092 taxpayers have furnished their Annual Returns in FORM GSTR-9C.

48.4 Further, it was added that in FY 2018-19, the original due date for filing annual return was
31.12.2019, which was extended 6 times to make the final due date as 31.12.2020 due to several reasons
including the hardships faced due to lock-down period in COVID-19.

48.5 Lastly, it was stated that several representations had been received from various stakeholders,
including trade association and tax practitioners, for further extension of due date of GSTR-9 and
GSTR-9C beyond 28.02.2021, on the ground that they have not had sufficient time to prepare and file
these returns owing to their pre-occupation with the filing of annual returns for 2018-19 (for which the
due date was 31.12.2020) and various income tax returns, with the last date for some of them being 15
February 2021. Accordingly, it was proposed that the due date for furnishing of the annual returns
specified under Section 44 of the CGST Act 2017 read with Rule 80 of the CGST Rules 2017 for the
financial year 2019-20 may be extended by one month i.e., till 31.03.2021.

48.6 Decision: The proposal was put before the GIC and the GIC approved the proposal to extend
the due date of annual return for FY 2019-20 till 31-03-2021..
GIC Decision by Circulation 24 March 2021
Agenda: Waiver of Penalty for Issuing Invoice without Dynamic QR Code
49.1 In the agenda note it was stated that notification No. 14/2020-Central Tax, dated 21st March
2020, as amended by notification no. 71/2020-Central Tax dated 30th September 2020, entails the need
for the dynamic QR code on B2C invoice issued by taxpayers having aggregate turnover more than
Rs.500 crore w.e.f. 01.12.2020.
49.2 The GST Policy Wing, CBIC, stated that based on various interactions with banks and trade
bodies, it was noticed that banks and payment service providers were not in a ready state to roll out the
facility for the dynamic QR code w.e.f. 01.12.2020. Accordingly, to facilitate the transition for
implementation of scheme of Dynamic QR Code, the penalty payable under Section 125 of the CGST
Act, 2017 for non-compliance of the provisions regarding Dynamic QR Code, was waived vide
notification no. 89/2020 -CT dated 29th November 2020, for the period from 01.12.2020 to 31.03.2021,
subject to the condition that the said persons comply with the provisions of the said notification from
01.04.2021.
49.3 Meanwhile, to address various queries/issues represented by the trade, Circular number
146/02/2021-GST dated 23-02-2021was issued, which clarified several queries raised by the trade.
Further, the GST Policy Wing, CBIC has stated that to review the progress made by the banks, the
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Member (GST), CBIC conducted review meetings with National Payments Corporation of India (NPCI)
and Banks on 20th January 2021 and 18th March 2021. During the recent review meeting held on 18th
March 2021, the progress of all the banks was individually reviewed. As per feedback provided by the
banks, most of the banks are in advanced stage of development and certification process for Dynamic
QR Code and would be able to go live and release their application by end of March 2021.
49.4 It was further stated that during this period, the GST Policy Wing has also engaged with various
trade associations like NASSCOM, USISPF, Retailers Association of India (RAI), ASSOCHAM and
other major retailers / e-commerce operators wherein it was highlighted by various trade bodies during
these interactions that the banks are yet to release their applications and the technical specifications to
be followed by the taxpayer/merchant’s software to interact with the bank’s applications. The banks
would be able to share the details and specifications with merchants and third-party payment operators
only after the banks finalize their application and specifications. Thus, merchants are dependent on their
banks to initiate making changes in their systems to integrate with bank applications and they would
require time to make changes in their systems after receiving the technical specifications from banks to
go live with their own software/systems to implement the Dynamic QR Code scheme. As per feedback
from trade bodies, they would need at least three more months to be fully compliant with the
requirement of dynamic QR code at their end.
49.5 Accordingly, it was proposed that: the penalty payable under Section 125 of the CGST Act,
2017 for non-compliance of the provisions of notification No.14/2020 – Central Tax, dated the 21st
March 2020 as amended, may be waived further for the period from 01.04.2021 to 30.06.2021, subject
to the condition that the said persons comply with the provisions of the said notification from
01.07.2021.
49.6 Decision: The proposal was put before the GIC and the GIC approved the proposal.
GIC Decision by Circulation 27 March 2021
Agenda: Proposal to Settle an Additional IGST Amount of 28,000 Crore on an Ad-hoc Basis.
50.1 In the Agenda Note it has been mentioned that depending on the amount of IGST remaining
yet to be apportioned, provisional settlement was being done from time to time on an ad-hoc basis. It
was further mentioned the amount apportioned till now and the same is given in the table below:
Sl No. Month Amount Apportioned (In Crore)
1. February- 2018 35000
2. June- 2018 50000
3. August- 2018 12000
4. October- 2018 30000
5. December- 2018 18000
6. March- 2019 20000
7. April- 2019 12000
8. June- 2019 15000
9. March- 2020 6000
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Sl No. Month Amount Apportioned (In Crore)
10. February 2021 48000

These amounts were settled in a ratio of 50:50 to Centre and States and the amount apportioned to States
was divided in the ratio of subsumed/ protected revenue.
50.2 It was also stated that based on the collection of IGST upto 25th March 2021 and considering
the expected IGST collections from the remaining six days of the month, net of refunds and the
settlement of IGST during the period, it was proposed to do provisional settlement of Rs. 28,000 crore,
out of which 50% of it to Centre and 50% of it to States. This would reduce the revenue gap of States
and UTs and also the required Compensation to States.
50.3 Decision: The proposal was put before the GIC and the GIC approved the proposal.
GIC Decision by Circulation 2 April 2021
Agenda1: Reduction in late fee for FORM GSTR-3B for months from July 2017 to February
2021- Amnesty to clean up pendency in return filing in GST regime.
51.1 In the Agenda note it was mentioned that various references have been received from taxpayers,
tax practitioners and associations such as CAIT regarding waiver of late fee imposed due to not
furnishing of FORM GSTR-3B. It has been represented that taxpayers, particularly, the small
taxpayers, could not furnish their returns, especially during COVID times, due to lack of knowledge,
lack of funds and other difficulties faced during lockdown. It has also been submitted that most of such
small taxpayers had very minimal tax liabilities, even, including NIL tax liability. It has been further
represented that that due to non-furnishing of returns, interest and late fees have been piling up and have
now reached a sizeable amount, which in some cases is more than the tax amount itself, which has
become a major deterrent for such taxpayers in filing their pending returns.
51.2 It was further stated that, it is noteworthy that sub-section (10) of section 39 of the Central
Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) provides that,
“A registered person shall not be allowed to furnish a return for a tax period if the return for
any of the previous tax periods has not been furnished by him.”
Thus, taxpayers are not allowed to furnish subsequent returns.
51.3 Further, Section 47 of the CGST Act provides for levy of late fees for non-furnishing of FORM
GSTR-1, FORM GSTR-3 or FORM GSTR-4 of one hundred rupees per day. Presently, late fees for
delay in furnishing of these forms by the due date is twenty rupees per day (Rs. 10/- under CGST Act
plus Rs 10/- under SGST Act) for NIL filers and fifty rupees per day (Rs. 25/- under CGST Act plus Rs
25/- under SGST Act) for others. This late fee is subject to a maximum amount of Rs. 10000/- per return
(Rs. 5000/- under CGST Act plus Rs. 5000/- under SGST Act).
51.4 It was also mentioned that waiver of entire late fee for non-furnishing of FORM GSTR-3B
for the tax period July 2017 to September 2018 was allowed for the taxpayers who furnished FORM
GSTR-3B during the period 22.12.2018 to 31.03.2019 vide notification No. 76/2018-Central Tax, dated
31.12.2018.
51.5 Further, an amnesty scheme by way of reduction in late fee for tax period from July 2017 to July
2020 was again provided vide notification No. 52/2020 – Central Tax, dated 24.06.2020 and 57/2020-
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Central Tax, dated 30.06.2020. The late fee was capped at Rs. 500 per return (Rs. 250 CGST + Rs.
250 SGST) and was made Nil for NIL filers, subject to condition that the returns are filed between
01.07.2020 to 30.09.2020. (For February 2020 to July 2020, the amnesty scheme was applicable if the
returns are filed up to 30.09.2020)
51.6 It was also stated that it was important to note that besides other concerted efforts by tax
administration like handholding of taxpayers and close monitoring of return filing during the filing
cycle, these amnesty schemes had also played a significant role in improving return filing compliance,
which has increased from 55% to 65% approx. earlier to 85% to 90% now. The data suggests that still
there was a gap of approximately 10-12 lakhs returns per month which are yet to be furnished in FORM
GSTR-3B, one of the reasons being the sizeable amount of late fee.
51.7 In order to alleviate the burden of accumulated late fee on businesses, particularly MSMEs, and
to allow them to furnish their pending tax returns henceforth, the following proposals for reduction in
late fees for not furnishing FORM GSTR-3B for tax periods from July 2017 to February 2021 were
made: -
i. late fee may be capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per
return for taxpayers, who did not have any tax liability for the said tax periods and are thus
required to file NIL return.
ii. late fee may be capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST)
per return for taxpayers other than those covered in clause (i)
51.8 Further, it was proposed that such reduction/ capping in late fee should be kept conditional and
would apply only if the returns are filled during a specified period i.e., from 15.04.2021 to 30.06.2021.
51.9 Decision: Though, GIC approved the proposal, however, in view of the resurgence of Covid
and consequential lock-down in many places of the country, it was decided that the above said proposal
be kept in abeyance for the time being.
Agenda item 2: Amendment in Central Goods & Services Tax Rules, 2017 to provide for
withholding of refund, release of withheld refund and withdrawal of refund claim and notifying
FORMs thereof-
52. Withholding of refund and Release of withheld refund
52.1 In the agenda note it was mentioned that both partial and complete adjustment of refund against
any outstanding demand need to be carried out in FORM GST RFD-06, rather than having a separate
form (Part A of FORM GST RFD-07) for complete adjustment.

52.2 Sub-rule (1) of Rule 92 of CGST Rules, 2017 states that:
“92. Order sanctioning refund.-(1)Where, upon examination of the application, the proper
officer is satisfied that a refund under sub-section (5) of section 54 is due and payable to the
applicant, he shall make an order in FORM GST RFD-06 sanctioning the amount of refund to
which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a
provisional basis under sub-section (6) of section 54, amount adjusted against any outstanding
demand under the Act or under any existing law and the balance amount refundable:
Provided that in cases where the amount of refund is completely adjusted against any
outstanding demand under the Act or under any existing law, an order giving details of the
adjustment shall be issued in Part A of FORM GST RFD-07.”
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Thus, the rule, in its present form, clearly states that when amount of refund is completely adjusted
against any outstanding demand under the Act or under any existing law, order has to be passed in Part
A of FORM GST RFD-07.

52.3 However, the current practice, both on the system and in the field, is to use FORM GST RFD-
06 for both partial and complete adjustment of refund. Considering that the said practice is working
without any operational challenges, there does not appear a need for a separate form (Part A of FORM
GST RFD-07) in case when amount of refund is completely adjusted against any outstanding demand
as the same can be done through FORM GST RFD-06.

52.4 Accordingly, the Law Committee, in its meeting held on 7th November 2019 recommended
the following:
a) Both partial and complete adjustment of refund against any outstanding demand should be
carried out in FORM GST RFD-06, rather than having separate form (Part A of FORM GST
RFD-07) for complete adjustment.
b) Further, FORM GST RFD-07 to be amended to provide that Part A thereof shall be for
withholding and Part B for release of the amount withheld.
52.5 Accordingly, GSTN designed the new format for Part A of FORM GST RFD-07 for
withholding of refund and Part B of FORM GST RFD-07 for release of refund which were placed
before the Law Committee in its meeting held on 12th December 2019 wherein the Law Committee
approved the new format. It has been now informed by the GSTN that the amended FORM GST RFD-
07 (PART-A for withholding of refund and Part B for release of withheld refund) have been developed
and have been deployed and therefore, the same needs to be notified.

52.6 However, it was observed that there is a need to have provision for release of withheld refund
in the CGST Rules, similar to the provisions which provide for withholding of refund. Accordingly, a
proposal for amendments in Rule 92 and Rule 96 of the CGST Rules to provide for release of withheld
refund was placed before the Law Committee on 17.03.2021 wherein it was approved.

53. Withdrawal of refund:

53.1 In the agenda note it was further mentioned that GSTN had placed an agenda note before the
Law Committee in the meeting held on 12.12.2019 wherein they had submitted that even though, the
facility to preview the refund application is available to the taxpayer before finally submitting the refund
applications, taxpayers are still making mistakes in the refund application. Further, there is no
functionality available on the portal to correct any mistakes made in the refund application after the
submission of the refund application and once the application has been rejected by the tax officer on
account of the mistakes made in the refund application, the system does not allow filing the refund
application again, for the same tax period, even after correcting such a mistake and the only resort
available with the taxpayer is such cases is to file an appeal against the rejection. However, the appeal
route is more tedious and time consuming.
53.2 In view of the aforesaid facts, the GSTN proposed to introduce a functionality for withdrawal
of refund application, if the taxpayer has committed any error or has filed the refund application by
mistake. Accordingly, GSTN designed a format i.e., FORM GST RFD-01W in which the taxpayer
would be able to file request for withdrawal of refund claim even if the refund application has been
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acknowledged. However, the taxpayer would not be able to withdraw the application if the officer has
issued RFD-04/05/06/07/08 against the said application.

53.3 The said agenda was placed before the Law Committee in the meeting held on 12.12.2019
wherein GSTN sought approval for introduction of the facility and the format i.e., FORM GST RFD-
01W and to seek clarification whether the system should block further processing of the refund
application after submission of RFD-01W by the taxpayer or should it wait for the approval of the
refund processing officer. The Law Committee in the said meeting approved the introduction of the
facility for withdrawal of refund and the format of the said FORM GST RFD-01W with the comment
that the taxpayer would be allowed to withdraw the refund claim only in cases where no action, other
than acknowledgment, has been taken. Further, the Law Committee in its meeting held on 17.03.2021
approved a proposal to amend Rule 90 of CGST Rules, 2017 to provide for withdrawal of refund
application by filing FORM GST RFD-01W.

53.4 Decision: GIC approved the proposal for amendment in Central Goods & Services Tax Rules,
2017 to provide for withholding of refund, release of withheld refund and withdrawal of refund claim
and notifying amendment in FORMs.

Agenda item 3: Amendments required in CGST Rules, 2017 in consequence of notifying the
provisions of Finance Act, 2020 with effect from 01.01.2021 vide Notification No. 92/2020-Central
Tax dated 22.12.2020.
54.1 In the agenda note it was mentioned that specified provisions of the Finance Act, 2020, relating
to the amendment in the CGST Act, have been notified with effect from 01.01.2021 vide, notification
No. 92/2020-Central Tax dated 22.12.2020. The CGST Rules corresponding to the relevant sections
have been analysed and it has been observed that amendment as carried out in section 30 of the CGST
Act, 2017 requires a consequential amendment in Rule 23 and FORM GST REG-21 of the CGST
Rules
54.2 In section 30 of the CGST Act, which is regarding “Revocation of cancellation of registration”,
a proviso to sub-section (1) of section 30 of the CGST Act has been inserted vide Finance Act, 2020 to
provide for extension of time limit for applying for revocation of cancellation of registration on
sufficient cause being shown, by:
(a) the Additional or Joint Commissioner, as the case may be, for a period not exceeding thirty
days.
(b) the Commissioner, for a further period not exceeding thirty days, beyond the period
specified in clause (a) above.
54.3 In view of the aforementioned amendment, amendment was proposed in Rule 23 which
provides for a detailed procedure for revocation of cancellation of registration and FORM GST REG-
21 of the CGST Rules. It is proposed that in respect of the time limit provided for filing an application
for revocation of cancellation of registration, in FORM GST REG-21, the provision for extension of
time by the Additional Commissioner or the Joint Commissioner or Commissioner, as per amended
Section 30 of the CGST Act 2017, be included in the rule and the FORM.
54.4 Further, till the time an independent functionality for extension of time limit for applying in
FORM GST REG-21 is developed on the GSTN portal, it is proposed to issue a Standard Operating
Procedure (SOP) for implementation of the amended provisions of section 30 of the CGST Act.
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54.5 The issue was placed before the Law Committee in its meeting dated 17.03.2021 and the Law
Committee has recommended for amendment in the said rule and issuance of the proposed SOP.
Accordingly, Agenda note (along with draft notification and SOP)was placed before the GIC for
approval of the proposal for amendment in Rule 23, FORM REG-21 and issuance of SOP.
54.6 Decision: The GIC approved the proposal along with draft Notification and SoP.

GIC Decision by Circulation 20 April 2021
Agenda: Amendment of Rule 26(1) to Allow Corporates to Furnish FORM GSTR-1/IFF and
FORM GSTR-3B Using Electronic Verification Code (EVC).
55.1 In the Agenda note it was mentioned that proviso to sub-rule (1) of rule 26 of CGST Rules,
2017 provides that a registered person registered under the provisions of the Companies Act, 2013 (18
of 2013) shall furnish the documents or application verified through digital signature certificate (DSC).
In this context, various stakeholders had represented that due to the restrictions imposed in view of
COVID-19 pandemic, they are facing difficulties in accessing or using their Digital Signature (DSC).
Accordingly, it was being requested that they be allowed to furnish the documents or applications
through Electronic Verification Code (EVC).
55.2 It was further stated that the relaxation on similar lines was also provided last year in respect of
filing of GSTR-3B and GSRT-1 in view of the COVID 19 related restrictions and difficulties.
Notification No. 48/2020- Central Tax dated 19.06.2020 inserted the following provisos in rule 26 in
sub-rule (1):
“Provided further that a registered person registered under the provisions of the Companies
Act, 2013 (18 of 2013) shall, during the period from the 21st day of April 2020 to the 30th day
of September 2020, also be allowed to furnish the return under section 39 in FORM GSTR-3B
verified through electronic verification code (EVC).
Provided also that a registered person registered under the provisions of the Companies Act,
2013 (18 of 2013) shall, during the period from the 27th day of May 2020 to the 30th day of
September 2020, also be allowed to furnish the details of outward supplies under section 37 in
FORM GSTR-1 verified through electronic verification code (EVC).”
55.3 It was also mentioned that in view of the recent restrictions imposed in various states for
containment of COVID-19, similar relaxation might be provided in respect of the furnishing of GSTR-
3B and GSTR-1/ IFF. Accordingly, the following proviso was proposed to be inserted in sub-rule (1)
of rule 26 of CGST Rules, 2017 after the third proviso: -
“Provided also that a registered person registered under the provisions of the Companies Act,
2013 (18 of 2013) shall, during the period from the 27th day of April 2021 to the 31st day of May
2021, also be allowed to furnish the return under section 39 in FORM GSTR-3B and the details
of outward supplies under section 37 in FORM GSTR-1 or using IFF, verified through
electronic verification code (EVC).”
55.4 Decision: The proposal was put before the GIC and the GIC approved the proposal.

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GIC Decision by Circulation 26 April 2021
Agenda: Amendment in Rule 138E of CGST Rules, 2017 Which Provides for Blocking of e-way
Bill in Respect of Supplies Made by a Defaulting Registered Person.
56.1 In the Agenda note it was mentioned that as per Rule 138E of CGST Rules 2017, the E-Way
Bill generation facility by a consignor, consignee, transporter, an e-commerce operator or a courier
agency) in respect of a registered person, whether as a supplier or a recipient, is liable to be restricted,
in case the said registered person fails to file their GSTR-3B returns for a consecutive period of two tax
periods or more or CMP-08 statements for two consecutive quarters or more. The biggest concern for
a taxpayer with this new system is that if the recipient of goods has not filed the returns for more than
two months, and EWB facility in respect of such recipient is blocked in terms of provisions of Rule
138E, then the supplier will not be able to generate EWB in respect of any supply to such recipient. The
GST Policy Wing, CBIC has stated that representations have been received claiming that in such a case,
for the mistake of the recipient, the supplier’s business is made to suffer.
56.2 It was also stated that the suppliers had already manufactured goods as per the order received
from the recipient and therefore, blocking of e-way bill for their supply to the defaulting recipient may
adversely affect the business of suppliers and cause loss to them even though they may be fully
compliant with the provisions of GST laws. The supplier cannot deliver goods without an e-way bill
and if the goods are transported by them to such recipient (in respect of whom generation of e-way bill
is blocked) without an e-way bill, then such movement of goods will be in contravention of provisions
of CGST Act and Rules. Such goods may be liable to detention/ seizure during movement and may be
liable to penal action as per the provisions of the CGST Act/ Rules.
Preventing supply of goods by suppliers to such defaulting recipients adversely affects the business of
the compliant supplier, which may not be the intention while introducing the said provision of blocking
of e-way bill under Rule 138E of CGST Rules, 2017. The GST Policy Wing, CBIC has stated that it
was represented that issuance of e-way bill by the compliant supplier might not be blocked, in respect
of supply made to such recipient who had defaulted in furnishing two consecutive returns, as per Rule
138E of CGST Rules, 2017. This would ensure that business of suppliers is not adversely affected and
they are able to generate e-way bills in respect of supplies to such defaulting recipients and make their
supplies.
56.3 It was further stated that the intention of this rule was not to penalize the supplier for the default
of the recipient. The intention was also not to prevent other suppliers from doing their business with the
defaulter recipient since it affects the supplier’s business who themselves may be compliant with the
provisions of law. The rationale of the rule was to prevent those taxpayers, who do not file the returns
for two or more tax periods, from making further supplies and from generating e-way bill for the said
supplies to be made by them, as it would be to the detriment to government’s revenue. Therefore, the
GST Policy Wing, CBIC has proposed that rule 138E may be suitably amended to prescribe blocking
of e-way bill only in respect of supplies made by the person who fails to file their GSTR-3B returns for
a consecutive period of two tax periods or more or CMP-08 returns for two consecutive quarters or
more, and not in respect of supplies made to such defaulting taxpayer as recipient.
56.4 The issue was discussed in Law Committee meeting held on 16.04.2021. Law Committee, in
the said meeting has approved the following change/amendment (in red) in Rule 138E as mentioned
below: -
“138E. Restriction on furnishing of information in PART A of FORM GST EWB-01.- Notwithstanding
anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee,
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transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information
in PART A of FORM GST EWB-01 in respect of any outward movement of goods of a registered person,
whether as a supplier or a recipient, who, —
(a) being a person paying tax under section 10[or availing the benefit of notification of the Government
of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the
7thMarch, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)
vide number G.S.R. 189, dated the 7thMarch, 2019,], has not furnished the [statement in FORM GST
CMP-08] for two consecutive [quarters]; or
(b) being a person other than a person specified in clause (a), has not furnished the returns for a
consecutive period of [two tax periods ]:
Provided that the Commissioner may, on receipt of an application from a registered person in FORM
GST EWB-05, on sufficient cause being shown and for reasons to be recorded in writing, by order, [in
FORM GST EWB-06 allow furnishing of the said information in PART A of FORM GST EWB 01,
subject to such conditions and restrictions as may be specified by him:
Provided further that no order rejecting the request of such person to furnish the information in PART
A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a
reasonable opportunity of being heard:
Provided also that the permission granted or rejected by the Commissioner of State tax or
Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by
the Commissioner.
(c) being a person other than a person specified in clause (a), has not furnished the statement of outward
supplies for any two months or quarters, as the case may be.
(d) being a person, whose registration has been suspended under the provisions of sub-rule (1) or sub-
rule (2) or sub-rule (2A) of rule 21A.
Explanation: – For the purposes of this rule, the expression “Commissioner“ shall mean the
jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).”
56.5 Decision: GIC approved amendment in Rule 138E of CGST Rules, 2017 as proposed in the
agenda note.
Agenda Note 2: Regarding Excluding the Time Period between Filing of Original Refund
Application to Issuance of Deficiency Memo for Computation of Time for Filing Refund Under
Sub-section (1) of Section 54.
57.1 In the agenda note it was stated that sub-section (1) of Section 54 provides the time frame within
which a claim for refund can be filed by any person. The sub-section (1) of section 54 is reproduced as
under:
“(1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other
amount paid by him, may make an application before the expiry of two years from the relevant
date in such form and manner as may be prescribed:”
On perusal of the above provision, it can be observed that time limit of two years from the relevant date
has been provided for making application of refund under GST. Relevant date for different categories
of refund has been defined in Explanation (2) under Section 54 of the CGST Act, 2017.
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57.2 Further, sub-rule (3) of Rule 90 provides that in case any deficiencies were noticed in the refund
application, the proper officer should communicate the same to the applicant in FORM GST RFD-03
through the common portal. The rule also provides that in such case, the applicant would be required to
file fresh refund application for refund after rectification of such deficiencies. Accordingly, system had
been designed in such a way that on issuance of deficiency memo in FORM GST RFD-03 in respect of
any refund application, any amount debited from the electronic credit ledger/electronic cash ledger at
the time of filing refund application, gets re-credited to the respective ledger requiring the taxpayer to
debit the amount again while filing a fresh refund application after correction of deficiencies.
57.3 The GST Policy Wing, CBIC has further stated that instances had been brought to notice
wherein, due to issuance of deficiency memo in FORM GST RFD-03, the time period of 2 years
provided under sub section (1) of section 54 of CGST Act 2017 from the relevant date for filing a fresh
application of refund after rectification of deficiencies has already elapsed due to time taken by the
proper officer for issuance of deficiency memo in FORM GST RFD-03 in respect of the original refund
application. The fresh refund application, filed post rectification of deficiencies, after stipulated period
of 2 years from the relevant date, was rejected by the proper officer on the grounds of time bar. The
taxpayers feel aggrieved in such cases as they would not be able to get any relief from the Appellate
authority, as the provisions of Law and Rules were clear that any claim filed after rectification of
deficiencies was treated as a fresh refund claim and the time bar aspect for such claims had to be
ascertained in terms of sub-section (1) of section 54 of CGST Act 2017.
Petitions have been filed in High Courts for seeking relief in this regard requesting to consider the date
of filing of first/original application for the purpose of sub-section (1) of Section 54.
57.4 In this regard, it was stated that the taxpayer should not be unfairly made to face adverse
consequences due to time taken in issuance or wrong issuance of deficiency memo, if any, on the part
of the proper officer; and therefore, a refund claim, filed after rectification of deficiency, should not
become time barred under the provisions of sub—section (1) of section 54 of CGST Act 2017, merely
because of this. It was, therefore, proposed that the time period from the date of filing of original refund
claim to the date of issuance of Deficiency Memo in FORM GST RFD-03 might not be taken into
consideration and be excluded for the purpose of computation of time period of 2 years as provided in
sub-section (1) of Section 54 of CGST Act, 2017, in respect of any fresh refund claim filed after
rectification of deficiencies.
57.5 Further, GSTN had developed a functionality for Model II States/UTs wherein the details of
deficiency memo issued would be displayed to the tax officers, while processing the subsequent fresh
refund applications, if filed by the taxpayer for the same period. Thus, the proper officer could easily
calculate whether the claim is hit by the limitation of time by excluding the time taken for issuance of
deficiency memo, in respect of original refund application, from the time period between the relevant
date and date of filing of the fresh claim and accordingly, pass a speaking order.
57.6 Accordingly, it was proposed to insert the following proviso after sub-rule (3) of Rule 90 of
CGST Rules 2017:
“Provided that the time period, starting from the date of filing of the refund claim in FORM
GST RFD-01 by the applicant to the date of communication of the deficiencies in FORM GST
RFD-03 by the proper officer, shall not be taken into consideration for determining the
limitation of time under sub-section (1) of Section 54, in respect of any such fresh refund claim
filed by the applicant after rectification of the deficiencies.”
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57.7 The said agenda for amendment of CGST rules for insertion of proviso after sub-rule (3) of
Rule 90 was placed before the Law Committee in meeting held on 16.04.2021, wherein it was approved.
58. The proposal was put before the GIC and the GIC approved the proposal.

GIC Decision by Circulation 29 April 2021
Agenda: Relief Measures to taxpayers from Various Compliances in GST due to Lockdown /
Restrictions Imposed for Containment of COVID
59.1 In the agenda note it was stated that in light of the recent unprecedented surge of cases of
COVID-19 and crisis due to this pandemic being faced all over the country, a number of states have
taken and announced lockdown/ various restrictions on movement of people and working of offices of
private and government establishments, affecting trade and industry also. In Mumbai, for instance,
curfew has been imposed from night of 14th April 2021 till morning of 1st May 2021 and private offices
have been asked to remain closed while Government offices have been directed to manage with 15%
attendance of staff. Similarly, Delhi had imposed curfew from the night of 19th April 2021 to morning
of 3rd May 2021 with severe restrictions on non-essential business and services. Other states like
Uttarakhand, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Haryana, UP and many other States
have also imposed such restrictions in various parts of the states. Some other states had imposed
weekend curfews and night curfews in their states. All these measures, along with the severity of
COVID 19 in various parts of the country, had adversely affected functioning of trade and industry
throughout the country, including difficulties in time bound statutory compliances under various
provisions of GST laws.
59.2 In view of prevailing situation, the GST Policy Wing of CBIC has stated that a number
of representations were received from various trade associations, tax practitioners’ associations and
some state governments like Maharashtra, Bihar, Rajasthan, UP etc, highlighting the need for various
relief measures in this period of crisis for taxpayers relating to statutory and regulatory compliances in
GST, including extension of due dates.
59.3 It was further stated in the agenda note that in view of the challenges faced by taxpayers in
meeting the compliance requirements because of lockdown/ restrictions imposed due to COVID-19
pandemic during early phase of Year 2020, various relief measures relating to statutory and regulatory
compliance under GST were taken in the year 2020. However, this year, the nature of lockdown and
its extent is different because of which the measures proposed now are at variance with last year. For
instance, none of the States appear to have placed any restrictions on the movement of goods during the
second wave unlike a complete lockdown in the initial phase in 2020. E-way bill data also does not
show a fall in the number or value of bills generated during April 2021 vis-a-vis April 2019 (treating
April 2020 as an atypical period). As such, there does not appear to be a need to extend the validity of
e-way bills as was done in 2020.

59.4 Keeping above factors in mind, the following measures for providing relief to the taxpayers in
GST related compliances are proposed:



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59.5 FORM GSTR-3B
For registered persons having aggregate turnover above Rs. 5 Crore
i. A lower rate of interest @ 9% for first 15 days after the due date of filing return in FORM
GSTR-3Bfor the tax period March, 2021 and April, 2021 may be notified. Rate of interest for
delay in payment of GST is otherwise notified as 18% per annum.
ii. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax
periods March, 2021 and April, 2021 may be provided for 15 days from the due date of
furnishing FORM GSTR-3B.
For registered persons having aggregate turnover up to Rs. 5 Crore
i. For the tax periods March, 2021 and April, 2021 (for the taxpayers opting to file
monthly returns) / Jan-March, 2021 (for taxpayers filing quarterly returns under QRMP
scheme), NIL rate of interest for first 15 days from the due date of furnishing the return
in FORM GSTR-3B and reduced rate of interest @9% thereafter till further 15 days
may be notified. Rate of interest for delay in payment of GST is otherwise notified as
18% per annum.
ii. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax
period March, 2021 and April, 2021 (for taxpayers filing monthly returns) / Jan-
March, 2021 (for taxpayers filing quarterly returns under QRMP scheme) may be
provided for 30 days from the due date of furnishing FORM GSTR-3B.
iii. Waiver of interest for 15 days for taxpayers filing delayed PMT-06 Challan (for
payment of tax liability) and reduced rate of interest of 9% thereafter for 15 days
further, from due date of filing PMT-06 challan (which is 25thMay 2021) for the month
of April, 2021 may be notified for QRMP taxpayers filing quarterly returns.
59.6 For registered persons who had opted to pay tax under the Composition scheme.
i. FORM GSTR-4: Due date may be extended from 30th April, 2021 to
31st May, 2021.
ii. FORM CMP-08: NIL rate of interest for first 15 days from the due date
of payment of self-assessed tax and 9% for the next 15
days, for the quarter ending 31st March, 2020. The due
date was 18th April, 2021.

59.7 FORM ITC-04: It is the statement filed by taxpayers who send the goods on job work. The due
date of furnishing FORM ITC-04 for QE March, 2021 is 25th April. It is proposed that the same may
be extended till 31st May, 2021.

59.8 FORM GSTR-1/ IFF: Due date of furnishing GSTR-1/ IFF for the month of March 2021 (due
in April) was already over before lockdown restrictions in the states were imposed and accordingly,
extension is not required for the same for March 2021. However, it is proposed that due date of
filing GSTR-1 and IFF for the month of April (due in May) may be extended by 15 days.
Consequently, the restriction on availment of credit by taxpayers over and above those declared by
their suppliers in their GSTR-1, under Rule 36(4) for tax period April 2021 may be deferred and may
be applied commutatively in the return for tax period May 2021.
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59.9 Extension in statutory time limits under section 168A

59.9.1 It was proposed that any time limit for completion or compliance of any action, by any authority
or by any person, under the GST Act, which falls during the period from the 15th April, 2021 to the
30th May, 2021 (with suitable exemptions as provided last year vide Notification 35/2020-Central
Tax) may be extended upto the 31st May, 2021, as per the powers granted under section 168A of the
CGST Act 2017, invoking force majeure, due to pandemic. Also, no extension of validity of e-way bills
is being proposed this year, unlike last year, as per reasons discussed in Para 59.3 above.

59.9.2 Further, it was noted that while section 25 pertaining to GST registration might be exempted
from the extension of time limit under Section 168A (as done last year), adequate time might be
provided to the officer to verify the application for registration under rule 9 of CGST Rules so as
to avoid deemed registration during the time period ranging from 1st May, 2021 to 31st May 2021.
Hence, it was proposed that where any time limit for completion of any action, by any authority, has
been specified in, or prescribed or notified under under rule 9 of the Central Goods and Services Tax
Rules, 2017, which falls during the period from the 1st May, 2021 to the 31st May, 2021, the same may
be extended up to the 15th June, 2021.

59.9.3 In the year 2020, vide Notification No. 46/2020 issued under section 168A, officers were
allowed additional time limit for issuance of the refund order upto fifteen days after the receipt of
reply to the notice from the registered person or 30th day of June,2020, whichever is later. Such
provision was required since the taxpayers were provided extension till 30th June, 2020 to reply to the
notice for rejection of refund application (whether in part or full) as per extension of time lines under
Section 168A as per Notification No. 35/2020. In cases where the taxpayers submitted the reply on or
just before the due date, it left little time with officers to scrutinise the reply since the due date for
issuance of order was also to be 30th June 2020 in many cases due to the said notification. A similar
provision might be provided this year also wherein officers to be allowed additional time limit for
issuance of the refund order up to fifteen days after the receipt of reply to the notice from the registered
person or31st May, 2021, whichever is later.

60. Decision: The proposal was put before the GIC and the GIC approved the proposal along with
the draft Notifications.

GIC Decision by Circulation 1 May 2021
Agenda: Reduction in IGST Rate for Oxygen Concentrators Imported for Personal Use
61.1 In the agenda note it was stated that Heading 9804 of the Tariff covers all goods imported for
personal use. The present applicable IGST rate, item wise for this heading (9804) is stated as under:
i. 5 % Rate Schedule
S. No Heading Description Rate
263 9804
Drugs or medicines including their salts and esters and
diagnostic test kits specified at S.No.180 above and
Formulations specified at S.No.181 above, intended
for personal use.
(2.5% +2.5%)

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ii. 12% Rate Schedule

S. No Heading Description Rate
241 9804
Other Drugs and Medicines intended for personal
use
(6%+6%)

iii. 28% Rate Schedule

S. No Heading Description Rate
227 9804 All goods intended for personal use (14%+14%)

61.2 It was further stated that as per the above rate structure, the import of Oxygen Concentrators
for personal use (say through courier mode), gets classified under HSN code 9804 and attracts GST at
the rate of 28% (i.e., rate as applicable to all dutiable goods imported for personal use). The
commercial/general imports of Oxygen Concentrators fall under HSN code 9019 and attract GST rate
of 12%. Thus, personal imports of oxygen concentrator are attracting a higher rate of IGST of 28% as
compared to general imports thereof which attracts IGST at the rate of 12%. Keeping in mind the surge
in COVID-19 cases in the wake of second wave of the pandemic in recent weeks, Government have
already exempted specified medical equipment for Oxygen therapy of COVID patients, including
‘Oxygen Concentrators’ from Basic Customs Duty and Health Cess on 24 April, 2021. On 30.4.2021,
DGFT have also issued a notification to allow imports of this item for personal use under Heading
No.98.04.
In view of unprecedented situation and the sudden hike in the demand for this item in the country, a
large number of representations have been received seeking relief from IGST on personal imports of
oxygen concentrators on par with their general imports.
61.3 It was also highlighted that the request merits consideration in the circumstances of exceptional
and grave nature. Normally, rate related issues are examined by the Fitment Committee for making
recommendation to the Council for taking a view by the Council on GST rates. However, in the present
extraordinary circumstances, it is not feasible to do so in view of time constraints and pressing situation.
It is also to mention that the Council has vested in the Finance Minister the power to consider ad-hoc
IGST concessions, which are then later placed before the Council for information. The concession being
demanded is quite genuine and needs immediate consideration. Hence in the circumstances of
exceptional nature, it has been felt that matter may be placed before the GIC for considering a short
term relief (up to 30.6.2021) by way of a concessional rate of IGST of 12% on personal imports of
concentrators under heeding 9804. The change will only bring parity between all kinds of imports of
oxygen concentrators.
61.4 Accordingly, the following proposal was placed before the GIC for immediate consideration:
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Proposal: To reduce IGST on oxygen concentrator imported for personal use, falling under heading
9804, from 28% to 12% to bring the rate at par with commercial imports of ‘oxygen concentrators’.
The concessional rate of IGST on such imports shall apply up to 30th June 2021.
62. The proposal was put before the GIC and the GIC approved the proposal.


















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Agenda Item 4: Status report of creation of GRC Zone–wise (CBIC) and States/UTs as on
15.05.2021
Reference invited to the 38th GST Council meeting held on 18.12.2019, which approved
constitution of Grievance Redressal Committee at Zonal/State level consisting of both Central tax and
State tax officers, representation of trade and Industry and other GST stake holders for establishing a
mechanism to tackle grievances of tax payers.
2. In view of the above decision, an order regarding constitution of Grievance Redressal
Committee was issued by the CBIC vide F. No. 20/10/16/2018-GST (Pt. 1) dated 24.12.2019.
3. Accordingly, OM dated 30.12.2019 was issued by GSTC Secretariat for constitution of
Grievance Redressal Committee at Zonal/State level. Reminder was also sent to the remaining
States/Zones vide OM dated 02.06.2020, 20.07.2020, 24.08.2020, 16.09.2020, 09.10.2020 and
31.12.2020. Reminder mails were also sent on 05.04.2021 and 15.05.2021.
4. As resulting above, following GRC by the State/Centre level have already been constituted.
Sl. No. State/UTs Centre State/Centre level GRC
1.
Jammu and
Kashmir
Chandigarh
Order No. 02/2020 dt. 23.01.2020
2.
Himachal
Pradesh
Order No. 04/2020 dt. 23.01.2020
3. Punjab Order No. 03/2020 dt. 23.01.2020
4. Chandigarh Order No. 01/2020 dt. 23.01.2020
5. Ladakh Order No. 02/2020 dt. 23.01.2020
6. Andhra Pradesh Vishakhapatnam Order No. 01/2020 dt. 31.01.2020
7.
Arunachal
Pradesh
Guwahati
Order No. 02/2020 dt. 11.03.2020
8. Assam Order No. 01/2020 dt. 11.03.2020
9. Manipur Order No. 03/2020 dt. 11.03.2020
10. Meghalaya Order No. 04/2020 dt. 11.03.2020
11. Mizoram Order No. 05/2020 dt. 11.03.2020
12. Nagaland Order No. 06/2020 dt. 11.03.2020
13. Tripura Order No. 07/2020 dt. 11.03.2020
14. Bihar
Ranchi
Order No. 01/2020 dt. 21.02.2020
15. Jharkhand Order No. 02/2020 dt. 21.02.2020
16. Chhattisgarh
Bhopal
Order No. NIL dt. 20.01.2020
17. Madhya Pradesh Order No. NIL dt. 20.01.2020
18. Delhi Delhi Order No. 01/2020 dt. 10.06.2020
Agenda for 43rd GSTCM Volume 1
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Sl. No. State/UTs Centre State/Centre level GRC
19. Goa Pune Order No. 01/2020 dt. 15.01.2020
20. Karnataka Bangalore Order No. 01/2020 dt. 10.01.2020
21. Kerala
Thiruvananthapuram
Order No. 01/2020 dt. 10.02.2020
22. Lakshadweep Order No. 01/2020 dt. 03.07.2020
23.
Maharashtra
Mumbai Order No. 04/2020 dt. 10.01.2020
24. Pune Order No. 02/2020 dt. 15.01.2020
25. Nagpur Order No. 01/2020 dt. 28.01.2020
26. Odisha Bhubaneshwar Order No. NIL dt. 05.03.2020
27. Rajasthan Jaipur Order No. 01/2020 dt. 16.01.2020
28. Sikkim
Kolkata
Order No. 33/2020 dt. 20.02.2020
29. West Bengal Order No. 62/2020 dt. 29.05.2020
30. Telangana Hyderabad Order No. 01/2020 dt. 29.01.2020
31.
Uttar Pradesh
Meerut Order No. 01/2020 dt. 01.02.2020
32. Lucknow Order No. 01/2020 dt. 27.02.2020
33. Uttarakhand Meerut Order No. 01/2020 dt. 01.02.2020
34. Vadodara
Vadodara

Order No. NIL dt. 05.02.2020
35.
Dadra Nagar
Haveli
Order No. NIL dt. 29.07.2020
36. Daman and Diu Order No. NIL dt. 29.07.2020
37. Puducherry
Chennai
Order No. NIL dt. 18.08.2020
38. Tamil Nadu Order No. 01/2020 dt. 18.08.2020
39.
Andaman and
Nicobar Islands
Kolkata
Order No. 70/2020 dt. 15.06.2020


5. Following State/Centre has still to constitute GRC which have been requested vide this office
reminder OMs.
Sl. No. State/UTs Centre State/Centre level GRC
1. Gujarat Ahmedabad Pending
2. Haryana Panchkula Pending

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6. It is also informed that GSTN has created a specific portal for uploading the grievances
received in these meetings, for the purpose of escalating the same to the appropriate authority. The
CBIC Zones/States/UTs are requested to take login credentials from GSTN for the aforesaid portal.
7. The latest status of the above constitution of Grievance Redressal Committee at
Zonal/State level for redressal of grievance of taxpayers on GST related issues is placed before
the 43rd meeting of the GST Council scheduled on 28.05.2021 for information.

























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Agenda Item 5 – Performance Report of the NAA (National Anti-profiteering Authority) for the
2nd quarter (July,2020 to September,2020), 3rd quarter (October 2020 to December 2020) and 4th
quarter (January 2021 to March 2021) for the information of the Council
In terms of provisions of clause (iv) of Rule 127 of the CGST Rules 2017, National Anti-
Profiteering Authority (NAA) is required to furnish a performance report to the GST Council by 10th of
the closing of each quarter. Anti-profiteering provisions are contained under Section 171 of the CGST
Act, 2017 which empowers NAA to determine as to whether benefit of reduced rate of tax or the Input
Tax Credit (ITC) has been passed on to the recipient by way of commensurate reduction in the prices
and in case of failure, NAA may order reduction in prices, commensurate benefit to recipient, impose
penalty and cancel registration, in suitable cases.
2. Anti-profiteering mechanism under GST is a multi-tier mechanism. The methodology of
examination of the complaints to determine profiteering is asunder:
i. State Level Screening Committee (SLSC) examines State level complaint and recommends to
the Standing Committee (SC);
ii. SC, in addition to complaints recommended by SLSC, also receives complaint directly in
respect of suppliers having pan India or presence in more than one State/UT;
iii. SC examines and sends recommendation to the DG, Anti-profiteering (DGAP);
iv. DGAP then completes investigation, within a period of 3 months, and furnishes a report of its
findings to NAA;
v. Based on the report from DGAP, NAA determines all aspects relating to profiteering, passes its
order regarding reduction in prices; return of amount to recipient; imposition of penalty; and
cancellation of registration.
3. Accordingly, the performance report of anti-profiteering for the 2nd quarter (July to September,
2020, 3rd quarter (October to December, 2020) and 4th quarter (January to March, 2021) of Financial
Year 2020-21 at various levels, is as under:
3.1 Performance of National Anti-Profiteering Authority:
Opening
Balance
No. of Investigation
Reports received
from DGAP during
the quarter
Disposal of Cases (during Quarter)
Closing
Balance Total Disposal
during quarter
No. of cases
Where
Profiteering
established
No. of cases Where
Profiteering not
established
No. of cases
referred back
to DGAP
Quarter 1st July, 2020 to 30th September, 2020
66 20 14 12 1 1 72
Quarter 1st October, 2020 to 31st December, 2020
72 41 34 15 2 17 79
Quarter 1stJanuary, 2021 to 31st March, 2021
79 50 2 1 0 1 127

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3.2 Performance of DG (Anti-profiteering):
Opening
Balance (No.
of cases)
Receipt Disposal
Mode of disposal of cases
Closing Balance (No. of cases)
Report to NAA
confirming
profiteering
Report to
NAA for
closure action
Quarter 1st July, 2020 to 30th September, 2020
116 15 19 13 6 112
Quarter 1st October, 2020 to 31st December, 2020
112 50 38 34 4 124
Quarter 1stJanuary, 2021 to 31stMarch, 2021
124 14 55 42 13 83

3.3 Performance report of the Standing Committee on Anti-profiteering:
Opening Balance (No. of
cases)
Receipt Disposal Closing Balance (No. of cases)
Quarter 1st July, 2020 to 30th September, 2020
31 180 160 51
Quarter 1st October, 2020 to 31st December, 2020
51 137 94 94
Quarter 1stJanuary, 2021 to 31st March, 2021
94 351 188 257

3.4 Performance report from the State Level Screening Committee:
Opening Balance
(No.
of cases)
Receipt
Disposal
Closing Balance (No.
of cases)
Cases referred to
Standing Committee
Cases Rejected
Quarter 1st July, 2020 to 30th September, 2020
18 70 34 24 30
Quarter 1st October, 2020 to 31st December, 2020
30 83 46 7 60
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Quarter 1stJanuary, 2021 to 31st March, 2021
62* 129 46 110 35

*In earlier report (Qtr. Ending December 2020) Odisha was not included since Report was not received
from Odisha. Now Odisha is included in this report so the total Closing Balance of Quarter ending
December 2020 and Opening Balance of Quarter ending March 2021 differ by 2.
Note: A detailed performance of each State Level Screening Committee is enclosed at Annexure “A”
(Quarter ending September, 2020), Annexure “B” (Quarter ending December, 2020) and Annexure “C”
(Quarter ending March, 2021).
4. During these quarters NAA has undertaken the following activities/initiatives-
i. Vide DO letter dated 20.10.2020, the Chief Secretary/Special Chief Secretary, Govt.
of Telangana was requested for establishment of a permanent secretariat and
appointment of a Nodal officer of the Telangana State Level Screening Committee on
Anti-profiteering for quick disposal of pending complaints.
ii. Vide D.O. letter dated 26.10.2020, the Secretary, Deptt. of Public Sector Enterprises,
Ministry of heavy industries & public enterprises, Govt. of India was requested to
sensitise all the CMDs/MDs of all PSUs/PSEs to oversee whether the rate reduction
and ITC benefit have been passed on by the contractors/vendors to PSUs/PSEs with
the implementation of GST.
iii. Vide D.O. letter dated 26.10.2020, the Secretary, Deptt. of Expenditure, Ministry of
Finance, Govt. of India was requested to sensitise all the Additional Secretaries/Joint
Secretaries (Financial Advisors) of all Central Govt. Departments and associated
offices to oversee whether the rate reduction and ITC benefit have been passed on by
the contractors/vendors to all such departments and offices with the implementation of
GST.
iv. Vide D.O. letter dated 03.11.2020, the Revenue Secretary, Ministry of Finance, Govt.
of India was intimated regarding aforesaid DOs.
v. Sh. J. C. Chauhan, Technical Member has superannuated from the Authority on
13.12.2020 on attaining the age of 65 years.
vi. Vide order No. 235/2020 dated 29.12.2020, Sh. Navneet Goel, IRS (C&IT) has been
appointed as Technical Member in the Authority for a period of two years from the
date of assumption of the post or till the Authority exists or until further orders,
whichever is earlier.
vii. Due to the prevalent pandemic of COVID-19 in the country, the orders in cases wherein
the limitation period was expiring between 20.03.2020 and 29.11.2020 might not be
passed within a period of 6 months as per the provisions of Rule 133(1) of the CGST
Rules, 2017 from the date of receipt of the Report from the DGAP under Rule 129(6)
of the above Rules due to force majeure.
viii. In the wake of corona pandemic outbreak, for the period from 01.10.2020 to
31.12.2020, the personal hearings have been accorded only on the specific request by
the interested parties preferably through video conferencing.
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ix. Due to the prevalent pandemic of Covid-19, the orders in cases where the limitation
period was expiring between 20.03.2020 and 31.03.2021 might not be passed within a
period of 6 months as per the provisions of Rule 133(1) of the CGST Rules, 2017 from
the date of receipt of Report from the DGAP. Therefore, only 03 Orders were passed
by the Authority unanimously during this quarter. Details of which are as under: -
a. 01 final order involving profiteering of Rs. 78 lakhs were passed.
b. 01 order was passed to refer the matter back to the DGAP for re-
investigation under Rule 133(4)
c. 01 Penalty order was passed.
x. Vide D.O. letter dated 04.01.2021, the Revenue Secretary was requested to take up the
matter of expeditious constitution of the Consumer welfare fund for four States i.e.
Uttar Pradesh, NCT of Delhi, Chhattisgarh and Arunachal Pradesh.
xi. Vide D.O. letter dated 04.01.2021, the Revenue Secretary was requested to take up the
matter of designation of the Commissioner of State Tax of Delhi or the Pr. Chief
Commissioner/Chief Commissioner of Central Tax Delhi zone as the Nodal Member
of the Standing committee on Anti-Profiteering at the level of GST Council.
xii. Sh. Navneet Goel, IRS (C&IT) has joined the NAA as Technical Member for a period
of two years in the F/N of 11.01.2021. Since the workload has now increased manifold
due to increase in cases and complaints, vide D.O. letter dated 15.01.2021, the Revenue
Secretary was requested to nominate two more Technical Members.
xiii. The Chairman, NAA along with Technical Members of NAA has held review meeting
in the months of January and February, 2021 with Members of Screening Committees
of the States/UTs regarding various pending issues like complaints, compliance of
orders, constitution of the Screening Committees and appointments of Nodal Officers
etc.
xiv. In the wake of corona pandemic outbreak, for the period from 01.01.2021 to
31.03.2021, the personal hearings have been accorded only on the specific request by
the interested parties preferably through video conference.

5. Accordingly, the quarterly performance report of the National Anti-Profiteering Authority for
the period from July, 2020 to March, 2021 is placed before the GST Council.







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Annexure-A
Performance Report of the State Level Screening Committee for Quarter (January - March 2021)
S.No. States
Received/Not
Received
Opening
Balance
Receipt Disposal
Closing
Balance

Standing
Committee
Rejected
1 Andhra Pradesh ✓ 0 0 0 0 0
2 Arunachal Pradesh ✓ 0 0 0 0 0
3 Assam ✓ 0 0 0 0 0
4 Bihar ✓ 1 10 2 5 4
5 Chhattisgarh X
6 Goa X
7 Gujarat ✓ 4 0 1 3 0
8 Haryana ✓ 0 19 19 0 0
9 Himachal Pradesh ✓ 0 0 0 0 0
10 Jammu and Kashmir ✓ 0 0 0 0 0
11 Jharkhand ✓ 2 0 2 0 0
12 Karnataka ✓ 1 2 2 0 1
13 Kerala ✓ 0 0 0 0 0
14 Madhya Pradesh ✓ 2 1 0 1 2
15 Maharashtra ✓ 0 5 5 0 0
16 Manipur ✓ 0 0 0 0 0
17 Meghalaya ✓ 0 0 0 0 0
18 Mizoram ✓ 0 0 0 0 0
19 Nagaland ✓ 0 0 0 0 0
20 NCT of Delhi ✓ 7 26 0 15 18
21 Odisha X
22 Puducherry ✓ 0 0 0 0 0
23 Punjab X
24 Rajasthan ✓ 0 0 0 0 0
25 Sikkim ✓ 0 0 0 0 0
26 Tamil Nadu ✓ 0 2 0 0 2
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Performance Report of the State Level Screening Committee for Quarter (January - March 2021)
S.No. States
Received/Not
Received
Opening
Balance
Receipt Disposal
Closing
Balance

Standing
Committee
Rejected
27 Telangana ✓ 0 0 0 0 0
28 Tripura ✓ 0 0 0 0 0
29 Uttar Pradesh ✓ 0 4 1 0 3
30 Uttarakhand ✓ 0 0 0 0 0
31 West Bengal ✓ 1 1 2 0 0
27 18 70 34 24 30





















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Annexure-B
Performance Report of the State Level Screening Committee for Quarter (January - March 2021)
S.No. States
Received/Not
Received
Opening
Balance
Receipt Disposal
Closing
Balance

Standing
Committee
Rejected
1 Andhra Pradesh ✓ 0 0 0 0 0
2 Arunachal Pradesh ✓ 0 0 0 0 0
3 Assam ✓ 0 0 0 0 0
4 Bihar ✓ 4 0 1 3 0
5 Chhattisgarh X
6 Goa ✓ 0 0 0 0 0
7 Gujarat ✓ 0 0 0 0 0
8 Haryana ✓ 0 30 30 0 0
9 Himachal Pradesh ✓ 0 0 0 0 0
10 Jammu and Kashmir X
11 Jharkhand ✓ 0 1 0 0 1
12 Karnataka ✓ 1 2 1 1 1
13 Kerala X
14 Madhya Pradesh ✓ 2 1 1 1 1
15 Maharashtra ✓ 0 5 4 0 1
16 Manipur ✓ 0 0 0 0 0
17 Meghalaya ✓ 0 0 0 0 0
18 Mizoram ✓ 0 0 0 0 0
19 Nagaland ✓ 0 0 0 0 0
20 NCT of Delhi ✓ 18 33 0 0 51
21 Odisha X
22 Puducherry ✓ 0 0 0 0 0
23 Punjab X
24 Rajasthan ✓ 0 0 0 0 0
25 Sikkim ✓ 0 0 0 0 0
26 Tamil Nadu ✓ 2 0 2 0 0
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Performance Report of the State Level Screening Committee for Quarter (January - March 2021)
S.No. States
Received/Not
Received
Opening
Balance
Receipt Disposal
Closing
Balance

Standing
Committee
Rejected
27 Telangana ✓ 0 7 3 2 2
28 Tripura ✓ 0 0 0 0 0
29 Uttar Pradesh ✓ 3 4 4 0 3
30 Uttarakhand ✓ 0 0 0 0 0
31 West Bengal ✓ 0 0 0 0 0
26 30 83 46 7 60





















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Annexure-C
Performance Report of the State Level Screening Committee for Quarter (January - March 2021)
S.No. States
Received/Not
Received
Opening
Balance
Receipt Disposal
Closing
Balance

Standing
Committee
Rejected
1 Andhra Pradesh X
2 Arunachal Pradesh ✓ 0 0 0 0 0
3 Assam ✓ 0 0 0 0 0
4 Bihar X
5 Chhattisgarh X
6 Goa X
7 Gujarat ✓ 0 2 2 0 0
8 Haryana X
9 Himachal Pradesh ✓ 0 0 0 0 0
10 Jammu and Kashmir X
11 Jharkhand ✓ 1 0 1 0 0
12 Karnataka ✓ 1 2 3 0 0
13 Kerala X
14 Madhya Pradesh ✓ 1 2 0 1 2
15 Maharashtra ✓ 1 19 19 0 1
16 Manipur ✓ 0 0 0 0 0
17 Meghalaya ✓ 0 0 0 0 0
18 Mizoram ✓ 0 0 0 0 0
19 Nagaland ✓ 0 0 0 0 0
20 NCT of Delhi ✓ 51 51 1 76 25
21 Odisha* ✓ 2 0 0 2 0
22 Puducherry X
23 Punjab X
24 Rajasthan ✓ 0 0 0 0 0
25 Sikkim ✓ 0 0 0 0 0
26 Tamil Nadu ✓ 0 1 0 0 1
27 Telangana ✓ 2 37 8 31 0
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Performance Report of the State Level Screening Committee for Quarter (January - March 2021)
S.No. States
Received/Not
Received
Opening
Balance
Receipt Disposal
Closing
Balance

Standing
Committee
Rejected
28 Tripura ✓ 0 0 0 0 0
29 Uttar Pradesh ✓ 3 10 12 0 1
30 Uttarakhand ✓ 0 0 0 0 0
31 West Bengal ✓ 0 5 0 0 5
22 62 129 46 110 35

* In earlier report (Qtr. Ending December 2020) Odisha was not included since Report was not received
from Odisha. Now Odisha is included in this report so the total Closing Balance of Quarter ending
December 2020 and Opening Balance of Quarter ending March 2021 differ by 2.
Agenda for 43rd GSTCM Volume 1



Confidential





Agenda for 43
rd
Meeting
of
the GST Council

28
th
May 2021


Volume – 2

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GST Council Secretariat
New Delhi


Dated: 16th May 2021
Notice for the 43rd Meeting of the GST Council Scheduled on 28th May 2021
The undersigned is directed to refer to the subject cited above and convey that the 43rd
Meeting of the GST Council would convene on 28
th
May 2021 (Friday) through Video Conference.
The schedule of the meeting is as follows:
28
th
May 2021(Monday) : 1100 Hours onwards

2. Please convey the invitation to the Hon’ble Members of the GST Council to attend the
Meeting.

(-Sd-)
(Tarun Bajaj)
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 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 (with legislature) 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/UT 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. Chairman, GST Network

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TABLE OF CONTENTS
Agenda
No.
Agenda Item Page No.
6 Ad-hoc Exemptions Orders issued under Section 25(2) of Customs Act, 1962 to be
placed before the GST Council for information
7-21
7
Status of the Group of Ministers (GoM) on IGST Settlement
22-22

8 GSTN related issues for the consideration of the GST Council
i. Sanction for extension of Project REAP, LEAP and BIFA till 31st March,
2022 on T&M basis with delegation to the Chairman to reduce the
Manpower, if required.
ii. In principle approval to expand the scope of IRP project for e-invoice
registration and IRN issuance on expanding the scope with reduction of the
threshold of turnover and providing for multiple IRPs, if needed,
iii. Proposal for approval of deputation guidelines and to request the States to
provide manpower to GSTN with SGST experience
iv. Intimation – the Status update on transfer of share-holding with the States
and conversion of Goods and Services Tax Network (GSTN) into 100%
Government owned Company.
v. Status of Payment by the States and Waiver of Interest on delayed receipt
of Advance User Charges (AUC) from a few states and CBIC.
23-167

23-24

25-28

29-30

31-32

33-34
9A Issues recommended by the Law Committee for the consideration of the GST
Council
i. Rationalization of late fee imposed under section 47 of the CGST Act
ii. Annual Return for Financial Year 2020-21
iii. Proposal of amendments in the return related provisions of the CGST Act,
2017
168-210

168-170
171-190
191-210

9B Other issues pertaining to GST laws and procedures for consideration of the GST
Council
i. Reduction in late fee for FORM GSTR-3B for months from July, 2017 to
April, 2021- Amnesty to clean up pendency in return filing in GST regime
ii. Notifying section 112 of the Finance Act, 2021 relating to amendment in
section 50 of the CGST Act
iii. Proposal for converting quarterly return and monthly payment (QRMP)
Scheme to quarterly return and quarterly payment (QRQP) scheme
211-216

211-213
213-213
214-216
10 Seeking concurrence for levy of COVID Cess on power and pharmaceutical sector
in Sikkim
217-225

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Discussion on Agenda Items
Agenda Item 6 – Ad-hoc Exemptions Orders 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 are as follows:
Order
No.
Date Remarks ISSUING
AUTHORITY
AEO No.
01-A of
2020
10th
September
2020
Request from the Ministry of External Affairs for
exemption from payment of Customs Duties for
procurement of 04 Special Armoured vehicles.
(Annexure-I).
Commissioner
Customs & EP
CBIC
AEO No.
02 of
2020
05th
October
2020
Request from Shri Gajendra Haldea for exemption from
import duties on import of life saving drug Romidepsin
for personal use. (Annexure-II).
AEO No.
01 of
2021
09th
February
2021
Request from Shri Mihir Kamat for seeking exemption
from payment of import duty for import of lifesaving
drug Zolgensma, for gene replacement therapy, for
personal use. (Annexure-III).
AEO No.
02 of
2021
11th March
2021
Request from the Ministry of Home Affairs,
Government of India for the equipment received on
gratis basis for setting up a Cyber Lab at CAPT Bhopal
from the United States of America (Annexure-IV).
AEO No.
03 of
2021
15th April
2021
Request from Shri Rajdipsinh Rathod for seeking
exemption from payment of import duty for import of
lifesaving drug Zolgensma, for gene replacement
therapy, for personal use. (Annexure-V).
AEO No.
04 of
2021
3rd May
2021
Seeks to exempt IGST on imports of specified COVID-
19 relief material donated from abroad, up to 30th June,
2021.(Annexure-VI)
JS ,TRU CBIC

3. All these Notifications are issued under sub-section (2) of section 25 of the Customs Act,
1962 (52 of 1962) but the whole of the Integrated Tax leviable thereon under sub-section (7) of
section 3 of the said Customs Tariff Act, read with section 5 of the Integrated Goods and Services Tax
Act, 2017 (13 of 2017) is getting exempted . Hence these Notifications issued by CBIC are placed for
the information of GST Council.

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Annexure-I





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Annexure-II





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Annexure-III





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Annexure-IV





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Annexure-V




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Annexure-VI




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Agenda Item 7 – Status of the GoM on IGST Settlement
The GoM on IGST Settlement was formed vide O.M. of even no. dated 07-12-2019. The
GoM after its meeting held on 01-10-2020, has recommended that
(a) Centre should disburse net amount of Rs. 24,400 crore due to States / UTs on account of
apportionment of the entire year-end IGST balance available as on 31st March, 2018;
(b) Before initiating recovery of the excess Compensation amount, Centre should consult the
States from which recovery is to be made;
(c) IGST settlement data arising on account of annual returns filed by the taxpayers for FY
2017-18, may be referred to the Law Committee for examination and recommendation;
and
(d) The matter would be placed before the 42nd meeting of the GST Council to be held on 5th
October 2020.
2. These recommendations were placed before the GST council in its 42nd Meeting on
05.10.2020 and were discussed in detail.
3. In view of the above, since the Terms of Reference of the GoM have been fulfilled, it is
proposed to formally close the GoM on IGST settlement. Thus, a formal announcement is being made
in this regard.

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Agenda Item 8 – GSTN related issues
Agenda Item 8(i)– Sanction for extension of Project REAP, LEAP and BIFA till 31st March,
2022 on T&M basis with delegation to the Chairman to reduce the Manpower, if required.
Background
The proposal for Software development under actual identified manpower utilization,
commonly known as Time and Material (T&M) basis, to implement the changes identified under the
Roadmap for Incremental Improvements to the existing Returns was also placed before the GST
Council in its 39th meeting held on 14th March 2020. Subsequently, Council approved the proposal of
incremental enhancement of existing Returns on a T&M basis starting to carry out development.

2. To expedite the delivery of Change Requests, as per decision taken in 39th GST Council
dated 14-Mar-20 were taken up Returns related Changes on T&M basis under the name REAP. After
commencement of REAP, it has been observed that during the development the lead time to start
development has significantly decreased and the preparation, review and approval of prerequisite
Techno-Functional Document (TFD) etc. have been significantly improved contributing to faster
deployment of CRs. To leverage benefit of the faster execution the T&M model for other sets of
critical CRs for Registration, Back office and Front office modules, GSTN got deployed another team
in T&M model under LEAP Project.

3. The main difference in T&M model and normal CR model is that in T&M model payment is
calculated in terms of man-days of resources identified which are deployed exclusively for the project.
It is for GSTN to closely monitor the running of the project and ensure that the manpower is fully
utilised. At present GST, which is fast evolving law, needs this agile mode of IT development under
T&M model. GSTN is now experienced enough to use T&M model of development and deliver
projects faster. In CR model payment is made for individual CR and effort is estimated for each step
in the development and payment is made for effort in the development. Huge time gets spent on
estimation of efforts and then designing with to and fro movement between GSTN and Infosys till
agreement is arrived at the effort estimation. This has been shown in the schematic diagram below –
Current Process as per Change Management involves six stages and intermediate negotiations.

Change Management which includes TFD under T&M involves 4 stages and needs close monitoring
of project implementation.


4. Approval obtained in the 42
nd
meeting of GST Council : Subsequently in the 42nd GST
Council meeting and based on the experience of successfully implementing some of the elements of
BRD
• Finalize Business
requirement
SRS
• Detailed business
requirement
along with
Prototype( if req)
IA Approval
• Impact Analysis
document along
with effort
estimation
Design
• Detailed design
Approval ( TDD)
Development and
RT
• Development
/RT/UAT Sanity
Deploy to UAT
• UAT Testing
BRD
•Finalize Business
requirement
TFD
•Techno Functional
DOcument
submitted By
Infosys)
Development and
RT
•Development
/RT/UAT Sanity
Deploy to UAT
•UAT Testing
Agenda for 43rd GSTCM Volume 2
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REAP project, proposal was brought before the GST Council. After taking note of improved
efficiency of service delivery under T&M project, GST Council approved the following. Critical IT
developments as per the approved manpower (resource count approved was 136.5) shall be carried out
using T&M model and such sanction shall be valid till 30th of June, 2021.
5. There is still a significant inflow of change requirements with the expectation of quick
turnaround time accordingly it is proposed to extend the above sanction as per the following proposal.
Further requirement for development under BIFA is also being received on regular basis for the States
and Centre. Therefore, the development under BIFA is also proposed to be carried out under T&M. It
may be noted that T&M method of execution of project does not mean additional manpower to be
deployed; rather it is an alternative method of executing change which does not entail higher
expenditure but provides better turnaround time for critical changes. This aspect has been explained
with example in the 42nd GST Council. Thus it is proposed to take approval of an upper ceiling of
manpower of 200 under T&M project and then delegate the details to be worked out to GSTN,
including the reduction as and when the projects start getting completed with the approval of
Chairman, GSTN.

6. Proposal: Accordingly, the matter is placed before the GST Council for:
i. Approval of resource deployment as sanctioned in 42nd GST Council meeting for
development and implementation of New Requirements/Change Request in GST
System to continue till 31st of March, 2022. This would mean an extension of 9
months.
ii. BIFA project would also be covered under the above model of project execution.
Also any other critical requirement directed by the Govt or Law Committee would be
taken up under T&M model with their approval. The deployment of resources, will be
based on the actual requirement of work at a given point of time and shall be kept at a
minimum.
iii. Maximum number of resources to be deployed at any given point of time shall not
exceed 200 and all payments would be made based on actual deployment of
manpower.
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Agenda Item 8(ii)– In principle approval to expand the scope of IRP project for e-invoice
registration and IRN issuance on expanding the scope with reduction of the threshold of
turnover and providing for multiple IRPs, if needed
The GST Council in its 35th meeting of June 2019 had decided to put in place an e-invoice
registration mechanism on real time basis, (initially on trial for small tax payer base), and
subsequently to be made mandatory for all tax payers. Considering the huge number of invoices that
would need to be registered once all businesses became part of the mandate, the Govt. of India had
visualized that more than one IRPs would be required and hence notified a total of 10 IRPs that
would provide e-invoice registration services to tax payers. The Govt. of India decision on
establishing 10 IRPs (along with their domain URLs) was published vide notification (no. 69/2019
dated 13th December 2019). Thus, in addition to NIC, who would begin the e-invoice registration
system, other IRPs were also visualized to be providing e-invoice registration for the businesses in the
GST regime.
2. The e-invoice system was expected to provide the following multiple benefits for the GST
eco system, which are listed as follows:
a. It was planned that a mature e-invoice system would result in the GSTR1 of the seller getting
populated directly on its generation, and it would correspondingly be visible in the GSTR2A
of the buyer, thus facilitating the GST return generation process for tax payers.
b. The e-invoice system would gradually eliminate paper / physical invoices, bringing electronic
efficiency.
c. The uniqueness of the invoices being validated through the e-invoice system could later result
in sunset of the E-Way Bill system.
d. The combination of the above would enable larger degree of control on evasion of taxes and
may also lead to auto preparation of the return of the seller and buyer.
e. In the subsequent phases, the direct communication and exchange of e-invoices amongst the
sellers and buyers would lead to larger efficiency in financial system and thus facilitate trade.
f. The e-invoice could also result in a single instrument of trade amongst more environments to
be used to digitize the financial eco-system and reduce turn-around times for transactions.
Thus e-invoice as an digital instrument would become the central pillar for the financial trade
systems across the country.
3. The Govt. of India, vide its notification no. 61/2020 dated 30th July 2020 mandated the rollout
of registration of all invoices of tax payers above a turnover of INR 500 crore per annum from 01st
October 2020. The e-invoice system began functioning from the defined date and from 01st January
2021, the threshold was brought down to AATO of INR 100. crores (GoI notification no. 88/2020
dated 10th November 2020) and to AATO of 50 crores from 01st April 2021. Following table gives the
gist of data related to the numbers involved in this regard -





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4. Therefore, while the IRP has been functional since 1st October 2020 and businesses upto
AATO of 50 crores have been using it, there are challenges that have been observed in the working of
the IRP as on date. Some of these challenges are mentioned below:-
a. Having just one IRP is a single point of failure for business continuity in the country
since invoices are declared invalid till IRN is provided (i.e., the business transaction
can be performed only once the e-invoice has been registered at the IRP). The seller
cannot issue the invoice to the buyer if it has not been registered at the IRP.
b. The handling of higher e-invoice volumes, as the threshold is reduced further, will
need more IRPs, once the mandate for all taxpayers in GST is made compulsory.
Turnover
PAN wise
(For TO 19-
20 data
used)
Number of
PANs
eligible to
generate
e-invoice
No. of
GSTINs
eligible to
generate
e-Invoice
% age of
number of
Total B2B
Invoices
Reported in
GST-R1
% of value
(ITC would
be similar)
of B2B
supplies of
these
GSTINs
e- invoice
launched
from
No of
GSTINs
generated
e-invoice in
Mar-
21*/Apr-
21**
Number of
invoices
generated in
Mar-21*/
Apr-21**
500 Cr. plus
6,938 53,523 22.26%

41.24%

1
st
Oct,
2020
33,573* 6,24,11,777*
100-500 Cr.
33,359 91,583 8.80%
15.32%
1
st
Jan,
2021
46,508* 2,06,25,294*
50-100 Cr.
51,200 95,461 6.86%
9.98%
1
st
April,
2021
38,186** 85,03,764**
25-50 Cr.
68,703 96,455 5.56%
5.55%
To be
decided
Not implemented
10-25 Cr.
2,10,034 2,53,348 10.14%
7.12%
5-10 Cr.
3,02,470 3,38,356 9.02%
4.90%
1.5-5 Cr.
9,98,801 10,65,521 17.36%
7.69%
Below 1.5
Cr. 68,76,061 70,52,503 20.01%
8.20%
TOTAL
85,47,566 90,46,750 100.00% 100.00%

118,267 9,15,40,835
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c. It is evident that with decrease in the threshold and increase of count of tax payers
who will be mandated to prepare e-invoices, more IRPs (as per Govt. of India vision)
will need to be in place to be able to meet the Govt. of India mandate of e-invoicing.
5. In view of the above, it is now proposed to seek the approval of the GST Council to establish
upto 4 more IRPs in addition to the current IRP being operated by NIC. The proposal is to allow
select, credible, capable and established companies from the financial technology domain who have
been part of the GST journey to be given the opportunity to establish the Invoice registration portals
(IRP) for e-invoice registration. The proposal can be schematically be shown as follows -



6. GSTN would govern these private IRPs while they provide the e-invoice registration services
to businesses to register e-invoices efficiently and promptly free of cost. The placement and
deployment of additional IRPs is also expected to pave the way for subsequently registering B2C
invoices, as the additional capacity would be provided by these additional IRPs. These additional
IRPs would be mandated to provide the IRN (e-invoice registration) as a basic service, without cost.
However, the IRPs may offer additional over the top (OTT) services, on a chargeable basis, to their
business clients. The advantages visualized with the addition of more IRPs are as follows:
a. The risk of a single point of failure will be mitigated and business continuity will not
suffer (as was seen when the NIC system went down in the past months) and
alternative IRPs would be available to the taxpayer to issue invoices.
b. The threshold mandate for e-invoicing can be brought down to include all businesses
in a shorter time frame. Getting invoices digitized would lead to better compliance.
c. It would be feasible to expand to B2C invoices also at a later date as this is a scalable
model and at a later date even more IRPs can be added. This would provide impetus
to the digitization of the complete trade between sellers and buyers even at retail
level.
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d. Multiple IRPs will be able to provide competition in the eco system of e-invoicing
and help it evolve and thus for the tax payers more services will be on offer by the
IRPs to the taxpayers, which currently are not available with NIC running the single
IRP.
e. The tax payers are expected to have choice between various IRP services with the
availability of more than one IRP, thus opening up the sector and adding efficiency
by competition.
7. Therefore, the following proposal is placed before the Council for approval:
a. The Council may like to approve selection and establishment of new IRPs
(preferably 3 to 5) to provide e-invoice registration services.
b. The existing IRP-1 of NIC shall be strengthened to have a full-fledged DR center also
as at present GST system is working with only one IRP on e-way bill system.
c. The financial model for the same shall be worked out by GSTN based on industry
practice and need for adequate IRPs to achieve scalability in a short period of time
d. These IRPs will be selected by GSTN and will be required to mandatorily provide
free e-invoice registration services to the businesses.
e. The IRPs may provide over the top (OTT) services to their clients on a chargeable
basis, to be determined by the market forces. This model was adopted for GSPs also.
f. GSTN would provide a de-duplication check amongst the multiple IRPs (e.g. through
SIMPoL designed by GSTN) to ensure that there is no registration of duplicate
invoices across all businesses in any one financial year.
g. GSTN would also provide the e-invoice download facility for the sellers’
counterparties (buyers) centrally through the GST System for seamless availability of
invoices and GSTN acting as a single source of truth.

