Annexure to the Agenda Item 5 Volume-I 50th GSTCM Report of GoM on Casino

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Confidential
Agenda for
50th GST Council Meeting
11th July 2023
Volume-I

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GST Council Secretariat New Delhi
5
th Floor, Tower-II, Jeevan Bharti Building, New Delhi
14th June, 2023
OFFICE MEMORANDUM
Subject: Notice for the 50th Meeting of the GST Council scheduled to be convened on 11
th
July, 2023.
The undersigned is directed to refer to the subject stated above and to convey that the 50
th
Meeting of the GST Council will be held on 11th July, 2023 at New Delhi. The schedule of the Meeting is
as follows:
ï Tuesday, 11th July, 2023: 11:00 A.M. onwards
2. In addition, an Officers' Meeting will be held on 10th July, 2023 as per the following schedule:
ï Monday, 10th July, 2023: 2: 00 P.M. onwards
3. The agenda items and other details for the 50th Meeting of the GST Council will be
communicated in due course of time.
4. Keeping in view the logistical constraints, it is requested that participation from each State/UT
may be kept limited to two (02) officers in addition to the Hon'ble Member of the GST Council.
5. Kindly convey the invitation to Hon’ble Member of the GST Council to attend the Meeting of
the GST Council.
Sd/-
(Sanjay Malhotra)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653
Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with the
request to brief Hon’ble Minister about the above said meeting.
2. PS to the Hon’ble Minister of State (Finance), Government of India, North Block, New Delhi
with the request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Union Territories of Delhi, Puducherry and
Jammu and Kashmir with the request to intimate the Minister in charge of Finance/Taxation or any other
Minister nominated by the State Government as a Member of the GST Council about the above said
meeting.
4. Chairman, CBIC, North Block, New Delhi, as a permanent invitee to the proceeding of the
Council.
5. Chairman, GST Network.