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Agendsa Item 8(iii)– Proposal for approval of deputation guidelines and to request the States to
provide manpower to GSTN with SGST experience.
Background
Goods and Services Tax Network (GSTN) is undergoing transition to a 100% Government
Owned Company. Under this process it is required to maintain the existing framework of technical
expertise and law implementation efficiency under GSTN to spearhead the entire exercise for smooth
and effective implementation and governance of GST System.
2. In the past, GSTN followed the practice of onboarding officers from the Government
departments on deputation basis with due approval of the Board/Chairman, GSTN depending on the
grades. The CEO and other senior officers on deputation were hired after due approval of DoPT and
the ACC. The senior level officers recruited from the market were hired directly with the approval of
the Board.
3. However, in view of the changes, when 100% ownership is being transferred to the
Government, it was required to have appropriate Recruitment guidelines, replacing corresponding
sections in the HR Manual of GSTN, for each post in order to onboard the officers and hire the
technical resources as per the manpower requirements of GSTN.
4. Owing to the unique status of GSTN and its manpower requirements, rank and work
experience were required to be aligned in such a way that the officers with adequate experience and
seniority become available for deputation on those posts in GSTN. These changes have been carried
out suitably in consultation with the Department of Revenue and new deputation guidelines prepared.
5. It may be mentioned that a total of 147 positions (excluding 45 positions proposed to be
retained at the levels of Secretarial Support, Technical Support and MTS which are purely outsourced
to agencies) approved for GSTN have been retained in the present Recruitment Guidelines and no
change/increase in manpower has been incorporated.
6. The Recruitment Guidelines was approved by the Board of GSTN in its 44th Board meeting
held on 11th January 2021. The minutes of the 44th GSTN Board meeting is attached as Annexure-I
for reference.
7. The Recruitment Guidelines, duly approved by the Board of GSTN, was approved by the
Hon’ble Finance Minister. The approved Recruitment Guidelines is enclosed as Annexure-II.
Hereafter, except for Board level of GSTN which includes CEO, approval of ACC would be needed;
all deputation approval would be granted by the Ministry of Finance, Govt of India or State Govt. and
GSTN as applicable for the rank under consideration.
8. Under the new Recruitment Guidelines, the officers shall be placed at the disposal of GSTN
on deputation basis by the appointing authorities in the parent cadre of the officers, once selection has
been made by the GSTN. The process of screening, selection and approval has been clearly provided
in the deputation guidelines removing any ambiguity. This will fast track the deputation process of
officers.
9. The terms of deputation (except the rank at which pay will be fixed as per the proposed
Recruitment Rules in line with Central Government Rules) including allowances such as HRA, PLI,
health cover etc. shall continue as they presently are in view of the decision of the GST Council dated
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4th May 2018 and Union Cabinet dated 26th September 2018, which allows GSTN to continue with
the existing terms of deputation for 5 years to complete transition to a Government Company.
10. The GST Council may also request the states in India to provide manpower with SGST
experience to the Goods and Services Tax Network (GSTN) as and when deputation demands are sent
by GSTN to the States through the GST Council.
11. The following is placed before the GST Council for perusal and kind approval:
i. The Recruitment Guidelines along with its Annexures, are placed before the GST Council
for kind perusal and approval.
ii. The GST Council may also request the States to provide manpower with SGST
experience to the Goods and Services Tax Network (GSTN) as and when deputation
demands are sent by GSTN to the States through the GST Council.
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Agenda Item 8(iv)– Intimation – the Status update on transfer of share-holding with the States
and conversion of Goods And Services Tax Network (GSTN) into 100% Government owned
Company
The GST Council in its 27th Meeting held on 4th May, 2018 decided that GSTN will be
converted into a 100% Government-owned entity by transferring 51% equity shares held by the Non-
Government institutions to the Centre and states equally. The Union Cabinet in its Meeting held on
26th September, 2018 approved the proposal to convert GSTN into a fully-owned Government
Company with 50% equity of the Company to be held by the Central Government and the balance
50% to be held by States and Union Territories.
2. Further, the GST Council in its 31st Meeting held on 22nd December, 2018 and the
Department of Revenue (DOR), Government of India vide its Letter No. S-31011/5/2018-ST-1-DoR
dated 17th January, 2019 both have approved the revised shareholding pattern of GSTN as per
(Annexure-III).
3. For conversion of GSTN into 100% Government owned company, there are many steps and
procedure involved and same have been mentioned with their present status as per attached
ROC/MCA Compliance Check List/Action Plan as (Annexure-IV).
4. In order to facilitate the above decision and consequent to the approval as accorded by the
shareholders of GSTN in their Extra-Ordinary General Meeting (EGM) held on 21st June, 2019, the
Empowered Committee of State Finance Ministers (EC) & all Non- Government Institutions have
already offered their entire existing shareholding in GSTN through Share Transfer Notice for
Sale/Transfer to Centre, State Governments & Union Territories accordingly in order to convert
GSTN into a 100% Government-owned entity and hence this will result into change of share
capital/ownership structure of GSTN.
5. Pursuant to Share Transfer Notices issued by the EC & Non- Government Institutions, the
respective Transferees (Centre and States) have acknowledged the receipt of the above Share Transfer
Notices and communicated their acceptance through Purchase Notices to the respective Transferor(s)
as per the requirement.
6. Post acceptance of the offer to purchase the share, Centre, State Governments & Union
Territories have also paid share purchase consideration to the respective Transferor(s) accordingly as
per (Annexure-V).
7. The following States/UTs are yet to execute Securities Transfer Form in the prescribed from
i.e. (Form SH-4) along with necessary documents as per the requirement of the Companies Act, 2013:

S No. Government S No. Government
1 Rajasthan 10 Goa
2 Sikkim 11 Kerala
3 Andhra Pradesh 12 Manipur
4 Bihar 13 Delhi
5 Himachal Pradesh 14 Jharkhand
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Proposal:
8. Accordingly, States/UTs as listed above are requested to execute Securities Transfer Form in
the prescribed from i.e. (Form SH-4) along with necessary documents as per the requirement of the
Companies Act, 2013 and submit the same to GSTN in order to expedite the matter of conversion of
GSTN.
6 Mizoram 15 Uttar Pradesh
7 Arunachal Pradesh 16 Chhattisgarh
8 Haryana 17 Madhya Pradesh
9 Assam 18. ---
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Agenda Item 8(v)– Status of Payment by the States and Waiver of Interest on delayed receipt of
Advance User Charges (AUC) from a few states and CBIC.
Background
As per the Revenue Model of GSTN approved by the Empowered Committee of State
Finance Ministers (EC) in its meeting held on 30th August 2016 (Annexure-VI), the GST System
Project is being implemented by GSTN as per approval of the Cabinet and the cost incurred on the
project (Capex and Opex) along with GSTN’s own expenses is to be shared equally by the Centre and
States in the form of User Charges to be remitted by them in two (2) instalments on a half-yearly basis
by 1st March and 1st September of the year.
2. Further, as per Para iii (b) of the Revenue Model ―Any Government that fails to pay the
Advance User Charges (AUC) before the due date will pay the defaulted amount together with
interest at the rate at which GSTN borrows money from the banks for this purpose‖.
Status of Payment of AUC as on 10
th
May 2021
3. As per the approved Revenue Model, GSTN had raised demand for the payment of AUC to
the Central and State Governments for the FY 2017-18, 2018-19, 2019-20 and 2020-21. The status of
AUC demanded and received (as on date) is given below:
(Rs. in Crores)
Financial Year
Amount
demanded
Amount
received
Amount
Pending
Pending States
2017-18 572.09 572.09 0 NA
2018-19 520.61 520.61 0 NA
2019-20 185.10 184.37 0.72 Andhra Pradesh - 0.34
Arunachal Pradesh - 0.26
Sikkim - 0.07
Others - 0.05
2020-21 540.53 527.73 12.80 As per Annexure –VII
Waiver of Interest on late payment of AUC for FY 2017-18, 2018-19 and 2019-20
4. The GST Council in its 35th meeting of 21st June 2019 had approved the waiver of interest on
delayed payment of AUC only till 31st July 2019 and any delayed payment received on or after 1st
August 2019 will attract Interest as per the approved Revenue Model of GSTN. The interest on
delayed payment for FY 2019-20 will be levied on or after 1st September 2019.
5. However, some of the States and CBIC remit the amount of AUC for FY 2017-18, 2018-19
and 2019-20 after expiry of waiver period i.e. 31st July 2019 for FY 2018-19 and 31st August 2019 for
FY 2019-20. The details of Interest payable of Rs.11.50 Crores by the Central and some State
Governments for delay in remitting the AUC are placed at Annexure-VII.

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Extension of Payment of Advance User Charges for FY 2020-21:
6. The GST Council in its 42nd meeting held on 5th and 12th Oct. 2020 had approved the
extension of payment of AUC of FY 2020-21 till 31st March 2021 on the basis of request made by few
States as there was delay in taking the approval of release in fund due to COVID Pandemic and thus
any payment received till 31st March 2021 will not attract Interest as per the approved Revenue Model
of GSTN.
7. However, some of the States and CBIC would remit the amount of AUC for FY 2020-21 after
expiry of extension period i.e. 31st March 2021. The details of Interest payable of Rs.0.13 Crores by
the State Governments for delay in remitting the amount of AUC or for amount yet to be paid by State
Governments are placed at Annexure-VII.
Proposal
8. Keeping into consideration the above for waiver off the interest amount and extension of time
limit for payment of AUC, the following is proposed for the kind consideration and approval of the
Council:
i. The interest payable for default in payment amounting to Rs.11.63 Crores due to delayed
payment of AUC till 10th May 2021 may be waived off.

ii. The time limit of payment of full or partial outstanding amount of AUC for FY 2020-21
and earlier years may be extended till 31st December, 2021 without levy of interest on
delayed payment.
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Annexure-IIA
Sl.
N
o.
Name of
post.
Numb
er of
post
Classification.
Deputation/Ma
rket.
(Level,Grade)
Level in
the pay
matrix.
Deputati
on
Whether
selection
post or non-
selection
post and
procedure
thereof.
Age-
limit
for
direct
recruits
from
market.
Education
al and
other
qualificati
ons
required
for direct
recruits.
Whether
age and
education
al
qualificati
ons
prescribe
d for
direct
recruits
will apply
in the case
of
promotees
.
Period
of
probati
on, if
any.
Method
of
recruitm
ent
whether
by direct
recruitm
ent or by
promotio
n or by
deputati
on or
absorpti
on and
percenta
ge of the
vacancie
s to be
filled by
various
methods.
In case of recruitment by
promotion or deputation
or absorption, grade
from which promotion
or deputation or
absorption is to be made.
(Deputation)
Officers of the Central
or State Govt. or UT or
Autonomous bodies shall
be selected based on the
following criteria:
If a
Departme
ntal
Promotion
Committe
e exists
what is its
compositio
n.
Circumsta
nces in
which
Union
Public
Service
Commissio
n is to be
consulted
in making
recruitmen
t.
1 2 3 4 5 6 7 8 9 10 11 12 13
1 Executive
Vice
President
(EVP),
Services
1 L2, G2 Level 14
&
allowanc
es as
decided
by Board
As per
Screening &
Selection
Committee
recommendat
ions and with
due approval
of Board of
GSTN
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria

(i) (a) holding analogous
posts at level 14 on
regular basis in the parent
cadre or department; or
(b) having five years
experience in Level-13 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 18 years of
service at Group 'A' level
in Government.
Not
Applicable
Not
Applicable
Agenda for 43rd GSTCM Volume 2
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Desirable:-
Possessing 8 years or
more of experience in
taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.

Note .- The Maximum
age-limit for appointment
by deputation shall be not
exceeding fifty-six as on
the closing date of receipt
of applications.
2 Senior Vice
President
(SVP),
Common
Portal
1 L3,G3 Level 13
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Board of
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-(i) (a)
holding analogous posts
at level 13 on regular
basis in the parent cadre or
department; or (b) having
four years experience in
Level-12 on regular basis
in the parent cadre or
department;
AND(ii) Overall 13 years
of service at Group 'A'
level in
Government.Desirable:-
Possessing 5 years or
more of experience in
taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.Note .- The
Maximum age-limit for
appointment by deputation
shall be not exceeding
fifty-six years as on the
closing date of receipt of
applications.
Not
Applicable
Not
Applicable
Agenda for 43rd GSTCM Volume 2
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3 Senior Vice
President
(SVP),
Value
Added
Services
1 L3,G3 Level 13
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Board of
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-

(i) (a) holding analogous
posts at level 13 on
regular basis in the parent
cadre or department; or
(b) having four years
experience in Level-12 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 13 years of
service at Group 'A' level
in Government.

Desirable:-
Possessing 5 years or
more of experience in
taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.

Note .- The Maximum
age-limit for appointment
by deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
Not
Applicable
Not
Applicable
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4 Senior Vice
President
(SVP),
(Services)
1 L3,G3 Level 13
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Board of
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-(i) (a)
holding analogous posts
at level 13 on regular
basis in the parent cadre or
department; or (b) having
four years experience in
Level-12 on regular basis
in the parent cadre or
department;
AND(ii) Overall 13 years
of service at Group 'A'
level in
Government.Desirable:-
Possessing 5 years or
more of experience in
taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.Note .- The
Maximum age-limit for
appointment by deputation
shall be not exceeding
fifty-six years as on the
closing date of receipt of
applications.
Not
Applicable
Not
Applicable
5 Senior Vice
President
(SVP),
(BIFA)
1 L3,G3 Level 13
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Board of
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-

(i) (a) holding analogous
posts at level 13 on
regular basis in the parent
cadre or department; or
(b) having four years
experience in Level-12 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 13 years of
service at Group 'A' level
in Government.
Not
Applicable
Not
Applicable
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Desirable:-
(i) Post Graduate degree
in
Economics/Statistics/Math
ematics from a recognised
University or equivalent.
(ii) Possessing 5 years or
more of experience in
taxation/Finance /business
process automation or
IT/Business Intelligence.
Experience of working in
the domain of GST would
be desirable but not
necessary.
(iii) Experience in tax
analytics/tax enforcement
would be preferred.

Note.- The Maximum age-
limit for appointment by
deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
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6 Vice
President
(BIFA)
3 L3,G4 Level 12
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-(i)(a)
holding analogous posts
at level 12 on regular
basis in the parent cadre or
department; or (b) having
four years experience in
Level-11 on regular basis
in the parent cadre or
department;
AND(ii) Overall 9 years
of service at Group 'A'
level in
Government.Desirable:-(i)
Possessing 5 years or
more of experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.
(ii) Experience in tax
analytics/tax enforcement
would be preferred.Note .-
The Maximum age-limit
for appointment by
deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
Not
Applicable
Not
Applicable
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7 Vice
President
(VP),
Services
2 L3,G4 Level 12
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-

(i)(a) holding analogous
posts at level 12 on
regular basis in the parent
cadre or department; or
(b) having four years
experience in Level-11 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 9 years of
service at Group 'A' level
in Government.

Desirable:-
Possessing 5 years or
more of experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.

Note .- The Maximum
age-limit for appointment
by deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
Not
Applicable
Not
Applicable
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8 Assistant
Vice
President
(AVP),
(Services)
8 L4,G5 Level 11
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-(i) (a)
holding analogous posts
at level 11 on regular
basis in the parent cadre or
department; or(b) having 5
years experience in Level-
10 on regular basis in the
parent cadre or department
for directly recruited
Group 'A' Officers or(c)
having 20 years in
government service and
serving in Level-10 on
regular basis in the parent
cadre or department for
officers promoted from
Group 'B' to Group
'A'.Desirable:-Possessing
5 years or more of
experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.Note.- The
Maximum age-limit for
appointment by deputation
shall be not exceeding
fifty-six years as on the
closing date of receipt of
applications.
Not
Applicable
Not
Applicable
Note: The levels from
AVP and above shall be
sourced from Group'A'
Officers only.

9 Senior
Manager
(SM), BIFA
3 L4,G6 Level 10
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-

(i)(a) holding analogous
posts at level 10 on
regular basis in the parent
cadre or department; or
(b) having five years
Not
Applicable
Not
Applicable
Agenda for 43rd GSTCM Volume 2
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GSTN. experience in Level-9 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 15 years of
service at Group 'B' level
in Government. or

Desirable:-
(i) Graduate degree in
Mathematics/Statistics/Ec
onomics from a
recognised University or
equivalent.
(ii) Possessing 4 years or
more of experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.
(iii) Experience in tax
analytics/tax enforcement
would be preferred.

Note.- The Maximum age-
limit for appointment by
deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
Note: Group 'B' Officials
irrespective of their levels
will be onboarded only
upto the level of SM.

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10 Senior
Manager
(SM),
(Services)
5 L4,G6 Level 10
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-(i)(a)
holding analogous posts
at level 10 on regular
basis in the parent cadre or
department; or(b) having
five years experience in
Level-9 on regular basis
in the parent cadre or
department;
AND(ii) Overall 15 years
of service at Group 'B'
level in
Government.Desirable:-
Possessing 4 years or
more of experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.Note.- The
Maximum age-limit for
appointment by deputation
shall be not exceeding
fifty-six years as on the
closing date of receipt of
applications.
Not
Applicable
Not
Applicable
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11 Senior
Manager
(SM), HR-
Deputation
1 L4,G6 Level 10
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-

(i)(a) holding analogous
posts at level 10 on
regular basis in the parent
cadre or department; or
(b) having five years
experience in Level-9 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 15 years of
service at Group 'B' level
in Government.

Desirable:-
Possessing 4 years or
more of experience in
Administration of any
Government department.

Note.- The Maximum age-
limit for appointment by
deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
Not
Applicable
Not
Applicable
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12 Manager
(Mgr),(Servi
ces)
3 L5,G7 Level 9
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-(i)(a)
holding analogous posts
at level 9 on regular basis
in the parent cadre or
department;(b) having
five years experience in
Level-8 on regular basis
in the parent cadre or
department;
AND(ii) Overall 10 years
of service at Group 'B'
level in
Government.Desirable:-
(ii) Possessing 3 years or
more of experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.Note.- The
Maximum age-limit for
appointment by deputation
shall be not exceeding
fifty-six years as on the
closing date of receipt of
applications.
Not
Applicable
Not
Applicable
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13 Assistant
Manager
(AM),
(Services)
1 L5,G8 Level 8
&
allowanc
es as
decided
by Board
As per
Selection
Committee
recommendat
ions and with
due approval
of Chairman,
GSTN.
Not
Applica
ble
Not
Applicable
Not
Applicable
Not
Applica
ble
Deputatio
n
Deputation Criteria:-

(i)(a) holding analogous
posts at level 8 on regular
basis in the parent cadre or
department; or
(b) having five years
experience in Level-7 on
regular basis in the parent
cadre or department;

AND
(ii) Overall 5 years of
service at Group 'B' level
in Government.

Desirable:-
Possessing 3 years or
more of experience in
Taxation/Finance/business
process automation or IT.
Experience of working in
the domain of GST would
be desirable but not
necessary.

Note.- The Maximum age-
limit for appointment by
deputation shall be not
exceeding fifty-six years
as on the closing date of
receipt of applications.
Not
Applicable
Not
Applicable




Agenda for 43rd GSTCM Volume 2
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Schedule- II
Sl
.
N
o.
Name of
post.
Num
ber
of
Post
Classificat
ion.
Deputatio
n/Market
Level in
the pay
matrix.
Deputati
on
Fixed Term
Employment/Ou
tsourced (CTC
range including
allowances &
PLI) Note: To
be aligned with
market as
required for
market recruits
from time to
time.
Whether
selection
post or
non-
selection
post and
procedure
thereof.
Age-
limit
for
direct
recruit
s from
market
.
Educatio
nal and
other
qualifica
tions
required
for direct
recruits.
Whether
age and
educatio
nal
qualifica
tions
prescribe
d for
direct
recruits
will
apply in
the case
of
promote
es.
Period
of
probati
on, if
any.
Method
of
recruit
ment
whether
by
direct
recruit
ment or
by
promoti
on or
by
deputati
on or
absorpti
on and
percent
age of
the
vacanci
es to be
filled
by
various
method
s.
In case of
recruitment by
promotion or
deputation or
absorption,
grade from
which
promotion or
deputation or
absorption is to
be made.
(Deputation)
Officers of the
Central or State
Govt. or UT or
Autonomous
bodies shall be
selected based
on the following
criteria:
In case of
recruitment
by
promotion or
deputation
or
absorption,
grade from
which
promotion or
deputation
or
absorption is
to be made.
(Market
Recruitment
)
Persons
working in
the Private
Sector shall
be selected
based on
following
criteria:
If a
Departm
ental
Promotio
n
Committ
ee exists
what is
its
composit
ion.
Circumst
ances in
which
Union
Public
Service
Commiss
ion is to
be
consulted
in making
recruitme
nt.
1 2 3 4A 4B 5 6 7 8 9 10 11A 11B 12 13
1 Chief
Executiv
e Officer
(CEO)
1 L1,G1 Pay at
Level 15
&
allowanc
es as
decided
by Board
As per the
prevailing
market rate & to
be negotiated
with candidate
and approved by
the Board of
GSTN.
As per
Screening
&
Selection
Committee
recommen
dations
and with
due
approval
of the
As
detaile
d in
Colum
n 11
(b)
As
detailed
in
Column
11 (b)
Not
Applicab
le
Not
Applic
able
Deputat
ion or
Market
Recruit
ment
Deputation
Criteria:

(i)(a) holding
analogous posts
at level 15 on
regular basis in
the parent cadre
or department;
or
(b) having five
Selection
Criteria:

Essential:-
(i) Graduate
degree in
Engineering
and/or
degree or
diploma in
Management
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 78 of 225
Vol-2
Board of
GSTN and
approval
of the
Governme
nt to be
processed
by the
Departmen
t of
Revenue.
years experience
in Level-14 on
regular basis in
the parent cadre
or department;

AND
(ii) Overall 25
years of
experience at
Group 'A' level
in Government.

Desirable:-
Possessing 10
years or more of
experience in
Taxation/Financ
e/business
process
automation or
IT. and
experience of
working in the
domain of GST.


Note 1 - The
Maximum age-
limit for
appointment by
deputation shall
be not
exceeding fifty-
six years as on
the closing date
of receipt of
applications.

Note 2 - The
period of
appointment
shall be three
from a
recognised
University
or
equivalent.

(ii)
Minimum
work
experience
of 18
(Eighteen)
years in an
organisation
specializing
in large
scale IT
transaction
processing
in taxation
automation/f
inancial
services/gov
ernment
sector
serving large
cross-section
of retail and
business
users, of
which at
least 5 (five)
years should
have been
spent as part
of the top
management
team (Chief
Technology
Officer,
Managing
Director/Exe
cutive
Agenda for 43rd GSTCM Volume 2
Page 79 of 225
Vol-2
years extendable
by another two
years with the
approval of
Board and the
Government.
director or
equivalent).

Desirable:
(i)
Experience
of heading
an
organization
(company,
society or
trust).
(ii)
Experience
of managing
a multi-
stakeholder
driven
organization
and a
demonstrate
d ability to
both lead
and build the
capabilities
of a driven,
bright and
diverse
team.
(iii) Ability
to think
strategically,
anticipate
future
consequence
s and trends
and
incorporate
them into
the
organization
plan.
(iv) High
Agenda for 43rd GSTCM Volume 2
Page 80 of 225
Vol-2
level of
business
acumen,
including
successful
P&L
management
and the
ability to
balance the
delivery of
the programs
within the
approved
budget.
(v) Capacity
for
managing
and leading
people: A
team builder
who has
experience
in scaling up
organization,
has the
ability to
connect staff
both on an
individual
level and in
large groups.

Note 1 - The
Maximum
age-limit for
appointment
from the
market shall
be not
exceeding
fifty four
years as on
Agenda for 43rd GSTCM Volume 2
Page 81 of 225
Vol-2
the closing
date of
receipt of
applications.
Note 2 - The
period of
appointment
shall be five
years
extendable
by another
two years
with the
approval of
Board and
Government.
2 Senior
Vice
President
(SVP),
(Support)
1 L3,G3 Level 13
&
allowanc
es as
decided
by Board
As per the
prevailing
market rate & to
be negotiated
with candidate
and approved by
Chairman,
GSTN.
As per
Selection
Committee
recommen
dations
and with
due
approval
of Board.
As
detaile
d in
Colum
n 11
(b)
As
envisAs
detailed
in
Column
11 (b)
Not
Applicab
le
Not
Applic
able
Deputat
ion or
Market
Recruit
ment
Deputation
Criteria:-

(i) (a) holding
analogous posts
at level 13 on
regular basis in
the parent cadre
or department;
or
(b) having five
years experience
in Level-12 on
regular basis in
the parent cadre
or department;

AND
(ii) Overall 13
years of service
at Group 'A'
level in
Government.


Desirable:-
Possessing 8
Selection
Criteria:
(i) MBA/
Post
graduate/
Similar
degree or
diploma
with an
experience
of total 15-
18 years in
the support
functions
(preferably
finance and
administrati
on) (ii)
At least 5
years as
Head of
Finance /
Administrati
on of a large
public/
private
sector
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 82 of 225
Vol-2
years or more of
experience in
Finance and
Administration.
A degree in Law
would be
preferable but
not mandatory.

Note.- The
Maximum age-
limit for
appointment by
deputation shall
be not
exceeding fifty-
six years as on
the closing date
of receipt of
applications.
organisation
in India is
required
Generalist
experience
of approx.
10- 12 years
across
multiple
support
functions
(i.e. Admin,
Legal,
Finance,
HR, IT etc)
in a large
public
sector/
private
sector/
ministry/
department
of central or
state
government
is preferred
Note .- The
Maximum
age-limit for
appointment
from the
market shall
be not
exceeding
Forty five
years as on
the closing
date of
receipt of
applications.
3 Senior
Vice
President
1 L3,G3 Level 13
&
allowanc
As per the
prevailing
market rate & to
As per
Selection
Committee
As
detaile
d in
As
envisAs
detailed
Not
Applicab
le
Not
Applic
able
Deputat
ion or
Market
Deputation
Criteria:
Selection
Criteria:
Role holder
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 83 of 225
Vol-2
(SVP),
Outreach
and
Capabilit
y
Building
es as
decided
by Board
be negotiated
with candidate
and approved by
Chairman,
GSTN.
recommen
dations
and with
due
approval
of Board.
Colum
n 11
(b)
in
Column
11 (b)
Recruit
ment
(i) (a)nholding
analogous posts
at level 13 on
regular basis in
the parent cadre
or department;
or
(b) having four
years experience
in Level-12 on
regular basis in
the parent cadre
or department;

AND
(ii) Overall 13
years of service
at Group 'A'
level in
Government.

Desirable:-
Possessing 5
years or more of
experience in
Taxation/Financ
e/business
process
automation or
IT. Experience
of working in
the domain of
GST would be
desirable but not
necessary.
Around 5-8
years of
experience in
Information &
Broadcasting
Ministry/
Related
functions for an
to be
sourced
from private
sector with
experience
of 15-18
years and
Post
Graduate in
Human
Resource
Management
/ Change
Management
/ Any
similar
degree/
diploma
Around 5-8
years of
experience
in Training
and Change
Management
for a private
sector
candidate is
preferred
Note .- The
Maximum
age-limit for
appointment
from the
market shall
be not
exceeding
Forty five
years as on
the closing
date of
receipt of
applications.
Agenda for 43rd GSTCM Volume 2
Page 84 of 225
Vol-2
official on
deputation is
preferred

Note.- The
Maximum age-
limit for
appointment by
deputation shall
be not
exceeding fifty-
six years as on
the closing date
of receipt of
applications.
4 Senior
Vice
President
(SVP),
Finance
1 L3,G3 Level 13
&
allowanc
es as
decided
by Board
As per the
prevailing
market rate & to
be negotiated
with candidate
and approved by
Chairman,
GSTN.
As per
Selection
Committee
recommen
dations
and with
due
approval
of Board.
As
detaile
d in
Colum
n 11
(b)
As
envisAs
detailed
in
Column
11 (b)
Not
Applicab
le
Not
Applic
able
Deputat
ion or
Market
Recruit
ment
Deputation
Criteria:

(i)(a) holding
analogous posts
at level 13 on
regular basis in
the parent cadre
or department;
or
(b) having five
years experience
in Level-12 on
regular basis in
the parent cadre
or department;

AND
(ii) Overall 13
years of service
at Group 'A'
level in
Government.


Desirable:-
Possessing 5
years or more of
Selection
Criteria:
Essential:
• For
candidates
from the
private
sector:
Minimum
work
experience
of 15-18
years in an
organisation
specializing
in large
scale IT
transaction
processing
in financial
services/gov
ernment
sector
serving large
cross-section
of retail and
business
users, of
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 85 of 225
Vol-2
experience in
Finance and
Administration.
A CA or ICWA
would be
preferable but
not mandatory.

Note .- The
Maximum age-
limit for
appointment by
deputation shall
be not
exceeding fifty-
six years as on
the closing date
of receipt of
applications.
which at
least 5 (five)
years should
have been
spent as part
of the top
management
team.
• Experience
of heading
the Finance
of an
organization
(company,
society or
trust).
• Experience
of managing
a multi-
stakeholder
driven
organization
and a
demonstrate
d ability to
both lead
and build the
capabilities
of a driven,
bright and
diverse
team.
• Ability to
think
strategically,
anticipate
future
consequence
s and trends
and
incorporate
them into
the
Agenda for 43rd GSTCM Volume 2
Page 86 of 225
Vol-2
organization
plan.
• High level
of business
acumen,
including
successful
P&L
management
and the
ability to
balance the
delivery of
the programs
within the
approved
budget.
• Capacity
for
managing
and leading
people: A
team builder
who has
experience
in scaling up
organization,
has the
ability to
connect staff
both on an
individual
level and in
large groups.
Note .- The
Maximum
age-limit for
appointment
from the
market shall
be not
exceeding
Forty five
Agenda for 43rd GSTCM Volume 2
Page 87 of 225
Vol-2
years as on
the closing
date of
receipt of
applications.
5 Vice
President
(VP),
OSD to
Chairma
n
1 L3,G4 Level 12
&
allowanc
es as
decided
by Board
As per the
prevailing
market rate & to
be negotiated
with candidate
and approved by
Chairman,
GSTN.
As per
Selection
Committee
recommen
dations
and with
due
approval
of
Chairman,
GSTN.
Not
Applic
able
Not
Applicab
le
Not
Applicab
le
Not
Applic
able

Deputat
ion
Deputation
Criteria:

(i) (a) holding
analogous posts
at level 12 on
regular basis in
the parent cadre
or department;
or
(b) having four
years experience
in Level-11 on
regular basis in
the parent cadre
or department;

AND
(ii) Overall 9
years of service
at Group 'A'
level in
Government.

Desirable:-
Possessing 5
years or more of
experience in
working as OSD
to Senior Levels
in the
Government
preferably in
Taxation/Financ
e/business
process
automation or
IT and
Selection
Criteria:
To be
decided by
Chairman,
GSTN
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 88 of 225
Vol-2
experience of
working in the
domain of GST.

Note.- The
Maximum age-
limit for
appointment by
deputation shall
be not
exceeding fifty-
six years as on
the closing date
of receipt of
applications.
6 Assistant
Vice
President
(AVP),
Administ
ration
1 L4,G5 Level
11&
allowanc
es as
decided
by Board
As per the
prevailing
market rate & to
be negotiated
with candidate
and approved by
CEO, GSTN.
As per
Selection
Committee
recommen
dations
and with
due
approval
of
Chairman,
GSTN.
As
detaile
d in
Colum
n 11
(b)
As
detailed
in
Column
11 (b)
Not
Applicab
le
Not
Applic
able
Deputat
ion or
Market
Recruit
ment
Deputation
Criteria:

(i) (a) holding
analogous posts
at level 11 on
regular basis in
the parent cadre
or department;
or
(b) having four
years experience
in Level-10 on
regular basis in
the parent cadre
or department;

AND
(ii) Overall 5
years of service
at Group 'A'
level in
Government.

Desirable:-
Possessing 5
years or more of
experience in
Selection
Criteria:
Any
Graduate/
Post
Graduate
degree /
diploma
(Full
time/Part
Time) with
10- 14 years
of
experience
in Admin
department
in a large
private/
public sector
organization
Understandi
ng of
contractual
matters,
documentati
on etc
Knowledge
of
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 89 of 225
Vol-2
Administration.

Note.- The
Maximum age-
limit for
appointment by
deputation shall
be not
exceeding fifty-
six years as on
the closing date
of receipt of
applications.
administrati
on services
and
alternative
agencies /
service
providers;
Statutory
compliances
applicable to
Administrati
on function;
vendor
evaluation
and selection
and vendor
database
management
.

Note .- The
Maximum
age-limit for
appointment
from the
market shall
be not
exceeding
Thirty Nine
years as on
the closing
date of
receipt of
applications.
7 Assistant
Vice
President
(AVP),
Network
&
Outreach
1 L4,G5 Level 11
&
allowanc
es as
decided
by Board
As per the
prevailing
market rate & to
be negotiated
with candidate
and approved by
CEO, GSTN.
As per
Selection
Committee
recommen
dations
and with
due
approval
of
As
detaile
d in
Colum
n 11
(b)
As
detailed
in
Column
11 (b)
Not
Applicab
le
Not
Applic
able
Deputat
ion or
Market
Recruit
ment
Deputation
Criteria:

(i) (a) holding
analogous posts
at level 11 on
regular basis in
the parent cadre
or department;
Selection
Criteria:
Role holder
to be
sourced
from private
sector with
experience
of 10- 14
Not
Applicab
le
Not
Applicabl
e
Agenda for 43rd GSTCM Volume 2
Page 90 of 225
Vol-2
Chairman,
GSTN.
or
(b) having five
years experience
in Level-10
(Grade-A) on
regular basis in
the parent cadre
or department
for directly
recruited Group
'A' Officers or
(c) having 20
years in
government
service and
serving in
Level-10 on
regular basis in
the parent cadre
or department
for officers
promoted from
Group 'B'.

Desirable:-
Possessing 5
years or more of
experience in
Taxation/Financ
e/business
process
automation or
IT and
experience of
working in the
domain of GST.

Note.- The
Maximum age-
limit for
appointment by
deputation shall
be not
years in
Marketing/
Mass
Communicat
ion/
Corporate
Communicat
ion and
MBA/ PG/
Any other
similar
degree or
diploma in
Mass
Communicat
ion/
Marketing
Agenda for 43rd GSTCM Volume 2
Page 91 of 225
Vol-2
exceeding fifty-
six years as on
the closing date
of receipt of
applications.


















Agenda for 43rd GSTCM Volume 2
Page 92 of 225
Vol-2
Schedule - III
Sl.
No.
Name
of
post.
Numbe
r of
Post
Classification
.
Deputation/
Market
(Level/Grade
)
Pay for
Fixed Term
Employment/
Outsourced
(CTC range
including
allowances &
PLI) Note:
To be aligned
with market
as required
for market
recruits from
time to time.
Whether
selection post or
non-selection
post and
procedure
thereof.
Age-limit
for direct
recruits
from
market.
Educational
and other
qualification
s required
for direct
recruits.
Whether age
and
educational
qualification
s prescribed
for direct
recruits will
apply in the
case of
promotees.
Period of
probation
, if any.
Method of
recruitmen
t whether
by direct
recruitmen
t or by
promotion
or by
deputation
or
absorption
and
percentage
of the
vacancies
to be filled
by various
methods.
In case of recruitment
by promotion or
deputation or
absorption, grade from
which promotion or
deputation or
absorption is to be
made. (Market
Recruitment)
If a
Departmenta
l Promotion
Committee
exists what is
its
composition.
Circumstance
s in which
Union Public
Service
Commission
is to be
consulted in
making
recruitment.
1 2 3 4 5 6 7 8 9 10 11 12 13
1 Execut
ive
Vice
Presid
ent
(EVP),
Techn
ology
1 L2,G2 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Board.
As per Screening
& Selection
Committee
recommendation
s and with due
approval of
Board
Maximu
m Age
Limit
below 48
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech (IT)/
BEdegree in IT / MCA
while M.Tech/ MBA is
desirable with 18 years
of experience
► Minimum 14-15
years of experience in
the IT function of a large
organization , out of
which minimum 3 years
as CTO/CIO
► Around 10 years as
technology head in an
organisationwhich
specializes in large scale
transaction processing in
financial
services/government
sector or in delivery of
large scale IT and IT
enabled services in India
or abroad
► Proven record of
leading a large team
consisting of
IT/Technology experts
► Proven record of
designing and
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 93 of 225
Vol-2
implementing
technology specific
systems and solutions
across multiple areas of
a single organization
► Expertise in the area
of architecture, IT
governance, IT
operations and IT
Outsourcing, IT contract
structuring and
monitoring
► Understanding of
technology trends and
practices like Cloud
Computing, Service
Oriented Architecture,
Distributed Computing,
etc.
► Knowledge and
experience of
IT/Technology
governance and
operations
► Comprehensive
knowledge of hardware,
software, application,
and systems engineering
► Experience in setting
up the IT/Technology
function of a Start-Up
Organization is
preferred Excellent
leadership skills,
interpersonal skills and
communication skills
are desired
2 Senior
Vice
Presid
ent
(SVP),
Softwa
re
Develo
pment
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech (IT)/
BEdegree in IT / MCA
while M.Tech/ Masters
Degree/ Diploma in IT
is desirable with 15- 18
years of experience of
working with top IT
companies in software
development and
maintenance
► Minimum 6years of
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 94 of 225
Vol-2
experience in
Programme Manager or
above positions
► At least 5 years of
experience in
performing a leadership
role in a reputed IT
company
► Experience in
database application
scope definition and
implementation
► Proven record of
designing and
implementing
technology specific
systems and applications
across multiple areas of
a single organization
► Expert knowledge
and demonstrated
experience in software
throughout the software
development lifecycle.
► Experience in leading
and managing teams
executing software
development, testing &
implementation.
► Knowledge of latest
software development
technologies, platforms,
programming languages,
standards, tools,
products etc. is critical.
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
adopting the structured
implementation based
on proven
methodologies and
Agenda for 43rd GSTCM Volume 2
Page 95 of 225
Vol-2
models
► Experience in
tracking the
project/program risk
identification, mitigation
in a structured way
► Experience in
implementing the
portfolio or program
management tools and
adoption of the same
Experience in Vendor
management, change
management in
designing the structure
and/or executing those
programs in an
organization
3 Senior
Vice
Presid
ent
(SVP),
IT
Infra
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech (IT)/
BEdegree in IT / MCA
while M.Tech/ Masters
Degree/ Diploma in ITis
desirable with 15- 18
years of experience
working with top IT
companies in IT
Infrastructure
management and
implementation/Managi
ng IT infrastructure of a
reputed organization
having large IT setup
► Minimum 6years of
experience in in
Programme Manager or
above positions
► Experience in
supervising system
configuration, software
installation and upgrades
of operating systems
acting as web servers
and application servers
► Experience in
optimizing system
availability, security,
and performance of data
centers.
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
► Experience in
monitoring system
performance and
capacity; provide input
for needed expansion or
alternative
configurations to
support additional
storage, database
capacity, or web server
capacity needs
► Experience in
adopting Enterprise
Architecture frameworks
such as TOGAF or
FEAF
► Experience in
building enterprise
infrastructure
architecture covering
backend storage
platforms, servers, user-
end infrastructure
network etc.,
► Experience
inHardware,
configuration,
integration, and support
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
tracking the
project/program risk
identification, mitigation
in a structured way
► Experience in
implementing the
portfolio or program
management tools and
adoption of the same

► Experience in Vendor
Agenda for 43rd GSTCM Volume 2
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Vol-2
management, change
management in
designing the structure
and/or executing those
programs in an
organization
Experience of ITIL
based service delivery
and management
4 Senior
Vice
Presid
ent
(SVP),
CISO
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Masters in
Technology/ MS
(IT)with
CISSP/CISA/CISM/Tec
hnology Risk
Management with 15-
18 years of experience
in information security
or related field out of
whichatleast 2 years
experience of working
as CISO in a reputed
organisation
► Experience in
administering
information security,
business continuity and
disaster recovery
programs
► Working knowledge
of and experience in the
policy and regulatory
environment
► Experience in
administering an
information security
programme
► Knowledge of
information security
solutions such as
firewalls, identity and
access control, IPS/IDS
and host based solutions,
cryptography solutions,
CA’s, key management
systems, URL filtering,
e-mail security, and end-
point protection
solutions such as anti
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
malware/firewalls
► Experience in DR
Management including
creation and
maintenance of DR
plans, manage DR
compliance testing,
conduct DR procedure
reviews and DR strategy
reviews, co-ordinate the
production, maintenance
and testing of Business
Continuity plans fSor
the teams that need them
Knowledge of common
information security
management
frameworks, such as
ISO/IEC 27001, ITIL,
COBIT
5 Senior
Vice
Presid
ent
(SVP),
Syste
ms and
Servic
e
Engine
ering
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Bachelors/Masters in
IT/ECE or Masters /
Bachelors in Computer
Applications or
relevant experience in
the domain of IT
operations with more
than 18 years.
► Must have led large
teams handling complex
and internet scale
system. A minimum of
6 years of experience is
expected in leading and
managing teams.
►Candidates with
techno-managerial
experience may be
desirable
►12-14 years of
experience in designing
and maintaining IT
function of large
organisations
► Extensive knowledge
of any flavor of
Unix/Unix Based
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Systems and
applications
► Good knowledge of
system administration
and Infrastructure
architecture design
principles
► An excellent knack of
troubleshooting issues
arising out of Network,
System or
application.
► Strong fundamentals
of OSI model and
TCP/IP stack on
Systems
► Extensive experience
on handling OpenSource
Software systems like
OpenLdap,
WebServers (Apache,
nGnix, etc)
► Experience of leading
a agile and responsive
team consisting of
IT/Technology
software and hardware
professionals
► Experience of
implementing IT
specific systems and
solution across
functions.
►Good understanding
of financials of IT
Systems
6 Senior
Vice
Presid
ent
(SVP),
Custo
mer
Servic
e
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► MBA with 15- 18
years of experience in
IT/ITES service delivery
and management/
Helpdesk operations out
of which at least 3 years
as head of helpdesk
functions ina reputed
organization. ITIL
Intermediate
certification preferred
► Experience of 5 years
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
in ITIL based service
delivery and
management At least 5
years of experience in
supervising/ handling
customer services,
overseeing the overall
performance and service
levels of the customer
services team, taking
care of escalations.
Experience of setting up
and leading the
Customer Relations/
Operations function in a
start-up organization
with at least 100
employees is preferred
7 Senior
Vice
Presid
ent
(SVP),
Enterp
rise
Archit
ect
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► The applicant should
be a B.E./B.Tech in
Computer Science/IT
from a reputed institute.
► Masters degree in
Computer Science
and/or A Ph.D in
Computer Science from
an acclaimed
university will be
preferred.

Experience :
► Should have a
minimum of 15 years in
the IT industry with at
least 10 years into large
scale
systems architecture and
implementation
► Strong technical
experience with respect
to high performance
architecture covering
security,
integrations and
scalability
► Experience in
building large scale
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
transactional systems
that can support 100’s of
millions of
transactions
► Proven experience in
building online-offline
systems with high level
of data integrity
► In-depth hand-on
experience in designing
and building component
layered IT systems using
broad technologies such
as Java, RDBMS, XML,
HTML, Mobile, NoSQL
systems, among
others

Preferred :
► Candidates with
hand-on experience in
multiple IT domains in
areas of Application
development, Databases,
IT Infrastructure etc.
► End-to-end
understanding of the
software development
process including
payment
gateways. Experience in
leading banks, payment
systems companies and
gateways would
be an added preference.
► Experience of
building systems that are
API based, loosely
coupled, and highly
automatable.
► Handled similar
roles as Chief
Technology
Officer/Technical
Director or equivalent
for at least three years.
8 Senior 1 L3,G3 As per the As per Selection Maximu As mentioned Not Not Market ► Bachelors/Masters Not Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Vice
Presid
ent
(SVP),
Operat
ions &
Mainte
nance
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
Committee
recommendation
s and with due
approval of
Board.
m Age
Limit 45
years
in Column 11 Applicable Applicable Recruitment Degree/Diploma in
IT/ECE / Masters
Degree/Diploma in
Computer Applications
with around 15-18 years
of experience in the IT
function of large
organisations
► Experience of leading
a large team consisting
of IT/Technology
software and hardware
experts
► Experience of
designing and
implementing
technology specific
systems and solutions
across multiple areas of
a single organisation
► Experience in the IT
Function of a Start-Up
Organisation/ providing
IT Consulting services
to a Start-Up
Organisation is preferred
► Solid understanding
of financial aspects
relating to the technical
aspects
Experience in
management and
maintenance of large
databases, ensuring their
optimisation as regards
to performance,
consistency, integrity
and security.
Applicable
9 Senior
Vice
Presid
ent
(SVP),
Procur
ement
&
Contra
cts
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► MBA with around
15- 18 years of
experience in
Procurement and
contracts function across
Service Industries like
Financial services, e-
Governance Services,
Banking, IT
Consultancy services,
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Business Analyst in IT
Companies.
► At least 3- 5 years of
experience in Bid
Management Processes
like preparation of RFP
(defining scope of work,
technical and financial
evaluation criteria,
service level matrices,
milestones, deliverables,
payment terms etc.),
handling pre bid
meetings, selection of
vendors, drafting
contracts etc.
► Understanding of
contractual matters,
documentation and legal
issues of procurement
► Knowledge of
statutory compliances
applicable to
procurement function
Knowledge of vendor
evaluation and selection
and vendor database
management
10 Senior
Vice
Presid
ent
(SVP),
BIFA
Head
1 L3,G3 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 45
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
PG in Economics/
Statistics/ Mathematics
OR MS in
IT/Information
Systems/MBA is
desirable with at least 14
years of experience

➢ Minimum of 8 years
of experience in
Business
Intelligence/risk analysis
and risk
management/fraud
management in BFSI,
Tax Administration, e-
commerce or Telecom
sector
➢ Experience in
deriving insight using
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
big data analytics
➢ Experience in the
field of AI and Machine
Learning including
experience with deep
learning models.
11 Vice
Presid
ent
(VP),
Data
Center
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech (IT)/ BE
degree in IT / MCA
while M.Tech/ MBA is
desirable with 12- 16
years of experience
working with top
companies in IT
infrastructure
management and
implementation/
managing IT
infrastructure of a
reputed organization
having large IT setup
► 8- 10 years of
experience in the design
and implementation of
large-scale, multi-tiered,
heterogeneous IT
infrastructure/Data
Centre with experience
in setting up two Data
Center facilities.
► Expert understanding
of leading SAN storage
technologies and
network server
platforms
► Experience in
building enterprise
infrastructure
architecture covering
backend storage
platforms, servers, user-
end infrastructure
network etc.,
► Experience in
Hardware,
configuration,
integration, and support
► Detailed knowledge
of Data Center
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
technologies with
experience in deploying
different kinds of
hardware platforms,
storage platforms in a
2/3-way data center
scenario
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
adopting the structured
implementation based
on proven
methodologies and
models
► Experience in
tracking the
project/program risk
identification, mitigation
in a structured way
► Experience in
implementing the
portfolio or program
management tools and
adoption of the same
► Experience in Vendor
management, change
management in
designing the structure
and/or executing those
programs in an
organization
12 Vice
Presid
ent
(VP),
CS &
CCO
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Essential: The candidate
should be a qualified
Company Secretary.
Desirable: Candidates
who are qualified
Chartered Accountants
would be given
preference.
12-16 years of relevant
experience as a
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Company Secretary in a
large private/public
sector company in India.
Knowledge of
Companies Act and of
various other relevant
statutes/laws applicable
to companies,
Government policies,
Rules, Regulations,
Notifications,
Directives, Guidelines
etc.
13 Vice
Presid
ent
(VP),
Legal
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Bachelor of Law (LLB)
degree/diploma
Around 12- 16 years of
relevant experience in
drafting and vetting of
contracts and
agreements, litigation
management, internal
policy development to
ensure compliance to all
statutory and regulatory
requirements,
overseeing and
evaluating the
compliance related
matters of the
organisation.

Knowledge of various
relevant statutes,
Government policies,
regulations and
directives, and company
policies and guidelines.
Excellent knowledge of
all legal aspects relating
to various laws- Labour
Laws etc., and the
procedures in respect of
Civil and Criminal
Matters
Excellent knowledge of
Cyber Laws in India,
International Laws
relating to Information
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Technology, protection
of IPRs
Note .- The Maximum
age-limit for
appointment from the
market shall be not
exceeding Forty one
years as on the closing
date of receipt of
applications.
14 Vice
Presid
ent
(VP),
HR &
Traini
ng
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► MBA/ PG Diploma
in Human Resources /
Any similar degree or
diploma in HR with
around 12- 16 years of
experience across
various domains of the
HR function in a large
private/ public sector
organization
► 4-5 years of
experience in specialist
HR roles
► Experience of
designing and
conducting human
resource management
and organization
development
interventions in large
organisations
► Experience in
Handling recruitment,
Managing day to day
human resource
operations, Organising
internal training and
development activities
of the employees,
Managing employee
benefit programs,
Preparing, updating, and
implementing human
resource policies and
procedures, Maintaining
employee records
Experience of setting up
and leading the HR
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Function in a start-up
organization with over
100 employees is
preferred.
15 Vice
Presid
ent
(VP),
Softwa
re
Archit
ect
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Should have
experience of working
on popular Hadoop
distribution platforms
like Apache, Cloudera,
HortonWorks etc.
► B.E/ B.Tech/ M.Tech
with at least 10+ years
of experience, 4 years as
a Data Architect of
which 3 years should be
as a Big Data Architect.
► Should have sound
knowledge of various
MDM and ELT/ETL
tools and data design.
► Should have prior
experience in handling
specialized and complex
architectural issues
involving applications
working on Data of
petabytes scale.
Should have very strong
fundamentals of data
structures and
algorithms.
Not
Applicable
Not Applicable
16 Vice
Presid
ent
(VP),
Progra
m &
Project
Manag
ement
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
►
B/E./B.Tech/ME/M.Tec
h/MCA/MSc in
Electronics/IT/Computer
Science or
equivalent/MBA
(Project Management)
with minimum 10 years
of relevant experience.
► Preferred
Certifications:
PMP/Prince-2, PMI-
ACP/CSM.
► Total 12 – 16
years of experience in IT
with at least 3 years’
experience in managing
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
large, complex and
technically diverse
successful IT projects.
► Technical
experience in at least
two key technology
domains.
► Candidates with
hands-on experience in
multiple IT domains.
► Experience of
handling multiple
vendors under large
commercial contracts
► Excellent
communication skills in
English, both written
and spoken.
► Preferred experience
of handling large IT
Project under Managed
Services Mode under
SLAs.
17 Vice
Presid
ent
(VP),
Delive
ry
Manag
er
1 L3,G4 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by Chairman,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Board.
Maximu
m Age
Limit 41
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
• 12 to 16 year of
experience with
BE/B.Tech / M.Tech
(IT/Electronics and
Communication,
Computer Science )/
MBA IT/Electronics and
Communication/MCA
or equivalent
• Certification in any of
the following is
preferred -
PMP/PRINCE2/SAFE©
/CSM/ACP
• Minimum 3 years of
experience as a Delivery
Manager/ Project
Manager in the field of
Fraud Analytics.
• Experience with
Taxation/BFSI/Telecom
will be a plus.
• Experience in UNIX
environment is a must
• Experience of scripting
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
languages like Python,
PERL or SHELL
• Experience of working
in State/ Centre
Commercial Tax
Department/ Treasuries
• Must be an expert agile
practitioner and
thorough with
Project/Delivery. PMP
/PRINCE2/SAFE©/CS
M/ACP certification is a
plus
• Must be well versed
with at least one Project
Management tool like
MS Project, JIRA etc.
18 Assista
nt Vice
Presid
ent
(AVP),
Data
Analys
is
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
B.E./ B.Tech / MCA
certified professional or
equivalent with
certifications in OEM
technologies
Overall experience of 9
years of in the field of
analytics.
Strong programming
experience in either
Python or R .
Should have sound
knowledge of NoSQL
Big Data systems like
Hbase, Mongo,
Cassandra
Excellent understanding
of machine learning
techniques and
algorithms.
Experience with
common data science
toolkits ( SciPy, Numpy,
Pandas etc ).
Good applied statistics
skills, such as
distribution, statistical
testing, regression etc.
Data Oriented
personality.
Not
Applicable
Not Applicable
19 Assista 4 L4,G5 As per the As per Selection Maximu As mentioned Not Not Market ► B.Tech (IT)/ BE Not Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
nt Vice
Presid
ent
(AVP),
Busine
ss
Applic
ations
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
m Age
Limit 39
years
in Column 11 Applicable Applicable Recruitment degree in IT / MCA
while M.Tech/ Masters
Degree/ Diploma in IT
is desirable with 10- 14
years of experience
working with top IT
companies in software
development and
maintenance
► Minimum 5 years of
experience in Project
Manager or above
positions
► Expert knowledge
and demonstrated
experience in software
throughout the software
development lifecycle
► Experience in
managing the complex
IT project that involves
packaged application
implementation coupled
with custom application
development
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
adopting the structured
implementation based
on proven
methodologies and
models
► Experience in
tracking the
project/program risk
identification, mitigation
in a structured way
► Experience in
implementing the
portfolio or program
management tools and
Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
adoption of the same
Experience in Vendor
management, change
management in
designing the structure
and/or executing those
programs in an
organization
20 Assista
nt Vice
Presid
ent
(AVP),
R&D
Busine
ss
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► CA/ CS/ MBA
Finance with 10- 14
years of experience in
Service Industries like
Financial services, e-
Governance Services,
Banking, IT
Consultancy services
► Around 6-8 years of
experience in
functioning of various
tax administration and
other regulatory bodies
in the Indirect Taxation
Space with additional
exposure to the data
analytics
Not
Applicable
Not Applicable
21 Assista
nt Vice
Presid
ent
(AVP),
Applic
ation
Suppor
t &
QA
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech/ BE/ MS
degree in IT / MCA
while MS/ MBA is
desirable with 10- 14
years of experience
► Minimum 6-8 years
of experience as a Tester
► Experience in
creating or developing
testing strategies for
custom application
development as well as
packaged application
implementation
► Experience in IT
Application testing,
working within the IT
development lifecycle
and automated testing
► Experience in
creation of test plans and
specifications and
production of test
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
scenarios and scripts
► Should have
experience in different
testing techniques like
Whitebox Testing,
Blackbox testing, Non-
functional testing,
Regression testing etc.,
► Experience in
executing the test cases
using any tools like
Rational Functional Test
Manager etc.,
► Should have
experience in any one of
the industry standard
testing tools for
automation of testing
wherever possible
22 Assista
nt Vice
Presid
ent
(AVP),
Netwo
rk
Engine
ering
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
• B.E./ B.Tech / MCA
certified professional or
equivalent with
certifications in OEM
technologies
The applicant should
have 10+ years of
experiences.
Hands on experience on
at least 6 years on core
network devices
Certifications in OEM’s
network devices/
technologies is preferred
Certification in CCNP or
equivalent. CCIE
certificate holders will
get added advantage
Hands on knowledge in
Cisco Nexus and ASR
line of products and its
configurations
Hands on knowledge in
HP Network
(Routers/Switches)
products and its
configurations, Global
and Server load
balancers, WAN
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
optimisers, VPN product
configurations
Knowledge on Check
point, Paulo Alto,
Fortigate firewall
product configurations
would be added
advantage
Working knowledge of
IPSEC with
implementation
experience
Communicate technical
issues to technical and
non-technical audience
23 Assista
nt Vice
Presid
ent
(AVP),
Securit
y-IT
Infra
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech (IT)/
BEdegree in IT / MCA
while M.Tech/ MBA is
desirable with 10- 14
years of experience
working with top
companies in IT
infrastructure
management and
implementation/
managing IT
infrastructure of a
reputed organization
having large IT setup
► 6- 8 years of
CCSP/CISSP or
equivalent experience in
the design and
implementation of large-
scale, multi-tiered,
heterogeneous IT
infrastructures/Data
Centres with around 4
years of experience in
information security or
related field.
► Knowledge of
building enterprise
security architecture
from business
architecture and user
requirements and
organization policies
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
► Experience in
building security
solutions at different
layers of IT systems like
Application, Network,
Infrastructure in a
unified way
► Experience in
developing information
security solutions such
as firewalls, identity and
access control, IPS/IDS
and host based solutions,
cryptography solutions,
key management
systems, URL filtering,
e-mail security, and end-
point protection
solutions such as anti
malware/firewalls
► Experience in
building enterprise
infrastructure
architecture covering
backend storage
platforms, servers, user-
end infrastructure
network etc.,
► Experience
inHardware,
configuration,
integration, and support
► Knowledge of UNIX,
AIX, Linux, Cisco
Network IDS, Cisco
Host-based IDS, eTrust
Access Control, ESM,
and IDS. DES
encryption, Digital
Certificates, SSL, VPN,
IPSec, TCP/IP, DNS and
web security
architecture, mySQL,
subversion,
SpamAssassin/other
spam tools
► Experience in
responding and assisting
Agenda for 43rd GSTCM Volume 2
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Vol-2
in the coordination effort
to remediate security
alerts and respond to
information security
related incidents
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
adopting the structured
implementation based
on proven
methodologies and
models
► Experience in
tracking the
project/program risk
identification, mitigation
in a structured way
24 Assista
nt Vice
Presid
ent
(AVP),
Enterp
rise
Tools
Monit
oring
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► BCA /
B.E.(Computers) with
around 10- 14 years of
experience in handling
internal IT operations
for a large private/
public sector
organization
Experience in running
internal IT department,
strategizing the activities
and corresponding
budgets and managing
end to end activities
pertinent to IT Hardware
& Software, Network
topology and Security
Systems, Process
Mapping and Testing
Methods & Techniques,
Backup and Disaster
Recovery Mechanisms,
Mailing & Database
Solutions and Web-
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
portals, IT Helpdesk
operations etc.
25 Assista
nt Vice
Presid
ent
(AVP),
Disast
er
Recov
ery
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► BE/B.Tech in IT with
10- 14 years of
experience in IT
organization with at
least 4 years of
experience in Disaster
Recovery role
► Certifications -
Certified Information
Systems Security
Professional (CISSP) or
Certified Information
Security Manager
(CISM)
► At least 2-3 years of
experience in DR
Management including
creation and
maintenance of DR
plans, manage DR
compliance testing,
manage the risk register
of DR issues
Knowledge of aspects of
physical security and
facility management in
the DC/DR facility of an
organization.
Not
Applicable
Not Applicable
26 Assista
nt Vice
Presid
ent
(AVP),
Data
Center
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Min. B. E. / B.Tech
(IT) / MCA with 10- 14
years of experience
► 6- 8 years of
experience in the design
and implementation of
large-scale, multi-tiered,
heterogeneous IT
infrastructures / Data
Centres
► Expert understanding
of leading Compute,
SAN storage
technologies and
networking and Security
platforms
► Experience in
building enterprise
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
infrastructure
architecture covering
backend storage
platforms, servers, user-
end infrastructure
network etc.,
► Experience with
Hardware and Operating
System design,
configuration,
integration, and support
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
implementing the
portfolio or program
management tools and
adoption of the same
► Experience in Vendor
management, change
management in
designing the structure
and/or executing those
programs in an
organization.
27 Assista
nt Vice
Presid
ent
(AVP),
Helpde
sk-
Busine
ss
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Any graduate with
around 10- 14 years of
work experience
► Minimum 6-8 years’
experience in customer
care/ call center
► Experience in
managing pool help desk
personnel and
experience in doing
help-desk resource
planning
Experience in
coordinating with
vendors in resolving
customer issues/
grievances
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
28 Assista
nt Vice
Presid
ent
(AVP),
Helpde
sk-
Techni
cal
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► MBA with 10-14
years of experience in
IT/ITES service delivery
and management/
Helpdesk operations in a
reputed organization.
ITIL Foundation
certification preferred
► Experience of 3 years
in ITIL based service
delivery and
management
► At least 3 years of
experience in
supervising/ handling
customer services,
overseeing the overall
performance and service
levels of the customer
services team, taking
care of escalations.
Not
Applicable
Not Applicable
29 Assista
nt Vice
Presid
ent
(AVP),
Project
Manag
er
2 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
The applicant should be
a
B.E./B.Tech/MCA/MB
A(IT).
► Preferred
Certifications:
PMP/Prince-2, PMI-
ACP/CSM
► Total 9 – 14 years of
experience in IT with
atleast 3 years’
experience in managing
large,
complex and technically
diverse successful IT
projects
► Technical experience
in atleast two key
technology domains.
► Candidates with
hands-on experience in
multiple IT domains
Not
Applicable
Not Applicable
30 Assista
nt Vice
Presid
ent
(AVP),
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
As per Selection
Committee
recommendation
s and with due
approval of
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech (IT)/ MS
degree in IT / MCA
while MS/ Masters
Degree/ Diploma in
Applications is
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Audit
&
Qualit
y
with candidate
and approved
by CEO,
GSTN.
Chairman,
GSTN.
desirable with 10- 14
years of experience
► Minimum 6-8 years
of experience in the IT
function of a large
organization or
Consulting to a large
organization
► Experience in
adopting Enterprise
Architecture frameworks
such as TOGAF or
FEAF
► Expert knowledge
and demonstrated
experience in software
throughout the software
development lifecycle
► Experience in
managing the complex
IT project that involves
packaged application
implementation coupled
with custom application
development
► Experience in using
industry standards,
technology standards
and architecture
frameworks in building
the architecture
blueprints and their
implementation
► Experience in
adopting the structured
implementation based
on proven
methodologies and
models
► Experience in
tracking the
project/program risk
identification, mitigation
in a structured way
► Experience in
implementing the
portfolio or program
management tools and
Agenda for 43rd GSTCM Volume 2
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Vol-2
adoption of the same
Experience in Vendor
management, change
management in
designing the structure
and/or executing those
programs in an
organization
31 Assista
nt Vice
Presid
ent
(AVP),
Busine
ss
Analys
t
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Basic Qualifications:
Experience of 10+ years
as an Indirect Tax
Consultant or Financial
Auditor with focus on
Indirect Tax fraud
detection. Min Graduate,
preferably a CA.