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Agenda for 50th GSTCM Volume 1
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TABLE OF CONTENTS
Sl. No. Agenda Item Page No.
1. Confirmation of Minutes of 49th GST Council Meeting held on 18th February,
2023
7-91
2. Ratification of the Notifications, Circulars and Orders issued by the GST
Council and decisions of GST Implementation Committee for the information
of the Council
92-104
3.
(Part-I)
Issues recommended by the Law Committee for the consideration of the GST
Council
i. Rules Amendment in accordance with the recommendations made by
Group of Ministers (GoM) on implementation of E-way bill
requirement for movement of Gold/ Precious stones under chapter 71.
105-108
ii. Capacity based taxation and Special Composition Scheme in certain
Sectors in GST.
109-129
iii. Clarification on charging of interest under section 50(3) of the CGST
Act, 2017, in cases of wrong availment of IGST credit and reversal
thereof
130-138
iv. Issues pertaining to interpretation of Section 10 of IGST Act, 2017 139-142
v. Clarification with respect to applicability of e-invoice w.r.t supplies
made by a registered person to Government Departments or
establishment/ Government agencies / local authorities/ PSUs
registered solely for the purpose of TDS
143-146
vi. Clarification on refund related issues 147-162
vii. Clarification to deal with difference in Input Tax Credit (ITC) availed
in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A
for the period 01.04.2019 to 31.12.2021
163-169
viii. Mechanism to deal with differences in ITC between GSTR-2B and
GSTR-3B, along with draft rules and proposed FORM DRC-01C for
implementing the same
170-174
ix. Procedure for Recovery of Tax and Interest in terms of Rule 88C(3) 175-177
x. Annual Returns for FY 2022-23 178-189
xi. Amendment in CGST Rules, 2017 regarding registration 190-194
xii. Clarification on TCS liability under Sec 52 of the CGST Act, 2017, in
case of multiple E-commerce Operators (ECOs) in one transaction
195-201
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xiii. Clarification on availability of ITC in respect of warranty replacement
of parts and repair services during warranty period
202-208
xiv. Amendments in CGST Rules consequent to amendment in CGST Act
vide Finance Act 2023
209-214
4. Recommendations of the Fitment Committee for the consideration of the
GST Council
a) Recommendations made by the Fitment Committee for making changes in
GST rates or for issuing clarifications in relation to goods – Annexure-I
215-225
b) Issues where no change has been proposed by the Fitment Committee in
relation to goods – Annexure-II
226-237
c) Issues deferred by the Fitment Committee for further examination in
relation to goods – Annexure-III
238-246
d) Recommendations made by the Fitment Committee for making changes in
GST rates or for issuing clarifications in relation to services – Annexure-IV
247-260
e) Issues where no change has been proposed by the Fitment Committee in
relation to services – Annexure-V
261-264
f) Issues deferred by the Fitment Committee for further examination in
relation to services – Annexure-VI
265-274
5. Second Report of the Group of Ministers (GoM) on Casinos, Race Courses
and Online Gaming
275-277
6. Recommendations of the 18th & 19th IT Grievance Redressal Committee for
approval/decision of the GST Council
a) Decisions/recommendations of the 18th meeting of the ITGRC 278-321
b) Decisions/recommendations of the 19th meeting of the ITGRC 322-378
7. Scheme of budgetary support under GST regime in lieu of earlier excise duty
exemption schemes to eligible manufacturing units under different Industrial
Promotion Schemes of the Government of India
379-391
8. Ad-hoc Exemptions Orders issued under Section 25(2) of the Customs Act,
1962 to be placed before the GST Council for information.
392-394
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Discussion on Agenda Items
Agenda Item 1: Confirmation of Minutes of the 49th Meeting of GST Council held on
18th February, 2023
The 49th meeting of the GST Council was held on 18th February, 2023 under the
Chairpersonship of the Hon’ble Union Finance Minister, Smt. Nirmala Sitharaman at Vigyan Bhawan,
New Delhi. The list of Hon’ble Members of the Council who attended the meeting is at Annexure-1.
The list of the officers of the Centre, States, Union Territories with legislature, GST Council Secretariat
and GSTN who attended the meeting is at Annexure-2.
1.2 The following agenda items were listed for discussion in the 49th meeting of the GST Council:
Agenda
No.
Agenda Item
1 Confirmation of Minutes of the 48th meeting of the GST Council held on 17th
December, 2022 and Errata
2 Report of Group of Ministers on constitution of the Goods and Services Tax
Tribunal
3 Ratification of the Notifications, Circulars and Orders issued by the GST Council
4 Issues recommended by the Law Committee for consideration of the GST
Council
i Amendment in Section 23 of the CGST Act, 2017
ii Proposal to extend time period mentioned in Section 62(2) of the CGST Act, 2017
iii Change in Place of Supply of transportation of goods under Section 13(9) of
the IGST Act, 2017
iv Rationalisation of late fee for FORM GSTR-9 and amnesty for non-filers of FORM
GSTR-4, FORM GSTR-9 and FORM GSTR-10
v Amendment in CGST Rules and Notification for biometric based Aadhaar
authentication of registration applicants
vi Extension of time limit for application for revocation of cancellation of registration
vii. Extension of time limit under sub-section (10) of section 73 of the
CGST Act for FY 2017-18, 2018-19 and 2019-20.
Errata
5 Recommendations of the Fitment Committee for consideration of the GST
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Agenda
No.
Agenda Item
Council
a) Recommendations made by the Fitment Committee for making changes in
GST rates or for issuing clarifications in relation to goods – Annexure-I
b) Issues where no change has been proposed by the Fitment Committee in
relation to goods – Annexure-II
c) Issues deferred by the Fitment Committee for further examination in
relation to goods – Annexure-III
d) Recommendations made by the Fitment Committee for making changes in
GST rates or for issuing clarifications in relation to services – Annexure-IV
6 Report of Group of Ministers on Capacity Based Taxation and Special
Composition Scheme in certain sectors on GST
7 Closure of Group of Ministers on levy of Covid Cess on Pharma and Power
Sector in Sikkim
8 Closure of Group of Ministers to examine the feasibility of implementation of
e-way bill requirement for movement of gold and other precious stones.
9 Issues recommended by GSTN :
1. Proposed Changes in HR Policies and Transition Management from GSTN
2. Proposal for Changes in the Revenue Model of GSTN and transition to the new
Revenue Model (as amended and circulated on 18/02/2023)
3. Waiver of Interest on delayed receipt of Advance User Charges from a few States
and CBIC
4. Data Archival Policy for the GST System
5. Implementation of facility to Generate Document Identification Number in GST
Back Office for Model 2 States in compliance with the Supreme Court
judgement in W.P. 320 of 2022.
10 Recommendations of the 17th IT Grievance Redressal Committee for
approval/decision of the GST Council
11 Agenda on Report of Committee of Officers on GST Audit along with Draft Model All
India GST Audit Manual (as amended and circulated on
18/02/2023)
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Agenda
No.
Agenda Item
12 Decisions of GST Implementation Committee for information of the GST
Council
13 Ad-hoc Exemptions Orders issued under Section 25(2) of Customs Act, 1962
to be placed before the GST Council for information
14 Review of revenue position under Goods and Services Tax
15 Any other agenda with the permission of the Chair
1.3 The meeting started with exchange of greetings between Hon’ble Members and the Hon’ble
Chairperson on the occasion of Maha Shivaratri.
1.4 With the permission of the Chair, the Secretary to the GST Council welcomed all the
Hon’ble Members of the Council and participating officers to the 49th meeting of the GST Council.
The Secretary on behalf of the Council welcomed the following new Hon’ble Members to their first
meeting of the GST Council1. Sh. Subhash Garg, State Minister for Technical Education, Rajasthan
2. Sh. Harshwardhan Chauhan, Minister for Industries, Himachal Pradesh
3. Sh. Deepak Vasant Kesarkar, Minister for Education and Marathi Language,
Maharashtra
1.5 The Secretary stated that the Hon’ble Members of the Council were aware that in its 47
th
meeting at Chandigarh, the Council had formed a Group of Ministers (GoM) on Goods and Services
Tax Appellate Tribunal with Sh. Dushyant Chautala, Hon’ble Deputy Chief Minister of Haryana as
the Convener and Hon’ble Ministers from the States of Andhra Pradesh, Goa, Rajasthan, Uttar
Pradesh and Odisha as Members. The GoM had submitted their recommendations in the form of a
report which was being placed as an agenda before the Council. He thanked all the Hon’ble Members
of this GoM for their valuable recommendations.
1.6 Further, he stated that the GST Council had formed another GoM on Capacity Based
Taxation and Special Composition Scheme in Certain Sectors on GST with Sh. Niranjan Pujari,
Minister of Finance, Odisha as the Convener and Hon’ble Ministers from Delhi, Haryana, Kerala,
Madhya Pradesh, Uttar Pradesh and Uttarakhand as Members. The GoM had submitted its report
which was being placed before the Council for deliberations. He thanked all the Hon’ble Members
of the GoM for their valuable recommendations.
1.7 He further stated that a GoM on Casinos, Race Courses and Online Gaming was formed to
examine the issue of valuation of said services and related aspects with Sh. Conrad Sangma, Hon’ble
Chief Minister, Meghalaya as Convener and Hon’ble Ministers from Maharashtra, West Bengal,
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Gujarat, Goa, Tamil Nadu, Uttar Pradesh and Telangana as Members. He stated that though the GoM
had submitted its report, however due to unavailability of the Hon’ble CM, Meghalaya, tabling of
this report was being deferred.
1.8 He further stated that in this Council meeting, there were agendas for closure of GoM on
movement of Gold and Precious Stones and GoM on Levy of Covid Cess on Power and Pharma
Sector in Sikkim. He thanked all the Hon’ble Members of these two GoMs for their valuable
contributions.
1.9 The Secretary further briefed the Council regarding the status of revenue collection and
improvement in compliance behaviour. He informed that the GST collection in January, 2023 stood
at ₹ 1,57,554 crore which is the second highest ever next only to the collection reported in April,
2022. This was for the third time in the current financial year that the GST collection has crossed ₹
1.50 lakh crore mark. He stated that the revenues in the current financial year up to the month of
January, 2023 were 24% higher than the GST revenues during the same period last year. He further
informed that 8.3 crore e-way bills were generated during the month of December, 2022 which was
the highest so far and it was significantly higher than 7.9 crore e-way bills generated in November,
2022. He stated that 2.42 crore GST returns were filed in the quarter Oct-Dec 2022 as compared to
2.19 crore GST returns in the same quarter in the last year. The Secretary thanked all the States for
their remarkable efforts for improvement in compliance behaviour and revenue augmentation.
1.10 The Secretary further informed the Council that he had met the officers of the Centre, States
and UTs on 17.02.2023 and had a very detailed and fruitful discussion on various agenda items
which would aid the Council in steering the agenda. He sought permission of the Hon’ble
Chairperson to start the proceedings of the meeting. The Hon’ble Chairperson accorded permission
to start with the agenda. The Hon’ble Chairperson informed the Council that the dues of
compensation cess in all the cases where the AG’s certificate had been provided by the State would
be cleared that day. She highlighted that the Centre had released more compensation than the cess
received. She stated that the Centre is proposing to pay the compensation dues in advance without
waiting for the collection of the cess. She requested all the States to send the pending AG’s
certificates to enable the Centre to disburse the compensation amount timely.
1.11 The Secretary stated that there were fifteen agenda items in this meeting and the major set of
agenda was circulated well in advance as promised in the last GST Council meeting.
Agenda Item 1: Confirmation of the Minutes of the 48thMeeting of the GST Council
2.1 The first agenda item pertained to confirmation of the minutes of the 48th Meeting of the
GST Council held on 17th December, 2022 through Video Conferencing. The Secretary stated that
few States had suggested editorial changes which had been carried out and the revised minutes had
been incorporated in the agenda and circulated to all the Hon’ble Members. Further Punjab had
suggested certain minor changes in para 4.32 in the Officers’ Meeting on 17th February 2023 which
had been circulated to the Hon’ble Members in this meeting. The minutes of the 48th meeting of the
GST Council after incorporating the suggested changes by the States were being placed before the
Council for confirmation.
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Decision: The Council adopted the Minutes of the 48th meeting of the GST Council.
Agenda Item 2 : Report of Group of Ministers on constitution of Goods and Services Tax
Tribunal
3.1 The Secretary requested the Hon’ble Deputy CM of Haryana (Convener of GoM) to present
the Report of GoM on constitution of GSTAT.
3.2 The Hon’ble Member from Haryana thanked the Hon’ble Chairperson and made a
presentation (Annexure-3). He informed the Council that consequent to discussions in the 47th
Meeting of the GST Council held in Chandigarh, a GoM on GSTAT was constituted. The
mandate of the GoM was to recommend necessary amendments to GST law to ensure that the legal
provisions maintained the right federal balance and were in line with the overall objective of uniform
taxation as well as the principles outlined in various judgments of Courts in relation to constitution of
Tribunals.
3.3 The Hon’ble Convener of GoM informed the Council that the GoM had held two meetings.
In the first meeting held at New Delhi, the GoM discussed the various judgments of Supreme Court
as to how Tribunals needed to be constituted and the criteria for selection of Technical Member(s)
and Judicial Member(s) and other provisions. The second meeting of the GoM was held in
Bhubaneshwar where the recommendations were finalised. The Hon’ble Convener further explained
that two Members of the GoM had differed with the recommendation of the GoM on the point of
opting for a National Tribunal with Benches in States but there was agreement amongst Members on
the remaining recommendations. He further stated that keeping in view the spirit of co-operative
federalism, the GoM recommended One Nation, One Tax and One Tribunal. He also informed that
detailed discussions were held for determining the methodology for creation of Benches, selection of
Technical/Judicial Members keeping in view the rights of Member States as well as the interests of
the tax payers. After careful consideration of all these aspects, the GoM recommended that there
should be one Tribunal constituted at National level with Benches of that Tribunal at State level
having regard to both population and tax payer base of that State.
3.4 The Hon’ble Convener of GoM further informed the Council that Members from U.P and
Rajasthan had suggested that there should be State Tribunals but the majority of the Members of GoM
agreed with the proposal that there should be one National Tribunal with Benches at State level. In
this regard, he also informed the Council that the GoM had also considered the issue of various State
Advance Ruling Authorities giving varied decisions on the same issue. To elaborate the point, the
Hon’ble Convener cited the example of issue involving whether input tax credit (ITC) needs to be
allowed on a demo car used by car dealers and in the States of Haryana and Madhya Pradesh, the
respective Advance Ruling Authorities had passed orders that input tax paid on a demo car is not an
eligible credit but in the State of Kerala and Maharashtra, the AAR had passed an order that ITC can
be allowed for demo car. This demonstrates that there could be conflicting views on same issue across
States as no single judgement prevailed over the whole country. To address this issue, the GoM had
recommended that National Tribunal should be created with Benches at States so that there will be
persuasive value of orders/judgements passed by respective Benches in other States. He submitted that
this would be keeping in line having uniformity and One Nation, One Tax and One Tribunal as
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National Tribunal would be able to give a ruling on such aspects.
3.5 The Hon’ble Convener of GoM further submitted that in 2020, the Hon’ble Supreme Court
on a petition made by the Madras Bar Association had directed that the Search cum Selection
Committee (ScSC) be chaired by the Chief Justice of India or a Judge of Supreme Court nominated
by him with the President of the Tribunal and 02 Officers as Members. On the question of having a
different ScSC for the States, the Hon’ble Convener stated that on the question of selection of
Technical Member at National/State level, even during the 47th GST Council Meeting, it was
submitted that since all members are equal in roles and responsibilities, they should go through the
same selection and appointment process. He further submitted that GoM had proposed that the ScSC
for selection of Judicial Member and Technical Member (Centre) of National Tribunal could consist
of Chief Justice of India or a Judge of Supreme Court nominated by him as Chairperson of ScSC,
President of the Tribunal, Secretary of Central Government along with Chief Secretary of a State to
be nominated by the Council. The Hon’ble Convener of the GoM further pointed out that the GoM
had recommended that the Chief Secretary of the State in which the Bench is located should be made
part of the ScSC in case of member for selection of Technical Member (State).
3.6 With respect to composition of Benches, the GoM had recommended that it should consist of
one Judicial Member and one Technical Member. Further, the Technical Member should be
Technical Member (Centre) or Technical Member (State) in a 50:50 ratio in every State. In case of
smaller States, where only one Bench would be constituted, there should be provision for alternating
the tenure between Technical Member (Centre) and Technical Member (State) for a specific time.
The GoM further suggested that single Member Bench should be empowered to hear cases with tax
implications up to Rs. 50 lakhs, where no question of law was involved. However, the power to raise
the monetary limit was left to the decision of the Council.
3.7 The Hon’ble Convener stated that with respect to qualifications of Members, the GoM
suggested that the President be a Judge of the Supreme Court (retd.) or Chief Justice of the High
Court (retd.). With respect to qualification of Judicial Member, the GoM recommended that he
should be a Judge of the High Court (retd.) or District Judge or Additional District Judge with at
least 10 years’ experience. With respect to qualification of Technical Member (Centre), the GoM
recommended that he should be a member of the Group A Service with 25 years of service (IRS -
C&IT) or All India Services (AIS) with at least 3-year experience in GST or existing law and 25
years of service. With respect to qualification of Technical Member (State), the GoM recommended
that he should have minimum 25 years’ service and should be officer of State Government or AIS
with a rank higher than the First Appellate Authority of the State. To give an example, the Hon’ble
Convener stated that in the State of Haryana it would be an officer at least of the rank of Joint Excise
& Tax Commissioner or Additional Excise & Tax Commissioner. Further, he submitted that in many
States the equivalent of this is a Class B officer and in such cases the Council has the power to
consider the request of the State and amend the requirement from time to time. Also, the requirement
of 25 years of Government service in Group A may be reduced on the recommendation of the
Council.
3.8 Regarding the retirement age of Members, the GoM recommended that the retirement age of
President should be 67 years and 65 years for the members. This was kept keeping in view that the
retirement age of High Court judge is 62 years. Therefore, the GoM felt that if they applied for
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Member (Judicial) of Tribunal after 62 years, they would get a tenure of 4 years after the selection
process. The Hon’ble Convener further submitted that if a High Court judge so desired, he could take
early retirement and apply for the post but in such cases, they should not be given an extension for
more than 2 years in the second tenure.
3.9 Regarding the number of Benches to be constituted, the Hon’ble Convener submitted that
they had taken into consideration the representation of UP, Tamil Nadu and all other States that had
written to the GoM. The GoM after detailed discussion had recommended that States with less than 5
crore population should not have more than two Benches. The Hon’ble Convener further stated that
GoM wanted to similarly limit the number of Benches according to 10 crore/15 crore population for
bigger States but taking into consideration the demands of all States, the GoM had recommended that
any State with population above 5 crore should not have more than 5 Benches.
3.10 The Hon’ble Convener further informed the Council that few States had represented that
they did not have a notified/recognized Group ‘A’ Service and that in such cases the GoM had
recommended that Class I officer with a different nomenclature could be accepted as Technical
Member (State) subject to approval given by the Council from time to time on request made by the
State.
3.11 The Hon’ble Convener of GoM concluded the agenda by stating that acceptance of the
proposal for constitution of GSTAT would be for the betterment of taxation matter in States as it
would address the large pendency of appeals.
3.12 The Secretary thanked the Hon’ble Convener of GoM and invited comments from all the
Hon’ble Members.
3.13 The Hon’ble Member from UP stated that as a Member of the GoM he had agreed with all
recommendations except one. He stated that States should have the power to constitute the State
Tribunal. In this regard, he drew the attention of the Council to the Union List/ State List wherein
Centre and State have been vested with the power respectively to make laws on subjects mentioned
therein. Further, he stated that Article 246 A specifically provides the legislature of every State with
power to make laws with respect to Goods and Services tax imposed by Union or State subject to
Article 246 (2). He also drew attention of the Council to the overriding power given in Article 323 B
clause (4) which provides that the provisions of this Article shall have effect notwithstanding
anything in any other provision of this Constitution or any other law for the time being in force. He
stated that the Constitution has accorded power to States to constitute Tribunals and further, he
clarified that the issue raised in Revenue Bar Association case pertained to number of Judicial
Members and the Court had ruled that the number of Judicial Members should not be less than the
Technical Members and that this case was not a precedent for the point that the States do not have
the power to constitute a Tribunal. The Hon’ble Member reiterated that States should have the power
to constitute Tribunals and also that States should have a say over the appointment of Technical
Members.
3.14 The Hon’ble Member from Rajasthan stated that the National Tribunal and State Tribunal
should be separate and that the States should have the power to constitute the State Tribunal. He
agreed with the view expressed by the Hon’ble Member from UP on the point that Revenue Bar
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Association case had only ruled on the issue of number of Judicial Members and that therefore it was
not an authority on other matters. He further stated that every State has its own State specific
industry, State specific tax payer base and therefore, every State should have its own independent
State Tribunal which will work independently from the National Tribunal, Further, in case of any
conflict the matter should be referred to National Tribunal. He added that the number of Benches to
be constituted should not be made dependent on the population of State but the basis for the same
should be the number of tax returns filed as disputes are linked to taxation issues. He further
elaborated that the same principle i.e., the number of pending cases is used for determining the
number of Benches of High Courts in States. Regarding the qualification of the Technical Member,
the Hon’ble Member stated that the Members of the AIS and State services get transferred within a
period of 1 or 2 years and that therefore, the requirement of 3 years for AIS members needs to be
relooked into as this condition may result in non-availability of eligible members or limited
availability of eligible members. Therefore, it was stated that the scope of eligibility of Technical
Member needs to be widened to increase the pool of available officers and that the power should be
given to States to constitute the State Tribunal in the light of prevailing circumstances in the State.
He reiterated that the power to constitute the State Tribunals should be given to States and that they
should be allowed to function independently.
3.15 The Hon’ble Member from Maharashtra stated that there should not be a fixed criterion for
deciding the number of Benches. Further, he stated that being a large State, Maharashtra will also
have to make provision for Benches for regional areas. He stated that the power to decide the number
of Benches should be left to the States. Regarding the composition of Benches, it was suggested that
appointment of Technical Member (Centre and State) in States need to be made alternately based on
robust methodology like a fixed roster system i.e. if one Bench comprised Technical Member
(Centre), then the next Bench could comprise Technical Member (State) and in case of four-member
Benches, one Technical Member should be from Centre and another Technical Member should be
from State. He further agreed with the proposal that Technical Member should not be below the rank
of Joint Commissioner as it would ensure that people with reasonable experience in taxation to apply
for the post. Further, the power proposed to be given to States to notify rank higher than the First
Appellate Authority would be redundant where the First Appellate Authority is of the rank of Joint
Commissioner but where Additional Commissioner rank officer is not available. Therefore, it was
suggested that the proposed formulation may be amended so that Joint Commissioners become
eligible for this post of Technical Member as a bigger pool of officers would be available. Further,
the Hon’ble Member stated that they supported the proposal for National Tribunal with Benches at
State level.
3.16 The Secretary clarified that the GoM had not made any proposal with respect to the number
of Benches to be included in the Act and that the number of Benches could be determined by the
Council.
3.17 The Hon’ble Member from West Bengal stated that they were in complete agreement with
the views expressed by Members of UP and Rajasthan on the question of constitution of State
Tribunal. She stated that the National Tribunal at Centre could have Regional Benches but over and
above that States should have their own Tribunal. The disputes pertaining to Place of supply, etc. can
be referred to the National Tribunal. The Hon’ble Member also drew attention of the Council to the
guidelines laid down in L. Chandrakumar case. Further, it was stated that in Revenue Bar
Association case, the Court had not decided on the constitution of the State Tribunals and that there
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is also overriding power given under Art 323B over Article 246A for constitution of such Tribunal.
The Hon’ble Member stated that it was their view that to keep the federalism intact it would be better
to have a National Tribunal at Centre with Regional Benches in State along with independent State
tribunals.
3.18 The Hon’ble Member from Kerala stated that they also support the view taken by Hon’ble
Members from UP, Rajasthan, West Bengal and Maharashtra. He further stated that they supported
the proposal to have a National Tribunal but at the same time they also supported the proposal to
have a State Tribunal. It was also stated that the decision regarding the number of Benches for the
Tribunal should be left to the Council as the suggestion made by the GoM was only recommendatory
in nature and also, that the number of Benches should be determined as per the requirement of State.
It was further stated that with respect to selection of Technical Members, the power of selection
should vest with the State Government. He also stressed the need to have these Tribunals set up
having completed 5 years of GST implementation.
3.19 The Hon’ble Member from Bihar agreed with the views expressed by Members from State
of UP, Rajasthan and West Bengal and he reiterated that States should have the power to set up
State Tribunals. It was also emphasized that the number of Benches should be determined
on the basis of their tax payer base and the States should have the power to determine the number of
Benches. It was further mentioned that the ScSC should have a member recommended by the State
where the Tribunal would be set up. He suggested that power should be given to States to appoint the
Technical Member (State) and preferably also the other Members to the Benches. In addition, it was
mentioned that option should be given for keeping Technical Member (Centre) along with Technical
Member (State) in these Benches so that there would be assured representation for the State and
there could be two Judicial Members Also, it was stated that the Council could decide on the
monetary limit for adjudication of cases at the level of State Benches as well as that of the National
Tribunal. Further, he also stated that the Chief Justice of the High Court of concerned State should
be the Chairman of the ScSC for selection of Technical Member (State).
3.20 The Hon’ble Member from Punjab supported the view taken by Hon’ble Members from
Uttar Pradesh, Bihar, West Bengal and Rajasthan and stated that the States should have independent
authority while constituting their own State Tribunal and in appointment of Members thereof. He
further elaborated that every State has its own specific State based industry, trade practices that are
particular to that State and therefore, persons from that State would be well versed with such State
specific trade nuances. He also emphasized that keeping in view the federal structure the State should
be given the power to set up their own Tribunals and also to make appointment of Members thereof.
3.21 The Hon’ble Member from Delhi also supported the views put forth by other States
regarding constitution of separate National and State Tribunals as provisions for the same have been
provided in GST law and stated that the structure of the Tribunal must be federal as GST laws have
been devised keeping in view this federal structure. A Central Tribunal is not desirable. He further
stated that the issue before the Court in Revenue Bar Association was related to numbers of
Members of the Tribunals and there was no bar per se regarding constitution of Central and State
Tribunals. He also emphasized that the constitution of number of Benches of Tribunal in States
should be left to their wisdom based on number of taxpayers, the geographical area, topography etc.
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3.22 The Hon’ble Member from Madhya Pradesh raised concern over large number of appeals
being filed directly before the Hon’ble High Court in absence of Tribunals and stated that 2046
appeals had been decided in the State of Madhya Pradesh by the First Appellate Authority and a
second appeal was expected in all these cases. He complimented the steps taken by the GoM towards
setting up the Tribunal so far and stated that the State of Madhya Pradesh was in favor of
constitution of separate Tribunal for the State. The State Civil services recruitment rules are
different for different States. There is no classification of Group ‘A” services in Madhya Pradesh.
Therefore, he suggested that the eligibility for appointment of Technical Member (State) should be
clearly defined and the States should be empowered to recruit Technical Member (State).
3.23 The Hon’ble Member from Tamil Nadu thanked the Hon’ble Deputy Chief Minister from
Haryana for the efforts of the GoM. He elaborated that there are 31 Commercial State laws and 31
Commercial Tax departments across various States. He further stated that the Court order should not
dictate the administrative policy to the Union Government or to the GST Council, as this would be
undermining the powers of the Executive. He further stated that the GST Council should exercise its
authority under the Constitution which was the prerogative of elected representatives. He elaborated
that if the Council were to create a particular scheme for the Tribunals then the same can be taken up
before the judiciary for deciding whether the scheme is valid or not under the Constitution. He
opined that the directive of the Court that the Tribunals that are to be prospectively set up should
follow a set principle, appears to be completely violative of the prerogative of the elected
representatives. He pointed out that there are existing VAT Tribunals with one Judicial and two
Technical Members which have not been invalidated by the Courts. He mentioned that if the Council
proceeded with the view of the High Court, there would be a lot of complexity about the eligibility
of the Members both Technical and Judicial. He further stated that in case of National Tribunal
having Benches across the States, the administrative burden on a single body would be significantly
higher. He stated that the Council should go with ratio of Judicial and Technical Members just like
the existing VAT Tribunals and it should not give up the idea of State Tribunals. He also added that
the said judgment has not discussed anything about State Tribunal. He also emphasized that when
persons who are not from the particular State are appointed as Members of Tribunals then they
would not be conversant with the trade practices and usages that are peculiar to that State and in this
regard, he cited the example of ‘Rab’ that was taken up for discussion in the last Council meeting.
He further stated that the local context would be lost in the case of National Tribunals.
3.24 The Hon’ble Member from Manipur requested the Council to bring down the requirement of
having 25 years of experience for being considered for appointment as Technical Member (State) as
for smaller State like Manipur, the age limit to get into Group ‘A’ service is higher i.e. 38 years;
even higher for reserved category and due to this it might not be possible for them to get suitable
officers for the post of Technical Member (State) with the present criteria.
3.25 The Hon’ble Member from Puducherry stated that they supported the idea of having a
National level Tribunal as the same was necessary as per the Constitution, however, he stated that it
was equally important to have a State level Tribunal in every State. He further suggested that the
Chief Secretary of the concerned State may be included as a member of ScSC for the appointment of
Technical Member (State) of the Tribunal so that due consideration would be given for appointment
of experienced officers from the State in these State Tribunals/Benches.
3.26 The Hon’ble Member from Chhattisgarh stated that the nature and spirit of the Constitution
is clearly federal and decisions should be taken accordingly without impinging on its provisions. He
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further stated the present judicial hierarchy is District court, High Court and Supreme Court and not
having an appellate authority at State level and proceeding straight to National Tribunal does not
appear proper. He stated that there must be State Tribunals and appeal against the State Tribunal in
case of conflicting views should go to the National Tribunal. He further stated that since there are
two Acts i.e. CGST and SGST, it is only desirable that Technical Members from both Centre and
State are given representation in the Tribunals.
3.27 The Hon’ble Convener of GoM stated that while making the recommendations, all six
Members of the GoM had considered the fact that tax was collected at State level on consumption
basis and the biggest evaluation method for consumption is the population and not the number of
taxpayers, therefore, the GoM had recommended that the number of State Benches would be decided
according to the population of the State. Regarding the selection of Technical Member (State), it was
accepted that in case of Technical Member (State), the Chief Secretary of the State would be a
Member of the ScSC. He further stated that there was a conflict regarding whether there should be a
State Tribunal or a National level Tribunal having Benches in every State. He clarified that if an
appeal is decided at the Joint Commissioner level, then as per the recommendations of GoM, the
appeal would go to the National Bench or Bench at State level and then it would go to the High
Court and then to the Supreme Court for final judgement; that if a State Tribunal was created then
there would be a five tier system and therefore the GoM had collectively recommended the creation
of National Tribunal and Benches in order to have faster delivery of judgments. He further stated that
on the eligibility criteria of having experience of 25 years for the Technical Member (State), the
Council might take a decision regarding relaxation in age or required experience as recommended by
the State of Manipur. Regarding the number of Members in Benches it was stated that the Council
can make a decision to keep it at 1:1 or 2:2 but the GoM had recommended having Judicial Member
and Technical Member in ratio 1:1 in every Bench after thorough discussion and if the same was to
be amended, then there could be litigation at Supreme Court and therefore the ratio of 1:1 had been
recommended in view of the judgement of the Hon’ble Court. He also stated that these
recommendations were made keeping in view the One Nation, One Tax and One Tribunal and also to
avoid situations wherein conflicting views are given by different fora as is seen in case of AAR at
present.
3.28 The Secretary to the Council stated that the recommendations had been made by the GoM
after having considered the judgments of both the Hon’ble High Court and the Supreme Court. He
also clarified that the question of having equal number of Judicial and Technical Members had been
discussed by the Supreme Court in subsequent cases and it had been decided that equal number of
Judicial Members and Technical Members should be maintained in the Tribunals. He also
emphasized that the provisions of CGST Act and the SGST Act are pari materia to each other and
also the rates of taxation are same for all supplies of goods and services. Accordingly, the GoM had
been constituted to arrive at a uniform view in case of GST Tribunal. He further clarified that every
State should have its own Bench even though some States had asked for their own Tribunal. The
critical issue before the Council was the composition of the ScSC. He further stated that the
Members of the Tribunal were expected to deliver judgements fairly, independently and in a
nonpartisan manner and as regards the ratio of 1:1 from Centre and State in a State Bench, the same
had been recommended for getting adequate representatives from both Centre as well as State
services. He further stated that the existing law under CGST Act that has been struck down by the
High Court, provides for one Tribunal. The CGST Act provided for National Tribunal with Regional
Benches and State Benches with Area Benches but it envisages only one Tribunal. This was decided
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six years ago at the time of inception of GST and this may not be revisited. Further, the major issue
was regarding who makes the recommendations for the Technical Member (State). Regarding the
number of Benches, he stated that the same can be varied by the Council as per the requirement of
the State. Regarding the request for reduction of 3 years tenure for AIS officers for the eligibility
criteria, he stated that it was a fair tenure stipulation and that without that much tenure the officer
would not have sufficient experience to adjudicate on tax disputes. The Secretary clarified that
Section 109 (5) of the CGST Act, as recommended by the GoM, states that in addition to the
Principal Bench, Government shall, by notification, constitute such number of Benches at such
locations as may be recommended by the Council based on the request of the State Government. He
clarified that therefore, the flexibility to increase the number of Benches has already been provided
for in the proposed amendment to the Section.
3.29 The Hon’ble Chairperson stated that the insistence of the States on their right to nominate a
person familiar with the States situation in the Benches was a fair point. In this regard, clarification
was also sought from the Hon’ble Convener of the GoM regarding the appointment of Technical
Member on a rotation basis i.e. in one year, the State Member would be appointed and in the next,
the Centre Member would be appointed. Regarding the number of Benches, the Hon’ble Chairperson
stated that there was merit in the suggestion put forward by Rajasthan and UP that it would be right
for the States to suggest the numbers of Benches in State depending on the criteria of number of
cases, geographical area, topographical uniqueness, etc.
3.30 The Hon’ble Convener of the GoM responded that in case of States with two Benches, one
of the Benches can be constituted with Technical Member (Centre) and the other Bench can have
Technical Member (State). Further, he stated that GoM had recommended that there should be
rotation of Technical Member (Centre) and Technical Member (State) between these two Benches.
Further, he stated that in case of bigger states like UP with five Benches, their proposal was that
initially three Benches would have Technical Member (Centre) and two Benches would have
Technical Member (State) and during the second tenure, this arrangement would be reversed. He
further stated that they had held detailed discussion with State of UP in this regard and that the limit
regarding the number of Benches suggested by them in this regard was only recommendatory in
nature. Maharashtra had stated that they had eight VAT Benches and they could request for more
Benches and if some States desired to collectively form one Tribunal, the same could be
recommended. In this regard, the Hon’ble Convener of the GoM stated that the concerns raised by
States like Rajasthan, UP, Maharashtra and Manipur would be addressed through this power vested
in the Council on requests made by the States.
3.31 The Hon’ble Member from Bihar welcomed the suggestion of the Hon’ble Chairperson on
the rights of State to have a say in the appointment of Technical Member and he reiterated that the
Technical Member must be appointed on the recommendations of the State. The Hon’ble Member
from Kerala stated that the pertinent question in this scenario was not the method of appointment of
Members nor the constitution of the Benches but the right of the States to have a Tribunal of their
own.
3.32 The Hon’ble Member from Rajasthan raised the issue of nomenclature of State Benches on
the ground that when a National Tribunal is set up, then it would have only Regional Benches. He
further stated that there was no bar on constitution of separate Tribunal for State. Further, if there are
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conflicting decisions between various State Tribunals, then such conflicts could be referred to
National Tribunal.
3.33 The Secretary also clarified that the number of appeals should be limited to two and that
there was no need for setting a State level Tribunal as appeal in a State should be decided at two
levels and thereafter the taxpayer could go to the High Court. He further pointed out that as
suggested by the Hon’ble Chairperson a separate Search-cum-Selection Committee could be made
for selection of Technical Member (State).
3.34 The Hon’ble Member from Chhattisgarh sought clarification as to if the ScSC can have two
Judicial Members and two other Members then why should the Tribunal be precluded from having
two Judicial Members and two Technical Members. The Hon’ble Convener of the GoM responded
that the rights of the States are secured as provision has been made for nominating Chief Secretary of
the State in ScSC for selecting the Technical member of the States in which the Bench is located.
3.35 The Hon’ble Member from West Bengal stated that issues could be divided between the
National and State Tribunals; that the disputes relating to place of supply/IGST could be handled by
National Tribunal and the rest of the issues could be left for the State Tribunal to decide and that
there was no requirement for amending the Constitution. Further, it was stated that many Tribunals
under Article 323B are already functioning in many States and there should not be any dispute
regarding constituting State Tribunal in a State as National Tribunal would not be the Appellate
Tribunal of the State. The Hon’ble Member clarified that State Tribunals and National Tribunals
would function independently and that the appeal would lie to the High Court as power under Article
226 cannot be taken away as clarified by the Apex court in the case of L. Chandrakumar.
3.36 The Hon’ble Member from Tamil Nadu stated that there were some issues for consideration
before the Council. The first issue was the constitution of the Tribunal, i.e. whether it should it be
one plus one Technical Member in a revolving manner between State and Union or should it be two
plus two. The GoM had recommended for one plus one arrangement but the Hon’ble Member stated
that there were numerous judgements that prescribe two plus two Members. The second issue was
whether there should be a State Tribunal and an appellate level National Tribunal or should there be
a separation of issues between the State and National Tribunals in which case the next appeal against
the judgment of the State/National Tribunal would lie to the High Court as is the case today with
VAT Tribunals. Then, if the decision was not to have two separate levels within the Tribunals and to
have only one level of Tribunal, then there should be no hesitation to have a State Tribunal as long as
the issues are demarcated between National and State Tribunal. In such a case, there would not be
any delay because every issue will get one Tribunal appearance. As regards the State Tribunals
giving conflicting judgements, he opined that the same can happen in now proposed system also.
3.37 The Hon’ble Member from Rajasthan stated that the Council should go with the formulation
of two plus two and he also stated that there would be no difficulty in finding two Judicial Members
as the terms of qualifications provide for retired persons including District Judges. Hon’ble Member
from Rajasthan suggested that the Benches in the State could be called “State Benches”.
3.38 The Hon’ble Member from Andhra Pradesh stated that he was not for two plus two
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formulation but to have three Members in the pool, but the quorum of the Bench would be two. This
would also enable speedy resolution of cases. He further added that the GoM has recommended a
National Principal Bench and State Benches with power of State for appointing the
Technical Members for the reason that this would ensure uniformity of judgement across the State
Benches and he also added that having State Tribunals would mean that the appeals would lie from
those Tribunals to National Tribunals thereby causing further delay in deciding appeals.
3.39 The Hon’ble Member from Maharashtra also suggested to adopt two plus two formulation as
this would ensure representation of both Centre and State. The Hon’ble Member from Goa stated
that if the Council so decides the formulation can be changed to two plus two but there would be
practical difficulties in getting Technical Members as well as Judicial Members in that case
especially in smaller States.
3.40 The Hon’ble Member from Tamil Nadu proposed an alternate formulation i.e. a clear
demarcation should be made on the issues that would be dealt by the National Tribunal and the State
Tribunal. He further stated that the National Tribunal and its Benches would be greatly reduced in
number and for them the two plus two formulation could be adopted and they could deal with issues
such as Place of Supply, Country of origin, etc. He also stated that the appeal in such cases would lie
to the High Court where the appellant is located. He added that State Tribunals could function with
one plus one formulation and deal with issues such as assessment, GST related issues, etc. as in the
case of VAT Tribunal. He further stated that these two Tribunals should function independently of
each other.
3.41 The Hon’ble Member from Odisha stated as a Member of the GoM they had also suggested
one plus one formulation for Benches. He further stated that in case of two plus two formulation,
there could be difficulty in finding adequate number of Members. He further referred to the proposal
of the Hon’ble Member from Andhra Pradesh regarding having three Members, one Judicial and two
Technical Members and stated that the same was deliberated by the GoM and rejected for the reason
that this would not ensure judicial priority. He further stated in case of four Members there would be
disagreements between the Members which would cause delay in delivery of judgements. He also
stated that the GoM had considered the request for reducing the requirement of years of experience
for the Members and recommended that the qualification requirement can be reduced by the Council
on a request made by a State. He added that in case of National Principal Bench with State Benches,
the Principal Bench would be able to exercise control over the State Benches to ensure uniformity of
decisions but supervision by Principal Bench is not possible in case of State Tribunals. The Hon’ble
Member from Delhi requested the Council to decide first whether the proposal should be for a
National Tribunal with State Benches or for having separate National and State Tribunal. He added
that once this issue is decided upon, the Council can decide upon the number and composition of the
Benches.
3.42 The Hon’ble Convener of the GoM stated that after hearing the views of all the States, a
decision may be taken by the GST Council that the two plus two formulation be adopted for National
level and State level Benches with National Bench being the Principal Bench. In this regard, he also
stated that, if approved by the Council, the ScSC as proposed by the GoM for selection of Technical
Member (State) can be amended to include the Chief Justice of the High Court, Chief Secretary of
the State along with a Secretary level officer nominated by the State so as to secure the rights of the
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States.
3.43 The Hon’ble Member from Tamil Nadu stated that there needs to be clarification as to
whether the proposal is for a National and State Tribunal with the National Tribunal having appellate
jurisdiction or whether the National and State Tribunal would be covering different set of subject
matter with the appeal lying to the High Court from both these Tribunals. He suggested that the
ScSC for Technical Member (Centre) should also comprise State High Court Judge, President of the
Tribunal and Secretary of the Centre and Chief Secretary of the concerned State.
3.44 The Hon’ble Member from Punjab raised issue of transfer of Technical Member (State)
which was also supported by Bihar and Tamil Nadu. The Hon’ble Chairperson confirmed that
transfer of Technical Member (State) would be done within the State.
3.45 The Secretary clarified that there was neither an existing provision in the Act for setting up
separate State Tribunals nor had it been recommended by the GoM that there would be a State
Tribunal from which the appeal shall lie to the National Tribunal. He also clarified that the
provisions of the Act presently provide that there will be one Tribunal with National Bench and
Regional Benches to decide matters of inter-state supply and for all other matters related to taxation
there will be State Benches and Area Benches within the State. Therefore, the proposal is for one
Tribunal with Benches. The proposal that has been made as regards the appointment of Judicial
Member and Technical Member (Centre), the ScSC would consist of Secretary from Central
Government and the Chief Secretary of any State nominated by the Council. Secretary also
clarified that as proposed by the Hon’ble Convener of the GoM, the ScSC for selection of Technical
Member (State) can be amended to include the Chief Justice of the High Court, Chief Secretary of
the State along with a Secretary level officer nominated by the State.
3.46 After detailed discussions, the Council decided that there should be one GST Appellate
Tribunal with a Principal Bench and State Benches. Each Bench of the Appellate Tribunal would
consist of four members i.e. two Judicial Members and two Technical Members, one Member from
Centre and one from the State but in all cases where the input tax credit involved, or fee/fine/penalty
imposed does not exceed Rs. 50 lakh rupees, it would be heard by a single Member and in all other
cases, it shall be heard by minimum one Judicial Member and one Technical Member.
3.47 Regarding the constitution of the ScSC for Technical Member (State), the Council agreed
with the proposal of GST Council Secretariat that the committee shall consist of the Chief Justice of
the High Court, where the Bench is located; senior-most Judicial Member in the State, and where no
Judicial Member is available, a retired Judge of the High Court in whose jurisdiction the State Bench
is located, as may be nominated by the Chief Justice of such High Court; Chief Secretary of the
State in which the Bench is constituted and one Additional Chief Secretary/Principal
Secretary/Secretary of the State in which the State Bench is located as may be the nominated by such
State Government. Regarding the ScSC for appointment of other Members, it was agreed to go ahead
with the recommendations made by GoM.
3.48 The Hon’ble Chairperson directed the Secretary to the Council to make a draft of the
changes proposed consequent to the discussion in the Council and to circulate it electronically
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among the Members to invite their comments and thereafter, to make further changes to the draft.
3.49 The Secretary proposed that the Council may authorise the Hon’ble Chairperson to finalise
the draft and proposed for the closure of the GoM on GSTAT.
3.50 The Council agreed to authorise the Hon’ble Chairperson to finalise the draft and also
agreed to close the GoM on GSTAT.
Agenda item 3: Ratification of the Notifications, Circulars and Orders issued by the GST
Council
4.1 The Secretary took up the next agenda pertaining to ratification of the Notifications,
Circulars and Orders issued by the GST Council at Sr No. 3 (page no. 130-133 of the agenda).
4.2 The Hon’ble Member from Delhi referred to the Circular No. 189/01/2023-GST dated
13.01.2023 (on page 133) of the Agenda No 3 and stated that Kachri Papad is being taxed at 18%
whereas Papads are taxed at Nil rate and suggested that Kachri Papad should be taxed at 5% or nil
rate and he also submitted a representation on this matter to the Chairperson. The Secretary took note
of this suggestion and assured that the issue would be taken up by the Fitment Committee and would
be presented in future GST Council meeting.
4.3 The Hon’ble Member from Tamil Nadu raised a technical concern on Circular No.
187/19/2022-GST dated 27.12.2022 (Page No. 133) pertaining to said agenda which states that
proceedings finalized against the corporate debtor under Insolvency and Bankruptcy Code, 2016,
reducing the amount of statutory dues payable shall become final under Section 84 of the CGST Act.
Hon’ble Member stated that the actual power to write off is only vested in the Government and it is
not vested in this code. Although it could be sent as a recommendation to the Government, only the
Government actually could write off its dues.
4.4 Pr. Commissioner, GST Policy Wing clarified that this issue was discussed in Law
Committee and was taken up in the last GST Council meeting. Section 84 of CGST Act provides that
if any Government dues are reduced in any proceeding then the concerned Commissioner shall give
intimation of the reduced amount to the concerned person and to the appropriate Authority with
whom the recovery proceedings are pending .The view was taken that the proceedings which are
conducted under IBC also relate to reducing the amount of liability and are covered under Section 84
of CGST Act and thus such orders shall have the effect of reducing the Government dues under
CGST/SGST/IGST Act. So, the Law Committee had taken the view that the Commissioner can issue
intimation under DRC 25 under Rule 161 of the CGST Rules reducing the amount of the liability and
then such amount can be reduced from the liability register.
4.5 The Hon’ble Minister from Tamil Nadu stated that the Commissioner would be acting
without the actual consent of the Finance or other department while removing the liability from
the books and that there may be requirement of some additional paper work or procedure to validate
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it. Principal Commissioner, GST Policy Wing requested Tamil Nadu to send the reference to Law
committee in this regard so that Law Committee can examine it in detail.
Agenda item 4 - Recommendations of the Law committee for the consideration of the GST
Council.
Agenda Item 4(i): Amendment in Section 23 of the CGST Act, 2017
5.1 The Principal Commissioner, GST Policy Wing gave a presentation (Annexure-4). He stated
that Agenda item 4(i) is regarding amendment in the Section 23 of CGST Act. In the 48th GST
Council meeting, it was recommended to give overriding effect to Section 23 of CGST Act over
Section 24 and sub-section (1) of Section 22 of the CGST Act retrospectively with effect from
01.07.2017 so as to provide exemption from mandatory registration for small traders for intra-state
supply of goods through e-commerce operators. However, the said amendment has created an
anomaly that persons, who are required to pay duty under reverse charge mechanism on their inward
supplies, would not be required to get registered if they are otherwise not making any taxable
supply themselves, which was not the intention behind the said amendment. To correct this anomaly,
the Law Committee has recommended after detailed discussions that the Section 23 of CGST Act be
amended retrospectively with effect from 01.07.2017 to give overriding effect only to sub-section
(2) of Section 23 (and not to sub-section (1) of section 23) over Section 24 and sub-section (1) of
Section 22 of CGST Act. This was agreed to in the officer’s meeting held on 17.02.2023 also.
The Council agreed with the said recommendation of the Law Committee.
Agenda Item 4(ii): Proposal to extend time period mentioned in Section 62(2) of the CGST
Act, 2017
5.2 The Principal Commissioner, GST Policy Wing informed that the Agenda Item 4(ii) is
regarding an amendment in the Section 62 of CGST Act. He stated that presently when the return is
not filed under Section 39 or Section 45 of CGST Act, even after service of a notice under Section
46 thereof, then best judgment assessment order can be issued by the proper officer under subsection (1) of Section 62. If the return is filed within 30 days of the service of the said
assessment order, then the said assessment order (AO) is deemed to be withdrawn as per provisions
of sub-section (2) of section 62. It was represented by some tax administrations that in many cases,
the taxpayers file the return after a period of 30 days of the service of the assessment order, due to
which such assessment orders are not deemed to be withdrawn and therefore, the liability created by
the AO remains in the books of accounts. However, as the taxpayer has already filed the return(s) and
has paid his liability, therefore the liability created by the assessment order needs to be removed from
the liability register. So, there was request to extend the time limit for deemed withdrawal of the best
judgment AO. The issue was deliberated by the Law Committee and the Law Committee
recommended that the period of 30 days for deemed withdrawal of AO may be increased to 60 days,
which could further be extended by another 60 days on payment of prescribed additional late fee.
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5.2.1 The Principal Commissioner, GST Policy added that the Law committee also recommended
that in all the past cases where the returns could not be filed within 30 days of the best judgment
assessment orders, one time amnesty may be provided to the tax payers for conditional deemed
withdrawal of such assessment orders if the said returns are filed along with due interest and late fee
upto a specified date, irrespective of whether the appeal has been filed or not against the assessment
order, or whether the said appeal has been decided or not. He also mentioned that if approved by the
GST Council, the date for the amnesty scheme may be finalized in consultation with GSTN, based
on readiness of the portal for implementation of the same.
5.2.2 Hon’ble Member from Tamil Nadu suggested that the time period under Section 62(2) of
CGST Act, 2017 may be increased to 90 days, instead of 60 days with an additional 60 days as
proposed, to synchronize it with the time limit of filing of appeal or recovery.
5.2.3 The Principal Commissioner, GST Policy Wing clarified that the period of 60 days, with an
additional period of 60 days, has been recommended by the Law Committee to align it with the time
period of appeal which is 90 days, extendable by another 30 days by the Appellate Authority.
The Council agreed with the said recommendation of the Law Committee. Council also
recommended that the date for amnesty scheme may be finalized based on preparedness of the portal.
Agenda Item No. 4(iii) - Change in Place of Supply of transportation of goods under Section 13(9) of
the IGST Act, 2017
5.3 Principal Commissioner, GST Policy Wing stated that the third agenda is about the change
in place of supply of transportation of goods under Section 13(9) of IGST Act 2017. He said that in
the 48th GST Council meeting, it was decided to delink the place of supply of service of
transportation of goods, in cases where both the supplier of services as well as the recipient of
services are located in India, from the destination of the goods. Section 13 of the IGST Act 2017
provides for “Place of supply” of services where the location of supplier of services or location of
recipient of services is outside India and it provides that the place of supply of services of
transportation of goods, other than by way of mail or courier, shall be the destination of goods. The
issue was deliberated by the Law Committee, which has recommended that to remove this anomaly,
sub-section (9) of section 13 of IGST Act may be omitted so that by default rule, the place of supply
of services of transportation of goods, in cases where the location of supplier of services or location
of recipient of services is outside India, shall become the “location of the recipient” only.
The Council agreed with the said recommendation of the Law Committee.
Agenda Item 4(iv): Rationalisation of late fee for FORM GSTR-9 and amnesty for non- filers
of FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10
5.4 The Principal Commissioner, GST Policy Wing stated that while the late fee for delayed
filing of FORM GSTR-1, FORM GSTR-3B, FORM GSTR-4 and FORM GSTR-7
has already been rationalized from June 2021 onwards, based on the recommendations of the Council,
however, the late fee for delayed filing of annual return in FORM GSTR-9 has not been rationalized
as yet. Requests have been received from various stake holders as well as tax administrations for
rationalization of late fee for delayed filing of annual returns. He further stated that requests have also
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been received from taxpayers as well as tax administrations to provide an amnesty scheme for waiver/
reduction of late fee for non-filers of FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10.
5.4.1 He stated that the same was deliberated by the Law Committee and the Law Committee has
recommended that late fee for delayed filing of annual return may be rationalized for the
taxpayers having aggregate turnover upto Rs. 20 crore in a financial year. He informed that the Law
Committee has recommended two slabs. First slab for Registered persons having an aggregate
turnover of upto Rs. 5 crore in the said financial year, for which the recommendation is to reduce the
existing late fee of Rs 100/- + Rs 100/- (CGST & SGST respectively) per day, subject to maximum
of 0.25% of the turnover, to Rs 25/- per day, subject to a maximum of an amount calculated at 0.02
percent of the turnover in the State or Union territory, under CGST Act with similar late fee under
SGST Act. The second slab for Registered persons having an aggregate turnover of more than Rs. 5
crore and upto Rs. 20 crore in a financial year, for which late fee has been proposed to be reduced to
Rs 50/- per day subject to a maximum of an amount calculated at 0.02 percent of the turnover in the
State or Union territory, under CGST Act with similar late fee under SGST Act. He stated that as per
the slabs provided, maximum late fee for delayed filing of annual return would be Rs 20,000/- for the
taxpayer with aggregate turnover of Rs 5 crore and would be Rs 80,000/- for the taxpayer with
aggregate turnover of Rs 20 crore.
5.4.2 He further stated that Law Committee has also recommended one time Amnesty Scheme for
non-filers of FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 as per the Agenda. He
informed that Amnesty Schemes for non-filers of FORM GSTR-1 and FORM GSTR-3B were
brought a number of times in the past. In respect of non-filers of FORM GSTR-4, amnesty schemes
have been brought twice, but was not brought out last time, when amnesty scheme was brought out
for FORM GSTR-1 and FORM GSTR-3B. He stated that no such amnesty schemes have been
brought out yet for non-filers of FORM GSTR-9 and FORM GSTR-10.
5.4.3 He also mentioned that waiver/ reduction of late fee under the proposed Amnesty scheme
would be applicable only if the said returns are filed during a specified period of three months, as
proposed in the Agenda. He further stated that the specified time period for the proposed amnesty
scheme may be finally decided, if approved by the GST Council, on the basis of preparedness of the
GSTN portal for the implementation of the scheme and after consultation with GSTN.
5.4.4 The Hon’ble Member from Rajasthan thanked Law Committee for providing the Amnesty
scheme for FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 and stated that Rajasthan
Government has taken an initiative in its Budget 2023-24 to provide Amnesty scheme in respect
of FORM GSTR – 1 and FORM GSTR –3B and has waived off the share of state for the late fee,
which will be borne by the state. He stated that this will ensure greater return filing and would
eliminate the hurdles. He suggested that the proposed Amnesty scheme for non-filers should be
extended to FORM GSTR-1 and FORM GSTR-3B also, considering the condition of the MSMEs.
5.4.5 The Principal Commissioner, GST Policy Wing mentioned that this was deliberated by the
Law Committee in detail and it was observed that the Amnesty schemes for non-filers of FORM
GSTR-1 and FORM GSTR-3B have been brought out a number of times. Law Committee took a
view that there is no need for an amnesty scheme again for non-filers of FORM GSTR-1 and FORM
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GSTR-3B, as the filing for both these Returns has now been systematically improved and stabilized.
5.4.6 The Hon’ble Chairperson clarified that irrespective of the emulate worthiness of the different
practices followed by different States, the GST Council cannot advise any State to follow any
practice followed by a particular State. She further stated that if any State finds any other State
practices appealing and fit for its functioning, then the State has the autonomy to independently
implement such practices. Further, the Hon’ble Chairperson, as Union Finance Minister informed
that in the Finance Budget 2023-24, the MSME Sector has been substantially taken care of and
various measures have been taken for the MSME Sector. She further stated that number of
provisions had been provided in the Budget 2023-24 for the benefit of MSMEs, including the
provision that if any payment due to a micro or small enterprises is not paid by the PSUs within the
time limit as specified, then they will not be able to claim offset within that financial year. Legal
provisions have been made where all PSUs under Centre have been instructed to clear the payments
due to MSMEs within the due 45 days for claiming the offset for that year. However, such
instructions are not applicable for PSUs under State. She further stated that this provision has been
brought out to promote timely payments to MSMEs. She clarified that both the Centre and States are
taking substantial measures to protect and promote the MSMEs in best possible way.
5.4.7 Hon’ble Member from Tamil Nadu expressed his apprehension regarding reduction on the
cap of late fee from 0.25% to 0.02% which would be a huge drop by cutting it to almost 90% and
whether such steep reduction would act as a deterrence for delayed filing of annual return in FORM
GSTR-9. He queried whether capping the late fee at an amount of Rs 80,000/- could be
deterrent for a taxpayer having an aggregate turnover of Rs 20 crore. He stated once the penalty
becomes stagnant to a certain amount, then it would not matter to the taxpayer for delaying the filing
of return after that point of time, and thus, it would not act as a deterrent for non-filing of the Return.
He mentioned that it needs to be seen whether it would be rational to reduce the capping of 0.25% to
0.02% in one step to facilitate trade or would there be any negative impact of reducing the upper
limit. He also stated that the upper limit should be such that it is a deterrent for delayed filing of the
return to keep the system intact. He further suggested that instead of going to 0.04% (0.02% +
0.02%) from 0.5% (0.25%
+0.25%) in the one go, it would be more rational to reduce it to 0.1%.
5.4.8 The Secretary then stated that the setting up of upper limit is open for discussion and
clarified that earlier the upper limit was 0.5% (0.25% + 0.25%) of the turnover and the
recommended upper limit is 0.04% (0.02% + 0.02%) of the turnover. He further emphasized that the
upper limit is on the turnover and not the profit and it was felt by the Law Committee that the 0.5%
of the turnover is high, thus, it was recommended by the Law Committee to reduce the upper limit to
0.04% but it could be reconsidered by the Council.
5.4.9 Hon’ble Member from Maharashtra welcomed the reduced upper limit and stated that it
could be accepted as it is only for the late fee and not interest. He supported the recommendation of
the Law Committee and stated that when we are promoting ease of doing business, then giving such
relief for late filing would not hamper anything and a very high late fee should not be insisted upon.
5.4.10 Hon’ble Minister from Haryana supported the Law Committee recommendations and stated
that there are already various penalties for other returns and the reduced upper limit of Rs 20000/-
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for Rs 5 crore turnover would be more than enough as late fee for GSTR-9.
The Council agreed with the said recommendations of the Law Committee along with the draft
Notifications. Council also recommended that the date for amnesty scheme may be finalized based
on preparedness of the portal.
Agenda Item 4(v) Amendment in CGST Rules and Notification for Biometric –based Aadhaar
Authentication of registration applicants
5.5 The Principal Commissioner, GST Policy Wing informed that rule 8 and rule 9 of CGST
Rules have been amended with effect from 26.12.2022 vide Notification No. 26/2022- Central Tax,
based on the recommendations of the Council in 48th meeting, to mandate biometric-based
authentication of Aadhaar for high-risk applicants and also to provide for exemption from such
biometric-based authentication in States/ UTs other than State of Gujarat. However, the said
amendments has resulted in certain anomalies, as detailed in the agenda. He mentioned that Law
Committee deliberated on the matter and recommended that rule 8 of CGST Rules may be amended
with effect from 26.12.2022 to substitute sub-rule (4A) and to amend sub-rule (4B) as detailed in the
agenda. Law Committee has also recommended that Notification No. 27/2022- Central Tax dated
26.12.2022 may also be amended with effect from 26.12.2022 to correct the anomaly. The Secretary
sought for the comments from the members in case they did not agree with the amendments
recommended by Law Committee.
The Council agreed with the said recommendations of the Law Committee along with the draft
Notifications.
Agenda item 4(vi): Extension of time limit for application for revocation of cancellation of
registration
5.6 Principal Commissioner (GST PW) informed that a recommendation has also been made by
the Law Committee for extension of time limit for filing application for revocation of cancellation of
registration, as a facility for the benefit of MSME Sector. He mentioned that a number of taxpayers
could not file their application for revocation of cancelation of registration within the time limit
specified under Section 30 of CGST Act. He stated that representations have been received to the
effect that the present time limit of 30 days plus 30 days plus 30 days for applying for revocation of
cancellation of registration under section 30 is quite less and there is a need to increase this time
limit. Representations have also been received that in large number of cases, small taxpayers could
not apply in time for revocation due to lack of funds or other reasons, adversely affecting business
and there is a need to bring them again in mainstream by giving them a chance to revive their
registrations.
5.6.1 He added that primarily, there were two recommendations of the Law committee regarding
this agenda. The first recommendation is that the time limit for making an application for revocation
of cancellation of registration may be raised from 30 days to 90 days and then, Commissioner or an
officer authorized by him in this behalf can further extend this time period for a further period not
exceeding 180 days on sufficient reason being shown. Law Committee also recommended that
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timelines for filing application for revocation of cancellation of registration may not be hard-coded
in the Act and may be prescribed through the Rules, for which section 30 of CGST Act and Rule 23
of CGST Rules may be amended as detailed in the agenda. The second recommendation of the Law
Committee was that an amnesty scheme may be provided for filing of application of revocation of
cancelation of registration in past cases where such application could not be filed within prescribed
time limit and where the registrations have been cancelled due to non-filing of returns. He added that
during the officers’ meeting, it was suggested that the dates for the said amnesty scheme could be
finalized in consultation with GSTN, based on the readiness of the portal.
The Council agreed with the recommendations of the Law Committee made in agenda
item 4(vi), along with the suggestion made in the Officers’ meeting.
Agenda item 4(vii): Extension of time limit under sub-section (10) of section 73 of CGST Act
for FY 2017-18, FY 2018-19 and FY 2019-20.
5.7 Principal Commissioner (GSTPW) informed that there have been requests from tax
administrations for further extension of time limit under Section 73 of CGST Act for issuance of
Show Cause Notices (SCN) and Orders for financial year 2017-18, 2018-19 and 2019-20, considering
that the scrutiny and audit were delayed because of Covid-19 pandemic. He informed that the issue
was discussed by the Law Committee and it was observed that earlier, such extension was given for
the F.Y. 2017-18. It was felt by the Law Committee that while there may be a need to provide
additional time to the officers to issue notices and pass orders for FY 2017-18, 2018-19 and 2019-20
considering the delay in scrutiny, assessment and audit work due to COVID-19 restrictions, however,
the same need to be made in a manner such that there is no bunching of last dates for these financial
years as well as for the subsequent financial years. After detailed deliberations, Law Committee
recommended that such time limits may be extended for another three months each for the FY 2017-
18, 2018-19 and 2019-20. It was discussed in detail in officers meeting where one view was that
extension for FY 2017-18 had already been given and further extension may create a perception that
it is not a tax friendly measure and against the interest of taxpayers.
5.7.1 The Secretary stated that the Law Committee has recommended the extension of time limit
for issuance of SCN and orders. However, the time period for issuance of notices and passing orders
for these financial years has already been extended considerably due to extension in due dates of
filing annual returns for the said financial years. Further, for FY 2017-18, the date of passing order
has already been extended till September 2023. It has been proposed to extend it further from
September 2023 to December 2023. He mentioned that while the request of some of the tax
administrations was to extend the time limit for a longer period, however, keeping the taxpayers’
interest in mind, the Law committee has recommended an extension of only three months for these
three financial years. Since all the states have agreed, the said time limits could be extended.
5.7.2 Hon’ble Member from Bihar stated that while this proposal could be considered, however, it
should be decided that such an extension in timelines for these financial years under sub-section (10)
of section 73 of CGST Act is being made for the last time.
The Council agreed with the recommendation of the Law Committee made in agenda
item 4(vii), along with the proposed notification.
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5.8 Hon’ble Member from Himachal Pradesh stated that he wanted to raise one Agenda
concerning the Law Committee. He stated that his concerns related to wrong interpretation of place
of supply by the adjoining states resulting in huge loss to the State. He informed that the matter was
listed in the agenda for the 37th Council meeting and thereafter, the issue has not been placed as an
agenda despite the State raising the matter. He stated that the State had given suggestions for
resolution of the issue by amending section 10 (1) of the IGST Act and that the State has been losing
considerable revenue for the last four years due to delay in addressing the said issue. He informed
that due to less vehicle agencies in Himachal Pradesh, people buy their vehicles from other States
and get these vehicles registered in Himachal Pradesh, resultantly Himachal Pradesh does not get any
tax benefit .He stated that he hoped that the issue would be addressed in the next GST Council
meeting. Principal Commissioner (GSTPW) informed that that this issue was taken up by the Law
Committee and two contradictory views emerged on the issue, due to which the Law Committee has
not been able to reach a conclusion. He assured that this issue would be taken up again in the
Law committee meeting and would be taken up in the future GST Council Meeting.
Agenda item 5: Recommendations of the Fitment Committee for the consideration of the GST
Council
6.1 The Secretary introduced the agenda item relating to the recommendations of the Fitment
Committee. These recommendations had been given in four (04) Annexures where the first three
related to Goods and the fourth one related to Services. The first Annexure provided details of the
items (Goods) where tax rate changes or clarifications were being recommended; the second
Annexure listed items (Goods) where no tax rate changes were being recommended and the third
Annexure listed items (Goods) where the issues were deferred by the Fitment Committee for further
examination in relation to Goods. The fourth Annexure listed the recommendations for making
changes in GST rates or for issuing clarifications in relation to Services.
6.2 The Secretary to the Council stated that the recommendations of the Fitment Committee
were discussed in detail in the Officer’s Meeting on 17.02.2023 and most of recommendations were
agreed to by all. The Secretary then asked the Principal Commissioner, GST Policy Wing, CBIC to
take the Council through a brief presentation on the recommendations of the Fitment Committee.
6.3 Principal Commissioner, GSTPW gave a presentation (Annexure-5). He stated that there
were five agenda items where the Fitment Committee had recommended the changes in the Tax rate
or issuance of clarifications which were in Annexure-1 of the Fitment agenda. The first issue
pertained to tax rate on Rab on which a clarification was issued pursuant to the last GST Council
meeting that Rab would be classified under HSN 1702 with GST rate of 18%. He stated that Uttar
Pradesh had brought up the matter and Fitment Committee after detailed discussions agreed that Rab
was liquid form of Jaggery. Fitment Committee recommended similar tax rates for Rab as exists for
Jaggery i.e. 5% if sold in pre-packaged and labelled form and NIL if sold otherwise.
6.4 The Hon’ble Member from Tamil Nadu suggested that since all Hon’ble Members had
gone through the Fitment Agenda therefore only objections from Hon’ble Members might be sought.
6.5 The Hon’ble Member from Uttar Pradesh stated that their State had brought up this agenda
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and Rab was a liquid form of Jaggery. He agreed with the recommendation of the Fitment
Committee that similar tax rates should be applicable on both Rab and Jaggery.
Decision: The Council agreed with the recommendation of the Fitment Committee to reduce
the tax rate on Rab as it exists for Jaggeryand to clarify that the issue for the past periods may
be regularized on as is basis.
6.6 The Secretary sought the opinion of Hon’ble Members on the recommendation of the
Fitment Committee to reduce the tax rate on pencil sharpener from 18% to 12%.
Decision: The Council agreed with the recommendations of the Fitment Committee to reduce
the GST rate on pencil sharpener from 18% to 12%.
6.7 The Hon’ble Member from Punjab thanked the Council for reducing the tax rate on Pencil
Sharpeners.
6.8 The Secretary then sought the opinion of the Hon’ble Members on recommendations of the
Fitment Committee regarding IGST exemption to a Tag, tracking device or data logger affixed on
durable container at the time of import, as is available to container under Customs notification
104/94-Cus ; and amendment of the entry at Serial number 41A of Notification number 1/2017-
Compensation Cess (Rate) pertaining to exemption from compensation Cess on coal rejects when
supplied to and by a coal washery on which Compensation Cess had already been paid subject to the
condition that no ITC has been availed by any person.
Decision: The Council agreed with the recommendations of the Fitment Committee and
recommended to explain that a tag, tracking device or data logger already affixed on a
container of durable nature at the time of import shall be eligible for IGST exemption, as is
available to the said container under the notification 104/94-Cus and also agreed that no such
exemption would be available to tags, tracking devices and data loggers when imported
separately. The Council also agreed for amendment of the entry at Serial number 41A of
Notification number 1/2017-Compensation Cess (rate) as recommended by the Fitment
Committee.
6.9 The Secretary then requested the opinion of the Hon’ble Members on reduction in the GST
rate on Millet based health mix products consisting at least 70 % of Millets. He informed the Council
that this matter was discussed at length during Officers’ Meeting and it was felt that this issue
required further examination by Fitment Committee as regard to the products which would be
covered in this category along with their classification. He stated that if the Council agreed, the
matter might be deferred.
6.10 The Hon’ble Member from Odisha stated that Millets are a seeded grass with high
nutritional value and which are traditionally grown in Odisha. He stated that Odisha had a special
Millets promotion mission and suggested that the recommendation of the Fitment Committee was
good and acceptable however the percentage of Millets in the product mix should be brought down
from 70% to 50%.
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6.11 The Hon’ble Member from Rajasthan stated that the composition of Millet in the product
should remain at 70% because if it is reduced then bigger market players would come up with their
products to avail benefit of reduced taxes.
6.12 The Hon’ble Chairperson sought the opinion of other Hon’ble Members on the suggestion of
Hon’ble Member from Odisha that the percentage of Millets in the product mix should be brought
down from 70% to 50% and that if there was agreement on the issue, Council could recommend the
same otherwise if agreed to all Hon’ble Members, the matter might be referred back to the Fitment
Committee for further examination.
6.13 The Hon’ble Member from Haryana stated that he was in agreement with suggestion of
Hon’ble Member from Odisha that the percentage of Millets in the product mix should be brought
down from 70% to 50% as this is the international year of Millets.
6.14 The Hon’ble Chairperson stated that reducing the percentage of Millet in the product mix
would not benefit the Millet growers much.
6.15 The Hon’ble Member from Bihar stated that the percentage of Millets in the product mix
should be kept at 70%.
6.16 The Hon’ble Member from Uttar Pradesh suggested that the matter should be referred back
to the Fitment Committee for further examination.
Decision: The Council agreed to send back the proposal to the Fitment Committee for further
examination.
6.17 Principal Commissioner, GSTPW then presented the Fitment agenda pertaining to the goods
where no changes had been recommended by the Fitment Committee. He stated that in this agenda
one proposal was for reduction of GST rate on Tendu leaves which was proposed by Hon’ble
Member from Odisha in the last GST Council meeting. He informed that Odisha, Madhya Pradesh
and Chhattisgarh were invited to the Fitment Committee meeting for their views on the issue. Odisha
requested for reduction of GST rate on Tendu leaves from 18 % to Nil or 5% whereas Madhya
Pradesh and Chhattisgarh were of the opinion that no rate reduction should be recommended on
Tendu leaves as post GST the trading of Tendu leaves had increased. In view of this Fitment
committee had suggested no change in GST rate on Tendu leaves. He further informed the Council
that in the Officers Meeting, Telangana also supported the reduction in tax rate on Tendu leaves,
however besides Telangana and Odisha, all other States were not in favour of any change in GST
rate on Tendu leaves.
6.18 The Hon’ble Member from Odisha stated that in case Tendu leaves were exempted from
GST, there would not be any loss in revenue to both the State and Central Governments. He further
stated the Tendu leaves had no other use except making Bidis where the GST rate was already at
highest slab of 28%. He also stated that initially the Fitment Committee had recommended 5% tax on
Tendu leaves and even in VAT era the tax rate was 5 % on this item.
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6.19 The Hon’ble Chairperson enquired whether tax reduction on Tendu leaves would benefit the
tribal people who are collecting Tendu leaves or the traders who were aggregating the Tendu leaves.
6.20 The Hon’ble Member from Odisha stated that the rate reduction on Tendu leaves would
eventually help the Tendu leave pluckers/collectors mostly Tribal women numbering approximately
8 Lacs in his State.
6.21 The Hon’ble Member from Maharashtra stated that as per the Panchayat Extension to
Scheduled Areas (PESA) Act, 1996, the ownership of Tendu leaves has now gone to the Tribal
community and it was the Forest department which conducts the auction to help the Tendu leave
collectors.
6.22 The Hon’ble Member from Madhya Pradesh welcomed the recommendation of the Fitment
Committee suggesting no change in tax rate of Tendu leaves and stated that his state is leading
producer of the Tendu leaves in the country with 25% share in Tendu leaves collection. He stated that
in Madhya Pradesh, there is a three tier co-operative mechanism for procurement of Tendu leaves
and the incidence of tax is on District cooperatives and not on Tendu leaves collectors as GST on this
item is applicable on RCM basis. He further stated that post GST there has been no negative impact
on Tendu leaves collection and in Madhya Pradesh 75% of the profit from Tendu leaves is given
back to the tribal community for their welfare. He further requested that Madhya Pradesh should be
included into the Fitment Committee.
6.23 The officer from Chhattisgarh also supported the recommendation of the Fitment Committee
suggesting no change in tax rate of Tendu leaves.
6.24 The Secretary stated that out of three States, Madhya Pradesh and Chattisgarh were in favour
of status quo however Odisha is supporting reduction in tax rate on Tendu leaves. He further stated
that there might be implication for other States also since GST is a consumption/destination based
taxation. He further stated that the view of Hon’ble Member from Odisha was correct that there was
no tax implication provided that there was no evasion. He further stated that in order to bring the
unorganized sector of Tendu leaves into the supply chain, tax was levied on supply of this produce
on RCM basis.
6.25 The Hon’ble Member from Andhra Pradesh supported the view of Odisha that if the GST on
Tendu leaves was reduced, then the aggregator might pass on some benefit of tax reduction to the
Tendu leave pluckers.
6.26 The Secretary stated that if all Hon’ble Members agreed, then the tax rate might be reduced
to 5% on RCM basis which would ensure that the item would remain within the value chain while
benefit could accrue to the pluckers.
6.27 The officer from Telangana suggested reducing the GST rate on Tendu leaves.
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6.28 The Secretary stated that the tax rate on Tendu leaves was discussed in the 15th meeting of
the GST Council and though the recommendation of the Fitment Committee was for 5% but the
Council decided to levy 18% GST on Tendu leaves. It was deliberated again in the Council, however
no change was recommended. He stated that as it was a Council decision, the Council might
continue with no change in the GST rate on Tendu leaves.
Decision: The Council agreed with the recommendation of the Fitment Committee for
retaining the GST rate on Tendu leaves.
6.29 Principal Commissioner, GSTPW stated that the second issue was regarding GST rate
reduction on ship and vessels for breaking up as proposed by Ministry of Shipping. He stated that in
the Officers meeting, there was consensus to maintain the status quo on this item.
Decision: The Council agreed with the recommendation of the Fitment Committee for
retaining the GST rate onship and vessels imported for breaking up.
6.30 Principal Commissioner, GSTPW stated that the next agenda was regarding compensation
cess on utility vehicles like SUV and MUV which emerged from the last Council meeting. Haryana
was asked to come up with a proposal for the examination by the Fitment Committee. However,
during examination of the proposal, it was found that further examination was required in this matter
and accordingly the Fitment Committee recommended for deferring the matter.
6.31 The Hon’ble Member from Haryana suggested that the entry 52A and 52B of the
Notification number 1/2017-Compensation Cess (rate) may be merged into one category with
uniform Compensation Cess rate of 22% which would resolve the whole issue without requirement
of any further examination.
6.32 The Commissioner, GSTPW clarified that Fitment Committee would examine the merging
of entry 52A and 52B of the Notification number 1/2017-Compensation Cess (rate) and matter
would be presented again before the Council.
Decision: The Council agreed with the recommendation of the Fitment Committee regarding
deferring this matter for further examination by the Fitment Committee and to be brought
back before the GST Council in the next meeting.
6.33 Principal Commissioner, GSTPW stated that there were two agenda points regarding
services (Annexure-IV). The first issue was to exempt the services supplied by the National Testing
Agency and similar other agencies of Central and State Governments by way of conduct of entrance
examination for admission to educational institutions. The Fitment Committee had recommended for
insertion of an explanation in notification number 12/2017- CT(R) dated 08/06/2017 which was
discussed in the Officers meeting and agreed to. He further stated that the other agenda on services
was to examine whether the services supplied by the Courts/ Tribunals which are commercial in
nature like renting of space to telecom towers and renting of lawyers chambers etc., can be taxed
under Reverse Charge Mechanism (RCM) The Fitment Committee recommended that same
dispensation with regard to payment of GST under RCM as applicable to Central and State
Governments might be extended to the Courts and Tribunals also. There was consensus in the
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Officers meeting on this.
Decision: The Council agreed with the recommendations of the Fitment Committee regarding
the agenda points on Services as detailed in Annexure-IV.
6.34 The Hon’ble Member from Himachal Pradesh stated that Himachal Pradesh, Jammu and
Kashmir and Uttarakhand have a large apple based economy However’ the apple industry is getting
affected due to increase in the tax rate on carton boxes from 12% to 18%. He requested that the rate
on carton boxes may be reduced to 5% as this would help the apple growers in Himachal Pradesh,
Jammu and Kashmir and Uttarakhand. He requested that the issue may be got examined by the
Fitment Committee.
6.35 The Hon’ble Chairperson stated that since carton boxes are used in various industries and
not only for packaging fruits, the proposal to reduce tax rate on carton boxes used for packaging
horticulture produce only, as suggested by the Hon’ble Member from Himachal Pradesh, might
prove difficult to implement at ground level, based on the end use.
6.36 The Hon’ble Member from Maharashtra stated that they support the proposal of Himachal
Pradesh as in Maharashtra the mango growers use wooden packaging boxes which is detrimental to
environment. He also suggested that the reduced tax rate on carton boxes may be considered for
horticulture industry.
6.37 The Secretary stated that Himachal Pradesh may send a detailed representation in this regard
and Fitment Committee would examine the issue.
Agenda Item 6 : Report of Group of Ministers (GoM) on Capacity Based Taxation and Special
Composition Scheme in certain sectors on GST
7.1 The Secretary requested the Hon’ble Member from Odisha (Convenor of GoM) to present
Agenda Item 6 i.e. the Report of Group of Ministers (GoM) on Capacity based taxation and Special
Composition Scheme in certain sectors on GST.
7.2 The Hon’ble Member from Odisha thanked the Council for providing him with an
opportunity to deliberate on the issue as Convenor and he also thanked the members of GoM for
their cooperation, valuable inputs and excellent deliberations. He gave a presentation (Annexure-6)
and informed the Council that it was decided in the 42nd meeting of the GST Council to form a GoM
on Capacity based taxation and Special Composition Scheme in certain sectors on GST. The GoM
constituted vide OM No. S-31011/12/2021-DIR(NC)-DOR consisted of Sh. Manish Sisodia, Hon’ble
Deputy Chief Minister of Delhi; Sh. Dushyant Chautala, Hon’ble Deputy Chief Minister Haryana;
Sh. K.N Balagopal, Hon’ble Minister for Finance Kerala; Shri Jagdish Devda, Hon’ble Minister for
Finance Madhya Pradesh; Sh. Suresh Kumar Khanna, Hon’ble Minister for Finance Uttar Pradesh
and Sh. Subodh Uniyal, Minister for Agriculture Uttarakhand. The mandate of the GoM was to
examine the possibility levy of GST based on the capacity of manufacturing unit and special
composition scheme in certain evasion prone sectors like pan masala, gutka, brick kiln, sand mining
etc. with reference to the current legal provisions; to examine whether any change is required in legal
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provision to allow such levy; to examine the impact of such levy on the destination nature of current
GST design and to examine any other administrative or systemic mechanism to block leakage in this
sector and to examine the impact of levy on reverse charge on Mentha Oil and to examine if there
could be other class of supplies that could be subjected to reverse charge to augment revenue.
7.3 The Hon’ble Convenor of GoM informed the Council that the GoM had held three meetings.
The first meeting was held on 06th July, 2021, the second meeting was on 31st August, 2021 and the
third and the final meeting was held on 07th July, 2022. He then informed the Council that the GoM
had extensively deliberated on broad challenges associated with the complexity involved in the
implementation of Capacity based levy in this sector and stated that GST is a destination-based tax
on supply of goods and services and not on their production. He further asserted that the
Constitution does not provide authority for capacity based levy of GST. He also stated that capacity
based taxation is extremely complex and requires frequent changes in the rate structure and
emphasized that there are no further check and verification in supply chain which could lead to
revenue leakages. It was also emphasized that capacity-based taxation suppresses the competition
and goes against the small producers who are not capable of making huge investment in capital
infrastructure. He then pointed out that such system has deep rooted malice and may encourage
‘officer- producer’ collision at the level of jurisdictional officers.
7.4 The Hon’ble Convenor of GoM further discussed the international practices that are
common in this trade and stated that the GoM agreed that GST evasion is rampant in this sector. He
stated that tax evasion in tobacco products is an internationally common practise and emphasized
that alternate systematic enforcement and administrative mechanism needs to be devised to curb
evasion and enhance compliance. He then referred to track and trace method-an internationally
accepted practise to curb illicit trade in tobacco sector with the help of electronic means. He then
suggested options for enhancing compliances such as registration of details of machines and stated
that the manufacturer of tobacco products should take registration of each machine and should be
required to disclose the make, year of production, number of tracks and capacity of machine. He also
suggested for a Special Monthly Return indicating Machine wise/shift wise production and
disclosing details like machines disposed off, machine added and inputs procured and utilized in
quantity and value terms, product-wise and brand-wise details of clearance in quantity and value
terms, shift- wise records of reading of electricity meters and DG Set meter, waste generation stock,
etc. He also suggested certification of production capacity and stated that production capacity and
quantity in unit per pouch/container shall be duly certified by a registered Chartered Engineer. He
thereafter suggested that copy of declaration in respect of production capacity should be submitted to
other department/ agency/organization, etc. He then suggested for disclosure of details of nonworking/ partially working machines. The Hon’ble Convenor concluded the report and invited
comments from the Members of the Council.
7.5 The Hon’ble Member from Uttar Pradesh, who was also a member of the GoM thanked the
Hon’ble Chairperson for taking a special interest in capacity based taxation and special composition
scheme in certain sectors in GST. He stated that the report has a provision of Special Monthly
Return indicating machine wise/shift wise production and disclosing details like machine disposedoff, machine added, and inputs procured and utilized in quantity and value terms etc. He stated that if
the detail of labourers is also added in the return, it would help in verification and cross examination
of production. He also emphasized that sometimes large-scale manufacturers take registration in the
name of dummy persons in lieu of some remuneration and if the goods are seized, then the
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responsibility is fixed on the dummy person instead of the actual manufacturer and therefore, he
emphasized that more efforts are required to curb this practise. He stated that despite the keen interest
evinced by the Hon’ble Union Finance Minister of India in curbing such malpractices, there is a
large-scale black marketing in the trade of Pan Masala. He thereafter stated that there is large scale
evasion of tax in this sector as there is a high demand for these products in the market and even if
such evasion is eventually caught, dummy persons are prosecuted and actual offenders walk free. He
stated that if the recommendations of GoM are incorporated in totality, then the the supervisory
authority/ inspection authority will have tremendous power in their hands and there could be a
possibility to collude and manipulate the reports. He thereafter stated that such a capacity based
taxation system is not within the purview of existing GST laws. He thereafter put forth his other
point before the Council and suggested that the Council should ponder over as to which mechanism
should be adopted to prevent the evasion of tax and suggested that as per his understanding at least
70 percent of the tax should be deposited in advance from the manufacturer depending upon the
capacity of manufacturer, this measure could help curb the tax evasion to a great extent.
7.6 The Hon’ble Member from Rajasthan stated that there is a largescale black marketing in
trade of tobacco products which is needed to be curbed and therefore, it needs to be seen whether it
can be brought under capacity based taxation.
7.7 The Hon’ble Member from Madhya Pradesh stated that they had also received a suggestion
in GoM to implement track and trace mechanism as a useful remedy to curtail the tax evasion. He
requested the Council to consider this suggestion for checking the evasion.
7.8 The Hon’ble Member from Haryana stated that both cess and tax have been imposed on
these items but the proposal of track and trace mechanism on these items have been discussed
multiple times in the meetings of GoM for curbing tax evasion. He stated that it has been planned to
implement the track and trace mechanism by 2028. He suggested that the Council should target fool
proof implementation of track and trace mechanism on certain items within one year from the day
of publication of the report and he also mentioned that even the third world countries such as
Kenya are using track and trace mechanism to check evasion on tobacco products. He thereafter
suggested that the timeline of implementation by 2028 as agreed upon in the report is protracted and
the Council should consider reducing the said timeline. The Hon’ble Member from Rajasthan stated
that they have already implemented track and trace mechanism for VAT on alcohol in Rajasthan and
they requested the Council to consider the same for tobacco products.
7.9 The Secretary proposed that the Council could accept the report of GoM and that the
suggestions made by the GoM would be looked into in detail by the Law committee and fitment
committee including the track and trace method. He also stated that these committees would analyse
in detail as to whether Compensation Cess should be imposed on ad valorem basis as it is now or
whether specific rate can be imposed. He thanked the members of the GoM for the detailed
consultations on the issue and for coming up with a very comprehensive report.
7.10 The Hon’ble Member from Uttar Pradesh then requested the Hon’ble Chairperson to accept
the report of GoM however he emphasized that the matter should be forwarded to Fitment
committee/ Law committee to deliberate upon a possible solution to curb the tax evasion in this
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sector.
7.11 The Secretary sought the permission of the GST Council to close the GoM on Capacity
based taxation and Special Composition Scheme in certain sectors on GST. The Hon’ble
Chairperson thanked the Members of the GoM for their comprehensive report and also stated that the
suggestion of Hon’ble Member from Uttar Pradesh to find a possible solution to curb tax evasion
shall be considered by the Council.
The Report of the GoM was accepted by the Council.
Agenda Item 7: Closure of Group of Ministers (GoM) on levy of Covid Cess on Pharma and
Power Sector in Sikkim.
8.1 The Secretary proposed the closure of the GoM on levy of Covid Cess on Pharma and
Power Sector in Sikkim and thanked the Chairpersons and Member of these GoM for their detailed
report.
The GST Council approved the closure of the GoM on Pharma and Power Sector in Sikkim.
Agenda Item 8: Closure of Group of Ministers (GoM) to examine the feasibility of
implementation of e-way bill requirement for movement of gold and other precious stones.
9.1 The Secretary proposed the closure of the GoM to examine the feasibility of implementation
of e-way bills requirement for movement of gold and other precious stones and thanked the
Conveners and Members of these GoMs for their detailed report.
9.2 The Hon’ble Minister from Kerala stated that they had already made the presentation and the
GST Council had accepted it. The draft rules regarding e-way bills based on the recommendations of
the GST Council for making amendment to the Rule 138 of the CGST/SGST Rules had been
submitted to the GST Policy Wing and Department of Revenue, Government of India. The
amendments would enable the e-way bill to be modified to include particulars of movement of Gold
and precious stones within the State.
9.3 The Pr. Commissioner GSTPW stated that Law Committee has received the draft rules from
Kerala which will be discussed in Law committee and will be brought before GST council in the
future meeting.
9.4 The GST Council approved the closure of GoM to examine the feasibility of
implementation of e-way bills requirement for movement of gold and other precious stones.
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Agenda Item 9: Issues recommended by GSTN
10.1 The Secretary introduced the agenda regarding five issues proposed by the GSTN which are
as follows:
1. Proposed Changes in HR Policies and Transition Management from GSTN;
2. Proposal for Changes in the Revenue Model of GSTN and transition to the
new Revenue Model (as amended and circulated on 18/02/2023);
3. Waiver of Interest on delayed receipt of Advance User Charges (AUC) from
a few states and CBIC;
4. Data Archival Policy for the GST System; and
5. Implementation of facility to Generate Document Identification Number in
GST Back Office for Model 2 States in compliance with the Supreme Court
judgement in W.P 320 of 2022.
10.2 The Secretary informed the Council that revised revenue model of GSTN was discussed in
the officers meeting and based on the feedback received with respect to clause five on “Funding for
Future Capital Expenditure” it was noted that the proposed procedure for meeting capital expenditure
through grant-in-aid from tax administrations would not be appropriate. Further, sanction and the
accounting treatment would not be easy in the respective tax administrations as the Grant-in-aid is
given in very specific set of circumstances where as GSTN works as a company on a cost recovery
basis for the services provided. Therefore, this proposal was agreed to be dropped and clause five
was deleted from the draft.
10.3 The Secretary stated that it was further agreed in the officers meeting that the demand for
capital expenditure should also be incorporated in the advance user charges requested from tax
administrations by GSTN. Tax administrations would be provided separate accounting for Capex
and Opex. He proposed that in principle approval for this change in the draft revised revenue model
of GSTN may be given by the GST Council.
10.4 The Secretary further stated that above proposal would lead to drafting changes, for which a
preliminary draft was enclosed. The draft would be finalized by GSTN Board on the basis of in
principle approval of the GST Council as proposed above. He informed the Council that all
other proposed changes in this agenda remain the same.
10.5 The officer from Tamil Nadu stated that in the revenue model it was proposed that CAPEX
contribution would be made by the different States based on the number of users. He suggested that
instead, the CAPEX contribution should be based on the shareholding which would be more aligned
to the accounting principles since permanent assets would be created through CAPEX.
10.6 The Secretary clarified that this expenditure is not in the nature of capital expenditure which
was why the grant-in-aid model was not being proposed. This expenditure is being treated in the
nature of revenue expenditure by both Centre and States and for this reason this expenditure is being
proposed to be charged on the number of users and not as per shareholding. He further sought the
approval of the Council on the proposals of the GSTN as detailed in the agenda.
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Decision: The Council approved the proposals of the GSTN having taken note of the clarification
given by the Secretary recorded in para 10.6 above.
Agenda item 10: Recommendations of the 17th IT Grievance Redressal Committee
(ITGRC) for approval/decision of the GST Council
11.1 The Secretary presented the agenda item regarding recommendations of the 17th meeting of
the IT Grievance Redressal Committee (ITGRC) before the Council which had two major agenda
points. One pertained to the data fixes done by the GSTN as detailed in the agenda which was based
upon the SOP approved by the Council in its 45th Meeting at Lucknow. The second pertained to
reversal of interest on delayed filing of statement in Form GSTR-8 by three e-commerce operators
due to technical glitches as detailed in the agenda.
The GST Council approved the recommendations made by the ITGRC during its 17th
meeting.
Agenda item 11: Agenda on Report of Committee of Officers (CoO) on GST Audit along with
Draft Model All India GST Audit Manual
12.1 The Secretary took up the agenda on Report of Committee of Officers (CoO) on GST Audit
and informed that the Committee of Officers was constituted on GST Audit to prepare a draft Model
All India GST Audit Manual. The said Manual was discussed in detail in the Officer’s Meeting and
the suggestions made by officers from States have been incorporated in the Manual by way of an
additional note circulated in the GST Council Meeting.
12.2 The Secretary stated that if all the Members agreed then the draft GST Audit Manual can be
circulated for information to all States.
12.3 The Hon’ble Member from Tamil Nadu stated that it is a draft model and many States have
developed their own Audit Manual like Tamil Nadu. It was stated that it would be recommendatory
in nature and the States could take guidance and follow the good points from the Model All India
GST Audit manual.
12.4 In response of the Hon’ble Member from Tamil Nadu, the Secretary confirmed that this is
only a model Audit Manual for guidance to States and States are free to make their own GST Audit
Manual and proceed accordingly and the same is put up just for information of the GST Council.
Accordingly, same was being circulated.
Agenda Item 13: Decisions of GST Implementation Committee for the information of the
Council
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13.1 Principal Commissioner, GST Policy Wing in his presentation informed the Council that a
decision was taken by the GST Implementation Committee (GIC) regarding sharing of GST data
with Department of Telecommunications (DoT), Ministry of Communications and the same was
placed before the Council for information.
Decision: The Council took note of the decision of the GST Implementation Committee and
ratified the same.
Agenda Item 14: Ad-hoc Exemptions Orders issued under Section 25(2) of the Customs Act,
1962 to be placed before the GST Council for information
14.1 The Secretary presented the Agenda No. 14 i.e., Ad-hoc exemption orders issued under
Section 25(2) of the Customs Act, 1962 to be placed before GST Council for information. He
informed that in the 26th meeting of the GST Council held on 10.03. 2018, it was decided that all the
ad-hoc exemption orders issued with the approval of the Hon’ble Finance Minister as per the
guidelines contained in Circular No. 09/2014-Customs dated 19.08. 2014 as was the case prior to
the implementation of GST, shall be placed before the GST Council for information. The Secretary
informed the Council that two Ad-hoc exemption orders had been issued since last meeting of the
GST Council. One order dated 11/01/2023 pertained to ad-hoc exemption from duty and taxation for
the equipment and ammunition used for joint counter terrorism exercise (Tarkash-VI) and second
order dated 06/02/2023 pertained to ad-hoc exemption for import of Cheetahs by the National Tiger
Conservation Authority, Ministry of Environment, Forest and Climate Change.
Decision: The Council took note of the ad-hoc exemption orders issued.
Agenda Item 15: Review of the Revenue position under Goods and Service Tax
15.1 The Secretary presented the last agenda which is review of revenue position and informed
that there is good growth in the revenue and further hoped that the growth would continue this year
as well as the next year.
15.2 The Hon’ble Member from Kerala thanked the Hon’ble Chairperson for clearing the dues of
compensation cess to Kerala by June and informed that State’s growth of GST tax collection
increased by 25% in comparison to last year. He further requested to continue the payment of
Compensation Cess to States as there was a deficit of more than Rs.10,000/- crores even then
because of the Covid and two continuous floods in Kerala. He stated that this issue was discussed
earlier with the Hon’ble Union Finance Minister and it was very important issue as some States were
facing serious financial difficulties. The Hon’ble Member also stated that Revenue Rationalisation
Committee had reduced the taxes on luxury items from 28% to lower rates and that had affected their
total revenue neutral position.
15.3 The Hon’ble Member from Rajasthan thanked the Hon’ble Chairperson for clearing their
dues. He further informed that Rajasthan’s AG Audit for the F.Y. 21-22 was about to be completed
and requested to release the 80-90% of the total Compensation Cess without AG's certificate and the
rest could be adjusted later. The Hon'ble Member also requested to release the amount due to them
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for the F.Y. 21-22 before 31st March in this financial year.
15.4 The Secretary informed the Hon’ble Member that the 95% of the due amount is paid on
provisional basis and AG’s certificate is asked for the rest 5% and that the Hon’ble Finance Minister
had announced this earlier and letters had been sent to the Chief Secretaries of the States for sending
the AG’s certificate.
15.5 Further, the Hon’ble Member from Rajasthan raised the issue of extending the period of
Compensation Cess in support of Kerala.
15.6 Hon’ble Chairperson stated that it was impossible to extend period of Compensation Cess
legally. If it was extended, then revenue would have to be raised by imposing Cess on items having
28% GST but Compensation Cess had already been extended till 2026 to service the loans taken
during Covid. Further, extending the period of Compensation Cess would send the message to public
that States want more revenue by imposing more taxes on them.
15.7 The Secretary in his concluding remarks stated that they had very long and detailed in- depth
deliberations and sincerely thanked each and every Member for taking time out of their very busy
schedule in the budget session. Especially he thanked Honourable Minister of State of Finance and
the Honourable Minister of Finance and Corporate Affairs for taking out time on this holiday and
spending so much time and giving guidance. He gave special thanks to Members of the GoMs and
their Conveners for their valuable contribution. The recommendations made by the GoMs and
approvals given would be taken forward.
15.8 The Hon’ble Chairperson stated that the GST Council had discussed and accepted the
recommendations of the GoMs and extended her thanks to Conveners of the GoMs and thanked
everyone for their contribution.

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Annexure-1
List of Hon'ble Ministers from States/Uts who participated in the 49th Meeting of the GST
Council held on 18th February, 2023
S. No. Centre/States/Uts Name of Hon'ble
Minister Charge
1 GOI Smt. Nirmala
Sitharaman Union Finance Minister
2 GOI Shri. Pankaj Chaudhary Minister of State for Finance
3 Andhra Pradesh Shri Buggana
Rajendranath
Minister for Finance, Planning,
Legislative Affairs, Commercial
Taxes and Skill Development &
Training
4 Bihar Shri Vijay Kumar
Chaudhary
Finance and Commercial Taxes
Minister
5 Chhattisgarh Shri T.S.Singh Deo Minister, Commercial Tax (State
Tax)
6 Delhi Shri Manish Sisodia Deputy Chief Minister and Finance
Minister
7 Goa Shri Mauvin Godinho
Minister for Transport, Panchayati
Raj, Housing , Protocol and
Legislative Affairs
8 Gujarat Shri Kanubhai Desai Minister for Finance
9 Haryana Shri Dushyant Chautala Deputy CM and Excise & Taxation
Minister
10 Himachal Pradesh Shri Harshwardhan
Chauhan Industries Minister
11 Jammu and Kashmir Shri Rajeev Rai
Bhatnagar
Advisor to Hon'ble Lieutenant
Governor, UT of J&K
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12 Kerala Shri K. N. Balagopal Finance Minister
13 Madhya Pradesh Shri Jagdish Devda Minister for Finance, Commercial
Tax, Planning and Statistics
14 Maharashtra Shri Deepak Vasant
Kesarkar
Minister for Education and Marathi
Language
15 Manipur Dr. Sapam Ranjan
Singh
Minister for Medical, Health &
Family Welfare Department and
Publicity & Information Department
16 Odisha Shri Niranjan Pujari Finance, Parliamentary Affairs and
Health & Family Welfare Minister
17 Punjab Shri Harpal Singh
Cheema Finance Minister
18 Puducherry Shri K.
Lakshminarayanan Minister for Public Works
19 Rajasthan Dr. Subhash Garg
State Minister for Technical
Education (Independent Charge),
Ayurveda & Indian Medicines
(Independent Charge), Public
Grievances & Redressal
(Independent Charge), Minority
Affairs, Waqf, Colonisation,
Agriculture, Command Area
Development & Water Utilisation
20 Sikkim Shri B. S. Panth Minister of Tourism & Civil Aviation
and Commerce & Industries
21 Tamil Nadu Dr. Palanivel Thiaga
Rajan
Minister for Finance and Human
Resources Management
22 Uttar Pradesh Shri Suresh Kumar
Khanna
Minister of Finance, Parliamentary
Affairs
23 West Bengal Smt. Chandrima
Bhattacharya Minister of State for Finance