Core Skills:
• Expert in Indirect Tax
– esp GST
• Knowledge of GST
Tax compliance & key
parameters
• Knowledge of
Financial frauds within
the Indirect tax system
• Ability to handle
numbers and detect
patterns
• Ability to work with
young data engineers &
data scientists – convert
business problem into
data problems
• Ability to work with
and extract meaningful
information from Tax
officers within regards
to Tax fraud strategies
and methods
Not
Applicable
Not Applicable
32 Assista
nt Vice
Presid
ent
(AVP),
Produc
t
Manag
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
• 10 to 14 years of
experience with
Bachelors/master’s in
engineering/Managemen
t/CA
• At least 3-4 years of
experience as a Product
Manager in the field of
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 122 of 225
Vol-2
er GSTN. Data Analytics
• Sound knowledge of
agile methodologies and
experience in managing
agile development of IT
Products
• Person should have
experience in designing
product with great
UI/UX and good
knowledge of ―Human-
centered design‖
• Strong Analytical,
decision-making and
creative problem-solving
skills
• Domain
Knowledge/Experience
in finance and Taxation
will be a plus
33 Assista
nt Vice
Presid
ent
(AVP),
Big
Data
Archit
ect
1 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Should have 10+ years
experience of working
on popular Hadoop
distribution platforms
like Apache, Cloudera,
HortonWorks etc.
► B.E/ B.Tech/ M.Tech
with at least 10+ years
of experience, 4 years as
a Data Architect of
which 3 years should be
as a Big Data Architect.
► Should have sound
knowledge of various
MDM and ELT/ETL
tools and data design.
► Should have prior
experience in handling
specialized and complex
architectural issues
involving applications
working on Data of
petabytes scale.
► Should have very
strong fundamentals of
data structures and
algorithms.
Not
Applicable
Not Applicable
34 Assista 2 L4,G5 As per the As per Selection Maximu As mentioned Not Not Market B/E./B.Tech/ME/M.Tec Not Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 123 of 225
Vol-2
nt Vice
Presid
ent
(AVP),
Softwa
re
Archit
ect
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
Committee
recommendation
s and with due
approval of
Chairman
m Age
Limit
below 39
years
in Column 11 Applicable Applicable Recruitment h/MCA in
Electronics/IT/Computer
Science or equivalent
years relevant
experience with min. 10
► Good experience in
developing massive
scale application in a
highly distributed
environment
► Min.8 years’
experience in hands on
development for
application using any
programming
language.
► Min 3 years in
developing internet scale
web facing consumer
oriented application in
high
concurrency
environment
► Certifications like
TOGAF 9.x are
desirable.
► Excellent
communication skills in
English, both written
and spoken
Applicable
35 Assista
nt Vice
Presid
ent
(AVP),
Data
Scienti
st
8 L4,G5 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman
Maximu
m Age
Limit
below 39
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► 8+ years experience
with Bachelors/Masters
in Computer Science/
Engineering/ Statistics/
Mathematics with at
least 2 years of
experience in analytics
and data sciences.
► Must have prior
experience in executing
statistical modelling,
machine learning and
Artificial Intelligence.
► Should be well
versed with at least two
of the following: R,
Python, SAS, Hive,
SQL, Pig, Spark, and
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 124 of 225
Vol-2
Hadoop.
► Prior experience in
working on at least 1
large scale projects
related to fraud
management/ risk
management systems in
BFSI sector will be
added advantage.
Prior experience in
handling projects related
to Indirect tax domain
will be a plus.
36 Senior
Manag
er
(SM),
Applic
ation
Suppor
t &
QA
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech/ BE/ MS
degree in IT / MCA
while MS/ MBA is
desirable with 9- 11
years of experience
► Minimum 2-4 years
of experience as a Tester
► Experience in
creating or developing
testing strategies for
custom application
development as well as
packaged application
implementation
► Experience in IT
Application testing,
working within the IT
development lifecycle
and automated testing
► Experience in
creation of test plans and
specifications and
production of test
scenarios and scripts
► Should have
experience in different
testing techniques like
Whitebox Testing,
Blackbox testing, Non-
functional testing,
Regression testing etc.,
► Experience in
executing the test cases
using any tools like
Rational Functional Test
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 125 of 225
Vol-2
Manager etc.,
Should have experience
in any one of the
industry standard testing
tools for automation of
testing wherever
possible.
37 Senior
Manag
er
(SM),
IT Ops
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Bachelors/Master in
Engineering or
Computer Applications
or relevant with 9-11
Years of Experience.
► Hands on experience
of 5 years with Data
Center Techologies
Network, Servers,
Storage and Security.
► Must be cloud
certified Professional
(AWS/Microsoft/Google
) anyone.
► CCNA
Trained/Certified
preferred.
► DevOps
Trained/Certified
preferred.
► Must be certified in
ITIL basic and
preferably be a
practitioner in Service
operations
► Knowledge of any
flavor of Unix/Unix
Based Systems and
applications
► Knowledge of system
administration and
Infrastructure
architecture design
principles
► Should have
experience in
troubleshooting issues
arising out of Network,
Systems or applications.
► Strong fundamentals
of OSI model and
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
TCP/IP stack on
Systems
► Experience on
handling OpenSource
Software systems like
OpenLdap, WebServers
(Apache, nGnix, etc)
► Experience of being
part of agile and
responsive team
consisting of
IT/Technology software
and hardware
professionals will be
beneficial
Experience of
implementing IT
specific systems and
solutions across IT
functions.
38 Senior
Manag
er
(SM),
Payroll
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Graduate/ Post-
graduate degree/diploma
in Finance with around
8- 12 Years of
experience in Finance
domain with at least 3- 4
years of managing
payroll team in a large
private/ public sector
organization.
Knowledge of
automated financial and
accounting reporting
systems is preferred.
Not
Applicable
Not Applicable
39 Senior
Manag
er
(SM),
Financ
e
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Degree in Finance
with around 8- 12 years
of experience in a
Finance & Accounting
role in a large private/
public sector
organization
► In depth
understanding of
financial statements,
accounting, budgeting,
cost control principles
and standards
► Experience of
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 127 of 225
Vol-2
preparing financial
reports, statements and
projections, managing
expenditure and cash
management
Experience of creation
of documentation
pertinent to taxation,
investment & budgeting
and financial statements.
40 Senior
Manag
er
(SM),
Legal
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Bachelor of Law
(LLB)/ Any equivalent
degree/diploma with
around 8- 12 years of
relevant experience
► Knowledge of
various relevant statutes,
Government policies,
regulations and
directives, and company
policies and guidelines
► Excellent knowledge
of all legal aspects
relating to various laws-
Labor Laws etc., and the
procedures in respect of
Civil and Criminal
Matters
Drafting skills for legal
documents,
Memorandum of
Settlements,
Memorandum of
Understanding, Power of
Attorneys etc.
Not
Applicable
Not Applicable
41 Senior
Manag
er
(SM),
Data
Analys
is &
Operat
ions
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Graduate in
Electronics/IT/Computer
Science/Physics/Comme
rce or equivalent with
min. 7 years’ relevant
experience
► Good experience
with Excel, MySQL,
PHP/Python
► Good experience in
Data Visualization using
Excel, PHP or Python
► Good Knowledge in
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Data Cubes, Data
analysis for decision
making
Min. 2 years of
experience in handling
terabyte scale &
complex data sets.
42 Senior
Manag
er
(Advis
or),
Corpor
ate
Cumm
unicati
on
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Around 10 - 15 years of
experience in social
media and digital
branding management
functions in the private
sector or similar
experience in the
Information and Public
Relations Departments
of Central and State
Government/PSUs.
A proven track record in
developing and
implementing
Communications and
Social Media strategies
(Proactive and Reactive)
while working with a
diverse range of
stakeholders within a
large, complex and
issues-rich environment.
Demonstrated ability to
use social media as a
communications tool.
Experience in the
production of Social
media content and
digital landscapes.
Highly proactive and
creative approach to
sourcing content and
strong attention to detail.
Proven ability to work
under pressure, prioritise
and meet competing
deadlines.
Proven ability to deliver
effective PR activities
across a variety of
platforms and a track
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
record in driving
proactive social media
coverage and responding
to emerging and crisis
media situations and
acting as a corporate
spokesperson.
Outstanding written,
verbal and interpersonal
communication skills
and ability to
communicate with
influence and clarity.
Stakeholder
management, liaison and
engagement skills.
Education and
Experience of working
in Information
Technology
environment besides
media and
communications would
be preferable.
Note .- The Maximum
age-limit for
appointment from the
market shall be not
exceeding Thirty Five
years as on the closing
date of receipt of
applications.
43 Senior
Manag
er
(SM),
PR &
Media
Adviso
r
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Graduate in English
Literature/ Mass
communication
► Around 8- 12 years
of experience in
Corporate
Communications/ PR
Function/Marketing
Function in large Indian
organization or in a
Client Servicing role in
a leading
Communications agency
► Extensive knowledge
of the principles,
practices and techniques
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
of oral and written
communications
► Strong editing and
proofreading skills
► Experience of
working in a Start Up
with more than 100
people in Media/ Event
Management or
Advertising is preferred
►Design and launch
internal communication
initiatives such as
newsletters, web casts,
communication network
meetings, etc. to
involve, engage and
inform the internal
stakeholders
► Develop, manage and
update the content on
the company website
and Intranet to ensure
that it is useful for the
stakeholders, content is
up-to-date, accurate and
consistent with the
branding guidelines
44 Senior
Manag
er
(SM),
Admin
istratio
n
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Any Graduate/ Post
Graduate degree /
diploma (Full time/Part
Time) with 10- 14 years
of experience in admin
department in a large
private/ public sector
organization
Understanding of
contractual matters,
documentation etc
Knowledge of
administration services
and alternative agencies
/ service providers;
Statutory compliances
applicable to
Administration function;
vendor evaluation and
selection and vendor
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
database management.
45 Senior
Manag
er
(SM),
Learni
ng &
Develo
pment
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► MBA/ PG Diploma
in Human Resource /
Any similar degree or
diploma in HR with
around 8- 12 years of
experience across
various domains of the
HR function
At least 3- 4 years’
experience in leadership
roles in designing and
conducting L&D
interventions in large
organizations
Not
Applicable
Not Applicable
46 Senior
Manag
er
(SM),
HR
Operat
ions
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Degree or diploma in
HR with around 8- 12
years of experience
across various domains
of the HR functions
namely HR Operations,
employee life-cycle
management, employee
joining and exit
management,
compensation benefits,
annual increment
exercise, employee
service, HRMS
management, HR MIS
and analytics.
Not
Applicable
Not Applicable
47 Senior
Manag
er
(SM),
Recrui
tment
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► MBA/ PG Diploma
in Human Resources /
Any similar degree or
diploma in HR with 8-
12 years of experience
across various domains
of the HR function in a
large private/ public
sector organization
► At least 4- 5 years’
experience in leadership
roles in recruitment
Experience of designing
recruitment strategies
and conducting senior
level interviews in large
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
organizations.
48 Senior
Manag
er
(SM),
Strateg
y &
MIS
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► PG in Economics/
Statistics/ Mathematics
with 8- 12 years of
experience in working in
Service Industries like
Financial services, e-
Governance Services,
Banking, IT
Consultancy services,
Business Analyst in IT
Companies.
► Exposure to Business
Intelligence for at least 5
years
At least 2 years of
experience in data
Management, data
cleaning and
normalisation, Statistical
Analysis and Data
modelling.
Not
Applicable
Not Applicable
49 Senior
Manag
er
(SM),
Storag
e &
Backu
p
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
*Should have minimum
7-11 years working
experience as field
backup engineer
installing backup
software (Hitachi Data
Protection Suite,
Powered by
CommVault) and Tape
Libraries (Quantum) at
different projects. This
job moreover is a co-
ordination job to achieve
the below objectives
with the Managed
Service Provider
*Certification in
Hitachi/Commvault
backup platforms will be
preferred.
*Support the project
management functions
for setting up backup
infrastructure using
Hitachi and Quantum
solutions and do the co-
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
ordination for setting up
offsite and onsite back
up of data across sites to
ensure zero data loss and
faultless restoration.
*Monitoring of all
backups. Incident
management for all
issues and backup
failure.
*Good understanding on
VTL configurations and
backup techniques.
Handle the complete
suite of Hitachi VTL
products, other platform
backup's products
available at Data Centre
including tape libraries
from Quantum and other
vendors.
*The resource would
support the BoM review
of the technical bid and
Validate products from
multiple OEMs, their
compliances,
completeness and
sufficiency with respect
to GSTN tender
requirements.
*Change requirements
review and best practises
implementation.
*Identify gaps, vis--vis
GSTN tender, ensure all
components are
identified for integration
with existing
infrastructure.
50 Senior
Manag
er
(SM),
Billing
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Thorough knowledge
of system of billing and
collection of dues from
State Governments /
UTs and Central
Government;
► Thorough knowledge
of accountal of earnings
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
GSTN. and expenses including
payment of applicable
taxes;
► Knowledge of
banking transactions;
► Ability to
conceptualize work
flow, develop plans and
implementation thereof;
► Knowledge of
preparation of invoices /
Proforma Invoices to
various stake holders;
and
► Preparation and
analysis of accounts
receivable on monthly
basis
The candidates having
knowledge of procedure
of sanction of
expenditure by
Government Authorities
and knowledge of
Government accountal
system will be preferred

Qualification/Experienc
e
For Central/State
Government Employees:
Candidate should be
AO/Sr. AO with 3 years
of experience; and
For Private Sector
Professionals: Candidate
should be CA/ICWA
with 10 years of post-
qualification experience.
51 Senior
Manag
er
(SM),
UI/UX
Expert
2 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► BE/ B.Tech/ MCA/
MSc (IT) B. Design, M.
Design, PG diploma in
Web Design from
Government recognized
institutions.
► Should have a total of
7-9 years experience
with 3-4 years of
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
experience in UI/UX,
Data Visualization in
designing for IT/
software development /
IT System projects /
Website Development /
Mobile Application
Development.
► Knowledge of
wireframe tools
► Web application
development experience
in any 2 of the following
HTML5, CSS3, .LESS,
Angular 4+, Python,
Django, Flask, Java
Script
► Clear understanding
of the communication
between the frontend
layer and the backend
layer
► Experience of
working with flexbox
design model is a plus
► Strong analytical,
problem solving, and
programming ability
► Strong oral and
written communication
skills
► Up-to-date
knowledge of design
software like Adobe
Illustrator and
Photoshop
► Proven work
experience as a UI/UX
Designer or similar role
► Portfolio of design
projects
► Knowledge of
wireframe tools (e.g.
Wireframe.cc and
InVision, Adobe Suite
etc.)
► Up-to-date
knowledge of design
Agenda for 43rd GSTCM Volume 2
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Vol-2
software like Adobe
Illustrator and
Photoshop
► Team spirit; strong
communication skills to
collaborate with various
stakeholders
► Good time-
management skills
► Good to have
understanding of
HTML-5 and
Javascript/JSP
52 Senior
Manag
er
(Admn
.)
1 L4,G6 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 35
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Any Graduate/ Post
Graduate degree /
diploma (Full time/Part
Time) with 8- 12 years
of experience in admin
department in a large
private/ public sector
organization OR
► Hands on experience
of administration
services (like travel,
concierges, event
management etc) and
managing day to day
working of alternative
agencies / service
providers
► Persons retired from
the Government who
have hands on working
experience in the rules
and regulations of
Government
Organisations would be
preferred.
Not
Applicable
Not Applicable
53 Manag
er
(Legal
)
2 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Ø BALLB/LLB/LLM
with 3-5 years of
experience in managing
litigation matters
Ø Strong drafting skills
and processing of
matters on file.
Ø Strong verbal and
written communication
skills.
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 137 of 225
Vol-2
Ø Through knowledge
of Court procedures and
related Laws.
Ø Experience of
handling litigation
matters pertaining to
Government
Departments/PSUs/Auto
nomous
Bodies/Authorities.
Ø IT Skills: Proficiency
in MS Word, Excel and
Power Point.
54 Manag
er
(Mgr)
Project
Manag
ement
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Ø Bachelors/Masters in
IT/ECE or Masters /
Bachelors in Computer
Applications or
equivalent degree
Ø Should have excellent
communication skills
Ø Should have good
working knowledge of
Advanced Excel (Pivot
Table, Charts and
Dashboard), Power
Point and Word.
Ø Well-versed in VBA-
MACRO for excel
automation
Ø He / She will be
playing the role of
project manager.
Not
Applicable
Not Applicable
55 Manag
er
(Mgr),
Qualit
y
Engine
ering
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B.Tech/ BE / MCA /
M.Sc. (Computer) or
equivalent Degree with
5-7 years of experience
► Hands on minimum
2-3 years of experience
as a functional Tester for
ETL/Data warehouse for
OLTP/OLAP
applications
► Experience in
creating or developing
testing strategies for
custom application
development as well as
packaged application
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 138 of 225
Vol-2
implementation
► Experience in
creation of test plans and
specifications and
production of test
scenarios and scripts
► Should have
experience in different
testing techniques like
White box Testing,
Black box testing, Non-
functional testing,
Regression testing etc.,
► Understanding of
core Business
Intelligence/ Data
warehousing
technology:
RDBMS/Big Data, Web,
Client/ Server, OLAP,
SQL etc.
56 Manag
er
(Mgr),
Softwa
re
Develo
pment
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B. Tech/ B.E. / MCA
with min. 7-9 years of
IT experience of which
4-5 years should be in
software development
and maintenance at
functional cum technical
levels
► Should be able to
design IT Applications
► Strong experience in
object oriented
programming using any
of the platforms
(Java/Phythomn/
Angular JS/ .Net/PHP )
is a must.
► Hands on experience
in open source
technologies,
deployment
methodologies and
frameworks / Code
Review

► Knowledge of
developer testing using
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 139 of 225
Vol-2
jUNIT/TestNG
framework.

► Should have worked
on any RDBMS / Big
Data Technologies

► Expert knowledge
and demonstrated
experience in software
development throughout
the software
development lifecycle
► Experience in
developing
medium/large IT
software project
57 Manag
er
(Mgr),
IT
Operat
ions
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Bachelors/Master in
Engineering or
Computer Applications
or relevant with 9-11
Years of Experience.
► Hands on experience
of 5 years with Data
Center Techologies
Network, Servers,
Storage and Security.
► Must be cloud
certified Professional
(AWS/Microsoft/Google
) anyone.
► CCNA
Trained/Certified
preferred.
► DevOps
Trained/Certified
preferred.
► Must be certified in
ITIL basic and
preferably be a
practitioner in Service
operations
► Knowledge of any
flavor of Unix/Unix
Based Systems and
applications
► Knowledge of system
administration and
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 140 of 225
Vol-2
Infrastructure
architecture design
principles
► Should have
experience in
troubleshooting issues
arising out of Network,
Systems or applications.
► Strong fundamentals
of OSI model and
TCP/IP stack on
Systems
► Experience on
handling OpenSource
Software systems like
OpenLdap, WebServers
(Apache, nGnix, etc)
► Experience of being
part of agile and
responsive team
consisting of
IT/Technology software
and hardware
professionals will be
benefit
Experience of
implementing IT
specific systems and
solutions across IT
functions
58 Manag
er
(Mgr),
Netwo
rk &
Securit
y
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
• Science Graduate /
B.E./ B.Tech / BCA /
MCA professional with
a minimum of 4 years
experience in Network
and IT Security.
• Preferably with
certifications in OEM’s
network devices /
technologies.
• Thorough hands on
experience on at least 2
Security technologies
such as NGFW, SIEM,
SOC monitoring etc.
• Overall experience of
7+ years in this relevant
role.
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 141 of 225
Vol-2

Should be able to:
• Mentor technical staff
(System integrator/
within GSTN/ of OEM).
• Ability to adapt and
follow the processes and
guidelines
• Possess an impeccable
work ethic and a high
degree of integrity
• Good Analytical &
Problem Solving skills.
59 Manag
er
(Mgr),
Procur
ement
&
Contra
cts
2 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduate in any
discipline with around 3-
7 years of experience in
procurement and
contracts
functions in any medium
to large organisation
especially service
industries like financial
services,
e-Governance services,
IT Consultancy services
etc. and experience of
Logistics and Supply
Chain Management.
► Preference would be
given to candidates who
have rich experience of
procurement function in
Government
companies/PSUs.
► Thorough
knowledge and exposure
to procurement
procedures and rules
followed by
Government
companies/PSUs and
also of GFRs, CVC
Guidelines etc.
► Exposure and
knowledge of processes
of RFP, EOI,
Competitive Bidding,
Rate Contracts,
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 142 of 225
Vol-2
Reverse Auction,
Government e-
Procurement, GEM,
Vendor Development
etc. will be desirable.
► Good knowledge of
legal nuances associated
with Contract
Management and
Vendor
Management.
► Thorough
knowledge and
experience of various
methods of procurement
and expertise in tender
preparation and
evaluation of bids
through various
established
methodologies including
QCBS.
► Good Knowledge of
statutory compliances
applicable to the
procurement function.
► Strong
communication, drafting
and presentation skills.
60 Manag
er
(Mgr),
PS to
Chair
man
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
To be decided by
Chairman.
Not
Applicable
Not Applicable
61 Manag
er
(Mgr),
Tax
Payer
Profili
ng
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduation Degree from
a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Not
Applicable
Not Applicable
62 Manag 1 L5,G7 As per the As per Selection Maximu As mentioned Not Not Market Graduation Degree from Not Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
er
(Mgr),
Backe
nd
Servic
es
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
m Age
Limit 33
years
in Column 11 Applicable Applicable Recruitment a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Applicable
63 Manag
er
(Mgr),
PA to
CEO
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduation Degree from
a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Not
Applicable
Not Applicable
64 Manag
er
(Mgr),
Netwo
rk
Securit
y
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
• B.E./ B.Tech
professional with 6 years
of experience.
• Preferably
certifications in OEM’s
network devices /
technologies.
Hands on experience of
at least 3 years on core
network devices such as
CISCO routers,
Switches and
terminologies like BGP,
OSPF, EIGRP, MPLS
and Switching
technologies like VTP,
VLAN, STP, HSRP etc.
Hands on experience on
and Certification in
CCNA or equivalent.
CCNP certificate
holders will get added
advantage
Hands on knowledge in
Cisco Nexus and ASR
line of products and its
configurations
Hands on knowledge in
HP Network
(Routers/Switches)
products and its
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
configurations, Global
and Server load
balancers, WAN
optimisers, VPN product
configurations
Knowledge on Check
point, Paulo Alto,
Fortigate firewall
product configurations
would be added
advantage
Working knowledge of
IPSEC with
implementation
experience.
Communicate technical
issues to technical and
non-technical audience
65 Manag
er
(Mgr),
Syste
m
Admin
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► 5 to 7 Years of
experience.
Bachelors/Masters/MCA
in Engineering with 3-4
years of experience as a
System Administrator.
► Expert knowledge of
Linux/Unix based OS.
► Should be
comfortable finding
his/her way around a
Linux/Unix OS. Very
comfortable with /proc
and /sys pseudo
filesystems. Deep
understanding of how
and OS/Computer
Program works.
► Experience with
automation related
standard and protocols
like PXE, IPMI and
UEFI.
► Experience working
on config management
tools like Puppet, Chef,
Ansible, Salt etc.
► Exceptional
troubleshooting skills on
all the OSI layers.
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
► Experience on Server
build automation tools
like Foreman, etc.
► Hands on knowledge
of iptables/ipfilter, DNS,
DHCP, LDAP
► Expert level skills on
Shell and one high level
language like
Python/Ruby.
66 Manag
er
(Mgr),
Databa
se
Admin
1 L5,G7 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 33
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Bachelors/Masters in
Engineering with 3-4
years of experience as a
Database Administrator
► Knowledge of
'relational database
management systems'
(RDBMS), 'object
oriented database
management systems'
(OODBMS) and XML
database management
systems
► Experience with
database software / web
applications
► Excellent
troubleshooting skills on
Linux Environment
► Python/Shell
scripting skills to
automate day to day
tasks
► Should be very
comfortable in MySQL
replication concepts and
MySQL clusters
► Knowledge of
NoSQL databases would
be a plus.
Not
Applicable
Not Applicable
67 Assista
nt
Manag
er
(AM),
SVP
Strateg
y
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduation Degree from
a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
GSTN.
68 Assista
nt
Manag
er
(AM),
Compl
iance
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
The candidate should
possess Company
Secretary and LLB
Qualifications with 5- 7
Years of experience.
Hands-on experience in
ensuring compliance to
provisions of companies
Act and related rules,
other laws and
regulations as may be
applicable to the
company.
Experience in
intereacting with the
compliance auditors.
Not
Applicable
Not Applicable
69 Assista
nt
Manag
er
(AM),
Financ
e
2 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
B.Com/M.Com with
around 3 - 7 years of
experience in a Finance
& Accounting role in a
large private/ public
sector organization.
► In depth
understanding of
financial statements,
accounting, budgeting,
cost control principles
and standards.
► Experience of
preparing financial
reports, statements and
projections, managing
expenditure and cash
management.
Experience of creation
of documentation
pertinent to taxation,
investment & budgeting
and financial statements.
Not
Applicable
Not Applicable
70 Assista
nt
Manag
er
(AM),
Accou
nts
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► CA or equivalent
Degree in Accounts with
around 3 - 7 years of
experience in a Finance
& Accounting role in a
large private/ public
sector organization.
► In depth
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
GSTN. understanding of
financial statements,
accounting, budgeting,
cost control principles
and standards.
► Experience of
preparing financial
reports, statements and
projections, managing
expenditure and cash
management.
Experience of creation
of documentation
pertinent to taxation,
investment & budgeting
and financial statements.
71 Assista
nt
Manag
er
(AM),
Chair
man's
Office
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
To be decided by
Chairman.
Not
Applicable
Not Applicable
72 Assista
nt
Manag
er
(AM),
Billing
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduation Degree from
a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Not
Applicable
Not Applicable
73 Assista
nt
Manag
er
(AM),
SVP
IT
Securit
y
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduation Degree from
a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Not
Applicable
Not Applicable
74 Assista
nt
Manag
er
(AM),
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
As per Selection
Committee
recommendation
s and with due
approval of
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► Graduate / MBA with
around 3-4 years of
experience in
Procurement and
contracts function across
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Procur
ement
&
Contra
cts
with candidate
and approved
by CEO,
GSTN.
Chairman,
GSTN.
Service Industries like
Financial services, e-
Governance Services,
Banking, IT
Consultancy services,
Business Analyst in IT
Companies.
► Experience should be
in tender preparation and
evaluations of bids
including vendor
management.
► Understanding of
procurement process
followed in Government
organisations / PSU’s
► Knowledge of
statutory compliances
applicable to
procurement function
75 Assista
nt
Manag
er
(AM)
to
functio
nal
heads
and
OSD
to
CEO,
4 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Graduation Degree from
a recognised institution
with a minimum work
experience of 2 years.
As per requirement of
the Reporting Manager.
Not
Applicable
Not Applicable
76 Assista
nt
Manag
er
(AM),
Softwa
re
Develo
pment
1 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B. Tech/ B.E. / MCA
with min. 4-6 years of
IT experience in
software development
and maintenance at
functional cum technical
levels
► Minimum 2 years of
experience as an
individual contributor
► Strong experience in
object oriented
programming using any
of the platforms
(Java/.Net/PHP) is a
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
Page 149 of 225
Vol-2
must.
► Hands on experience
in open source
technologies,
deployment
methodologies and
frameworks.
► Knowledge of
developer testing using
jUNIT/TestNG
framework.
► Expert knowledge
and demonstrated
experience in software
development throughout
the software
development lifecycle
Experience in
developing
medium/large IT
software project
77 Assista
nt
Manag
er
(AM),
Dev
Ops
2 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
Basic Qualifications:
Experience of 3-6 years
as a DevOps Engineer.
Graduate within STEM
field.

Core Skills:
- Experience in Linux
Systems administration
- Experience in
managing public cloud,
specifically AWS
- Experience in leading
End-to-end DevOps
projects with modern
tools encompassing both
Applications and
Infrastructure
- Basic knowledge of
scripting and automation
using languages like
Bash, Python,
PowerShell
- Basic Knowledge of CI
tools like Jenkins and
building end to end
CI/CD pipelines for
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
projects
- Good to have CM tools
of following : Ansible,
Chef, Saltstack
- Experience in
monitoring/ analytics
tools like Nagios/
DataDog and logging
tools like LogStash/
SumoLogic
- Knowledge on
managing version
control tool like Git
- Good analytical,
troubleshooting and
debugging skills.
- Good to have
experience/knowledge
on K8 ecosystem
78 Assista
nt
Manag
er
(AM),
Develo
per
2 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B. Tech/ B.E. / MCA
Knowledge in software
development.
► Must have
Knowledge in Python
and knowledge of Java
will be an advantage.
► Must have
knowledge on T-
SQL(Transaction SQL)
► Familiarity with
event-driven
programming in
Python/Java
► Strong understanding
of programming
concept, data structure
and algorithms
► Knowledge of web
services, micro services,
API
► Knowledge of
databases, SQL/NoSQL
► Knowledge of
statistics/machine
learning packages such
as scikit-learn, numpy,
pandas, Tensor flow etc.
► Strong knowledge in
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Python, with knowledge
of web framework such
as Django, Flask, Spring
/Strut etc. depending
technology stack.
79 Assista
nt
Manag
er
(AM),
Qualit
y
Engine
er
2 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman,
GSTN.
Maximu
m Age
Limit 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B. Tech/ B.E. / MCA
with min. 5-7 years of
experience in software
development and
maintenance at
functional cum technical
levels

► Minimum 2 years of
experience as an
individual contributor

► Strong experience in
object oriented
programming using any
of the platforms
(Java/Phythomn/
Angular JS/ .Net/PHP)
is a must.
► Hands on experience
in open source
technologies,
deployment
methodologies and
frameworks.

► Knowledge of
developer testing using
jUNIT/TestNG
framework.

► Expert knowledge
and demonstrated
experience in software
development throughout
the software
development lifecycle
► Experience in
developing
medium/large IT
software project
Not
Applicable
Not Applicable
80 Assista
nt
5 L5,G8 As per the
prevailing
As per Selection
Committee
Maximu
m Age
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
B.Tech/Masters in
Engineering with the
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Manag
er
(AM),
Softwa
re
(from
Premiu
m
Institut
es)
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
recommendation
s and with due
approval of
Chairman/CEO
Limit
below 30
years
knowledge of Dev Ops
► knowledge of
Linux/Unix based OS.
Should be comfortable
finding his/her way
around a Linux/Unix
OS. Very comfortable
with /proc and /sys
pseudo file
systems. Deep
understanding of how
and OS/Computer
Program works
► Experience with
automation related
standard and protocols
like PXE, IPMI and
UEFI
► Knowledge with
relational DB (Postgres,
MySQL, etc.), NoSQL
DB (Redis,
Cassandra, etc.) and
Time Series DB
(OpenTSTB, Kairo,
DalmatinerDB etc.)
► Knowledge of Large
scale monitoring
infrastructure (Icinga,
Prometheus etc.), Log
aggregators like (flume,
Fluentd, Splunk,
logstash) and
ElasticSearch/Splunk
► Knowledge on config
management tools like
Puppet, Chef, Ansible,
Salt etc.
► Should be able to
read tcpdump, strace/
dtrace/ ltrace output,
crash dumps like the
back of his hand
► Exceptional
troubleshooting skills on
all the OSI layers. If not,
should be able to
learn it in a few hours
Agenda for 43rd GSTCM Volume 2
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Vol-2

► Expert level skills on
Shell and one high level
language like
Python/Ruby/C
► Should have built at
least a basic fronted
using
Flask/Django/Rails
framework
81 Assista
nt
Manag
er
(AM),
Softwa
re
Develo
pment
3 L5,G8 As per the
prevailing
market rate &
to be
negotiated
with candidate
and approved
by CEO,
GSTN.
As per Selection
Committee
recommendation
s and with due
approval of
Chairman/CEO
Maximu
m Age
Limit
below 30
years
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Market
Recruitment
► B. Tech/ B.E. / MCA
with min. 5-7 years of
experience in software
development and
maintenance at
functional cum technical
levels
► Minimum 2 years of
experience as an
individual contributor
► Strong experience in
object oriented
programming using any
of the platforms
(Java/Phythomn/
Angular JS/ .Net/PHP)
is a must.
► Hands on experience
in open source
technologies,
deployment
methodologies and
frameworks.
► Knowledge of
developer testing using
jUNIT/TestNG
framework.
► Expert knowledge
and demonstrated
experience in software
development throughout
the software
development lifecycle
► Experience in
developing
medium/large IT
software project
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Schedule - IV
Sl.
No.
Name of
post.
Number
of post.
Classification.
Deputation/Market
Pay
(Outsourced)
Whether
selection
post or
non-
selection
post and
procedure
thereof.
Age-limit
for direct
recruits
from
market.
Educational
and other
qualifications
required for
direct
recruits.
Whether age
and
educational
qualifications
prescribed
for direct
recruits will
apply in the
case of
promotees.
Period of
probation,
if any.
Method of
recruitment
whether by
direct
recruitment
or by
promotion
or by
deputation
or
absorption
and
percentage
of the
vacancies
to be filled
by various
methods.
In case of
recruitment by
promotion or
deputation or
absorption, grade
from which
promotion or
deputation or
absorption is to be
made.
(Market
Recruitment)
If a
Departmental
Promotion
Committee
exists what is
its
composition.
Circumstances
in which
Union Public
Service
Commission is
to be
consulted in
making
recruitment.
1 2 3 4 5 6 7 8 9 10 11 12 13
1 Secretarial
Support
15 Outsourced Rs. 25,000/-
to 50,000/-
per month
Not
Applicable
Not
Applicable
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Outsourced Any
Graduate/Diploma
with atleast 2 years
of experience.
Good working
knowledge of
Computers (MS
Office, Excel,
Word and
Powerpoint).
Knowledge of
Shorthand and
Typing will be
preferred. Good
communication
skills (English and
Hindi).
Not
Applicable
Not Applicable
2 Technical
Support
15 Outsourced Rs. 25,000/-
to 50,000/-
per month
Not
Applicable
Not
Applicable
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Outsourced Any
Graduate/Diploma
with atleast 3 years
of experience.
Good working
knowledge of
Computers (MS
Office, Excel,
Not
Applicable
Not Applicable
Agenda for 43rd GSTCM Volume 2
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Vol-2
Word and
Powerpoint) and
use of IT equipment
support or should
have experience of
software
development and
support. Good
communication
skills (English and
Hindi).
3 M.T.S. 15 Outsourced As per
minimum
wages of
State
Government.
Not
Applicable
Not
Applicable
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Outsourced Matriculate with
one year of
experience of
multitasking.
Not
Applicable
Not Applicable
4 Cleaning,
Security
&
Cafeteria
Services
As per
need
Outsourced As per
minimum
wages of
State
Government.
Not
Applicable
Not
Applicable
As mentioned
in Column 11
Not
Applicable
Not
Applicable
Outsourced
Note: The services of Secretarial Support, Technical Support, MTS, Cleaning, Security & Cafeteria Services are fully outsourced to agencies and the number of Secretarial Support, Technical Support and
MTS are indicative of the size of manpower required from such outsourced services.


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Annexure-III


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Annexure-IV




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Annexure-V







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Annexure-VI


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Agenda for 43rd GSTCM Volume 2
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Agenda for 43rd GSTCM Volume 2
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Annexure-VII

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Agenda Item 9A – Issues recommended by the Law Committee for the consideration of the GST
Council
Agenda Item 9A (i) - Rationalization of late fee imposed under section 47 of the CGST Act
Reference is drawn to sub-section (1) of section 47 of the Central Goods and Services Tax
Act, 2017 (hereinafter referred to as the ―CGST Act‖) which provides for levy of late fee for failure to
file returns by the due date. The same is reproduced hereunder:
47. Levy of late fee- (1) Any registered person who fails to furnish the details of outward or
inward supplies required under section 37 or section 38 or returns required under section 39
or section 45 by the due date shall pay a late fee of one hundred rupees for every day during
which such failure continues subject to a maximum amount of five thousand rupees.
Similarly, late fee is levied under corresponding provision of the SGST/UTGST Acts.
Accordingly, a taxpayer is liable to pay late fee of Rs. 200 per day (subject to maximum of Rs 10,000)
for failure to furnish returns such as FORM GSTR-1, FORM GSTR-3B, FORM GSTR-4 and
FORM GSTR-10.
2. In this context, reference is drawn to the following notifications where the late fee payable
under section 47 for delay in furnishing FORM GSTR-1, FORM GSTR-3B and FORM GSTR-4
were reduced:
S.No. Notification Remarks
1 76/2018-CT,
dt. 31.12.2018
Late fee reduced to twenty rupees per day (Rs. 10/- under CGST Act
plus Rs 10/- under SGST Act) for tax payers having nil tax liability and
fifty rupees per day (Rs. 25/- under CGST Act plus Rs 25/- under
SGST Act) for others; for GSTR-3B
2 4/2018-CT, dt.
23.01.2018
Late fee reduced to twenty rupees per day (Rs. 10/- under CGST Act
plus Rs 10/- under SGST Act) for persons having NIL outward
supplies and fifty rupees per day (Rs. 25/- under CGST Act plus Rs
25/- under SGST Act) for others; for GSTR-1
3 73/2017-CT,
dt. 29.12.2018
Late fee reduced to twenty rupees per day (Rs. 10/- under CGST Act
plus Rs 10/- under SGST Act) for taxpayers having nil tax liability and
fifty rupees per day (Rs. 25/- under CGST Act plus Rs 25/- under
SGST Act) for others; for GSTR-4

It may be noted that vide above referred notifications, the late fee payable per day has been reduced.
However, it has not reduced the upper cap of late fee which still remains as Rs. 10,000/- per return.
3.1. A number of representations have been received from various trade bodies and associations from
all over the country highlighting the problem being faced by small taxpayers, having nil or very small
tax liability, who are forced to pay a high amount of late fee (even higher than their tax liability), due
to the higher amount of capping of the late fee. Requests/ suggestions have been made to rationalize
the late fee by correlating the same with the turnover/ tax liability of the taxpayers. In view of this, it
is pertinent to analyze the impact of late fee on businesses with varied turnover. Accordingly, data of
the late fee collected, turnover wise, has been called from GSTN. The late fee collected vis-à-vis
turnover for the FY 2019-20 is tabulated as below:
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Based on PAN level AATO of 2019-20 (Rs. in crores)


3.2 The perusal of the above table appears to indicate the following:
a. As observed from column no. 9, the taxpayers having less AATO, who have furnished the
return late, have on an average paid a larger proportion of late fee as percentage of their
cash GST liability. For taxpayers having AATO upto Rs 1.5 crore, this percentage comes
to as high as 12.1%, whereas for taxpayers above AATO of Rs 5 crore, the same is only
0.36%.
b. As observed from column no. 10, 75% of total late fee is collected from taxpayers having
AATO upto Rs 1.5 crores, whereas perusal of column no. 5 shows that total tax liability
of such taxpayers having AATO upto Rs 1.5 crore, and filing returns late, was only
10.59% of the total liability for the returns filed late.
c. It appears from the above that in respect of small taxpayers, the burden of late fee is much
higher, not commensurate to their turnover, and in some cases, it would also be more than
the tax amount itself. This may become a major deterrent for such taxpayers in filing their
due returns, due to inability to pay such high late fee, much higher than their tax liabilities
itself.
d. As such, even the taxpayers filing nil returns are subjected to the same capping of late fee
as those with much higher liabilities to declare. This has been a constant grievance of
taxpayers as causing huge strain on small taxpayers.
4. It may be pertinent to mention here that in the income tax, the provision of late fee is linked to
the income of the person and is not a flat rate of late fee for all the return filers. The late fee is capped
at Rs 1000 for persons having income less than Rs 5 lakhs and is Rs. 5000/Rs.10,000 in case of
others.
Turnover
(1)
Total no.
of Returns
filed late
(2)
%age
out of
total
returns
filed late
(3)
Liability
involved in
returns
filed late
(4)
%age
out of
the
total
liability
in
returns
filed
late
(5)
Paid by
ITC
(6)
Paid by
Cash
(7)
Late fee
paid
(8)
Late
fee vis-
a-vis
cash
liability
(9)
%age
out of
total
late fee
(10)
Upto 1.50
Cr. 1,87,24,079 75.75% 76,975.49 10.59% 55,144.12 21,831.36 2,641.03

12.1% 75.38%
1.5 to
5.00 Cr. 33,77,212 13.66% 93,510.72 12.87% 74,391.74 19,118.99 501.00

2.6% 14.30%
5cr_above 26,16,199 10.58% 5,56,202.59 76.54% 4,56,603.88 99,598.70 361.73

0.36% 10.32%
Grand
Total 2,47,17,490

7,26,689 5,86,140 1,40,549 3,504

2.5%

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5.1. Accordingly, it is felt that there is a need to rationalize the maximum late fee under section 47
of the CGST Act also by linking it with the turnover of the taxpayer. For simplicity of
implementation, we may consider AATO of preceding financial year as the criteria for capping the
late fee levied under section 47. Besides, there is a need to give a differential treatment to taxpayers
having nil tax liability in GSTR-3B/4 or nil outward supplies in GSTR-1, regarding capping of late
fee. In any case, the taxpayers will still have sufficient incentive to file returns timely as delay in
filing returns also has interest repercussions. It is, therefore, proposed that the late fee for delay in
furnishing of FORM GSTR-3B and FORM GSTR-1 may be capped, per return, as below:
(i) For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late
fee may be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST), irrespective of the AATO.
(ii) For other taxpayers:
a. For taxpayers having AATO in preceding year upto Rs 1.5 crore, late fee may be
capped to a maximum of Rs 2000 (1000 CGST+1000 SGST);
b. For taxpayers having AATO in preceding year between Rs 1.5 crore to Rs 5 crore,
late fee may be capped to a maximum of Rs 5000 (2500 CGST+2500 SGST);
c. For taxpayers having AATO in preceding year above Rs 5 crores, late fee may be
capped to a maximum of Rs 10000 (5000 CGST+5000 SGST).
5.2. The late fee under section 47 for delay in furnishing FORM GSTR-4 may also be capped to
Rs 500 (Rs 250 CGST + Rs 250 SGST), if tax liability is nil in the return, and Rs 2000 (Rs 1000
CGST + Rs 1000 SGST) for other taxpayers, as their turnover is also upto Rs 1.5 crores.
5.3 The Law Committee has also deliberated on rationalization of late fee for FORM GSTR-7.
Law Committee observed that the late fee payable for delayed furnishing of return in FORM GSTR 7
by a registered person required to deduct tax at source in terms of the provisions of section 51 of the
CGST/SGST Act as required under sub-section (3) of section 39 has remained to be Rs.200/- per day
subject to a maximum of Rs.10, 000/-. Accordingly, the Law Committee recommended rationalization
of late fee for FORM GSTR-7 also as below:
a. Late fee payable for delayed furnishing of FORM GSTR-7 may be reduced to Rs.50/- per
day (Rs. 25/- under the CGST Act plus Rs 25/- under the SGST Act)
b. The maximum late fee for delayed furnishing of FORM GSTR-7 may be capped to a
maximum of Rs 2000/- (Rs. 1, 000/- under the CGST Act plus Rs 1, 000/- under the SGST
Act)
6. The matter was deliberated in the Law Committee in its meeting dated 16.04.2021 and
12.05.2021 and it has recommended the aforementioned proposal to be made applicable for
prospective tax periods.
7. Accordingly, the issue is placed before the GST Council for deliberation and approval.

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Agenda Item 9A (ii) - Annual Return for Financial Year 2020-21
Based on the recommendations of the Council, vide Notification No. 56/2019 – Central Tax
dated 14th November, 2019, the Annual returns FORM GSTR 9 & 9C were simplified for the
Financial years 2017-18 & 2018-19 under GST by making few entries optional. Further, vide
Notification No. 79/2020 - Central Tax dated 15th October, 2020, the Annual returns i.e. FORM
GSTR 9 & 9C were simplified for the Financial Year 2019-20 as well by making few entries/tables
optional. In addition, following relaxations have also been provided in filing of annual return based on
the recommendations of the Council:
i. The filing of annual return in FORM GSTR-9/9A was made optional for taxpayers having
aggregate annual turnover less than rupees 2 Crore rupees for the Financial Year 2017-18,
2018-19 and 2019-20;
ii. The threshold of aggregate annual turnover for filing of reconciliation statement in FORM
GSTR-9C for the financial year 2018-19 and 2019-20 was increased form Rupees 2 Crore to
Rupees 5 Crore vide amendment in rule 80.
2.1 It may be noted that based on the recommendations of the Council, certain amendment in the
requirement for filing annual return have been carried out in the Finance Act, 2021:
a Vide Section 110 of the Finance Act, 2021, sub-section (5) of section 35 of the CGST Act is
omitted to remove the mandatory requirement of getting annual accounts audited and
reconciliation statement submitted by specified professional; and
b Vide Section 111 of the Finance Act, 2021; section 44 of the CGST Act is substituted to
provide for filing of the annual return which may include submission of reconciliation
statement on self-certification basis. It further provides for the Commissioner to exempt a
class of taxpayers from the requirement of filing the annual return
These changes will come into effect from the date when the same will be notified by the
Government.
2.2 As seen in para 2.1, through the Finance Act 2021, the provisions for certification of
Reconciliation Statement in FORM GSTR-9C, along with Annual Return, by chartered accountants
has been done away with, replacing it with self-certification by the taxpayer. For the FY 2020-21, the
due date of filing annual return is 31.12.2021. Accordingly, it would be appropriate to notify the
amended provision of the Act early, so that the certification requirement by CAs is not required
for FY 2020-21 itself. This will facilitate a large number of taxpayers in this year itself. If we wait for
all states/ UTs, then we will be able to notify it only by 1.1.2022, by which time last date of filing
annual return for FY 2020-21 will be over and the said amendment will not be able to apply for
Annual return for FY 2020-21. In case, the said amendment is notified by the central govt. early,
States would be required to amend their respective SGST Act retrospectively to match the
dates.

2.3 Though, it is desirable to have a single annual return which may include reconciliation
statement as envisaged in the amendment carried out in section 44 of the CGST Act, it would require
time to develop and notify such FORM. In the meantime, we may consider notifying the existing
FORM GSTR 9 and GSTR 9C for Annual Return for FY 2020-21 with minimal changes required to
implement the said change. Further, for FY 2021-22, we may consider having a single Form for
Annual Return by merging GSTR 9 and GSTR 9C and simplifying the same to facilitate the taxpayers
and improve compliance. This would help the taxpayers to file the annual return for 2020-21 in same
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manner as was done for 2019-20 and at the same time, the mandatory requirement of getting the
accounts reconciled by professionals would be done away.

3. Accordingly, in order to notify the existing FORMs for the year 2020-21, following is
proposed:
a Rule 80 of the CGST Rules, 2017 need to be amended accordingly so that the new provisions
in respect of annual audit of accounts and submission of reconciliation statement can be
implemented with effect from the financial year 2020-21. (Annexure A)
b Format for FORM GSTR-9 may be continued as was there for FY 2019-20. The Tables in
FORM GSTR-9 which were optional to be continued. (Annexure B).
c The exemption from filing annual return may be continued as below:
i. The filing of annual return in FORM GSTR-9 may be made optional for taxpayers
having aggregate annual turnover less than rupees 2 Crore rupees for the Financial
Year 2020-21;
ii. The filing of annual return in FORM GSTR-9A by composition dealers may be
made optional for the Financial Year 2020-21;
iii. The threshold of aggregate annual turnover for filing of reconciliation statement in
FORM GSTR-9C for the financial year 2020-21 may be kept as Rupees 5 Crore
d Format for FORM GSTR-9C to be modified to incorporate the provision of self-certification
instead of professional certificate. Tables in FORM GSTR-9C which were optional to be
continued. Further, few tables of FORM GSTR-9C has rate of taxes hard coded which does
not include 7.5% and few other rates. Revised format to be notified is enclosed as Annexure
C.
4. The issue was deliberated by the Law Committee in its meeting dated 19.05.2021. The Law
Committee recommended the proposal at para 3 above.
5. The issue is placed before the GST Council for deliberation and approval.
















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Annexure A

Amending CGST Rules in accordance with Finance Act, 2021
The Finance Act, 2021 has removed the mandatory4requirement of getting annual accounts
audited and submitting reconciliation statement, besides enabling filing of the annual return on self-
certification basis. The relevant sections of the Finance Act, 2021 are as under:
110. In section 35 of the Central Goods and Services Tax Act, sub-section (5) shall be
omitted.
111. For section 44 of the Central Goods and Services Tax Act, the following section shall be
substituted, namely:-
“44. Every registered person, other than an Input Service Distributor, a person
paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable
person shall furnish an annual return which may include a self-certified reconciliation
statement, reconciling the value of supplies declared in the return furnished for the financial
year, with the audited annual financial statement for every financial year electronically,
within such time and in such form and in such manner as may be prescribed:
Provided that the Commissioner may, on the recommendations of the Council, by
notification, exempt any class of registered persons from filing annual return under this
section:
Provided further that nothing contained in this section shall apply to any department
of the Central Government or a State Government or a local authority, whose books of
account are subject to audit by the Comptroller and Auditor-General of India or an auditor
appointed for auditing the accounts of local authorities under any law for the time being in
force.”.
2. In light of the above, Rule 80 of the CGST Rules, 2017 may be amended as below:
80. Annual return.- (1) Every registered person, other than those referred to in the
second proviso to section 44, an Input Service Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an
annual return for every financial year as specified under section 44 electronically in FORM
GSTR-9 on or before the thirty-first day of December following the end of such financial year
through the common portal either directly or through a Facilitation Centre notified by the
Commissioner:
Provided that a person paying tax under section 10 shall furnish the annual return in
FORM GSTR-9A.
Provided further that every registered person, other than those referred to in the
second proviso to section 44, an Input Service Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a non-resident taxable person, whose aggregate
turnover during a financial year exceeds five crore rupees, shall also furnish a self-certified
reconciliation statement as specified under section 44 in FORM GSTR-9C along with the
annual return.
(2) Every electronic commerce operator required to collect tax at source under
section 52 shall furnish annual statement referred to in sub-section (5) of the said section in
FORM GSTR -9B.


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Alternate draft
80. Annual return.- (1) Every registered person, other than those referred to in the
second proviso to section 44, an Input Service Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an
annual return for every financial year as specified under section 44 electronically in FORM
GSTR-9 on or before the thirty-first day of December following the end of such financial year
through the common portal either directly or through a Facilitation Centre notified by the
Commissioner:
Provided that a person paying tax under section 10 shall furnish the annual return in
FORM GSTR-9A.
(2) Every electronic commerce operator required to collect tax at source under
section 52 shall furnish annual statement referred to in sub-section (5) of the said section in
FORM GSTR -9B.
(3) Every registered person, other than those referred to in the second proviso to
section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a
casual taxable person and a non-resident taxable person, whose aggregate turnover during a
financial year exceeds five crore rupees, shall also furnish a self-certified reconciliation
statement as specified under section 44 in FORM GSTR-9C along with the annual return
referred in sub-rule (1), on or before the thirty-first day of December following the end of
such financial year, electronically through the common portal either directly or through a
Facilitation Centre notified by the Commissioner.

[Draft to be finalised in consultation with Ministry of Law and Justice]
\
















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Annexure B
Format for FORM GSTR-9 may be continued as was there for FY 2019-20. The Tables in FORM
GSTR-9 which were optional to be continued: -
Table
No.
Recommendations
4I to 4L It was recommended that these fields be made optional. Therefore, the taxpayer has an
option to either file 4B to 4E through net of credit notes/ debit notes or report such
details separately in 4I to4L.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, registered person was given this option. The
same relaxation may be continued for FY 2020-21.
5D, 5E
and 5F
It was recommended that the taxpayer may be given an option to either separately report
his supplies across exempted, nil rated and Non-GST supply or fill consolidated
information in the ―exempted‖ field only.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, registered person was given this option. The
same relaxation may be continued for FY 2020-21.
5H to
5K
It was recommended that these fields be made optional. Therefore, the taxpayer has an
option to either file 5A to 5F through net of credit notes/ debit notes or report such
details separately in 5H to 5K.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, registered person was given this option. The
same relaxation may be continued for FY 2020-21.
6B, 6C,
6D and
6E
A. It was decided that the breakup of ITC for inputs, capital goods and input services
should be made optional. Therefore, the taxpayer may enter the breakup of credit
or report their entire ITC under the ―inputs‖ row only.
B. It was also decided that the taxpayer may be given an option to either report rows
6C and 6D separately or report the entire figure of 6C and 6D in row 6D only.
Proposal:
For F.Y. 2017-18 and 2018-19, both the options A and B as stated above were given to
the taxpayers. However, for FY 2019-20, the taxpayer was given option B while the
option A was modified in a way that the taxpayer could report the breakup of ITC as
capital goods and have an option to either report the breakup of remaining amount as
inputs and input services or report the entire remaining amount under the ―inputs‖ row
only.
The relaxation as provided in FY 2019-20 may be continued for FY 2020-21.
7A to
7E
It was recommended that the taxpayer may be given an option to either file his
information on reversals separately in Table 7A to 7E or report the entire reversals
under Table 7H. However, reversals on account of TRAN-1 credit (table 7F) and
TRAN-2 (table 7G) credit may be kept mandatory and are to be reported separately.
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However, in case the taxpayer has availed the ITC in his FORM GSTR-3B, net of
reversal, in table 4A, then in such cases 7A to 7E may be filed as 0.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, the registered person had an option to either fill
his information on reversals separately in Table 7A to 7E or report the entire amount of
reversal under Table 7H only. However, reversals on account of TRAN-1 credit (table
7F) and TRAN-2 (table 7G) credit were to be mandatorily reported.
The same may be deliberated in the Law Committee for FY 2020-21. GSTN may
provide data on how many taxpayers file details of reversal under rule 42 & 43 in
GSTR-3B.
8D Since the fields 8A and 8B of the table are auto populated and the taxpayers are facing
issues in matching the same with the corresponding FORM GSTR-2A (due to its
dynamic nature), it may be made optional for the taxpayers to either fill in entries 8A to
8D in FORM GSTR-9 or they may upload the details for the entries 8A to 8D duly
signed, in pdf format in FORM GSTR-9C (without the CA certification). The remaining
entries of the table 8 (from 8E onwards) are required to be filled in the FORM GSTR-9
itself.
Proposal:
An option to upload the details for entries in table 8A to 8D duly signed, in PDF format
in FORM GSTR-9C (without CA certification) was given for previous years.
The option to upload the details for entries in table 8A to 8D duly signed, in PDF format
in FORM GSTR-9C (without CA certification) may also be continued for 2020-21.
12 and
13
It was recommended that table 12 and 13 may be made optional for taxpayers as this
information is not essential for the tax administration in the year 2017-18 and 2018-19.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill
these tables. The same may be continued for FY 2020-21.
15 It was recommended that tax administration already has all the data on refund and
demands for the taxpayers. Therefore, Table 15 may be made optional for the taxpayers.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill
these tables. The same relaxation may be continued for FY 2020-21
16A,
16B and
16C
It was discussed that most of the taxpayers have reported that information required in
table 16A has not been maintained for FY 2017-18 and 2018-19. Therefore, it was
recommended that the same be made optional for both the years.
For table 16B, it was further discussed that the compliance for deemed supply under
section 143 has already been waived off through waiver of a requirement of furnishing
declaration in FORM GST ITC-04 for 2017-18 and 2018-19. Also supplies are to be
reported as normal taxable supplies under table 4. Therefore, the same may be made
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optional.
For table 16C, it was discussed that goods which are sent on approval basis and not
returned are to be reported as normal taxable supplies under table 4. Therefore, the same
may be made optional.
Proposal:
For FY 2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill
these tables. The same relaxation may be continued for FY 2020-21
17 It was informed that the trade is feeling constrained in giving 6-digit SAC/HSN code as
shown in drop down menu. It was further informed that GSTN's current master did not
allow for entering a 2-digit HSN code. This was basically due to the difference in design
between table 12 of FORM GSTR-1 and Table 17/18 of FORM GSTR-9. Accordingly,
it was recommended that table 17 may be made optional for FY 2017-18 and FY 2018-
19.
Proposal:
At present, this table is optional for taxpayers having annual turnover upto Rs 1.50
crores. For taxpayers having annual turnover above 1.5 crores but upto 5 crores, it is
mandatory to report HSN code at 2 digits’ level, while for those having over 5 crores
annual turnover, it is mandatory to report HSN code at 4 digits’ level. However, for FY
2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill this table.
The same relaxation may be continued for FY 2020-21.
18 Trade and industry have widely represented that filing of HSN level information on
inputs has been a challenge for them. Search reporting of data requires an assessment of
the supplier's invoice. Further, if a bigger taxpayer receives a supply from a smaller
taxpayer then in such cases he may have to report the SSN at 4-8 digit, whereas, the
invoice by the supplier will have no exception or a 2 digit HSN code. Accordingly, it
was recommended that the table 18 may be made optional for FY 2017-18 and 2018-19.
Proposal:
At present, this table is optional for taxpayers having annual turnover upto Rs 1.50
crores. For taxpayers having annual turnover above 1.5 crores but upto 5 crores, it is
mandatory to report HSN code at 2 digits’ level, while for those having over 5 crores
annual turnover, it is mandatory to report HSN code at 4 digits’ level. However, for FY
2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill this table.
The same relaxation may be continued for FY 2020-21.


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Annexure C
FORM GSTR-9C
See rule 80(3)
PART – A - Reconciliation Statement
Pt. I Basic Details
1
Financial
Year
2 GSTIN
3A Legal Name < Auto>
3B
Trade Name
(if any) <Auto>
4 Are you liable to audit under any Act? <<Please specify>>
(Amount in ₹ in all tables)
Pt. II
Reconciliation of turnover declared in audited Annual Financial Statement with
turnover declared in Annual Return (GSTR9)
5 Reconciliation of Gross Turnover
A
Turnover (including exports) as per audited financial statements for
the State / UT (For multi-GSTIN units under same PAN the turnover
shall be derived from the audited Annual Financial Statement)
B Unbilled revenue at the beginning of Financial Year (+)
C Unadjusted advances at the end of the Financial Year (+)
D Deemed Supply under Schedule I (+)
E
Credit Notes issued after the end of the financial year but
reflected in the annual return
(-)
F
Trade Discounts accounted for in the audited Annual
Financial Statement but are not permissible under GST (+)
G Turnover from April 2017 to June 2017 (-)
H Unbilled revenue at the end of Financial Year (-)
I Unadjusted Advances at the beginning of the Financial Year (-)
J
Credit notes accounted for in the audited Annual Financial
Statement but are not permissible under GST
(+)
K
Adjustments on account of supply of goods by SEZ units to
DTA Units (-)
L Turnover for the period under composition scheme (-)
M
Adjustments in turnover under section 15 and rules
thereunder (+/-)
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N Adjustments in turnover due to foreign exchange fluctuations (+/-)
O Adjustments in turnover due to reasons not listed above (+/-)
P Annual turnover after adjustments as above <Auto>
Q Turnover as declared in Annual Return (GSTR9)
R Un-Reconciled turnover (Q - P) AT1
6 Reasons for Un - Reconciled difference in Annual Gross Turnover
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
7 Reconciliation of Taxable Turnover
A Annual turnover after adjustments (from 5P above) <Auto>
B
Value of Exempted, Nil Rated, Non-GST supplies, No-Supply
turnover
C Zero rated supplies without payment of tax
D
Supplies on which tax is to be paid by the recipient on reverse charge
basis
E Taxable turnover as per adjustments above (A-B-C-D) <Auto>
F Taxable turnover as per liability declared in Annual Return (GSTR9)
G Unreconciled taxable turnover (F-E) AT 2
8 Reasons for Un - Reconciled difference in taxable turnover
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
Pt.
III Reconciliation of tax paid
9 Reconciliation of rate wise liability and amount payable thereon


Tax payable

Description Taxable Value Central tax
State tax
/ UT tax
Integrated Tax
Cess, if
applicable
1 2 3 4 5 6
A 5%
B 5% (RC)
C 12%
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D 12% (RC)
E 18%
F 18% (RC)
G 28%
H 28% (RC)
I 3%
J 0.25%
K 0.10%
K1 Others
L Interest
M Late Fee
N Penalty
O Others
P
Total amount
to be paid as
per tables
above <Auto> <Auto> <Auto> <Auto>
Q
Total amount
paid as
declared in
Annual
Return
(GSTR 9)
R
Un-
reconciled
payment of
amount
(PT1)
10 Reasons for un-reconciled payment of amount
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
11
Additional amount payable but not paid (due to reasons specified under Tables 6,8 and
10 above)
To be paid through Cash
Description Taxable Value Central tax State tax Integrated tax Cess, if
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/ UT tax applicable
1 2 3 4 5 6
5%
12%
18%
28%
3%
0.25%
0.10%
Others
Interest
Late Fee
Penalty

Others
(please
specify)
Pt.
IV Reconciliation of Input Tax Credit (ITC)
12 Reconciliation of Net Input Tax Credit (ITC)
A
ITC availed as per audited Annual Financial Statement for the State/
UT (For multi-GSTIN units under same PAN this should be derived
from books of accounts)
B
ITC booked in earlier Financial Years claimed in current
Financial Year (+)
C
ITC booked in current Financial Year to be claimed in
subsequent Financial Years (-)
D ITC availed as per audited financial statements or books of account <Auto>
E ITC claimed in Annual Return (GSTR9)
F Un-reconciled ITC ITC 1
13 Reasons for un-reconciled difference in ITC
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
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14
Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses
as per audited Annual Financial Statement or books of account
Description Value
Amount of Total
ITC
Amount of eligible
ITC availed
1 2 3 4
A Purchases
B Freight / Carriage
C Power and Fuel
D
Imported goods
(Including received from
SEZs)

E Rent and Insurance
F
Goods lost, stolen,
destroyed, written off or
disposed of by way of
gift or free samples

G Royalties
H
Employees' Cost
(Salaries, wages, Bonus
etc.)

I Conveyance charges
J Bank Charges
K Entertainment charges
L
Stationery Expenses
(including postage etc.)

M Repair and Maintenance
N
Other Miscellaneous
expenses

O Capital goods
P Any other expense 1
Q Any other expense 2
R
Total amount of eligible
ITC availed <<Auto>>
S
ITC claimed in Annual
Return (GSTR9)
T
Un-reconciled ITC (ITC


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2)
15 Reasons for un - reconciled difference in ITC
A Reason 1 <<Text>>
B Reason 2 <<Text>>
C Reason 3 <<Text>>
16
Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15
above)
Description Amount Payable
Central Tax
State/UT Tax

Integrated
Tax
Cess
Interest
Penalty
Pt. V Auditor's recommendation on additional Liability due to non-reconciliation
To be paid through Cash
Description Value
Central tax
State tax
/ UT tax
Integrated tax
Cess, if
applicable
1 2 3 4 5 6
5%
12%
18%
28%
3%
0.25%
0.10%
Others

Input Tax
Credit
Interest
Late Fee
Penalty
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Any other
amount paid
for supplies
not included
in Annual
Return
(GSTR 9)

Erroneous
refund to be
paid back

Outstanding
demands to
be settled

Other (Pl.
specify)

Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the
best of my knowledge and belief and nothing has been concealed there from.
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………

Verification of registered person:

I hereby solemnly affirm and declare that the information given herein above is true and correct and
nothing has been concealed there from. I hereby solemnly affirm and declare that I am uploading the
this self-certified reconciliation statement in FORM GSTR-9C prepared and duly signed by the
Auditor and nothing has been tampered or altered by me in the statement. I am also uploading other
statements, as applicable, including financial statement, profit and loss account and balance sheet etc.

Signature
Place:
Date:
Name of Authorized Signatory
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Designation/status

Instructions: –
1. Terms used:
(a) GSTIN: Goods and Services Tax Identification Number
2. It is mandatory to file all your FORMGSTR-1, FORM GSTR-3B and FORM GSTR -9 for the
[current financial year]1before filing this return. [For FY 2017-18,]2The details for the period
between July 2017 to March 2018 are to be provided in this statement for the financial year 2017-
18. The reconciliation statement is to be filed for every GSTIN separately.
3. The reference to current financial year in this statement is the financial year for which the
reconciliation statement is being filed for.
4. Part II consists of reconciliation of the annual turnover declared in the audited Annual Financial
Statement with the turnover as declared in the Annual Return furnished in FORM GSTR-9 for
this GSTIN. The instructions to fill this part are as follows: -

5. Part III consists of reconciliation of the tax payable as per declaration in the reconciliation
statement and the actual tax paid as declared in Annual Return (GSTR9-). The instructions to fill
this part are as follows: -

6. Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as
under: -

7. Part V consists of the auditor’s recommendation on the additional liability to be discharged by
the taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit. The
auditor shall also recommend if there is any other amount to be paid for supplies not included in
the Annual Return. Any refund which has been erroneously taken and shall be paid back to the
Government shall also be declared in this table. Lastly, any other outstanding demands which is
recommended to be settled by the auditor taxpayer shall be declared in this Table.
8. Towards the end of the return, taxpayers shall be given an option to pay any additional liability
declared in this form, through FORM DRC-03. Taxpayers shall select ―Reconciliation
Statement‖ in the drop down provided in FORM DRC-03. It may be noted that such liability
shall be paid through electronic cash ledger only.
[PART – B- CERTIFICATION
I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is
drawn up by the person who had conducted the audit:


1 Substitutedfor ―FY 2017-18‖vide Notf no. 56/2019 – CT dt. 14.11.2019
2Inserted vide Notf no. 56/2019 – CT dt. 14.11.2019
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* I/we have examined the—
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from
………..…to ending on ……., and
(c) the cash flow statement (if available) for the period beginning from ……..…to ending on ………,
—attached herewith, of M/s …………… (Name), …………………….………… (Address),
..…………………(GSTIN).
2. Based on our audit I/we report that the said registered person—
*has maintained the books of accounts, records and documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. (a) *I/we report the following observations/ comments / discrepancies / inconsistencies; if any:
…………………………………….
…………………………………….
3. (b) *I/we further report that, -
(A) *I/we have obtained all the information and explanations which, to the best of *my/our
knowledge and belief, were necessary for the purpose of the audit/ information and explanations
which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were
not provided/partially provided to us.
(B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so
far as appears from*my/ our examination of the books.
(C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the
cash flow Statement (if available) are *in agreement/not in agreement with the books of account
maintained at the Principal place of business at ……………………and **
……………………additional place of business within the State.
4. The documents required to be furnished under section 35 (5) of the CGST Act / SGST Act and
Reconciliation Statement required to be furnished under section 44(2) of the CGST Act / SGST Act is
annexed herewith in Form No. GSTR-9C.
5. In *my/our opinion and to the best of *my/our information and according to explanations given to
*me/us, the particulars given in the said Form No.GSTR-9C are true and fair subject to following
observations/qualifications, if any:
(a) ……………………………………………………………………………………
(b) ……………………………………………………………………………………
(c) ……………………………………………………………………………………
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………………………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………
II. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a
person other than the person who had conducted the audit of the accounts:
*I/we report that the audit of the books of accounts and the financial statements of M/s.
………...........…………………. (Name and address of the assessee with GSTIN) was conducted by
M/s. …………………………………………..………. (full name and address of auditor along with
status), bearing membership number in pursuance of the provisions of the
…………………………….Act, and *I/we annex hereto a copy of their audit report dated
……………………………. along with a copy of each of :-
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from
………..…to ending on …….,
(c) the cash flow statement (if available) for the period beginning from ……..…to ending on ………,
and
(d) documents declared by the said Act to be part of, or annexed to, the *profit and loss
account/income and expenditure account and balance sheet.
2. I/we report that the said registered person—
*has maintained the books of accounts, records and documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the
IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. The documents required to be furnished under section 35 (5) of the CGST Act / SGST Act and
Reconciliation Statement required to be furnished under section 44(2) of the CGST Act / SGST Act is
annexed herewith in Form No.GSTR-9C.
4. In *my/our opinion and to the best of *my/our information and according to examination of books
of account including other relevant documents and explanations given to *me/us, the particulars given
in the said Form No.9C are true and fair subject to the following observations/qualifications, if any:
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(a) …………………………….…………………………….………………………
(b) …………………………….…………………………….………………………
(c) …………………………….…………………………….………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………]3

3Substituted vide Notf no. 56/2019 – CT dt. 14.11.2019
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The Tables in FORM GSTR-9C which were optional in 2019-20 may be continued for 2020-21 as
well:
Table No. Decision
5B to 5N It was recommended that a number of big companies which have a presence in
multiple States face a lot of challenges in reporting State wise unbilled revenue,
unadjusted advances, deemed supply details, etc. It was discussed that from an
indirect tax administration point of view, this data may not be required. In fact, this
table was to act as a pointer of the adjustments that taxpayers need to make to
derive GST turnover from income tax / audited financial turnover.

Since, filing this data was a challenge, it was recommended that taxpayers may be
given an option to either file the data row wise or directly report all adjustments
through table 5O (adjustment tab).

Proposal:
For FY 2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill
these tables. If there were any adjustments to be reported, the same could be
reported in Table 5O. The same relaxations may be continued for FY 2020-21.
Table 12B
and 12C
It was discussed that the rational of inserting Table 12 was to reconcile the input
tax credit reported in the audited financial statement with the input tax credit taken
in the GST returns.
Generally, adjustments in Table 12B and 12C are not maintained separately by the
taxpayers. Therefore, these fields may be made optional.

Proposal:
For FY 2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill
these tables. The same relaxation may be continued for FY 2020-21.
Table 14 Trade and industry have widely represented that night the internal accounts not the
audited financial statements when date maintaining of expense hear wise input tax
credit.
Since, this data is not be maintained, it was decided that the table may be made
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optional for the taxpayers.

Proposal:
For FY 2017-18, 2018-19 and 2019-20, the taxpayer was given an option not to fill
these tables. The same relaxation may be continued for FY 2020-21.



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Agenda Item 9A (iii) - Proposal of amendments in the return related provisions of the CGST
Act, 2017
The original design of return involved an elaborate process of filing of GSTR-1, 2 & 3 in a
sequence which also envisaged inter-linking with back and forth flow of invoices. The return related
sections viz. section 37 to 43 of the CGST Act, 2017 was drafted accordingly. However, the return
system and linkage could not be established and GSTR-1-2-3 model were kept in abeyance. Instead,
as an interim measure, a summary return in FORM GSTR-3B was introduced, along with the
statement of outward supplies in FORM GSTR-1.
2. Subsequently, a new return system was envisaged (ANX-1/ ANX-II and RET-01). Section
43A was also inserted into the CGST Act vide CGST Amendment Act, 2018. However, section 43A
has not been notified yet.
3. It may be recalled that in the 42nd GST Council meeting held in October 2020, it was
recommended that the present system of GSTR-1/3B return filing to be continued and the GST laws
may be amended to make the GSTR-1/3B return filing system as the default return filing system. The
recommendation of the Council, as communicated through the minutes, is as below:
―12. For Agenda 6 the Council took the following decisions:
(iii) Granted in principle approval to make legal changes to replace GSTR-1/2/3 related
provisions with the present GSTR-1/3B return filing system.
iv. Empowered the Law Committee to deliberate upon the amendments required in the GST
Acts and Rules accordingly.‖
Accordingly, various provisions of CGST Act 2017 that require amendment have been examined by
the Law Committee in its meetings held on 16th, 23rd, 30th December, 2020 and 19th May, 2021. The
Law Committee has recommended amendment in various provisions of the Act. The details of the
sections which require amendments are as below:
TABLE -1
S.No. Section proposed for
amendment
Amendment proposed, along with rationale
1 Section 37 – Furnishing details
of outward supplies
i. Sub section 1 to be amended to provide for conditions
and restrictions through Rules for filing GSTR1 and
for passing on of credit to the buyers in GSTR 2A/2B.
ii. Proviso to sub section 1 to be omitted and relevant
consequential amendments: The requirement that
furnishing shall not be allowed from the 11th to the 15th
of the month needs to be done away with. This non-
allowance was to allow for freezing of data before the
2- way communication, envisaged under GSTR1/2/3
scheme.
iii. Sub-section 2: Needs to be omitted as the 2-way
communication is proposed to be done away with.
iv. New sub-section 4: to provide for making GSTR-1
sequential.

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2 Section 38 – Furnishing details
of inward supplies
i.The present sub-sections to be omitted in entirety as
there is no requirement of furnishing details of inward
supplies by the taxpayer.
ii.The new section to provide that details of inward
supplies shall be made available to the recipients in a
prescribed manner. This is essentially an enabling
provision to provide for GSTR-2B. The requirement
of reversal of input tax credit arises from Chapter V,
and is, therefore, not required to be mentioned under
this section.
iii. Further, provision to implement spike rules is
incorporated in sub-section (2)

3 Section 39 – Furnishing of
returns
i. Sub-section 5: The due date for furnishing return for
Non-resident taxpayer (NRTP) is proposed to be made
13th of the month. This is in line with the proposed
dates on which GSTR-2B picks up data in the System.
ii. First proviso to sub-section 7: To provide that for
monthly payments by quarterly taxpayers (QRMP
taxpayers), government may prescribe that instead of
self-assessed tax, a prescribed amount may be paid.
This is currently being covered by a special procedure.
iii. Sub-section 10: Making furnishing of GSTR-1
mandatory before filing of return in Form GSTR-3B.

4 Section 41 – Claim of Input
tax credit and provisional
acceptance thereof
i. Sub-section 1: Amendment to do away with the word
―claim‖ and bring in the concept of availment; and
also, to remove the concept of provisional availment of
ITC in this section. The concept of provisional
availment was there in GSTR-1/2/3 model.
ii. Sub-section 2: May be removed as the said
requirement is already flowing from section 49.
5 Section 42 – Matching,
reversal and reclaim of input
tax credit
In view of the removal of the provisional ITC availment,
as proposed in amendment to section 41 above and the
proposed [and Council recommended] amendment to
section 16 (2) which envisages that ITC shall be available
on a supply only when the same has been declared/
communicated by the supplier in his GSTR-1, the existing
section 42 may be omitted as a whole.
6 Section 43 – Matching,
reversal and reclaim of
reduction in output tax liability
The existing section 43 may be omitted as a whole as the
concept of 2-way communication proposed in earlier
GSTR1/2/3 model is proposed to be done away with and
liability to be determined on self-assessment basis. Further,
Credit note and duplication related checks have already
been incorporated in the GSTR-2B statement.
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7 Section 43A – Procedure for
furnishing return and availing
input tax credit
The proposed section may be omitted as whole. Relevant
provisions of section 43A have been incorporated at
suitable places in the above amendments. Provisions
related to spike rules would be covered under proposed
amendments in section 37 and 38.
8 Section 47 – Levy of late fee i.. Section 47 pertains to the levy of late fee. Section 52
read with Rule 67 of the CGST Rules, 2017 requires
registered person to collect tax collected at source and
furnish GSTR-8 to submit statement of supplies through an
e-commerce operator. There is presently no late fee for late
filing of GSTR-8. Amendment is proposed in Section 47 to
include Section 52 in sub section (1) of section 47 so that
late fee shall be levied in case registered persons do not
file GSTR-8 by the due date.

4. In addition to above, consequential amendments are also proposed in some other sections,
as detailed below:
TABLE-2
S.No Section proposed for
amendment
Amendment proposed, along with rationale
9 Section 29: Cancellation of
Registration
The frequency for persons filing return under section 10
has been made annual. Accordingly, clause (b) of sub-
section (2) of section 29 has lost significance as the
earlier return filing was frequency was quarterly.
Similarly, return filing frequency for small taxpayers
(under QRMP scheme) has been changed from monthly
to quarterly. Therefore, the period under clause (c) may
also require flexibility, which may not be there if the
same is governed by the existing clause.
10 Section 49: Payment of tax,
interest, penalty and other
amounts
Government has notified rule 86B mandating restriction
in utilization of ITC in specified cases. Law Committee
has recommended that it would be appropriate if a
provision under section 49 is made for such scenarios.
11 Section 16, 37, 39 ,34 and 52 1. Rectification of particulars in details of outward
supplies under section 37 is presently linked with
furnishing of return for September month of next
financial year. Rectification of particulars under section
39 is linked with due date of furnishing of return for
September month of next financial year. ITC under
section 16 is barred in respect of any invoice or debit
note after the due date of furnishing of the return under
section 39 for the month of September of the next
financial year. Similar time limits have been made under
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Section 34(2) and section 52(6).
2. Law Committee has recommended that a fixed date
30th November of the next financial year be fixed for all
of these compliances, as it serves two purposes:
a. In the portal, after the cut-off date no amendment
would be permitted.
b. It provides one more month to taxpayer to amend their
returns.
12 Section 50: Interest on
delayed payment of tax.
After the proposed amendment in section 37-43, it is
proposed to have explicit provision for charging interest
on ineligible ITC availed and utilized (net cash liability).
Therefore, amendment is proposed in sub-section (3) of
section 50.
13 Section 54 - Refund of tax GSTR-1, 2 & 3 return system envisaged refund of excess
cash ledger through return under section 39. However, as
the GSTR-1, 2 & 3 return system could not be
operationalised and instead GSTR-1, 2B & 3B system is
being followed where for claiming the refund of excess
balance in cash ledger, the registered person is required
to file for an application of refund under FORM GST
RFD-01.
Consequent to the amendment proposed in section 37 to
43, it is proposed that proviso to sub-section (1) of
Section 54 of the CGST Act, may be amended to allow
for refund of any balance in the electronic cash ledger in
such form and manner as may be prescribed.