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Annexure-2
List of Officers from Centre and the States/UTs who participated in the 49th Meeting of the
GST Council held on 18th February, 2023
S.No. Centre/States/Uts Name of the Officer Designation/Charge
1 Government of India Shri Sanjay Malhotra Revenue Secretary
2 Government of India Shri Vivek Johri Chairman, CBIC
3 Government of India Shri Sanjay Kumar
Agarwal
Member(Compliance
Management),CBIC
4 Government of India Ms. V Rama Mathew Member (Tax Policy),CBIC
5 Government of India Shri Shashank Priya Member (GST),CBIC
6 Government of India Shri Vivek Aggarwal Additional Secretary (Revenue)
7 Government of India Shri Pankaj Kumar
Singh
Additional Secretary (GST Council
Secretariat)
8 Government of India Shri Ritvik Pandey Joint Secretary
9 Government of India Shri Sanjay Mangal Principal Commissioner
10 GSTN Shri Manish Kumar
Sinha CEO
11 GSTN Shri Dheeraj Rastogi EVP
12 Government of India Dr. Amandeep Singh Additional Director General(Audit)
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13 Government of India Ms. Ashima Bansal Joint Secretary
14 Government of India Ms. B.Sumidaa Devi Joint Secretary
15 Government of India Shri S.S. Nakul PS to FM
16 Government of India Shri Sernya Bhutia 1ST PA TO FM
17 Government of India Shri Kumar Ravikant
Singh PS to MoS Finance
18 Government of India Shri Dhruv Narayan
Srivastav 1st PA to MoS Finance
19 Government of India Shri Alkesh Uttam Additional PS to MoS
20 Government of India Shri Deepak Kapoor OSD to Revenue Secretary
21 Government of India Shri D. P. Misra OSD to Chairman, CBIC
22 Government of India Dr N Gandhi Kumar Director (State Taxes)
23 Government of India Shri Alok Kumar Additional Commissioner
24 Government of India Shri Pramod Kumar Director
25 Government of India Ms Puneeta Bedi OSD
26 Government of India Shri Rakesh Dahiya Deputy Secretary
27 Government of India Shri Nitesh Gupta Deputy Commissioner
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28 Government of India Shri Amit Samdariya Deputy Commissioner
29 Government of India Ms. Neha Yadav Deputy Commissioner
30 Government of India Shri Sunil Kumar Under Secretary
31 Government of India Ms. Smita Roy Technical Officer
32 Government of India Shri Piyush Kumar
Ankit Technical Officer
33 Government of India Shri Nitin Gupta Technical Officer
34 Government of India Shri Sandesh Lokhande Technical Officer
35 GSTN Ms Sanjali Dias SVP
36 GSTN Shri Naveen Agarwal OSD to CEO
37 GSTN Shri S Mohan OSD to HR
38 GSTN Shri Anil Chatwal Chief Accountant
39 Government of India Shri Rakesh Kumar
Kapur Consultant in DG(Audit)
40 GST Council
Secretariat Shri Kshitendra Verma Director
41 GST Council
Secretariat Shri S.S.Shardool Director
42 GST Council
Secretariat
Shri Joginder Singh
Mor Under Secretary
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43
GST Council
Secretariat Ms. Reshma R. Kurup Under Secretary
44
GST Council
Secretariat Ms. Priya Sethi Superintendent
45
GST Council
Secretariat Shri Dharambir Superintendent
46
GST Council
Secretariat Shri Irfan Zakir Superintendent
47
GST Council
Secretariat Shri Naveen Kumar Superintendent
48
GST Council
Secretariat Shri Sachin Goel Superintendent
49
GST Council
Secretariat Ms. Ambika Rani Superintendent
50
GST Council
Secretariat Shri Niranjan Kishore Superintendent
51
GST Council
Secretariat Shri Rakesh Joshi Superintendent
52
GST Council
Secretariat Shri Vijay Malik Inspector
53
GST Council
Secretariat Shri Padam Singh Inspector
54
GST Council
Secretariat Shri Rohit Sharma Inspector
55
GST Council
Secretariat Shri Ashwani Sharma ASO
56
GST Council
Secretariat Shri Karan Arora ASO
57
GST Council
Secretariat Shri Tarun ASO
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58
GST Council
Secretariat Shri Pankaj Dhaka Tax Assistant
59
GST Council
Secretariat Shri Paresh Garg Tax Assistant
60
GST Council
Secretariat
Shri Shyam Bihari
Meena Tax Assistant
61
GST Council
Secretariat Shri Vikas Kumar Tax Assistant
62 Andhra Pradesh Shri N. Gulzar Secretary Finance(CT)
63 Andhra Pradesh Shri M. Girija Sankar Chief Commissioner(ST)
64 Andhra Pradesh Shri K. Ravi Sankar Commissioner(ST) Policy
65 Arunachal Pradesh Shri Nakut Padung Superintendent (GST Cell)
66 Assam Shri Rakesh Agarwalla Principal Commissioner of State Tax
67 Bihar Dr Pratima Commissioner cum Secretary
Commercial Taxes
68 Bihar Shri Arun Kumar
Mishra Tax Expert Commercial Taxes
69 Bihar Shri Binod Kumar Jha Joint Commissioner State Tax
70 Bihar Shri Naveen Kumar PS to Hon'ble Minister
71 Chandigarh Shri Vinay Pratap Singh Deputy Commissioner-cum-Excise
and Taxation Commissioner
72 Chandigarh Ms Heena Talwar Excise and Taxation Officer
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73 Chhattisgarh Shri Bhim Singh Commissionerof State Tax
74 Chhattisgarh Shri Tarun Kiran Deputy Commissioner of State Tax
75 Chhattisgarh Shri Anand Sagar PS to Hon'ble Minister
76 Delhi Dr. S. B. Deepak
Kumar Commissioner (State Tax)
77 Delhi Shri. Awanish Kumar Special Commissioner (State Tax)
78 Goa Shri. S.S.Gill Commissioner of State Tax
79 Goa Smt. Sarita S. Gadgil Additional Commissioner of State
Tax
80 Gujarat Shri. J.P. Gupta Principal Secretary, Finance
Department
81 Gujarat Shri. Samir Vakil Chief Commissioner of State Tax
(I/c)
82 Gujarat Shri Riddhesh Raval Joint Commissioner
83 Haryana
Shri Ashok Kumar
Meena
Excise & Taxation Commissionercum-Secretary to Government
84 Haryana Shri Siddharth Jain Additional Commissioner, GST,
Excise and taxation Department
85 Himachal Pradesh Shri Bharat Khera Principal Secretary (Excise &
Taxation)
86 Himachal Pradesh Shri Yunus Commissioner of State Tax and
Excise
87 Himachal Pradesh Shri Rakesh Sharma Additional Commissioner of State
Tax and Excise
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88 Jammu and Kashmir Dr. Rashmi Singh Commissioner State Taxes
89 Jammu and Kashmir Ms. Ankita Kar
Additional Commissioner State
Taxes(Tax Planning, Policy and
Advance Ruling )
90 Jammu and Kashmir Ms. Namrita Dogra
Additional Commissioner State
Taxes(Administration and
Enforcement)
91 Jharkhand Ms. Aradhana Patnaik Principal Secretary (Commercial
Tax)
92 Jharkhand Shri Santosh Kumar
Vatsa Commissioner, Commercial Taxes
93 Karnataka Ms. C. Shikha Commissioner of Commercial Taxes
94 Karnataka Dr. M.P. Ravi Prasad Additional Commissioner of
Commercial Taxes (P & L)
95 Kerala Shri Ajit Patil Commissioner of State Tax
96 Kerala Shri. Abraham Renn S Additional Commissioner-1
97 Kerala Dr. Shyjan D PS to Hon'ble Minister for Finance
98 Madhya Pradesh Shri Lokesh Kumar
Jatav Commissioner, State Tax
99 Madhya Pradesh Ms Tanvi Hooda Special Commissioner, State Tax
100 Madhya Pradesh Shri Manoj Kumar
Choubey Joint Commissioner, State Tax
101 Madhya Pradesh Shri Harish Jain Assistant Commissioner, State Tax
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102 Madhya Pradesh Shri Dileep Raj
Dwivedi OSD to Hon'ble Minister
103 Maharashtra Ms Shaila A Principal Secretary (Financial
Reforms)
104 Maharashtra Shri Rajeev Mital Commissioner of State Tax
105 Manipur Shri Y. Indrakumar
Singh Assistant Commissioner of Taxes
106 Meghalaya Ms Isawanda Laloo Commissioner of Taxes
107 Meghalaya Shri. L Khongsit Additional Commissioner of Taxes
108 Meghalaya Shri. V R Challam Assistant Commissioner of Taxes
109 Mizoram Shri Kailiana Ralte Commissioner of State Tax
110 Mizoram Shri R. Zosiamliana Additional Commissioner of State
Taxes
111 Nagaland Shri. C Lima Imsong Additional Commissioner of State
Taxes
112 Odisha Shri Vishal Kumar Dev Principal Secretary, Finance
Department
113 Odisha Shri Nihar Ranjan
Nayak Additional Commissioner of Taxes
114 Punjab Shri Vikas Partap Financial Commissioner (Taxation)
115 Punjab Shri Kamal Kishor
Yadav Commissioner of State Taxes
116 Punjab Shri Ravneet Khurana Additional Commissioner of State
Taxes (Audit)
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117 Puducherry Shri. M. Raje Saker Commissioner of State Tax
118 Puducherry Shri. S. Saravana
Kumar
Commercial Tax Officer
119 Rajasthan Dr Ravi Kumar Surpur Chief Commissioner, State Tax
120 Rajasthan Shri Arvind Mishra Advisor (Additional Commissioner,
GST)
121 Sikkim Shri Manoj Rai Commissioner (Commercial Taxes)
122 Sikkim Shri Ajay Raj Gurung Deputy Commissioner (Commercial
Taxes)
123 Tamil Nadu Thiru N.
Muruganandam
Additional Chief Secretary to
Government, Finance Department
124 Tamil Nadu Thiru Dheeraj Kumar Principal Secretary/Commissioner of
Commercial Taxes
125 Tamil Nadu Thiru K.Gnanasekaran Senior Additional Commissioner,
Commercial Taxes
126 Telangana Shri Ronald Ross Special Secretary (Finance)
127 Telangana Ms Neetu Prasad Commissioner of Commercial Taxes
128 Telangana Shri N Sai Kishore Additional Commissioner
(ST)(Legal)
129 Telangana Ms. K Rupa Sowmya Deputy Commissioner (ST) EIU
130 Tripura Shri Brijesh Pandey Secretary, Finance
131 Tripura Ms. Rakhi Biswas Chief Commissioner of State Tax
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132 Tripura Mr. Ashin Barman State Admin GST
133 Uttarakhand Dr. Ahmad Iqbal Commissioner of State Tax
134 Uttarakhand Shri Anil Singh Additional Commissioner of State
Tax
135 Uttarakhand Shri Anurag Mishra Joint Commissioner of State Tax
136 Uttar Pradesh Shri Nitin Ramesh
Gokaran Principal Secretary, State Tax
137 Uttar Pradesh Ms. Ministhy S Commissioner of State Tax
138 Uttar Pradesh Shri Paritosh Kumar
Mishra
Deputy Commissioner(GST), State
Tax HQ
139 Uttar Pradesh Shri Amit Pandey P.S. to Hon'ble Finance Minister, UP
140 West Bengal Dr Manoj Pant Additional Chief Secretary, Finance
Department
141 West Bengal Shri Khalid Aizaz
Anwar Commissioner of State Tax
142 West Bengal Shri Rajib Sankar
Sengupta
Senior Joint Commissioner of
Revenue
143 West Bengal Shri Shantanu Naha OSD to Hon'ble Minister