5. A detailed broadsheet containing the proposed amendments (in red) along with the rationale
has been prepared and is placed at Annexure-A to this Agenda Note. The proposed changes would
require amendment is Law. In principle approval to amend the GST laws to make the GSTR-1/3B
return filing system as the default return filing system has already been given by the GST Council in
42nd meeting, as detailed in Para 3 above. The proposal for law Amendment was placed before GIC for
deliberations and was also approved by the GIC with recommendation that amendment proposal be
placed before the GST Council.
6. Accordingly, agenda note along with the detailed amendment proposal is placed before the
GST Council for approval please.
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Annexure-A
PROPOSAL FOR AMENDMENT IN CGST ACT
Table 1
Sl.
No.
Section Rational for amendment Suggested formulation
1. 16 i. One of the key objectives of
the GSTR-1/2/3 system was to
provide for matching of
invoices between the supplier
and the recipient i.e. there
shall be no credit existing in
the system which has not been
declared in the respective
returns of the supplier and
recipient as per section 16 (2)
(c ) and 16(2) (d) of the CGST
Act 2017.
ii. Available data suggests that
the percentage of filing of
return in FORM GSTR-1
(details of outward supplies) is
far lesser as compared to filing
of return in FORM GSTR-
3B, through which input tax
credit is availed. Further, due
to poor filing of FORM
GSTR-1, there are large gaps
between credit available under
FORM GSTR-2A and self-
assessed credit under FORM
GSTR-3B. Further, reasonable
restriction had already been
imposed on self-assessed input
tax credit (ITC) availed in
FORM GSTR-3B on the basis
of credit reflected in FORM
GSTR-2A/2B in terms of Rule
36(4). It provides that credit
availed in GSTR-3B cannot
exceed the credit reflected in
GSTR-2A by 20%, w.e.f.
09.10.2019; and which was
further reduced to 10% from
w.e.f 01.01.20202 and 5%
w.e.f. 01.01.2021.
iii. The portion in blue (clause
(aa)) has already been inserted
vide the Finance Act, 2021
16.
…
(2) Notwithstanding
anything contained in this section, no
registered person shall be entitled to
the credit of any input tax in respect of
any supply of goods or services or both
to him unless,––
(a) he is in possession of a
tax invoice or debit note issued by a
supplier registered under this Act, or
such other tax paying documents as
may be prescribed;
(aa) the details of the invoice
or debit note referred to in clause (a)
has been furnished by the supplier in
the statement of outward supplies and
such details have been communicated
to the recipient of such invoice or
debit note in the manner specified
under section 37;
(b) he has received the
goods or services or both.
Explanation.— For the
purposes of this clause, it shall be
deemed that the registered person has
received the goods or, as the case may
be, services––
(i) where the goods are
delivered by the supplier to a recipient
or any other person on the direction of
such registered person, whether acting
as an agent or otherwise, before or
during movement of goods, either by
way of transfer of documents of title to
goods or otherwise;
(ii) where the services are
provided by the supplier to any person
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iv. Thereafter, amendment has
been proposed in section 38,
which, inter-alia, provides that
details of outward supplies
furnished by the suppliers that
are to be communicated to the
recipients may be restricted in
specified cases. Accordingly,
it is proposed to provide in law
that the recipient shall not be
eligible for ITC corresponding
to such details which have not
been communicated for which
clause (e) is proposed to be
added in section 16(2).
v. Rectification of particulars in
details of outward supplies
under section 37 is presently
linked with furnishing of
return for September month.
Rectification of particulars
under section 39 is linked with
due date of furnishing of
return for September month.
ITC under section 16 is barred
in respect of any invoice or
debit note after the due date of
furnishing of the return under
section 39 for the month of
September following the end
of financial year to which such
invoice or debit note pertains.
Law Committee has
recommended that a fixed date
30th November be fixed for the
same as it serves two
purposes:
a. In the portal, after the cut-
off date no amendment would
be permitted.
b. It provides one more month
to taxpayer to amend their
returns.

on the direction of and on account of
such registered person;
(c) subject to the
provisions of section 41, the tax
charged in respect of such supply has
been actually paid to the Government,
either in cash or through utilisation of
input tax credit admissible in respect
of the said supply; and
(d) he has furnished the
return under section 39:; and
(e) input tax credit in
respect of the said supply has not been
restricted in the details communicated
to such registered person under section
38:
Provided that where the goods
against an invoice are received in lots
or instalments, the registered person
shall be entitled to take credit upon
receipt of the last lot or instalment:
Provided further that where a
recipient fails to pay to the supplier of
goods or services or both, other than
the supplies on which tax is payable
on reverse charge basis, the amount
towards the value of supply along with
tax payable thereon within a period of
one hundred and eighty days from the
date of issue of invoice by the
supplier, an amount equal to the input
tax credit availed by the recipient shall
be added to his output tax liability,
along with interest thereon, in such
manner as may be prescribed:
Provided also that the recipient
shall be entitled to avail of the credit of
input tax on payment made by him of
the amount towards the value of
supply of goods or services or both
along with tax payable thereon
(4) A registered person shall not
be entitled to take input tax credit in
respect of any invoice or debit note for
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supply of goods or services or both
after the due date of furnishing of the
return under section 39 for the month of
September 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
2. 37 i. Sub section 1 to be amended to
provide for conditions and
restrictions through Rules for
filing GSTR1 and for passing on
of credit to the buyers in GSTR
2A/2B.
ii. Proviso to sub section 1 to be
omitted and relevant
consequential amendments: The
requirement that not furnishing
shall not be allowed from the
11th to the 15th of the month
needs to be done away with. This
non-allowance was to allow for
freezing of data before the 2 way
communication.
iii. Sub-section 2: Needs to be
omitted as the 2-way
communication is proposed to be
done away with.
iv. New sub-sections 4: to provide
for making GSTR-1 sequential.
v. Rectification of particulars in
details of outward supplies under
section 37 is presently linked
with furnishing of return for
September month. Rectification
of particulars under section 39 is
linked with due date of
furnishing of return for
September month. ITC under
section 16 is barred in respect of
any invoice or debit note after
the due date of furnishing of the
return under section 39 for the
month of September following
the end of financial year to
which such invoice or debit note
pertains.
Law Committee has
recommended that a fixed date 30th
(1) Every registered person, other
than an Input Service Distributor, a
non-resident taxable person and a
person paying tax under the provisions
of section 10 or section 51 or section
52, shall furnish, electronically, subject
to such conditions and restrictions and
in such form and manner as may be
prescribed, the details of outward
supplies of goods or services or both
effected during a tax period on or
before the tenth day of the month
succeeding the said tax period and
such details shall, subject to such
conditions and restrictions, within
such time and in such manner as may
be prescribed, be communicated to the
recipient of the said supplies within
such time and in such manner as may
be prescribed:
Provided that the registered
person shall not be allowed
to furnish the details of
outward supplies during the
period from the eleventh day
to the fifteenth day of the
month succeeding the tax
period:
Provided further that the
Commissioner may, for
reasons to be recorded in
writing, by notification,
extend the time limit for
furnishing such details for
such class of taxable persons
as may be specified therein:
Provided also that any
extension of time limit
notified by the
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November be fixed for the same as
it serves two purposes:
a. In the portal, after the cut-off date
no amendment would be permitted.
b. It provides one more month to
taxpayer to amend their returns

Commissioner of State tax or
Commissioner of Union
territory tax shall be
deemed to be notified by
the Commissioner.
(2) Every registered
person who has been
communicated the details under
sub-section (3) of section 38 or the
details pertaining to inward supplies
of Input Service Distributor under
sub-section (4) of section 38, shall
either accept or reject the details so
communicated, on or before the
seventeenth day, but not before the
fifteenth day, of the month
succeeding the tax period and the
details furnished by him under sub-
section (1) shall stand amended
accordingly.
(3) Any registered person,
who has furnished the details under
sub-section (1) for any tax period and
which have remained unmatched
under section 42 or section 43, shall,
upon discovery of any error or
omission therein, rectify such error
or omission in such manner as may
be prescribed, and shall pay the tax
and interest, if any, in case there is a
short payment of tax on account of
such error or omission, in the return
to be furnished for such tax period:
Provided that no rectification
of error or omission in
respect of the details
furnished under sub-section
(1) shall be allowed after the
due date of furnishing of the
return under section 39 for
the month of September the
thirtieth day of November
following the end of the
financial year to which such
details pertain, or furnishing
of the relevant annual return,
whichever is earlier.
Provided further that the
rectification of error or
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omission in respect of the
details furnished under sub-
section (1) shall be allowed
after furnishing of the return
under section 39 for the
month of September, 2018 till
the due date for furnishing the
details under subsection (1)
for the month of March, 2019
or for the quarter January,
2019 to March, 2019
Explanation.––For the
purposes of this Chapter, the
expression ―details of
outward supplies‖ shall
include details of invoices,
debit notes, credit notes and
revised invoices issued in
relation to outward supplies
made during any tax period.
(4) A registered person shall
not be allowed to furnish the details of
outward supplies under sub-section (1)
for a tax period, if the details of
outward supplies for any of the
previous tax periods has not been
furnished by him.
Provided that the Government
may, on the recommendations of the
Council, by notification and subject to
such conditions and restrictions as
may be specified therein, allow a
registered person or a class of
registered persons to furnish the
details of outward supplies under sub-
section (1), even if he has not
furnished the details of outward
supplies for one or more previous tax
periods.
3. 38 i. The present sub-sections to be
omitted in entirety as there is no
requirement of furnishing details
of inward supplies.
ii. The new section to provide that
details of inward supplies shall
be made available to the
recipients in a prescribed
manner. This is essentially an
Section 38 to be substituted with:
38. Communication of details of
inward supplies and input tax
credit.— (1) The details of outward
supplies furnished by the registered
persons under sub-section (1) of
section 37 and such other supplies as
may be prescribed, and an auto-drafted
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enabling provision to provide for
GSTR-2B. the requirement that
reversals are required to be
carried out arises from Chapter
V, and is therefore not required
to be mentioned here.
iii. Further, provision to implement
spike rule is incorporated in sub-
section (2)

statement containing the details of
input tax credit shall be made
available electronically to the
recipients of such supplies in such
form and manner, within such time,
and subject to such conditions and
restrictions as may be prescribed.
(2) The auto-drafted statement
under sub-section (1) shall consist of:
(a) details of inwards supplies in
respect of which credit of input tax
may be available to the recipient, and
(b) details of supplies in respect of
which such credit cannot be availed,
whether wholly or partly, by the
recipient, on account of the details of
the said supplies being furnished under
sub-section (1) of section 37:
(i) by any registered person
within such period of taking
registration as may be prescribed;
or
(ii) by any registered person,
who has defaulted in payment of
tax and where such default has
continued for such period as may
be prescribed; or
(iii) by any registered person,
the output tax payable by whom in
accordance with the statement of
outward supplies furnished by him
under the said sub-section during
such period, as may be prescribed,
exceeds the output tax paid by him
during the said period by such
limit as may be prescribed; or
(iv) by any registered person
who, during such period, as may
be prescribed, has availed credit of
input tax of an amount that
exceeds the credit that can be
availed by him in accordance with
clause (a), by such limit as may be
prescribed; or
(v) by any registered person
who has defaulted in discharging
his tax liability through the
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electronic cash ledger, in
accordance with the provisions of
sub-section (12) of section 49; or
(vi) by such other class of
persons as may be prescribed.

4. 39 i. Sub-section 5: The due date for
furnishing return for NRTP
proposed to be made 13th of the
month. This is in line with the
proposed dates on which GSTR-
2B picks up data in the System
ii. First proviso to sub-section 7: To
provide that for monthly
payments by quarterly taxpayers,
government may prescribe that
instead of self-assessed tax, a
prescribed amount may be paid.
This is currently being covered
by a special procedure.
iii. Sub-section 10: Making GSTR-1
mandatory before furnishing
return in GSTR-3B
iv. Rectification of particulars in
details of outward supplies under
section 37 is presently linked
with furnishing of return for
September month. Rectification
of particulars under section 39 is
linked with due date of
furnishing of return for
September month. ITC under
section 16 is barred in respect of
any invoice or debit note after
the due date of furnishing of the
return under section 39 for the
month of September following
the end of financial year to
which such invoice or debit note
pertains.
Law Committee has
recommended that a fixed date 30th
November be fixed for the same as
it serves two purposes:
a. In the portal, after the cut-off date
no amendment would be permitted.
b. It provides one more month to
taxpayer to amend their returns

(1) Every registered person, other than
an Input Service Distributor or a non-
resident taxable person or a person
paying tax under the provisions of
section 10 or section 51 or section 52
shall, for every calendar month or part
thereof, furnish, in such form and
manner as may be prescribed, a return,
electronically, of inward and outward
supplies of goods or services or both,
input tax credit availed, tax payable,
tax paid and such other particulars, in
such form and manner, and within
such time, as may be prescribed.
Provided that the Government
may, on the recommendations of the
Council, notify certain class of
registered persons who shall furnish a
return for every quarter or part thereof,
subject to such conditions and
restrictions as may be specified
therein.

(2) A registered person paying tax
under the provisions of section 10,
shall, for each financial year or part
thereof, furnish a return,
electronically, of turnover in the State
or Union territory, inward supplies of
goods or services or both, tax payable,
tax paid and such other particulars in
such form and manner, and within
such time, as may be prescribed.

(3) Every registered person required
to deduct tax at source under the
provisions of section 51 shall furnish,
in such form and manner as may be
prescribed, a return, electronically, for
the month in which such deductions
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have been made within ten days after
the end of such month.
(4) Every taxable person registered as
an Input Service Distributor shall, for
every calendar month or part thereof,
furnish, in such form and manner as
may be prescribed, a return,
electronically, within thirteen days
after the end of such month.
(5) Every registered non-resident
taxable person shall, for every
calendar month or part thereof,
furnish, in such form and manner as
may be prescribed, a return,
electronically, within twenty thirteen
days after the end of a calendar month
or within seven days after the last day
of the period of registration specified
under sub-section (1) of section 27,
whichever is earlier.
(6) The Commissioner may, for
reasons to be recorded in writing, by
notification, extend the time limit for
furnishing the returns under this
section for such class of registered
persons as may be specified therein:
Provided that any extension of
time limit notified by the
Commissioner of State tax or Union
territory tax shall be deemed to be
notified by the Commissioner.
(7) Every registered person who is
required to furnish a return under sub-
section (1), other than the person
referred to in the proviso thereto, or
sub-section (3) or sub-section (5),
shall pay to the Government the tax
due as per such return not later than
the last date on which he is required to
furnish such return:
Provided that every registered
person furnishing return under the
proviso to sub-section (1) shall pay to
the Government, the tax due taking
into account inward and outward
supplies of goods or services or both,
input tax credit availed, tax payable
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and such other particulars during a
month, in such form and manner, and
within such time, as may be
prescribed:
Provided that every registered
person furnishing return under the
proviso to sub-section (1) shall pay to
the Government, in such form and
manner, and within such time, as may
be prescribed -,
(a) an amount equal to
the tax due taking into account
inward and outward supplies
of goods or services or both,
input tax credit availed, tax
payable and such other
particulars during a month, or
(b) in lieu of the amount
referred to in clause (a), an
amount determined in such
manner and subject to such
conditions and restrictions as
may be prescribed.
Provided further that every
registered person furnishing return
under sub-section (2) shall pay to the
Government, the tax due taking into
account turnover in the State or Union
territory, inward supplies of goods or
services or both, tax payable, and such
other particulars during a quarter, in
such form and manner, and within
such time, as may be prescribed.

(8) Every registered person who is
required to furnish a return under sub-
section (1) or sub-section (2) shall
furnish a return for every tax period
whether or not any supplies of goods
or services or both have been made
during such tax period.

(9) Subject to the provisions of
sections 37 and 38, if any registered
person after furnishing a return under
sub-section (1) or sub-section (2) or
sub-section (3) or sub-section (4) or
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sub-section (5) discovers any omission
or incorrect particulars therein, other
than as a result of scrutiny, audit,
inspection or enforcement activity by
the tax authorities, he shall rectify
such omission or incorrect particulars
in the return to be furnished for the
month or quarter during which such
omission or incorrect particulars are
noticed, subject to payment of interest
under this Act:
Provided that no such
rectification of any omission or
incorrect particulars shall be allowed
after the due date for furnishing of
return for the month of September or
second quarter the thirtieth day of
November following the end of the
financial year, or the actual date of
furnishing of relevant annual return,
whichever is earlier.

(10) A registered person shall not be
allowed to furnish a return for a tax
period if the return for any of the
previous tax periods or the details of
outward supplies under sub-section (1)
of section 37 for the said tax period
has not been furnished by him.
Provided that the Government
may, on the recommendations of the
Council, by notification and subject to
such conditions and restrictions as
may be specified therein, allow a
registered person or a class of
registered persons to furnish the
return, even if he has not furnished the
returns for one or more previous tax
periods.

5. 41 i. Sub-section 1: Amendment to do
away with the word claim and bring
in the concept of availment and
remove the concept of provisional
availment of ITC in this section.
The concept of provisional
availment was there in GSTR-1,2,3
41. Claim Availment of input tax
credit and provisional acceptance
thereof.— (1) Every registered person
shall, subject to such conditions and
restrictions as may be prescribed, be
entitled to take avail the credit of
eligible input tax, as self-assessed, in
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model.
ii. Sub-section 2: May be removed as
this requirement is already flowing
from section 49.

his return and such amount shall be
credited on a provisional basis to his
electronic credit ledger.
(2) The credit referred to in sub-section
(1) shall be utilised only for payment of
self- assessed output tax as per the return
referred to in the said sub-section.
(2) The credit of input tax availed by a
registered person under sub-section (1),
in respect of such supplies of goods or
services or both the tax payable whereon
has not been paid by the supplier shall
be reversed, along with applicable
interest, by the said person in such
manner as may be prescribed:
Provided that where the said
supplier makes payment of the tax
payable in respect of the aforesaid
supplies, along with applicable interest,
the said registered person shall be
entitled to re-claim the amount of credit
reversed by him, as aforesaid, in such
manner as may be prescribed.

6. 42 –
Matching,
reversal and
reclaim of
input tax
credit
In view of the removal of the
provisional ITC availment, as
proposed in amendment to section 41
above and the proposed [and Council
recommended] amendment to section
16 (2)(a) which envisages that ITC
shall be available only when the same
has been declared / communicated by
the supplier in his GSTR-1, the
existing section 42 may be omitted as a
whole.
[To be omitted]
7. 43-
Matching,
reversal and
reclaim of
reduction in
output tax
The existing section 43 may be omitted
as a whole as the concept of 2-way
communication is being replaced by
self-assessment. Further, Credit note
and duplication related checks have
already been incorporated in the
[To be omitted]
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liability GSTR-2B statement.
8. 43A–
Procedure
for
furnishing
return and
availing
input tax
credit
The proposed section may be omitted
as whole. Relevant provisions have
been incorporated at suitable places in
the above amendments. Provisions
related to spike rules would be covered
under proposed amendment in section
37 and 38
[To be omitted]
9. 47 – Levy
of late fees
i. Section 52 read with Rule 67 of the
CGST Rules,2017 requires registered
person to collect tax collected at source
and furnish GSTR-8 to submit
statement of supplies through an e-
commerce operator.
ii. Section 47 is the levy of late fee.
Amendment is bought in Section 47 to
include Section 52 in sub section (1) so
that late fee shall be levied in case
registered persons do not file GSTR-8
by the due date.
(1) Any registered person who fails to
furnish the details of outward or
inward supplies required under section
37 or section 38 or returns required
under section 39 or section 45 or
section 52 by the due date shall pay a
late fee of one hundred rupees for
every day during which such failure
continues subject to a maximum
amount of five thousand rupees.
(2) Any registered person who fails to
furnish the return required under
section 44 by the due date shall be
liable to pay a late fee of one hundred
rupees for every day during which
such failure continues subject to a
maximum of an amount calculated at a
quarter per cent. of his turnover in the
State or Union territory

Table 2 – Consequential / other amendment
10. Section 29:
Cancellation
of Registration
The frequency for persons
filing return under section 10
has been made annual.
Accordingly, clause (b) has lost
significance as the earlier return
filing was frequency was
quarterly.
Similarly, it is envisaged that
return filing frequency for small
taxpayers would be changed
from monthly to quarterly.
Therefore the period under
clause (c) may also require
flexibility, which may not be
(1) ..
(2) The proper officer may cancel the
registration of a person from such date,
including any retrospective date, as he
may deem fit, where,––
(a) a registered
person has contravened such
provisions of the Act or the rules
made thereunder as may be
prescribed; or
(b) a person paying
tax under section 10 has not
furnished the return for a financial
year beyond three months from the
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there if the same is governed by
the said clause.
due date of furnishing the said
return returns for three consecutive
tax periods; or
(c) any registered
person, other than a person
specified in clause (b), has not
furnished returns for a such
continuous tax period of six months
as may be prescribed; or
(d) any person who
has taken voluntary registration
under sub-section (3) of section 25
has not commenced business
within six months from the date of
registration; or
(e) registration has
been obtained by means of fraud,
wilful misstatement or suppression
of facts:
Provided that the proper officer
shall not cancel the registration
without giving the person an
opportunity of being heard:

11. Section 34, 37,
39 and 52
1. Rectification of particulars in
details of outward supplies
under section 37 is presently
linked with furnishing of return
for September month.
Rectification of particulars
under section 39 is linked with
due date of furnishing of return
for September month. ITC
under section 16 is barred in
respect of any invoice or debit
note after the due date of
furnishing of the return under
section 39 for the month of
September following the end of
financial year to which such
invoice or debit note pertains.
2. Law Committee has
recommended that a fixed date
30th November be fixed for the
same as it serves two purposes:
a. In the portal, after the cut-off
date no amendment would be
34. Credit and debit notes.— (1)
Where one or more tax invoices have been
issued for supply of any goods or services
or both and the taxable value or tax
charged in that tax invoice is found to
exceed the taxable value or tax payable in
respect of such supply, or where the goods
supplied are returned by the recipient, or
where goods or services or both supplied
are found to be deficient, the registered
person, who has supplied such goods or
services or both, may issue to the recipient
one or more credit notes for supplies made
in a financial year containing such
particulars as may be prescribed.
(2) Any registered person who issues a
credit note in relation to a supply of goods
or services or both shall declare the details
of such credit note in the return for the
month during which such credit note has
been issued but not later than September
thirtieth November following the end of
the financial year in which such supply
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permitted.
b. It provides one more month
to taxpayer to amend their
returns.
was made, or the date of furnishing of the
relevant annual return, whichever is
earlier, and the tax liability shall be
adjusted in such manner as may be
prescribed:
Provided that no reduction in output tax
liability of the supplier shall be
permitted, if the incidence of tax and
interest on such supply has been passed
on to any other person.
[Amendment to 37 and 39 are
mentioned in Sl.no 2 and 4 of this
Annexure]
52. Collection of tax at source:
(6) If any operator after furnishing a
statement under sub-section (4) discovers
any omission or incorrect particulars
therein, other than as a result of scrutiny,
audit, inspection or enforcement activity
by the tax authorities, he shall rectify such
omission or incorrect particulars in the
statement to be furnished for the month
during which such omission or incorrect
particulars are noticed, subject to payment
of interest, as specified in sub-section (1)
of section 50:
Provided that no such rectification of
any omission or incorrect particulars shall
be allowed after the due date for
furnishing of statement for the month of
September thirtieth day of November
following the end of the financial year or
the actual date of furnishing of the
relevant annual statement, whichever is
earlier
12. Section 49 -
Payment of
tax, interest,
penalty and
other amounts
Government has notified rule
86B mandating restriction in
utilization of ITC in specified
cases. Law Committee has
recommended that it would be
appropriate if a provision under
section 49 is made for such
scenarios.
(4) The amount available in the electronic
credit ledger may be used for making any
payment towards output tax under this Act
or under the Integrated Goods and Services
Tax Act in such manner and subject to such
conditions and restrictions and within such time
as may be prescribed.
(12). Notwithstanding anything contained
in this Act, the Government may, on the
recommendations of the Council, subject
to such conditions and restrictions,
prescribe the maximum proportion of
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output tax liability under this Act or under
the Integrated Goods and Services Tax
Act, which may be discharged through the
electronic credit ledger, by a registered
person or a class of registered person.

13 50- Interest on
delayed
payment of
tax.
After the proposed amendment
in section 37-43, it is proposed
to have explicit provision for
charging interest on ineligible
ITC availed and utilized (net
cash liability). Therefore,
amendment is proposed in sub-
section (3) of section 50.

The portion shown in blue is
amended vide section 112 of
the Finance Act, 2021,
retrospectively w.e.f.
01.07.2017.
(1) Every person who is liable to pay tax
in accordance with the provisions of this
Act or the rules made thereunder, but fails
to pay the tax or any part thereof to the
Government within the period prescribed,
shall for the period for which the tax or
any part thereof remains unpaid, pay, on
his own, interest at such rate, not
exceeding eighteen per cent., as may be
notified by the Government on the
recommendations of the Council:

―Provided that the interest on tax
payable in respect of supplies made
during a tax period and declared in the
return for the said period furnished after
the due date in accordance with the
provisions of section 39, except where
such return is furnished after
commencement of any proceedings under
section 73 or section 74 in respect of the
said period, shall be payable on that
portion of the tax which is paid by
debiting the electronic cash ledger.‖
(2) The interest under sub-section (1)
shall be calculated, in such manner as
may be prescribed, from the day
succeeding the day on which such tax
was due to be paid.

(3) A taxable person who makes an
undue or excess claim of input tax credit
under sub-section (10) of section 42 or
undue or excess reduction in output tax
liability under sub-section (10) of
section 43 shall pay interest on such
undue or excess claim or on such undue
or excess reduction, as the case may be,
at such rate not exceeding twenty-four
per cent., as may be notified by the
Government on the recommendations of
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the Council.
Where the input tax credit has been
wrongly availed and utilised, the
registered person shall pay interest on
such input tax credit wrongly availed and
utilised, at such rate not exceeding twenty-
four per cent., as may be notified by the
Government, on the recommendations of
the Council.
14 54.- Refund of
tax
GSTR-1, 2 & 3 return system
envisaged refund of excess cash
ledger through return under
section 39. However, as the
GSTR-1, 2 & 3 return system
could not be operationalised
and instead GSTR-1, 2B & 3B
system is being followed where
for claiming the refund of
excess balance in cash ledger,
the registered person is required
to file for an application of
refund under FORM GST
RFD-01

Consequent to the amendment
proposed in section 37 to 43, it
is proposed that proviso to sub-
section (1) of Section 54 of the
CGST Act, may be amended to
allow for refund of any balance
in the electronic cash ledger in
such form and manner as may
be prescribed.
Refund of tax.— (1) Any person
claiming refund of any tax and interest, if
any, paid on such tax or any other amount
paid by him, may make an application
before the expiry of two years from the
relevant date in such form and manner as
may be prescribed:
Provided that a registered person,
claiming refund of any balance in the
electronic cash ledger in accordance with
the provisions of sub-section (6) of
section 49, may claim such refund in the
return furnished under section 39 in such
form and manner as may be prescribed









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Agenda Item 9B - Other issues pertaining to GST laws and procedures for consideration of the
GST Council
Agenda Item 9B (i) - Reduction in late fee for FORM GSTR-3B for months from July, 2017 to
April, 2021- Amnesty to clean up pendency in return filing in GST regime
Various references have been received from taxpayers, tax practitioners and associations such
as CAIT regarding waiver of late fee in respect of the past returns in FORM GSTR-3B, which could
not be furnished till now due to various reasons. Multiple tweets have also been received on social
media on the issue. It has been represented that taxpayers, particularly, the small taxpayers, could not
furnish their returns, especially during COVID times, due to lack of knowledge, lack of funds and
other difficulties faced during lockdown. It has also been submitted that most of such small taxpayers
had very minimal tax liabilities, even, including NIL tax liability. It has been further represented that
that due to non-furnishing of returns, interest and late fees have been piling up and have now reached
a sizeable amount, which in some cases is more than the tax amount itself, which has become a major
deterrent for such taxpayers in filing their pending returns.
2. In this regard, it is noteworthy that sub-section (10) of section 39 of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as the ―CGST Act‖) provides that, “A registered
person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax
periods has not been furnished by him.” Thus, taxpayers are not allowed to furnish subsequent
returns.
3.1 Further, Section 47 of the CGST Act provides for levy of late fees for non-furnishing of
FORM GSTR-1, FORM GSTR-3B or FORM GSTR-4 of one hundred rupees per day. Presently,
late fees for delay in furnishing of these forms by the due date is twenty rupees per day (Rs. 10/-
under CGST Act plus Rs 10/- under SGST Act) for NIL filers and fifty rupees per day (Rs. 25/- under
CGST Act plus Rs 25/- under SGST Act) for others. This late fee is subject to a maximum amount of
Rs. 10000/- per return (Rs. 5000/- under CGST Act plus Rs. 5000/- under SGST Act).
3.2 It is pertinent to mention that waiver of entire late fee for non-furnishing of FORM GSTR-
3B for the tax period July, 2017 to September, 2018 was allowed for the taxpayers who furnished
FORM GSTR-3B during the period 22.12.2018 to 31.03.2019 vide notification No. 76/2018-Central
Tax, dated 31.12.2018.
3.3 Further, an amnesty scheme by way of reduction in late fee for tax period from July, 2017 to
July, 2020 was again provided vide notification No. 52/2020 – Central Tax, dated 24.06.2020 and
57/2020-Central Tax, dated 30.06.2020. The late fee was capped at Rs. 500 per return (Rs. 250
CGST + Rs. 250 SGST) and was made Nil for NIL filers, subject to condition that the returns were
filed between 01.07.2020 to 30.09.2020. (For February 2020 to July 2020, the amnesty scheme was
applicable if the returns were filed upto 30.09.2020)
4. It is important to note that besides other concerted efforts by tax administration like hand-
holding of taxpayers and close monitoring of return filing during the filing cycle, these amnesty
schemes have also played a significant role in improving return filing compliance, which has
increased from 55% to 65% approx. earlier to 85% to 90% now. The data suggests that still there is a
gap of approximately 10-12 lakhs returns per month which are yet to be furnished in FORM GSTR-
3B, one of the reasons being the sizeable amount of late fee.
5. In order to alleviate the burden of accumulated late fee on businesses, particularly MSMEs,
and to allow them to furnish their pending tax returns henceforth, the following proposals for
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reduction in late fees for not furnishing FORM GSTR-3B for tax periods from July, 2017 to April,
2021 may be considered: -
i. late fee may be capped to a maximum of Rs 500/- (Rs. 250/- each for CGST &
SGST) per return for taxpayers, who did not have any tax liability for the said tax periods
and are thus required to file NIL return;
ii. late fee may be capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST &
SGST) per return for taxpayers other than those covered in clause (i);
It is proposed that the such reduction/ capping in late fee should be kept conditional, and
proposed to be applied only if the returns are filed during a specified period i.e. from 01.06.2021
(or from a date recommended by GST Council) to 31.08.2021.
6. The proposal was deliberated and approved by the GIC members for the tax periods from
July, 2017 to February, 2021. However, in view of the outbreak of second wave of COVID-19, the
recommendation of GIC could not be implemented. Government has provided various relief measures
for taxpayers which include reduction in rate of interest for delayed tax payment, waiver of late fee
for delayed filing of FORM GSTR-3B, extension of due dates of filing FORM GSTR-1, IFF,
FORM GSTR-4 and FORM ITC-04, relaxation in rule 36(4), etc. and therefore, it was decided that
the said proposal will be taken up subsequently.
7. Accordingly, the revised proposal for conditional reduction of late fees for FORM GSTR-
3B, as proposed in para 5, is placed before the GST Council for deliberation and approval.




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Agenda Item 9B (ii) - Notifying section 112 of the Finance Act, 2021 relating to amendment in
section 50 of the CGST Act
Vide the Finance Act, 2021, various sections of the Central Goods and Services Tax Act,
2017 (CGST Act) and Integrated Goods and Services Tax Act, 2017 (IGST Act) has been
amended. A specific reference is invited to sub-section (2) of section 1 of the Finance Act, 2021,
which states that sections 108 to 123 of the Finance Act, 2021 shall come into force on such date as
the Central Government may appoint by way of a notification in the official Gazzette.
2. Vide section 112 of the Finance Act, 2021, section 50 of the CGST Act has been
amended retrospectively w.e.f. 01.07.2017 to provide for charging interest on net cash
liability. It is also informed that w.e.f. 01.09.2020, the present provision allows charging interest
on net cash liability on prospective basis. This retrospective amendment made through section 112
of the Finance Act 2021 may be notified early to remove any ambiguity on the issue from the date
of implementation of GST, i.e. 01.07.2017 and close pending cases and litigations on this issue.
3. Accordingly, it is proposed that provision of section 112 of the Finance Act, 2021
regarding retrospective amendment of Section 50 of CGST Act may be notified at the
earliest. Since the amendment is retrospective in nature (w.e.f. 01.07.2017), the States will also be
required to amend the corresponding provision in SGST Acts retrospectively w.e.f. 01.07.2017.
Therefore, notifying the provision of section 112 of the Finance Act, 2021 will not have any
ambiguity on the issue.
4. Further, a date may be decided in the Council, by which time the corresponding
amendment in SGST Acts, relating to all other amendments done through the Finance Act, 202,
may be carried out by all the States.
5. Accordingly, the agenda note is placed before the Council for deliberation please.

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Agenda Item 9B (iii) - Proposal for converting quarterly return and monthly payment (QRMP)
Scheme to quarterly return and quarterly payment (QRQP) scheme
It may be recalled that GST Council, in its 42nd meeting held on 5th October, 2020, had
recommended a Quarterly Return and Monthly Payment (QRMP) Scheme for registered persons
having turnover up to Rs. 5 crore, with a slightly modified approach based on existing return system
itself. Accordingly, the same has been implemented with effect from 01.01.2021 for taxpayers with
turnover up to Rs. 5 crores who have been given an option to file returns on quarterly basis, instead of
monthly return. The payment of tax for the first two months of the quarter may be done on self-
assessment basis, net of available ITC or by making payment of 35% of tax liability paid in cash in
the return for last quarter /100% of tax liability paid in cash in the return for last month. Further, for
ease in making payment of tax under this scheme during first two months of the quarter, the system
provides a facility of auto-generated challan to the taxpayers. The scheme also provides an optional
IFF facility to such quarterly taxpayers to furnish the details of such B2B invoices on monthly basis
which the buyers require for availing input tax credit. The scheme has reduced the number of returns
to be filed in a year from 24 (12 GSTR-1 and 12 GSTR-3B) earlier to 8 (4 GSTR-1 and 4 GSTR-
3B) now for such taxpayers.

2.1 The QRMP scheme is available to approximately 89 % of the total tax base. The data
available for first quarter of the scheme has been analysed and is tabulated as below:
Table-1 (Adoption of QRMP Scheme)
Description No. of GSTIN %age of total
Eligible for QRMP 90,92,954 100%
Opted for QRMP 35,53,400 39%
Not opted for QRMP 55,39,554 61%

Table-2 (Change of Option by Tax payers)
QRMP - Frequency Change
(As on 10th May 2021)
Frequency Change No. of GSTINs
Monthly to Quarterly 1,66,646
Quarterly to Monthly 6,34,874

2.2 Analysis of data shown in Table 1 and 2 above suggests the following:
a. Though there are 90,92,954 taxpayers eligible for QRMP scheme, only 35,53,400 taxpayers
have opted for QRMP scheme. Therefore, only 39% of eligible taxpayers have opted for
QRMP scheme.
b. As per trend observed during the period upto 10th May, 2021, a larger number of taxpayers
are opting out of the QRMP scheme, in comparison to those who are opting in for the
QRMP scheme.

3. There is a feedback from the taxpayers that the said scheme does not provide them much
relief as they have to pay tax on monthly basis. Though an option of payment of tax liability for M1
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and M2 of the quarter by making payment of 35%/ 100 % of the cash liability paid in last quarterly/
monthly return respectively, through a system generated challan, has been provided on the GST
portal, however, a large number of taxpayers still choose to pay tax on self-assessment basis after
calculating their actual liability for each month, net of ITC. It is claimed by the trade that such
payment of tax liability every month, in effect, amounts to filing returns on monthly basis only, and
that burden of tax compliances is not substantially reduced for them by this scheme of quarterly return
and monthly payment

4. Considering the feedback received from the stakeholders, it is felt that if the requirement of
monthly payment of tax liability during M1 and M2 of the quarter is done away with and instead, if
the tax liability for the quarter is made payable through quarterly return itself, then it will
resolve the issue of monthly calculation of tax liability, net of ITC, by the taxpayers during first two
months of the quarter. The calculation of net tax liability on self-assessment basis, in such a case, will
be required to be done only on quarterly basis by the taxpayers filing quarterly return. This will
address the issue raised by the QRMP taxpayers. Quarterly filing of return, along with quarterly
payment of tax, would provide substantial relief to small taxpayers and will reduce their tax
compliance burden significantly, as they would be required to do their major tax compliances on
quarter basis only, including assessment of their tax liability and filing of returns.

5. As regard the issue of revenue involved in deferring the requirement of payment of tax
liability for first two months of the quarter to the third month of the quarter, the data of revenue
collected from the taxpayers under QRMP scheme during January-March 2021 is given in the Table 3
below:
Table-3 (QRMP Payments)
(Amount in Rs in Crores)
Month CGST SGST IGST CESS Total
Jan-21 1,404 1,583 908 25 3,919
Feb-21 1,396 1,564 887 21 3,868
Mar-21 2,410 2,946 1,541 28 6,925
TOTAL 5,210 6,092 3,336 74 14,712

5.1 Perusal of the data given in Table 3 above indicates that the total GST collections from
taxpayers, who were in QRMP scheme, during the first quarter of its operation, viz. January-March,
2021 is Rs. 14,712 Crores. During these three months, the total GST collections were Rs. 3,78,429
Crores (Rs. 1,13,143 Crores for January, 2021, Rs 1,23,902 Crores for February, 2021 and Rs
1,41,384 Crores for March, 2021). Accordingly, on an average, the taxpayers who are under
QRMP scheme are contributing about 4% of total revenue. It is also seen that during the first
two months, i.e. January and February 2021, the revenue recovered from QRMP taxpayers was
only to the extent of Rs 3919 Crores and 3868 Crores respectively only, even less than 4% of the
total revenue collected for the said months.

5.2 Therefore, converting this Quarterly Return and Monthly Payment (QRMP) scheme to
Quarterly Return and Quarterly Payment (QRQP), by requiring tax liability for the quarter to be
discharged on quarterly basis along with quarterly return, will only defer the collection of less than
4% of tax to the third month of the quarter. However, it will provide substantial relief to small
taxpayers. Accordingly, it is proposed to convert the present QRMP scheme to QRQP scheme.
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6. The proposal at para 5.2 above is placed before the GST Council for deliberation and for in-
principal approval. The detailed modalities of the scheme will be worked out by Law Committee as
per decision of the Council.
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Agenda Item 10 – Seeking concurrence for levy of COVID Cess on power and pharmaceutical
sector in Sikkim
A proposal along with detailed note on mobilizing additional resources has been received
from the Hon'ble Chief Minister of Sikkim seeking concurrence of the Council to impose 'COVID
Cess' in Sikkim. The proposal states that the corona pandemic and its impact on overall economy and
resources together with additional expenditure commitments has significantly altered all the
parameters of revenue and expenditure necessitating some relook at the assessments made earlier in
February. Sikkim has mentioned that their assessment of resources indicates that their revenue
receipts during current year may have shortfall of around 30% from base estimates as outlined in the
Budget for 2020-21.
2. It is further mentioned in the proposal that since rate of growth GDP is expected to nearly
halve (or even less) compared to the Budget estimates of 10 per cent, there may be a significant
shortfall in flow of resources from Centre, both by way of transfer of taxes from the divisible pool and
also by way of grants. Since three fourths of the State's revenue consists of tax transfers and grants in
aid from the Centre, a decline in these resources would have significant impact on State's revenue.
Given that the expenditure commitments would see an increase over and above what has been budged
for 2020-21 and a significant revenue shortfall would be inevitable, there is need to identify possible
resource generating options.
3. The proposal states that the concerns and commitments of protecting the livelihood
opportunities have raised the requirements for resources. Besides fiscal support from Centre, State
need to augment their own resources, particularly from organized manufacturing industry dominated
by the pharmaceutical units and the hydroelectric sector. It is further mentioned in the proposal that
the structure of economy of Sikkim is significantly different from the rest of the country.
Manufacturing and power sector contribute nearly 55-57 per cent gross value added in the State.
Within manufacturing, there has a dominance of pharmaceutical companies in Sikkim.
Pharmaceutical is one of the sectors which has not been adversely affected during this period of
lockdown.
4. Based on the data available for 2017-18, Annual Survey of Industries, it is estimated that
revenue of Rs. 164 crore may accrue to the State by imposing COVID cess on pharmaceutical sector
at the rate of 1% of the turnover. A 1% COVID cess for a specified period may not in any way affect
the profitability and competitiveness of this sector. Similarly, overall generation of revenue for State
from COVID Cess on power section is estimated to be around Rs. 95 crore in one year, if levied at
0.1% per unit. This cess is a nominal, self-liquidating after the specified period and is unlikely to
affect the users. Sikkim has hydro power and significant hydro power generation. These sectors,
which will be the few of the least affected sectors, could provide additional resources. Accordingly,
Govt. of Sikkim has requested GST Council's concurrence for imposing a COVID Cess on their
output for current year and subsequent two years, upto 2022-23.
5. Accordingly, it is proposed by the State:
(a) that a 'COVID Cess' at the rate of 1 per cent of the turnover of pharmaceutical sector
(excluding the unorganised sector) is imposed for the current year and subsequent two years,
up to 2022-23.
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(b) that a 'COVID Cess' of Rs. 0.1 per unit of power generated is imposed for the current
year and subsequent years, up to 2022-23.
6. In this regard, it is submitted that Article 279A (4)(f) allows the Union and State to raise
additional resources during any natural calamity or disaster. The Article was inserted through the
101st Constitutional Amendment Act, 2016. Article 279A(4)(f) specifies that the GST Council shall
make recommendations to the Union and States on "any special rate or rates for a specified period to
raise additional resources during any natural calamity or disaster"
7. The similar request was received from Govt. of Kerala after the 2018 floods in the Kerala.
Accordingly, the issue was discussed in the GST Council and GoM was constituted under the
Chairmanship of Shri Sushil Kumar Modi, Dy CM, Bihar, to examine the request of Kerala, GoM,
after several rounds of meeting, has recommended to the Council that Kerala be allowed to levy 1%
cess for two years to fund rehabilitation work in the state hit by floods.
8. In view of background stated above, it is submitted that as per Article 279A (4)(f), GST
Council can make recommendations to Union and the States on "any special rate or rates for a
specified period to raise additional resources during any natural calamity or disaster. Accordingly, the
matter may also be placed before GST Council for further discussion and approval.
Encl – Annexure-I
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Annexure-I


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Agenda for 43rd GSTCM Volume 2





Confidential





Agenda for 43rd Meeting
of
the GST Council

28thMay 2021


Volume – 3

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GST Council Secretariat
New Delhi


Dated: 16th May 2021
Notice for the 43rd Meeting of the GST Council Scheduled on 28th May 2021
The undersigned is directed to refer to the subject cited above and convey that the 43rd
Meeting of the GST Council would convene on 28th May 2021 (Friday) through Video Conference.
The schedule of the meeting is as follows:
28th May 2021(Monday) : 1100 Hours onwards

2. Please convey the invitation to the Hon’ble Members of the GST Council to attend the
Meeting.

(-Sd-)
(Tarun Bajaj)
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 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 (with legislature) 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/UT 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. Chairman, GST Network

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TABLE OF CONTENTS
Agenda
No.
Agenda Item Page No.
6 Ad-hoc Exemptions Orders issued under Section 25(2) of Customs Act, 1962 to be
placed before the GST Council for information
(Agenda Note for Ad hoc IGST exemption for specified imported goods when
donated for COVID-19 relief subject to conditions - Ad hoc Exemption Order No.
4/2021-Customs dated 03.05.2021)

7-9
9A Issues recommended by the Law Committee for the consideration of the GST
Council
iv. Proposal to exempt government departments/entities, governmental
authorities/local authorities from the requirement to issue e-invoice
10-12
11
Issues recommended by the Fitment Committee for the consideration of the GST
Council
13-74
i. Covid-19 related recommendations
13-18
ii. Other recommendations related to changes in rates on goods or issuance of
clarifications related to goods
19-35
iii. Recommendations of the Fitment Committee on Services
36-67
iv. Issues placed before the Council in pursuance of directions of the Court-
GST rates on assistive devices
68-71
v. Issues placed before the Council in pursuance of directions of the Court-
Exclusion of ice cream from composition levy
72-74
12 Correction of Inverted Rate Structure on textiles and footwear 75-80
13 Applicability of Goods and Services Tax on Extra Neutral Alcohol (ENA) 81-86
14 GST Revenue Augmentation 87
15 Decisions/recommendations of the 14th IT Grievance Redressal Committee for the
information of the Council along with an agenda for the decision of the Council
88-147
16 Review of revenue position under Goods and Services Tax 148-155
17 Issues related to GST Compensation Cess 156-159
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Discussion on Agenda Items
Agenda Item 6 -Ad-hoc Exemptions Orders issued under Section 25(2) of Customs Act, 1962 to
be placed before the GST Council for information
Ad hoc IGST Exemption Order No. 4/2021-Customs dated 03.05.2021 for specified imported
goods when donated for COVID-19 relief subject to conditions
In continuation of Agenda Item No.6 given in Vol-II, the following information is furnished:
Amidst the surging second wave of the COVID-19 pandemic, requests were received for exempting
COVID-19 relief material donated from abroad, meant for free distribution, from IGST. Certain
COVID related goods such as Remdesivir injection and its API, specified diagnostic markers, medical
oxygen, oxygen concentrators and other oxygen storage and transportation equipment, and COVID-19
vaccines had already been exempted from BCD and/or Health cess for limited period, vide Customs
notification No. 27/2021-Customs dated 20.04.2021, as amended, and No. 28/2021-Customs dated
24.04.2021.
2. In view of the prevailing situation, Ad hoc exemption Order No. 4/2021-Customs dated
3.5.2021 has been issued granting exemption from IGST on those goods for COVID-19 relief
imported free of cost for free distribution, till 30th June, 2021, which are covered under the above
mentioned Customs notifications. This exemption Order is anticipated to ease the tax incidence on
donated COVID-19 relief material meant for free distribution in the country.
3. During the 26th GST council meeting held on 10.3.2018, the Union Finance Minister was
vested with the authority to grant ad hoc exemption under section 25(2) of the Customs Act, 1962,
from IGST on imports of goods and services or both under circumstances of an exceptional nature to
be stated in such order. It was also decided that each such ad hoc exemption order would be placed
before the Council after issue of such order.
4. In the instant case, in the circumstances of exceptional and grave nature, an exemption order
covering imports of specified COVID-19 relief material received free of cost from outside India and
meant for free distribution was issued, exempting IGST on such imports for a limited period (upto
30.6.2021), subject to certain safeguards, vide Ad hoc exemption Order No. 4/2021-Customs dated
3.5.2021 (copy enclosed). This Order satisfies the ingredients of ad hoc exemptions and is in the spirit
of the approval of the GST Council empowering the Union Finance Minister to issue an ad hoc
exemption from IGST. The Central Government has also exempted basic customs duty.
Consequently, the specified goods listed in the Annexure-I, covered by adhoc exemption order shall
not attract any Customs duty and IGST. As stated above, IGST exemption applies upto 30.6.2021.
5. The Ad hoc Exemption Order is placed before the GST Council as Annexure-VI at pp.20-21
of Volume-I of the Agenda Note, for information.



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Annexure-I
List of goods covered by IGST exemption under Ad hoc Exemption Order No. 4/2021-Customs
dated 03.05.2021
S.No. Chapter or heading or
sub–heading or tariff
item
Description of goods
(1) (2) (3)
1. 29 Remdesivir Active Pharmaceutical Ingredients.
2. 29 Beta Cyclodextrin (SBEBCD) used in manufacture of Remdesivir,
subject to the condition that the importer follows the procedure set out in
the Customs (Import of Goods at Concessional Rate of Duty) Rules,
2017.
3. 30 Injection Remdesivir.
4. 3822, 3002 Inflammatory Diagnostic (marker) kits, namely- IL6, D-Dimer, CRP(C-
Reactive Protein), LDH (Lactate De-Hydrogenase), Ferritin, Pro
Calcitonin (PCT) and blood gas reagents.
5.
9019 20, 9804
Oxygen concentrator including flow meter, regulator, connectors and
tubings.
6.
2804 40
Medical Oxygen
7.
8421 39
Vacuum Pressure Swing Absorption (VPSA) and Pressure Swing
Absorption (PSA) oxygen plants, Cryogenic oxygen Air Separation
Units (ASUs) producing liquid/gaseous oxygen.
8.
7311
Oxygen canister.
9.
9018
Oxygen filling systems.
10.
7311
Oxygen storage tanks
11.
9018
Oxygen generator
12.
7311
ISO containers for Shipping Oxygen
13.
7311, 8418 or 8419
Cryogenic road transport tanks for Oxygen
14.
7311, 8418 or 8419
Oxygen cylinders including cryogenic cylinders and tanks
15.
Any Chapter
Parts of goods at S.No.1 and 3 to 10 above, used in the manufacture of
equipment related to the production, transportation, distribution or
storage of Oxygen, subject to the condition that the importer follows the
procedure set out in the Customs (Import of Goods at Concessional Rate
of Duty) Rules, 2017.
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16.
9019
Any other device from which oxygen can be generated
17.
9018 or 9019
Ventilators, including ventilator with compressors; all accessories and
tubings; humidifiers; viral filters (should be able to function as high flow
device and come with nasal canula).
18.
9018
High flow nasal canula device with all attachments; nasal canula for use
with the device.
19.
6506 99 00
Helmets for use with non-invasive ventilation.
20.
9019 Non-invasive ventilation oronasal masks for ICU ventilators.
21.
9019 Non-invasive ventilation nasal masks for ICU ventilators.
22.
3002 COVID-19 vaccine.
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Agenda Item 9A(iv) - Proposal to exempt government departments/entities, governmental
authorities/local authorities from the requirement to issue e-invoice
In terms of Notification No. 13/2020 – CT dated 21.03.2020, as amended, provisions related
to issuance of e-invoice in respect of B2B supplies were rolled out, in phases, as below:
a. w.e.f. 01st October, 2020 first phase of e-invoicing was rolled out for the taxpayers having
aggregate turnover exceeding Rs. 500 Cr in any preceding financial year from 2017-18
onwards;
b. w.e.f. 01st January 2021 second phase of e-invoicing was rolled out for the taxpayers
having aggregate turnover exceeding Rs. 100 Cr in any preceding financial year from
2017-18 onwards; and
c. w.e.f. 01st April 2021 third phase of e-invoicing was rolled out for the taxpayers having
aggregate turnover exceeding Rs. 50 Cr in any preceding financial year from 2017-18
onwards.

2. In terms of the aforesaid notification, the following registered persons are exempted from
issuance of e-invoice, even if their aggregate turnover exceeds Rs 50 crores:
a. Special Economic Zone Units
b. Insurers
c. Banking companies or financial institutions, including a non-banking financial company
(NBFC)
d. Goods Transport Agency (GTA) supplying services in relation to transportation of goods
by road in a goods carriage
e. Suppliers of passenger transportation service
f. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex
screens
g. Persons registered in terms of rule 14 of CGST Rules (OIDAR)
3. A reference was received from Government of West Bengal to exempt Government
departments and local authorities from the requirement of issuance of e-invoice for reducing
compliance burden of said entities. Accordingly, the issue was deliberated by the Law Committee in
its meeting held on 17.03.2021. Law Committee has recommended exempting Government
departments and local authorities from the requirement of issuance of e-invoice.
4.1 The impact of proposed exemption has also been analysed in terms of total B2B invoices issued
by Government departments and Local authorities vis-à-vis total B2B invoices issued and percentage
of input tax credit (ITC) passed on such invoices. The data, for number of such GSTINs based on
turnover for FY 2019-20 and for value of B2B supplies and ITC passed by such entities for a sample
month of December, 2020, is tabulated below:




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Table-1 (No. of GSTINs)
Turnover Slab
on F.Y 2019-20 No. of GSTIN
%age of
Rest of All
against total
%age of
GOV+LOC against
total

Governm
ent
Local
Bodies
Rest of all

50 to 100 Cr 38 10 31810 99.85% 0.15%
100 to 500 Cr 62 32 26836 99.65% 0.35%
Above 500 Cr 48 17 7016 99.08% 0.92%
Grand Total 148 59 65662 99.69% 0.31%

Table-2 (B2B Supply Value)
(Amounts in Cr.)
Turnover Slab
on F.Y 2019-20 B2B Supply Value
%age of Rest of
All against total
%age of
GOV+LOC
against total

Governm
ent
Local
Bodies
Rest of all

50 to 100 Cr
164.71 7.25 1,68,244.82 99.9% 0.1%
100 to 500 Cr
601.91 226.48 3,80,320.77 99.78% 0.22%
Above 500 Cr
13,914.54 647.45 7,23,300.89 98.02% 1.98%
Grand Total
14,681.16 881.18 1271866.47 98.8% 1.2%

Table-3 (ITC Flow)
(Amounts in Cr.)
Turnover Slab
on F.Y 2019-20 ITC Flow
%age of Rest
of All against
total
%age of GOV+LOC
against total

Governm
ent
Local
Bodies
Rest of all

50 to 100 Cr
20.48 1.27 22,360.22 99.9% 0.1%
100 to 500 Cr
70.05 36.20 53,534.87 99.8% 0.2%
Above 500 Cr
849.38 102.82 1,05,430.23 99.1% 0.9%
Grand Total
939.91 140.29 1,81,325.32 99.41% 0.59%


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4.2 Analysis of data shown in Table 1, 2 and 3 above suggests the following:
a. Out of total GSTINs required to issue e-invoice, number of GSTINs for government
departments and local authorities constitute only 0.31%.
b. Value of B2B Supply made by such government departments and local authorities is 1.2% of
all B2B supplies.
c. ITC passed through B2B invoices by such government departments and local authorities is
0.59% of total ITC flow.
4.3 Thus considering that contribution of government departments and local authorities to value
of B2B supplies as well as ITC flow is a miniscule percentage i.e. 1.2% of value of total B2B supplies
and 0.59% of total ITC flow respectively, the proposal to grant exemption to government departments
and local authorities from requirement of issuance of e-invoice, as recommended by Law Committee
in its meeting dated 17.03.2021, may be considered.
5. The issue is placed before the GST Council for deliberation and approval.
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Agenda Item 11: Issues recommended by the Fitment Committee for the consideration of the
GST Council
Agenda Item 11(i): Covid-19 related recommendations
This agenda note deals with representations/recommendations received from States,
Ministries and other stake holders (trade and individuals) seeking reduction/exemption in GST rates
on items being used for Covid-19 relief. These representations/recommendations can be broadly
classified under two categories as under, -
A. Requests for enhancement of the scope of Ad hoc Exemption Order No. 04/2021-
Customs dated 03.05.2021 for Covid-19 relief goods received from abroad; and
B. Requests for reduction in GST rates on Covid-19 related drugs, vaccines and other
goods/equipment.

In certain cases, petition for relief has been directly filed before the Hon’ble High Courts, mostly
relating to personal import of concentrator.

2. These issues have been considered in detail by the Fitment Committee and are summarised
below, -

A. Requests for enhancement of the scope of Ad hoc Exemption Order No. 04/2021-
Customs dated 03.05.2021

2.1 Amidst the surging second wave of the COVID-19 pandemic, requests have been received for
exempting COVID-19 relief material donated from abroad and meant for free distribution, from
customs duties, including IGST. In view of the exceptional circumstances, an Ad Hoc Exemption
Order No. 4/2021-Customs dated 3.5.2021 was issued granting exemption from IGST on those goods
for COVID-19 relief imported free of cost for free distribution, till 30th June, 2021. The Basic
Customs Duty (BCD) and Health Cess has also been exempted on these items vide separate
notifications.

2.2 In this regard, representations have been received from various States, Ministries and other
offices of Centre as well as other stakeholders to extend the IGST exemption to goods specified in the
Ad hoc Exemption Order No. 04/2021-Customs dated 03.05.2021, when these are imported, -
(a) at own cost by UN and its agencies, especially WHO, UNICEF and UNDP for free
distribution to States and other agencies;
(b) at own cost by donor organisations based in India, whether governmental, non-governmental
or purely private, for free distribution or donation to government; and
(c) by corporates by their Corporate Social Responsibility (CSR) funds, for free distribution
either to State or any hospitals/facilities involved in Covid-19 management.
2.3 The above representations were discussed in the Fitment Committee and the Committee was
of the view that there was merit in extending the IGST exemption to import of the specified Covid
relief material by any entity, at its own cost, for free distribution or donation to government or
hospitals/facilities involved in Covid-19 management, subject to such conditions as may be prescribed
to prevent misuse of this exemption. This exemption may terminate on the same date as Ad hoc
exemption terminates (30.6.2021). The proposal for consideration of the Council is that exemption
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from IGST be granted to import by any person if such goods are supplied to Central or State
Government or to any not-for-profit hospital/facility involved in Covid 19 management. The
condition of this exemption may be that the (i) importer shall submit a letter from the donee that the
importer shall be donating the imported goods to them, and (ii) the importer shall, within 3 months
from imports, submit a letter from donee that imported goods were received by them.

B. Requests for reduction in GST rates on Covid-19 related drugs, vaccines and other
goods/equipment
3.1 Representations have also been received from various stakeholders for reduction in GST rates
on specified goods being used in Covid-19 relief in the current wave of the pandemic. These requests
are broadly related to reduction in GST Rates on, -
(a) Covid-19 Vaccine;
(b) Covid-19 related drugs and medicines; and
(c) Other goods/equipment being used for Covid management and relief.

3.2 While examining these views, the Fitment Committee was broadly of the view that while
there is need for providing relief by way of GST concessions for identified Covid-19 relief items,
certain aspect relevant to decision making need consideration, which are as follows:
(i) Relief may be considered only by way of rate reduction
(ii) Upfront exemption to manufactured goods is not desirable as exemption adversely impact
domestic manufacturing
(iii) The general lowest rate of GST is 5%. Therefore, on merit 5% rate be considered where
concession is to be considered. Any special lower rate may not be opted for considering
5% is a nominal rate, it the lowest standard rate that applies to other lifesaving medicines.
(iv) The purchase of goods by Government may not require exemption as cost is paid by the
Governments. Tax also goes to Government.
(v) GST concessions should essentially be considered on those items which are critical and are
procured by patients.
(vi) Zero rating of items for domestic consumption is not permissible in law.

3.3 Further, the Fitment Committee also took note of the Writ Petitions being filed in various
High Courts of the country seeking IGST exemption on personal imports of Oxygen Concentrators
(received as gifts).
3.4 The proposal for reduction in IGST rate on Oxygen Concentrators and other critical goods
and equipment for Covid-19 was discussed in detail and the recommendation thereon are mentioned
in para 3.7 below.

Covid-19 Vaccine
3.5 With regard to Covid-19 Vaccine, the Committee was of the view that such vaccines are
already in the lowest GST rate slab of 5%. These are almost entirely being procured by the Centre and
State governments and being provided free of cost. GST paid would ultimately accrue to Centre and
the States itself. On the other hand, granting complete exemption would result in increased cost of
production because the domestic manufacturers of Covid-19 vaccines would not be able to take Input
Tax Credit (ITC) on tax paid on their input goods and services. Accordingly, the Fitment Committee
was of the view that Covid-19 vaccines may continue at 5% rate.


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Covid-19 related drugs and medicines
3.6 With regard to Covid-19 related drugs and medicines, including anti-body cocktails, the
Fitment Committee noted that most of the drugs being used in Covid-19 management are already at a
concessional rate of 12% or 5%. Further, the Covid-19 treatment protocol was also undergoing
changes based on new learnings and studies on efficacy of drugs and medicines being used. That
being so, the committee while in principle arriving at a view that the GST rate on such Covid-19
related drugs and medicines should be lower, it may not be feasible to identify any particular drug that
is meant for Covid cure. Committee also observed that recently Remdesivir has also been removed by
WHO from official medical list. If, Ministry of Health and Family Welfare, later recommends any
medicine specifically the same may be examined for GST concession.

Other goods/equipment being used for Covid management
3.7 The Fitment Committee also discussed the representations on reduction in Other
goods/equipment being used for Covid management and relief and recommendations of the
Committee in this regard are as under, -
S.
No.
Description of Goods
Present
GST Rate
(%)
GST Rate
recommended
by Fitment
Committee
(%)
Comments
A. Recommendation of Fitment Committee for change in GST rate on Goods
1. Medical Grade Oxygen 12% 5% till
31.07.2021
• Keeping into account the
present situation, Fitment
Committee took a view to
reduce GST on Medical
Oxygen, Oxygen
Concentrators and other
oxygen generating
equipment to 5% until 31st
July, 2021.
• Full exemption from GST
is not recommended as
that would result in
increased cost of
production of these goods
because their domestic
manufacturers would not
be able to take ITC on tax
paid on their input goods
and services.
2. Oxygen
Concentrators/generator
12% 5% till
31.07.2021
3. Pulse Oximeters including
personal imports
12% 5% till
31.07.2021
• Considering the fact that
Pulse Oximeters find
significant use in Covid-
19 home management,
Fitment Committee
recommended reduction in
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S.
No.
Description of Goods
Present
GST Rate
(%)
GST Rate
recommended
by Fitment
Committee
(%)
Comments
GST Rate to 5% until 31st
July, 2021.
4. Covid Testing Kits 12% 5% till
31.08.2021
• Owing to the increased
demand for Covid-19
testing during the current
wave of the pandemic, the
Fitment Committee was of
the view that the GST rate
on such testing kits be
reduced to 5% till
31.08.2021.
B. Items where no change of GST Rate proposed by Fitment Committee
1. PPE Kits 5% No change • PPE Kit and mask are
already at 5%. There is
substantial production of
these goods in the country.
• Hand sanitizer is a
common use item. Even
soap is at 18%. Masses
use soap.
• Ventilators is not an item
for procurement by an
individual. It is not as
critical and short supply as
oxygen concentrator. 12%
is a reasonable rate as
applies to all medical
equipment and hence it
may continue at 12%
• Full exemption from GST
is not recommended as
that would result in
increased cost of
production of these goods
because their domestic
manufacturers would not
be able to take ITC on tax
paid on their input goods
and services
2. N95 masks/ triple layer
masks, Surgical masks
5% No change
3. Ventilators 12% No change
4. Hand sanitizers 18% No change
5. Temperature check
equipment
18% No change
6. Ambulances 28% No change • The Fitment Committee
did not recommend any
change in GST rate as a
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S.
No.
Description of Goods
Present
GST Rate
(%)
GST Rate
recommended
by Fitment
Committee
(%)
Comments
majority these ambulances
are modified after
clearance as normal
vehicles.
• Ambulances are for
institutional sale.
7. Portable Hospital Units 18% No change • The Fitment Committee
was of the view that such
Portable Hospital Units
have very limited use in
the context of Covid-19
management.
• The Fitment Committee
accordingly did not
recommend any change in
GST rate on these goods.
8. Raw materials for
manufacture of Covid
Testing Kits
Applicable
Rate
No change • The Fitment Committee
was of the view that these
are goods are in the nature
of inputs and the GST
paid on such goods is
available as ITC to the
buyers thereof.
• Accordingly, the Fitment
Committee did not
recommend any change in
GST rate on these goods.
9. RT PCR machines 18% No change
10. RNA extraction machines 18% No change
11. Genome sequencing kits and
machines
12% / 18% No change
12. Specified Inflammatory
Diagnostic Kit namely D-
Dimer, IL-6, Ferritin and
LDH
12% No change • The Fitment Committee
was of the view that these
diagnostic kits are used
for diagnosis of diseases
other than Covid-19 also.
• Accordingly, the Fitment
Committee did not
recommend any change in
GST rate on these goods.

3.8 It is also to mention that in a petition filed before the Hon’ble Delhi High Court (WP No.
16554/2021) the Hon’ble Delhi High Court, vide order dated 21.5.2021, has given relief and has
interpreted that exemption is available to the petitioner from IGST, on personal import of concentrator
as gift, vide an entry 607A of notification 50/2017-Cus. This entry was inserted on the
recommendation of GST Council (23rd meeting held on 10.11.2017.). Said entry 607A provides
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exemption for lifesaving drugs and medicines for personal use, supplied free of cost by overseas
supplier’ subject to the similar condition of certification by prescribed medical authorities. In the
process, Hon’ble Court has also waived of the condition as prescribed as being impractical and
inefficacious and replaced the requirement of certification by medical authority in each case by a self-
certification by the importer. Court has stated that drugs include oxygen concentrator and therefore
covered under this exemption. It may be mentioned that Court was apprised the GST Council shall be
looking at the issues of General exemption from GST on COVID relief items. Hon’ble Council shall
be updated of action taken in the matter during the meeting of the Council.
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Agenda Item 11(ii): Other recommendations of the Fitment Committee related to changes in
rates on goods or issuance of clarifications related to goods
Recommendations made by the Fitment Committee for making changes in GST rates or for
issuance of clarification in relations to goods
S.
No.
Description HSN
Present
GST rate
Requested
GST rate
Comments
1. Diethylcarbamazine
tablet (DEC)
supplied to WHO,
India by SEZ unit
30 12% Nil 1. Diethylcarbamazine tablet (DEC)
is a part of treatment regime
recommended by World Health
Organization (WHO) and is used
in the Mass Drug Administration
to eliminate Lymphatic Filariasis
(LF) as a Public Health problem
through its Global Programme to
Eliminate Lymphatic Filariasis
(an endemic disease). India is
also a beneficiary of this
programme. It is estimated that
51 million people globally (2018)
suffer from this deadly disease,
with major share in India.
2. World Health Organization
(WHO) has been supporting the
LF elimination programme in
India by providing drugs,
diagnostics and technical support.
3. There is only one company
located in an SEZ unit which is
the sole donor of this medicine to
WHO India
4. In normal course, free supplies
when made in the domestic tariff
area, no GST is attracted.
However, in this particular case
the supplier is located in SEZ.
5. As per section 30 of the SEZ Act,
2005, supplies to Domestic Tariff
Area from SEZ are chargeable to
duties and tax as is leviable on
such goods when imported.
Hence, even though, the SEZ
supply to WHO is free of cost
(donation) but being on par with
imports, it attracts GST of 12%
(as applies to the said medicine).
6. The company has paid GST on
donations made to WHO and has
put on hold further supplies
unless the matter has been sorted.
Ministry of Health and Family
Welfare has also recommended
early resolution of the issue.
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7. Fitment Committee considering
the importance of this medicine,
and also realising that domestic
units when making exempted or
gift supplies are also required to
reverse Input tax credit, felt that
instead of exempting the supply,
it would be appropriate to reduce
the GST rate on this item from
12% to 5% on
Diethylcarbamazine tablet
(DEC).
2. All goods
(although specific
case pertains to Re-
imported aircraft
parts)
As
applicable
Clarificatory
amendment
1. Briefly, the issue is that re-import
of goods sent abroad for repair
attracts customs duty and IGST
on a value equal to the repair
value, insurance and freight.
2. The method of valuation and
exemption to the value in excess
of repair, insurance and freight
cost has been provided through
notification No. 45/2017-Cus.
3. In fact the issue of 5% imports on
imports of such repaired items for
civil aviation industry has been
discussed at length in the context
of Ministry of Civil Aviation and
industry request that credit of this
tax is not eligible to them as ITC
in view of the restriction imposed
on them for taking ITC on input
goods. In other words, industry
has been fully aware that this levy
is attracted.
4. However, the CESTAT in the
case of Interglobe Aviation
Limited vs. Commissioner of
Customs, IGI Airport, New Delhi
vide its order No. 51226 –
51571/2020 has taken a view that
no IGST shall be chargeable on
such imports, including on the
value of repair, insurance and
transport taking technical view on
the relevant notification, which
has existed since 1996 and was
continued in GST, merely citing a
reason that while in the preamble,
IGST has been mentioned but at
other places in the notification,
IGST has not been mentioned (
but only duties of customs has
been mentioned- which is a
continuation from Pre-GST
regime). Accordingly, it has taken
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a view that the intention is to
exempt IGST.
5. The intention has clearly been to
impose customs duty and IGST
on re-import of goods on a value
that represents the cost of repair,
insurance and freight. In the pre-
GST period also, reimport
attracted basic customs duty and
additional duty equal to excise
and the special additional duty of
customs in lieu of VAT. As stated
above, the pre-GST dispensation
was carry forwarded to GST and
in place of additional duty of
Customs, IGST was duly
replaced in the preamble of the
notification, while the phrase,
“duty of customs” continued as is
at the entry level.
6. The judgment has been
challenged in the Hon’ble
Supreme Court.
7. In the above background, it
would be appropriate if the issue
is explicitly clarified, and if
required clarificatory amendment
be made in the notification in
consultation with Law Ministry,
along with detailed clarification.
8. The Fitment Committee agreed
with the proposal and
recommends that the decision of
the GST Council that re-import of
goods sent abroad for repair
attracts IGST on a value equal to
the repair value, insurance and
freight, may be explicitly
clarified, making the intention
clear, in the light of discussion
that has taken place in the
Council meetings on the issue.
3. Parts of the
Sprinklers/Drip
irrigation
system if
supplied
separately
8424 12% Clarification
/
Amendment
1. The issue of GST on sprinkler
system including lateral has been
discussed in past in the Council.
Initially, GST rate on nozzles for
sprinkler system was prescribed
at 12%.
2. Subsequently, in 24th GST
council meeting, dated 16th
December, 2017, the Hon’ble
Minister from Karnataka
suggested that rate of tax on the
components specifically used for
micro irrigation works should be
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brought down from 18% to 12%.
The council referred the matter to
the fitment committee.
3. In 25th GST council meeting,
dated 18th January, 2018, the
fitment committee recommended
concessional 12% GST for micro
irrigation systems, namely,
sprinklers, drip irrigation
system, including laterals, falling
under heading 8424. This
recommendation was approved
by the Council.
4. The entry 195B was inserted
under Schedule II of notification
no. 1/2017- Central Tax (Rate),
dated 28th June,2017 . This entry
read as below
“195B (heading 8424) Sprinklers;
drip irrigation system including
laterals; mechanical sprayers-
12%”
Nozzles for sprinkler system
(falling under heading 8524) also
attract GST of 12% vide entry
195AA.
5. However, recently, doubts were
raised whether the parts of the
sprinklers/drip irrigation system
would attract 12% or 18% GST
rate, if supplied separately rather
than along with the sprinkler/drip
irrigation systems.
6. To remove these doubts, Fitment
Committee recommends issuance
of clarification to the effect that
the parts of the sprinklers/drip
irrigation system falling under
heading 8424 (laterals and
nozzles) attract GST rate of 12%,
whether these are supplied
separately or along with
sprinklers/drip irrigation system.
Other parts and components,
falling under headings other than
8424, attract the GST rate as
applicable for that respective
heading.
4. Toy balloons
made up of
natural rubber
latex
9503 5% Clarification
/
Amendment
1. Ambiguity over the classification
of ‘toy balloons made of natural
rubber latex’ arose because of the
substitution of S. No. 259A of the
notification Nos.1/2017- Central
Tax (Rate), dated the 28th June,
2017 vide Notification No.
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41/2017- Central Tax (Rate),
dated 14th November 2017.
2. According to above entry, ‘toy
balloons made of natural rubber
latex’ is classifiable under
heading 4016 or 9503.
3. However, clause (h) of HSN
Explanatory notes to heading
4016 clearly specifies that the
said heading does not cover “Toy,
games and sports requisites and
parts thereof of
Chapter 95”.
4. Also, clause (vii) under section
(D) HSN Explanatory notes to
heading 9503 clearly specifies
that the said CTH includes ‘toy
balloons’.
5. Therefore, entries against S. No.
259A of the notification
No.1/2017-Central Tax (Rate),
dated the 28th June, 2017 needs
to be modified to make it
applicable for heading 9503 only.
6. Suitable changes in the Customs
side have already been done in
the Union Budget 2021-22.
7. Fitment committee recommends
to issue necessary clarification/
amendment to the notification
No. 1/2017-Central Tax (Rate),
dated the 28th June, 2017 to
provide that ‘toy balloons’ are
classifiable under heading 9503.