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Agenda Item 2: Ratification of the Notifications, Circulars and Orders issued by the GST Council
and decisions of GST Implementation Committee for the information of the Council
In the 22nd meeting of the GST Council held at New Delhi on 6th October, 2017, it was decided
that the notifications, circulars and orders, which are being issued by the Central Government with the
approval of the competent authority, shall be forwarded to the GST Council Secretariat, through email,
for information and deemed ratification by the GST Council. Accordingly, in the 49th meeting held on
18th February, 2023, the GST Council had ratified all the notifications, circulars, and orders issued up
to 10.02.2023.
2. In this respect, the following notifications and circulars issued after 10.02.2023 till
30.06.2023 under the GST laws by the Central Government, as available on www.cbic.gov.in, are
placed before the Council for information and ratification: -
Act/Rules Type Notification / Circular /
Order Nos.
Description/Subject
Notifications
under CGST
Act / CGST
Rules
Central
Tax
1. Notification No.
02/2023-Central Tax
dated 31.03.2023
Amnesty to GSTR-4 non-filers
2. Notification No.
03/2023-Central Tax
dated 31.03.2023
Extension of time limit for application
for revocation of cancellation of
registration
3. Notification No.
04/2023-Central Tax
dated 31.03.2023
Amendment in CGST Rules
4. Notification No.
05/2023-Central Tax
dated 31.03.2023
Seeks to amend Notification No.
27/2022 dated 26.12.2022
5. Notification No.
06/2023-Central Tax
dated 31.03.2023
Amnesty scheme for deemed
withdrawal of assessment orders
issued under Section 62
6. Notification No.
07/2023-Central Tax
dated 31.03.2023
Rationalisation of late fee for GSTR-9
and Amnesty to GSTR-9 non-filers
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Notifications
under UTGST
Act / UTGST
Rules
7. Notification No.
08/2023-Central Tax
dated 31.03.2023
Amnesty to GSTR-10 non-filers
8. Notification No.
09/2023-Central Tax
dated 31.03.2023
Extension of limitation under Section
168A of CGST Act
9. Notification No.
10/2023-Central Tax
dated 10.05.2023
Seeks to implement e-invoicing for the
taxpayers having aggregate turnover
exceeding Rs. 5 Crore from 1st August
2023.
10. Notification No.
11/2023-Central Tax
dated 24.05.2023
Seeks to extend the due date for
furnishing FORM GSTR-1 for April,
2023 for registered persons whose
principal place of business is in the
State of Manipur.
11. Notification No.
12/2023-Central Tax
dated 24.05.2023
Seeks to extend the due date for
furnishing FORM GSTR-3B for April,
2023 for registered persons whose
principal place of business is in the
State of Manipur.
12. Notification No.
13/2023-Central Tax
dated 24.05.2023
Seeks to extend the due date for
furnishing FORM GSTR-7 for April,
2023 for registered persons whose
principal place of business is in the
State of Manipur.
13. Notification No.
14/2023-Central Tax
dated 19.06.2023
Seeks to extend the due date for
furnishing FORM GSTR-1 for April
and May, 2023 for registered persons
whose principal place of business is in
the State of Manipur
14. Notification No.
15/2023-Central Tax
dated 19.06.2023
Seeks to extend the due date for
furnishing FORM GSTR-3B for April
and May, 2023 for registered persons
whose principal place of business is in
the State of Manipur.
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15. Notification No.
16/2023-Central Tax
dated 19.06.2023
Seeks to extend the due date for
furnishing FORM GSTR-7 for April
and May, 2023 for registered persons
whose principal place of business is in
the State of Manipur.
16. Notification No.
17/2023-Central Tax
dated 27.06.2023
Extension of due date for filing of
return in FORM GSTR-3B for the
month of May 2023 for the persons
registered in the districts of Kutch,
Jamnagar, Morbi, Patan and
Banaskantha in the state of Gujarat
upto 30th June 2023.
Central
Tax (Rate)
1. Notification No.
1/2023-Central Tax
(Rate), dated 28.02.2023
Seeks to amend notification No.
12/2017- Central Tax (Rate) so as to
notify change in GST with regards to
services as recommended by GST
Council in its 49th meeting held on
18.02.2023.
2. Notification No.
2/2023-Central Tax
(Rate), dated 28.02.2023
Seeks to amend notification No.
13/2017- Central Tax (Rate) so as to
notify change in GST with regards to
services as recommended by GST
Council in its 49th meeting held on
18.02.2023.
3. Notification No.
3/2023-Central Tax
(Rate), dated 28.02.2023
Seeks to amend notification no.
1/2017-Central Tax (Rate), dated
28.06.2017
4. Notification No.
4/2023-Central Tax
(Rate), dated 28.02.2023
Seeks to amend notification no.
2/2017-Central Tax (Rate), dated
28.06.2017.
5. Notification No.
5/2023-Central Tax
(Rate), dated 09.05.2023
Seeks to amend notification No.
11/2017- Central Tax (Rate) dated
28.06.2017 so as to extend last date for
exercise of option by GTA to pay GST
under forward charge.
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Union
Territory
Tax (Rate)
1. Notification No.
1/2023- Union Territory
Tax (Rate), dated
28.02.2023
Seeks to amend notification No.
12/2017- Union Territory Tax (Rate)
so as to notify change in GST with
regards to services as recommended by
GST Council in its 49th meeting held
on 18.02.2023.
2. Notification No.
2/2023- Union Territory
Tax (Rate), dated
28.02.2023
Seeks to amend notification No.
13/2017- Union Territory Tax (Rate)
so as to notify change in GST with
regards to services as recommended by
GST Council in its 49th meeting held
on 18.02.2023.
3. Notification No.
3/2023- Union Territory
Tax (Rate), dated
28.02.2023
Seeks to amend notification no.
1/2017- Union Territory Tax (Rate),
dated 28.06.2017
4. Notification No.
4/2023- Union Territory
Tax (Rate), dated
28.02.2023
Seeks to amend notification no.
2/2017- Union Territory Tax (Rate),
dated 28.06.2017.
5. Notification No.
5/2023- Union Territory
Tax (Rate), dated
09.05.2023
Seeks to amend notification No.
11/2017- Union Territory Tax (Rate)
dated 28.06.2017 so as to extend last
date for exercise of option by GTA to
pay GST under forward charge.
Notifications
under IGST
Integrated
Tax (Rate)
1. Notification No.
1/2023-Integrated Tax
(Rate), dated 28.02.2023
Seeks to amend notification No.
9/2017- Integrated Tax (Rate) so as to
notify change in GST with regards to
services as recommended by GST
Council in its 49th meeting held on
18.02.2023.
2. Notification No.
2/2023- Integrated Tax
(Rate), dated 28.02.2023
Seeks to amend notification No.
10/2017- Integrated Tax (Rate) so as
to notify change in GST with regards
to services as recommended by GST
Council in its 49th meeting held on
18.02.2023.
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Act / IGST
Rules
3. Notification No.
3/2023- Integrated Tax
(Rate), dated 28.02.2023
Seeks to amend notification no.
1/2017-Integrated Tax (Rate), dated
28.06.2017.
4. Notification No.
4/2023- Integrated Tax
(Rate), dated 28.02.2023
Seeks to amend notification no.
2/2017-Integrated Tax (Rate), dated
28.06.2017.
5. Notification No.
5/2023- Integrated Tax
(Rate), dated 09.05.2023
Seeks to amend notification No.
08/2017- Integrated Tax (Rate) dated
28.06.2017 so as to extend last date for
exercise of option by GTA to pay GST
under forward charge.
Notifications
under Goods
and Services
Tax
(Compensatio
n to States)
Act, 2017
Compensat
ion Cess
1. Notification No.
01/2023-Compensation
Cess dated 31.03.2023
Seeks to provide commencement date
for Section 163 of the Finance Act,
2023
Compensat
ion Cess
(Rate)
1. Notification No.
01/2023-Compensation
Cess (Rate) dated
28.02.2023
Seeks to amend notification no.
1/2017- Compensation Cess (Rate),
dated 28.06.2017
2. Notification No.
02/2023-Compensation
Cess (Rate) dated
31.03.2023
Seeks to further amend notification
No. 1/2017-Compensation Cess
(Rate), dated 28th June, 2017.
Circulars under CGST Act
1. Circular No.
191/03/2023 dated
27.03.2023
Clarification regarding GST rate and
classification of ‘Rab’ based on the
recommendation of the GST Council
in its 49th meeting held on 18th
February 2023.
3. It is mentioned that some of the notifications referred in Para 2 above have been issued as per
the recommnedations of GST Impementation Committee (GIC). Details of the same are given in
Annexure enclosed with this agenda note. The details of such decisions and the relevant Notifications
and Circulars issued to implement such decisions are enclosed as Annexure 2A to this Agenda Note.
4. The GST Council may grant ratification to the notifications and circulars as detailed in para 2
above.
*****