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Issues not recommended for change in GST Rate and Issues deferred by the Fitment Committee
for further examination in relation to goods
S.
No.
Description HSN
Present GST
rate
Requested
GST rate
Comments
1. Fortified Rice
Kernel (Premix)

1904


18%


Rate
reduction
1. Fortified rice kernel
(premix) is produced at
substantive value
addition over normal
rice. Fortified Rice
Kernel (FRK) is a
reconstituted rice grain
made from rice flour,
vitamins, and minerals
using hot extrusion
technology. Thus, FRK is
a value-add product. So
exempting it would not
be appropriate.
2. Fitment Committee
deferred the issue on the
grounds that the matter
will be examined when
Fortified rice becomes
part of the Public
distribution system.
3. Also Fitment required
that more information be
collected from the
Department as regards
estimated volumes,
pricing, input costs, and
value addition in the
manufacture of fortified
rice kernel for taking a
view.
2. Branded Pulses
and Food Grains
5% Nil 1. The GST Council
discussed rate on food
grains put up in unit
container and bearing a
brand name in great
detail and recommended
5% GST rate on the
same.
2. Subsequently, to check
tax avoidance certain
changes were made in the
provision, including that
if a dealer foregoes an
actionable claim against
his brand name, no GST
will apply.
3. There is adequate
protection in GST for
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S.
No.
Description HSN
Present GST
rate
Requested
GST rate
Comments
small suppliers. Such
small suppliers are
covered under turnover
threshold exemption
from GST. Further, small
suppliers can opt for the
composition scheme and
pay tax at the rate of 1%
of the turnover. This
limit for the composition
scheme has been
increased by GST
Council to Rs 1.5 Crore.
4. Presently, due to the rate
differential between
branded and unbranded
food items, the small and
medium enterprises get
some advantage and thus
are benefitted.
5. Branded food is sold at a
premium over the
unbranded food items.
6. The issue of rate
reduction on branded
pulses and food grains
was placed before the
GST Council in its 31st
and 37th meetings, but
was not recommended by
the Council.
7. Fitment Committee
accordingly, deferred the
issue and desired more
information be collected
in the matter.
3. Oil used for
lighting divine
lamps generally
called as Deepam
Oil
1515/3
307
5% 1. Normally, lamp (Pooja)
oil is classified under HS
15180040 and
accordingly attracts 12%
GST.
2. In case of edible oils, 5%
GST is leviable on those
vegetable oils which are
not chemically modified
attract 5% GST.
3. Therefore this issues
requires more
information regarding
deepam oil that is said to
be classified under
heading 3307 and attract
higher GST rate
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S.
No.
Description HSN
Present GST
rate
Requested
GST rate
Comments
4. Baker's Yeast 210210
20
12% 5% 1. Baker’s yeast is a
commercial preparation
consisting of dried cells
of one or more strains of
the fungus
Saccharomyces
cerevisiae, used as a
leavening in baking. It is
produced on industrial
scale. It is already at
concessional GST rate of
12%.
2. The GST rate has been
fixed on the pre-GST tax
incidence on these goods.
3. Further, all goods in [HS
2102] attract 12% GST.
4. The request to reduce
GST on baker’s yeast has
already been put before
the GST Council (28th,
31st and 37th meeting)
and has not been
recommended.
5. Fitment Committee
deferred the issue to
deliberate further on the
issue.
5. Scented sweet
supari
2106
90 30
18% 5% 1. Pre-GST supari attracted
Central Excise duty at the
rate of 12.5%. The
weighted average VAT
rate was around 5%.
Therefore, based on the
pre-GST tax incidence
the rate for supari was
kept at 18%.
2. Reducing the GST rates
on betel nuts (supari)
would reduce protection
to the domestic supplier’s
vis-à-vis the imports.
3. The request to reduce
GST on scented sweet
supari has already been
put before the GST
Council (31st and 37th
meeting) and has not
been recommended.
4. Fitment Committee
deferred the issue to
deliberate further on the
issue
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S.
No.
Description HSN
Present GST
rate
Requested
GST rate
Comments
6. De-oiled Rice
Bran (DORB)
2306 Nil 5% 1. Rice Bran was initially at
Nil rate. The GST
Council in its 25th
Meeting held on
18.01.2018 decided to
levy 5% GST on Rice
Bran and Nil GST on De-
Oiled Rice Bran.
2. This issue was further
discussed in the GST
Council in its 26th
Meeting held on 10.03.
2018.
3. However, as mention by
the Department of Food
has mentioned, Rice Bran
is now being sold as de-
oiled rice bran. This is
causing revenue loss on
one hand and reduced
availability of rice bran
for oil extraction.
4. Levy of 5% duty on De-
oiled-Rice Bran will put
it at par with other inputs
to cattle feed such as oil
meal cakes (other than
cotton oil cake) and will
also simplify the input
chain.
5. Fitment Committee felt
that this issue would have
ramifications for the
agriculture sector and
recommended that the
matter may be deferred
for assessing the
implication in detail with
further inputs.
7. Unmanufactured
Tobacco






2401 28% +
compensation
cess 65%/
71%
5% 1. GST Council has
recommended highest tax
rate of 28% on
unmanufactured tobacco
(except tobacco leaves on
which tax rate is 5%)
2. This is in consonance
with the policy to tax
tobacco and tobacco
products at the highest
rate as they are sin goods.
3. Further, burden of tax is
not on farmers as tax on
tobacco leave is 5%
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Description HSN
Present GST
rate
Requested
GST rate
Comments
under RCM.
4. As this would have
significant revenue
implications, the Fitment
Committee deferred the
issue.
8. Smokeless
tobacco products
2403
99
28% +
compensation
cess at varying
rates
Requested to
study the
impact of
GST rates
which leads
to evasion of
tax on
tobacco
products
1. The GST Compensation
cess rates on smokeless
tobacco products were
fixed based on the pre-
GST tax incidence of
tobacco products as
recommended by the
GST Council.
2. The request was to
conduct a study of the
impact of GST rates on
the extent of evasion of
GST.
3. Fitment Committee
deferred the issue till the
study is conducted.
9. COVID cess on
Tobacco product
24 Nil Not specified 1. As per Article
279(A)(4)(f) of the
Constitution of India, the
GST Council may
recommend any special
rate or rates for a
specified period, to raise
additional resources
during any natural
calamity or disaster.
2. However, this requires
detailed examination and
further information as to
implication of imposition
cesses to the revenue.
3. Further, Fitment may not
be in a position to take a
view on any new cess.
10. Raw Tobacco
Leaves
2401 Clarification
is needed on
the tax rate
on the sale of
"Raw
Tobacco
Leaves"
1. The issue requires further
elaboration as to what is
the exact issue for
clarification.
2. Accordingly, fitment
deferred the issue.
11. Lime Stone
(Calcareous
Building stone)
whether rough
2515
20 90
18% 5% 1. Napa stone is a variety of
dimensional limestone.
2. At the time of initiation
of GST, polished Napa
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Description HSN
Present GST
rate
Requested
GST rate
Comments
slabs or polished
slabs (Polished
Napa Stone)
stone tiles attracted 28%
GST based on pre-GST
tax incidence.
Subsequently during the
22nd GST Council
meeting held on 6th
October, 2017, the GST
Council recommended
reduction in GST rates on
polished Napa stone from
28% to 18%.
Subsequently the issue
was discussed in the 25th
GST Council meeting
held on 18th January,
2018, wherein the
Council did not agree to
the request on the
grounds that 18% GST is
applicable on types of
flooring materials and an
ad valorem rate will
ensure lower tax in
absolute terms on low
priced items.
3. In the 28th GST Council
meeting held on 21st
July, 2018 it was decided
to reduce GST rates on
Kota stone and similar
stones (except marble
and granite) other than
ready to use mirror
polished stones. The
entry in the notification
was drafted in
consultation with the
State of Rajasthan and
Andhra Pradesh.
4. Currently all polished
stone tiles; including
other similarly place
stones like Kota stone as
well as ceramic tiles
attract 18% GST rates.
5. Fitment Committee
desired that GST Council
has taken a conscious
view and this issue has
been deliberated at
length.
6. It desired that additional
information may be
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Description HSN
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rate
Requested
GST rate
Comments
collected from states
about production
volumes, revenue
implication, other stones
similarly placed etc.
12. Inclusion of ATF
and Natural Gas
under GST
2710/2
711
- - 1. As per Article 279 A (5)
of the Constitution, the
Goods and Service Tax
Council shall recommend
the date on which the
goods and services tax be
levied on petroleum
crude, high speed diesel,
motor spirit (commonly
known as petrol), natural
gas and aviation turbine
fuel (ATF). As per the
section 9(2) of the CGST
Act,2017, inclusion of
these products in GST
will require
recommendation of the
GST Council. So far, the
GST Council has not
made any
recommendation
for inclusion of
petroleum crude under
GST.
2. The Council shall take a
view on the issue at
opportune time.
13. Oncology
medicine
30 12% Nil 1. As per serial number 180
of Schedule –I of
notification No. 1/2017-
Central Tax (Rate),
certain drugs, including
few used in cancer
treatment, attract reduced
GST rate of 5%.
2. Most APIs for medicines
under Chapter-29 attract
GST at rate of 18% and
blanket exemption to
oncology medicines will
further aggravate duty
inversion.
3. The request for oncology
medicines is too generic
for implementation and
requests for specific
medicines may be
Agenda for 43rd GSTCM Volume 3
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Description HSN
Present GST
rate
Requested
GST rate
Comments
considered as and when
received.
4. Fitment Committee
observed that such
concessions should be
granted only on the
recommendations of the
Ministry of Health and
Family Welfare or
Department of
Pharmaceuticals and
accordingly deferred the
issue.
14. Medicines &
Pharmaceutical
Preparations
29/30 12% 5% 1. As per serial number 180
of Schedule –I of
notification No. 1/2017-
Central Tax (Rate),
certain specified drugs
attract reduced GST rate
of 5%.
2. The request for reduction
in GST for ‘medicinal
and pharmaceutical
preparations’ is too
generic for
implementation and
requests for specific
medicines/
pharmaceutical
preparations may be
considered as and when
received.
3. Fitment Committee
observed that such
concessions should be
granted only on the
recommendations of the
Ministry of Health and
Family Welfare or
Department of
Pharmaceuticals and
accordingly deferred the
issue.
15. Waste, paring and
scrap of
polyurethanes
3915
90 63
5% 18% 1. The justification given
for rate change is that
under the guise of waste,
paring and scrap of
polyurethanes, fresh
sheet are being supplied.
This is leading to tax
evasion.
2. The GST rate on ‘waste,
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Description HSN
Present GST
rate
Requested
GST rate
Comments
parings or scrap, of
plastics’ under CTH
3915 was reduced to 5%
from 18% vide S. No.
187A introduced by
notification No. 34/2017-
C.T (rate) dated
13.10.2017 as per
decision taken in 22nd
Meeting of GST Council
held on 06.10.2017.
3. The matter of mis-
classification of
virgin/fresh goods as
waste to avail lower GST
rate is an enforcement
issue.
4. This issue may require
general examination of
different kind of scrap
which are at 5%, and are
industrial inputs for
goods attracting higher
rates, for taking a
conscious view. And
require examination in
some detail.
5. Fitment Committee
deferred the matter for
further examination.
16. Products of
Handloom
weavers
Association
Any
Chapte
r
5% Nil 1. Reducing GST to Nil will
result in blockage of
input tax credits and
increased cost for such
domestic manufacturers
and will not benefit
consumer.
2. Fitment Committee
deferred the matter for
further examination and
desired that further
information for
examination of this issue
be collected.
17. Raw silk & other
silk weaving
materials
50 5%/Nil Nil 1. Reduction in GST Rate
to Nil may not help.
2. It increases the cost for
manufacturer as his ITC
gets blocked.
3. Raw Silk is already at nil
rate.
4. Fitment Committee
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Description HSN
Present GST
rate
Requested
GST rate
Comments
deferred the matter for
further examination.
18. Agricultural
machinery /
implements
8432 /
8433
/ 8436
12% 5% 1. The issue was discussed
during the 37th GST
Council Meeting. The
Council did not
recommend reducing
GST rate on agricultural
machinery from 12% to
5% based on following
reasons:
a. Raw materials for
these machineries
such as iron steel,
plastic, and other
metals, in general,
attract 18% GST.
Reduction in GST
from existing 12% to
5% will deepen the
duty inversion.
b. Lowering rate from
GST rate will lead to
cascading of input
taxes and lower GST
rate will result in
refund of
accumulated ITC
with associated
carrying cost.
c. Lowering rate from
GST on
manufactured goods
will result in negative
protection to
domestic
manufacturers vis-a-
vis imports.
2. Fitment Committee
deferred the matter.
20. Fountain Pens,
Stylograph Pens

Parts and
components of
writing
instruments
covered under
HSN 9608 60 and
9608 91
9608 18% 12% 1. 31st GST Council
Meeting did not
recommend reduction in
GST rate on Fountain
pens and stylograph pens
as these pens attract GST
@18 % based on pre-
GST tax incidence
[12.5% GST + 4%-5%
VAT].
2. Whereas all other Pens
falling under Heading
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GST rate
Comments
9608 are subject to a
concessional GST
@12%.
3. This issue would require
more information for
examination
4. Fitment Committee
deferred the matter.
21. Lithium ion
batteries used in
electric vehicles
and on battery
charging service
8507
60 00
18% Reduce 1. GST Council in its 28th
Meeting had
recommended reduction
of GST rate on lithium-
ion batteries from 28% to
18%.
2. Other batteries still
attract GST at the rate of
28%.
3. In addition, Lithium ion
batteries for EV are an
input and the
manufacturer of the EV
is eligible for complete
ITC and refund of
accumulated credit.
4. Issue was deferred.
22. UPS Systems sold
along with
batteries as
integral part
8507
or
8504
28% or 18% Clarification
needed
whether to
classify the
subject goods
under 8507 or
8504
1. Fitment Committee felt
that exact issue with
details and implication be
prepared for further
discussion.
2. Accordingly deferred the
issues while noting that
UPS system attract 28%
as per existing rates.
23. Parts of pre-used
motor vehicles
8708 28% 5% 1. Broadly the fitment’s
view was that:
a. In GST regime, end
use based exemption
is not feasible and
also not desirable.
b. Creating more than
one rate for same
category of goods is
also prone to misuse.
c. Further, schemes are
being designed in
order to promote the
domestic
manufacturing of
these parts in India
and reducing rate to
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Description HSN
Present GST
rate
Requested
GST rate
Comments
5% will act against
the concept of
localisation as lower
GST will incentivise
the imports.
24. Branded Fortified
Rice
1006 5% Nil 1. Branded rice fortified
with Fortified Rice
Kernels (FRK) attracts
5% GST rate, on par with
other branded goods.
2. The issue of exemption
of fortified staples has
been placed before the
GST Council in its 37th
meeting and was not
recommended by the
GST Council.
3. Further, specific
exemption to Fortified
staples will be difficult to
implement and may lead
to leakages and
misclassification.
4. Fitment Committee does
not recommend any
reduction in present GST
rate.













Agenda for 43rd GSTCM Volume 3
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Agenda Item 11(iii): Recommendations of the Fitment Committee on Services
A. Actionable
Sl.
No.
Proposal Justification Comments and Fitment
Committee’s recommendation
1. To clarify that supply of
food in Schools and
Anganwadis by a section
12AA Registered
Charitable Institution
with the support from
government, in the form
of grant and subsidy, is
not a supply under GST
Laws.

The AkshayaPatra
Foundation is a charitable
trust providing food to nearly
18 lakh students in 16856
government schools and
Anganwadis without any
consideration either in
monetary or non-monetary
nature from the students or
schools.

The input costs are funded
by government grants and
corporate donations. The
charitable activities are
affected due to lack of clarity
on whether output services
are taxable or not.


Rajasthan Advance Ruling
Authority in its order dated
9thJanuary 2019 held that
such grants received from
government are a
consideration for supplying
the charitable activity.
Because of the ruling, there
is an uncertainty in the
taxability of charitable
feeding services.
Recommendation:

Clarification may be issued by
way of a circular that (a) services
supplied to an educational
institution by way of serving of
food including mid- day meals
under any midday meals scheme
sponsored by the Central
Government, State Government
or Union territory is exempt from
levy of GST irrespective of its
funding from government grants
or corporate donations, and (b)
that educational institutions as
defined in the notification include
anganwadis as they provide pre-
school education.

AkshayaPatra Foundation is a
charitable trust registered under
section 12AA of IT Act which is
providing food to students in
government schools and
Anganwadis identified by the
Government. The trust enters into
agreement with the Government
and Government provides financial
support in the form of grant to meet
the conversion cost of food.
Further, it also receives donation
from corporate/ private bodies to
meet the cost of running centralized
kitchen and distribution of food.

From the representation it is seen
that in the case of the Mid-day meal
scheme, Government has specified
the recipients, i.e. the school and
anganwadis. Vide sl. No. 66 clause
(b)(ii), services provided to an
educational institution, by way of
catering, including any midday
meals scheme sponsored by the
Central Government, State
Government or Union territory is
exempt from levy of GST. Serving
of food in schools covered under
MDM Scheme would be exempt
Agenda for 43rd GSTCM Volume 3
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Proposal Justification Comments and Fitment
Committee’s recommendation
irrespective of its funding from
government grant or corporate
donation.
Anganwadis also provide preschool
education apart from other facilities
and activities for mother and child.
Therefore, explanation may be
inserted in definition of educational
institution that “pre-school
education includes education at
anganwadis.

The definition of consideration
provided in clause (b) of section
2(31) in relation to supply of goods
or services or both includes the
monetary value of any act or
forbearance, in respect of, in
response to, or for the inducement
of, the supply of goods or services
or both, whether by the recipient
or by any other person but shall
not include any subsidy given by
the Central Government or a State
Government.
Fitment may examine for issuance
of clarification in the matter.
2. i. To clarify whether
GST exemption is
available on the entrance
fee collected by NBE
from candidates towards
conduct of all India
entrance examination for
admission to Diplomat
National Board (DNB)
and Fellow of National
Board (FNB) courses
offered by hospitals/
medical colleges.

ii. To clarify whether
GST exemption is
available on registration
fee collected by NBE
from candidates for
conduct of NEET-PG,
NEET- MDS
examinations for
admission to MBBS and
PG courses offered by
hospitals/ medical
colleges.
The National Board of
Examinations (NBE) is an
autonomous organization
established by Ministry of
Health & Family Welfare
(MoH&FW). The Board is
entrusted with the task of
conducting uniform and high
standard post graduate level
examination for admission to
DNB and FNB medical
courses. The governing body
of the Board is nominated by
MoH&FW and published in
Gazette of India from time to
time.

2. The NBE, inter alia,
is responsible for (i) conduct
of examinations for
admission to Diplomat
National Board (DNB) and
Fellow of National Board
(FNB) courses, (ii) develop
patterns of teaching in PG
medical education in all its
Recommendation:

Clarification may be issued that, -
(a) NBE provides services of
conducting examinations for
admission to Diplomat
National Board (DNB) and
Fellow of National Board
(FNB) courses, prescribes
courses and curricula for
PG medical studies, holds
examinations and grant
degrees, diplomas and other
academic distinctions.
Various fees collected by
NBE as an educational
board towards conduct of
examination for students of
DNB/ FNB and conduct of
entrance examinations, such
as registration fee,
counseling fee, reevaluation
fee for answer sheets
evaluation/ research thesis
reassessment, issuance of
board certificate etc. are
Agenda for 43rd GSTCM Volume 3
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Proposal Justification Comments and Fitment
Committee’s recommendation

iii. To clarify whether
GST exemption is
available on registration
fee collected by NBE
from candidates for
conduct of Foreign
Medical Graduate
Examination (FMGE)
screening test towards
registration of candidates
who have obtained
medical qualification
from outside India with
State Medical Councils
and Medical councils of
India.
iv. To clarify whether
GST exemption is
available on fees
collected by NBE from
hospitals/ medical
colleges towards
granting accreditation or
renewal of accreditation.

v. To accord NBE the
status of an Educational
Institute and its courses
be exempted from GST
like IIMs.

vi. Pending decision on
the proposal above, it is
requested to exempt
NBE from payment of
GST upto 31.03.2020

branches, (iii) prescribe
courses and curricula for PG
studies, (iv) hold
examinations and grant
degrees, diplomas and other
academic distinctions and (v)
grant accreditation to various
courses of medical science.

3 MoH&FW has
recognised the Diplomat
National Board (DNB) and
Fellow of National Board
(FNB) courses offered by
various hospitals/ medical
colleges as medical
qualification.

4 The Board is a self-
financing organization solely
depends on the examination
fee/ registration fee collected
from candidates and
accreditation fee collected
from medical colleges.
Annual account of NBE is
audited by C&AG of India
and placed before the
parliament.

5 NBE has stated that since
all the above activities are
mandated by Government of
India and the entrance
examinations it conduct
leads to award of degrees
(MD/ MS) recognized by
Medical council of India, for
the purpose of GST, they are
educational institutions and
its services provided to
students/ candidates are
exempt from GST.

6 Currently NBE is
conducting the following
entrance examinations,
i. NEET-PG(National
Eligibility cum Entrance Test
– Post Graduate),
ii. NEET-SS (National
Eligibility cum Entrance Test
– Superspecialty),
exempt from GST in view of
explanation 3(iv) and sl. No.
66 (aa) of the notification
No. 12/ 2017 CTR. Service
provided by similar other
central or state educational
Boards for conduct of
examinations including
entrance examination shall
accordingly be exempt.
(b) Various input services such
as online testing service,
result publication, printing
of notification for
examination, admit card
and questions papers etc.
provided by IT firms or
printing/ publishing firms to
NBE relating to conduct of
DNB, FNB and NEET- PG
entrance examinations for
student and final
examination leading to
DNB/ FNB degree is also
exempt from GST [sl. No.
66 (b)(iv) refers]
(c) Service of conduct of Foreign
Medical Graduate
Examination is not an
entrance examination, nor is
it is an examination as part
of an educational
curriculum. The registration
fee collected from candidates
towards Foreign Medical
Graduate Examination
(FMGE) screening test is not
exempt from GST.
(d) Fees collected by NBE from
hospitals/ medical colleges
towards granting
accreditation or renewal of
accreditation are not
exempt and taxable @ 18%
of GST.

NBE is involved in (i) selection of
candidates through all India
entrance examination; (ii)
conducting Final all India
DNB/FNB examination; (iii)
eventual award of DNB/FNB
Agenda for 43rd GSTCM Volume 3
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No.
Proposal Justification Comments and Fitment
Committee’s recommendation
iii. NEET-MDS(National
Eligibility cum Entrance Test
– Masters of Dental
Surgery),
iv. FET (Fellowship
Entrance Test),
v. PDCET (DNB Post
Diploma Centralized
Entrance Test)

7. In regards, exemption for
the courses run by NBE and
awarding of DNB, NBE
states that it is providing
education as part of
curriculum for obtaining a
qualification recognized by
law. It further adds that since
all the educational activities
of NBE is related to long
duration courses (more than
1 year) which ultimately
culminated into award of
degree/ qualification
recognized by law for time
being in force. For this well
equipped centers have been
identified and accredited by
the NBE.

8. The NBE has stated in its
letter dated 25.08.2020 that
the provisional liability on
account of these services is
around Rs. 106 crores.
qualification. The education is
imparted by the accredited
hospitals/institute. Since, NBE is
not directly responsible for
providing education services to
students as a part of a curriculum
for obtaining a qualification
recognised by any law, it is not an
educational institution as defined in
clause 2(y) of notification No. 12/
2017- CTR.
2.It may be noted that, vide
explanation 3(iv) of the notification
No. 12/ 2017 CTR, “Central and
State Educational Boards” are
treated as Educational Institution
for the limited purpose of providing
services by way of conduct of
examination to the students.
Therefore, it would be logical to say
that NBE is an ‘Educational
Institution’ only for limited purpose
of providing services by way of
conduct of examination to the
students.

GST on various activities and
services undertaken by Educational
Institution:
Presently, in GST law, vide sl. No.
66 of the notification No. 12/
2017- Central Tax (Rate) dated
28.06.2017, following services are
exempt from GST.
Services provided -
(a) by an educational institution to
its students, faculty and staff;
(aa) by an educational institution
by way of conduct of entrance
examination against consideration
in the form of entrance fee;

Similarly, services provided to an
educational institution, by way of,
services relating to admission to,
or conduct of examination is also
exempt from GST [sl. No. 66
(b)(iv)].

Exempted output services:
1. According to explanation
3(iv) of notification
12/2017-CT(R), various
Agenda for 43rd GSTCM Volume 3
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Proposal Justification Comments and Fitment
Committee’s recommendation
fees collected by NBE as
an educational board
towards conduct of
examination for students
of DNB/ FNB and conduct
of entrance examinations,
such as registration fee,
counseling fee,
reevaluation fee for
answer sheets evaluation/
research thesis
reassessment, issuance of
board certificate etc.
would be exempt from
GST. [sl. No. 66 (aa)
refers].
Exempted input services:
2. Various input services such
as online testing service,
result publication, printing
of notification for
examination, admit card
and questions papers etc.
provided by IT firms or
printing/ publishing firms
to NBE relating to conduct
of DNB, FNB and NEET-
PG entrance examinations
for potential candidates and
final examination leading to
DNB/ FNB degree is also
exempt from GST [sl. No.
66 (b)(iv) refers].

Taxable output services:
3. So far as the service of
conduct of Foreign
Medical Graduate
Examination is concerned,
it is not an entrance
examination, neither it is
an examination as part of
an educational curriculum.
It is merely a screening
test, which allows them to
practice medicine in India
as qualified medical
practitioners. The
registration fee collected
from candidates towards
Foreign Medical Graduate
Examination (FMGE)
screening test does not
Agenda for 43rd GSTCM Volume 3
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Proposal Justification Comments and Fitment
Committee’s recommendation
appear exempt, thereby
appears taxable under
GST.

4. Accreditation service:
Accreditation service is neither a
service of education nor provided
by an educational institution to its
students, faculty and staff. This
service is provided to colleges/
institutions or any centers to ensure
that the standards of the courses,
training facility are maintained upto
a certain level. By getting
accreditation from a testing/
certifying agency, the recipient
organization acquires kind of brand
name. During service tax regime,
the accreditation service was
taxable. The status quo has also
been maintained in GST regime.
Therefore, fees collected by NBE
from hospitals/ medical colleges
towards granting accreditation or
renewal of accreditation are not
exempt and taxable @ 18% of GST.

Fitment may take a view for
issuance of clarification.
3. (a)In case of construction
of residential complex
service, the condition
that the tax @ 1% or 5%
as the case may be shall
be paid only in cash and
not through credit may
be modified to the extent
that the land owner
promoter may use the
credit of tax charged to
him by the developer
promoter for payment of
tax on apartments
booked by him.
Otherwise, the credit
allowed to the land
owner promoter of the
tax charged from him by
the developer promoter
shall become
meaningless.
(b)to amend Notification
No. 06/2019-Central Tax
(a) The land owner-
promoter is eligible to
take input tax credit of
tax charged from him by
the developer-promoter.
However, as per first
proviso applicable to
entries at items (i) to (id)
against Sl. No. 3 of
notification No.
11/2017- CTR dated
28.06.2017, promoter is
required to pay GST
through debit to
Electronic Cash Ledger.
(b) As per the Notification
No. 6/2019-CTR, the
developer-promoter is
required to pay GST at
the time of issuance of
completion certificate.
However, the land
owner-promoter may be
required to pay GST in
Recommendation:

Condition of entry 3 in
notification No. 11/2017- CTR,
dated 28.06.2019 may be
amended appropriately to (a)
make it explicitly clear that the
land owner promoter is eligible to
use the credit of tax charged to
him by the developer promoter
for payment of tax on apartments
booked by the land owner-
promoter in such project; and
(b) the liability of promoter to
pay central tax on supply of
development rights, FSI or lease
of land to him or on supply of
construction service against
consideration in the form of TDR
or FSI shall arise on or before the
date of issuance of completion
certificate for the project.

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Committee’s recommendation
(Rate) dated 29th March,
2019so as to provide that
the liability of promoter
to pay central tax on
supply of development
rights, FSI or lease of
land to him or on supply
of construction service
against consideration in
the form of TDR or FSI
shall arise on or before
the date of issuance of
completion certificate for
the project

accordance with the
provisions of Time of
Supply earlier that
issuance of completion
certificate i.e. before the
day on which developer-
promoter would pay
GST in respect of supply
of construction service
to land owner-promoter.
In such circumstances,
which is bound to
happen in almost all
cases, the land owner-
promoter will have to
pay GST in cash at the
time of supply and avail
credit subsequently. It
may also result in
permanent non-
utilization of such input
tax credit.
According to State of
Gujarat, it is generally
found that land owner-
promoters may be
farmers of middle class
and may not be engaged
in any business activity.
Input tax credit (ITC)
may remain unutilized if
an appropriate
amendment is not made
as there is least
possibility to adjust
these ITC against other
output tax liability. This
being their one-time
business activity.
Residential complex construction
service provided by a developer to a
person buying under construction
houses attract a GST of 5% /1%
(affordable housing.). However,
this tax is to be paid in cash. The
service provider is not entitled to
ITC except that a land owner can
take ITC of tax charged by the
developer on the flats he transfers
to the landowner in lieu of
development rights/FSI subject to
the condition that landowner further
sells the houses to customer at
under construction stage and pays
GST on it. This is to ensure that
there is no multiple taxation on
flats.

However, such land owners are
finding it difficult to take and
utilize this ITC for the reason that
(i) condition of this levy while
prescribing payment of tax in cash
does not specifically state whether
this ITC can be utilized, and (ii) the
developer is required to pay tax on
construction in lieu of development
right/FSI at the time of issuance of
completion certificate. But by the
time developer may pay tax on
construction service provided to
land owner, the landowner may
have supplied the flat further and
may have become liable to pay tax.
If land owner is doing only one
project, he cannot use the ITC so
received after extinguishing his
liability
It is proposed that these difficulties
be removed.
(a) For the purpose,
notification No. 11/2017-
CTR, dated 28.06.2019 it
may be additionally be
stated in the fourth proviso
that “notwithstanding
anything contained in the
first proviso, the land
owner promoter shall be
eligible to use the credit of
tax charged to him by the
developer promoter for
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payment of tax on
apartments booked by the
land owner- promoter in
such project.”
(b) To address this issue, the
fitment Committee made
recommendation as above.
This ensures that developer pay tax
earlier than the period in which he
gets completion certificate.
4. (i) To reduce GST on
ship repair services
from 18% to 5% in
line with MRO for
aircrafts.
(ii) To consider repair of
foreign ships/ vessels
in India as export of
service and zero-
rated.
(iii) To reduce GST on
all inputs and input
services used
directly in repair of
ships to 5%.

(i) The current rate of 18%
creates working capital/
bottom line impact for
shipping sector as a
whole.

(ii) GST on Aircraft MRO
has been reduced to 5%
with effect from
01.04.2020. Domestic
ship repair industry is a
similarly placed industry,
should also be considered
for a reduced rate of 5%/

(iii) The tax rate in Sri Lanka
and Singapore is Zero.
UAE has raised the rate
from 0 to 5% in 2017.
GST rate should be
rationalized in line with
competing countries.
(iv) No GST is applicable
when ships come to India
exclusively for repairs
and go back without
being put to any use in
India. However, foreign
ships/ vessels do not
come to India only for the
purpose of repair. They
use the window between
transportation of goods
for seeking repair
services. They may carry
cargo within and out of
India after repairs. PoS in
such cases is the place
where the service is being
performed, i.e. India.
Therefore, GST @ 18%
Recommendation:
As has been done for civil aviation
sector,
(a) GST on MRO services in
respect of ships may be
reduced from 18% to 5%
with full ITC.
(b) PoS of B2B supply of
MRO Services in respect of
ships/ vessels may be changed
to location of recipient of
service, by way of issuing a
notification under section
13(13) of the IGST Act.
1. Ship repair services supplied by
ship repair units in India to
Indian shipping lines attract GST
@ 18%. As regards repair of
foreign flag vessels by ship repair
units located in India, the same
qualifies as export of service only
if the ships are imported into
India exclusively for repairs,
which is uncommon. Shipping
lines generally get MRO done
during the window available
between commercial voyages.
Place of supply of Maintenance,
Repair and Overhaul (MRO)
services of ships carried out
during their routine voyages with
cargo is the place where the
service is performed, that is, in
India and therefore taxable even
though such services are supplied
to a foreign shipping line and
paid for in foreign exchange.
2. The aircraft MROs faced
identical issue. On similar request
received from MoCA, GST
Council in its 39th Meeting held
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is attracted despite
payment for such repair
in foreign exchange.
Therefore, it may be clarified
that in case of repair of
foreign ships, PoS would be
the location of service
recipient and shall be zero
rated.
on 14.3.2020 had recommended
in respect of aircraft MRO as
under:
“To reduce GST rate on
Maintenance, Repair and
Overhaul (MRO) services in
respect of aircraft from 18% to
5% with full ITC and to change
the place of supply for B2B MRO
Services to location of recipient”

2.1 Above recommendation of
the Council with respect to MRO
of aircraft and aircraft engines
and other parts was implemented
vide notification No. 2/2020-
CT(R) dated 26.03.2020 and
2/2020-IT dated 26.03.2020.
2.2 Ministry of Civil Aviation has
stated, post these changes in GST,
that it has helped in developing
MRO industry in India.

3. It is proposed that in order to
address the issue raised by the
Ministry of Shipping, the same
course of action be adopted as
was adopted for aircraft MRO.
Accordingly,

• GST on MRO services in
respect of ships may be reduced
from 18% to 5% with full ITC.
• PoS of B2B supply of MRO
Services in respect of ships/
vessels may be changed to
location of recipient of
service, by way of issuing a
notification under section
13(13) of the IGST Act.
5. Request to clarify that no
service is provided by
Govt. to the Govt.
organisations in
guaranteeing loans taken
by them as Govt.
organisations undertake
functions entrusted by
the Govt. and loan/credit
is taken by them for
fulfilment of the said
HSVP is a Govt. authority
constituted under the
Haryana
ShehriVikasPradhikaran Act,
1977 for undertaking
development of urban areas
of the Haryana state.

Activities undertaken by
HSVP for development of
urban areas is exempted from
Recommendation:

It may be clarified that service
supplied by State Govt. to their
undertakings or PSUs by way of
guaranteeing loans taken by PSU
from banks and financial
institutions is specifically exempt
under entry No. 34A of
Notification no. 12/2017-CT (R)
dated 28.06.2017.
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functions.

GST vide entry 4 of Not. No.
12/2017- CT (R) dt.
28.06.2017, which 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”.

The state govt. provides
guarantee to the financial
institutions for taking
loan/additional credit limit.
As per the State Govt.
policy, HSVP has to deposit
2% of the loan amount with
the Govt. against the state
guarantee given to it.


Govt. provides guarantee to
HSVP for taking loan/credit
facility from financial
institution to carry out the
Govt. function of
development of urban areas.
This is a function entrusted
to Municipality, which is
exempt from GST vide entry
4 as quoted above.

Thus, no GST is leviable on
the guarantee provided by
Town planning dept. to
HSVP.
However, the Revenue
authorities are contending
that service provided to
business entities are taxable
under RCM. Hence, fee paid
by HSVP to Govt. is liable to
GST under reverse charge.


HSVP is a statutory body
constituted under the Haryana
Shehri Vikas Pradhikaran Act,
1977, as a body corporate, for
undertaking urban development and
local development.

Entry no. 34A of Notification no.
12/2017-CT (R) dated 28.06.2017
exempts from GST, services
supplied by Central Government,
State Government, Union territory
to their undertakings or Public
Sector Undertakings (PSUs) by way
of guaranteeing the loans taken by
such undertakings or PSUs from the
banking companies and financial
institutions.

Thus, service supplied by Haryana
Govt. to HSVP by way of
guaranteeing loans taken by HSVP
from banks and financial
institutions is exempt under the said
entry. The same may be clarified to
HSVP.

6. Exemption to The
Hybrid Annuity Model
Project SPV from GST
output tax liability.
1. In HAM Project, NHAI
contributes 40% of the Bid
Project Cost during
construction phase and
balance construction cost,
invested by private operators
is paid back to the
concessionaire in 30 defined
installments along with
Recommendation:
Clarification may be issued by
way of a circular that entry 23A
of notification No. 12/2017-CT(R)
does not exempt annuity paid for
construction of roads. It only
exempts services provided by way
of access to a road or bridge on
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interest as may be applicable.
The payments made towards
balance construction are paid
as Annuities. Annuity
payment is exempted from
GST as per entry 23A, which
is now also confirmed by the
appellate bench, vide order
no RAJ/AAAR/06/2018-19
dated 12.2.2019. However,
the following decision in the
said order is being contested
by the HAM Developers.
a) That ONLY 40% of input
tax credit used in the
construction phase is
available to the
concessionaire.
b) Full ITC of the GST paid
on the inputs and input
services used in the
O&M phase is available to
the concessionaires.
2. Industries want to have
100% ITC, so that no cash
out go is there from the SPV,
as sufficient ITC is available
it is utilized against GST.
The un-utilized portion of the
ITC can be potentially
utilized during the O&M
phase, which may be remote.
Eventually, as it is not
refundable, it is written off in
the books of the SPV as a
cost over the O&M period in
case of non-utilization.
3. HAM projects are at
disadvantageous position vis-
å-vis EPC and BOT Projects.
The input tax credit
provisions are clear in both
EPC as well as BOT
projects. In EPC projects,
100% ITC is available to the
contractors during
construction. In BOT
projects, whole of the project
is developed and managed by
the Private Partner (referred
as Concessionaire).
payment of annuity for it.
1 The entry 23A of notification No.
12/2017-CT(R) provides exemption
to any service provided for access of
road on payment of annuity. This
entry reads as below:
“Service by way of access to a road
or a bridge on payment of annuity”.
2. However, the service being
provided by the concessionaire to
NHAI is construction service (for
which the contract is entered into)
covered under service code 995421 -
General construction services of
highways, streets, roads railways,
airfield runways, bridges and
tunnels.
3. The said entry 23A of the
notification No. 12/2017-CT(R)
exempts service by way of access to
a road or a bridge on payment of
annuity. Entry 23 exempts service of
access provided in lieu of toll.
However, cases where charges are
paid, in lump sum or in form of an
Annuity, by the Government
department or PSU for seeking
access to road/bridge for general
public were not covered by entry 23.
This led to a situation where the toll
charges, in form of Annuity, being
offset by the Government or PSU, in
public interest, to the concessionaire
were subjected to GST and
consequently it was recommended
by the GST Council in its 22nd
meeting to exempt service by way
of access to road or bridge where
payment were in the form of
annuity. The Council thus
recommended exemption to only
such annuities, which are charged
for providing access to a road or
bridge and otherwise the activity is
at par with the activity for which toll
is charged.
4.In the case referred to in the
reference, AAAR vide its order
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dated 12.02.2019 had held that the
annuity payments received by the
petitioner are exempt, however, only
50% of ITC of the inputs and input
services used in the construction
phase shall be available to the
petitioner as the annuity is not
taxable. The AAAR did not go into
the aspect that for the purposes of
exemption annuity should have been
in lieu of access to the road and not
in lieu of construction of road.
5. It would be appropriate if
clarification is issued that exemption
is available to only such annuities,
which are charged for providing
access to a road or bridge (at par
with toll).
6. Fitment Committee may examine
and take a view.
7. Clarify that providing
service of crushing of
wheat into fortified Atta
to District Controller,
Food and Supplies,
Government of West
Bengal, for further
distribution to intended
beneficiaries under PDS
scheme is exempt from
GST.

The millers have entered into
an agreement with the
District Controller, Food and
Supplies, Government of
West Bengal. According to
the agreement, 5kg by-
products out of 100 kg wheat
(1% refraction for cleaning
and 4% for de-branning), is
allowed to be retained by the
flour mills. The petitioners’
premises have been searched
by DGGI while making
enquiries as to the
appropriate payment of GST
on the service provided by
the petitioners. The millers
have requested to issue a
clarification that crushing of
wheat into flour for PDS
falls under the ambit of entry
3A of the Notification no.
12/2017- CT (Rate) dated
28.06.2017, which exempts
composite supply of goods
and services, in which the
value of supply of goods
constitutes not more than 25
per cent. of the value of the
Recommendation:

A clarification may be issued
that,-
(a) supply of service by way
of milling of wheat into
flour (fortified or
otherwise) or of paddy
into rice to Central
Government, State
Government, Union
territory, local authority, a
Governmental authority or
a Government Entity for
distribution of such flour
or rice under PDS would
be exempt under entry 3A
of the Notification No.
12/2017- CT (Rate) dated
28.06.2017 provided value
of goods in the composite
supply of goods and
services does not exceed
25% of the value of the
composite supply. Value
of goods supplied in
composite service is a
matter of fact.
(b) In case the supply of
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said composite supply,
provided to the Central
Government, State
Government or Union
territory or local authority or
a Governmental authority or
a Government Entity 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;

DGGI has argued that the
value of goods involved in
this case is more than 25%,
hence exemption under S,
No, 3A would not be
available.

Similarly, the A.P. State
Civil Supplies Corporation
Ltd. has made similar request
in case of Custom milling of
rice. It has been stated that
since both the products,
paddy and rice, are exempt
there is no point in levying
any tax on job work in
relation to such products.

They have further stated that
if the service of custom
milling is taxable, then
valuation of the by-products
will be a major concern.
service by way of milling
of wheat into flour or of
paddy into rice, is not
eligible for exemption
under Sl 3 of notification
No. 12/2017-CT®
because it is not a pure
supply of service or under
3A because the value of
goods in the composite
supply exceeds 25%, then
if the said supply is
provided to a registered
person, including a
person registered only for
the purpose of deduction
of tax under section 51 of
CGST Act , shall be
entitled to the 5% GST
rate applicable to job
work services in relation
to food and food products.
1. The entry at Sl. No. 3A of
Notification No. 12/2017-
Central Tax (Rate) exempts
“composite supply of goods and
services in which the value of
supply of goods constitutes not
more than 25 per cent of the
value of the said composite
supply provided to the Central
Government, State Government
or Union territory or local
authority or a Governmental
authority or a Government
Entity 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”.

2. It is clear from above that for the
exemption to apply, both
conditions i.e. (i) value of
supply of goods not exceeding
25% of the total value of
composite supply, and(ii) that
the activity in question is in
relation to any function
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entrusted to a Panchayat or
Municipality are satisfied.


3 As regards the proportion of
value of supply of goods in the
total value of composite supply,
it is a question of fact and shall
vary from case to case.

4. The question that needs to be
answered is whether the
exemption would be available
where the value of goods in the
composite supply of milling of
wheat into flour or paddy into
rice for distribution by the State
Government under PDS does
not exceed 25%.

5. West Bengal has conveyed vide
D.O. letter dated 21.02.2021
that “milling services provided
by millers to the Government
for the purpose of distribution
of fortified atta through Public
Distribution System has been
exempted under Sl. No. 3A of
Notification No. 12/2017-
Central Tax (rate) dated
28.06.2017. The supply has
been provided to the
Government of West Bengal for
the purpose of distribution
through PDS. This is covered
vide entry no. 28 of the
Eleventh schedule appended to
Article 243G of the Constitution
of India”.

6. It appears that the activity of
milling of wheat into flour or
paddy into rice carried out by
milling units for the State
Government for distribution by
it under Public Distribution
System is an activity in relation
to the function of “public
distribution system”, which is
one of the functions entrusted to
a Panchayat or Municipality
under Article 243 G or Article
243 W of the Constitution, and
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thus eligible for exemption
under Sl. No. 3 A of
Notification No. 12/2017-CT (R
) dated 28-6-2017 provided
value of goods in the composite
supply of milling of wheat into
flour or paddy into rice does not
exceed 25%.[Public
Distribution specifically figures
at entry 28 of the 11th Schedule
to the constitution, which lists
the activities that may be
entrusted to a Panchayat under
Article 243 G of the
Constitution.]

7. Hence. such services shall be
exempt where the value of
goods supplied by the miller
while providing services of
milling does not exceed 25% of
the total value.

8 Other possible entry admissible
in such cases is entry 26 of
notification No. 11/2017-CT,
which inter alia prescribes a
rate of 5% on job work service
provided in relation to food
items. Job work as defined in
the CGST Act :
“Section 2(68 )-job work means any
treatment or process undertaken by
a person on goods belonging to
another registered person and the
expression ―job worker shall be
construed accordingly”;
Therefore, in case recipient of
service is a registered person, the
miller would be entitled to claim
5% rate.

9. Fitment Committee may examine
for making recommendation to
the Council.
8. Clarification regarding
rate of tax applicable on
construction services
provided to a
Government Company in
relation to construction
of a Ropeway on turnkey
basis.
1. BSTDC was established in
the year 1980 for the
development of tourism in
the State of Bihar and for
commercialization of Tourist
Resources available with the
State. To achieve this
objective various tourist
Recommendation:

Clarification may be issued that
service provided to State Tourism
Development Corporation Ltd.
by way of construction of a
ropeway are not eligible for the
concessional rate (of 12%
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infrastructure like Tourist
Bungalow, Cafeteria,
Restaurant, Transportation
facilities and Ropeway are
provided at various tourists
spots by Bihar State Tourism
Development Corporation.
2. It has been informed that
BSTDC has entered into an
agreement with RITES Ltd.
for construction, by the
latter, of a ropeway on
turnkey basis in Nalanda. In
this context BSTDC has
raised a query with CTD,
Bihar as to whether GST
would be leviable at the rate
of 12% (6%CGST +
6%SGST) or at the rate of
18% (9%CGST + 9%SGST)
in respect of the construction
service being provided.
3. In this context the
following issue has been
raised:- "Whether the service
referred item (vi) of serial
number 3 of rate notification
number 11/2017 or it would
fall under item (xii) of serial
number 3 of rate notification
number 11/2017).
4. Item (vi) of serial number
3 of rate notification number
11/2017 reads as follows:-
"Composite supply of works
contract as defined in clause
(119) of section 2 of the
Bihar Goods and Services
Tax Act, 2017, other than
that covered by items (i),
(ia), (ib), (ic), (id), (ie) and
(if) above provided to the
Central Government, State
Government, Union
Territory, a local authority, a
Governmental Authority or a
Government Entity by way
of construction, erection,
commissioning, installation,
completion, fitting out,
repair, maintenance,
renovation, or alteration of
—
GST)under entry No. 3 (vi) of
Notification No. 11/2017- CT (R)
dt. 28.06.2017 and the same shall
attract GST at the rate of 18%
(9%CGST + 9%SGST) as the
ropeway is not a civil structure or
any original work meant
predominantly for use other than
for commerce, industry, business
or profession. Accordingly supply
of construction services to the
Government entity for any
construction which is for its
business or profession etc shall
not be covered by said entry.

It appears that the activities of
BSTDC stand excluded from the
scope of item (vi) of serial number
3 of rate notification number
11/2017 dated 28.06.2017, since the
exclusion from "business" is limited
only to Central/State Government
or a Local Authority, in which they
are engaged as public authority. It
does not extend to a Governmental
Authority or a Government Entity,
even though the main provision
accommodates all of Central/State
Government or a Local Authority or
a Governmental Authority or a
Government Entity;
2.That the constructed civil
structure (viz. the ropeway) would
be used by BSTDC for furthering
the cause of tourism which is in the
nature of "business" as defined in
section 2(17) of the CGST/BGST
Act, 2017.

3. Fitment Committee may issue
clarification that GST would be
leviable at the rate of 18%
(9%CGST + 9%SGST) in respect
of the construction service being
provided by RITEs to the BSTDC.
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(a) a civil structure or any
other original works meant
predominantly for use other
than for commerce, industry,
or any other business or
profession;
(b) a structure meant
predominantly for use as (i)
an educational, (ii) a clinical,
or (iii) an art or cultural
establishment; or (c) a
residential complex
predominantly meant for
self-use or the use of their
employees or other persons
specified in paragraph 3 of
the Schedule III of the Bihar
Goods and Services Tax Act,
2017 (Bihar Act 12 of 2017).
Explanation. – For the
purposes of this item the
term 'business' shall not
include any activity or
transaction undertaken by the
Central Government, a State
Government or any local
authority in which they are
engaged as public
authorities."
5. It may be noted:- (a) that
BSTDC is a "Government
Entity" within the meaning
assigned to the said
expression by para 4(x) of
the impugned notification
and reads as follows:- (x)
―Government Entity means
an authority or a board or
any other body including a
society, trust, corporation,–
(i) set up by an Act of
Parliament or State
Legislature; or
(ii) established by any
Government, with 90 per
cent. or more participation
by way of equity or control,
to carry out a function
entrusted by the Central
Government, State
Government, Union
Territory or a local authority;
(b) that the service being
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Proposal Justification Comments and Fitment
Committee’s recommendation
provided by RITES Ltd. to
BSTDC (a "Government
Entity") is a composite
supply of works contract
wherein a civil structure (viz.
a ropeway) would be
constructed and that such a
structure does not fall within
items (i), (ia), (ib), (ic), (id),
(ie) or (if) of serial number 3
of the impugned notification;
(c) that the aforesaid service
would fall under the said
item (vi) if the resultant civil
structure is used for any
purpose other than trade,
industry or
business/profession; (d) that
the substantive provision of
the said item number (vi)
indicates that such services
provided to BSTDC in
respect of the construction of
ropeway are covered by this
entry if only BSTDC were
not to use the ropeway for
business/industry; (e) that,
however, in terms of the
Explanation to the said item
number (vi) of said serial
number 3 the
activities/transactions
undertaken by Central/State
Government or a Local
Authority in which such
Government/Authority is
engaged as a public authority
would not constitute
"business" for the purposes
of this.

B. Non-Actionable
Sl.
No.
Proposal Justification Comments
1. Request for Service
Tax/GST exemption
from Insurance
Regulatory and
Development of
CAG has raised an issue of not
collecting Service Tax/GST on
the services provided by IRDAI
to intermediaries, during
transaction audit for the FY
Recommendation:

May not be accepted. Exemptions
should be kept to the minimum
possible and existing exemptions
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Proposal Justification Comments
India (IRDAI) on all
the services
provided, instead of
not specifically
provided to ‘the
insurers’.

2018-19. The existing
exemptions in Service Tax (vide
notification No. 9/2016-ST,
dated 1.3.2016) and GST (vide
notification No. 12/2017-CTR
dated 28.06.2017) provide for
exemption on the services
provided to ‘insurers’ alone.
should not be expanded.

1. Service Tax exemption was
given on the services of IRDAI to
insurers alone vide Sl. No. 50 of
Notification No. 25/2012-S.T.
w.e.f. 01.07.2012 as amended by
Notification No. No.9/2016-Service
Tax, dated 1.3.2016 as below: -
50. Services provided by
Insurance Regulatory and
Development Authority of
India (IRDA) to insurers
under the Insurance
Regulatory and
Development Authority of
India Act, 1999 (41 of
1999);
2. The above exemption was carried
forward in the GST regime vide Sl.
No. 32 of notification No. 12/2017-
CTR dated 28.06.2017. In GST
also, the exemption entry reads
similar to the exemption entry in
Service Tax i.e.
Services provided by the
Insurance Regulatory and
Development Authority of
India to insurers under the
Insurance Regulatory and
Development Authority of
India Act, 1999 (41 of
1999).

3. The word "intermediary or
insurance intermediary" includes
insurance brokers, reinsurance
brokers, insurance consultants,
surveyors and loss assessors as per
Section 2(f) of IRDAI Act, 1999.

4. The existing exemptions in
Service Tax and GST applies to
services provided by IRDAI to
insurers only but does not exempt
other output services provided by
IRDAI viz. services provided to
insurance intermediaries etc.

5. GST exemption is available
to all the services by the RBI (vide
Sl. No. 26 of notification No.
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12/2017-CTR) and services
provided by the SEBI by way of
protecting the interests of investors
in securities and to promote the
development of, and to regulate, the
securities market (vide Sl. No. 33 of
notification No. 12/2017-CTR).
IRDA has on this ground claimed
exemption for all services provided
by it.

6. It is to mention here that
insurance agent may not be able to
utilize the ITC of tax charged by
IRDA for the reason that their main
service, i.e., service provided to
insurer is under reverse charge.

7. Fitment Committee may take a
view.
2. Request to waive
GST on service
charges payable by
Indian emigrants to
the registered
Recruiting Agents
(RAs). Further, it has
been requested to
grant GST
moratorium on
payments made by
RAs for a period of
18 months to tide
over the crisis
situation due to
COVID-19

Job- seekers, less educated
workers and unemployed Indians
take the help of Registered
Recruiting Agents (RAs) for
getting employment abroad as
these RAs have the authentic
information about different
vacancies in foreign countries.
To provide regulatory framework
in respect of emigration of Indian
workers and to safeguard the
interests of Indian workers,
Government issues Registration
Certificate to eligible entities.
This is to help aspiring emigrants
not to fall prey to any kind of
duping by unscrupulous
elements. The Government also
authorized the RAs not to charge
amount more than RS. 30000/-
excluding GST. Now emigrants
have to pay GST to RAs for their
service when an emigrant
emigrates through them. This is
an additional burden on poor
emigrants, who are bringing
valuable foreign remittances to
India.
Recommendation:

May not be accepted.

The services of recruitment
agencies were taxable in Service
Tax regime at standard rate of 15%.
They are taxed in GST also at the
standard rate of 18%. In the present
case, exempting services of
registered recruitment agents will
block their ITC. As a result, GST
paid on goods and services for
setting up the office and other
facilities would be a burden on
them.
Further, acceding to request for
exemption to such services in one
case would lead to similar requests.
As such proliferation of exemptions
in GST, except absolutely deserving
cases, may not be desirable.

3. GST be eliminated
on management fees
or extend the deemed
export status for
IVCA has submitted that
investment management fee is
the biggest expenditure for the
AIF industry. Typically, such
Recommendation:

Request may not be accepted.
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services rendered to
AIFs.

investment management fees
constitute 2-3% of the value of
the assets managed in an AIF per
year. While management fees
charged to VC/PE fund located
in an offshore jurisdiction is
exempt from GST, the
management fees charged to an
onshore fund located in India/
AIF attracts GST@18%. Since
an AIF is only a pooling vehicle
for investments and does not
provide any service, there is no
output GST liability and it is not
able to utilize input tax credit of
GST. Thus, this incremental GST
becomes an additional cost for
the foreign investors in the AIF
and acts as an impediment to
onshoring of funds into India via
AIFs.

2 Further, it is submitted that
the impediments to onshoring
from an income tax perspective
has been addressed and a
beneficial treatment from a
Foreign Direct Investment (FDI)
perspective has already been
instituted. Thus, the economic
and taxation policy should now
address the GST challenge
described above which is posing
an impediment to onshoring of
VCPE funds from overseas
jurisdictions due to the
incremental GST costs. A
suitable clarification be issued
under the GST regulations to
elucidate the pass-through
mechanism on the following
bases:
(a) The investors to the AIF are
considered as the recipients as
they bear the cost of fund
management services; while the
AIF only functionally uses such
fund management for the
making the investment;
(b) The services provided by the
Fund Manager are treated to be
rendered to the investors who
are ultimately liable to be pay
As per regulation 2(b)of the said
Regulations, AIF means any fund
established or incorporated in India
as a trust, company, LLP or body
corporate which is a privately
pooled investment vehicle and
which collects funds from domestic
and foreign investors for making
investments as per the defined
investment policy for benefit of
investors.

2. Under Regulation 2(q) of
the said Regulations, a “Manager”
has been defined as any person or
entity who is appointed by the AIF
to manage its investments and may
also be same as the sponsor of the
Fund.

3. As per Regulation 11 of
SEBI (AIF) Regulations, 2012,
AIFs shall raise funds by issue of
information memorandum or
placement memorandum, by
whatever name called. Such
placement memorandums shall
contain all material information
about the AIF and the Manager,
fees and all other expenses
proposed to be charged, the terms
and conditions on which the
Manager offers investment services,
and such other information as may
be necessary for the investor to
take an informed decision on
whether to invest in the AIF.

4. It is clear from the above
provisions of the regulations that
the AIF and the Manager
appointed by AIF are two distinct
legal persons.
5. The manager appointed by AIF
supplies services to AIF of
managing the funds pooled in it
by the foreign and domestic
investors. The manager charges
management fee for its services.
Since both manager and AIF are
located in India, the place of
supply of the services supplied
by manager to AIF is governed
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Proposal Justification Comments
for such services; and
(c) The place of supply for the
services provided

by the Indian Fund Managers is
the location of the investors
investing in such AIF.

3. It is also submitted that the
Fund Managers providing the
services should be accorded a
proportionate export benefit on
the fund management fees
charged on foreign investments
being pooled in the AIF upon
meeting the specified conditions.
The Fund Manager would need
to raise tax invoices as
prescribed under the GST law on
the offshore investors (being the
recipient of services) for
claiming this export benefit. The
quarterly declaration of foreign
and domestic investments made
by the AIF to the Securities and
Exchange Board of India (SEBI)
can be a basis to assess this. A
similar approach has been
adopted in various countries
(especially Singapore), including
via offering outright exemptions.

4. Parliamentary Standing
Committee on Finance in its 12th
Report has recommended that the
asset management services
provided to foreign investors
should be treated as an export
service and should not be
subjected to GST.
by section 13(2) of IGST Act i.e.
the place of location of the
recipient of the services i.e. the
location of AIF. Since the place
of supply of the services supplied
by manager to AIFis in the
taxable territory, it is taxable.
6. The AIF could avail ITC of tax
so paid by the fund manager.
7. Any service provided by AIF to
Foreign Investor would be export
of service as investor is located
outside India. Therefore, in the
instant case if AIF bills to foreign
investor they could claim zero
rating,
8. Hence services provided by Fund
manager to AIF are taxable The
request for treating this
transaction (Fund manager to
AIF) as pass through, and not
imposing tax, may not be
feasible in the context of GST
levy.

9. Earlier, the request of IVCA to
reduce GST to 5% from 18% on
services of investment manager
to an AIF to the extent of
foreign investment was rejected
by GST Council in its 37th
meeting held on 20.09.2020.






C. Deferred
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The following points were deferred by Fitment Committee for examinations as it was felt
that these would require further information and inputs. Also, there are a number of
issues which are similar. Therefore, a comprehensive examination of such issues, with
detailed inputs would be required.
Sl.
No.
Proposal Justification for request- Issues deferred
by the Fitment Committee for further
discussion
1. (a) It may be clarified as whether the phrase
“work entrusted to it by Government” means
general work mandate of the government entity
or a specific work entrusted to the entity with
funding for that work, and if later is the
meaning of the phrase then what will be the
treatment when funding by the Government is
partial.

A similar question has arisen in case of works
contract service procured by BSF form private
construction companies.
A State PSU has been mandated by
Government of Odisha to create power
transmission infrastructure in the state. The
PSU claims that it is their mandate to create
infrastructure and they are eligible for 12%
GST on all inward supplies/ procurements,
irrespective of whether funding is by
Government or not.
(b) Request to clarify whether AIIMS, New
Delhi is a Government Entity and thus entitled
to procure WCS at concessional rate of 12%
under notification No. 11/2017-CTR, Sl. No. 3
(vi)?

2. Request to clarify whether IIM Ahmedabad is
(a) a Governmental Authority or (b) a
Government Entity or (c) both and whether as a
GA/ GE, it is entitled to procure pure services
and composite supply of goods and services
(where goods constitute not more than 25%)
without payment of GST under notification No.
12/2017-CTR, Sl. No. 3 and 3A?


VNIT Nagpur and Kandla Port Trust have also
filed applications for advance ruling on the
same issue. All these organizations are of view
that they are Government Authority/
Government entity. The basis of this
contention is that they have been set up to carry
out a function entrusted by the Central
Government, State Government, Union
Territory or a local authority.

Government Entity has been defined to mean
an authority or a board or any other body
including a society, trust, corporation, -
(i) set up by an Act of Parliament or State
Legislature; or
(ii) established by any Government,
with 90per cent. or more participation by
way of equity or control, to carry out a
function entrusted by the Central
Government, State Government, Union
Territory or a local authority.

Indian Institute of Management, Ahmedabad
is established under IIM Act, 2017 which
empowers it to attain standards of global
excellence in management, management
research and allied areas of knowledge.
Amongst other the objective of IIM is to
provide management education of high
quality and to promote allied areas of
knowledge as well as interdisciplinary
studies. Powers and functions of the institute
is vested under section 7 of the Act.

Board of Governors of each IIM is the
principal executive body and the Board shall
in the exercise of its power and discharge of
its functions under IIM Act, 2017 is
accountable to the Central Government.
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Therefore, IIM Ahmedabad is of the view
that they are Governmental authority as well
as Government entity and all the
concessional benefits prescribed for a
government entity are available to them.
3. Law Committee has referred that matter to
Fitment Committee to

(a) To prescribe End-use certification system /
form for notification number 12/2017-CT
(Rate) [entry no. 3], which exempts pure
services provided to Government, Local
Authority in relation to Municipality functions.

Under notification number 12/2017-CT
(Rate) [entry no. 3], “pure services” provided
to the Government or Local Authority or a
Government 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 decided that the
expression “in relation to” has a wide
meaning and therefore the exemption would
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 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.
which are the functions entrusted to
Municipality under Article 243W of the
Constitution.

“Pure services” provided to the Government
or Local Authority or a Government
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
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various services 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 services provided by the
implementing agency, i.e. CSC-SPV, provided
to MoSPI that activity of “Enumeration &
Supervision” 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
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:

1. Enumeration & Supervision (through door
to door visit throughout country).

2. Training and assessment of the
Enumerators & Supervisors engaged in field
work of EC.
3. Deployment of manpower to assist MoSPI
and State/UT Governments in 7th EC
activities.

4. Helpdesk and Call-centre support.

5. Awareness and sensitization

6. Project Management Charges (@ 8% of
project cost)

With respect to tax liability admissible on the
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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 3 of notification No.
12/2017-CT(R) dated 28.06.2017.

The Ministry of Panchayati Raj, in
collaboration with 16 architecture 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 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.
4. To exempt GST on National Permit Fee paid on
the vehicles for granting National Permits for
goods carriage


National Permit fee is not a consideration for
any service provided and is actually in the
nature of a tax.

The fee deposited in the National Permit
account is distributed on pro rata basis
among all states and Union Territories shows
that the same is not consideration for any
service provided by any state Government
/UT for grant of National Permit.
5. To exempt GST on the following facilities
provided to the members and ex-members of
the Legislative Assembly, Secretariat, at
Bengaluru
a) Accommodation at Legislators Home
Complex at nominal rent
b) Conveyance within BBMP
agglomeration limits with nominal rate
per km
c) Health Club for exclusive use of
members and ex-members at nominal
rate
d) Commercial Establishments for
essential needs of members like
Hon’ble Home Minister and GST Council
Member from Karnataka State in his note
dated: 02-02-2021 has informed that the
above facilities are provided by Karnataka
Legislative Assembly Secretariat to their
Hon’ble Members and ex-members to
effectively discharge their constitutional
duties and responsibilities as public
representative and therefore collecting GST
from them does not arise and requested to
consider the proposal of exempting income
earned by Karnataka Legislative Assembly
Secretariat by excluding the above facilities
provided to Hon’ble members and ex-
members from the ambit of GST with
retrospective effect.
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Proposal Justification for request- Issues deferred
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discussion
laundry, Bookshops, Railway/ KSRTC
reservation counters, hotel, bakery
given to private parties on rent


The Government is not considered to cover
the Legislature as the Parliament and
Legislative Assemblies and Council have
their own secretariat and are providing
services. Services provided by Government
(Executive) and the Judiciary are exempted
whereas the services provided by Legislature
Secretariats are not specifically exempted.

Further, the main issue relates to
transportation services provided – whether it
amounts to renting of vehicles or
transportation of passengers.
6. To exempt GST on entry fee for regional
language films screened on single screen.

The Karnataka Film Chamber and
Commerce Industry have raised the issue of
exemption of GST on regional language
films like Kannada, Kodava, Tulu, Konkani
and Banjara films in Karnataka. These films
were exempted from payment of
Entertainment tax prior to the introduction of
GST.

Representatives of the film industry have
informed that due to the Covid-19 pandemic
and consequent lock down, the survival of
the film industry has become difficult and
has requested regional films screened in
single screen theatres to be exempted from
GST.
7. 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. Entry
No. 3 of the said notification reads as under:

“3.Pure services (excluding works contract
service or other composite supplies involving
supply of any goods) provided to the Central
Government, State Government or Union
Territory or local authority or a
Governmental Authority by way of any
activity in relation to any function entrusted
to a Panchayat, under Article 243 G of
Constitution or in relation to any function
entrusted to Municipality under Article 243-
W of Constitution.”

In this regard any pure service related to
those functions entrusted to a panchayat
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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 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
8. Services provided by Central Government or
State Government or Governmental Authority
by way of granting of long term lease
(exceeding 30 years) should be exempted from
GST.

Upfront amount paid towards granting long
term lease of industrial plots has been
exempt since 01.06.2007 and same has been
carried forward from Service Tax regime to
GST with significant expansion of scope.
The scope of the exemption was expanded to
include long term lease of plots supplied by
entities having 50% or more ownership of
Central Government, State Government or
Union Territory in an industrial or financial
business area. Subsequently, the scope of the
exemption was further expanded and it has
included financial business area.

2. During 2nd Meeting of the Group of
Ministers (GoM) on boosting Real Estate
Sector held on 21.11.2019, the issue to
exempt GST on long term lease of land by
private / semi-private bodies for setting
industrial parks was discussed. The
Government of Punjab has requested to
exempt GST on long term lease of land by
private entities for industrial purpose.

3. After detailed deliberations, Hon’ble
members of the GoM recommended that:
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(i) Service by way of grant of long term
lease of land (thirty years, or more) of
industrial plots or plots for
development of infrastructure for
financial business, provided by the
State Government Industrial
Development Corporations /
Undertakings or any other entity
having 20% or more ownership of
Central Government, State
Government, Union Territory to (a)
industrial units or (b) developers in
any industrial or financial business
area, may be exempt from GST.
(ii) GST @ 5% may be levied 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. Similar safeguards
as at sl. no. (ii) and (iii) above shall
apply to this clause as well.

4. The recommendations made by GoM
were discussed in the 38th GST Council
meeting held on 18th December, 2019 at
New Delhi. The first recommendation has
been accepted. The second proposal relating
to rate of GST on long term lease of land of
industrial plots or plots for development of
infrastructure for financial business, provided
by a private person or entity, was referred to
the Fitment Committee.

5. During the deliberations in the GoM
and GST Council, it was believed that the
services provided by the Central State
Government or State Government or Local
Authority or Governmental authority in form
of long term lease of land of industrial plots
or plots for development of infrastructure for
financial business are already exempted in
GST because in such cases ownership of
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discussion
Government is 100%.

[Note:
(i) Initially, as per amendment made in
entry No. 41 vide notification No.
32/2017 – Central Tax (Rate) dt
13.10.2017, supply of services by way
of “Upfront amount (called as
premium, salami, cost, price,
development charges or by any other
name) payable in respect of service by
way of granting of long term lease of
thirty years, or more) of industrial
plots or plots for development of
infrastructure for financial business,
provided by the State Government
Industrial Development
CorporationsorUndertakingsor by
any other entity having 50 per cent. or
more ownership of Central
Government, State Government,
Union territory to the industrial units
or the developers in any industrial or
financial business area.
(ii) Subsequently, this limit of 50% is
reduced to 20% vide Notification No.
28 /2019- Central Tax (Rate) New
Delhi, the 31st December, 2019 w.e.f.
1/1/2020.
(iii) Therefore, it is firm view that where
the ownership of Government is
100%, no tax is leviable.]

6. Recently Gujarat Authority for
Advance Ruling held that one time long term
lease premium payable/paid by the
Jinmangal Corporation to Ahmedabad Urban
Development Authority is taxable supply and
is liable to pay tax under Reverse Charge
Mechanism in accordance to Section 9(3) of
the CGST Act in light of notification No.
13/2017 as amended by 05/2019.
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Sl.
No.
Proposal Justification for request- Issues deferred
by the Fitment Committee for further
discussion
7. In this regard:
(a) it may be clarified that tax shall not be
leviable on services provided by the Central
State Government or State Government or
Local Authority or Governmental authority
in form of long term lease of land of
industrial plots or plots for development of
infrastructure for financial business; or (b)
the issue may be deliberated afresh in light of
following legal arguments.
Legal position:

At present, tax liability under the GST Act
on services by way of granting long-term
lease transactions above 30 Years (HSN
9972) under different scenario is enclosed in
“Annexure”. Looking to the above scenario,
services provided by Central Government or
State Government or Governmental
Authority by way of granting Long term
lease is taxable in GST Regime. Reasons for
granting exemption: Generally, instead of
selling the immovable property directly to
industrial units or developers, Government
transfers the immovable property in the
following manner:
i. Transfer of the property by way of long
term lease
ii. Transfer the property by way of long term
lease by any authority constituted by the
Government (e.g. Ahmedabad Urban
Development Authority)
iii. Transfer the property by way of long term
lease by the Industrial Development
Corporation constituted by the Government
(e.g. Gujarat Industrial Development
Corporation).iv.Such authority charges
amount (i.e. upfront amount or lease
premium) as per the prevailing market rate at
time of entering into lease agreement and
subsequent lease rental charges are notional.
If the immovable property is sold by any
person, there is no tax liability as such
transactions are outside the purview of GST
(As per entry 5 of Schedule III).
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Sl.
No.
Proposal Justification for request- Issues deferred
by the Fitment Committee for further
discussion
As stated above, the Government doesn’t sell
the immovable property and instead transfers
the property to industrial unit or other
business entity (including promoter) through
long term lease. Such transactions cannot be
not covered under Notification 14/2017
(Rate) dated 28thJune, 2017 as such
activities are not in relation to a function
entrusted to a Panchayat under article 243G
of the Constitution or to a
8Municipality under article 243W of the
Constitution and therefore are taxable. Tax
liability arises on such transactions under
RCM on the recipient, which makes such
transactions unviable. There is no level
playing field between sales of land by any
person viz-a-viz long term lease of land by
the Government or Governmental Authority.
Therefore, levying tax on such transactions
seems unfair and not justifiable.

Proposal:
Therefore, it is proposed to exempt services
provided by Central Government or
State Government or Governmental
Authority by way of granting of long
term lease exceeding 30 years

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Agenda Item 11(iv): Issues placed before the Council in pursuance of directions of the Court -
GST rates on assistive devices
This agenda note is regarding the applicable GST rate on the supplies relating to disability
aids and equipment used by persons with disability, consequent to the Order dated 26-10-2020 of
Hon’ble Supreme Court of India in the matter of Nipun Malhotra Vs. Union of India [Writ Petition
(Civil) No.725 of 2017]).
Background
2.1 Briefly stated, under GST regime, a concessional rate of 5% has been prescribed on goods
used by the persons with disability [vide S.No. 256 and 257 of the Schedule I of notification No.
1/2017-Central Tax (Rate) dated 28th June, 2017]. These items are being subjected to the concessional
rate of 5% in order to allow the suppliers of these to avail the Input Tax Credit (ITC) and get the
refund of accumulated ITC on account of inverted duty structure. In case, these goods were to be
exempted, the suppliers of the said goods would not be allowed to avail the ITC and the tax paid by
such suppliers on the inputs would become a part of the cost of the final supplies to consumers.
2.2 The issue of taxation of the goods used by the persons with disability was discussed in the
14th GST Council held on 18th and 19th May, 2017 wherein it was discussed that the said items may
not be exempted because in that case these items will not be eligible for ITC. Subsequently, the
request to exempt GST on assistive devices has considered by the council in its meetings held on 11th
June, 2017, 22nd December, 2018, and 20th September, 2019 and it has been decided not to change the
tax rate on such devices so as to enable refund of accumulated input tax credit to the manufacturers.
Therefore, it was a conscious decision of the GST Council to keep these items in 5% GST bracket.
Writ Petition
3.1 Subsequently, a Writ Petition (Civil) No. 725/2017 has been filed by Shri Nipun Malhotra
challenging the imposition of 5% GST on assistive devices for the disabled inter alia on the grounds
that the imposed GST has the effect of dividing the society amongst the disabled and the able by
placing a tax burden on the disabled. This levy violates fundamental right, is at deviation from
international practice. Accordingly, it has been pleaded that said tax violated the Fundamental Rights
of the disabled.
3.2 The issues raised by the petitioner in his petition was examined in detail and a counter
affidavit was filed by the Union Government in the matter. It was apprised by the Union Government
to the Hon’ble Court that the extent and rate of taxation is an executive function. If the competence of
the legislature stands established, the quantum of tax, conditions of taxation form a part of
competence of the legislature. The levy of GST at the lowest rate of 5% was defended on the ground
that 5% GST rate enable manufacturer to utilize input tax credit and in case of overflow take refund
thereof. Exemption would break ITC chain and thus blockage of ITC. The GST law does not allow
refund of accumulated ITC on exempted goods for domestic consumption. Hon’ble Court was also
apprised of international practices which vary from country to country. A few impose GST at lower
rates while other exempt and a few zero rate certain supplies for physically handicap. Learned
Attorney General appeared on behalf of Union of India.
3.3 However, Hon’ble Court in its Order dated 26.10.2020 in the present case has made GST
Council as a necessary party in the matter. Court has further directed the petitioner to file a
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representation to the GST Council seeking the abolishment of the levy of 5% GST on the goods used
by the persons with disability.
3.4 Subsequently, the petitioner has filed a representation dated 25th November, 2020 seeking
abolition of the 5% GST imposed on the items used by the persons with disability. The copy of the
representation dated 25-11-2020 is placed for consideration of the Council as Volume-4 of the
detailed Agenda Notes.
Ground relied by the Petitioner in the representation dated 25.11.2020
4 Petitioner has stated the following grounds for abolition of the 5% GST on the items used by
the persons with disability: -
(i) The levy of 5% GST on the Disability aids and equipment is incorrectly stated as “beneficial” for
the end disabled user by the Respondent No. 1 i.e. Union of India. This argument vests on the
false and misleading assumption that the levy of 5% GST allows for the reduction of cost of these
products of the end disabled-user in domestic markets as the manufacturers are able to claim Input
Tax Credit (ITC) on the inputs used to manufacture these products. This “benefit” is wrongly
referenced to a “zero-tax regime”. This so because the benefit accrued from such an ITC accrues
only to the manufacturer and not to the disabled consumer.
(ii) The levy of 5% GST on disability aids and equipment violates the fundamental rights of the
person with disability as envisaged under Article 14, 15, 19, 21 and 21A of the Constitution. The
Hon’ble SC has in the cases of Jindal Stainless Steel V State of Haryana [(2017) 12 SCC 1],
Aashirwad Films v Union of India [(2007) 6 SCC 624] and Indian Express Newspaper v Union of
India [(1985) 1 SCC 641] held that the levy of taxes which violate the fundamental rights of a
class of persons to be unconstitutional.