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Annexure-2A
Decisions of GST Implementation Committee (GIC) for information of the GST Council
The GST implementation Committee (GIC) took certain decisions between 49th GST Council meeting
and the upcoming 50th GST Council meeting. Due to the urgency involved, most of the decisions were
taken after obtaining approval by circulation amongst GIC members. The details of the decisions taken
are given below:
1. GIC Decision by Circulation dated 31st January, 2023 on GST Data sharing request
received from Department of Telecommunications, M/o Communications.
a. In the agenda note, it was stated that it was mentioned in the letter received from the
Department of Telecommunications (DoT) that the National Digital Communication Policy
(NDCP) mandates the DoT to increase domestic production of telecom products and hence, it is
necessary to monitor annual domestic production/ value addition in telecom sector. The policy
also mentions that the share of telecom in national GDP would be increased from 6% to 8%. In
this regard, DoT has approached GSTN for disaggregate data about the production of goods
and services relating to telecom sector. However, DoR has explained the data sharing policy
position and agreed to share the aggregate level data only. Accordingly, DoT has requested to
provide anonymised aggregate data (HSN wise on telecom equipment) without the
identification of the tax payer as available with GSTN.
b. It further stated that FORM GSTR-1 has been capturing 4-6 digit HSN/SAC code for the
products and services. DoT has sent a list of products and services for which they are seeking
4-digit level ''8517''- HSN exclusively for telecom products including mobile handset and
''9984'' - SAC for telecom services. DoT further requested that data can also be provided for
combination of product description and HSN Code.
c. It was also stated in the agenda note that since DoT has agreed to receive anonymised
aggregate level GST data for telecom products and services, GSTN may be permitted to share
the data with DoT. It may be noted that GST Council in its 48th meeting has already approved
the GST data sharing with other Ministries/Departments.
d. Accordingly, approval of GIC was sought for GST data sharing with Department of
Telecommunications, M/o Communications.
e. Decision: The GIC approved the agenda relating to GST Data sharing request received from
Department of Telecommunications, M/o Communications.
2. GIC Decision by Circulation dated 10th April, 2023 on nomination of officers for All
India Co-ordination Committee as per Model All India GST Audit Manual.
a. In the agenda note reference was made to the Model All India GST Audit Manual which was
placed for circulation before the GST Council in its 49th Meeting held on 18th February, 2023
at New Delhi. In Model All India GST Audit Manual it has been proposed that GST Council
may form an ‘All India Coordination Committee’ of Officers which should choose themes for
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conducting audit, constitute a Committee of Officers for selecting taxpayers in a state for
conducting thematic audit, coordination among various audit authorities for evolving a
common minimum audit plans for a given theme and monitor actual audit by the field
formations and disseminate audit outcome to appropriate stakeholders.
b. It was further stated that the All India Audit Manual has recommended that the ‘All India
Coordination Committee’ may be constituted with the following officers as its members:
a) Pr. DG/DG (Audit) or any Pr. Additional Director General (Audit) / Additional
Director General (Audit) as nominated by him;
b) Joint Secretary, GST Council;
c) Pr. Commissioner/ Commissioner (GST), GST Policy Wing;
d) CEO, GSTN;
e) Three Commissioners of SGST, as nominated by the GST Council;
f) One CGST (Audit) Commissioner as nominated by the GST Council.
c. Accordingly, in the agenda note it was proposed that the said Committee may be constituted as
above for the performance of functions as per the All India Audit Manual. The Committee
Members at Sl. Nos. ‘a’ to ‘d’ of the above said Committee are designation based and require
no further nominations. However, the Committee Members at Sl. No. ‘e’ and ‘f’ above are to
be nominated by the GST Council. As the matter is procedural in nature, the GIC may consider
nominating the officers of SGST and CGST to the All India Coordination Committee. In this
regard it is proposed that we may have a policy of nominating the officers from State on a
rotational basis from different States in each geographical zones to the ‘All India Coordination
Committee’ for a period of one year. Further with regard to nomination of officer at serial
number ‘f’ of Para 2 above, it is proposed that similar policy may be adopted for their
nomination on rotational basis from different States and zones for a period of one year. The
rotation would be such so as to give opportunity first to every State. Thus, each state would
become a member of the Committee.
d. Accordingly, in the agenda note it was proposed that the following three Commissioners of
SGST may be nominated from different geographical zones with respect to Sl. No. ‘e’ of Para 2
above:
1. CCT, SGST Maharashtra (West Zone)
2. CCT, SGST, West Bengal (East Zone)
3. CCT, SGST Karnataka (South Zone)
With respect to officer at serial number ‘f’ of Para 2 above, it was proposed that the
following CGST (Audit) Commissioner may be nominated:
1. Commissioner (Audit), Ludhiana (North Zone)
e. Decision: The GIC approved the agenda relating to Nomination of officers for All India Coordination Committee as per Model All India GST Audit Manual.
f. Implementation Status: OM for the nomination of members for All India Co-ordination
Committee as approved by GIC has been issued.
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3. GIC Decision by Circulation Dated 27th April, 2023 on roll out of sixth phase of einvoicing for the taxpayers having aggregate turnover exceeding Rs. 5 Cr.
a. In the agenda note, it was stated that it may be recalled that GST Council, in its 37th meeting
held on 20th September, 2019, had recommended the roll out of e-invoicing in a phased
manner. Accordingly, electronic invoicing system was introduced from 01.10.2020 for
taxpayers with turnover of more than Rs. 500 crore in any preceding financial year from 2017-
18 onwards for B2B transactions and for export invoices. The same was extended for taxpayers
with turnover of more than Rs. 100 crore from 01.01.2021. Vide notification No. 05/2021-CT
dated 08.03.2021, the same has been extended for taxpayers with turnover of more than Rs. 50
crore from 01.04.2021. Further, vide notification No. 01/2022-CT dated 24.02.2022, the same
has been extended for taxpayers with turnover of more than Rs. 20 crore from 01.04.2022. Vide
notification No. 17/2022- Central Tax dated 01.08.2022, e-invoicing has been made mandatory
for taxpayers with turnover of more than Rs. 10 crore from 01.10.2022.
b. It was also stated that vide email dated 31.03.2023, GSTN has informed that now NIC/ GSTN
are in preparedness for lowering of threshold of generation of e- invoices for B2B and export
transactions up to turnover limit of Rs. 5 crore and above. The issue was deliberated in the
National Co- ordination Meeting of State and Central Tax officers held on 24.04.2023, wherein
it was decided that the threshold of generation of e-invoices for B2B and export transactions
may be lowered up to turnover limit of Rs. 5 crore and above.
c. Further it was stated in the agenda note that vide email dated 25.04.2023, GSTN has provided
the data related to number of taxpayers, along with their turnover, as given below:

Summary of Slab wise PAN level AATO in any of the previous financial years
(2017-18 to 2021- 22)

Turnover slabs
Number of PANs Number of GSTINs
Turnover above 500Cr 10,644 72,913
Turnover between 100Cr to 500Cr 43,517 1,13,646
Turnover between 50Cr to 100Cr 59,332 1,02,614
Turnover between 20Cr to 50Cr 1,86,922 2,61,664
Turnover between 10Cr and 20Cr 2,95,533 3,68,554
Turnover between 5Cr and 10Cr 4,91,157 5,75,810

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d. GSTPW, CBIC also stated in the agenda note that E-invoice has been one of the major reforms
undertaken by the Government which is beneficial for both tax administration as well as trade.
It helps the taxpayers in backward integration and automation of tax relevant processes and in
real-time updation of data on the GSTN system and thereby, drastically reducing the time taken
in filing the returns. Besides, it also facilitates correct reporting of the details of the supplies,
thus helping in curbing tax evasion. Therefore, it is proposed that next phase of e-invoicing
may be rolled out. Taxpayers with annual turnover of more than Rs. 5 crore in any preceding
financial year from 2017-18 onwards may be brought under the ambit of e-invoice for B2B
transactions and for export invoices in the sixth phase as per capacity of GSTN/NIC. Further,
sufficient window of 2-3 months may be provided to taxpayers to make necessary IT changes
as well as for NIC to enable the specified taxpayers on sandbox for testing. Data suggests that
approximately 5,75,810 GSTINs have AATO between rupees 5 Cr to 10 Cr who would be
impacted by the decision.
Accordingly, it was proposed that the threshold for issuance of e-invoice for B2B transactions
and for export invoices may be reduced to Rs 5 crore. Further, to provide sufficient time to
taxpayers as well as NIC to make necessary preparations, the said reduction in threshold for
generation of e-invoices may be done with effect from 01.07.2023.
e. It was further stated in the agenda note that as the notification to this effect is required to be
issued at the earliest to give sufficient time to the taxpayers, coming under purview of einvoicing by this change, so as to enable them to make due preparation for e-invoicing.
However, as no meeting of GST Council has been announced yet. Accordingly, considering the
urgency of the matter, the proposal was placed before the GIC for approval.
f. Decision: The GIC approved the proposal for roll out of sixth phase of e-invoicing for the
taxpayers having aggregate turnover exceeding Rs. 5 Crore with effect from 01.08.2023.
g. Implementation Status: In pursuance of GIC decision dated 27.04.2023, Notification No.
10/2023- Central Tax dated 10.05.2023 was issued to implement e-invoicing for B2B
transactions and exports for the taxpayers having aggregate turnover exceeding Rs. 5 Crore
from 1st August 2023.
4. GIC Decision by Circulation dated 27th April, 2023 on Proposal for integration of
GSTN's E-waybill system with ULIP
a. In the agenda note, it was stated that a proposal had been received from DPIIT, Ministry of
Commerce and Industry for integration of Unified logistics Interface Platform (ULIP) with
GSTN's E waybill System. The detailed proposal is placed as Annexure.
b. ULIP is an important component of National Logistics Policy inaugurated by Hon'ble PM
on 17.9.2022. The request for data to be shared is covered at Para D of the Annexure. The para
D of the Annexure is reproduced below:
E-WAY BILL DATA REMARKS
E-way bill Number / timeStamp
ULIP will send the API request with E-way bill number. In
response to API message, E-way bill number creation and
expiry time-stamp to be shared by GSTN
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HSN Code The data field will help in categorizing the cargo movement.
Dispatch from Pin code This set of information shall provide information relating to
source and destination of the cargo and will be helpful
Ship to in mapping. - PIN Code
Mode and carrier Number The data-field shall provide the information of transportation
type and carrier number. With this data field, movement of the
cargo can be tracked for all modes of logistics through one
reference number as ULIP is already integrated with FasTag Etolling system, FOIS system of Indian Railways, NLP marine
as well as Air-cargo community systems.
This information along with other integrations of ULIP in-turn
will help in creating various analytics, e.g. efficiency of various
modes of logistics between a source and destination,
infrastructure requirements/planning, etc. This will help in
informed decision making by the trade with regard to
modal shift.

c. ULIP will not collect any data which will lead to disclosure of user specific information like
details of taxpayer, consignor/ consignee details etc. The GST Council in its 48th meeting has
approved the policy tor GST data sharing with other Ministries/ Departments. Accordingly,
approval of GIC was sought for the proposal for integration of GSTN's E-waybill system with
ULIP.
d. Decision: The GIC approved the agenda relating to proposal for integration of GSTN's Ewaybill system with ULIP.
5. Decision of GIC by Circulation on 28th April, 2023 on extension of deadline for exercising
of option by Goods Transport Agencies (GTAs) to pay GST under forward charge mechanism
from 15th March, 2023 to 31st May, 2023.
a. In the agenda note, it was stated by TRU that All India Transporters Welfare Association
(AITWA) has requested inter-alia that the deadline for exercising option by Goods Transport
Agencies (GTAs) to pay GST under forward charge mechanism (FCM) may be extended from
15th March, 2023 to 31st May, 2023.
b. It was further stated in the agenda note that some GTAs were not able to meet the deadline due
to various reasons such as:
(i) They presumed that the requirement was only for those who are going in for
FCM from 2023-24;
(ii) They submitted the hard copy of Annexure V before 15th March 2023 but
missed the online application;
(iii) They were unaware of the requirement and did not submit Annexure V, either
online or offline, before the deadline;
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(iv) They applied for a new GST registration in March 2023 and received the
number after 15th March 2023, and thus, were not able to submit Annexure V
within the given window.
c. TRU also stated in the agenda note that AITWA and All India Motor Transport Congress
(AIMTC) have also requested that GTAs who have commenced new business after the last date
for filing the declaration, may also be allowed to exercise option to be under FCM.
d. It was also mentioned that background of the issue is that GTAs who want to pay GST under
FCM during any financial year are required to exercise the option to do so by filing an online
declaration on GSTN portal by 15th March of the preceding financial year. This requirement
was notified on 13.07.2022 vide notification no. 03/2022-CT(R) (copy enclosed) based on the
recommendations of the 47th GST Council meeting. Accordingly, the deadline for exercising
this option for financial year 2023-2024 was 15th March, 2023.
e. TRU in their agenda note submitted that since, the requirement to file the declaration on GSTN
portal is a new procedural requirement which was notified last year on 13.07.2022, and has
come into effect from the current financial year that is, 2023-2024, the request to extend the last
date for filing declaration from 15th March, 2023 to 31st May, 2023 may be accepted.
f. Further it has been stated that there is also merit in the request of the two associations to allow
new GTA businesses who have obtained registration after 15th March, 2023 to exercise this
option for financial year 2023- 2024. In this regard, it was proposed that GTAs who commence
new business or cross registration threshold during any financial year, may be allowed to
exercise the option to pay GST under FCM during the year in which they commence business
or cross registration threshold within 45 days from date of applying for GST registration or 1
month from date of obtaining registration whichever is later.
g. Since there was no Council meeting scheduled in the near future and the current Financial Year
had already begun, the following proposals were placed before the GST Implementation
Committee (GIC) for approval:
(i) extension of the last date for exercising the option by GTAs to pay GST under
FCM from 15th March, 2023 to 31st May, 2023;
(ii) GTAs who commence new business or cross registration threshold during any
financial year, may be allowed to exercise the option to pay GST under
forward charge during the year in which they commence business or cross
registration threshold within 45 days from date of applying for GST
registration or 1 month from date of obtaining registration whichever is later.
h. Decision: The Members of GIC approved the agenda on extension of deadline for exercising of
option by Goods Transport Agencies (GTAs) to pay GST under forward charge mechanism
from 15th March, 2023 to 31st May, 2023
i. Implementation Status: In pursuance of GIC decision dated 28.04.2023, Notification No.
05/2023- Central Tax (Rate) dated 09.05.2023 was issued to amend notification No. 11/2017-
Central Tax (Rate) dated 28.06.2017 so as to extend last date for exercise of option by GTA to
pay GST under forward charge. Also, Notification No. 05/2023- Union Territory Tax (Rate)
Agenda for 50th GSTCM Volume 1
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dated 09.05.2023 was issued to amend notification No. 11/2017- Union Territory Tax (Rate)
dated 28.06.2017 so as to extend last date for exercise of option by GTA to pay GST under
forward charge. Further, Also, Notification No. 05/2023- Integrated Tax (Rate) dated
09.05.2023 was issued to amend notification No. 08/2017- Integrated Tax (Rate) dated
28.06.2017 so as to extend last date for exercise of option by GTA to pay GST under forward
charge.
`
6. GIC Decision by Circulation dated 19th May, 2023 on Issue of seeking extension of due
dates in filing of GSTR-1, GSTR-3B and GSTR-7 till 31st May, 2023 in the State of Manipur.
a. In the agenda note, it was stated that request has been received from the CCT Manipur on the
captioned subject. It was stated that due to prevailing law and order situation in the State and to
maintain peace and communal harmony, the state government has suspended the mobile data
services and internet/data services including broadband services in the territorial jurisdiction of
the State of Manipur. Hence, the timely filing of return FORM GSTR-1, GSTR-7 and GSTR3B for the month of April, 2023 for all the GST registered persons in Manipur may not be
possible due to unavailability of Internet Services.
b. Accordingly, the State of Manipur has requested to provide relief to registered persons in
Manipur by extending the due dates of filing FORM GSTR-1, GSTR-7 and GSTR-3B for the
month of April 2023 until 31.05.2023. Further extension may also be required, if the
suspension of mobile data and internet services are continued in the State of Manipur.
c. Therefore, the proposal from the State of Manipur along with draft notifications (Annexures A,
B & C) was placed before the GIC for deliberation and approval.
d. Decision: The GIC approved the agenda on seeking extension of due dates in filing of GSTR-1,
GSTR-3B and GSTR-7 for month of April 2023 till 31st May, 2023 in the State of Manipur.
e. Implementation Status: In pursuance of GIC decision dated 19.05.2023, Notification No.
11/2023- Central Tax dated 24.05.2023, Notification No. 12/2023- Central Tax dated
24.05.2023 & Notification No. 13/2023- Central Tax dated 24.05.2023 were issued to extend
the due dates for filing of GSTR-1, GSTR-3B and GSTR-7 for Month of April 2023 till 31st
May, 2023 in the State of Manipur.
7. GIC Decision by Circulation dated 09th June, 2023 on Issue of seeking extension of due
dates in filing of GSTR-1, GSTR-3B and GSTR-7 till 30th June, 2023 in the State of Manipur.
a. In the agenda note, it was stated that request has been received from the CCT Manipur on the
captioned subject. It was stated that due to volatile law and order situation in the State, mobile
data services and internet/ data service is under suspension due to which timey filing of return
in GSTR-1, GSTR- 3B and GSTR-7 for the month of May, 2023 for all the GST registered
persons in Manipur is not possible in the State. Also, GSTR-1, GSTR-3B and GSTR-7 filing
for the month of April, 2023 is very poor.
b. Accordingly, it had been requested to extend the due dates of filing FORM GSTR-1, GSTR-7
and GSTR-3B for the month of April, 2023 and May, 2023 for the taxpayers registered in the
State of Manipur till 30th June, 2023.
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c. It was also mentioned that in view of the law and order situation in the State of Manipur, the
due dates of filing FORM GSTR-1, GSTR-7 and GSTR-3B for April, 2023 for the taxpayers
registered in the State of Manipur were earlier extended until 31st May, 2023 vide Notifications
dated 24.05.2023.
d. Decision: The GIC approved the agenda on seeking extension of due dates for filing of GSTR1, GSTR-3B and GSTR-7 for month of April 2023 and May 2023 till 30th June, 2023 in the
State of Manipur.
e. Implementation Status: In pursuance of GIC decision dated 09.06.2023, Notification No.
14/2023- Central Tax dated 19.06.2023, Notification No. 15/2023- Central Tax dated
19.06.2023 & Notification No. 16/2023- Central Tax dated 19.06.2023 were issued to extend
the due dates for filing of GSTR-1, GSTR-3B and GSTR-7 for the months of April 2023 and
May 2023 till 30th June, 2023 in the State of Manipur.
8. GIC Decision by Circulation dated 22nd June, 2023 on request for extension of due date
for furnishing of FORM GSTR-3B by tax payers in certain Districts of Gujarat due to
Biparjoy Cyclone.
a. In the agenda note it was stated that request has been received from the State of Gujarat on the
captioned subject. It has been stated that a very severe Cyclonic Storm “Biparjoy” (pronounced
as “Biporjoy”) has hit the coastal districts of Saurashtra & Kutch in the State of Gujarat. The
cyclone has made severe destruction, including damage to infrastructure, power and
communication networks, transportation disruptions and impacts on civil structures. The
cyclone has severely affected the districts of Kutch, Morbi, Jamnagar, Patan and Banaskantha.
The internet connectivity as well as electricity supply have been badly affected by the cyclone
since 14th June, 2023. The power is still not restored in many areas of these districts, therefore,
it is still not possible for taxpayers to furnish the returns.
b. It was further stated that since many districts of Gujarat have been affected by the Biparjoy, the
trade and industry within the State are also going to be affected adversely. Many trade and
practitioners’ associations have requested to extend the due dates of furnishing returns for the
tax period May-2023. The Department has received representations from different Associations
to extend the time limit for filing GSTR 3B returns for 15 days for the tax period May-2023.
c. In view of the above, it was requested by State of Gujarat to extend the time limit for filing
GSTR 3B returns for the month of May 2023 for the affected districts of Kutch, Jamnagar,
Morbi, Patan and Banaskantha in the state of Gujarat till 30th June 2023.
d. Decision: The GIC approved the agenda on request for extension of due date for furnishing of
FORM GSTR-3B for the month of May 2023 by tax payers in the specified Districts of Gujarat
due to Biparjoy Cyclone.
e. Implementation Status: In pursuance of GIC decision dated 22.06.2023, Notification No.
17/2023- Central Tax dated 27.06.2023, was issued to extend the due dates for filing of return
in FORM GSTR-3B for the month of May 2023 for the persons registered in the districts of
Kutch, Jamnagar, Morbi, Patan and Banaskantha in the state of Gujarat upto 30th June 2023.
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Agenda Item 3: Issues recommended by the Law Committee for the consideration of the GST
Council
Agenda Item 3(i): Rules Amendment in accordance with the recommendations made by Group of
Ministers (GoM) on implementation of E-way bill requirement for movement of Gold/ Precious
stones under chapter 71
In 37th GST Council meeting held on 20th September, 2019, a GoM was constituted by the
GST Council Secretariat with a mandate to examine the feasibility of implementation of e-way bill
requirement for movement of gold and precious stones.
2. The GoM submitted its report containing inter alia the following recommendation in respect
of e-way bill requirement for intra-state movement of gold and precious stones:
i. The states should be allowed to decide about imposition of the requirement of e-way bill
for intra-state movement of gold and precious stones within their states.
ii. There will be a minimum threshold of Rs 2 Lakh, and the states can decide any amount
including or above this amount as minimum threshold for generation of E-way bill for
intra-state movement of gold/ precious stones in their state.
iii. Only Part ‘A’ on the e-way bill will be required to be filled in such cases, without any
need for filling Part ‘B’ of the e-way bill.
iv. Further modalities of generation of e-way bill for intra-state movement of gold/ precious
stones will be as suggested by NIC/ GSTN.
v. For deciding about implementation of such a system of e-way bill for intra-state
movement of gold and precious stones within the state, as well as regarding the threshold
value to be adopted for generation of such e-way bill within the state, the procedure of
consultation with the jurisdictional Principal Chief Commissioner/ Chief Commissioner
of Central Tax, or any Commissioner authorized by him, should be followed by the
States.
vi. Once e-way bill requirement for movement of Gold and Precious Stones is decided, the
corresponding suitable amendment in CGST Rules, 2017 would have to be carried out.
While finalizing amendment in Rules, it is to be ensured that in case of supply of gold by
registered persons to unregistered buyers, the requirement of e-way bill generation is
mandated on registered supplier only.
3. The said recommendation of GoM were accepted by the GST Council in its 47th meeting held
at Chandigarh on 28th -29th June, 2022. Accordingly, amendment is required to be made in the
provisions of CGST Rules, 2017 to implement the said recommendations of the Group of Ministers
accepted by the GST Council.
4. Accordingly, the Law Committee deliberated on the issue in its meeting held on
10/11.04.2023 and 03.05.2023.It was recommended by the Law Committee that a separate rule 138F
may be inserted in CGST Rules, 2017, as well as in SGST Rules, 2017 of the States who want to
mandate the requirement of e-way bills for intra-state movement of gold and precious stones under
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Chapter 71, for implementing the said recommendations of GoM. LC recommended the following
formulation of the said rule 138F to be inserted in CGST Rules, 2017 and SGST Rules, 2017:
A. SGST Rules
4.1 A new Rule 138F, as detailed below, may be inserted in the SGST Rules of States desirous of
mandating e-way bills for intra-State movement of gold and precious stones under Chapter 71:-
“138F. Information to be furnished in case of intra-State movement of gold, precious stones, etc.
and generation of e-way bills in such cases.- (1) Notwithstanding anything contained in rule 138,
every registered person who causes intra-State movement of goods, specified at serial numbers 4 and 5
of the Annexure appended to sub-rule (14) of rule 138, where the consignment value exceeds such
amount, not below rupees two lakhs, as the Commissioner may, in consultation with the jurisdictional
Principal Chief Commissioner/ Chief Commissioner of Central Tax, or any Commissioner of Central
Tax authorized by him, notify -
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an un-registered person,
shall, before commencement of such movement, furnish information relating to the said goods as
specified in Part A of FORM GST EWB-01, electronically, and a unique number shall be generated
on the said portal:
Provided that where the goods to be transported are supplied through an e-commerce operator
or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such ecommerce operator or courier agency.
(2) The information as specified in PART B of FORM GST EWB-01 shall not be required to be
furnished in respect of any movement of goods referred to in the sub-rule (1) and the e-way bill shall be
generated in FORM GST EWB-01, electronically on the common portal, after furnishing information
in Part-A of FORM GST EWB-01 as specified in sub-rule (1).
(3) The information furnished in Part A of FORM GST EWB-01 shall be made available to the
registered supplier on the common portal who may utilize the same for furnishing the details in FORM
GSTR-1.
(4) Where an e-way bill has been generated under this rule, but goods are either not transported or are
not transported as per the details furnished in the e-waybill, the e-way bill may be cancelled,
electronically on the common portal, within twenty-four hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance
with the provisions of rule 138B.
(5) Notwithstanding anything contained in this rule, no e-way bill is required to be generatedAgenda for 50th GSTCM Volume 1
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(a) where the goods are being transported from the customs port, airport, air cargo complex and
land customs station to an inland container depot or a container freight station for clearance by
Customs;
(b) where the goods are being transported-
(i) under customs bond from an inland container depot or a container freight station to a
customs port, airport, air cargo complex and land customs station, or from one customs
station or customs port to another customs station or customs port, or
(ii) under customs supervision or under customs seal.
(6) The provisions of sub-rule (10), sub-rule (11) and sub-rule (12) of rule 138, rule 138A, rule 138B,
rule 138C, rule 138D and rule 138E shall, mutatis mutandis, apply to an e-way bill generated under
this rule.
Explanation.- For the purposes of this rule, the consignment value of goods shall be the value,
determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a
delivery challan, as the case may be, issued in respect of the said consignment and also includes the
central tax, State or Union territory tax charged in the document and shall exclude the value of exempt
supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.”
B. CGST Rules
4.2 A new Rule 138F, as detailed below, may be inserted in the CGST Rules, 2017:-
“138F. Information to be furnished in case of intra-State movement of gold, precious stones, etc.
and generation of e-way bills in such cases.- (1) Where the Commissioner of State tax or Union
Territory tax has mandated furnishing of information in accordance with sub-rule (1) of Rule 138F of
the State or Union Territory Goods and Services Tax Rules in a particular State or Union Territory,
every registered person who causes intra-State movement of goods, specified at serial numbers 4 and 5
of the Annexure appended to sub-rule (14) of rule 138, where the consignment value exceeds such
amount, not below rupees two lakhs, as the Commissioner of State Tax may, in consultation with the
jurisdictional Principal Chief Commissioner/ Chief Commissioner of Central Tax, or any
Commissioner of Central Tax authorized by him, notify -
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an un-registered person,
shall, notwithstanding anything contained in Rule 138, before commencement of such movement
within the said State or, as the case may be, Union Territory, furnish information relating to the said
goods as specified in Part A of FORM GST EWB-01, electronically, and a unique number shall be
generated on the said portal:
Provided that where the goods to be transported are supplied through an e-commerce operator
or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such ecommerce operator or courier agency.
Agenda for 50th GSTCM Volume 1
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(2) The information as specified in PART B of FORM GST EWB-01 shall not be required to
furnished in respect of movement of goods referred to in the sub-rule (1) and the e-way bill shall be
generated in FORM GST EWB-01, electronically on the common portal, after furnishing information
in Part-A of FORM GST EWB-01 as specified in sub-rule (1).
(3) The information furnished in Part A of FORM GST EWB-01 shall be made available to the
registered supplier on the common portal who may utilize the same for furnishing the details in FORM
GSTR-1.
(4) Where an e-way bill has been generated under this rule, but goods are either not transported or are
not transported as per the details furnished in the e-waybill, the e-way bill may be cancelled,
electronically on the common portal, within twenty-four hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance
with the provisions of rule 138B.
(5) Notwithstanding anything contained in this rule, no e-way bill is required to be generated-
(a) where the goods are being transported from the customs port, airport, air cargo complex and
land customs station to an inland container depot or a container freight station for clearance by
Customs;
(b) where the goods are being transported-
(i) under customs bond from an inland container depot or a container freight station to a
custom sport, airport, air cargo complex and land customs station, or from one customs
station or customs port to another customs station or customs port, or
(ii) under customs supervision or under customs seal.
(6) The provisions of sub-rule (10), sub-rule (11) and sub-rule (12) of rule 138, rule 138A, rule 138B,
rule 138C, rule 138D and rule 138E shall, mutatis mutandis, apply to an e-way bill generated under
this rule.
Explanation.- For the purposes of this rule, the consignment value of goods shall be the value,
determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a
delivery challan, as the case may be, issued in respect of the said consignment and also includes the
central tax, State or Union territory tax charged in the document and shall exclude the value of exempt
supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.”
5. The agenda note is placed before the GST Council for deliberations and approval.