Fitment Committee Recommendation
5.1 Fitment Committee discussed this issue at length. The Committee observed that, tax policy in
general and indirect tax concessions in particular, do not appear to be the right instrument to provide
relief in the instant case. Indirect tax concessions, especially full exemptions, usually result in duty
inversions that blocks input tax credits which may lead to increase in costs of the goods required by
the beneficiaries. Besides, a minimum level of GST helps in encouraging domestic manufacturing of
these items thereby reducing the dependence on international market for these crucial goods.
Committee also felt that zero rating for domestic consumption is not permissible in law. As such the
goods are at lower rate slab of 5% and this rate has been consciously recommended by the Council.
This tax does not impinge on the fundamental right. In fact, the council has consciously kept the GST
rate on these items at low rate of 5%. The Committee also noted that there are many schemes which
are being run by the Department of Empowerment of Persons with Disabilities (Divyangjan) to
empower persons with disabilities (list attached as ‘Annexure-I’). Therefore, the Fitment Committee
was of the opinion that, instead of tax policy, support through public expenditure, especially in the
form of direct subsidy to the beneficiaries and disabled friendly infrastructure creation, was the most
effective policy option to provide assistance and relief to the persons with disabilities.
5.2 In the view of above, fitment committee felt that present rate structure on these items merits
continuation.
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Representation to be placed before GST Council
6. The matter is placed before the GST Council for a decision as directed by Hon’ble Supreme
Court vide aforesaid order dated 26.10.2020.
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Annexure-I
Schemes being run by the Department of Empowerment of Persons with Disabilities
(Divyangjan)
1. Deendayal Disabled Rehabilitation Scheme (DDRS)
2. District Disability Rehabilitation Centers (DDRCs)
3. Assistance to Disabled Persons for Purchase/Fitting of Aids/Appliances (ADIP)
4. Scheme for Implementation of Rights of Persons with Disabilities Act, 2016 (SIPDA)
5. Accessible India Campaign / Sugamya Bharat Abhiyan
6. Scheme for Awareness Generation and Publicity
7. Research on Disability Related Technology, Products and Issues
8. Unique Disability ID Project (UDID)
9. Incentive Scheme for providing employment to Persons with Disabilities (PwDs) in the private
sector
10. In-Service Training and Sensitization of key Functionaries of Central and State Government,
Local Bodies and other Service
11. Scheme of “Support for Establishment/ Modernization/ Capacity Augmentation of Braille
Presses”
12. State Spinal Injury Centre
13. Scheme for Financial Assistance to Colleges for Deaf in Five Regions of the countryProviders
14. Scholarship Schemes
15. Scheme for providing Financial Assistance under the National Fund for Persons with Disabilities
16. Exhibitions/workshops to showcase the products including paintings, handicraft, etc. made by the
PwDs.
17. Support persons with benchmark disabilities who have excelled in sports/ fine
arts/music/dance/film/theatre/literature at the State level to participate in the National and
International events.
18. Support certain exclusive needs of persons with high support needs as recommended by the
Assessment Boards on specific recommendation by the States on a case-to-case basis.
19. Indian Spinal Injury Centre (ISIC)
20. The National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation &
Multiple Disabilities
21. National Handicapped Finance and Development Corporation (NHFDC)
22. National Awards for the Empowerment of Persons with Disabilities.


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Agenda Item 11(v): Issues placed before the Council in pursuance of directions of the Court -
Exclusion of ice cream from composition levy
The agenda note is regarding the direction of Hon’ble High Court of Delhi in the matter of
Writ Petition No. 5252/2019, M/s Del Small Ice Cream Manufacturers Welfare‘s Association Vs.
Union of India wherein petitioner had challenged exclusion of Ice Cream from the ambit of
composition levy under section 10 of the CGST Act. Hon’ble Court after consideration of issue has
directed that matter be placed before Council for a re-look by the Council.
Background
2. Briefly stated, the composition levy covers prescribed on all goods except those notified by
the government (section 10(2)(e) of CGST Act 2017). The exclusions from Composition Scheme
were deliberated in the GST Council in the 17th Meeting held on 18.06.2017 and is recorded as per
Agenda Item 3. After due deliberations above, the Council recommended that the manufacturers of
Ice Cream and other edible ice, whether or not containing cocoa [HS 2105 00 00] (along with
manufacturers of Pan Masala and Tobacco products). Exclusion of ice cream was made on the
grounds that major input for ice cream is milk which is exempt, therefore allowing composition levy
on ice cream will lead to significant loss of tax revenue.
Writ Petition (Civil) No. 5252/2019
3.1 A Writ Petition (Civil) No. 5252/2019 was filed by M/s Del Small Ice Cream Manufacturers
Welfare Association challenging the exclusion of ice cream from the composition levy under Section
10(2)(e) of the CGST Act 2017 inter alia on the grounds that the reasoning for exclusion of ice cream
is fallacious as ice cream does comprise of large number of other components on which GST is
levied.
3.2 Further, the petitioner also contended that the GST Council, in exercise of powers under
Section 10(2)(e ) of the Act has clubbed ice cream with pan masala and tobacco which are sin goods
very unlike ice cream.
3.3 The Hon’ble Court in its Order dated 09.02.2021 in the present case, has made the following
observations:
(i) A reading of Section 10(2) (e) of the Act shows that no parameters, whatever, on the anvil of
which the respondent No.2 GST council may recommend for notification, any goods from the
benefit of Section 10(1) of the Act, have been prescribed.
(ii) On the perusal of minutes of 16th and 17th GST Council meeting, the Hon’ble Court has
enquired whether any study has been done by the respondent No.2 GST Council, of the tax
effect of extending benefit of Section 10(1) to small scale manufactures of other similar goods
and services. The perusal of minutes also shows that the reason as emanating from the 17th
meeting viz. of the taxation effect, on benefit of Section 10(1) being permitted to be given to
ice cream, being enormous.
(iii) The court has passed the following direction: -
22. Only direction which can be issued in this petition is, to direct the respondent
no. 2 GST Council to reconsider the exclusion of small scale manufacturers of ice
cream from the benefit of Section 10(1) of the Act, including on the aforesaid two
parameters i.e. the components used in the ice cream and the GST payable thereon
and other similar goods having similar tax effect continuing enjoy the benefit. We
direct accordingly.
23. The respondent no. 2 GST Council to take up the aforesaid aspect in its next
meeting and to take a decision thereon at the earliest, keeping in view that the ice
cream season has just begun, and preferably within three months of today.
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3.4 Accordingly, the copy of the Order dated 09-02-2021 is placed for consideration of the
Council in Volume-4 of the Detailed Agenda Notes. Consequent to this order by Hon’ble High Court,
the two issues under consideration are as under:
(a) The components used in the ice cream and the GST payable thereon.
(b) Other similar goods having similar tax effect continuing enjoy the benefit.
4. As regards the components used in the ice cream and the GST payable thereon, as per the
standard for ice cream, kulfi, chocolate ice cream, etc. issued under Food Safety and Standards (Food
Products Standards and Food Additives) Regulations 2011, Ice-Cream, Kulfi, Chocolate Ice Cream or
Softy Ice-Cream means the frozen milk (product conforming to the composition specified in entry (i)
of sub-item (c) of item 2 (of the said regulations), obtained by freezing a pasteurized mix prepared
from milk or other products derived from milk, or both, with or without addition of nutritive
sweeteners and other permitted non-dairy ingredients. The said product may contain incorporated air
and shall be frozen hard except in case of softy ice-cream where it can be frozen to a soft consistency.
5. Regarding weight-age of these commodities in ice cream manufacturing, as per the inputs
provided by GCMMF Ltd (Amul) the breakup for ice cream is as under:
Constitutions/
Inputs
HSN Weightage
in total
inputs for
that Brand
(Value wise)
Input
per
unit
price
(Rs per
Kg)
Value wise
weightage
(percentage)
GST
Applicable
Total
GST
paid on
inputs
for Rs
100
worth
of ice
cream
inputs
used.
(1) (2) (3) (4) (5) (6) (7)
Milk and Cream
040120,
040150 64.99 81.6 53.7 0% 0
Butter 040510 13.56 181.50 24.9 12% 2.99
Skimmed Milk
powder
040210 6 255 15.4 5% 0.77
Food Stabilizer 130220 0.3 162 0.5 18% 0.09
Sugar 170113 15 32.81 5 5% 0.25
Flavor 330210 0.15 263.70 0.4 18% 0.07
Total 100 Rs 100 Rs 4.17

6.1 As detailed above, in case of ice cream, approximate costing calculations show that for every
ice-cream manufactured of value Rs 100, Rs 54 worth of milk and cream is used which is exempt
from GST which is the primary input. As detailed in column (7) in table above, total tax paid on
inputs worth Rs 100 is Rs 4.17 which is less than 5% of the value of inputs. Hence, ice cream dealer is
required to pay significant portion of his liability in cash (ITC being low).
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6.2 As regards other similar goods (edible, non-essential products), exclusion from Composition
Scheme are only a few items, as detailed above.
7. The market size of ice cream in India is estimated to be around Rs 15000 Cr at 2019 data.
This market is dominated by Amul and Kwality Walls (together account for 75% of the market).
Other big players include Vadilal, Naturals, Havmor, Mother Dairy etc. In addition, there are few
local brands that enjoy significant turnover. However, there are many small venders operating locally
who may have turnover of upto Rs. 1.5 Cr. They may have smaller share of the market but are large in
numbers.
8. In the above background, the order of the Hon’ble High Court was placed before the Fitment
Committee for looking into the matter before placing it before the Council.
9. The Fitment Committee examined the issue and was prima facie of the view that exclusion of
Ice Cream has been well debated in the Council. Revenue implication of inclusion of Ice Cream under
composition has significant implication as it has high value addition. Council has decided this
exclusion taking relevant factors into account. Even, aerated water exclusion has been made, while it
was earlier covered, w.e.f. Oct 2019 on the ground of revenue implication. The Committee observed
that even in pre-GST regime it was excluded from composition in a number of states. Under GST
regime, the exclusion has been limited only to ice cream, Aerated drinks, Pan Masala and Tobacco.
Therefore, the Committee felt that matter be placed before the Council for consideration. It also felt
that there is a need for a detailed study of coverage (inclusions and exclusions) from composition
scheme, particularly as regards sectors where there is significant value addition and consumption. In
this regards direction of the Council be taken.


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Agenda Item 12 : Correction of Inverted Rate Structure on textiles and footwear
The Committee of Officers on Augmentation of Revenue identified ‘Inverted Rate Structure’
as a significant issue that has led to certain distortions in the GST tax regime and need correction.
Inversion in rates causes accumulation of input tax credit with a manufacturer producing the goods.
The Fitment Committee examined the issue and made the following recommendations on textiles,
footwear, mobile and fertilizers. These items were most affected by inverted rate structure:
i. GST rate on mobile phones and its parts (falling under Chapter 85) may be increased
from 12% to 18%.
ii. GST rate on Chemical fertilizers may be increased from 5% to 12%.
iii. GST rate on footwear with value upto Rs.1000/- per pair, may be increased from 5%
to 12%.
iv. Following rate structure on textiles: -
a. 5% GST on cotton and other natural fibres (except raw jute, silk and wool) and
all-natural fibre yarns.
b. 12% GST on manmade fibres
c. 12% GST on MMF yarns
d. 12% GST on all fabrics
e. 12% GST on all garments and made-ups
f. 12% GST on dyeing services
2. The above recommendations, were placed before the GST Council in its 39th meeting held on
14th March, 2020. The Council deliberated the issue in detail and accepted the recommendations of
the Fitment Committee for increasing the GST rates on mobile phones and parts from 12% to 18%
and decided to take up the issue of inverted tax structure on textiles, fertilizers, footwear and others in
future meetings of the Council. Further, Council was of the view that other items of inversion may
also be taken up for discussion at appropriate time.
3. The issue of Inverted Duty Structure was again taken up by the GST Council in its 40th
meeting held on 12th June, 2020 wherein the Council agreed in principle that there is a need for
correction of the inverted duty structure but owing to the economic situation due to Covid-19,
deferred the issue for a later appropriate time.
4. Inverted rates create distortion in GST, as they are a deviation from the basic philosophy of a
value added tax. The adverse implications of inverted rates are as follows:
(i) A manufacturer suffers cash flow issues in case of inverted rate structure, even if
refund of accumulated ITC on inputs is eventually refunded.
(ii) The accumulated ITC on input services and capital goods is not refundable even if
rate structure is inverted. Input services constitute significant portion of cost. Thus,
accumulated ITC on input services would be significant. Accumulated ITC on capital goods is
a burden for exporters too.
(iii) Small standalone units suffer more on account of inversion (in comparison to a large
composite unit).
(iv) Inverted rate structure makes import more competitive putting domestic units at
disadvantage. While domestic unit suffer the adversities of accumulated ITC, the import simply
enjoys lower IGST without any inversion or accumulated ITC.
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(v) Inversion disincentives capital investment. Acquisition of capital goods for
manufacturer of goods suffering inversion (say fabrics) would lead to hardship for a new unit or
a unit undertaking expansion of capacity, as ITC on capital goods accumulates and cannot be
adjusted with output tax liability. This has been argued by industry.
(vi) A consumer is also unlikely to gain much on account of lower rate on goods suffering
inversion. The embedded taxes become cost and likely to be passed on. Further, as new
investment is dissuaded in such sectors, customers choices get restricted and sector remain
uncompetitive/inefficient leading to adverse consequences in terms of price and availability of
goods.
(vii) Even claiming refund of accumulated ITC on inputs requires effort, cost and often
marred with litigation.
(viii) With technological advancement and increasing production, net unit value addition at
manufacturer’s end falls. Manufacturers have been outsourcing more, including the manpower
supply. This makes inversion further acute.
(ix) In absence of any standardised input output norms, the inverted rate structure has also
led to making fraudulent refund claim that is accumulated on fake invoice in items like
footwear.
(x) Inverted rates also have serious implication to revenue as there has been substantial
outgo in refund of accumulated ITC on inputs (no refund is given on input services and capital
goods).
Thus, overall, inverted rate structure would make domestic industry less competitive, result is cash
flow issues besides accumulation of ITC that sticks to cost, lead to unfair practices, creates dis-
incentive for investment in newer technology and expansion, does not really benefit the consumer
much in terms of cost reductions and has serious implication to revenue
5. In view of the above, a proposal for correcting the Inverted Rate Structure on Footwear and
Textiles is placed before the Council. As regards fertilizers, taking into account the certain concern
were expressed on account of implication to agriculture, it is proposed that Council may take up the
issue later.
Footwear:
6. India produces more than 2 billion pairs of different categories of footwear. Over the years
the percentage of non-leather footwear has been increasing and at present non-leather footwear
constitutes about 60% of the total footwears made. Even in leather footwear as significant constituents
(like soles, consumable, embellishments etc.) is of non-leather items. Hence, non-leather inputs, as
discussed below are the major constituents of footwear industry. There are nearly 15000 units
engaged in manufacturing footwear in India with total turnover of these manufacturing unit is
estimated at Rs. 70,000 crores. The value addition in this industry is about 15-20%. With post
manufacturing (trading) value addition and imports of footwear, the total domestic consumption
estimated to be about Rs 80,000 crore a year (met with domestic supply and imports). As the major
constituents of footwear industry attract standard rate (except leather-cost which on an average is
about 20% in leather footwear), the inversion in footwear with 5% rate is acute.
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7. While pre-GST tax incidence on footwear was significantly higher (ranging from 10% to
29%), the GST Council recommended a lower dual rate structure for footwear with 5% rate on
footwear with retail sale price up to Rs. 500 and 18% on other footwears. The Council revisited the
rate structure on footwear and concessional rate of 5% was extended up to footwear with retail sale
price upto Rs. 1000 with effect from August, 2018. Subsequently, w.e.f. 1.1.2019 further concession
was given to footwear and GST rate would apply on the supply value rather than on the basis of retail
sale price.
8. This has led to inversion in rate structure, as majority of sale of footwear (about 70% in value
term) is at concessional GST rate of 5%. This has also led to a refund of about Rs 2000 crore a year.
The major inputs of footwear and their typical share in a footwear are as under:
Parts Material GST rate
Proportion in
Cost
Shoe Sole Natural/Synthetic Rubber,
Precipitated Silica, Elasto
Polymer
18% 25%
Shoe Upper Leather, Technical Textile,
Rubber, Plastic
5%/12%/18% 30%
Chemicals,
components,
embellishments, other
Parts, Consumables
and other inputs
Adhesives, [PU,
polychloroprene, PVA,
Acrylics, Isocyanate],
Solvents [MEK], Colors
and Pigments, Catalysts etc.
18% 15%
Overheads and other expenditures (Capital goods,
input services)
18% on capital goods
and input services
(other than job work)
25%
Margin 5%
Source: Industry data
9. In general dual rate structure needs to be avoided as it creates distortion and leads to mis-
declaration/ evasion of taxes. As such an ad valorem rate ensures that in absolute term the lower
segment would suffer lesser tax incidence. Therefore, ideal all footwear should be standard rated.
However, considering that the items is a mass consumption goods, at this stage 12% rate for footwear
with value upto Rs.1000/- per pair may be conducive to correct inversion.
Textiles:
10. The GST rate structure on all goods of the textile value chain was deliberated at length during
the 15th meeting of the GST council held on 03.06.2017 and subsequent GST Council meetings.
Based on the Pre-GST tax incidence, the GST Council recommended: -
(a) 18% GST on Man-made fibres
(b) 18% rate on MMF filaments and yarns,
(b) 5% GST on cotton, silk, wool and other natural fibre and yarns
(c) 5% on raw cotton and other vegetable fibres; nil rate on raw silk, raw wool and raw jute.
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(d) 5% on all apparel fabrics including Man-made fibre fabrics with restriction on refund of
accumulated ITC at fabric stage.
(e) 12% rate on technical and other fabrics such as narrow fabrics.

11. In pre-GST regime fabrics suffered a much higher tax incidence. While cotton fabric had an
incidence of about 9%, MMF fabrics had an incidence of about 13.6%. Therefore, a 5% rate in GST
was much lower. Taking this into account Council prescribed the restriction of not allowing refund of
accumulated ITC on fabrics. After roll out of GST, the textile industry represented that the rate
structure resulted in acute inversion in textile sector particularly at fabric stage. It was also argued that
the restriction of not allowing refund of accumulated ITC on fabrics favoured large composite mills
while standalone power looms suffered. Accordingly, in stages further relief was extended to textile
sector. To begin with GST rate on manmade yarn was reduced to 12%. Thereafter, refund of
accumulated ITC was allowed on fabrics with prospective effect from 1.8.2018. Job-work services
were also brought down to 5%. However, these changes have not been able to sort out the inversion
issues. Yarn continues to suffer significant inversion as value addition from fibre to yarn is not
significant. Hence, standalone spinning units suffer. Fabric, particularly made on MMF or blended,
continues to have inversion on account of higher tax rate on yarn, input services and capital goods.
The adverse impact of inverted rate structure has bearing to ready-made garment segment too on
account of accumulated ITC on services and capital goods. Also the cost associated with inversion on
fabric becomes a cost that is transferred by fabric manufacturer to readymade garments.
12. On ready-made garments the pre-GST incidence was about 13.2%. Hence, 5% rate in GST is
significantly lower.
13. Lower rate of 5% on job-work has led to hardship to dyeing units. Their significant inputs like
chemicals and dyes attract GST at the rate of 18%. Further critical input services of effluent treatment
attract GST at the rate of 12%. These job workers have been representing for correcting inversion
even if it requires increasing rate to 12% of dyeing services.
14. Ministry of Textiles has recommended for correcting inverted rate structure so as to un-
shackle it from the burden of taxes (accumulated ITC etc). It has been stated that liberating this sector
will also substantially increase employment opportunities in the textile industry. The differential rates
and slow-refunds of accumulated input tax credit has affected the competitiveness of the industry and
has proven to be a deterrent for investment in the sector. Ministry of Textile is of the view that for tax
uniformity across the value chain, MMF fibres and yarns need to be brought under a uniform tax slab
to take care of inversion in tax structure. This will benefit the spinning and power loom sectors,
which in turn will boost the garment sector and create huge job opportunities. An inter-Ministerial
Group (IMG) consisting of Ministry of Textiles, Commerce and NITI Aayog has also similar views.
The IMG has observed that with implied limitation on growing cotton, manmade fibre base needs to
grow at least 5 times in next 5 years.
15. The inversion in rate structure of textile sector has led to a refund of more than Rs 4000 crore.
This is anticipated to grow considerably in future considering that in the first year, refund of
accumulated ITC was not allowed to fabric units.
16. The volumes of quantity produced and sold for textile sectors broadly are as follows. Cotton
yarn - 4200 Mn Kg, man-made fibre and yarn- 3600 Mn Kg, fibre being about 1200 Mn Kgs. (Source
DC&PC, Textile Commissioner). In coming years, the man-made segment is anticipated to grow
faster than natural fibre segment.
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17. General view as regards GST rate structure in textile sector is that the 5% rate on fabrics and
lower value garments (Rs 1000 per pc) is an anomaly. Manufactured goods should either have higher
or equal rate (in comparison to the rate as applicable to key inputs). However, a divergent view
offered was that the output tax rate on mass consumption commodities like garments and fabrics
should be viewed from the point of view of the consumer interests and not solely from the view of
industry hardships or inversion. On this count any increase in rate of fabric and garment may not be
justifiable.
18. The experience since the roll out of GST has been that inverted rate structure has led to
significant adverse impact as stated above. It has not really benefitted the consumer either. Lower
incidence did not lead to reduction of prices of fabrics or garments. In any case, inversion of tax rate
meant that a lot of cost on account of accumulated ITC on services, capital goods and the resource
cost for seeking refund of accumulated ITC on input sticks to the cost of fabric and garments. This
may be 4-5% considering service and capital goods would at least constitute 20-25% of the input cost.
Further, removal of inversion would give boost to the garment sector and with increasing production
customer would only benefit. Therefore, increase in tax rates may at the most a marginal effect of
garment. Besides, there exists a strong economic justification, as argued by Ministry of Textiles, that
refined rate structure will help the sector to grow at faster pace.
19. The dyeing industry has also been severely affected by inversion as the output service attract
GST rate of 5% while their significant inputs like dyes attract GST at the rate of 18% and significant
services like effluent treatment also attract a GST of 12%. This industry has represented for correction
of inversion by raising GST rate on the process of dyeing from 5% to 12%. Once the fabrics rate is
calibrated to 12%, it would also be feasible to calibrate the GST rate of dyeing industry. Fitment
Committee is also of the view that dual rate on readymade garment and made ups be avoided. RMG
and made up, irrespective of value be placed at uniform rate of 12%. Ad valorem rate would ensure
that lower rate garment suffer lower tax in absolute terms. As stated, rate calibration shall not have
any significant implication to consumer. In long run, as sector grows, it would benefit consumers and
economy as streamlining of the tax structure textile industry would be able to grow at a more rapid
pace and with increased productions and economies of scale, the costs and prices in this sector would
naturally go down.
20. In view of the above discussions, the following rate structure on textiles is proposed: -
(a) 5% GST on cotton and other natural fibres (except raw jute, silk and wool) and all-
natural fibre yarns.
(b) 12% GST on manmade fibres
(c) 12% GST on MMF yarns
(d) 12% GST on all fabrics
(e) 12% GST on all garments and made-up
(f) 12% GST on dyeing services

Other items which suffer inversion in rates:
21. In the previous deliberation in the Council on the need for correcting inversion, there has been
a general consensus that inverted rate structure need correction to the extent feasible and therefore,
other items may be identified. In this regard, it is submitted that certain other sectors where significant
inversion exists are renewable energy devices, railway parts (though corrected partially by revision of
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GST from 5% to 12%), pharmaceuticals, tractors, machineries liking milling, LEDs, agarbatti, ink,
pen, utensils, water pumps etc. These items being at lower rate slabs of 5% and 12 [while their input
and input services are at 18%]. The extent of inversion in these items shall be examined by Fitment
for making recommendation to the Hon’ble Council for consideration and making recommendation in
the future meeting.
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Agenda Item 13: Applicability of Goods and Services Tax on Extra Neutral Alcohol (ENA)
Briefly stated, an Agenda Note for GST Council on the taxation of rectified spirit/ Extra
Neutral Alcohol (ENA) under GST was considered in the 20th Meeting of GST Council held on
05.08.2017, wherein the Council, had recommended:
a) For the time being status quo should be maintained regarding taxation of ENA for
manufacture of alcoholic liquor for human consumption.
b) legal opinion of the Attorney General of India may be sought regarding whether within
the prevailing constitutional provisions, GST can be levied on supply of ENA for
manufacture of alcoholic liquor for human consumption or not?
c) Representatives of States who wish to participate in briefing to the Ld. AG may also be
invited for such briefing on the issue before the Ld. AG and may also be invited to attend
the same.

2.1 Accordingly, the issue of applicability of GST on supply of rectified spirit/ Extra Neutral
Alcohol (ENA) for manufacture of alcoholic liquor for human consumption was referred to Ld.
Attorney General. Further, as desired by the Ld. Attorney General, a number of States had sent
detailed notes on applicability of GST on rectified spirit/ Extra Neutral Alcohol (ENA) for
manufacture of alcoholic liquor for human consumption. Thereafter, representatives of Tamil Nadu,
Karnataka, Haryana, West Bengal, Andhra Pradesh, Rajasthan and Maharashtra also briefed the Ld.
Attorney General on the issue. The Ld. Attorney General rendered his opinion on the matter, through
Ministry of Law and Justice, as under:
i. There is no dispute between the Centre and the States as to the levy of GST on industrial
alcohol (i.e., denatured ENA), there is divergence of opinion in regard to ENA that is used for
manufacture of ‘alcoholic liquor for human consumption.’
ii. A note containing the views received from the State of West Bengal, objects to the levy of
GST on ENA by relying on the judgment of the Supreme Court of India in Bihar Distillery v.
Union of India (1997) 2 SCC 727. The State contends that no GST can be levied on ENA that
is used to manufacture alcoholic liquor for human consumption and the power to regulate and
impose taxes on ENA is vested exclusively in the States.
iii. The representations received from the Government of Tamil Nadu, Rajasthan and Andhra
Pradesh also place reliance on the judgment of the Supreme Court in Bihar Distillery (supra)
to contend that no GST can be levied on ENA.
iv. At the request of the Ministry of Finance, a conference with the representatives of the States
of West Bengal, Karnataka, Andhra Pradesh, Tamil Nadu, Rajasthan and Maharashtra.
During the conference, these States have once again placed reliance on the judgment of the
Supreme Court in Bihar Distillery to submit that the power to levy tax on ENA would vest
exclusively with the State Governments and therefore, no GST can be levied.
v. Even though the judgment of the Supreme Court in Bihar Distillery (supra) does hold that the
States have the power to control rectified spirit removed for manufacturing potable liquors,
thus judgment cannot be used as precedent for the proposition that the States have absolute
power to impose taxes on ENA that is used to manufacture ‘alcoholic liquor for human
consumption’. This is because:
a) The court in Bihar Distillery was not concerned with the power of the State to levy Excise
under Entry 51. To that extent, the court did not deal with the meaning of the words
‘alcoholic liquor for human consumption’ as used in Entry 51. On the other hand, the
Court was only concerned with the regulatory power of the State under Entry 8 of List II.
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Entry 8 in its entirely reads – ‘intoxicating liquors, that is to say, the production,
manufacture, possession, transport, purchase and sale of intoxication liquors’. Nowhere
does Entry 8 use the phrase ‘alcoholic liquor for human consumption’
b) The meaning of the term ‘alcoholic liquor for human consumption’ has been dealt with
categorically in Synthetics and Chemicals v. State of UP (1990) 1 SCC 109 (7 judges) and
State of UP v. Modi Distillery (1995) 5 SCC 753 (3 judges). In Synthetics, the Court has
held that the expression ‘alcoholic liquor for human consumption’ means that liquor
which as it is consumable in the sense capable of being taken by human beings as such as
beverage or drinks. In Modi Distillery, the Court held that ethyl alcohol (95 per cent) was
not an alcoholic liquor for human consumption but could be used as a raw material or
input, after processing and substantial dilution, in the production of whisky, gin, country
liquor, etc.
c) The two judge bench of the Court in Bihar Distillery (supra) has not referred to the three
judge bench decision in Modi Distillery where the Court, dealing with the power of the
State under Entry 51 List II, clearly held that “by common standards, ethyl alcohol (which
had 95 per cent strength) was an industrial alcohol and was not fit for human
consumption.”
d) The Supreme Court has subsequently overruled Bihar Distillery on the very question of
imposition of excise duty by the State on rectified spirit. In Deccan Sugar & Abkari Co.
Ltd. V. Commissioner of Excise, A.P, (1998) 3 SCC 272 the Supreme Court once again
dealt with the question of the power of the State to levy Excise duty on rectified spirit and
after noticing the judgment in Bihar Distillery, the Court referred the matter to a larger
bench for consideration of the question whether any excise duty can be levied by the Sate
on the manufactured rectified spirit which may ultimately be used for production of
potable liquor. At Para 4 of the judgment, the Court held:
‘4. It is to be kept in view that the aforesaid decision rendered in Bihar Distillery
case [(1997) 2 SCC 727] by a bench of two learned Judges of this Court was
strictly concerned with the question whether the State could cancel licenses given
to a distillery manufacturing rectified spirit on the grounds as alleged to be
relevant for such cancellation. Therefore, strictly speaking there was no
occasion for this Court in Bihar Distillery case [(1997) 2 SCC 727] to consider
the wider question whether any excise duty can be levied by the State on the
manufactured rectified spirit which may ultimately be used for production of
potable liquor. Even that apart the aforesaid observations made in Bihar
Distillery case [(1997) SCC 727] by the Division Bench of this Court prima facie
run counter to the scheme of legislative competence as examined by the
Constitution Bench of this Court as well as in the three-Judge Bench of this
Court in Modi Distillery [(1995) 5 SCC 753] . Consequently, in our view these
matters are required to be placed for decision before a larger Bench of three
learned Judges of this Court for reconsideration of the judgment in Bihar
Distillery case [(1997) 2 SCC 727]. We therefore direct the Registry to place all
these appeals for disposal before a larger Bench of three learned Judges….’
e) Thereafter, a three judge bench of this Court was constituted. This bench considered the
matter on 13th February 2002 and in a judgment reported in (2004) 1 SCC 243 it held that
“the state can levy excise duty only on potable liquor fit for human consumption and as
rectified spirit does not fall under that category the State Legislature cannot impose any
excise duty”.
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f) Lastly, in State of Bihar v. Industrial Corporation, (2003) 11 SCC 465, the Supreme
Court, while dealing with the question of the power of the State to levy a penalty for loss
or wastage of molasses, rejected the argument of the State that molasses were diverted
towards manufacturing liquor which is fit for human consumption and held that ‘no penal
duty could have been imposed on rectified spirit’. At Para 23 of the judgment, the Court,
after referring to Bihar Distillery (supra) has held:
“24. How far and to what extent the said observations are correct need not
be considered by us but suffice it to point out that this decision had not
noticed the earlier decision given by a Bench of three learned Judges in Modi
Distillery. Modi Distillery applies on all fours to the facts of the present case
and we are bound thereby…
vi. ENA typically contains 95% alcohol by volume and as such, is not fit for human
consumption. Under Article 246A (1) read with 366 (12A), GST cannot be levied on the
‘supply’ of ‘alcoholic liquor for human consumption’. ENA that is used for the manufacture
of alcoholic liquor is not supply for the purpose of human consumption as it is not consumed
directly, but goes through a process of manufacture.

2.2 For the reasons mentioned above, Ld. AG is of the opinion that the judgment of the Court in
Bihar Distillery does not denude the Centre or the States of the power to levy GST on ENA that is
used to manufacture ‘alcoholic liquor for human consumption’.
3. The abovementioned opinion of the Ld. Attorney General was circulated among States vide
GST Council email dated 16.01.2018.
4. The above issue was discussed in the GST Core Group Meeting held on 1st March, 2018,
where it was decided that in view of the opinion of the Ld. Attorney General, the issue may be placed
before the GST Council for its considerations and necessary recommendations. The applicability of
GST on ENA was also one of the agenda points for discussion for the 26th GST Council meeting.
However the same could not be discussed due to the paucity of time.
5. In the interim, further comments have been received from the States of West Bengal,
Rajasthan and Uttar Pradesh. Their comments are at the Annexure-I.
6. The issue was placed before the GST Council in its 37th meeting held on 20th September, 2019
and it was decided that as the larger issue of applicability of GST on ENA is pending before the
Council, in the interim period, status-quo be maintained and the States may go by the decision of GST
Council as recorded in the minutes of the 20th meeting of the GST Council meeting held on 5th August
2017.
7. Due to lack of clarity on the issue, divergent practices are being adopted by distilleries, while
supplying Extra Neutral Alcohol (ENA). There is divergence in interpretation by States too.
Accordingly, there is different tax treatment for ENA in different states. Units paying GST on ENA
have been served demand notices for non-payment of VAT, whereas units paying VAT have been
served notices for non-payment of GST. During enquiries, it has been observed by Directorate
General of GST Intelligence (DGGI) that different practices are being adopted in different States and
even within the State of Uttar Pradesh, various distilleries are following different practices, such as:
a. Some Distilleries are discharging GST on the supplies of ENA. Consequently, they are not
paying VAT or State Excise Duty on the supplies of ENA;
b. Some of the Distilleries are paying VAT or State Excise Duty on the supplies of ENA; and
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c. Some of the Distilleries are neither paying VAT nor State Excise Duty nor are they
discharging GST on the supplies of ENA.

7.1 It has also been observed that some distilleries are adopting a dual practice i.e. paying GST @
18% on ENA cleared to the manufacturers of 'liquor for human consumption', but not paying any GST
on similar products namely Grain Neutral Spirits (GNS) etc. when supplying to a bottling unit.
7.2 Further, various writ petitions have also been filed on this issue as well. Illustratively, Writ
Petition No. 1031 of was 2017 and Writ Petition No. 1031 of 2017 were filed in the High Court of
Judicature at Bombay Civil Appellate Jurisdiction on the issue of taxability of ENA.
8. In view of the different practices being followed and difficulty faced by the trade, it is
proposed that the GST Council take up the matter for discussion as it has wider revenue implications.
9. Accordingly, the GST Council may like to consider the issue of applicability of GST on rectified
spirit / Extra Neutral Alcohol (ENA) for manufacture of alcoholic liquor for human consumption and
make recommendations as it considers appropriate for early resolution of this issue.

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Annexure-I

1. Comments received from the State of West Bengal
The State is of the view that ENA is outside GST. Their views are based on the opinion of
Shri Mukul Rohtagi, Senior Counsel who had opined that ENA for potable alcohol is within the
purview of the States. Their views are based on the following
(a) Mr. Rohtagi had relied on the following three case laws:
(i) R.S. Rekhachand Mohta Spinning and Weaving Mills Private Limited vs. State of
Maharashtra (1997) where the Hon’ble Supreme Court held that any entry in the
Constitution should be taken in the widest possible construction.
(ii) Hoechst Pharmaceuticals Limited vs. State of Bihar (1983) judgment of the Hon’ble
Supreme Court which speaks of the exclusive nature of the taxation entries in Central List and
State List and the fact that there are no taxation entries in the Concurrent List, thereby
implying that there is no confusion in the matter of jurisdiction as far as levy of tax is
concerned.
(iii) Amrut Distilleries Limited vs. Nandagopalan and Others (2008) where the two judge
bench of the Hon’ble Supreme Court had directed that division bench of the High Court to
decide the matter in the light of Bihar Distilleries case. The case was regarding the whether a
distillery lies in the exclusive purview of the Centre or the States.
(b) The Industrial (Development and Regulation) Act, 1951 was amended in the light of the Bihar
Distilleries Judgement in 2016, and retained only Fermentation Industries (other than potable
alcohol) in the purview of the act. Therefore the Central government itself kept fermentation
industries producing potable alcohol (ENA/RS) under the jurisdiction of the state.
(c) Further, between the judgement of Constitutional bench in the Synthetics and Chemicals vs.
State of UP and present, the state has never levied any excise duty on ENA/RS, recognizing
that this falls in the jurisdiction of the state.

2. Comments received from the State of Rajasthan
The State is of the view that ENA is outside GST. Their views are as under:
(a) It is to be noted that taxation entry 8 of list II (state list) does not qualify “alcohol to be fit for
human consumption” but uses the phrase “for human consumption” and thus ENA would fall
under the State List and thus be outside the purview of GST.
(b) Where ENA is utilized for manufacture of potable alcohol, the entire credit gets blocked as
there is no GST on output. The tax so paid cannot be utilized for the payment of VAT on the
final product thereby creating huge cascading effect in the potable alcohol sector, whereas in
the earlier regime the credit of VAT paid was available.
(c) Further, it is to be noted that differential treatment on the basis of end-use will lead to
different rates on the same product. This in itself is a huge incentive for tax evasion as the
differences in the tax rates will be substantial. Further, monitoring and supervision of end use
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of the product will also be difficult. Therefore, it is advised that taxation on ENA should be
left entirely in the hands of State Govt. chargeable to VAT.
3. Comments received from the State of Uttar Pradesh
The State is of the view that as per the current law, ENA is not fit for human consumption in
its form and hence is chargeable at 18% rate in GST. However, it must be noted that ENA is primarily
used in order to produce liquor and this includes manufacture of country liquor. If ENA is kept at 18%
rate in GST, country liquor will become exceedingly expensive and this will lead to increase in
manufacture and sale of illegal country liquor which can lead to loss of human lives. Hence, it is
requested that ENA should be kept at 12% rate in GST.

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Agenda Item 14: GST Revenue Augmentation
1. Prior to introduction of GST, Government had appointed a committee to recommend possible
tax rates under GST that would be consistent with the existing level of revenue collection of Centre
and States, i.e. revenue neutral rate or RNR. The Committee headed by the then Chief Economic
Advisor, Dr. Arvind Subramanian, was of the view that the range of RNR should be between 15% and
15.5% (Centre and states combined). This was in the backdrop of a two-rate structure, a standard rate
close to RNR at which maximum tax base would be taxed; and a higher, demerit or sin rate. The RNR
recommendation was also based on the assumption that on introduction of GST, collection efficiency
would move up.
2. In the 3rd and 4th GST Council meeting, the broad principles on the basis of which GST Rates
were to be determined were finalised, the most important among those being that the GST rate should
be closest to present combined tax incidence (including cascading). In the 14th and 15th GST Council
meeting, goods and services were fit in one of the four GST slabs (5%, 12%, 18% and 28%) in
addition to the exempted category.
3. Since the introduction of GST, several rate revision and rationalization have been done.
Several other factors such as increase in the threshold limit for exemption and changes in composition
scheme have impacted GST revenue and there is a widening gap between the projected revenue
collection and the fund requirement which calls for measures for revenue augmentation. Broadening
of tax base, additional resource mobilization and improved tax compliance will help achieve the
desired outcome of revenue augmentation.
4. A Committee of Officers was constituted for the above purpose with terms of reference
including inter-alia, suggestions of measures for expansion of tax base. States were also requested to
provide specific suggestions on GST and compensation cess rates to be levied on various items,
review of current exemptions, rate calibration for addressing inverted duty structure, introduction of
compliance measures other than those already in existence and any other measures for revenue
augmentation.
5. The Committee of Officers so constituted had come out with recommendation suggesting
measures for augmenting revenue.
6. A detailed presentation containing recommendations of the revenue Augmentation Committee
was made before the GST Council Meeting in its 38th meeting held on 18th December, 2019. Council
deliberated on the issue at length. The issue of correction of inverted tax rate was also taken
separately in the 39th and the 40th meeting. Council recommended correction of inversion in mobile by
raising rates on mobile and specified parts to 18%. On other issues, like rate slabs, pruning of
exemptions, review of rates no view was taken and the agenda was deferred for future meetings.
Accordingly, it is a pending agenda for examination by the Council and making recommendation.
7. In this meeting it is only put up for information of the Council. A detailed agenda on the
matter shall be placed before the Council in its future meeting.

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Agenda Item 15: Decisions/recommendations of the 14th meeting of IT Grievance Redressal
Committee
The 14th meeting of the IT Grievance Redressal Committee (ITGRC) was held in online mode
over WebEx platform on 4th March, 2021 to resolve grievance of the taxpayers arising out of technical
problems faced by them on GSTN portal in relation to filing of TRAN-1, TRAN-2 and migration to
GST along with a case of non-technical nature.
2. The agenda for the 14th ITGRC meeting had a total of 66 cases pertaining to TRAN-1/Tran-
2/migration comprising 43 Nodal officer cases, 22 court cases (including one migration case of M/s
Guru Shoes Components) and 1 non-technical case of M/s Veliath Steel Agencies.
• Out of the total cases, the 64 cases of TRAN 1/ TRAN 2 had been categorized broadly
reason-wise in two major categories as ‘A’ and ‘B’. Category ‘A’ includes cases in
which the taxpayer could not apparently file TRAN 1/TRAN 2 because of technical
glitches and category ‘B’ includes cases where no technical issues were found from the
system logs in filing TRAN 1/TRAN 2 as per the analysis of GSTN.
• In the migration case of M/s Guru Shoes Components, the petitioner had obtained
provisional ID but the migration was not completed due to invalid PAN. The Hon’ble HC
vide order dated 03.06.2020 directed to allow migration and directed GSTN to permit
access to the GST Portal for uploading of returns.
• M/s Veliath Steel Agencies case is a case of transposition of column and is covered as
error apparent on face of record as per the decision of the 32nd GSTC meeting which
extended the scope of the ITGRC for non-technical issues.
3. Recommendations of the ITGRC
3.1 Summary of ITGRC decisions in court cases
The ITGRC recommended the 5 court cases of TRAN-1 falling under category A1 and 1 case
of TRAN-2 falling under category A1 The migration case of M/s Guru Shoes components (1) and
non-technical issue case of M/s Veliath Steel Industries (1) have also been recommended.
The ITGRC rejected the 14 cases of TRAN-1 falling under categories B1/B3, and 1 case of
TRAN-2 falling under the category B.
3.2 Summary of ITGRC Decision in Cases forwarded by the nodal officers
The committee decided that both the cases i.e., court cases as well as the nodal officer cases,
are at par as long as the parameters applied in the past in the ITGRC meetings are uniform i.e. the
assessee had attempted to file the TRAN-1 before the due date and there is a clear evidence of
technical glitch faced by the taxpayer post analysis by GSTN, merit acceptance. In this scenario, the
16 cases falling under category A1 out of 43 cases merit acceptance and remaining 27 cases falling
under category B1, B2, B3, B4, B8 are liable to be rejected as no technical glitch was noticed by the
GSTN in these cases post technical analysis.
3.3 The Committee approved on merit 24 cases (6 court cases (TRAN-1/2) and 1 migration case
and 1 non-technical case and 16 nodal officers cases) subject to placing before the GST council. The
ITGRC was of the view that they meet the requirements for considering the cases and fall in the four
walls, however, as the due date of 31.08.2020 is already over, the same be placed before the GST
council for their view and recommendations.
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The GSTN has provided the data regarding the date of receipt of said cases by GSTN /nodal
officers (Annexure-B). It is observed that the nodal officers have received the said 16 cases falling in
category A before 31.8.2020.
3.4 Issue regarding reopening of cases already decided by ITGRC
One State raised the issue that various taxpayers, whose TRAN-1 applications have been
rejected in previous ITGRC meetings based on technical analysis by the GSTN, are resubmitting their
TRAN-1 applications to field nodal officers with fresh set of evidences for technical glitches. The
ITGRC stated that the past cases once decided by the ITGRC and approved by the GST Council shall
not be reopened.

3.5 Issue regarding cases pending with nodal officers

GSTN requested that clarity is required whether the cases still pending with nodal officers are
to be taken up by GSTN for processing as the last date for submitting the declaration electronically
has lapsed on 31.08.2020. GSTN also requested to provide clarity whether the nodal officer should
stop accepting fresh application from taxpayer in TRAN-1 and TRAN-2 cases.
In this regard, the Committee stated that in regard to the cases pending with the nodal officers
as well as with GSTN received after the due date, the GSTN should compile how many of such cases
are there. GSTN has informed vide mail dated 19.5.2021 that 4 cases have been received by it from
nodal officers. (Annexure C) The date of receipt of these cases by the nodal officers is prior to
31.8.2020.

The Committee further seeks the final decision from GST Council about the further agenda of
the ITGRC and whether the cases received after/ before due date by nodal officers and which are still
lying with the Nodal Officers or with GSTN, should be considered at all or not by the ITGRC.

4. The recommendations of ITGRC as per attached Minutes of the 14th ITGRC Meeting
(Annexure A) are placed for information of the Council. The GST council may also give its decision/
directions regarding cases recommended by ITGRC in para 3.3 and in respect of the clarity sought by
ITGRC as mentioned in para 3.5 above.









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Annexure- A
Minutes of the 14th IT Grievance Redressal Committee (ITGRC) meeting dated 04/03/2021 held
in online mode over WebEx Platform
The 14th meeting of the IT Grievance Redressal Committee (ITGRC) was held in online mode
over WebEx platform on 4th March, 2021 at 11.30 am. The list of Committee officers who attended
the meeting is attached as Annexure-1.
2. Ms. Ashima Bansal, Joint Secretary, GST Council Secretariat, initiated the proceedings of the
meeting with the approval of the Chair. She welcomed the Chairman of the committee, members of
the committee and gave a briefing about the agenda of the 14th ITGRC meeting. She informed that
14th ITGRC meeting is being held with the approval of the competent authority in the wake of the
pending TRAN-1/TRAN-2 cases involving writ petitions before various High Courts. She further
informed that there are 22 court cases pertaining to TRAN-1, TRAN-2 and Migration which are
being presented in the 14th ITGRC for decision. Out of these 22 cases, 19 cases pertain to TRAN-1,
2 cases pertain to TRAN-2 and 1 case pertains to migration (enclosed as Annexure-2).
3. She also informed that besides these cases, there is one case pertaining to M/s Veliath Steel
Industries, Kerala subsequent to High Court of Kerala decision which is of non-technical nature and
would be presented before the ITGRC with the permission of the Chair as per extended scope of the
ITGRC approved during the 32nd GST Council meeting. (enclosed as Annexure-4).
4. Ms. Ashima Bansal then invited Sh. Dheeraj Rastogi, Executive Vice President, GSTN to
carry forward the proceedings and discuss the agenda of the meeting in detail.
5. Sh. Dheeraj Rastogi, Executive Vice President, GSTN made a power point presentation on
the background of the ITGRC meetings conducted so far and agenda of the present ITGRC in detail
which is summarized in below paragraphs and tables. Shri Dheeraj Rastogi presented a table listing all
the cases received by GSTN. They presented 65 cases, out of which 43 cases have been forwarded to
them by the nodal officers and 22 cases pertain to court matters.

Brief Background and Updates:
6. The cases of TRAN-1 / TRAN-2 / TRAN-3/migration cases have been received from the
Nodal officers of Centre and the States for consideration by the ITGRC. These cases excluding
the court cases were received in two phases i. e.
(A) Based on SOP issued by GSTN in pursuance of Circular No. 39/13/2018 dated 3rd April,
2018.: - A total of 2655 cases of TRAN-1, 213 cases of TRAN-2 and 18 cases of TRAN 3 were
received from the Nodal officers of Centre and the States until 31st March, 2019 for consideration by
ITGRC. These cases were received from the Nodal Officers either through the email or by post
though a few cases have been received in GSTN office even after due date i.e. 31st March, 2019.
Further, a few cases, which were received by GSTN Nodal officer containing all the relevant
information but were not in the format prescribed in SOP (issued by GSTN in April 2018) have also
been placed before ITGRC meetings.
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(B) Cases received in terms of Letter F. No. CBEC-20/10/16/2018-GST (Pt. I)/352 dated
04/02/2020 issued by Commissioner, GST and O. M. dated 06/02/2020 issued vide F. No.
71/Expansion-ITGRC/GSTC/2019 : - As per the directions contained in the letter issued by CBIC
and the O.M. issued by GSTC, jurisdictional Tax Administrators and Nodal Officers were requested
to forward representations of the taxpayers to GSTN where filing/revision of TRAN-1/TRAN-2 could
not be done by due date owing to technical glitches on common portal (excluding already approved /
not approved cases in ITGRC Meetings), after ascertaining the following:
i. Whether there appeared to be a demonstrable technical glitch due to which filing could
not be completed on the common portal.
ii. the evidences which may identify the bona fide attempts on the part of the taxpayer for
attempting to file TRAN 1 on or before 27.12.2017.
The jurisdictional Nodal officers nominated by Central and States Tax authorities were also
required to compile and collate the applications of the taxpayers along with evidences and send the
same to GSTN Nodal officer in prescribed template (Excel) at email ID-
tran.extscope@gstn.org.innot later than 15th February 2020. However, due to continuing delayed
submission by the Nodal officers as well as extension in terms of CBIC vide Notification No.
35/2020–CT dated 03.04.2020 read with Notification No.55/2020-CT dated 27-06-2020, the cases are
still being received. As per the instructions, the representations of taxpayers, forwarded by the
jurisdictional Nodal Officers, are processed by GSTN for consideration and decision by ITGRC.

Cases forwarded by Nodal Officers
7. A total of 741 cases were received from jurisdictional Nodal officers in terms of clause (B)
above until 13th January, 2021 for consideration by the ITGRC. A summary view of these cases,
excluding court cases, is given below:

Sh. Dheeraj Rastogi further informed that 290 cases were returned to jurisdictional Nodal officers due
to following reasons:
a) Some cases were already received and presented before the previous ITGRCs or
Sr. No. Status
Cases forwarded
by Nodal Officers
i. Cases decided by 11th and 12th ITGRC 361
ii. Cases under consideration of 13th ITGRC (Minutes awaited) 47
iii. Cases being presented before 14th ITGRC 43
iv. Cases Returned to Nodal Officers due to non-compliance with SOP. 290
v. Total Cases (i to iv) 741
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b) Information was not received as per the SOP and the same were returned back or
c) Incomplete details furnished by the Nodal Officer.
Presently, 43 cases (attached as Annexure-3) of TRAN-1/TRAN-2, processed by GSTN are
being presented before the ITGRC for consideration and decision. However, GSTN would like to
have a decision on this issue as upto which date the cases have to be processed for consideration by
ITGRC.

Court Cases Received through GSTN Nodal Officers and other Sources:
8. A total of 482 writ petitions have been received by GSTN pertaining to TRAN-1/TRAN-
2/Migration as on 13.01.2021. These include the court cases received by GSTN Nodal officer at email
ID (tran.extscope@gstn.org.in) as well as cases received through other sources. The details of cases
received are as below.
a) 403 Court cases were processed till 12 ITGRC meetings.
b) 57 Court cases were processed in 13th ITGRC meeting (Minutes awaited).
c) 22 Court cases of TRAN-1/TRAN-2/Migration have been processed at GSTN level and are
being presented before 14th ITGRC for decision.

As detailed below, thirteen meetings of ITGRC have been held so far. A total of 3620 TRAN-
1/TRAN-2/TRAN-3 cases (including court cases) were presented before ITGRC in these meetings.
Out of these, a total of 1260 cases have been approved for filing TRAN-1/TRAN-2 while 104 cases
were placed for decision of 13th ITGRC (Minutes awaited). The decisions of ITGRC regarding
approval/non-approval of these cases has also been communicated to the jurisdictional Nodal officers
for onward transmission to the taxpayers.
The detail of TRAN-1, TRAN-2 & TRAN 3 cases (including court cases) approved/not
approved/withdrawn up to 13th ITGRC, are given below:
ITGRC
Meetings
Meeting Date Approved Not Approved
Withdrawn by
GSTN
Grand Total
1st 22.06.2018 122 48 170
2nd 21.08.2018 213 127 340
3rd 26.10.2018 70 198 268
4th 12.02.2019 165 296 461
5th 05.03.2019 80 144 224
6th 26.05.2019 172 510 682
7th 11.06.2019 98 151 249
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Sh. Dheeraj Rastogi further informed that the approved TRAN-1/TRAN-2 cases have been
enabled for filing at GST Portal. The taxpayers who have been enabled for filing TRAN-1/TRAN-2
have been informed through e-mails for filing their TRAN-1 and/or TRAN-2 with in-depth procedure
of filing. Further, reminders have also been given to those taxpayers who had either not attempted to
file TRAN-1/TRAN-2. The taxpayers who failed to file their TRAN-1/TRAN-2 even after reminders,
have been contacted telephonically by the Officers of GSTN and guided appropriately for filing of the
same.
Proposal by GSTN for 14th ITGRC Meeting
9. Proposal of GSTN for 14th ITGRC meeting:
(1) As explained above, a total of 43 cases (enclosed as Annexure-3) received from Nodal
officers along with 22 court cases after technical examination by GSTN have been presented
before 14th ITGRC for decision.
(2) Presently, total of 22 court cases pertaining to TRAN-1, TRAN-2 and Migration are being
presented in this ITGRC. Out of these 22 cases, 19 cases pertaining to TRAN-1, 2 cases
pertaining to TRAN-2 and 1 case pertaining to migration (enclosed as Annexure 2) are
being presented before 14th ITGRC for decision.
(3) Considering the fact that the taxpayer has made an effort to file a Writ Petition alleging
technical glitches, for further examination an email dated 14.09.2020, an email dated
22.10.2020 , email dated 28.12.2020 and an email dated 07.01.2020 was sent by GSTN to the
taxpayers in cases falling under category “B” for further examination requesting for the
following details:
i. GSTIN
ii. Exact technical glitch faced by you while filing TRAN-1
iii. Nature of error noticed
8th 13.08.2019 137 352 2 491
9th 02.12.2019 72 194 13 279
10th 22.01.2020 11 52 63
11th 18.03.2020 82 193 275
12th 26.05.2020 38 80 118
Total 1260 2345 15 3620
13th 01.09.2020
Minutes
Awaited
Minutes
Awaited
- 104
Grand
Total
3724
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iv. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The taxpayers were requested to share the above-mentioned details to substantiate their
claims by end of day 16.09.2020, 24.10.2020, 30.12.2020 and 09.01.2021 respectively. Replies were
received in 11 cases (Sl. Nos. 6, 8, 9, 12, 13, 14, 15, 16, 17, 19 for TRAN-1 cases and case at Sl. No.
2 for TRAN-2 cases). The taxpayers did not share any screen shots evidencing any technical glitches
of the GST Portal. The specific details of each case have been provided in detail in Annexure-2.
10. Category-wise analysis of 64 TRAN-1 and TRAN-2 cases received from Nodal officers and
court cases and 1 migration case totalling to 65 are given below:

i) The cases where the taxpayers could not file TRAN 1/TRAN-2 because of technical
issues:

A1. Processed with error- In this category, the taxpayer have received error message as
“Processed with Error”. The taxpayer could not claim transitional credit as the line items
requiring declarations of earlier existing law registration were processed with error since the
taxpayer had not added them in his registration details. A total of 16 cases received from
Nodal officers and 05 cases received as court cases are falling in this category.

A5. TRAN-1 filed and error in TRAN-2: - As per Logs TRAN-1 filed successfully.
Error recorded in database while attempting to file TRAN-2. A total of 01 case received as
court case is falling in this category.

Accordingly, 22 cases of TRAN-1/TRAN-2 Type ‘A1’ & ‘A5’ were presented before 14th
ITGRC for consideration.

ii) Categories in which no evidence of technical glitches have been found after analysis of
System logs: (Total 43 cases)
B1. Cases in which, there are no evidences of error on submission/filing of TRAN1,
as per GST System log- As per GST System log, there are no evidences of error or
submission/filing of TRAN-1. A total of 13 cases received from Nodal officers and 13 cases
received as court cases are falling in this category.

B2. Cases in which filing of TRAN-1 Fresh/Revision Attempted with No error/ No
valid error reported. - As per GST System logs, the taxpayers have claimed that they tried
to save/submit for the first time or for revision of TRAN-1 but analysis of logs show that
there is no system error. A total of 03 cases received from Nodal officers are falling in this
category.

B3. Cases in which TRAN-1 have been filed successfully as per logs with no valid
error reported- The taxpayer has successfully filed TRAN-1 and no technical errors have
been found in the examined technical logs. A total of 04 cases received from Nodal officers
and 01 cases received as court cases are falling in this category.
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B4. TRAN-1 filed once but credit not received. - Cases where the taxpayer has filed
TRAN-1 once and claims that no credit has been posted. No technical issues have been
observed in the logs. A total of 04 cases received from Nodal officers falling in this
category.

B8. TRAN-1 filed and TRAN-2 not attempted and no error in logs. -As per Logs
TRAN-1 filed successfully. User neither submitted nor filed TRAN-2 and there are no logs of
save as well. A total of 03 case received from Nodal officers and 01 cases received as court
case are falling in this category.


Category-wise Summary of Cases sent by Nodal Officers of Centre/States

Category
No.
Category
Count of
Taxpayers
A1 Processed with error. 16
B1
As per GST system log, there are no evidences of error on submission/filing of
TRAN-1.
13
B2 TRAN-1 Fresh/Revision Attempted with No error/ No valid error reported. 03
B3 TRAN-1 Successfully filed as Per Logs with No Valid Error reported. 04
B4 TRAN-1 filed once but credit not received. 04
B8 TRAN-1 filed and TRAN-2 not attempted and no error in logs. 03
Grand Total 43

Case wise Discussion by ITGRC in matters of Writ Petition:
The Agenda contained Category-wise count of Orders passed in court cases and their current
status vis-à-vis the pendency status of the Writ before Hon’ble Court.
Sr.No Court Order/WPs
Category A
(TRAN-1 &
TRAN-2)
Category B
(TRAN-1&
TRAN-2)
Migration Total
1
Direction to allow filing of
TRAN-1/TRAN-2
manually/electronically
0 1 0 1
2 No specific order passed 4 9 0 13
3
Direction to Respondents/Nodal
Officer to pass appropriate
orders
2 5 1 8
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Total 6 15 1 22

11. Category A1: Cases where the taxpayer received the error ‘Processed with error.' As
per GST system logs the taxpayer has attempted to submit first time/fresh or revise TRAN-1
but could not file because of errors.

11.1 W.P. No. 13864/2020 M/s Cotton Impex v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
06AAGHM4778M1ZK Haryana Proprietorship

(i) Sh. Dheeraj Rastogi informed that the Petitioner claims that he is entitled to claim of Rs.
13, 97,013/-on account of excess VAT credit. However, due to technical glitch on the portal, he was
not able to claim the same.
(ii) He further informed that GSTN is party in this matter. GSTN vide email dated 08.09.2020
apprised the status of case to the Central Government Standing Counsel and the CGST
Commissionerate (Rohtak) in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018. The matter
is pending before Hon’ble High court of Punjab & Haryana and the next date of hearing has not been
updated on the website. No effective order is available on the Court’s website.
(iii) He stated that on completion of technical analysis conducted by GSTN, it was observed that
the Taxpayer had opened form GST TRAN-1 and attempted to save the data. However, the same
was not processed due to a submission error reported due to validation for Registration no.
065442914799 which was invalid. The Registration number was later added in the Petitioner’s
profile post 27.12.2017. Thus, he submitted that the petitioner’s case may be considered as having
faced Technical difficulties.
Discussion-
(i) Sh. Anil Kumar Jha, Special Secretary, Revenue raised a query that that when the
registration number was added to the taxpayer’s profile after the due date of filing the TRAN-1, then
how GSTN can consider such a case as a technical glitch within the due date. The EVP, GSTN
clarified that in such cases, attempts were made by the taxpayer to file the Tran-1 within the due date
and they could not complete the action due to non-updating of profile. Also, that the taxpayer was
not prompted by the system to first update the profile and then attempt to file the TRAN-1 thereafter.
The Chairman of the ITGRC, Sh. Vivek Johri, Member, CBIC then asked GSTN to inform that
whether such cases have been taken up by the GSTN earlier and considered by the ITGRC. Sh.
Manish Kumar Sinha, CEO, GSTN informed that such cases have been approved by the previous
ITGRCs. Shri Khalid Anwar, Commissioner of Commercial Taxes, West Bengal, also supported that
the Portal did not prompt the reason why there was an error in filing the Tran-1 and hence profile
could not have been rectified by the taxpayer and he stated that as such cases have been considered
positively in the previous ITGRC meetings, such cases should be treated on par now also. Ms.
Ashima Bansal, Joint secretary, GSTC Secretariat stated that in this case, the assessee attempted to
file the TRAN-1 in contrast to B category cases in which the assessee made no attempt to submit or
to file TRAN-1/2 and the attempt to save and submit TRAN-1 was faced with submission error due
to a technical issue of non-updation of registration profile. The Chairman proposed that in the
interest of being consistent with what ITGRC have done in the past and considering that the system
was not indicating the nature and cause of error while filing the TRAN-1, the ITGRC may consider it
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as a technical glitch and recommend the matter to the GST council to which the Committee
concurred.
(ii) Shri Anil Jha raised a query that whether the cases which were merely pending before the
court with no final decision can be taken up by the ITGRC. Shri Manish Kumar Sinha informed that
as a matter of practice such cases where decision of the court is pending, have been taken up and
recommended in ITGRC. EVP, GSTN clarified that such distinction prior to Aug 2020 was
irrelevant as the ITGRC was considering even the cases forwarded by Nodal officers. Hence, both
the types of cases were put on par and whenever technical glitch was found, the ITGRC allowed
those cases. Post discussion, the view was formed that once it is established that the assessee had
attempted to file the TRAN-1/Tran-2 within due date and technical glitch has been confirmed during
analysis by GSTN, the cases can be taken up. The Committee concurred with the view.

Decision
In view of the detailed discussion, as above, it was decided that the committee may consider
it as a technical glitch and recommend such cases to the GST Council.
11.2 W.P. No. 15168/2020 M/s Medreich Limited v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
36AABCM1458Q1Z1 Telangana Public Limited Company

(i) Sh. Dheeraj Rastogi informed that this case is similar in nature to the case of M/s Cotton Impex
V. Union of India and ors. in W.P. No. 13864/2020 just discussed. He stated that petitioner had
submitted TRAN-1 and ARN was also generated. However, the same was reflecting as filed on the
GST portal. The Petitioner then attempted to file revised TRAN-1 but credit was not getting
reflected on the Portal.
(ii) He further stated that GSTN is not a party in this matter. GSTN vide letter dated 04.11.2020 has
apprised the status of case to the Principal Chief Commissioner CGST (Hyderabad Zone) in terms of
CBIC’s Circular no. 39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High
Court of Telangana and the next date of hearing is not updated on the Court’s website. No effective
order is available on the Court’s website.
(iii) It was further informed by him that on completion of technical analysis conducted by GSTN, it
was observed that the Taxpayer had filed TRAN-1. However, the same was not processed due to a
submission error reported for validation for Registration Nos. AABCM1458QEM009 and
AABCM1458QEM011 which were invalid. The Registration number AABCM1458QEM009 was
added in the Petitioner’s profile before filing of TRAN-1. However, Registration No.
AABCM1458QEM011 has not been added to the Petitioner’s profile till date. The Petitioner’s ITC
Ledger has been updated and ARN has also been generated for the respective attempts. The
Petitioner has not attempted any revision. Thus, the Petitioner’s case may be considered as having
faced Technical difficulties.
Discussion-
The Committee noticed that this matter was similar in nature to case of M/s Cotton Impex V.
Union of India and ors. in W.P. No. 13864/2020 discussed before.
Decision-
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It was decided that in the interest of being consistent with the practice by the ITGRC in the
past and considering that the system was not prompting the exact nature of technical issue to the
taxpayer while filing the TRAN-1 and taxpayer had actually attempted to file the TRAN-1 before the
due date, the committee considered it as a technical glitch and recommend the case to the GST
Council.

11.3 W.A. No. 788/2020- The Commissioner of GST & CE v. Checkpoint Apparel Labelling
Solution Pvt. Ltd.
GSTIN/ Provisional ID State Constitution of Business
33AAGCS9485A1ZA Tamil Nadu Private Limited Company

(i) Sh. Dheeraj Rastogi informed that the Petitioner has stated that they had uploaded TRAN-1 on
13.09.2017 and received an email stating that the Petitioner had successfully filed TRAN-1 with time
stamp 13/09/2017, 19.07 and received ARN AA370913729P. However, the GST Portal showed the
same as “Processed with Error” and the Electronic Credit Ledger was not reflecting the CENVAT
Credit.
(ii) He further informed that GSTN is a party in this matter. GSTN vide email dated 29.10.2020 has
apprised the status of the case to the CGST Commissionerate (Chennai North) in terms of CBIC’s
Circular No. 39/13/2018 dated 03.04.2018. The appeal has been disposed by the Hon’ble Madras
High Court. The Court vide judgment dated 23.09.2020 which upheld the impugned order dated
14.02.2020 in W.P. No. 3328/2020 directing the Respondents to do the needful to enable the
Petitioner to upload the requisite form TRAN-1 in order to avail unutilised credit.
(iii) The Petitioner in this case vide their Letter dated 14.11.2019 addressed to the Commissioner,
Chennai North (Principal Nodal Officer for IT Grievances, Chennai Zone), under endorsement to
Commissioner of GST & CE, Chennai Outer, had stated that they had faced technical glitches in the
GST Common portal while filing Form GST Tran-1 before the due date i.e. 27.12.2017, however they
do not have any proof/screenshot having faced technical glitch. The representation regarding TRAN-1
credit was rejected by Chennai Outer Commissionerate, vide Letter C.No: IV/16/88/2019-
GSTST-TRAN1 dated 01.01.2020 as it was not conforming to Board’s Circular No: 39/13/2018
dated 03.04.2018 i.e. there was no technical glitch and was not forwarded to GSTN. The same was
informed to taxpayer by Chennai Outer Commissionerate vide letter C.No.IV/16/88/2019-GSTSK-
TRAN-1 dated 01.01.2020. Against this, the Taxpayer preferred a Writ Petition No: 3328 of 2020 in
the Hon’ble Madras High Court and the Hon’ble Madras High Court vide Order dated 14.02.2020 in
WP No:3328 of 2020 has directed the respondents to do the needful forthwith to enable the petitioner
to upload the requisite forms (TRAN-1/2). However, since the nodal Officer (Chennai Outer
Commissionerate) had found that there was no proof for the claims made by the taxpayer for any
technical glitches, rejected the request. The department therefore filed Writ Appeal the Division bench
of High Court of Madras against the High Order dated 14.02.2020 in WA No. 788/ 2020.
(iv) The Commissionerate approached GSTN vide email dated 15.10.2020 with a request to examine
whether the Petitioner had made any attempt to file Form GST TRAN-1 in the portal on or before
27.12.2017 and had actually faced any technical glitches as claimed by them. Technical Analysis in
this matter was therefore conducted by GSTN upon receipt of the abovementioned email from
Commissionerate.
(v) GSTN has informed that on completion of technical analysis conducted by GSTN, it was
observed that the Petitioner had opened form GST TRAN-1 and attempted to file the data on 26th Oct
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2017 at 12:34 PM and subsequently on 26th Dec 2017. Subsequently, the Petitioner attempted to file
revision which was successfully filed but a submission error was reported for Registration no.
AAFCG5452JEM001. The Registration No. AAFCG5452JEM001 has been added to the Petitioner’s
profile post 27.12.2017. The Petitioner’s ITC Ledger has not been updated, but ARN has been
generated for the respective attempts. Thus, the Petitioner’s case may be considered as having faced
Technical difficulties.
Discussion and Decision:
Post discussion, the ITGRC approved the proposal of the GSTN being similar to the earlier 2
cases as per technical analysis report and recommended the case for approval by the GST Council.

11.4 WPT 6316/2020-M/s GSR Eco Bricks Private Limited v. Union of India

GSTIN/ Provisional ID State Constitution of Business
37AAFCG5452J1ZD Andhra Pradesh Private Limited Company

(i) Issue: The Petitioner has stated that they had uploaded TRAN-1 on 13.09.2017 and received an
email stating that the Petitioner had successfully filed TRAN-1 with time stamp 13/09/2017, 19.07
and received ARN AA370913729P. However, the GST Portal showed the same as “Processed with
Error” and the Electronic Credit Ledger was not reflecting the CENVAT Credit.
(ii) Status: GSTN is a party in this matter. GSTN vide email dated 19.11.2020 has apprised the status
of the case to the CGST Commissionerate (Guntur) in terms of CBIC’s Circular No. 39/13/2018 dated
03.04.2018. The matter is pending before the Hon’ble High Court of Andhra Pradesh and the next
date of hearing is not updated on the Court’s website. No effective order is available on the Court’s
website.
(iii) On completion of technical analysis conducted by GSTN, it was observed that the Petitioner had
opened form GST TRAN-1 and attempted to file the data. However, the same was not processed due
as it got stuck on “FRZ”. Subsequently, the Petitioner attempted to file revision which was
successfully filed but a submission error was reported for Registration no. AAFCG5452JEM001.
The Registration No. AAFCG5452JEM001 has been added to the Petitioner’s profile post
27.12.2017. The Petitioner’s ITC Ledger has not been updated, but ARN has been generated for the
respective attempts. Thus, the Petitioner’s case may be considered as having faced Technical
difficulties.
Discussion and Decision:
The ITGRC approved the proposal of the GSTN in view of the technical analysis report and
recommended the case for approval by the GST Council.

11.5 WP No. 8583/2020 Genext International v. UOI and Ors.
GSTIN/ Provisional ID State Constitution of Business
07AAPFG1341R1ZW Delhi Partnership

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(i) Sh. Dheeraj Rastogi informed that the Petitioner has claimed that they had filed their Form TRAN-1
for claiming VAT credit of Rs. 4,17,042 and CENVAT credit of Rs. 14,50,716 (total credit of Rs.
18,67,758). However, it was later noticed that the Petitioner's Electronic Cash Ledger was only reflecting
VAT credits i.e. 4,17,042 and did not show credits amounting to CENVAT Credit worth Rs. 14,50,716.
(ii) He further informed that the GSTN is not a party in this matter. GSTN vide letter dated 04.12.2020
apprised the status of case to the GST Policy Wing in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The Hon’ble High Court of Delhi has reserved judgment in this case on 21.12.2020. The
judgment is not available on the Court’s website.
(iii) He further stated that on completion of technical analysis conducted by GSTN, it was observed that
the Taxpayer had opened form GST TRAN-1 and attempted to file the data. However, the same was not
processed due to a submission error reported for validation for Registration no. AAPFG1341REM001
which was invalid. The Registration number has still not been added in the Petitioner’s profile. The
Petitioner’s ITC Ledger has been updated and ARN has also been generated for the respective attempts.
The Petitioner has not attempted any revision. Thus, the Petitioner’s case may be considered as having
faced Technical difficulties.
Discussion and Decision:
The ITGRC approved the proposal of the GSTN as per technical analysis being similar to other 4
cases and recommended the case for approval by the GST Council.
12. Category-B1:-As per GST system log, there are no evidences of error or
submission/filing of
TRAN-1:
Sh. Dheeraj Rastogi presented the 14 cases of TRAN-1 under category- B1/B3.
12.1 CWP-6585/2020-Bhatia Tyre Works. v. UOI &Ors.

GSTIN/ Provisional ID State Constitution of Business
08ARTPB2446F1ZS Rajasthan Proprietorship

Issue: The Petitioner could not file TRAN-1 within the prescribed time due to constant technical
difficulties faced by the Petitioner on GST portal. Resultantly Petitioner was also unable to file
TRAN-2
Status: GSTN is a party in this matter. GSTN vide letter dated 07.09.2020 shared comments with the
CGST Commissionerate (Jaipur) apprising the status of case to the in terms of CBIC’s Circular no.
39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Rajasthan at
Jaipur and the next date of hearing is 16.04.2021. No effective order is available on the Court’s
website.
Further investigation by GSTN: An email dated 14.09.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1.
ii. Nature of error noticed.
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.

The Petitioner was requested to provide the details by 16.09.2020. The Petitioner replied
vide email dated 16.09.2020 explaining that when they attempted to upload TRAN-1 and TRAN-2
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the portal showed them an error of under process. The Petitioner shared details of ticket number
20200316903171 and copy of letter dated 16.09.2019 addressed to the Assistant Commercial Taxes
Officer, Circle-A, Commercial Taxes Department, Sri Ganganagar.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
12.2 W.P. No 3988/2020 M/s. Kalpatru Enterprises through its Proprietor Neeraj Jain v. UOI
&Ors.
GSTIN/ Provisional ID State Constitution of Business
07ACRPJ4269P1ZP Delhi Proprietorship

Issue: The Petitioner attempted to file TRAN-1 on the GST portal on 21.12.2017, 23.12.2017,
24.12.2017, 26.12.2017 and 27.12.2017 but could not file the same because of technical glitches on
the GST Portal which the Petitioner could not understand.
Status: GSTN is a party in this matter. GSTN vide email dated 17.09.2020 apprised the status of case
to the CGST Commissionerate (Delhi-North) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. Judgment has been reserved in this matter on 21.12.2021. The copy of the judgment is
not available on the website.
Further investigation by GSTN: An email dated 14.09.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1.
ii. Nature of error noticed.
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 16.09.2020. However, no reply was
received from the Petitioner.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
12.3 WP No. 14791/2020 M/s Shah Electronics & Home Appliances Pvt. Ltd. v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
36AAECS5488F1Z1 Telangana Private Limited Company

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Issue: The Petitioner was not able to file FORM GST TRAN-01 by 27.12.2017 due to technical
glitches and thereafter portal was closed. As a result, the subsequent filing of FORM GST TRAN-2
also could not be filed by the Petitioner.
Status: GSTN is party in this matter. GSTN vide letter dated 17.09.2020 apprised the status of case to
the Commissioner of Central Tax (Medchal) and the Assistant Commissioner of Central Tax and GST
(Ramgopalpet III Range, Secunderabad Division) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter is pending before Hon’ble High court of Telangana and the next date of
hearing is not available on the website. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. The Petitioner responded
vide email dated 23.10.2020. The Petitioner did not provide any screen-shot evidencing technical
glitches of the GST Portal. Further, the exact issue faced by the Petitioner was also not provided.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. There are no logs for “save”. ITC ledger has
also not been updated. Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
12.4 Writ Tax No. 418/2019 M/s Bhagwan Motors v. UOI & Ors.

GSTIN/ Provisional ID State Constitution of Business
09AAHFB9939J1ZT Uttar Pradesh Partnership

Issue: The Petitioner made several attempts to file TRAN-1 on the GST Portal till 27.12.2017
however, could not do so because of apparent technical fault in the GST system.
Status: GSTN is a party in this matter. GSTN vide email dated 18.09.2020 shared comments with the
CGST Commissionerate (Meerut) apprising the status of case to the in terms of CBIC’s Circular no.
39/13/2018 dated 03.04.2018. The Hon’ble High Court of Allahabad vide order dated 04.04.2019 has
disposed off the matter with direction to the Assistant Commissioner/Commissioner GST to consider
the Petitioner's application and pass appropriate order in accordance with law.
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1.
ii. Nature of error noticed.
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. The Petitioner replied
vide email dated 24.10.2020 explaining that they could not log in the portal despite trying several
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times during the period 20th December, 2017 and 27th December, 2017. The Petitioner shared a
screenshot of his GST Portal Dashboard taken on 12.02.2020 which showed the message "The filing
of declaration in TRAN-1 is not available now as the due date is over”. This is a valid system
message as the due date for filing TRAN-1 is now over. The Petitioner also shared a letter explaining
their grievance addressed to the Assistant Commissioner, Goods and Service Tax, Range Saraswa.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. There are no logs for “save”. ITC ledger has
also not been updated. Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.

Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
12.5 WP (C) No. 17174/2020-M/s ValethHightech Composites (P) Ltd. v. STO &Ors
GSTIN/ Provisional ID State Constitution of Business
32AAACV1999E1ZC Kerala Private Limited Company

Issue: The Petitioner was not able to upload Form TRAN-1 on account of various computer glitches
with respect to the website of the department before 27.12.2017.
Status: GSTN is a party in this matter. GSTN vide email dated 23.09.2020 apprised the status of case
to the CGST Commissionerate (Kochi) in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018.
The matter is pending before the Hon’ble High Court of Kerala and the next date of hearing is not
updated on the Court’s website. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1.
ii. Nature of error noticed.
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. However, no reply was
received from the Petitioner.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1.There are no logs for “save”. ITC ledger has
also not been updated. Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.6 W.P. No. 3427/2020- M/s Jain Medical (Prop.) Manoj Kumar Mehta v. UOI &Ors.
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GSTIN/ Provisional ID State Constitution of Business
08ABMPM0042K1ZM Rajasthan Proprietorship

Issue: The Petitioner faced technical glitch while filing TRAN-1.
Status: GSTN is a party in this matter. Writ Petition in this matter has not been received by GSTN
only GSTIN was received from GST Council Secretariat vide letter in F.No.505/SB Civil Writ No.
3427/20/Jain Medical/GSTC/2020/3593 dated 13.08.2020 wherein GSTN was requested to verify
Petitioner’s claim of technical glitch while filing TRAN-1. GSTN vide letter dated 23.09.2020 has
requested for a copy of the Writ Petition from the Commissioner of Central Taxes (Jaipur) and the
Principal Commissioner, CGST (Jaipur). The matter has been disposed off by the Jodhpur Bench of
the Hon’ble Rajasthan High judgment dated 19.03.2020 with the following directions:-
"1. The respondents shall permit the petitioner to submit online GST TRAN-1 form, subject to
furnishing a proof that he had tried to upload GST TRAN-1 form prior to 27.12.2017 and such
attempt failed due to technical fault/glitch on the common portal. Needless to mention that petitioner
will be required to submit a certificate/recommendation issued by GST Council in this regard.
2. In case all the three requirements enumerated in para no.12 of the judgment of Jodhpur
Truck Pvt. Ltd. (supra) are met/satisfied, the petitioner’s online GST TRAN-1 form shall be accepted,
of course, if it is filed by 31.03.2020 or extended period (if any).
3. For the purpose aforesaid, the petitioner may submit an application before the GST Council
to issue the requisite certificate/recommendation, along with requisite particulars, evidence and a
certified copy of the order instant, within a period of 15 days from today. If the petitioner’s assertion
is found correct, the GST Council shall issue the recommendation/certificate to the petitioner within a
period of three weeks from placement of such application and certified copy of this order.
4. In case the GST Council is of the view that petitioner is not entitled for certificate/
recommendation, they shall pass an order giving brief reasons and communicate the same to the
petitioner assessee.
5. Needless to observe that the petitioner shall be free to take appropriate remedy against such
order."
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. However, no reply was
received from the Petitioner.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1.There are no logs for “save”. ITC ledger has
also not been updated .Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
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12.7 8240/2020-Macro Furnaces Private Limited, Faridabad v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
06AAACM5608H1ZO Haryana Private Limited Company

Issue: The Petitioner has claimed that they could not file form GST TRAN-1 either due to some
technical glitches on the GST Portal or lack of knowledge on the part of the Petitioner or pendency of
VAT Assessment upto 2017-18, only after completion of which the dealer could assess its Input Tax
Credit available to be carried forward.
Status: GSTN is party in this matter. GSTN vide email dated 06.10.2020 apprised the status of case
to the CGST Commissionerate (Faridabad) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter is pending before Hon’ble High court of Punjab &Haryana and the next date
of hearing is not updated on the Court’s Website. No effective order is available on the Court’s
website.
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide
email dated 30.12.2020 sharing a letter addressed to the proper officer explaining that notice of
motion has been issued by the Hon’ble High Court in the present case. The Petitioner also shared
their GST Registration certificate. However, no screenshots were shared.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.8 W.P. No. 12184/2020 M/s Guru Kripa Lubricant v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
23AEIPJ9886M1ZP Madhya Pradesh Proprietorship

Issue: The Petitioner could not file GST TRAN-1 on the common portal as they were facing technical
difficulties on the GST Portal. The GST Council vide letter no. F.No.556/W.P. No. 12184 of 2020
/Guru Kripa/GSTC/2020/3802-3805 dated 11.09.2020 has requested that the Petitioner’s claim be
verified.
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Status: GSTN is a party in this matter. GSTN vide letter dated 15.10.2020 shared comments with the
CGST Commissionerate (Bhopal) apprising the status of the case in terms of CBIC’s Circular no.
39/13/2018 dated 03.04.2018. The Gwalior Bench of the Hon’ble High Court of Madhya Pradesh
disposed the Petitioner’s case vide order dated 27.08.2020 with directions to the Jurisdictional
Commissionerate to pass a reasoned and speaking order within a period of four weeks.
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide
email dated 29.12.2020 explaining despite numerous attempts the said TRAN-1 Form could not be
uploaded on the common portal. The Petitioner shared a copy of the representations explaining the
technical problems to the concerned authorities, a copy of the TRAN-1 for manual filing and a copy
of the ticket number generated (G-20200303773449) on the portal. Ticket no. G-20200303773449
raised by the Petitioner on 03.03.2020 and the Petitioner had raised the following issue
"Dear sir subject: - Regarding Tran-1 form when I trying to file my tran-1 form so I got this message
that tran1 is not available as the due is over. I also complained for this query in my jurisdiction so I
requested to you that please active my Tran-1 form in my GST profile and I also attached my
complained copy which done my me to my jurisdiction thank you".
The abovementioned ticket was closed on 13.03.2020 due to no response received on
“Awaiting Customer Input”, the following message was sent to the Petitioner
"This is in reference to your query; we would like to inform you that we are unable to process your
request further due to unavailability of adequate information. We have not received the requisite
information even after three reminders. Therefore, we are closing this docket from our end."
It may be noted that GST Portal allowed filing of TRAN-1 till the due date i.e. 27.12.2017.
The petitioner has not shared any screenshots and has relied on the judgements of the
Hon'ble Delhi High Court in A.B Pal Electrical Private Ltd. v. Union of India &Ors wherein it is
observed by the Court that "It is not fair to expect that each person who may not have been able to
upload the Form GST TRAN-1 should have preserved some evidence of it - such as, by taking a
screen shot...". The Petitioner has also placed reliance on the judgment of the Hon'ble High Court of
Madras in the case of “Tara Exports v. Union of India &Ors. (WP (MD) No. 18532/2018) for the
same.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.9 WPT 70/2019-M/s Dhamtari Krishi Kendra v. UOI &Ors
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GSTIN/ Provisional ID State Constitution of Business
22ACMPR1282P1Z3 Chhattisgarh Proprietorship

Issue: The Petitioner tried to submit form GST TRAN-1 on the common Portal, however, because of
the technical glitch faced by the Petitioner it could not be submitted. The Petitioner immediately
reported this matter to the authorities in the Department on 26.12.2017.
Status: GSTN is not a party in this matter. GSTN vide email dated 22.10.2020 apprised the status of
case to the GST Council Secretariat in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018.
The matter has been disposed off vide order dated 17.07.2020.The Court vide order dated 17.07.2020
has directed that “it is expected that the Commissioner, Commercial Tax shall take a decision at the
earliest preferably within an outer limit of 60 days from the date of receipt of copy of this order. In the
event , if the Commissioner, Commercial Tax makes a reference to the GSTC, it is expected that the
Council also, in turn, takes an early decision on the reference made by the Commissioner preferably
within a period of 90 days from the date of receipt of reference by the Commissioner.”
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide
email dated 29.12.2020 explaining that when their tax consultant tried to login to the common portal
but was not able to login and the site was busy. The Petitioner has not shared any screenshots and has
stated that due to lack of knowledge, we did not capture any screenshot of the glitch faced and also
did not raise any grievance with GSTN or helpdesk.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.10 Writ Tax No. 420/2020 Kamal Agencies v. UOI &Ors

GSTIN/ Provisional ID State Constitution of Business
09AMEPK9117A1ZA Uttar Pradesh Proprietorship

Issue: The Hon’ble Allahabad High Court vide order dated 01.09.2020 has directed the Additional
Commissioner, CGST and Nodal Officer ITGRC to look into the grievance raised by the Petitioner.
Status: The Copy of the Writ Petition is not available. GSTN vide email dated 28.10.2020 requested a
copy of the Writ Petition from the CGST Commissionerate (Lucknow) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter has been disposed by the Hon’ble High Court of
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Allahabad vide order dated 01.09.2020 has directing the Additional Commissioner-CGST and Nodal
Officer-ITGRC to look into the grievance raised by the Petitioner.
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1.
ii. Nature of error noticed.
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied
vide email dated 29.12.2020 sharing their GST registration certificate and explained that despite
several attempts, due to poor network service of Portal of GSTN for filing TRAN-1, the Applicant
failed to open TRAN-1 and were unable to file TRAN-1 on time. The Petitioner has stated that they
have made these submissions earlier before the Additional Commissioner, Nodal Officer for IT
Grievance Redressal. However, no screenshots have been shared by the Petitioner.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.11 CWP 10593/2020- M/s JDA India Co. v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
08AATHS4942L1Z9 Rajasthan Hindu Undivided Family

Issue: The Petitioner has claimed that due to various technical glitch/system error on the common
portal, the petitioner failed to file FORM GST TRAN-1 on the GST common portal throughout the
period during which FORM GST TRAN-1 was available.
Status: GSTN is party in this matter. GSTN vide letter dated 04.12.2020 apprised the status of case to
the CGST Commissionerate (Jodhpur) in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018.
The matter is pending before Hon’ble High court of Rajasthan and the next date of hearing has not
been updated on court’s website. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
iv. Exact technical glitch faced by you while filing TRAN-1
v. Nature of error noticed
vi. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 09.01.2021. The Petitioner replied
vide email dated 08.01.2021. The Petitioner did not provide any screen-shot evidencing technical
glitches of the GST Portal. Further, the exact issue faced by the Petitioner was also not provided. The
Petitioner has simply provided that the Common Portal was not working.
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On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.12 WP (C) No. ___/2020-M/s Khemka Marketing
GSTIN/ Provisional ID State Constitution of Business
22ABRPA0008N1ZZ Delhi Proprietorship

Issue: The Petitioner was not able to file TRAN-1 & TRAN-2 electronically for the reason of law
being new and the Petitioner not being well conversant with the functioning of the common portal.
Therefore, the Petitioner faced technical glitches/snags while filing the form. The GST Council
Secretariat vide letter F.No. 248/TRAN-1 Rep./Khemka/GSTC/2020/4675 dated 13.11.2020 has
forwarded GSTN as Respondent No. 3.
Status: GSTN is a party in this matter. GSTN vide email dated 04.12.2020 apprised the status of case
to the GST Council Secretariat and the CGST Commissionerate (Ranchi) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Delhi and
the next date of hearing is not updated on the Court’s website. No effective order is available on the
Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed.
iii. shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 09.01.2021. The Petitioner replied
vide email dated 10.01.2021 sharing representation 13.02.2020 addressed to the CEO, GSTN. The
Petitioner stated that they attempted to file TRAN-1 several times within the stipulated period.
However, despite repeated attempts, the same could not be filed due to technical glitches on the GST
Portal. The Petitioner states that the portal did not accept the submission and showed the message
“error occurred in submit”. They further stated that since the Petitioner was unable to connect with
the system and submit TRAN-1, the fact of failed attempt at filing the return may not have been even
registered in the system. The Petitioner has relied on the judgments passed by the Delhi High Court
in W.P. (C) No. 6537/2019 titled A.B. Pal Electricals Pvt. Ltd. v. UOI &Ors. and the judgement of
the Madras High Court in W.P. No. 3328/2020 titled Checkpoint Apparel Labelling Solutions India
Pvt. Ltd. v. Commr. of GST & Central Excise, Chennai. However, the Petitioner did not provide any
screen-shot evidencing technical glitches of the GST Portal.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Discussion and Decision:
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The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

12.13 WP No. 5402/2020-Vasudev Tracto Rollers v. Nodal Officer &Ors
GSTIN/ Provisional ID State Constitution of Business
19AACFV4959M1ZD West Bengal Partnership

Issue: The Petitioner has claimed that they could not file Form GST TRAN-1 within due date as the
tax consultant of the petitioner had come faced certain technical glitches while filing of form GST
TRAN-1 on the common portal.
Status: GSTN is a party in this matter. GSTN vide email dated 11.12.2020 apprised the status of case
to the GSTC in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018. The matter is pending
before the Hon’ble High Court of Kolkata and the next date of hearing is not updated on the Court’s
website. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information: -
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 09.01.2021. However, no reply was
received from the Petitioner.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Further the claim of the petitioner is
contradictory in itself as on one hand he says that there was message “error occurred in submit” and
on the other hand he states that he was unable to connect to the system. Both can’t be true at the same
time. Thus, the Petitioner’s case may be considered as not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.

Category B3: Successfully Filed as Per Logs with No Error reported.
12.14 Writ Tax 362/2020-SKJ Metals Company v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
09ACQPJ5004M1Z9 Uttar Pradesh Proprietorship

Issue: The Petitioner faced technical glitch while filing TRAN-1.
Status: Writ Petition in this matter has not been received by GSTN only GSTIN was received from
GSTC Secretariat vide their letter no. 526/W.P. 362 of 2020/SKJ/GSTC/2020/3572 dated 11.08.2020
wherein GSTN was requested to verify Petitioner’s claim of technical glitch while filing TRAN-1.
GSTN vide letter dated 28.08.2020apprised the status of case to the GST Council Secretariat and the
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concerned CGST Commissionerate (Lucknow Zone) in terms of CBIC’s Circular no. 39/13/2018
dated 03.04.2018 and requested for a copy of the Writ Petition. The same was requested again vide
GSTN’s email dated 02.09.2020 and letter dated 09.09.2020. The matter is pending before the
Hon’ble Allahabad High Court and the next date of hearing has not been updated on Court’s Website.
The Hon’ble High Court vide interim order dated 07.07.2020 directed the respondents to consider
reopening the portal and in the event the same is not feasible the respondents would entertain the GST
TRAN-1 of the Petitioner manually and pass orders thereon after due verification of the credits as
claimed by the Petitioner.
Further investigation by GSTN: An email dated 14.09.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 16.09.2020. The Petitioner replied
vide email dated 16.09.2020 sharing a manual copy of TRAN-1 and explaining that while filing
Form Tran-1 online they were unable to find the exact column where the Customs Duty eligible for
Input was to be entered. However, they did not share any screenshot/ticket number.
On completion of technical analysis conducted by GSTN, it was observed in the logs that the
Taxpayer has tried to save TRAN-1 which was processed. There were no Error reported in logs and
Revision was not attempted by the Taxpayer. During course of submission error related to invalid
registration reported for no.09627500834 which has been added before first successful attempt.
Thus, the Petitioner’s case may be considered as not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
Sh. Dheeraj Rastogi also presented the 2 cases of TRAN-2 under category A1 and B8 as below:
TRAN-2 Court Cases
Category
No.
Category Detailed Description
Count of
Taxpayer
A.
Category-1
TRAN-1 filed and error in
TRAN-2.
As per Logs Tran-1 filed successfully. Error
recorded in database but no corresponding error
reported in logs.
11
B Category-
8
TRAN-1 filed and TRAN-
2 not attempted and no
error in logs
As per Logs Tran-1 filed successfully. User neither
submitted nor filed TRAN-2 and there are no logs
of save as well.
1

Total 2

13. Category A1: TRAN-1 filed and error in TRAN-2.
13.1 W.P. No. 1327/2020 M/s Capital Enterprises v. UOI &Ors.
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GSTIN/ Provisional ID State Constitution of Business
21AAOPA1368F1Z6 Orissa Proprietorship

Issue: The Petitioner successfully filed TRAN-1 on 27.12.2017. While filing TRAN-2 the Petitioner
faced technical difficulties which prevented them from uploading TRAN-2. The GST Portal displayed
Petitioner the message "Errors encountered while uploading the file."
Status: GSTN is a party in this matter. GSTN vide email dated 08.09.2020 apprised the status of case
to the CGST Commissionerate (Bhubaneswar) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter has been disposed off vide order dated 05.03.2020 with the direction to
Respondent no. 4 (DC, Commercial Tax) and 6 (Commissioner of Sales Tax) to take decision on the
representation filed by the Petitioner vide Annexures 6 & 9 and pass appropriate order in accordance
with law within a period of 3 months from the date of production of certified copy of this order.
On completion of technical analysis conducted by GSTN/, it was observed that the Taxpayer
successfully filed GST TRAN-1 successfully on 27/12/2017 and declared values in Table 7B of 7a &
7d. The taxpayer was eligible for filing TRAN-2 and filed the same for period July 2017 and August
2017 on 30/06/18 & 01/07/2018 respectively. However, the same were not processed due to an error
reported relating to invalid HSN. There were errors recorded in database but no corresponding error
reported in logs. Thus, the Petitioner’s case may be considered as having faced Technical difficulties.
Discussion and Decision-
The ITGRC approved the proposal of the GSTN in view of the technical analysis report and
recommended the case for approval by the GST Council.

14. Category B8: TRAN-1 filed and TRAN-2 not attempted and no error in logs
14.1 WP (C) No. ___/2020-M/s Khemka Marketing
GSTIN/ Provisional ID State Constitution of Business
22ABRPA0008N1ZZ Delhi Proprietor

Issue: The Petitioner was not able to file TRAN-1 & TRAN-2 electronically for the reason of law
being new and the Petitioner not being well conversant with the functioning of the common portal.
Therefore, the Petitioner faced technical glitches/snags while filing the form. The GST Council
Secretariat vide letter F.No. 248/TRAN-1 Rep./Khemka/GSTC/2020/4675 dated 13.11.2020 has
forwarded GSTN as Respondent No. 3.
Status: GSTN is a party in this matter. GSTN vide email dated 04.12.2020 apprised the status of case
to the GST Council Secretariat and the CGST Commissionerate (Ranchi) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Delhi and
the next date of hearing is not updated on the Court’s website. No effective order is available on the
Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
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iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 09.01.2021. The Petitioner replied
vide email dated 10.01.2021 sharing representation 13.02.2020 addressed to the CEO, GSTN. The
Petitioner stated that they attempted to file TRAN-1 several times within the stipulated period.
However, despite repeated attempts, the same could not be filed due to technical glitches on the GST
Portal. The Petitioner states that the portal did not accept the submission and showed the message
“error occurred in submit”. They further stated that since the Petitioner was unable to connect with
the system and submit TRAN-1, the fact of failed attempt at filing the return may not have been even
registered in the system. The Petitioner has relied on the judgments passed by the Delhi High Court
in W.P. (C) No. 6537/2019 titled A.B. Pal Electricals Pvt. Ltd. v. UOI &Ors. and the judgement of
the Madras High Court in W.P. No. 3328/2020 titled Checkpoint Apparel Labelling Solutions India
Pvt. Ltd. v. Commr. of GST & Central Excise, Chennai. However, the Petitioner did not provide any
screen-shot evidencing technical glitches of the GST Portal
On completion of technical analysis conducted by GSTN/, it was observed in the logs that
the Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be
considered as not having faced any Technical difficulties.
Discussion and Decision:
The ITGRC concluded that since there is no evidence of any technical glitch after technical
analysis by the GSTN, this case is rejected by the ITGRC.
15. MIGRATION CASE

15.1 WP.No.31285 of 2019 - M/s Guru Shoes Components. v. UOI &Ors.

Provisional ID New GSTIN
34AADFG2604B1Z8 34AADFG2604B2Z7
Issue: -Petitioner received the PID 34AADFG2604B1Z8. The migration of the Petitioner was
not completed due to an invalid PAN. In the meantime, the Petitioner had also applied for new
registration GSTIN 34AADFG2604B2Z7 with effective date of registration as 22.08.2017.
However, the Petitioner could not report the transactions made by him for the period
01.07.2017 to 21.08.2017 in the new registration as the Petitioner had conducted their business
on their PID. Therefore, the Petitioner applied for completion of the migration process in
August 2018 and again in January 2019 since the Petitioner had already taken a new
registration the application was not processed.
The Court vide order dated 3.06.2020 disposed off the Writ Petition with the direction to the
appropriate authority to issue the necessary positive recommendations for migration/transition
of credit available in the account of the R2 (GSTN) within a period of 4 weeks from the date of
receipt of a copy of this order and R2 (GSTN) will, in turn, will in turn within 4 weeks from
receipt thereof issue necessary intimation to the Petitioner permitting it to access the portal and
upload returns.
The Commissioner, Puducherry Commissionerate (State taxes) has requested to provide a user
ID and password to M/s Guru Shoes (PID-34AADFG2604B1Z8) for accessing GST Portal.
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Examination of records by GSTN: - The matter has been examined at GSTN’s end and it is
observed that no migration request for PID 34AADFG2604B1Z8 was received by GSTN. It’s
relevant to mention here that the process of migration on the GST Portal started on 08.11.2016
and continued till 06.02.2018. Thereafter, another window to complete the migration process was
granted to the taxpayers vide notification no. 31/2018-Central Tax dated 06.08.2018. In
notification no. 31/2018-Central Tax dated 06.08.2018 the following procedure was prescribed for
taxpayers who did not file the complete FORM GST REG 26 but received only a Provisional
Identification Number (PID) (hereinafter referred to as “such taxpayers”):

• The details as per abovementioned notification were required to be furnished by the taxpayer
to the jurisdictional nodal officer of the Central Government or State Government.
• On receipt of an e-mail from the Goods and Services Tax Network (GSTN), such taxpayers
were required to apply for registration by logging onto https://www.gst.gov.in/) in the
“Services” tab and filling up the application in FORM GST REG-01 of the Central Goods and
Services Tax Rules, 2017.
• After due approval of the application by the proper officer, such taxpayers received an email
from GSTN mentioning the Application Reference Number (ARN), a new GSTIN and a new
access token.
• Upon receipt, such taxpayers were required to furnish the following details to GSTN by
email, to migration@gstn.org.in:–
New GSTIN;
Access Token for new GSTIN;
ARN of new application;
Old GSTIN (PID).

Upon receipt of the above information from such taxpayers, GSTN was to complete the process of
mapping the new GSTIN to the old GSTIN and inform such taxpayers. Such taxpayers were
required to log onto the common portal www.gstn.gov.in using the old GSTIN as “First Time
Login” for generation of the Registration Certificate. Such taxpayers were deemed to have been
registered with effect from the 1st July, 2017.

Further, the last date for applying for migration in terms of Notification. No 31/2018 read with
Notification. No 67/2018 dated 31/12/2018 was 28th February 2019.
Discussion and Decision
During the course of discussion, Shri Dheeraj Rastogi stated that the Commissionerate has
recommended the migration of the case as per the Court directions and that as per the information
gathered, the taxpayer is not willing to claim TRAN-1 credit. The ITGRC concurred with the
implementation of the court directions.
16. Category-wise Summary of Cases sent by Nodal Officers of Centre/States

Category
No.
Category Count of
Taxpayers
A1 Processed with error. 16
B1 As per GST system log, there are no evidences of error on submission/filing
of TRAN1.
13
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B2 TRAN-1 Fresh/Revision Attempted with No error/ No valid error reported. 03
B3 TRAN-1 Successfully Filed as Per Logs with No Valid Error reported. 04
B4 TRAN-1 filed once but credit not received. 04
B8 TRAN-1 filed and TRAN-2 not attempted and no error in logs. 03
Grand Total 43

Discussion and Decision:
The GSTN presented the cases forwarded by the nodal officers as above for the consideration
of the ITGRC. The committee opined that both the cases i.e. court cases as well as the nodal officer,
cases are at par as long as the parameters applied in the past ITGRC meetings are uniform i.e. the
assessee had attempted to file the TRAN-1 before the due date and there is a clear evidence of
technical glitch faced by the taxpayer post analysis by GSTN, merit acceptance. In this scenario, the
16 cases falling under category A1 out of 43 cases merit acceptance and remaining 27 cases falling
under category B1, B2, B3, B4, B8 are liable to be rejected as no technical glitch was noticed by
GSTN in these cases post technical analysis. Thus, technically all these 22 cases (6 court cases and 16
nodal officers cases), the ITGRC approves on merit subject to placing before the GST council. They
meet the requirements for considering the cases and fall in the four walls of the criteria set out by
ITGRC. However, as they have been received by the GSTN/nodal officers after the cut off date, we
may place them before the GST council for their view.
In this connection, the committee asked GSTN to update the list of cases forwarded by the
nodal officers in regard to dates on which they were received by the nodal officer in the field and the
date on which they were received by the GSTN for processing. Sh. Manish Kumar Sinha, CEO of the
GSTN committed to update the list of cases forwarded by the nodal officers in this regard and share
with GSTC Secretariat.

17. Additional agenda case of M/S Veliath Steel Agencies as per the Kerala High Court
order and covered by the extended scope of ITGRC as per the 32nd meeting of the GSTC.
Ms. Ashima Bansal, JS, GSTC Secretariat presented the non-technical case of rectification of
TRAN-I in case of M/s Veliath Steel Agencies as per the Kerala High Court order dated 03.07.2020 in
Writ Petition Number 12930/2020. She submitted that it is a case of transposition of column and is
covered by the decision of the 32nd GSTC meeting which extended the scope of the ITGRC for non-
technical issues. It was proposed with the permission of the chair that this case may also be taken up
by the ITGRC.
In this case, the High Court has stated that-
"I am of the view that the 4th respondent has already received such request on consideration
of the matter, in case it requires the petitioner or representative, take a call and thereafter, as per the
circular and the procedure invoked, would send it to SGST network. The SGST network on
consideration of the matter would take a call on request by applying the principles of natural
justice...and thereafter would strictly adhere the procedure in the circular for onward transmission to
ITGRC.”
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Accordingly, as there are directions of the High Court and the recommendation of the
jurisdictional SGST Commissioner that it is an error apparent on record involving transposition of the
column and further the TRAN-I has been filed on time, the conditions pertaining to non technical
cases are fulfilled and the case may be considered by ITGRC as per the guidelines. The Committee
concurred with the view.
Discussion and decision:
All the committee members agreed that the case should be recommended on merit as per the
extended scope of ITGRC approved by the 32nd GST Council meeting.
18. Decision of ITGRC on all Agenda points
18.1 Summary of ITGRC decisions in court cases
The ITGRC recommended the 5 W.P cases of Tran-1 falling under category A1 and one case
of Tran-2 falling under category A1 and rejected the 14 cases of Tran-1 falling under categories
B1/B3, and one case of Tran-2 falling under the category B8. The ITGRC decided to proceed with the
one migration case as per the High Court directions. The Committee directed that the above
recommendations of the ITGRC are to be placed before the GST council in the next meeting for
acceptance or otherwise.
18.2 Summary of ITGRC Decision in Cases forwarded by the nodal officers
The committee decided that both the cases i.e., court cases as well as the nodal officer cases,
are at par as long as the parameters applied in the past in the ITGRC meetings are uniform i.e. the
assessee had attempted to file the TRAN-1 before the due date and there is a clear evidence of
technical glitch faced by the taxpayer post analysis by GSTN, merit acceptance. In this scenario, the
16 cases falling under category A1 out of 43 cases merit acceptance and remaining 27 cases falling
under category B1, B2, B3, B4, B8 are liable to be rejected as no technical glitch was noticed by the
GSTN in these cases post technical analysis.
Thus, on technical grounds, all these 22 cases (6 court cases and 16 nodal officers’ cases), the
ITGRC accepted on merit subject to placing before the GST council. They meet the requirements for
considering the cases and fall within the criteria set out by ITGRC. However, as they have been
received by the GSTN/nodal officers after the due date, we may place them before the GST council
for their view. The committee asked GSTN to update the list of cases forwarded by the nodal officers
in regard to dates on which they were received by the nodal officer in the field and the date on which
they were received by the GSTN for processing.
The ITGRC decided that the 22 cases falling under the category A1 post analysis by the
GSTN (6 Court cases and 16 cases forwarded by the nodal officers) , the ITGRC approves on
merit subject to placing before the GST Council for directions.
18.3 Decision in the case of non-technical nature matter of M/s Valiath Steel Agencies,
Kerala(Writ Petition Number 12930/2020)
All the committee members decided that it was an error apparent on the face of record and the
case is recommended on merit as per the extended scope of ITGRC approved by the 32nd GST
Council meeting.
18.4 Additional discussions with the permission of the chair
18.4.1 Haryana State raised the issue that various taxpayers whose Tran-1 applications have been
rejected in previous ITGRC meetings based on technical analysis by the GSTN, are resubmitting their
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Tran-1 applications to field nodal officers with fresh set of evidences for technical glitches. They
sought clarity on treatment of such cases.
Discussion and decision:
The ITGRC decided that the past cases once decided by the ITGRC and approved by the GST
Council shall not be reopened.

18.4.2 Sh. Dheeraj Rastogi, VP, GSTN requested that a clarity is required whether the cases still
pending with nodal officers are to be taken up by GSTN for processing as the last date for opening the
portal has lapsed. He also requested to provide clarity whether the nodal officer should stop accepting
fresh application from taxpayer in TRAN-1 and TRAN-2 cases.

Discussion and decision-
In this regard, ITGRC stated that in regard to the cases pending with the nodal officers as
well as with GSTN received after the due date , the GSTN should compile how many of such cases
are there and further decided to request the GSTC Secretariat that while putting up the minutes of this
meeting before the GST Council for approval, the final decision shall be sought from GST
Council about the further agenda of the ITGRC and to take a conscious call whether the cases
received after due date and which are still lying with the Nodal Officers as well with GSTN
should be considered at all or not by the ITGRC.

18.4.3 Sh. Manish Kumar Sinha, CEO, GSTN mentioned that an additional agenda for data fixes
and proposal for resolution of these data fixes has been moved by the GSTN which is under
discussion with GST policy wing and GST Council Secretariat. The same should be taken up in
the next meeting to which the Committee concurred.


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Annexure-1
GST Council Secretariat:
1. Mrs Ashima Bansal, Joint Secretary, GSTC

CENTRE:
2. Sh. Vivek Johri, Member, CBIC
3. Sh. Sandeep Kumar, Member and Principal Director General, DG Systems
4. Sh. Anil Kumar Jha, Special/Additional Secretary, DOR

States:
5. Sh. Sidharth Jain, Haryana
6. Sh. Prayag Shah, State Tax, Gujrat
7. Sh. Rasal Dors Soloman J, State Tax, Tamil Nadu
8. Sh. Khalid Anwar, Commissioner, State Tax, West Bengal

Special Invitee:
9. Sh Manish Sinha, CEO, GSTN
10. Sh. Dheeraj Rastogi, VP, GSTN

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Annexure-2
Writ Petition Cases
TRAN-1
Category
No.
Category Detailed Description
Count of
Taxpayer
A.
Category-1
Processed with error
Cases where the taxpayer received the error
‘Processed with error.' As per GST system logs the
taxpayer has attempted to submit first time/fresh or
revise TRAN1 but could not file because of errors.
11
5
B.
Category-1
As per GST system log,
there are no evidences of
error or submission/filing
of TRAN-1.
As per logs User neither submitted nor filed the
form. No logs of save as well. ITC ledger also not
updated. No Valid Error reported.
13
B.
Category-3
Successfully Filed as Per
Logs with No Valid Error
reported.
The Taxpayer has successfully filed TRAN-1 and
no technical errors had been found in the examined
technical logs.
1

Total 19

Category A1: Cases where the taxpayer received the error ‘Processed with error.' As per GST
system logs the taxpayer has attempted to submit first time/fresh or revise TRAN1 but could
not file because of errors.

1. W.P. No. 13864/2020 M/s Cotton Impex v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
06AAGHM4778M1ZK Haryana Proprietorship

Issue: The Petitioner claims that he is entitled to claim of Rs. 13, 97,013/-on account of excess VAT
credit however, due to technical glitch on the portal, he was not able to claim the same.
Status: GSTN is party in this matter. GSTN vide email dated 08.09.2020 apprised the status of case
to the Central Government Standing Counsel and the CGST Commissionerate (Rohtak) in terms of
CBIC’s Circular no. 39/13/2018 dated 03.04.2018. The matter is pending before Hon’ble High court
of Punjab & Haryana and the next date of hearing is 26.11.2020. No effective order is available on the
Court’s website.
On completion of technical analysis conducted by GSTN/Infosys, it was observed that the Taxpayer
had opened form GST TRAN-1 and attempted to save the data. However, the same was not
processed due to a submission error reported for validation for Registration no. 065442914799 which
was invalid. The Registration number has been added in the Petitioner’s profile post 27.12.2017.
Thus, the Petitioner’s case may be considered as having faced Technical difficulties.
2. W.P. No. 15168/2020 M/s Medreich Limited v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
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36AABCM1458Q1Z1 Telangana Public Limited Company

Issue: The Petitioner submitted TRAN-1 and ARN was also generated. However, the same was
reflecting as filed on the GST portal. The Petitioner then attempted to file revised TRAN-1 but it was
not getting reflected on the Portal.
Status: GSTN is not a party in this matter. GSTN vide letter dated 04.11.2020 has apprised the status
of case to the Principal Chief Commissioner CGST (Hyderabad Zone) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Telangana
and the next date of hearing is not updated on the Court’s website. No effective order is available on
the Court’s website.
On completion of technical analysis conducted by GSTN/Infosys, it was observed that the Taxpayer
had filed TRAN-1. However, the same was not processed due to a submission error reported for
validation for Registration Nos. AABCM1458QEM009 and AABCM1458QEM011 which were
invalid. The Registration number AABCM1458QEM009 was added in the Petitioner’s profile before
filing of TRAN-1. However, Registration No.AABCM1458QEM011 has not been added to the
Petitioner’s profile till date. The Petitioner’s ITC Ledger has been updated and ARN has also been
generated for the respective attempts. The Petitioner has not attempted any revision. Thus, the
Petitioner’s case may be considered as having faced Technical difficulties.

3. W.A. No. 788/2020- The Commissioner of GST & CE v. Checkpoint Apparel Labelling
Solution Pvt. Ltd.
GSTIN/ Provisional ID State Constitution of Business
33AAGCS9485A1ZA Tamil Nadu Private Limited Company

Issue: The Petitioner has stated that they had uploaded TRAN-1 on 13.09.2017 and received an email
stating that the Petitioner had successfully filed TRAN-1 with time stamp 13/09/2017, 19.07 and
received ARN AA370913729P. However, the GST Portal showed the same as “Processed with Error”
and the Electronic Credit Ledger was not reflecting the CENVAT Credit.
Status: GSTN is a party in this matter. GSTN vide email dated 29.10.2020 has apprised the status of
the case to the CGST Commissionerate (Chennai North) in terms of CBIC’s Circular No. 39/13/2018
dated 03.04.2018. The appeal has been disposed by the Hon’ble Madras High Court. The Court vide
judgment dated 23.09.2020 which upheld the impugned order dated 14.02.2020 in W.P. No.
3328/2020 directing the Respondents to do the needful to enable the Petitioner to upload the requisite
form TRAN-1 in order to avail unutilised credit.
The Petitioner in this case vide their Letter dated 14.11.2019 addressed to the Commissioner, Chennai
North (Principal Nodal Officer for IT Grievances, Chennai Zone), under endorsement to
Commissioner of GST & CE, Chennai Outer, had stated that they had faced technical glitches in the
GST Common portal while filing Form GST Tran-1 before the due date i.e. 27.12.2017, however they
do not have any proof/screenshot having faced technical glitch. The representation regarding TRAN-1
credit was rejected by Chennai Outer Commissionerate, vide Letter C.No: IV/16/88/2019-
GSTST-TRAN1 dated 01.01.2020 as it was not conforming to Board’s Circular No: 39/13/2018
dated 03.04.2018 i.e. there was no technical glitch and was not forwarded to GSTN. The same was
informed to taxpayer by Chennai Outer Commissionerate vide letter C.No.IV/16/88/2019-GSTSK-
TRAN-1 dated 01.01.2020. Against this, the Taxpayer preferred a Writ Petition No: 3328 of 2020 in
the Hon’ble Madras High Court and the Hon’ble Madras High Court vide Order dated 14.02.2020 in
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WP No:3328 of 2020 has directed the respondents to do the needful forthwith to enable the petitioner
to upload the requisite forms (TRAN-1/2). However, since the nodal Officer (Chennai Outer
Commissionerate) had found that there was no proof for the claims made by the taxpayer for any
technical glitches, rejected the request. The department therefore Writ Appeal the Division bench of
High Court of Madras against the High Order dated 14.02.2020 in WA No. 788/ 2020.
The Commissionerate approached GSTN vide email dated 15.10.2020 with a request examine
whether the Petitioner had made any attempt to file Form GST TRAN-1 in the portal on or before
27.12.2017 and had actually faced any technical glitches as claimed by them. Technical Analysis in
this matter was therefore conducted by GSTN upon receipt of the abovementioned email from
Commissionerate.
On completion of technical analysis conducted by GSTN/Infosys, it was observed that the Petitioner
had opened form GST TRAN-1 and attempted to file the dataon 26th Oct 2017 12:34 PM and
subsequently on 26th Dec 2017. Subsequently, the Petitioner attempted to file revision which was
successfully filed but a submission error was reported for Registration No. Registration no.
AAFCG5452JEM001. The Registration No. AAFCG5452JEM001 has been added to the Petitioner’s
profile post 27.12.2017. The Petitioner’s ITC Ledger has not been updated, but ARN has been
generated for the respective attempts. Thus, the Petitioner’s case may be considered as having faced
Technical difficulties.

4. WPT 6316/2020-M/s GSR Eco Bricks Private Limited v. Union of India

GSTIN/ Provisional ID State Constitution of Business
37AAFCG5452J1ZD Andhra Pradesh Private Limited Company

Issue: The Petitioner has stated that they had uploaded TRAN-1 on 13.09.2017 and received an email
stating that the Petitioner had successfully filed TRAN-1 with time stamp 13/09/2017, 19.07 and
received ARN AA370913729P. However, the GST Portal showed the same as “Processed with Error”
and the Electronic Credit Ledger was not reflecting the CENVAT Credit.
Status: GSTN is a party in this matter. GSTN vide email dated 19.11.2020 has apprised the status of
the case to the CGST Commissionerate (Guntur) in terms of CBIC’s Circular No. 39/13/2018 dated
03.04.2018. The matter is pending before the Hon’ble High Court of Andhra Pradesh and the next
date of hearing is not updated on the Court’s website. No effective order is available on the Court’s
website.
On completion of technical analysis conducted by GSTN/Infosys, it was observed that the Petitioner
had opened form GST TRAN-1 and attempted to file the data. However, the same was not processed
due as it got stuck on “FRZ”. Subsequently, the Petitioner attempted to file revision which was
successfully filed but a submission error was reported for Registration No. Registration no.
AAFCG5452JEM001. The Registration No. AAFCG5452JEM001 has been added to the Petitioner’s
profile post 27.12.2017. The Petitioner’s ITC Ledger has not been updated, but ARN has been
generated for the respective attempts. Thus, the Petitioner’s case may be considered as having faced
Technical difficulties.
5. WP No. 8583/2020 Genext International v. UOI and Ors.
GSTIN/ Provisional ID State Constitution of Business
07AAPFG1341R1ZW Delhi Partnership
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Issue: The Petitioner has claimed that they had filed their Form TRAN-1 for claiming VAT credit of Rs.
4,17,042 and CENVAT credit of Rs. 14,50,716 (total credit of Rs. 18,67,758). However, it was later
noticed that the Petitioner's Electronic Cash Ledger was only reflecting VAT credits i.e. 4, 17,042 and did
not show credits amounting to CENVAT Credit worth Rs. 14, 50,716.
Status: GSTN is not party in this matter. GSTN vide letter dated 04.12.2020 apprised the status of case to
the GST Policy Wing in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018. The Hon’ble High
Court of Delhi has reserved judgment in this case on 21.12.2020. The judgment is not available on the
Court’s website.
On completion of technical analysis conducted by GSTN/Infosys, it was observed that the Taxpayer had
opened form GST TRAN-1 and attempted to file the data. However, the same was not processed due to a
submission error reported for validation for Registration no. AAPFG1341REM001 which was invalid.
The Registration number has still not been added in the Petitioner’s profile. The Petitioner’s ITC Ledger
has been updated and ARN has also been generated for the respective attempts. The Petitioner has not
attempted any revision. Thus, the Petitioner’s case may be considered as having faced Technical
difficulties.
Category-B1:- As per GST system log, there are no evidences of error or submission/filing of
TRAN-1
6. CWP-6585/2020-Bhatia Tyre Works. v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
08ARTPB2446F1ZS Rajasthan Proprietorship

Issue: The Petitioner could not file TRAN-1 within the prescribed time due to constant technical
difficulties faced by the Petitioner on GST portal. Resultantly Petitioner was also unable to file
TRAN-2
Status: GSTN is a party in this matter. GSTN vide letter dated 07.09.2020 shared comments with the
CGST Commissionerate (Jaipur) apprising the status of case to the in terms of CBIC’s Circular no.
39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Rajasthan at
Jaipur and the next date of hearing is 19.09.2020. No effective order is available on the Court’s
website.
Further investigation by GSTN: An email dated 14.09.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 16.09.2020. The Petitioner replied vide email
dated 16.09.2020 explaining that when they attempted to upload TRAN-1 and TRAN-2 the portal
showed them an error of under process. The Petitioner shared details of ticket number
20200316903171 and copy of letter dated 16.09.2019 addressed to the Assistant Commercial Taxes
Officer, Circle-A, Commercial Taxes Department, Sri Ganganagar.
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On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.

7. W.P. No 3988/2020 M/s. Kalpatru Enterprises through its Proprietor Neeraj Jain v. UOI
&Ors.
GSTIN/ Provisional ID State Constitution of Business
07ACRPJ4269P1ZP Delhi Proprietorship

Issue: The Petitioner attempted to file TRAN-1 on the GST portal on 21.12.2017, 23.12.2017,
24.12.2017, 26.12.2017 and 27.12.2017 but could not file the same because of technical glitches on
the GST Portal which the Petitioner could not understand.
Status: GSTN is a party in this matter. GSTN vide email dated 17.09.2020 apprised the status of case
to the CGST Commissionerate (Delhi-North) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter is pending before the Hon’ble High Court of Delhi and the next date of
hearing is 14.09.2020. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 14.09.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 16.09.2020. However, no reply was received
from the Petitioner.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.

8. WP No. 14791/2020 M/s Shah Electronics & Home Appliances Pvt. Ltd. v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
36AAECS5488F1Z1 Telangana Private Limited Company

Issue: The Petitioner was not able to file FORM GST TRAN-01 by 27.12.2017 due to technical
glitches and thereafter portal was closed. As a result, the subsequent filing of FORM GST TRAN-2
also could not be filed by the Petitioner.
Status: GSTN is party in this matter. GSTN vide letter dated 17.09.2020 apprised the status of case to
the Commissioner of Central Tax (Medchal) and the Assistant Commissioner of Central Tax and GST
(Ramgopalpet III Range, Secunderabad Division) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter is pending before Hon’ble High court of Telangana and the next date of
hearing is 02.11.2020. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
Agenda for 43rd GSTCM Volume 3
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iv. Exact technical glitch faced by you while filing TRAN-1
v. Nature of error noticed
vi. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. The Petitioner responded vide
email dated 23.10.2020. The Petitioner did not provide any screen-shot evidencing technical glitches
of the GST Portal. Further, the exact issue faced by the Petitioner was also not provided.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. There are no logs for “save”. ITC ledger has
also not been updated. Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
9. Writ Tax No. 418/2019 M/s Bhagwan Motors v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
09AAHFB9939J1ZT Uttar Pradesh Partnership

Issue: The Petitioner made several attempts to file TRAN-1 on the GST Portal till 27.12.2017
however, could not do so because of apparent technical fault in the GST system.
Status: GSTN is a party in this matter. GSTN vide email dated 18.09.2020 shared comments with the
CGST Commissionerate (Meerut) apprising the status of case to the in terms of CBIC’s Circular no.
39/13/2018 dated 03.04.2018. The Hon’ble High Court of Allahabad vide order dated 04.04.2019 has
disposed off the matter with direction to the Assistant Commissioner/Commissioner GST to consider
the Petitioner's application and pass appropriate order in accordance with law.
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. The Petitioner replied vide email
dated 24.10.2020 explaining that they could not log in into the portal despite trying several times
during the period 20th December 2017 and 27th December 2017. The Petitioner shared a screenshot
of his GST Portal Dashboard taken on 12.02.2020 which showed the message "The filing of
declaration in TRAN-1 is not available now as the due date is over”. This is a valid system message
as the due date for filing TRAN-1 is now over. The Petitioner also shared a letter explaining their
grievance addressed to the Assistant Commissioner, Goods and Service Tax, Range Saraswa.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. There are no logs for “save”. ITC ledger has
also not been updated. Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
10. WP (C) No. 17174/2020-M/s ValethHightech Composites (P) Ltd. v. STO &Ors
GSTIN/ Provisional ID State Constitution of Business
32AAACV1999E1ZC Kerala Private Limited Company
Agenda for 43rd GSTCM Volume 3
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Issue: The Petitioner was not able to upload Form TRAN-1 on account of various computer glitches
with respect to the website of the department before 27.12.2017.
Status: GSTN is a party in this matter. GSTN vide email dated 23.09.2020 apprised the status of case
to the CGST Commissionerate (Kochi) in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018.
The matter is pending before the Hon’ble High Court of Kerala and the next date of hearing is not
updated on the Court’s website. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket numbers.
The Petitioner was requested to provide the details by 24.10.2020. However, no reply was received
from the Petitioner.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1.There are no logs for “save”. ITC ledger has
also not been updated. Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
11. W.P. No. 3427/2020- M/s Jain Medical (Prop.) Manoj Kumar Mehta v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
08ABMPM0042K1ZM Rajasthan Proprietorship

Issue: The Petitioner faced technical glitch while filing TRAN-1.
Status: GSTN is a party in this matter. Writ Petition in this matter has not been received by GSTN
only GSTIN was received from GST Council Secretariat vide letter in F.No.505/SB Civil Writ No.
3427/20/Jain Medical/GSTC/2020/3593 dated 13.08.2020 wherein GSTN was requested to verify
Petitioner’s claim of technical glitch while filing TRAN-1. GSTN vide letter dated 23.09.2020has
requested for a copy of the Writ Petition from the Commissioner of Central Taxes (Jaipur) and the
Principal Commissioner, CGST (Jaipur). The matter has been disposed off by the Jodhpur Bench of
the Hon’ble Rajasthan High judgment dated 19.03.2020 with the following directions:-
"1.The respondents shall permit the petitioner to submit online GST TRAN-1 form, subject to
furnishing a proof that he had tried to upload GST TRAN-1 form prior to 27.12.2017 and such
attempt failed due to technical fault/glitch on the common portal. Needless to mention that petitioner
will be required to submit a certificate/recommendation issued by GST Council in this regard.
2. In case all the three requirements enumerated in para no.12 of the judgment of Jodhpur Truck Pvt.
Ltd. (supra) are met/satisfied, the petitioner’s online GST TRAN-1 form shall be accepted, of course,
if it is filed by 31.03.2020 or extended period (if any).
3. For the purpose aforesaid, the petitioner may submit an application before the GST Council to
issue the requisite certificate/recommendation, along with requisite particulars, evidence and a
certified copy of the order instant, within a period of 15 days from today. If the petitioner’s assertion
is found correct, the GST Council shall issue the recommendation/certificate to the petitioner within a
period of three weeks from placement of such application and certified copy of this order.
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4. In case the GST Council is of the view that petitioner is not entitled for certificate/
recommendation, they shall pass an order giving brief reasons and communicate the same to the
petitioner assessee.
5. Needless to observe that the petitioner shall be free to take appropriate remedy against such
order."
Further investigation by GSTN: An email dated 22.10.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 24.10.2020. However, no reply was received
from the Petitioner.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1.There are no logs for “save”. ITC ledger has
also not been updated .Thus, the Petitioner’s case may be considered as not having faced any
Technical difficulties.
12. 8240/2020-Macro Furnaces Private Limited, Faridabad v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
06AAACM5608H1ZO Haryana Private Limited Company

Issue: The Petitioner has claimed that they could not file form GST TRAN-1 either due to some
technical glitches on the GST Portal or lack of knowledge on the part of the Petitioner or pendency of
VAT Assessment upto 2017-18, only after completion of which the dealer could assess its Input Tax
Credit available to be carried forward.
Status: GSTN is party in this matter. GSTN vide email dated 06.10.2020 apprised the status of case
to the CGST Commissionerate (Faridabad) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter is pending before Hon’ble High court of Punjab & Haryana and the next date
of hearing is not updated on the Court’s Website. No effective order is available on the Court’s
website.
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide email
dated 30.12.2020 sharing a letter addressed to the proper officer explaining that notice of motion has
been issued by the Hon’ble High Court in the present case. The Petitioner also shared their GST
Registration certificate. However, no screenshots were shared.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any technical difficulties
13. W.P. No. 12184/2020 M/s Guru Kripa Lubricant v. UOI &Ors.
Agenda for 43rd GSTCM Volume 3
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Vol-3
GSTIN/ Provisional ID State Constitution of Business
23AEIPJ9886M1ZP Madhya Pradesh Proprietorship

Issue: The Petitioner could not file GST TRAN-1 on the common portal as they were facing technical
difficulties on the GST Portal. The GST Council vide letter no. F.No.556/W.P. No. 12184 of 2020
/Guru Kripa/GSTC/2020/3802-3805 dated 11.09.2020 has requested that the Petitioner’s claim be
verified.
Status: GSTN is a party in this matter. GSTN vide letter dated 15.10.2020 shared comments with the
CGST Commissionerate (Bhopal) apprising the status of the case in terms of CBIC’s Circular no.
39/13/2018 dated 03.04.2018. The Gwalior Bench of the Hon’ble High Court of Madhya Pradesh
disposed the Petitioner’s case vide order dated 27.08.2020 with directions to the Jurisdictional
Commissionerate to pass a reasoned and speaking order within a period of four weeks.
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide email
dated 29.12.2020 explaining despite numerous attempts the said TRAN-1 Form could not be
uploaded on the common portal. The Petitioner shared a copy of the representations explaining the
technical problems to the concerned authorities, a copy of the TRAN-1 for manual filing and a copy
of the ticket number generated (G-20200303773449) on the portal. Ticket no. G-20200303773449
raised by the Petitioner on 03.03.2020 and the Petitioner had raised the following issue
"Dear sir subject: - Regarding Tran-1 form when I trying to file my tran-1 form so I got this message
that tran1 is not available as the due is over. I also complained for this query in my jurisdiction so I
requested to you that please active my Tran-1 form in my GST profile and I also attached my
complained copy which done my me to my jurisdiction thank you".
The abovementioned ticket was closed on 13.03.2020 due to no response received on “Awaiting
Customer Input”, the following message was sent to the Petitioner
"This is in reference to your query, we would like to inform you that we are unable to process your
request further due to unavailability of adequate information. We have not received the requisite
information even after three reminders. Therefore, we are closing this docket from our end."
It may be noted that GST Portal allowed filing of TRAN-1 till the due date i.e. 27.12.2017.
The petitioner has not shared any screenshots and has relied on the judgements of the Hon'ble Delhi
High Court in A.B Pal Electrical Private Ltd. v. Union of India &Ors wherein it is observed by the
Court that "It is not fair to expect that each person who may not have been able to upload the Form
GST TRAN-1 should have preserved some evidence of it - such as, by taking a screen shot...". The
Petitioner has also placed reliance on the judgment of the Hon'ble High Court of Madras in the case
of “Tara Exports v. Union of India &Ors. (WP (MD) No. 18532/2018) for the same.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any technical difficulties.
14. WPT 70/2019-M/s Dhamtari Krishi Kendra v. UOI &Ors
Agenda for 43rd GSTCM Volume 3
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GSTIN/ Provisional ID State Constitution of Business
22ACMPR1282P1Z3 Chhattisgarh Proprietorship

Issue: The Petitioner tried to submit form GST TRAN-1 on the common Portal, however, because of
the technical glitch faced by the Petitioner it could not be submitted. The Petitioner immediately
reported this matter to the authorities in the Department on 26.12.2017.
Status: GSTN is not a party in this matter. GSTN vide email dated 22.10.2020 apprised the status of
case to the GST Council Secretariat in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018.
The matter has been disposed off vide order dated 17.07.2020.The Court vide order dated 17.07.2020
has directed that “it is expected that the Commissioner, Commercial Tax shall take a decision at the
earliest preferably within an outer limit of 60 days from the date of receipt of copy of this order. In the
event , if the Commissioner, Commercial Tax makes a reference to the GSTC, it is expected that the
Council also, in turn, takes an early decision on the reference made by the Commissioner preferably
within a period of 90 days from the date of receipt of reference by the Commissioner.”
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide email
dated 29.12.2020 explaining that when their tax consultant tried to login to the common portal but
was not able to login and the site was busy. The Petitioner has not shared any screenshots and has
stated that due to lack of knowledge, we did not capture any screenshot of the glitch faced and also
did not raise any grievance with GSTN or helpdesk.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
15. Writ Tax No. 420/2020 Kamal Agencies v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
09AMEPK9117A1ZA Uttar Pradesh Proprietorship

Issue: The Hon’ble Allahabad High Court vide order dated 01.09.2020 has directed the Additional
Commissioner, CGST and Nodal Officer ITGRC to look into the grievance raised by the Petitioner.
Status: The Copy of the Writ Petition is not available. GSTN vide email dated 28.10.2020 requested a
copy of the Writ Petition from the CGST Commissionerate (Lucknow) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter has been disposed by the Hon’ble High Court of
Allahabad vide order dated 01.09.2020 has directing the Additional Commissioner-CGST and Nodal
Officer-ITGRC to look into the grievance raised by the Petitioner.
Further investigation by GSTN: An email dated 28.12.2020 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
Agenda for 43rd GSTCM Volume 3
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ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 30.12.2020. The Petitioner replied vide email
dated 29.12.2020 sharing their GST registration certificate and explained that despite several
attempts, due to poor network service of Portal of GSTN for filing TRAN-1, the Applicant failed to
open TRAN-1 and were unable to file TRAN-1 on time. The Petitioner has stated that they have
made these submissions earlier before the Additional Commissioner, Nodal Officer for IT Grievance
Redressal. However, no screenshots have been shared by the Petitioner.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Petitioner neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
16. CWP 10593/2020- M/s JDA India Co. v. UOI &Ors
GSTIN/ Provisional ID State Constitution of Business
08AATHS4942L1Z9 Rajasthan Hindu Undivided Family

Issue: The Petitioner has claimed that due to various technical glitch/system error on the common
portal, the petitioner failed to file FORM GST TRAN-1 on the GST common portal throughout the
period during which FORM GST TRAN-1 was available.
Status: GSTN is party in this matter. GSTN vide letter dated 04.12.2020 apprised the status of case to
the CGST Commissionerate (Jodhpur) in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018.
The matter is pending before Hon’ble High court of Rajasthan and the next date of hearing is
14.01.2021 No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
iv. Exact technical glitch faced by you while filing TRAN-1
v. Nature of error noticed
vi. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 09.01.2021. The Petitioner replied vide email
dated 08.01.2021. The Petitioner did not provide any screen-shot evidencing technical glitches of the
GST Portal. Further, the exact issue faced by the Petitioner was also not provided. The Petitioner has
simply provided that the Common Portal was not working.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
17. WP (C) No. ___/2020-M/s Khemka Marketing
GSTIN/ Provisional ID State Constitution of Business
22ABRPA0008N1ZZ Delhi Proprietorship

Issue: The Petitioner was not able to file TRAN-1 & TRAN-2 electronically for the reason of law
being new and the Petitioner not being well conversant with the functioning of the common portal.
Therefore, the Petitioner faced technical glitches/snags while filing the form. The GST Council
Agenda for 43rd GSTCM Volume 3
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Secretariat vide letter F.No. 248/TRAN-1 Rep./Khemka/GSTC/2020/4675 dated 13.11.2020 has
forwarded GSTN as Respondent No. 3.
Status:.GSTN is a party in this matter. GSTN vide email dated 04.12.2020 apprised the status of case
to the GST Council Secretariat and the CGST Commissionerate (Ranchi) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Delhi and
the next date of hearing is not updated on the Court’s website. No effective order is available on the
Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.

The Petitioner was requested to provide the details by 09.01.2021. The Petitioner replied vide email
dated 10.01.2021 sharing representation 13.02.2020 addressed to the CEO, GSTN.The Petitioner
stated that they attempted to file TRAN-1 several times within the stipulated period. However,
despite repeated attempts, the same could not be filed due to technical glitches on the GST Portal.
The Petitioner states that the portal did not accept the submission and showed the message “error
occurred in submit”. They further stated that since the Petitioner was unable to connect with the
system and submit TRAN-1, the fact of failed attempt at filing the return may not have been even
registered in the system. The Petitioner has relied on the judgments passed by the Delhi High Court
in W.P. (C) No. 6537/2019 titled A.B. Pal Electricals Pvt. Ltd. v. UOI &Ors. and the judgement of
the Madras High Court in W.P. No. 3328/2020 titled Checkpoint Apparel Labelling Solutions India
Pvt. Ltd. v. Commr. of GST & Central Excise, Chennai. However, the Petitioner did not provide any
screen-shot evidencing technical glitches of the GST Portal
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties
18. WP No. 5402/2020-Vasudev Tracto Rollers v. Nodal Officer &Ors
GSTIN/ Provisional ID State Constitution of Business
19AACFV4959M1ZD West Bengal Partnership

Issue: The Petitioner has claimed that they could not file Form GST TRAN-1 within due date as the
tax consultant of the petitioner had come faced certain technical glitches while filing of form GST
TRAN-1 on the common portal.
Status: GSTN is a party in this matter. GSTN vide email dated 11.12.2020 apprised the status of case
to the GSTC in terms of CBIC’s Circular no. 39/13/2018 dated 03.04.2018. The matter is pending
before the Hon’ble High Court of Kolkata and the next date of hearing is not updated on the Court’s
website. No effective order is available on the Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
Agenda for 43rd GSTCM Volume 3
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iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.
The Petitioner was requested to provide the details by 09.01.2021. However, no reply was received
from the Petitioner.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
Category B3: Successfully Filed as Per Logs with No Error reported. Successfully Filed as Per
Logs with No Error reported.
19. Writ Tax 362/2020-SKJ Metals Company v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
09ACQPJ5004M1Z9 Uttar Pradesh Proprietorship

Issue: The Petitioner faced technical glitch while filing TRAN-1.
Status: Writ Petition in this matter has not been received by GSTN only GSTIN was received from
GSTC Secretariat vide their letter no. 526/W.P. 362 of 2020/SKJ/GSTC/2020/3572 dated 11.08.2020
wherein GSTN was requested to verify Petitioner’s claim of technical glitch while filing TRAN-1.
GSTN vide letter dated 28.08.2020apprised the status of case to the GST Council Secretariat and the
concerned CGST Commissionerate (Lucknow Zone) in terms of CBIC’s Circular no. 39/13/2018
dated 03.04.2018 and requested for a copy of the Writ Petition. The same was requested again vide
GSTN’s email dated 02.09.2020 and letter dated 09.09.2020. The matter is pending before the
Hon’ble Allahabad High Court and the next date of hearing has not been updated on Court’s Website.
The Hon’ble High Court vide interim order dated 07.07.2020 directed the respondents to consider
reopening the portal and in the event the same is not feasible the respondents would entertain the GST
TRAN-1 of the Petitioner manually and pass orders thereon after due verification of the credits as
claimed by the Petitioner.
Further investigation by GSTN:Further investigation by GSTN: An email dated 14.09.2020 was
sent to the Petitioner requesting for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.

The Petitioner was requested to provide the details by 16.09.2020. The Petitioner replied vide email
dated 16.09.2020 sharing a manual copy of TRAN-1 and explaining that while filing Form Tran-1
online they were unable to find the exact column where the Customs Duty eligible for Input was to
be entered. However, they did not share any screenshot/ticket number.
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer has tried to save TRAN-1 which was processed. There were no Error reported in logs and
Revision was not attempted by the Taxpayer. During course of submission error related to invalid
registration reported for no.09627500834 which has been added before first successful attempt.
Thus, the Petitioner’s case may be considered as not having faced any Technical difficulties.
Agenda for 43rd GSTCM Volume 3
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TRAN-2
Category No. Category Detailed Description
Count of
Taxpayer
A. Category-1
TRAN-1 filed and error in
TRAN-2.
As per Logs Tran-1 filed successfully. Error
recorded in database but no corresponding error
reported in logs.
11
B Category-8
TRAN-1 filed and TRAN-
2 not attempted and no
error in logs
As per Logs Tran-1 filed successfully. User
neither submitted nor filed TRAN-2 and there
are no logs of save as well.
1

Total 2

Category A1: TRAN-1 filed and error in TRAN-2.

20. W.P. No. 1327/2020 M/s Capital Enterprises v. UOI &Ors.
GSTIN/ Provisional ID State Constitution of Business
21AAOPA1368F1Z6 Orissa Proprietorship

Issue: The Petitioner successfully filed TRAN-1 on 27.12.2017. While filing TRAN-2 the Petitioner
faced technical difficulties which prevented them from uploading TRAN-2. The GST Portal displayed
Petitioner the message "Errors encountered while uploading the file."
Status: GSTN is a party in this matter. GSTN vide email dated 08.09.2020 apprised the status of case
to the CGST Commissionerate (Bhubaneswar) in terms of CBIC’s Circular no. 39/13/2018 dated
03.04.2018. The matter has been disposed off vide order dated 05.03.2020 with the direction to
Respondent no. 4 (DC, Commercial Tax) and 6 (Commissioner of Sales Tax) to take decision on the
representation filed by the Petitioner vide Annexures 6 & 9 and pass appropriate order in accordance
with law within a period of 3 months from the date of production of certified copy of this order.
On completion of technical analysis conducted by GSTN/Infosys, it was observed that the
Taxpayer successfully filed GST TRAN-1 successfully on 27/12/2017 and declared values in Table
7B of 7a & 7d. The taxpayer was eligible for filing TRAN-2 and filed the same for period July 2017
and August 2017 on 30/06/18 & 01/07/2018 respectively. However, the same were not processed
due to an error reported relating to invalid HSN. There were errors recorded in database but no
corresponding error reported in logs. Thus, the Petitioner’s case may be considered as having faced
Technical difficulties.
Category B8: TRAN-1 filed and TRAN-2 not attempted and no error in logs

21. WP (C) No. ___/2020-M/s Khemka Marketing
GSTIN/ Provisional ID State Constitution of Business
22ABRPA0008N1ZZ Delhi Proprietor

Agenda for 43rd GSTCM Volume 3
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Vol-3
Issue: The Petitioner was not able to file TRAN-1 & TRAN-2 electronically for the reason of law
being new and the Petitioner not being well conversant with the functioning of the common portal.
Therefore, the Petitioner faced technical glitches/snags while filing the form. The GST Council
Secretariat vide letter F.No. 248/TRAN-1 Rep./Khemka/GSTC/2020/4675 dated 13.11.2020 has
forwarded GSTN as Respondent No. 3.
Status: GSTN is a party in this matter. GSTN vide email dated 04.12.2020 apprised the status of case
to the GST Council Secretariat and the CGST Commissionerate (Ranchi) in terms of CBIC’s Circular
no. 39/13/2018 dated 03.04.2018. The matter is pending before the Hon’ble High Court of Delhi and
the next date of hearing is not updated on the Court’s website. No effective order is available on the
Court’s website.
Further investigation by GSTN: An email dated 07.01.2021 was sent to the Petitioner requesting
for the following information:-
i. Exact technical glitch faced by you while filing TRAN-1
ii. Nature of error noticed
iii. Screen-shots of technical error/emails sent to help-desk along with ticket
numbers.

The Petitioner was requested to provide the details by 09.01.2021. The Petitioner replied vide email
dated 10.01.2021 sharing representation 13.02.2020 addressed to the CEO, GSTN.The Petitioner
stated that they attempted to file TRAN-1 several times within the stipulated period. However,
despite repeated attempts, the same could not be filed due to technical glitches on the GST Portal.
The Petitioner states that the portal did not accept the submission and showed the message “error
occurred in submit”. They further stated that since the Petitioner was unable to connect with the
system and submit TRAN-1, the fact of failed attempt at filing the return may not have been even
registered in the system. The Petitioner has relied on the judgments passed by the Delhi High Court
in W.P. (C) No. 6537/2019 titled A.B. Pal Electricals Pvt. Ltd. v. UOI &Ors. and the judgement of
the Madras High Court in W.P. No. 3328/2020 titled Checkpoint Apparel Labelling Solutions India
Pvt. Ltd. v. Commr. of GST & Central Excise, Chennai. However, the Petitioner did not provide any
screen-shot evidencing technical glitches of the GST Portal
On completion of technical analysis conducted by GSTN/Infosys, it was observed in the logs that the
Taxpayer neither submitted nor filed form TRAN-1. Thus, the Petitioner’s case may be considered as
not having faced any Technical difficulties.
MIGRATION CASE
22. WP.No.31285 of 2019 - M/s Guru Shoes Components. v. UOI &Ors.
Provisional ID New GSTIN
34AADFG2604B1Z8 34AADFG2604B2Z7

Issue: -Petitioner received the PID 34AADFG2604B1Z8. The migration of the Petitioner was
not completed due to an invalid PAN. In the meantime, the Petitioner had also applied for new
registration GSTIN 34AADFG2604B2Z7 with effective date of registration as 22.08.2017.
However, the Petitioner could not report the transactions made by him for the period
01.07.2017 to 21.08.2017 in the new registration as the Petitioner had conducted their business
on their PID. Therefore, the Petitioner applied for completion of the migration process in
August 2018 and again in January 2019 since the Petitioner had already taken a new
registration the application was not processed.
Agenda for 43rd GSTCM Volume 3
Page 134 of 159
Vol-3

Status:- The Court vide order dated 3.06.2020 disposed off the Writ Petition with the direction to
the appropriate authority to issue the necessary positive recommendations for migration/transition
of credit available in the account of the R2 (GSTN) within a period of 4 weeks from the date of
receipt of a copy of this order and R2 (GSTN) will, in turn, will in turn within 4 weeks from
receipt thereof issue necessary intimation to the Petitioner permitting it to access the portal and
upload returns.

Recommendation of Commissionerate, GSTN and GSTC Secretariat:-The Commissioner,
Puducherry Commissionerate (State taxes) vide letter no. 3603/CTD/RC/2020 dated 21.10.2020
(Annexure-A) have written to GSTN with a request to provide a user ID and password to M/s
Guru Shoes (PID-34AADFG2604B1Z8) for accessing GST Portal. Further GSTN vide letter no
File No. GSTN/2019/Legal/482 dated 18.12.2020 (Annexure-B) addressed to Commissioner,
GST Policy Wing with a copy marked to GSTC Secretariat sought whether GSTN should comply
with the direction issued by the Hon’ble High Court or the Government would be preferring an
appeal against it.