Agenda for 50th GSTCM Volume 1
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Agenda Item 3(ii): Capacity based taxation and Special Composition Scheme in certain Sectors in
GST.
In the existing GST legal framework, GST is a destination-based tax that is levied on supply of
goods or services or both as per Article 366 (12A) of the Constitution of India.
2. However, on the basis of the observations made by certain states regarding the fall in the
revenue realization after the roll out of the GST regime from certain evasion prone commodities, GST
Council considered a need to examine the possibility to levy GST based on the capacity of
manufacturing unit and introduce special composition schemes in such evasion prone sectors like pan
masala and gutkha, etc and to explore any other suitable administrative or systemic mechanisms to plug
the existing leakages in these sectors in order to augment the revenue realised from such sectors.
Accordingly, GST council in its 42nd meeting held on 05th October, 2020 recommended for constitution
of a Group of Ministers (GoM) for looking into the possibility of Capacity based taxation and Special
Composition Scheme in certain Sectors in GST.
3. On the basis of the recommendations made by the GST Council, a Group of Ministers (GoM)
was constituted under the Chairmanship of Shri Niranjan Pujari, Hon’ble Finance Minister of Odisha.
4. GoM submitted its report with various recommendations in Para 17 to 20, which are
reproduced below:-
“17. The GoM deliberated the whole issue at length and examined all possible options for
enhancing the compliance in the sector. The GOM identified certain additional compliance
measures with respect to different aspects of production and supply, namely: -
a. Registration and Details of Machines: Any person who deals with pan masala, chewing
tobacco and such other tobacco products, as specified, in any manner, shall in addition to
his registration, take registration of the machines used in relation to such goods, in the
manner as prescribed;
b. Thus, there would be a mandatory registration of each machine; this would require
disclosure of the details like make and model of each machine, number of tracks, packing
capacity of each track, total packing capacity of each machine, total number of machines
installed in the factory;
c. Special Monthly Return: Maintaining of records and periodic filing of Special Monthly
Return with details such as Machine wise production, Shift wise production, machine
disposed off with all its details, machine added with all its details, Inputs procured and
utilized in quantity and value terms, Product-wise and brand-wise details of clearance in
quantity and value terms, shift-wise records of reading of electricity meters and DG set
meters, waste generation stock, etc., in the manner as prescribed;
d. Certification of production capacity: Production capacity and quantity in unit per
pouch/container shall be duly certified by registered Chartered Engineer.
e. Copy of declaration in respect of production capacity submitted to other
department/agency/organization (if any), etc.;
f. Disclosure of details of non-working/partially working machines, etc.;
g. If required, installation of 24*7 CCTV cameras by the manufacturers [it was however felt
Agenda for 50th GSTCM Volume 1
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that this may be intrusive and be considered carefully];
h. Prescribing a heavy penalty for running any unregistered machine.
i. Gradually, the requirement of unique identification marking such as QR code or stamps,
on each packet/pouch will be prescribed. The unique identifier shall enable determination
of the following:
(a) the date, place and factory of manufacture;
(b) the machine used to manufacture;
(c) the production shift or time of manufacture;
(d) the product description, quantity and maximum retail sale price;
(e) any other relevant information, as may be prescribed.
18. The GoM also suggested that there is a need to further strengthen the tracking measures
along the supply chain of these evasion-prone commodities through measures like mandatory einvoicing [irrespective of turnover], mandatory e-way bill [irrespective of invoice value],
mandatory FASTtag/RFID on the vehicle, vehicle tracking through Vahan app & GPS
installation, priority alert in Eway Bills for such products, and mandatory e-invoicing including
B2C invoices under GST for such suppliers. These features would help for stricter enforcement in
these sectors.
19. The issue of fake invoicing and fraudulent exports thereof for claiming undue refund was also
taken up for discussion by the GoM and it was suggested that for commodities like pan masala,
gutkha, chewing tobacco, and similar other goods, the IGST refund route on exports be closed,
similar to the recommendation made for Mentha Oil and if necessary, exports may only be
allowed against LUT with the consequential refund of accumulated input tax credit.
20. The GoM simultaneously emphasized that the Ease of Doing Business shall not be hampered
on account of above suggested measures, and they shall be implemented on system based
interface, to the maximum extent feasible, in order to avoid any potential harassment of the
concerned suppliers.”

5. The said report of GoM was placed before the GST Council in its 49th meeting held on 18
th
February 2023, wherein the Council approved the said recommendations in-principle.
6. The recommendations of the GoM, as approved by the GST Council, were deliberated by the
Law Committee in its meeting held on 10/11.04.2023 and 14/15.06.2023 for further course of action in
respect of the above recommendations of the GoM. The Law Committee has accordingly given the
following recommendations for further action in respect of the GoM report:
S.No. Para
of the
GoM
report
Text of the GoM recommendations Recommendations of the
Law Committee
1 17a. Registration and Details of Machines: Any person
who deals with pan masala, chewing
tobacco and such other tobacco products, as specified,
The special provisions may
be notified under Section
148 of the CGST Act for
Agenda for 50th GSTCM Volume 1
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in any manner, shall in addition to
his registration, take registration of the machines used
in relation to such goods, in the
manner as prescribed.
registration of machines and
special monthly return by
the manufacturers of pan
masala, gutkha and chewing
tobacco. There is no need
for any separate amendment
in CGST Act or CGST
Rules. Draft Notification
recommended by the Law
Committee is enclosed as
Annexure-I of this agenda
note.
Law Committee also
recommended that the said
procedure should only be
implemented through a
system based interface on
the portal.
2 17b. Thus, there would be a mandatory registration of each
machine; this would require disclosure of the
details like make and model of each machine, number
of tracks, packing capacity of each track, total packing
capacity of each machine, total number of machines
installed in the factory.
3 17c. Special Monthly Return: Maintaining of records and
periodic filing of Special Monthly
Return with details such as Machine wise production,
Shift wise production, machine
disposed off with all its details, machine added with all
its details, Inputs procured and utilized in quantity and
value terms, Product-wise and brand-wise details of
clearance in quantity and value terms, shift-wise
records of reading of electricity meters and DG set
meters, waste generation stock, etc., in the manner as
prescribed;
4 17d Certification of production capacity: Production
capacity and quantity in unit per
pouch/container shall be duly certified by registered
Chartered Engineer.
The same may be
incorporated as supporting
document to be uploaded on
the portal during registration
of machine. The procedure
for the same in incorporated
in the Notification for
Special procedure under
section 148 of CGST Act, as
enclosed as Annexure-I of
this agenda note.
5 17e Copy of declaration in respect of production capacity
submitted to other
department/ agency/ organization (if any), etc.
The same is made part of the
special procedure as per the
notification under section
148, enclosed as AnnexureI of this agenda note.
6 17f Disclosure of details of non-working/partially working
machines, etc.;
The registered person
dealing in manufacturing of
pan masala, guthka and
chewing tobacco may be
required to maintain a daily
shift wise record of
production by each machine
in FORM-III, as detailed
in the Notification in
Agenda for 50th GSTCM Volume 1
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Annexure I. Accordingly.
in case any machine is not
working or is partially
working temporarily will get
captured in the said record..
7 17g If required, installation of 24*7 CCTV cameras by the
manufacturers [it was however felt
that this may be intrusive and be considered carefully]
Law Committee
recommended that this can
be considered later on.
8 17h Prescribing a heavy penalty for running any
unregistered machine.
Law Committee felt that a
specific penalty provision
needs to be incorporated in
the CGST Act for nondeclaration of machines by
such manufacturers in
addition to the penalty
provisions specified in
Section 122 of CGST Act.
Law Committee accordingly
proposed insertion of a new
section 122A in CGST Act,
the draft of which is placed
at Annexure-II enclosed
with this agenda note. Law
Committee also
recommended that till the
time the proposed law
amendment comes into
effect, penalty can be
imposed by invoking
provisions of Section 125 of
the CGST Act.
9 17i Gradually, the requirement of unique identification
marking such as QR code or stamps on each
packet/pouch will be prescribed. The unique identifier
shall enable determination of the following:
(a) the date, place and factory of manufacture;
(b) the machine used to manufacture;
(c) the production shift or time of manufacture;
(d) the product description, quantity and maximum
retail sale price;
(e) any other relevant information, as may be
prescribed.
Law Committee
recommended that these
recommendations of
GoM may be taken up at
a later stage after the
implementation of the
special procedure
recommended in above
paras, as they involve
detailed examination of
their technical feasibility
on the system.
10 18 The GoM also suggested that there is a need to further
strengthen the tracking measures along
the supply chain of these evasion-prone commodities
through measures like mandatory eAgenda for 50th GSTCM Volume 1
Page 113 of 394
invoicing[irrespective of turnover],mandatory e-way
bill [irrespective of invoice value], mandatory FAST
tag/RFID on the vehicle, vehicle tracking through
Vahan app & GPS installation, priority alert in EWay Bills for such products, and mandatory einvoicing including B2C invoices under GST for such
suppliers. These features would help for stricter
enforcement in these sectors.
11 19 The issue of fake invoicing and fraudulent exports
thereof for claiming undue refund was also
taken up for discussion by the GoM and it was
suggested that for commodities like pan masala,
gutkha, chewing tobacco, and similar other goods, the
IGST refund route on exports be closed, similar
to the recommendation made for Mentha Oil and if
necessary, exports may only be allowed against
LUT with the consequential refund of accumulated
input tax credit.
Law Committee
recommended that to
implement the said
recommendation of GoM,
the amendment to Section
16 of IGST Act made
through Section 123 of
Finance Act 2021 (which
provided for enabling
provision for restricting
IGST Refund route in
respect of certain supplies or
suppliers), may be notified
at the earliest. Along with
the same, all goods or
services may be notified,
which may be exported on
payment of integrated tax
and on which the supplier of
such goods or services may
claim the refund of tax,
except for the goods
recommended by the GoM
in its report on which the
IGST refund route will not
be available. Draft
notification in this regard is
placed at Annexure-III,
enclosed with this agenda
note.
12 20 The GoM simultaneously emphasized that the Ease of
Doing Business shall not be hampered
on account of above suggested measures, and they
shall be implemented on system based interface, to
the maximum extent feasible, in order to avoid any
potential harassment of the concerned suppliers
In accordance with the said
recommendation of GoM,
Law Committee
recommended that the
registration of machines and
filing of special monthly
return may be done on the
common portal, without
manual interface.
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7. Further, Law Committee has also given the following recommendations with respect to the
implementation of above suggestions:
• GSTN to examine the technical modalities required for implementation of the proposal.
• It was felt by the members of Law Committee that the suggested procedure creates
additional compliance requirements, effectiveness of which needs to be reviewed after a period of
one year.
• Further measures such as stamping, mandatory e-invoicing [irrespective of turnover],
mandatory e-way bill [irrespective of invoice value], mandatory FAST tag/RFID on the vehicle,
trace and track mechanism etc as recommended by GoM may be examined in subsequent phases.
8. Accordingly, the agenda note, along with annexures, is placed before the GST Council for
deliberation and approval.
*******

Agenda for 50th GSTCM Volume 1
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ANNEXURE-I
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (I)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
NOTIFICATION
NO. XX/2023–CENTRALTAX
New Delhi, the XXXX,2023
S.O.(E).—In exercise of the powers conferred by section 148 of the Central Goods and Services Tax
Act,2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the
recommendations of the Council, hereby notifies the following special procedure to be followed by a
registered person engaged in manufacturing of the goods, the description of which is specified in the
corresponding entry in column (3) of the Schedule appended to this notification, and falling under the
tariff item, sub- heading, heading or Chapter, as the case may be, as specified in the corresponding
entry in column (2) of the said Schedule.
Details of Packing Machines
2.1 All the existing registered persons engaged in manufacturing of the goods mentioned in Schedule
to this notification shall furnish the details of packing machines being used for filling and packing
of pouches or containers in FORM SRM-I, within 30 days of issuance of this notification,
electronically on the common portal:,
FORM SRM-I
S.No.
(1)
Make &
Model No. of
the Machine
(including the
name of
manufacturer)
(2)
Date of
Purchase
of the
Machine
(3)
Address
of place
of
business
where
installed
(4)
No. of
Tracks
(5)
Packing
Capacity
of each
track
(6)
Total
packing
capacity
of
machine
(7)
Electricity
consumption
by the
machine per
hour
(8)
Supporting
Documents
(9)
Unique ID
of the
machine
(to be auto
populated)
(10)
<<Capacity
certificate
from
Chartered
Engineer>>
2.2 Any person intending to manufacture goods as mentioned in Schedule to this notification, and
who has been granted registration after the issuance of this notification, shall furnish the details
Agenda for 50th GSTCM Volume 1
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of packing machines being used for filling and packing of pouches or containers in FORM
SRM-I on the common portal, within fifteen days of grant of such registration.
2.3 The details of any additional filling and packing machine being installed in the registered place of
business shall be furnished, electronically on the common portal, by the said registered person
within 24 hours of such installation in FORM SRM-IIA.
2.4 Upon furnishing of such details in FORM SRM-I or FORM SRM-IIA, a unique ID shall be
generated for each machine, whose details have been furnished by the registered person, on the
common portal.
2.5 In case, the said registered person has submitted or declared the production capacity of his
manufacturing unit or his machines, to any other government department or any other agency or
organization, the same shall be furnished by the said registered person in FORM SRM-IA on the
common portal, within fifteen days of filing said declaration or submission:
Provided that where the said registered person has submitted or declared the production capacity
of his manufacturing unit or his machines, to any other government department or any other
agency or organization, before the issuance of this notification, the same shall be furnished by the
said registered person in FORM SRM-IA on the common portal, within thirty days of issuance
of this notification.
FORM SRM-IA
S.No
(1)
Name of Govt. Department/ any other
agency or organization
(2)