The GSTC Secretariat vide its letter dated 31.12.2020 with F.No
729/WP/31285/Guru/GSTC/2020 (Annexure-C) addressed to the Commissioner, GST Policy
Wing, CBIC (As Co-Convenor of Law Committee) North Block, New Delhi ,requested for the
resolution of the issue of the Petitioner, pursuant to passing of Hon’ble Madras High Court order.
The GSTC Secretariat vide this letter has given its opinion that the may be considered for
acceptance and this specific case of the migration of petitioner may be allowed by following the
special procedure given in Notification No.31/2018 CT dated 06.08.2018 subject to the conditions
that:

(a) Migration of taxpayer's PID 34AADFG2604B1Z8 may be completed by GSTN and after
migration it may be mapped with the new GSTIN 34AADFG2604B2Z7 taken by the
taxpayer (as in para 2(v) of Notification No.31/2018 CT dated 06.08.2018) for facilitating
filing of returns for the period from 1st of July 2017 to 21st of August 2017.

(b) As reported by jurisdictional office, the taxpayer had no closing VAT credit and he was also
not registered under the Central Excise prior to GST. Hence, no such claim of transitional
credit arises. Also the due date of claiming Transitional credit under Rule 117(1A) is over.
Thus the taxpayer can't file TRAN-I at this stage.

(c) No ITC on the invoices pertaining to inward supplies for this taxpayer during the period of
July 2017 to 21st of August 2017 can be allowed as the last date for taking the input tax
credit in respect of these invoices is over as per the time limit prescribed under Section 16(4)
of the CGST Act 2017.

(d) The details of outward supplies declared by this taxpayer in GSTR-I for the period from 1 of
July 2017 to 21t of August 2017 shall not be reflected in GSTR-2A and GSTR- 2B of the
recipients in order to avoid the recipients taking ITC again, if any.

Examination of records by GSTN: - The matter has been examined at GSTN’s end and it is
observed that no migration request for PID 34AADFG2604B1Z8 was received by GSTN. It’s
relevant to mention here that the process of migration on the GST Portal started on 08.11.2016
and continued till 06.02.2018. Thereafter, another window to complete the migration process was
granted to the taxpayers vide notification no. 31/2018-Central Tax dated 06.08.2018. In
notification no. 31/2018-Central Tax dated 06.08.2018 the following procedure was prescribed for
taxpayers who did not file the complete FORM GST REG 26 but received only a Provisional
Identification Number (PID) (hereinafter referred to as “such taxpayers”):
Agenda for 43rd GSTCM Volume 3
Page 135 of 159
Vol-3
• The details as per abovementioned notification were required to be furnished by the taxpayer
to the jurisdictional nodal officer of the Central Government or State Government.
• On receipt of an e-mail from the Goods and Services Tax Network (GSTN), such taxpayers
were required to apply for registration by logging onto https://www.gst.gov.in/) in the
“Services” tab and filling up the application in FORM GST REG-01 of the Central Goods and
Services Tax Rules, 2017.
• After due approval of the application by the proper officer, such taxpayers received an email
from GSTN mentioning the Application Reference Number (ARN), a new GSTIN and a new
access token.
• Upon receipt, such taxpayers were required to furnish the following details to GSTN by
email, to migration@gstn.org.in:–
New GSTIN;
Access Token for new GSTIN;
ARN of new application;
Old GSTIN (PID).

Upon receipt of the above information from such taxpayers, GSTN was to complete the process of
mapping the new GSTIN to the old GSTIN and inform such taxpayers. Such taxpayers were
required to log onto the common portal www.gstn.gov.in using the old GSTIN as “First Time
Login” for generation of the Registration Certificate. Such taxpayers were deemed to have been
registered with effect from the 1st July, 2017.

Further, the last date for applying for migration in terms of Notification. No 31/2018 read with
Notification. No 67/2018 dated 31/12/2018 was 28th February 2019.

A decision is being sought in this matter on further action required to be taken by GSTN.

















Agenda for 43rd GSTCM Volume 3
Page 136 of 159
Vol-3
Annexure-3
Cases sent by Nodal Officers of Centre/States

Category Detailed Description Count of
Taxpayer
A1 Processed with error. The taxpayer could not claim transitional credit as the line
items requiring declarations of earlier existing law
registration were processed with error since the taxpayer
had not added them in his registration details.
16
B1 As per GST system log, there
are no evidences of error or
submission/filing of TRAN-
1.
As per GST System Logs there is no evidence that the
taxpayer has tried for Saving / Submitting / Filing TRAN-
1

13
B2 TRAN-1 Fresh/Revision
Attempted with No error/ No
valid error reported.
As per GST System Logs, the taxpayer tried to save /
submit / File for first time or for revision of TRAN-1 but
there are no evidences of system errors in the logs.
03
B3 TRAN-1 Successfully Filed
as Per Logs with No Valid
Error reported.
The taxpayer has successfully filed TRAN-1 and no
technical error has been found.
04
B4 TRAN-1 is filed but credit
not received.
Cases where the taxpayer has filed TRAN1 once and
claims that no credit has been posted. No technical issues
have been observed in the logs.
04
B8 TRAN-1 filed and TRAN-
2 not attempted and no error
in logs.
As per Logs TRAN-1 filed successfully. User neither
submitted nor filed the TRAN-2 and there are no logs of
save as well.
03
Total 43


Agenda for 43rd GSTCM Volume 3
Page 137 of 159
Vol-3

Category A1: Cases where the taxpayer received the error ‘Processed with error. The taxpayer could not
claim transitional credit as the line items requiring declarations of earlier existing law registration were
processed with error since the taxpayer had not added them in his registration details.

S.
N
o.
GSTIN Legal
Name
Constit
ution of
Busines
s
Amoun
t of
Credit
to be
claimed
in
TRAN-
1 (in
Rs.)
State Name
and
Designa
tion of
Nodal
Officer
Sta
te/
Ce
ntr
e
Email ID of Nodal
Officer
1 18AABCS94
50Q1ZL
Sunrise
Biscuit
Compan
y Private
Limted
Private
Limited
Compa
ny
Rs.
768131/
-
Assam Sh. B.
S.
Suhag,
Additon
al
Commis
sioner
Cen
ter
suhag104@yahoo.in
bhupender.suhag@g
ov.in
2 26AAACE3
622P1ZJ
Everest
Holovisi
ons Ltd.
Public
Limited
Compa
ny
Rs.
13,98,0
04/-
Dadra
and
Nagar
Haveli
Satish
Dhavale
,
Commis
sioner
Stat
e
commr-
cexvdr2@nic.in
3 02ATXPS74
63H1Z0
AMAR
SINGH
Propriet
orship
SGST :
Rs.
44966/-
Himac
hal
Prades
h
Gopal
Dass
Dogra,
Asstt.
Commis
sioner
Stat
e
gopaldass.dogra@m
ailhptax.gov.in
4 27AAFCA9
533J1ZE
Addon
retails
Private
Ltd.
Private
Limited
Compa
ny
Rs.
436375/
-
Mahar
ashtra
Sanjeev
V.
Chetule,
Assistan
t
Commis
sioner
Cen
ter
sanjeev.chetule@ni
c.in
5 27AAFCM2
000E1Z5
Mehta
Infocom
m Pvt
Ltd
Private
Limited
compan
y
CGST
Rs.
66,74,3
74/-
Mahar
ashtra
Anagha
R.
Jakhadi
,
Superint
endent
Cen
ter
Anagha.Jakhadi@ic
egate.gov.in
Agenda for 43rd GSTCM Volume 3
Page 138 of 159
Vol-3
6 27AACCA3
162C1Z7
A R
THERM
OSETS
PRIVAT
E
LIMITE
D
Private
Limited
Compa
ny
CGST:
Rs.
20,30,4
68.47/-
Mahar
ashtra
Mrs.
Kalyane
shwari
B. Patil
Stat
e
gstit.state@mahagst
.gov.in
7 27AAHFN2
405R1ZW
NEXUS
POLYC
HEM
Partersh
ip
CGST:
Rs.
799407
3/-
Mahar
ashtra
Mrs.
Kalyane
shwari
B. Patil
Stat
e
gstit.state@mahagst
.gov.in
8 27AABCI45
68D1ZM
INDOFI
L
INDUST
RIES
LIMITE
D
Public
Limited
Compa
ny
CGST:
Rs.
10,06,0
4,152/-
Mahar
ashtra
Mrs.
Kalyane
shwari
B. Patil
Stat
e
gstit.state@mahagst
.gov.in
9 03AAVPM6
375R1ZN
GAURA
V
MAHAJ
AN
Propriet
orship
Rs.
224794/
-
Punjab Pawan
Garg,
Deputy
Commis
sioner
Stat
e
detcldh@punjab.go
v.in
1
0
36ATLPM1
278L1Z5
**Received
after
31.03.2020
by the Nodal
Officer /
Field
formation
SONI
MURAH
ARI
Propriet
orship
SGST :
Rs.
3,60,98
0/-
Telang
ana
Shri. B.
Raghu
Kiran,
Joint
Commis
sioner
Cen
tre
raghu.batchali@gov
.in
1
1
36AAHFT82
55F1ZW
T V
PLASTI
CS
Partners
hip
CGST :
2,04,44
7/-
Telang
ana
Shri. B.
Raghu
Kiran,
Joint
Commis
sioner
Cen
ter
raghu.batchali@gov
.in
1
2
36AAHFC1
808R1Z3
CLASSI
C
PLASTO
CRAFTS
Partners
hip
CGST :
7,27,87
3/-
Telang
ana
Shri. B.
Raghu
Kiran,
Joint
Commis
sioner
Cen
ter
raghu.batchali@gov
.in
Agenda for 43rd GSTCM Volume 3
Page 139 of 159
Vol-3
1
3
36AUBPT74
40C1ZP
SIRISH
A
TALLA
DA
Propriet
orship
CGST :
8,07,51
6/-
Telang
ana
Shri. B.
Raghu
Kiran,
Joint
Commis
sioner
Cen
ter
raghu.batchali@gov
.in
1
4
36AAACG7
441A1Z2
Golden
Streak
Drugs
and
Pharmac
euticals
Limited
Public
Limited
Compa
ny
SGST :
Rs.
8,93,13
1/-
Telang
ana
Shri. B.
Raghu
Kiran,
Joint
Commis
sioner
Cen
tre
cgst.adc1hydcommt
e@gov.in
1
5
09AAJHM8
433Q1ZB
MOHAN
LAL
AGARW
AL
(HUF)
Hindu
Undivid
ed
Family
Rs.
236366/
-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-up@nic.in
1
6
09AAACB2
250J1ZW
BANAR
AS
MARBL
ES &
GRANIT
ES
LIMITE
D
Public
Limited
Compa
ny
CGST-
Rs.
139333
1.50/-
SGST-
Rs.
139333
1.50/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-up@nic.in

Category B1: Cases in which, as per GST system log, there are no evidences of error or submission/filing of
TRAN-1. As per GST System Logs, the taxpayer has neither tried for saving / submitting or Filing TRAN-1.

S.
N
o.
GSTIN Legal
Name
Constitu
tion of
Business
Amount
of
Credit
to be
claimed
in
TRAN-
1 (in
Rs.)
State Name
and
Designat
ion of
Nodal
Officer
Stat
e/
Cen
tre
Email ID of
Nodal Officer
1 33AACCL11
61E1Z4
Linux
Laboratorie
s Private
Limited
Private
Limited
Compan
y
CGST :
Rs.
5,00,000
/-
Tamil
Nadu
J Rasal
Doss
Solomon
, Joint
Commiss
ioner
Stat
e
jcit@ctd.tn.go
v.in
Agenda for 43rd GSTCM Volume 3
Page 140 of 159
Vol-3
2 36ABTFS245
2G1ZU
SYNERG
Y LUBES
& OILS
Partners
hip
CGST:
Rs.
20,15,61
7/-
Telan
gana
Shri.
B.Raghu
Kiran,
Joint
Commiss
ioner
Cent
re
raghu.batchali
@gov.in
3 09AABCN03
76N1Z4
NIRMAL
FIBRES
PRIVATE
LIMITED
Private
Limited
Compan
y
CGST
Rs.
62,10,06
3/-
Uttar
Prades
h
Pr.
Commiss
ioner
Cent
er

4 09AMQPK91
01L1ZJ
WASEEM
KHAN
Proprieto
rship
SGST
Rs.
63657.5
5/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in
5 09ABFPK945
0J1Z9
SARFARA
Z WALI
KHAN
Proprieto
rship
SGST
Rs.
76812.7
4/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in
6 09AAUPJ158
5F1ZA
SANJEEV
JAIN
Proprieto
rship
SGST-
Rs.
1063759
/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in
7 09BJAPS813
1A1ZF
SANDEEP Proprieto
rship
CGST-
Rs.
694843.
50/-
SGST-
Rs.
694843.
50/-
Uttar
Prades
h
Shri
Arvind
Kumar
Cent
er
ctithqlu-
up@nic.in
8 09AABFZ029
1K1ZU
3A
ELECTRO
NICS
AGENCY
Partners
hip
Value-
Rs.
4504112
.00/-
Eligible
dutes
paid Rs.
563383.
00/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in
9 09AADCK60
13F1ZS
KIRTIKU
NJ
AUTOMO
BILES
PRIVATE
LIMITED
Private
Limited
Compan
y
Rs.
1397656
.3/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in
Agenda for 43rd GSTCM Volume 3
Page 141 of 159
Vol-3
1
0
09ABEPG597
2E1ZM
BRAJEND
RA
KUMAR
GUPTA
Proprieto
rship
Rs.
2500/-
Uttar
Prades
h
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in
1
1
09APTPG672
0P1Z3
Manish
Grover
Proprieto
rship
Rs.
282347.
17/-
Uttar
Prades
h
Arvind
Kumar,
Addition
al
Commiss
ioner
Stat
e
ctithqlu-
up@nic.in
1
2
09AABFG03
20L1ZP
Gopal Dal
Mills
Partners
hip
Rs.
12273/-
Uttar
Prades
h
Shri P.
K.
Katiyar,
Commiss
ioner
Stat
e
commr-
cexkpr@nic.in
1
3
09AAEFD28
94H1Z7
Devendra
Dal
Industries
Partners
hip
Rs.
339100.
9/-
Uttar
Prades
h
Shri P.
K.
Katiyar,
Commiss
ioner
Cent
re
commr-
cexkpr@nic.in


Category B2: Cases where TRAN 1 Fresh/Revision Attempted with No error or No valid error reported: As per
GST System Logs, the taxpayer tried to save / submit / File for first time or for revision of TRAN 1 but there are no
evidences of system errors in the log.

S.
N
o.
GSTIN Legal
Name
Constitu
tion of
Business
Amo
unt
of
Cred
it to
be
claim
ed in
TRA
N-1
(in
Rs.)
State Name
and
Designat
ion of
Nodal
Officer
Stat
e/
Cen
tre
Email ID of
Nodal Officer
1 07AAIPK866
0N1Z2
SUBHA
SH
CHAND
ER
KALIA
Proprieto
rship
Delhi Cent
er

Agenda for 43rd GSTCM Volume 3
Page 142 of 159
Vol-3
2 27AACCB140
9R1ZH
VIDEO
CON
D2H
LIMITE
D
Public
Limited
Compan
y
Mahara
shtra
Ganapati
T.
Chougul
e,
Assistant
Commiss
ioner
Cent
er
d08.mumwest@g
mail.com
3 09AAVPJ483
6C1ZF
MANEE
SHA
JAIN
Proprieto
rship
SGS
T-
Rs.
3198
41/-
Uttar
Pradesh
Shri
Arvind
Kumar
Stat
e
ctithqlu-
up@nic.in


Category B3: Cases where the taxpayer has Successfully Filed as Per Logs with No Valid Error reported: The
taxpayer has successfully filed TRAN-1 and no technical errors has been found.
S.
N
o.
GSTIN Legal
Name
Constituti
on of
Business
Amou
nt of
Credit
to be
claime
d in
TRAN
-1 (in
Rs.)
State Name and
Designatio
n of Nodal
Officer
State
/
Cent
re
Email ID of Nodal
Officer
1 07AAIPK8660N
1Z2
SUBHAS
H
CHANDE
R KALIA
Proprietors
hip
Delhi Cente
r

2 27AACCB1409R
1ZH
VIDEOCO
N D2H
LIMITED
Public
Limited
Company
Maharash
tra
Ganapati T.
Chougule,
Assistant
Commissio
ner
Cente
r
d08.mumwest@gmai
l.com
3 09AAVPJ4836C
1ZF
MANEES
HA JAIN
Proprietors
hip
SGST-
Rs.
31984
1/-
Uttar
Pradesh
Shri
Arvind
Kumar
State ctithqlu-up@nic.in

Category B4: Cases where TRAN-1 is filed but credit not received. In these cases the taxpayer has filed
TRAN-1 once but no credit has been posted. No technical issues has been observed in the logs.
S.
N
o.
GSTIN Legal Name Constituti
on of
Business
Amount
of
Credit
to be
claimed
in
TRAN-1
(in Rs.)
State Name and
Designation
of Nodal
Officer
State
/
Cent
re
Email ID of
Nodal Officer
Agenda for 43rd GSTCM Volume 3
Page 143 of 159
Vol-3
1 24AASFS8005M
1ZO
Suraj Impex Partnership Rs.
51,95,60
6/-
Gujarat Dr.JeeteshNa
gori,
Commissione
r
Cente
r
commr-
cexamd3@nic.i
n
2 08ABQPM2801C
1ZW
RAKESH
MAHESHW
ARI
Proprietors
hip
Rajasth
an
Mahendra
Pal,
Commissione
r
Cente
r
commr-
cexjpr@nic.in
3 36ACZPN0228L1
Z1
DEVENDRA
KUMAR
NAHATA
Proprietors
hip
CGST;
4,36,419
/-
Telanga
na
L. Radha
Sindhiya,
Asst.
Commissione
r
State ac_gstn@tgct.g
ov.in
4 09AAECR5457P1
ZL
Rudra Real
Estate Ltd.
Public
Limited
Company
Rs.
1606984
/-
Uttar
Pradesh
Arvind
Kumar,
Additional
Commissione
r
State ctithqlu-
up@nic.in

CATEGORY B8: TRAN-1 filed and TRAN-2 not attempted and no error in logs: As per Logs TRAN-1
filed successfully. User neither submitted nor filed the TRAN-2 and there are no logs of save as well.
S.
N
o.
GSTIN Legal Name Constitu
tion of
Business
Amount
of
Credit
to be
claimed
in
TRAN-
1 (in
Rs.)
State Name and
Designatio
n of Nodal
Officer
Stat
e/
Cen
tre
Email ID of Nodal
Officer
1 24ADBPK57
00D1Z9
JagdishkumarDaya
lal Kotak
Proprieto
rship
Rs.
1,51,885
/-
Gujar
at
Dr.Jeetesh
Nagori,
Commissio
ner
Cent
er
commr-
cexamd3@nic.in
2 24AKIPB780
8D1ZJ
AnilkumarHansraj
bhaiBhuva
Proprieto
rship
Rs.
5,97,785
.80/-
Gujar
at
Dr.Jeetesh
Nagori,
Commissio
ner
Stat
e
commr-
cexamd3@nic.in
3 02AAEFG51
48H1ZP
GAINDA MULL
HEMRAJ
AGENCIES
Partnersh
ip
CGST :
Rs.
586000/
-
Hima
chal
Prade
sh
Gopal Dass
Dogra,
Asstt.
Commissio
ner
Stat
e
gopaldass.dogra@mail
hptax.gov.in
Agenda for 43rd GSTCM Volume 3
Page 144 of 159
Vol-3

Annexure-4
Subject: Agenda Note for ITGRC in case of M/S Veliath Steel Agencies as per the High Court
order and covered by the extended scope of ITGRC as per the 32 meeting of the GSTC.
Rectification of Tran-I in case of M/S Veliath Steel Agencies as per the High Court order dated
03.07.2020 in Writ petition Number 12930/2020. It is a case of transposition of column and is covered
by the decision of the 32nd GSTC meeting which extended the scope of the ITGRC for non-technical
issues. It is proposed that this case may also be taken up by the ITGRC.
In this case, the High Court has stated that
"I am of the view that the 4th respondent has already received such request on consideration
of the matter, in case it requires the petitioner or representative, take a call and thereafter, as
per the circular and the procedure invoked, would send it to SGST network. The SGST
network on consideration of the matter would take a call on request by applying the
principles of natural justice...and thereafter would strictly adhere the procedure in the
circular for onward transmission to ITGRC.”
Accordingly, as per the directions of the High Court and the recommendation of the jurisdictional
SGST Commissioner that it is an error apparent on record involving transposition of the column and
further the TRAN-I has been filed on time, the case may be considered by ITGRC.


















Agenda for 43rd GSTCM Volume 3
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Annexure-B
Cases forwarded by nodal officers and recommended to the GSTC by the 14th ITGRC

S.
No.
GSTIN Legal Name
Amount of Credit
to be claimed in
TRAN-1 (in Rs.)
State
Date of
receipt@GSTN
Date of
receipt@Nodal
Officer
1. 18AABCS9450Q1ZL
Sunrise Biscuit
Company Private Limted
Rs. 768131/- Assam 25.09.2020
13.03.2020 &
15.06.2020
2. 26AAACE3622P1ZJ Everest Holovisions Ltd. Rs. 13,98,004/-
Dadra and
Nagar
Haveli
20.10.2020 27.12.2019
3. 02ATXPS7463H1Z0 Amar Singh
SGST : Rs.
44966/-
Himachal
Pradesh
14.08.2020
Before
31.03.2020
4. 27AAFCA9533J1ZE
Addon Retails Private
Ltd.
Rs. 436375/- Maharashtra 31.03.2020 04.03.2020
5. 27AAFCM2000E1Z5 Mehta Infocomm Pvt Ltd
CGST Rs.
66,74,374/-
Maharashtra 24.09.2020
21.04.2018 &
24.08.2020
6. 27AACCA3162C1Z7
A R Thermosets Private
Limited
CGST: Rs.
20,30,468.47/-
Maharashtra 26.11.2020 14.12.2018
7. 27AAHFN2405R1ZW Nexus Polychem
CGST: Rs.
7994073/-
Maharashtra 26.11.2020 18.11.2019
8. 27AABCI4568D1ZM
Indofil Industries
Limited
CGST: Rs.
10,06,04,152/-
Maharashtra 26.11.2020 25.05.2018
9. 03AAVPM6375R1ZN Gaurav Mahajan Rs. 224794/- Punjab 14.02.2020 25.04.2018
Agenda for 43rd GSTCM Volume 3
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Vol-3











10.
36ATLPM1278L1Z5
**Received after
31.03.2020 by the
Nodal Officer / Field
formation
Soni Murahari
SGST : Rs.
3,60,980/-
Telangana 08.07.2020 May-20
11. 36AAHFT8255F1ZW T V Plastics CGST : 2,04,447/- Telangana 24.08.2020 26.05.2020
12. 36AAHFC1808R1Z3 Classic Plasto Crafts CGST : 7,27,873/- Telangana 24.08.2020 26.05.2020
13. 36AUBPT7440C1ZP Sirisha Tallada CGST : 8,07,516/- Telangana 24.08.2020 26.05.2020
14. 36AAACG7441A1Z2
Golden Streak Drugs
And Pharmaceuticals
Limited
SGST : Rs.
8,93,131/-
Telangana 04.11.2020 16.03.2020
15. 09AAJHM8433Q1ZB
Mohan Lal Agarwal
(Huf)
Rs. 236366/-
Uttar
Pradesh
Resubmitted on
29.10.2020.
Earlier received
on 14.02.2020
with incomplete
details
Before
14.02.2020
16. 09AAACB2250J1ZW
Banaras Marbles &
Granites Limited
CGST- Rs.
1393331.50/-
SGST- Rs.
1393331.50/-
Uttar
Pradesh
Resubmitted on
29.10.2020.
Earlier received
on 05.03.2020
with incomplete
details
Before
05.03.2020
Agenda for 43rd GSTCM Volume 3
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Annexure C
Cases forwarded by nodal officers and pending with GSTN

S.No GSTIN LegalName State
Date of
receipt@GS
TN
Date of
receipt@Nodal
Officer
1.
36AAGCA1556JIZ
N
Anu Advance
Composite
Products Private
Limited
Telangana 19.01.2021 07.02.2019
2. 09ACVPK6803AIZJ Rajeev Kumar
Uttar
Pradesh
19.01.2021 19.02.2020
3.
24AAACK8850DIZ
Q
Kevin process
Technologies Pvt
ltd
Gujarat 25.02.2021 06.12.2019
4. 37AAACL2937JIZD
Lifestyle
International
private limited
Andhra
Pradesh
20.04.2021 02.07.2020

Agenda for 43rd GSTCM Volume 3
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Agenda Item 16– Review of revenue position under Goods and Services Tax
1. The GST revenues have seen a positive trend in last few months and reached ₹ 1.4 lakh crore
by April 2021. The Figure below shows the trend and the table 1 shows the details of the collection in
last few months.
Figure 1: Monthly gross GST collection (in ₹ lakh crore) from October ’20 to April ’21
1.05 1.05
1.15
1.20
1.13
1.24
1.40
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Oct Nov Dec Jan Feb Mar Apr


Table 1: Monthly gross GST collection from October ’20 to April ’21
(₹ crore)
MONTH Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21
CGST 19,193 19,189 21,365 21,932 21,092 22,973 27,837
SGST 25,411 25,540 27,804 29,025 27,273 29,329 35,621
IGST 52,540 51,992 57,426 60,293 55,253 62,842 66,878
Domestic 29,165 29,913 30,375 32,869 30,871 31,745 38,882
Imports 23,375 22,078 27,050 27,424 24,382 31,097 27,996
Comp Cess 8,011 8,242 8,579 8,626 9,525 8,757 9,372
Domestic 7,079 7,432 7,608 7,739 8,865 7,822 8,464
Imports 932 809 971 886 660 935 908
Total 1,05,155 1,04,963 1,15,174 1,19,875 1,13,143 1,23,902 1,39,708



Agenda for 43rd GSTCM Volume 3
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2. Table 2 shows the IGST collected, refunded and settled/apportioned during the FY (2020-21).
Table 2: IGST Collection/Settlement/Apportionment/Refund in FY2020-21*
(Figures in Rs. Crore)
1. Collections (+) 5,65,719
2. Recovery from IGST Ad-hoc apportionment (+) 0
3. Refunds (-) 83,800
4. Settlement (-) 4,07,485
i. CGST 2,27,601
ii. SGST 1,79,884
5. Ad-hoc Settlement 76,000
i. CGST ad hoc 38,000
ii. SGST ad hoc 38,000
6. Net (1+2-3-4-5) -1,565
*These figures are provisional and subject to final accounts
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 April 2021 and the compensation
released are shown in the table below:
Table 3: Compensation Cess collected and compensation released
(Figures in Rs. Crore)
2017-18 2018-19 2019-20 2020-21 2021-22#
Opening Balance 21,466 47,272 55,737 3,940
Compensation
Cess collected (Net)
62,612 95,081 95,551 85,191 9,100
Compensation released 41,146 69,275 1,20,498 1,36,988
Balance 21,466 47,272 55,737* 3940 13,040
* Centre had transferred Rs. 33,412 crore from CFI to Compensation Cess Fund as part of an
exercise to apportion balance IGST pertaining to FY 2017-18
# till 30.04.2021
Agenda for 43rd GSTCM Volume 3
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Gap with respect to base Revenue
4. The State-wise details of gap between the protected revenue and the post settlement gross
SGST revenue (including ad-hoc settlement) for FY 2020-21 as compared to FY 2019-20 may be seen
in the Table 4. This information is also depicted in the graph placed at Figure 2.
Table 4: Revenue Gap
GST REVENUE SHORTFALL 2019-20 2020-21
1 Andhra Pradesh 13.2 28.2
2 Arunachal Pradesh -85.6 -75.7
3 Assam 13.3 25.2
4 Bihar 25.8 33.5
5 Chhattisgarh 36.2 43.1
6 Delhi 29.9 48.7
7 Goa 32.6 53.2
8 Gujarat 26.3 39.8
9 Haryana 24.3 33.4
10 Himachal Pradesh 40.8 47.9
11 Jammu and Kashmir 40.8 46.7
12 Jharkhand 22.2 35.2
13 Karnataka 28.5 40.1
14 Kerala 29.3 40.5
15 Madhya Pradesh 25.1 36.4
16 Maharashtra 16.4 34.2
17 Manipur -45.5 -29.7
18 Meghalaya 15.3 32.1
19 Mizoram -66.8 -49.4
20 Nagaland -41.6 -34.5
21 Odisha 27.9 35.0
22 Puducherry 57.4 63.3
23 Punjab 47.4 56.1
24 Rajasthan 23.0 34.5
25 Sikkim -16.2 7.7
26 Tamil Nadu 17.8 33.9
27 Telangana 11.5 23.1
28 Tripura 22.9 30.3
29 Uttar Pradesh 15.3 30.8
30 Uttarakhand 40.3 50.6
31 West Bengal 18.4 32.3
All India 23.0 36.3
Agenda for 43rd GSTCM Volume 3
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Figure 2: Revenue Gap comparison
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-80.0
-60.0
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Agenda for 43rd GSTCM Volume 3
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Agenda for 43rd GSTCM Volume 3
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Trends in Return filing
5. The table 4 shows the trend in return filing in FORM GSTR-3B till due date and till date for
return periods upto March, 2021. Table 5 and 6 show the State wise filing for these months.
Table 5: Return filing (GSTR-3B) till due date and till date
Return Period Till due date Till 18th May, 2021
Filed % Filed %
Sep-20 71,17,796 65.60 97,15,019 89.53
Oct-20 72,64,970 66.22 97,94,646 89.27
Nov-20 77,81,761 70.68 98,65,082 89.60
Dec-20 82,35,446 74.98 99,17,413 90.29
Jan-21 37,95,899 60.61 52,91,791 84.50
Feb-21 41,60,872 67.80 52,63,336 85.77
Mar-21 71,71,924 66.53 87,97,900 81.62

Figure 3: GSTR-3B Filing till due date and till 18th May’2021

Agenda for 43rd GSTCM Volume 3
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Table 6: State-wise Return filing (GSTR-3B) till due date (Sep’20-Mar’21)
STATE Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Jammu and Kashmir 65% 68% 74% 78% 61% 70% 72%
Himachal Pradesh 73% 74% 77% 78% 60% 68% 73%
Punjab 75% 77% 79% 81% 66% 72% 77%
Chandigarh 73% 75% 79% 82% 70% 77% 77%
Uttarakhand 67% 68% 73% 76% 56% 64% 68%
Haryana 67% 69% 72% 75% 58% 66% 70%
Delhi 62% 64% 68% 74% 54% 63% 65%
Rajasthan 72% 73% 77% 80% 60% 69% 66%
Uttar Pradesh 70% 71% 75% 78% 62% 72% 68%
Bihar 62% 58% 65% 70% 49% 59% 60%
Sikkim 58% 55% 61% 64% 47% 56% 59%
Arunachal Pradesh 40% 42% 44% 48% 33% 37% 42%
Nagaland 49% 49% 53% 56% 48% 54% 50%
Manipur 33% 35% 40% 46% 35% 42% 42%
Mizoram 46% 48% 51% 56% 42% 52% 56%
Tripura 65% 67% 68% 70% 52% 60% 63%
Meghalaya 58% 58% 60% 63% 45% 50% 62%
Assam 53% 55% 58% 61% 44% 53% 52%
West Bengal 66% 68% 70% 73% 51% 59% 68%
Jharkhand 66% 64% 71% 75% 60% 69% 64%
Odisha 68% 69% 72% 75% 53% 65% 67%
Chhattisgarh 56% 56% 61% 69% 52% 59% 40%
Madhya Pradesh 68% 67% 73% 79% 62% 69% 53%
Gujrat 74% 70% 78% 82% 70% 76% 75%
Daman and Diu 0% 0% 0% 0% 0% 0% 0%
Dadra and Nagar Haveli 58% 59% 63% 70% 61% 65% 63%
Maharashtra 61% 62% 67% 73% 56% 64% 63%
Karnataka 66% 67% 71% 76% 67% 72% 71%
Goa 52% 53% 55% 61% 45% 51% 57%
Lakshadweep 39% 42% 45% 49% 40% 47% 46%
Kerala 57% 62% 66% 70% 61% 67% 62%
Tamil Nadu 66% 67% 72% 76% 72% 76% 72%
Puducherry 62% 63% 67% 72% 67% 69% 67%
Andaman and Nicobar Island 40% 43% 47% 56% 47% 50% 51%
Telangana 53% 54% 58% 63% 56% 60% 59%
Andhra Pradesh 60% 64% 66% 69% 63% 68% 63%
Ladakh 56% 62% 68% 73% 54% 64% 72%
Other Territory 67% 73% 68% 73% 69% 75% 67%
All India 66% 66% 71% 75% 61% 68% 67%


Agenda for 43rd GSTCM Volume 3
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Table 7: State-wise Return filing (GSTR-3B) till 18th May, 2021
STATE Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Jammu and Kashmir 91% 91% 93% 95% 90% 92% 88%
Himachal Pradesh 93% 92% 93% 93% 85% 86% 87%
Punjab 93% 93% 93% 93% 87% 88% 90%
Chandigarh 95% 95% 96% 96% 94% 95% 91%
Uttarakhand 89% 89% 90% 91% 83% 85% 81%
Haryana 90% 90% 90% 90% 84% 85% 84%
Delhi 86% 85% 85% 87% 80% 82% 78%
Rajasthan 93% 93% 93% 93% 87% 88% 82%
Uttar Pradesh 90% 90% 91% 92% 86% 89% 83%
Bihar 85% 84% 84% 84% 73% 75% 73%
Sikkim 84% 83% 82% 82% 72% 74% 75%
Arunachal Pradesh 71% 70% 70% 69% 57% 57% 57%
Nagaland 81% 80% 80% 80% 75% 74% 69%
Manipur 68% 67% 68% 68% 61% 61% 57%
Mizoram 73% 72% 72% 74% 68% 71% 69%
Tripura 85% 84% 84% 85% 76% 76% 79%
Meghalaya 79% 78% 78% 78% 66% 65% 72%
Assam 82% 81% 81% 81% 72% 75% 70%
West Bengal 87% 87% 87% 87% 75% 76% 81%
Jharkhand 90% 90% 90% 91% 86% 87% 79%
Odisha 90% 90% 90% 91% 82% 86% 83%
Chhattisgarh 91% 90% 90% 90% 83% 82% 58%
Madhya Pradesh 94% 94% 94% 95% 89% 90% 72%
Gujrat 95% 94% 94% 95% 91% 92% 89%
Daman and Diu 0% 0% 0% 0% 0% 0% 0%
Dadra and Nagar Haveli 90% 89% 89% 89% 85% 84% 82%
Maharashtra 90% 90% 90% 91% 85% 86% 80%
Karnataka 90% 90% 91% 91% 89% 88% 84%
Goa 80% 79% 79% 79% 68% 69% 71%
Lakshadweep 65% 64% 65% 68% 60% 61% 59%
Kerala 89% 89% 89% 89% 86% 87% 82%
Tamil Nadu 89% 90% 90% 92% 90% 91% 88%
Puducherry 88% 88% 88% 89% 88% 87% 83%
Andaman and Nicobar Island 86% 85% 84% 84% 77% 75% 69%
Telangana 82% 81% 82% 82% 78% 79% 76%
Andhra Pradesh 87% 87% 87% 88% 84% 85% 81%
Ladakh 91% 90% 90% 90% 81% 86% 87%
Other Territory 80% 80% 79% 80% 81% 83% 75%
All India 90% 89% 90% 90% 85% 86% 82%


Agenda for 43rd GSTCM Volume 3
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Agenda Item 17– Issues related to GST Compensation Cess
1. As per Section 7 of the GST (Compensation to States) Act, 2017, the States are required to be
compensated for loss of revenue due to implementation of GST (w.e.f. 01.07.2017) for 5 years’
period. For the purpose of paying such compensation to States, as per section 8 of the GST
(Compensation to States) Act, 2017, there is provision for levy of cess on certain luxury items and
demerit goods and this cess collected is to be credited into a Public Account known as GST
Compensation Fund. The bi-monthly payment of GST Compensation to States is released from
Compensation Fund during the transient period.
2. As per Section 10 (2) of this Act, all amounts payable to the States under Section 7 shall be
paid out of the GST Compensation Fund. While the compensation in full could be released till March
2020, due to the impact of Covid-19 on GST revenues, the compensation requirement for 2020-21
increased and at the same time the cess collections fell down. This created a gap in the resources
available for payment of compensation to States.
3. This matter was discussed in detail in the 41st meeting of the GST Council wherein various
legal provisions and the opinion of the Ld. Attorney General were also placed before the Council.
4. The provision for compensation for loss of the revenue due to implementation of GST
emanates from the section 18 of the Constitution (One Hundred and First Amendment) Act, 2016,
which states as under:
18. Parliament shall, by law, on the recommendation of
the Goods and Services Tax Council, provide for
compensation to the States for loss of revenue arising
on account of implementation of the goods and services
tax for a period of five years.
5. Accordingly, Goods and Services Tax (Compensation to States) Act, 2017 was legislated
which provides for payment of compensation to States on account of loss owing to the loss of revenue
due to implementation of the GST. The law provides for a formula for calculation of the
compensation amount, a compensation fund from which the compensation shall be paid and a
compensation cess levied for the purpose of payment of compensation. In this context, sub-sections
(1) and (2) state as under:
10. Crediting proceeds of cess to Fund. —
(1) The proceeds of the cess leviable under section 8
and such other amounts as may be recommended by the
Council, shall be credited to a non-lapsable Fund known
as the Goods and Services Tax Compensation Fund, which
shall form part of the public account of India and shall
be utilised for purposes specified in the said section.
(2) All amounts payable to the States under section 7
shall be paid out of the Fund.
6 Thus, it was pointed out that the compensation to States can only be paid from the
Compensation Fund and not from any other source. The compensation fund shall be credited with the
compensation cess.
7. This matter was referred to the Ld. Attorney General of India for his opinion. On the issue of
Central Government’s liability to release compensation from Consolidated Fund of India over and
Agenda for 43rd GSTCM Volume 3
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Vol-3
above the amount of Cess collected, Ld. AG opined that “There is no express provision
in the Compensation Act for the Government of India to bear the
liability of making good the shortfall. It is the GST Council which
has to decide on making good the shortfall in the GST Compensation
Fund, by providing for sufficient amounts to be credited to it.”
8. On the issue of borrowings on the strength of future receipts from the compensation cess, Ld
AGI has opined that “The entitlement of a State to borrow is set out in
Article 293(1). The limitation on such right is found in Clause (3),
which prohibits a State from raising any loan, without the consent
of the Government of India, “if there is still outstanding any part
of a loan which has been made to the State by the Government of
India...”. Clause (2) of Article 292 authorizes Parliament to make
loans to a State, subject to any limit which may have been fixed by
law made by Parliament. It is within these parameters that a State
can borrow, even on the strength of future receipts from the
compensation fund.”
9. AG has further opined that “It would, however, be for the Central
Government to take a final decision in the matter, in exercise of
its authority under article 293(3) of the Constitution.”
10. Various options for raising resources through borrowings and their pros and cons were
analysed and on 29.08.2020, Department of Expenditure communicated the details of two options to
the States for borrowing. The details of the two options were further discussed between the Centre and
the States in a meeting between the Union Finance Secretary, Secretary (Expenditure) and the Finance
Secretaries of the States. The two options and the status of their adoption was also presented in the
42nd GST Council meeting held on 5th & 12th October 2020.
11. Eventually, after detailed consultation with States, a mechanism was evolved wherein the
Central Government decided to raise certain amounts through borrowing and pass it on to the States
on a back-to-back basis to make additional resources to States. This borrowing is to be repaid out of
the future cess receipts. For this purpose, the GST Council in its 42nd meeting approved the proposal
to extend the levy of compensation cess beyond June 2022 till the entire shortfall is covered.
12. To work out the amount for each State, a normative approach was adopted wherein the
notional revenue for 2020-21 for each State was estimated on the basis of 2019-20 revenues by
providing a 7% annual growth. The unmet gap between this amount and the protected revenue after
estimated release of compensation was taken as the amount to be borrowed and passed on to the
States. Under this calculation, it was estimated that an amount of ₹1.1 lakh crore will have to be
borrowed as shown in the table below:
Agenda for 43rd GSTCM Volume 3
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(₹ crore)
1. Protected Revenue for 2020-21 7,66,004
1a. Protected Revenue for Apr 20 - Jan 21 6,38,337
2. SGST Revenue for Apr 19 - Jan 20 4,30,147
3. Normative Revenue for Apr 20 - Jan 21 [7% above (2)] 4,60,257
4. Gap to be compensated [(1a) - (3)] 1,78,080
5. GST Compensation Cess available 68,700
6. Amount to be met through borrowings [(4) - (5)] 1,09,380
13. The details of amounts borrowed and passed on to the States on back-to-back basis during
2020-21 is shown in the Annexure-1.
14. It is estimated that while the GST revenues may see a recovery in the current financial year
2021-22, there will still be a gap between the compensation requirement and the compensation cess
available. If a view is taken to extend the same arrangement as last financial year in the current
financial year 2021-22 as well on the same principles as last year, with an annual growth of 7%, the
table below provides an estimate for the amount that would have to be borrowed and passed on to the
States on a back-to-back basis:
(₹ Crore)
1. Protected Revenue for 2020-21 7,66,004
2. Protected Revenue for 2021-22 [14% over (1)] 8,73,245
3. Feb-21 to Jan-22 protected revenue
[2 months of (1) and 10 months of (2)] 8,55,371
4. SGST for Apr-19 to Jan-20 4,30,147
5. SGST for Feb-20 to Mar-20 86,935
6. SGST for Feb-21 to Jan-22 [(4)*1.07*1.07+(5)*1.07] 5,85,496
7. Compensation payable 2,69,876
8. Cess available 1,11,608
9. Gap to be funded through borrowings 1,58,267
15. In the Budget Estimates for the year 2021-22, it has been assumed that the GST revenues will
grow at 17% over the previous year’s low base. This translates to average monthly gross GST revenue
of ₹1.1 lakh crore. Based on this assumption, it is estimated that for the period Feb-21 to Jan-22, the
gap between protected revenue and the actual revenue after release of compensation would be around
₹1.6 lakh crore, which is lower than the amount calculated in para 12 above. Similarly, if it is
assumed that the monthly gross GST revenues would be ₹ 1.15 lakh crore, the actual gap would be ₹
1.25 lakh crore. Therefore, in both the scenarios, the borrowed amount would go on to fund even a
part of the previous year’s gap.
16. The compensation cess amount collected during the year will be released in accordance with
the provisions of the GST (Compensation to States) Act 2017. The decision on the borrowing, the
exact amount and the timing would be taken based on the above principles in consultation with the
Reserve Bank of India, Department of Economic Affairs, Department of Expenditure and the States.


Agenda for 43rd GSTCM Volume 3
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Annexure-I
Details of payment of back to back loan in lieu of GST Compensation Shortfall





(Rs. in crore)

S.No Name of State/UT
Amount released under
Special borrowing scheme
in FY 2020-21
1 Andhra Pradesh 2311.00
2 Arunachal Pradesh 0.00
3 Assam 994.00
4 Bihar 3905.00
5 Chhattisgarh 3109.00
6 Goa 840.00
7 Gujarat 9222.00
8 Haryana 4352.00
9 Himachal Pradesh 1717.00
10 Jharkhand 1689.00
11 Karnataka 12407.00
12 Kerala 5766.00
13 Madhya Pradesh 4542.00
14 Maharashtra 11977.00
15 Manipur 0.00
16 Meghalaya 112.00
17 Mizoram 0.00
18 Nagaland 0.00
19 Odisha 3822.00
20 Punjab 8359.00
21 Rajasthan 4604.00
22 Sikkim 0.00
23 Tamil Nadu 6241.00
24 Telangana 2380.00
25 Tripura 226.00
26 Uttar Pradesh 6007.00
27 Uttarakhand 2316.00
28 West Bengal 4431.00
29 UT of Delhi 5865.00
30 UT of J&K 2272.00
31 UT of Puducherry 742.00
Total 110208.00
Agenda for 43rd GSTCM Volume 3


Confidential
Agenda for 43rd Meeting
of
the GST Council
Annexure to Agenda Item Nos.11.4 and 11.5
28th May 2021
Volume – 4
Agenda for 43rd GSTCM Volume 4
Agenda for 43rd GSTCM Volume 4
TABLE OF CONTENTS
Annexure Content
Page
No.
To
Agenda
Item
No.11.4
Representation dated 25-11-2020 to the GST Council by Shri Nipun
Malhotra in the case of Nipun Malhotra vs Union of India [Writ Petition
(Civil) No.725 of 2017] along with its enclosures.
To
Agenda
Item
No.11.5
Copy of Order dated 09-02-2021 of the Hon’ble High Court of Delhi in
the case of Del Small Ice Cream Manufacturers Welfare Association in
writ petition 5252/2019
1-242
243-254
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Agenda for 43rd GSTCM Volume 4
. .
(
MOST URGENT
To,
Shri S.K. Rahman,
Joint Secretary to GST Council,
Janpath Road, Connaught Place,
New Delhi-110 001
Subject: Representation to the OST Council in Nipun Malhotra vs Union of India [Writ
Petition (Civil) No. 725 of2017]
Respected Sir/Madam,
1. TI1e Undersigned has preferred a Writ Petition under Article 32 of the Constitution of
India, W .P. (C) No. 725 of 2017, praying for the setting aside of the imposition of Goods
and Services Tax (hereinafter "GST') upon accessibility equipment such as braille paper,
listening aids, prosthetic limbs, wheelchairs etc. required by persons with disabilities as
being violative of the Fundamental Rights guaranteed to them under Articles 14, 15, 19,
21 and 21 A of the Constitution. The Writ Petition is pending before the Hon'ble
Supreme Court oflndia and is tentatively listed for hearing in March, 2021.
2. The above-mentioned Matter was called on 26.10.2020 before a Bench comprising of
Justice D.Y. Chandrachud, Justice Indu Malhotra and Justice Indira Banerjee. The
Hon'ble Bench was pleased to implead the GST Council as a necessary party in the
present case. The Court further directed the Petitioners to file a representation to the
GST Council seeking the abolishment of the levy of 5% GST on the abovementioned
disability aids and equipment. Therefore, this Representation Letter is being
preferred by the Petitioners.
3. The levy of 5% GST on the Disability aids and equipment is incorrectly stated as
"beneficial" for the end disabled user by the Respondent No. I i.e. the Union of India.
This argument vests on the false and misleading assumption that the levy of 5% GST
allows .for the reduction of cost of these products for the end disabled-user in domestic
markets as the manufacturers are able to claim Input Tax Credit (hereinafter ''ITC") on
the inputs (i.e. the raw materials) used to manufacture these products. This 'benefit' is
wrongly referenced to a "zero-tax regime". This so because the benefit accrued from such
an ITC accrues only to the manufacturer and not to the disabled consumer.
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4. The levy of 5% GST on disability aids and equipment violates the fundamental rights of
the persons with disability as envisaged under Articles 14, 15, 19, 21 and 21 A of the
Constitution. The Hon'ble Supreme Court has in the cases of Jindal Stainless Steel v.
State of Haryana [(2017) 12 SCC 1 ], Aashirwad Films v Union of India [(2007) 6
SCC 624] and Indian Express Newspapers v. Union of India [(1985) 1 SCC 641] held
that the levy of taxes Which violate the fundamental rights of a class of persons to be
unconstitutional.
5. Therefore, in light of the abovementioned facts and the Order dt. 26.10.2020 by the
Hon'ble Supreme Court, this Representation is served upon the GST Council.
Enclosed:
1. Order dt. 26.10.2020 by the Hon'ble Supreme Court
2. WP (C) No. 725 of2017 filed by the Petitioner
3. Counter Affidavit by the Respondent No. I
Regards,
'N ,r-=
Nipun Malhotra
Petitioner
B-28, Noida Sector-51,
Noida
(M): +91 98719 53332
(E): nipun@nipunmalhotra.com
4. Interlocutory Application No. 108032/2020 seeking directions for issuance of Notice to
GSTCouncil
Page 2 of 2
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INDEX OF ENCLOSURES
s. Enclosnre
No.
1. Order dt. 26.10.2020 by the f(on'ble
Supreme Court
2. WP (C) No. 725 of2017 filed by the
Petitioner
3. Counter Affidavit by the Respondent No. I
4. Interlocutory Application No.
108032/2020 seeking directions for
issuance of Notice to OST Council
Pg. No.
' ': '
•(' I /; 1 ' '
., . , ', ·' :.1
\, __ ,
- / i ' "'j' _, ,,.". , i \
'
'
.
,:I.
'
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WP(C) 725/2017
1
ITEM N0.19 Court 6 (Video Conferencing) SECTION PIL-W
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Writ Petition (Civil) No.725/2817
NIPUN MALHOTRA Petitioner(s)
VERSUS
UNION OF INDIA Respondent(s)
(With appln.(s) for IA Nos.41354/2818 & 76693/2017 • STAY)
Date : 26-10-2828 These matters were called on for hearing today.
CORAM :
HON'BLE DR. JUSTICE D.Y. CHANDRACHUD
HON'BLE MS. JUSTICE INDU MALHOTRA
HON'BLE MS. JUSTICE INDIRA BANERJEE
For Petitioner(s) Mr. Pinaki Misra, Sr. Adv.
Mr, Jai Dehadrai, Adv.
Mr. Sidharth Arora, Adv.
Mr. Sameer Shrivastava, AOR
For Respondent(s) Mr. K.K. Venugopal, AG
Mr. Sanjay Jain, ASG
Ms. Nisha Bagchi, Adv.
Mr. zoheb Hussain, .Adv.
Ms. Vishaka, Adv •.
Mr-. B. Krishna Prasad, AOR
UPON hearing the counsel the Court made the following
0 R D E R
1 The application for intervention on behalf of Ms Manasi Joshi is allowed.
2 The application for impleading the GST Council is allowed. The,
amendment be carried out within a period of two weeks. Not.ice shall issue
to the newly lmpleaded respondent.
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(
WP(C) 72512017
3 Mr K K Venugopal, Attorney General for India has, in pursuance of the
previous hearing, assisted the Court. The Learned Attorney General states
that after a detailed discussion with the Secretary - Revenue, it-has been
found that it may not be possible to accede to the request of the
petitioners that an exemption from tax be granted on 'mobility devices'.
because of the policy implications. However, he submitted that the
petitioner may move a repres_entation before the GST Council.
4 Mr Plnaki Misra, learned senior counsel appearing on behalf of the
petitioner states that he would wish to press the petition. However, he
submitted that since the petition under Article 32 of the Constitution has
been Instituted in the public Interest to safeguard the interests of a large
number of similarly situated disabled persons, who have to suffer a tax on
mobility devices·, at this stage he would move a representation with the
GST Council.
5 The Attorney General states that there could be no objection to the
petitioner pursuing a representation.
6 The counter affidavit(s) be filed within two months.
7 List the Writ Petition for final disposal, In March 2021.
(Chetan Kumar)
A.R.-cum-P,S.
(Saroj Kumari Gaur)
Court Master
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0
l 'ffleStiFRdi'JECOURTOFINDRA,·
CML ORIGIIIIAI. JU.RlsDICTIO!)J WRIT PETi'l10ff 1-{C!Vli} N0.11::[_of 2017
IN THE MATTER OF:
Nlpun Malholrll
VorstJs
Union ol lndli
PAPERBOOK
(FOR INDEX PLEASE see INSIDE)·
•••. Petitioner
flt · .{,, b.---, II · , · ! 'I- - I "' G l f i.,.,,. ,;t M<,,.t,· ..,_.PJ· =!:l-+\f•!:l'l-• ..-..t-J :l/,oi'I-. @.1 .... . '2.6'1- -B ·•0•· .
, Pt• l --, ?,o.,. • . wJ:Lrh MAMA·v1r-r
.,,.... .... ,.;.t., j t..al!-1'-!'-r ..•. ·• . ·.
f]• II :.i I IQ·;;; WIJ,. . ft· U• "--'.i.;Wlt
Pf• ;? . r --:( > ·, ,._. A>I\M. 1_'> j
t1• 31 - ... WI" . · -..
ADVOCATE FOR THE pe7·.,' \ER: MANISHA /IMBIIVANI
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)
...
iJf2 Parlicufara of Document
.
(I) (It}
Oourtfees. .
1 .. Littlng; Proforma
- I! . . ·eo.ver Page of Paper
Boole.
a lnctex of Record of
Proceedings
..... 4 Defect 'st
5,. Note Sheet
e. Synopsis and Ust of
7. Writ Petitlon wlth
Affidavit
Ii(• . \
8. Annexure P-1
Copy of letter dated
1s.oe:20r1. to Which no
. tiff date has been
received- from the
Respondents. .
.,.. Qfpmtof ,.
whfcll.lt
patt·1
(Oonlenls of
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atone)
(lv) -
Rs.5301-
A3
M
.
Afr/JS
Ns1 ••.•
. .

. '
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, (
SIii,,, appror.,ed
Heading/ bythe by the.
Tariff GST GST
item Council Council
69: 482390 Braiae paper, braille
11, 8472, typewrim. braiUe
910-1, watches. hearing aid& . 5%
9102. and other appliances 9021 to compensate for a
defector disability
(These goods are
covered In List 32
appended to
notification
No.12/2012'-Custom&,
dated 17.03.2012 and '-,
are already at 59/4 GST
rate lChanter 9011 -
256 90orany Parts of the following
other goods, namely:- ' .
chapter (i} Crutches;
(Ii) Wheel_ chairs; .. 5%
_ Ii) Walking frames;
(iv) Tricycles;
(v) Braillera; and
_ (VO. Artificial Ombs
243 8713 Carriages for disabled
persons; whether or
not motorised
orotherwise .. 'IS.%
mechanfcallv oronelled
165 - 8703 Motor cars and other
motor vehicles
princlpaJly designed -
for the transport of
persons (other than .. - 28%
those of heading
_ 8702}, including
station wagons ·and ,-
racing cars fother than
cars for physically -
handicaMed narsonsl
400 8-700, Cars for physically
handicapped persons,
subject to the
following cooditions:
a) an officer not below
the rank of Deputy -
· -1a%Secretary to the ...
Govemment of India
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..
·- , ... """'''- L,........,.... ••
lnthe of
Heavylndustnes
certifieS that 1he Saki
goods ar& capable of·
being used by the
physicalij
· handicapped persons;and
b) the bUyer of the car
gives. an affidavil that
he shall not dispose of
the car for a period of
five years aner Its
p!J'Chase.
Tha from the aforesaid table. it Is absolutely clear that .
the Impugned tax provisions· Impose an unjustifiable
financial burden upon a class of citizens, which is
arbitrary and patently unjust The same would amount to
a tax on the 'free movement' or 'hedom to learn' of a
disabled citizen and Is therefore ultra vires the
Constitutional scheme-. Annexure P 6 - Notification No.
112017.dated 28.06.2017 is annexed herewith.
PROHIBmON AGAINST DISCRIM_JNATION BY THE
STATE OF PERSO S. WITH DISABILfTIES
GUARANTEED U/A 15 OF .TH,:: CONSTITUTION
E. That, whlle Article_" ·15 o_f the ConslltuUon of lndfa
specifically prohibits. dlscriinlnatlon on the basis of
religion, race, caste, sex or place of birth. It also
creates an implied duty upon the state not to
. '
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l
I ;
(
an, dlizoo with an unreesctl8ble burdeR-.
especially in the nature _of a flnanc:Jal levy or
penalty which dlstriminates. between oibe on
gro. which are arbitrary -and unjust · The
Impugned w regime permits an unreasonable
dlfferentia Which Is sought to be carved out
between citizens who are .able bodied and those
who are disabled. This 'discrimination' pertains
specifically to the performance of basic activities. · · ·
such as •movem_ent' (for. those with locomotor
disabilities} and 'reading' or 'learning' (for the
blind}. Therefore, the Imposition of any tax,
whatsoever be its rate, on a wheelchair used by a
permanenuy disabled persQO, for instance, has the
effect of creating a Slate--sponsored financial
' '
barrier/penalty on a lsabled person wanting to
attain parity With another citizen who can 'move' or
'read' without the use of any external aids. It is in
· this regard that even a 0.01% (zero_ point zero one
percent) tax Imposed on an essen al mobUity lte,n
such as braille paper or wheelchairs would be
totally discrlminatOJY and· thus fundamentally
Wl ir. It is also submitted, that the Petitioner afl(J
others like him, possess a constitutionally
ingrained- Fundamental Right under Artk:le 19 (1}
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(
(
AN.ey.Wt. .. P:..t
- 61
rro BE PUB1,ISHFD IN PART n. SECJlON SllB-SEC1lON (i) OF nm GA.ZID'1E
. OF INDIA, BXIRAORDINARY]
GOVERNMENT.OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
..... : ... .Notlficatlon No.t/20J7 1ntegrated Tax (Rate)
New DcJh the 28th Ione, 2017
G.S.R. (B).m In exercise of the powers conferred by .sub--section (I). of section S of the
Integrated Goods and Services Tax Act, 2017 (J3 of 2017). the Central Govemment. on-the
recom tions of the Councl hereby notifies the rate of the, integrated tax ·of..
(i). S per cent. in respect of goods specified in Schedule I. ·
(ii) 12 per cenL in respect of goods spedfied in Schedule n,
(iii} 13 per cent. in respect of goods specified 1n Schedule III,
(iv) 28 per cent. in respect of goods specified in Schedule IV. _
(v) 3 per cent in respect of goods specified in Schedu1e V, and
(vi) 0.25 pe, cent. in respect of goods specified in Schedule VJ
appended to this. notification (hereinafter refurred to as the said Schedules), that shall be
· levied on inter-State. supplies of goods. the description of which is specified in· the
conesponding entry in column (3) of the said Schedules, falling under the tariff item, sub,.
beading. heading or Chapter, as the case may be, as specified in the corresponding entry· in
column (2) of the said Sdledules.
Sehedule I- 5%
s. Chapter/ Description o1 Geods
No. lleadJng/
Sub-heading/
Tariff' Item ,n (2\ 13\
1. '0303 Fish, frozen, exchufing fish fillets and other fish m of heading
0304 '
2. 0304 Fish fiJlets and other fish meat (whether or not minced). frozen
3. 030S Fish, dried, salted or in brine; smoked fish, whether or not cooked.
before or during lhe smoking process; flours, meals and pellets of
fish. flt for human consumntion
4. 0306 Crustaceans, whether in shell • or not, frozen, dri salted or in
brine; crustaceans, in shell, by steaming or by bolling in
water. frozen. dried, salted: or fn iine; flours, meals and pellets of
crustaceans. fit for human conswnDtlon :
5. 0307 Molluscs, whether in shell or_-not, frozen, dried, salted or.in brine;
aquadc invertebrales other than crustaceans and molluscs frozen,
dri salted or in brine; flours. meals and pellets ·of aquatic· ·
_ in\fertebra other than crustaceans. fit for human consumntion
6. 0308 Aquatic invertebrates other than crustaceans and molluscs, fiozen.
dried, salted or In brine: smoked aquatic invertebnrte& other than
crustaceans and molluscs. whether. or not cooked before or during
1
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s.. Cliapterl
No. Beadiag/
Sab-lleading /
Tarifl'item ,n 12\
[Except 2S 15
12 10. 2515 12 20,251s.12
901
124. 2516[Except 2516
11 00. 251612
125. 25161100
126. 2517
-(
127.· 2518
12_8. 2519
129. 2520
) 130-. 2521
13-l. 2S22
132. 2524
( 133:. 2S2S
,)34. . 2526
..
13S. 2528
-136. 2529
137. 2530
138. 26 [other than
261 2620,
Desedpdu. of.Goods
'
m
alabaster [caber than marble and travertine}
.. . .... , .. , .....
Porphyry, basalt. e and !)lher monumental or building ·
sto · whether or not roughly trimmed or meiely cut, by sawing. or otherwise, into blocks or slabs of a rectangular (inoblding-square)
mane. ' .
Orantte crude or rouahlv trimmed
Pebbb_ gravel, broken or crushed stone. of a kind commonly used
for concrete aggregates. for road metaJJing, or fur railway or other
ballast. shingle aod flint. whether or not heat treated; macadam of
slag, dross or-similar industrlal waste, whether or not incorporating
the materials cited in tho· fU'St part of the heading; tarred macadam;
grenules. cheeping and powder of stones heading 2515 or 2516
whether or not heat treated.
Dolomite-. whether or not calcined or sintered, including dolomite .
roughly trimmed or· merely cut, by sawing or otherwise, into blocks
or slabs of a reetangular (including square) shape; dolomite .
m m _ · ·
2518 1 O dolomite. Not calcJned or sintered
Natural magnesium carbonate (magnesite); fused magnesia; dead,.
burned (sintered) magnesia, whether or not containing small
quantities of other oxides. added, before sintering; other magnesium
oxide. whether or not oure.
G)psum; anhydrite; plasters (COIISlstfng of calcined gypsum or
. calcium sulphate) whether or not coloured, with or without small
. .
ouantities of accelerators or retarders.
Limestone flux; limestone anct· other calcareous stone, of a kind
used for die manufacture of lime or cement Qukiklimo, slaked lime and hydraulic lime, other than calcium
oxide and bvdroxlde of beading 2825-.
Asbestos
Mica. including solittinR! mica waste.· ' •
Natural steatlto. whether or not roughly trimmed or merely cut. by
sawing or otherwise, into bJocks or slabs of a rectangular (including
i:auarcl llhane! tale. · . .-
Natural borates and concentrates thereof (whether or not calcined).
but not including borates separated from natural brine; ri bode
acid containin2. not more than 85% ofH3BO3
Feldsnar. leucfte. neDhelinc and nenheJine svenltc: " , .. R - .;;.;,
Mineral substances not elsewhere mecitied or Included •.
All area and COJtccntrates · [other than slag dross (other than
eranulated slae:'lo. scallnas and other waste ftom the manufacture of
a
CA
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W.P.(C) 5252/2019 Page 1 of 8
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 9
th
February, 2021.
+ W.P.(C) 5252/2019, CM No.23189/2019 (for stay) & CM
No.1712/2021 (for urgent listing of the case)
DEL SMALL ICE CREAM MANUFACTURERS
WELFARE’S ASSOCIATION (REG.) ..... Petitioner
Through: Mr. Sujit Ghosh & Mr. Mohit
Kapoor, Advs.
Versus
UNION OF INDIA & ANR. ..... Respondents
Through: Mr. Vivek Goyal, Adv. for R-1.
Ms. Sonu Bhatnagar, Adv. for R-2.
CORAM:
HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
HON'BLE MR. JUSTICE SANJEEV NARULA
[VIA VIDEO CONFERENCING]
RAJIV SAHAI ENDLAW, J.
1. The petitioner, claiming to represent the interest of more than 50
small scale ice cream manufacturing units operating in the National Capital
Territory of Delhi, has filed this petition impugning the decision dated 18
th
June, 2017 of the Goods and Services Tax Council (GST Council), in
exercise of powers under Section 10(2)(e) of the Central Goods & Services
Tax Act, 2017, of exclusion of ice cream from the benefits of Composition
Scheme under Section 10 of the Act. It is the contention of the petitioner
that the said exclusion is in violation of the spirit of Articles 14 and 19 of
the Constitution of India and against the principles of natural justice.
2. The petition was entertained and notice thereof issued.
3. The counsel for the respondent no.2 GST Council states that she has
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filed a counter affidavit yesterday only. The same has not come on record.
4. Considering the issue and its urgency, since the season of optimum
sale of ice cream is on the anvil, we have asked the counsel for the
petitioner, whether he desires to file any rejoinder to the counter affidavit.
The counsel for the petitioner replies in the negative. We have next
enquired from the counsel for the respondent no.2 GST Council, whether
she is in a position to argue the petition today itself. She replies in the
affirmative. The counsel for the petitioner however states that in the prayer
paragraph of the petition, a inadvertent mistake has occurred and which
requires amendment/correction. It is stated that challenge is being made to
the minutes of the Sixteenth meeting of the GST Council also and which
remained to be made. The counsel for the respondents, on enquiry fairly
states that she is not taking any technical pleas and the mistake may be
ignored. We have thus proceeded to hear the counsels.
5. Section 10(1) of the Act, notwithstanding anything to the contrary
contained in the Act, provides that a registered person whose aggregate
turnover in the preceding financial year did not exceed Rs.50,00,000/- may
opt to pay, in lieu of the tax payable by him under Section 9(1) of the Act,
an amount of tax calculated at such rate as may be prescribed but not
exceeding the maximum laid down in the said provision. The first proviso
to Section 10(1) of the Act empowers the Government to, by notification,
increase the limit of Rs.50,00,000/- to such higher amount not exceeding
Rs.1,50,00,000/-, as may be recommended by the GST Council. Section
10(2)(e) of the Act however empowers the Government to, on the
recommendation of the GST Council, notify goods manufacturers whereof
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though eligible for availing the benefit of Section 10(1), would cease to be
eligible to such benefit.
6. The counsel for the petitioner informs that the limit aforesaid of
Rs.50,00,000/- was successively increased to Rs.75,00,000/- and
Rs.1,50,00,000/-. It is further informed that the respondent no.2 GST
Council, in its Seventeenth Meeting held on 18
th
June, 2017, in exercise of
powers under Section 10(2)(e) of the Act, has recommended notification of
ice cream and in pursuance to the said recommendation, ice cream has been
notified, resulting in the small manufacturers of ice cream having turnover
of less than Rs.1,50,00,000/- per annum being not entitled to take the
benefit of Section 10(1) of the Act and have to necessarily go under the
regime of Section 9 of the Act and to comply with all the requirements.
7. The counsel for the respondent no.2 GST Council states that another
petition pertaining to ice cream, claiming the same relief as in this petition,
is coming up for consideration on 5
th
March, 2021; the counsel for the
petitioner further informs that since the issue raised in the petition is pan
India, similar petitions are pending in several High Courts.
8. On enquiry it is informed that there is no decision of any High Court
on the subject as yet.
9. In the circumstances, need is not felt to keep the petition pending and
what is decided today, can apply to the writ petition stated to be listed next
on 5
th
March, 2021.
10. The contention of the counsel for the petitioner is that respondent
no.2 GST Council, in exercise of powers under Section 10(2)(e) of the Act,
has clubbed ice cream with pan masala and tobacco. The counsel for the
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petitioner has contended that there is no reason for clubbing ice cream with
sin goods like pan masala and tobacco. It is contended that pan masala and
tobacco are sin goods and ice cream cannot be clubbed therewith. On
enquiry, as to the reasons if any given by the respondent no.2 GST Council
in its meeting, for excluding ice cream from benefit of Section 10(1) of the
Act, the counsel for the petitioner contends that the reason which prevailed
for excluding ice cream was that there is no Goods and Services Tax (GST)
on milk, being a large constituent of ice cream and if small manufacturers
of ice cream were to be given benefit of Section 10(1) of the Act, there
would be large scale loss of revenue.
11. It is the argument of the counsel for the petitioner that ice cream
comprises of a large number of other components which are assessable to
GST and thus the reasoning emanating from the minutes of the impugned
meeting of the respondent no.2 GST Council for excluding ice cream from
the benefit of Section 10(1) of the Act, is fallacious.
12. A reading of Section 10(2)(e) of the Act shows that no parameters,
whatsoever, on the anvil of which, the respondent no.2 GST Council may
recommend for notification, any goods from the benefit of Section 10(1) of
the Act, have been prescribed. The legislature has vested the Government
with absolute discretion, to exempt whichsoever goods it may deem
necessary, from the benefit of Section 10(1) of the Act. The only limitation
placed on the Government is, to act on the recommendation of the GST
Council, established under Article 279A of the Constitution of India. The
said GST Council comprises of Union Finance Minister, Union Minister of
State in charge of Revenue or Finance and the Minister in charge of
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Finance or Taxation or any other Minister nominated by each State
Government. It will thus be seen that the GST Council is a high powered
constitutional entity. We have thus enquired from the counsel for the
petitioner, whether not it is a pure executive power and once the legislature
has conferred such a power on the respondent no.2 GST Council, whether
the Court can substitute its own decision/opinion, for that of the respondent
no.2 GST Council which has a representation not only from the Central
Government but also from the State Governments.
13. Recently in Rajeev Suri Vs. Delhi Development Authority
MANU/SE/0001/2021 Supreme Court has reiterated that courts do not sit in
appeal over the decisions of the Government, to do merit review of the
subjective decision as such and that Government decisions concerning
public resources have an intricate economic value attached with them and
to elevate the standard of review on the basis of subjective understanding of
the subject matter being extraordinary, would be de hors the review
jurisdiction. It was further reiterated that the courts, in the exercise of their
jurisdiction, will not transgress into the field of policy decision, as long as
no law is violated and people’s fundamental right are not transgressed upon
and that the court cannot strike down a policy decision taken by the
Government merely because it feels that another decision would have been
fairer or more scientific or logical or wiser; the wisdom and advisability of
the policies are ordinarily not amenable to judicial review. Much earlier, in
S.K. Dutta, Income Tax Officer Vs. Lawrence Singh Ingty (1968) 2 SCR
165 reiterated in Ravi Agrawal Vs. Union of India (2019) 18 SCC 180 it
was held that in deciding whether a taxation law is discriminatory or not it
is necessary to bear in mind that the State has a wide discretion in selecting
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persons or objects it will tax and that a statute is not open to attack on the
ground that it taxes some persons or objects and not others; it is only when
within the range of its selection, the law operates unequally, and that cannot
be justified on the basis of any valid classification, that it would be violative
of Article 14.
14. In this respect we may record the contention of the counsel for the
respondents, that besides pan masala and tobacco, aerated water has also
been excluded from the benefit of Section 10(1) of the CGST Act.
15. Else it is well settled that a State does not have to tax everything in
order to tax something and it entitled to pick and choose, if it does so
reasonably. Mention may also be made of State of Jammu & Kashmir Vs.
Trikuta Roller Flowers Mill (P) Ltd. (2018) 11 SCC 260 holding that grant
of refund on CST paid, to boost entrepreneur investment, was primarily an
executive economic policy decision, the scope of judicial scrutiny and
interference wherewith is limited to on the grounds of mala fide,
unreasonableness, arbitrariness or unfairness and that there is no legal or
indefeasible right to claim refund of CST paid. To the same effect is Ugar
Sugar Works Ltd. Vs. Delhi Administration (2001) 3 SCC 635.
16. The counsel for the respondents also in this context has referred to
Rai Ram Krishna Vs. State of Bihar AIR 1963 SC 1667, Union of India
Vs. Parmeswaran Match Works (1975) 1 SCC 305, Express Hotels Pvt.
Ltd. Vs. State of Gujarat (1989) 3 SCC 677 and Bajaj Hindustan Ltd. Vs.
Sir Shadilal Enterprises Ltd. (2011) 1 SCC 640.
17. The counsel for the respondent has also drawn our attention to the
minutes of the Sixteenth GST Council Meeting annexed with her counter
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affidavit, which has been e-mailed to us and has been perused by us.
18. However a perusal of the said minutes also shows the same reason as
emanating from the Seventeenth Meeting viz. of the taxation effect, on
benefit of Section 10(1) being permitted to be given to ice cream, being
enormous.
19. We have enquired from the counsel for the respondent no.2 GST
Council, whether any study has been done by the respondent no.2 GST
Council, of the tax effect of extending benefit of Section 10(1) to small
scale manufacturers of other similar goods and services and whether after
considering all the said goods and services, any decision has been taken to
exempt all those goods and services from the benefit of Section 10(1) of the
Act, the tax effect whereof cannot be absorbed by the State.
20. At least from the minutes of the two meetings placed before us, it
does not appear so.
21. The counsel for the respondents contends that besides the tax effect,
several other factors including socio political weigh and are taken into
consideration in taking such decisions.
22. We, in the circumstances, are of the view that the only direction
which can be issued in this petition is, to direct the respondent no.2 GST
Council to reconsider the exclusion of small scale manufactures of ice
cream from the benefit of Section 10(1) of the Act, including on the
aforesaid two parameters i.e. the components used in the ice cream and the
GST payable thereon and other similar goods having similar tax effect
continuing to enjoy the benefit. We direct accordingly.
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23. The respondent no.2 GST Council to take up the aforesaid aspect in
its next meeting and to take a decision thereon at the earliest, keeping in
view that the ice cream season has just begun, and preferably within three
months of today.
24. The petition is disposed of.
RAJIV SAHAI ENDLAW, J.
SANJEEV NARULA, J.
FEBRUARY 9, 2021
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