Type of Declaration/
Submission
(3)
Details of
Declaration/Submission
(4)
<<copy of declaration
to be uploaded on the
portal>>
2.6 The details of any existing filling and packing machine removed from the registered place of
business shall be furnished, electronically on the common portal, by the said registered person
within 24 hours of such removal in FORM SRM-IIB.
FORM SRM-IIA
[Details of installation of additional machine(s)]
S
.
N
o.
(
1
)
Make
&
Mode
l No.
of the
Mach
ine
(inclu
ding
the
name
of
Date
of
Purc
hase
of
the
Mac
hine
(3)
Date
of
insta
llatio
n of
the
Mac
hine
(4)
Address
of place
of
business
where
installed
(5)
No
. of
Tra
cks
(6)
Pack
ing
Cap
acity
of
each
trac
k
(7)
Total
packi
ng
capac
ity of
machi
ne
(8)
Elec
tricit
y
cons
ump
tion
by
the
mac
hine
per
hour
Supporti
ng
Docume
nts
(10)
Unique
ID of
the
machin
e
(to be
auto
populat
ed)
(11)
Agenda for 50th GSTCM Volume 1
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manu
factur
er)
(2)
(9)
<<Capac
ity
certificat
e from
Chartere
d
Engineer
>>
FORM SRM-IIB
[Details of removal of the existing machine(s)]
S.N
o
(1)
Unique ID
of the
machine
(2)
Make
&
Model
No. of
the
Machi
ne
<<auto
-
populat
ed>>
(3)
Date of
Purchas
e of the
Machin
e
<<autopopulat
ed>>
(4)
Address
of place
of
business
from
where the
machine
is
removed.
<<autopopulated
>>
(5)
No. of
Track
s
<<aut
opopul
ated>
>
(6)
Packing
Capacit
y of
each
track
<<autopopulat
ed>>
(7)
Total
packing
capacit
y of
machin
e
<<autopopulat
ed>>
(8)
Date
of
Rem
oval
(9)
Reasons for
removal/dis
posal of the
machine.
(10)
<<Sold to
third
party>>
<<Scrap>>
Additional records to be maintained by the registered persons manufacturing the goods mentioned
in the Schedule
2.7 Every registered person engaged in manufacturing of goods mentioned in Schedule shall keep a
daily record of inputs being procured and utilized in quantity and value terms along with the
details of waste generated as well as the daily record of reading of electricity meters and DG set
meters in a format as specified in FORM SRM-IIIA in each place of business.
Agenda for 50th GSTCM Volume 1
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2.8 Further, the said registered person shall also keep a daily shift-wise record of Machine-wise
production, product-wise and brand-wise details of clearance in quantity and value terms in a
format as specified in FORM SRM-IIIB in each place of business.
FORM SRM-IIIA
Inputs Register
(1)
HSN
of the
Input
(2)
Descriptio
n of the
Input
(3)
Unit
quantit
y
(4)
Openin
g
Balanc
e
(in
units)
(5)
Quantit
y
procure
d (in
units)
(6)
Quantit
y
procure
d
( value
in Rs)
(7)
Qty
Consume
d (in
units)
(8)
Closin
g
Balanc
e
(in
units)
(9)
Waste
generate
d in
respect
of the
said
input
(qty)
(in
units)
(10)
Day1
HSN
1

HSN
2
HSN
3
………
HSN
n



Day 2
…..
Last
Day

Agenda for 50th GSTCM Volume 1
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of
Mont
h

Day 1 Electricity Reading
Electricity meter reading DG set meter reading Initial Meter Reading Final Meter Reading Consumption (kwH) Initial Meter Reading Final Meter Reading Consumption
(kwH)
Last Day of Month
Agenda for 50th GSTCM Volume 1
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FORM SRM-IIIB
Production Register Day 1
Brand B1 Br
an
d
B2
Br
an
d
Bn
Machine M1( Mention Unique ID of the machine) M
2
M
n
Total
of
all
mach
ines
………………………………….
………………………………….
Total
no. of
Pouc
h
P1
packe
d
Un
it
Va
lue
Of
Po
uc
h
P1
Total
Value
Of
Pouch
es P1
Packe
d(V1)
(in
Rs)
Tot
al
no.
of
Po
uc
h
…
Pn
pa
cke
d
Va
lue
Of
Po
uc
h
…
Pn
Tot
al
Val
ue
Of
Pou
che
s
Pn
Pac
ked
(Vn
)
(in
Rs)
Total
No. of
pouches
Packed
by
Machin
e M1
(P1+P2
+..Pn)
Total
value of
Pouche
s
packed
By
machin
e M1
(in Rs)
(V1+V2
+..Vn)
… -
-
-
Total
Produ
ction
value
of
Brand
B1 by
all
machi
nes
(Rs)
Shi
ft 1
00:
00
to
00.
00
hrs
Shi
ft 2
00:
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Special Monthly Statement
2.9 The said registered person shall submit a special statement for each month in FORM SRM-IV
on the common portal, on or before the tenth day of the month succeeding such month.
FORM SRM-IV
00
to
00.
00
hrs
Shi
ft 3
00:
00
to
00.
00
hrs
Tot
al
for
Da
y 1
Day 2 ….Dayn of
the month
Tot
al
for
the
Mo
nth
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Monthly Statement of Inputs used and the final goods produced by the manufacturer of goods
specified in Schedule to Notification No.XX dated XXX
PART-A
HSN
of the
Input
(2)
Description
of the Input
(3)
Unit
quantity
Opening
Balance
(in units)
(4)
Quantity
procured
(in units)
(5)
Quantity
procured
( value in
Rs)
(6)
Qty
Consumed
(in units)
(7)
Closing
Balance
(in
units)
(8)
Waste
generated
qty
(in units)
(9)
Total
for
Month
HSN1
HSN2
HSN3
…….
HSNn
Electricity Reading
Electricity meter reading DG set meter reading Initial Meter Reading Final Meter Reading Consumption (kwH) Initial Meter Reading Final Meter Consumption
(kwH)
Agenda for 50th GSTCM Volume 1
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Statement of production of goods
PART-B Total for the Month
Brand B1 Br
an
d
B2
Br
an
d
B
n
M1 M
2
M
n
Total
of
all
mach
ines
………………………………….
………………………………….
Total
no. of
Pouc
h
P1
packe
d
M
R
P
Va
lu
e
Of
Po
uc
h
P1
Total
Value
Of
Pouc
hes
P1
Pack
ed(V1
)
(in
Rs)
To
tal
no.
of
Po
uc
h
Pn
pa
ck
ed
Va
lu
e
Of
Po
uc
h
Pn
Tot
al
Val
ue
Of
Pou
che
s
Pn
Pac
ked
(Vn
)
(in
Rs)
Total
No. of
pouche
s
Packed
by
Machin
e M1
(P1+P
2+..Pn
)
Total
value
of
Pouche
s
packed
By
machin
e M1
(in Rs)
(V1+V
2+..Vn)
… -
-
-
Total
Prod
uctio
n
value
of
Bran
d B1
by all
mach
ines
(Rs)
To
Agenda for 50th GSTCM Volume 1
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tal
fo
r
th
e
M
on
th
Agenda for 50th GSTCM Volume 1
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Schedule
S.No Chapter /
Heading / Subheading
/ Tariff item
Description of Goods
(1) (2) (3)
1. 2106 90 20 Pan-masala
2. 2401 Unmanufactured tobacco (without lime tube) –
bearing a brand name
3. 2401 Unmanufactured tobacco (with lime tube) – bearing a
brand name
4. 2401 30 00 Tobacco refuse, bearing a brand name
5. 2403 11 10 'Hookah' or 'gudaku' tobacco bearing a brand name
6. 2403 11 10 Tobacco used for smoking 'hookah' or 'chilam' commonly
known as 'hookah' tobacco or 'gudaku'
not bearing a brand name
7. 2403 11 90 Other water pipe smoking tobacco not bearing a
brand name.
8. 2403 19 10 Smoking mixtures for pipes and cigarettes
9. 2403 19 90 Other smoking tobacco bearing a brand name
10. 2403 19 90 Other smoking tobacco not bearing a brand name
11. 2403 91 00 “Homogenised” or “reconstituted” tobacco, bearing a
brand name
12 2403 99 10 Chewing tobacco (without lime tube)
13. 2403 99 10 Chewing tobacco (with lime tube)
14. 2403 99 10 Filter khaini
15. 2403 99 20 Preparations containing chewing tobacco
16. 2403 99 30 Jarda scented tobacco
17. 2403 99 40 Snuff
18. 2403 99 50 Preparations containing snuff
19. 2403 99 60 Tobacco extracts and essence bearing a brand name
20. 2403 99 60 Tobacco extracts and essence not bearing a brand
Name
21. 2403 99 70 Cut tobacco
22. 2403 99 90 Pan masala containing tobacco ‘Gutkha’
23. 2403 99 90 All goods, other than pan masala containing tobacco
'gutkha', bearing a brand name
24. 2403 99 90 All goods, other than pan masala containing tobacco
'gutkha', not bearing a brand name
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Explanation.–
(1) In this Schedule, “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean
respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to
the Customs Tariff Act, 1975 (51 of 1975).
(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act,
1975, including the Section and Chapter Notes and the General Explanatory Notes of the First
Schedule shall, so far as may be, apply to the interpretation of this notification.
(3) For the purposes of this notification, the phrase “brand name” means brand name or
trade name, whether registered or not, that is to say, a name or a mark, such as symbol,
monogram, label, signature or invented word or writing which is used in relation to such
specified goods for the purpose of indicating, or so as to indicate a connection in the course of
trade between such specified goods and some person using such name or mark with or without
any indication of the identity of that person.
3. This notification shall come into force with effect from the xxth day of XXX, XXX.
[F.No.CBIC-20013/1/2023-GST]
(Alok Kumar)
Director

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ANNEXURE-II
122A. “Notwithstanding anything to the contrary contained in this Act, where any person, who is
engaged in the manufacture of goods in respect of which any special procedure relating to registration
of machines has been mandated under section 148, acts in contravention of the said special procedure,
shall, in addition to any penalty that is paid or is payable by him under chapter XV or Chapter XIX of
this Act, be liable to a penalty equal to an amount of one lakh rupees for every machine not so
registered and every such machine shall be liable to seizure and confiscation:
Provided that the said machine shall not be confiscated where-
(a) the penalty so imposed is paid, and
(b) the said machine is registered in accordance with the said special procedure, within three days of the
order of penalty being communicated to the person in default.”


Agenda for 50th GSTCM Volume 1
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ANNEXURE-III
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION
3, SUB-SECTION (I)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. XX/2023 – Integrated Tax
New Delhi, the ..
thJune, 2023
Notification of a class of goods or services which may be exported on payment of integrated tax
under Section 16 of IGST Act.
In exercise of the powers conferred by sub-section (4) of section 16 of the Integrated Goods and
Services Tax Act, 2017 (13 of 2017) (hereafter referred to as the “said Act”), the Central Government on
the recommendations of the Council, hereby notifies all goods or services, except the following goods, as
the class of goods or services which may be exported on payment of integrated tax and on which the
supplier of such goods or services may claim the refund of tax so paid:
TABLE
S.No Chapter / Heading
/ Sub-heading
/ Tariff item
Description of Goods
(1) (2) (3)
1. 2106 90 20 Pan-masala
2. 2401 Unmanufactured tobacco (without lime tube) –
bearing a brand name
3. 2401 Unmanufactured tobacco (with lime tube) – bearing a
brand name
4. 2401 30 00 Tobacco refuse, bearing a brand name
5. 2403 11 10 'Hookah' or 'gudaku' tobacco bearing a brand name
6. 2403 11 10 Tobacco used for smoking 'hookah' or 'chilam' commonly
known as 'hookah' tobacco or 'gudaku'
not bearing a brand name
7. 2403 11 90 Other water pipe smoking tobacco not bearing a
brand name.
8. 2403 19 10 Smoking mixtures for pipes and cigarettes
9. 2403 19 90 Other smoking tobacco bearing a brand name
10. 2403 19 90 Other smoking tobacco not bearing a brand name
11. 2403 91 00 “Homogenised” or “reconstituted” tobacco, bearing a
brand name
Agenda for 50th GSTCM Volume 1
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12 2403 99 10 Chewing tobacco (without lime tube)
13. 2403 99 10 Chewing tobacco (with lime tube)
14. 2403 99 10 Filter khaini
15. 2403 99 20 Preparations containing chewing tobacco
16. 2403 99 30 Jarda scented tobacco
17. 2403 99 40 Snuff
18. 2403 99 50 Preparations containing snuff
19. 2403 99 60 Tobacco extracts and essence bearing a brand name
20. 2403 99 60 Tobacco extracts and essence not bearing a brand
Name
21. 2403 99 70 Cut tobacco
22. 2403 99 90 Pan masala containing tobacco ‘Gutkha’
23. 2403 99 90 All goods, other than pan masala containing tobacco
'gutkha', bearing a brand name
24. 2403 99 90 All goods, other than pan masala containing tobacco
'gutkha', not bearing a brand name
25. 3301 24 00,
3301 25 10,
3301 25 20,
3301 25 30,
3301 25 40,
3301 25 90
Following essential oils other than those of citrus fruit namely: -
(a) Of peppermint (Mentha piperita);
(b) Of other mints : Spearmint oil (ex-mentha spicata), Water mint-oil
(ex-mentha aquatic), Horsemint oil (ex-mentha sylvestries), Bergament
oil (ex-mentha citrate), Mentha arvensis
Explanation. -
(i) In this Table, “tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff
item, sub-heading, heading and chapters as specified in the First Schedule to the Customs Tariff Act,
1975 (51 of 1975).
(ii) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of
1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule
shall, so far as may be, apply to the interpretation of this notification.
(iii) For the purposes of this notification, the phrase “brand name” means brand name or trade name,
whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or
invented word or writing which is used in relation to such specified goods for the purpose of indicating,
or so as to indicate a connection in the course of trade between such specified goods and some person
using such name or mark with or without any indication of the identity of that person.
2. This notification shall come into force with effect from the xxth day of XXX, XXX.

[F.No….]
(Name)
Designation
Agenda for 50th GSTCM Volume 1
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Agenda Item 3(iii) : Clarification on charging of interest under section 50(3) of the CGST Act, 2017,
in cases of wrong availment of IGST credit and reversal thereof.
References have been received from trade requesting for clarification regarding charging of
interest under section 50(3) of the CGST Act, 2017 in the cases where IGST credit has been wrongly
availed by a registered person. Clarification is being sought as to whether such wrongly availed IGST
credit would be considered to have been utilized for the purpose of charging of interest under section
50(3) of CGST Act, read with rule 88B of CGST Rules, 2017, in cases where though the available
balance of IGST credit in the electronic credit ledger of the said registered person falls below the amount
of such wrongly availed IGST credit, however, the total balance of input tax credit in the electronic credit
ledger of the registered person under the heads of IGST, CGST and SGST taken together remains
more than such wrongly availed IGST credit, at all times, till the time of such reversal of the said wrongly
availed IGST credit.
1.1. To elaborate further, such a situation may arise when IGST credit has been availed and utilized in
the manner/order prescribed under the provisions of GST law i.e. the registered person is required to first
utilize the IGST credit to set off the tax liability following the prescribed order of utilization as per
provision of section 49A of CGST Act and later, it is realized that such IGST credit was wrongly availed
and is required to be reversed as per the provisions of GST law. However, before the reversal of such
credit, though the available balance of IGST credit in electronic credit ledger may have fallen below the
amount of such wrongly availed IGST credit, the total input tax credit balance available in the electronic
credit ledger, under the heads of IGST, CGST and SGST taken together, remains more than such
wrongly availed IGST credit, at all times, till the time of such reversal of wrongly availed IGST credit. In
such case, the reversal of IGST will happen first from balance of IGST credit available in electronic credit
ledger and then remaining from CGST and SGST available in Electronic credit ledger. The issue arises as
to whether interest under section 50(3) shall be payable in such cases or not.
2. Relevant legal provisions of CGST Act and CGST Rules:
2.1 Sub-section (3) of section 50 of the CGST Act, 2017, which provides for charging of interest on
wrongly availed and utilised input tax credit, is reproduced as under:
"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 twentyfour per cent. as may be notified by the Government, on the recommendations of the Council, and
the interest shall be calculated, in such manner as may be prescribed."
2.2. Further, Sub-rule (3) of Rule 88 B which provides for the manner of calculation of interest on
the amount of input tax credit wrongly availed and utilized, reads as follows:
“Rule 88B. Manner of calculating interest on delayed payment of tax.-
(1)…
(2)….
Agenda for 50th GSTCM Volume 1
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(3) In case, where interest is payable on the amount of input tax credit wrongly availed and
utilised in accordance with sub-section (3) of section 50, the interest shall be calculated on the
amount of input tax credit wrongly availed and utilised, for the period starting from the date of
utilisation of such wrongly availed input tax credit till the date of reversal of such credit or
payment of tax in respect of such amount, at such rate as may be notified under said sub-section
(3) of section 50.
Explanation. -For the purposes of this sub-rule, -
(1) input tax credit wrongly availed shall be construed to have been utilised, when the balance in
the electronic credit ledger falls below the amount of input tax credit wrongly availed, and the
extent of such utilisation of input tax credit shall be the amount by which the balance in the
electronic credit ledger falls below the amount of input tax credit wrongly availed.
(2) the date of utilisation of such input tax credit shall be taken to be, -
(a) the date, on which the return is due to be furnished under section 39 or the actual date of
filing of the said return, whichever is earlier, if the balance in the electronic credit ledger falls
below the amount of input tax credit wrongly availed, on account of payment of tax through the
said return; or
(b) the date of debit in the electronic credit ledger when the balance in the electronic credit
ledger falls below the amount of input tax credit wrongly availed, in all other cases."
2.3. Other relevant sections of the CGST Act, 2017 and rules of CGST Rules, 2017 are given below:
Section 2 (63)
“input tax credit” means the credit of input tax;
Section 2 (62)
‘“input tax” in relation to a registered person, means the central tax, State tax, integrated tax or
Union territory tax charged on any supply of goods or services or both made to him and
includes–
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
(c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated
Goods and Services Tax Act;
Agenda for 50th GSTCM Volume 1
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(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective
State Goods and Services Tax Act; or
(e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union
Territory Goods and Services Tax Act,
but does not include the tax paid under the composition levy;’
Section 2(46):
“(46) "electronic credit ledger" means the electronic credit ledger referred to in sub-section (2)
of section 49;”
Section 49 (2):
“(2) The input tax credit as self-assessed in the return of a registered person shall be credited to
his electronic credit ledger, in accordance with section 41, to be maintained in such manner as
may be prescribed.”
Section 41:
Section 41. Availment of input tax credit
(1) Every registered person shall, subject to such conditions and restrictions as may be
prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his return and
such amount shall be credited to his electronic credit ledger.
(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, the said registered person may re-avail the amount of credit reversed by him
in such manner as may be prescribed.]
Rule 86:
“Rule 86. Electronic Credit Ledger.-
(1) The electronic credit ledger shall be maintained in FORM GST PMT-02 for each registered
person eligible for input tax credit under the Act on the common portal and every claim of input
tax credit under the Act shall be credited to the said ledger.
Agenda for 50th GSTCM Volume 1
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(2) The electronic credit ledger shall be debited to the extent of discharge of any liability in
accordance with the provisions of section 49 or section 49A or section 49B.
(3) ……”
Section 49A
Section 49A. Utilisation of input tax credit subject to certain conditions.-
Notwithstanding anything contained in section 49, the input tax credit on account of central tax,
State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax,
State tax or Union territory tax, as the case may be, only after the input tax credit available on
account of integrated tax has first been utilised fully towards such payment.
Rule 88A
Rule 88A. Order of utilization of input tax credit.-
Input tax credit on account of integrated tax shall first be utilised towards payment of integrated
tax, and the amount remaining, if any, may be utilised towards the payment of central tax and
State tax or Union territory tax, as the case may be, in any order:
Provided that the input tax credit on account of central tax, State tax or Union territory tax shall
be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the
case may be, only after the input tax credit available on account of integrated tax has first been
utilised fully.
2.4. As per Section 20 of the IGST Act, 2017, subject to the provisions of IGST Act and the rules
made thereunder, the provisions of Central Goods and Services Tax Act, inter-alia relating to payment of
tax shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation
to central tax as if they are enacted under this Act.
3. The matter has been examined. From the plain reading of rule 88B of CGST Rules, it is noted that
interest is payable on the amount of input tax credit wrongly availed and utilised in accordance with subsection (3) of section 50 of CGST Act for the period starting from the date of utilization of such credit till
the date of reversal thereof or payment of tax in respect of such amount. Further, as per Explanation to
rule 88B of CGST Rules, wrongly availed input tax credit shall be considered to be utilized when the
balance in the electronic credit ledger falls below the said amount of wrongly availed input tax credit, and
will be considered to be utilized to the extent the balance in electronic credit ledger falls below the said
amount of wrongly availed credit. The intent behind such a provision was to charge interest in cases
where the registered person would have been required to pay amount of such wrongly availed credit in
cash, had this credit not been wrongly availed by the said person. In cases where IGST credit has been
wrongly availed and where though sufficient balance may not be available under IGST head of electronic
credit ledger due to requirement of order of utilization of such credit provided under section 49A of
CGST Act and rule 88A of CGST Rules, however, sufficient balance may have been available under
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CGST and SGST heads of electronic credit ledger at all times. In such cases, reversal of credit in respect
of the amount of wrongly availed IGST credit, if required, could have been done from electronic credit
ledger at all times, without requiring payment of the said amount in cash. Accordingly, on the basis of
this, it appears that for the calculation of amount of input tax credit wrongly availed and utilized as
referred in Rule 88B of CGST Rules, no head wise distinction in electronic credit ledger has been
made, rather it is the total input tax credit available in electronic credit ledger, including under the
heads of IGST, CGST and SGST, that has to be considered for calculation of interest under rule
88B of CGST Rules and for determining as to whether the balance in the electronic credit ledger has
fallen below the amount of wrongly availed input tax credit, and to what extent the balance in electronic
credit ledger has fallen below the said amount of wrongly availed credit.
3.1. Thus, it appears that the ‘balance’ mentioned in Rule 88B of CGST Rules in the phrase “balance
in electronic credit ledger has fallen below the amount of input tax credit wrongly availed” does not
imply “balance available after utilization in respective separate head” rather it means balance available in
Electronic credit ledger including all the three heads, i.e. IGST, CGST and SGST.
3.2. The above view is in consonance with the recommendation made by the Council for charging
interest on net cash basis, based on which retrospective amendments have been made in section 50 of
CGST Act. Further, this is also in consonance with the sub-section (1) of section 50 of CGST Act and
sub-rule (1) of rule 88B which provide for the payment of interest in case of late filing of return for a
certain period. Sub-rule (1) of rule 88B provides that “the interest on tax payable in respect of such
supplies shall be calculated on the portion of tax which is paid by debiting the electronic cash ledger, for
the period of delay in filing the said return beyond the due date.” This shows that the intent is not to
charge interest when the reversal of such wrongly availed input tax credit or the equivalent tax payment
could have been made at all times by using available input tax credit in electronic credit ledger including
cross utilization of different heads of IGST, CGST and SGST as allowed under the provisions of GST
law. If the balance of input tax credit available in electronic credit ledger, under the heads of IGST,
CGST and SGST taken together, has been not less that such wrongly availed IGST credit at all times
before such reversal, then it implies that taxpayer has always been in the position to reverse such wrongly
availed credit by using available credit in his electronic credit ledger without requiring a debit from cash
ledger, and therefore, as per intent of GST Council, there should be no interest liability on the said
registered person on this account.
3.3. In view of above, it may be concluded that, in the cases where IGST credit has been wrongly
availed and subsequently reversed on a certain date, there will not be any interest liability under
sub-section (3) of section 50 of CGST Act if, during the time period starting from such availment
and upto such reversal, the balance of input tax credit (ITC) including in electronic credit ledger,
under the heads of IGST, CGST and SGST taken together, has never fallen below the amount of
such wrongly availed ITC, even if available balance of IGST credit in electronic credit ledger
individually falls below the amount of such wrongly availed IGST credit. However, when the
balance of input tax credit (ITC) including under the heads of IGST, CGST and SGST of electronic
credit ledger taken together falls below such wrongly availed amount of IGST credit, then it will
amount to the utilization of such wrongly availed IGST credit and the extent of utilization will be
the extent of the total balance in electronic credit ledger under heads of IGST, CGST and SGST
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falls below such amount of wrongly availed IGST credit, and will attract interest as per section
50(3) of CGST Act read with section 20 of IGST Act and sub-rule (3) of rule 88B of CGST Rules.
The same may be clarified through a circular.
3.4 It may also be noted that as per proviso to section 11 of Goods And Services Tax
(Compensation To States) Act, 2017, input tax credit in respect of compensation cess on supply of
goods and services leviable under section 8 of the said Act can be utilised only towards payment of
compensation cess leviable on supply of goods and services. Thus, credit of compensation cess cannot be
utilized for payment of any tax under CGST/ SGST/ IGST heads and/ or reversals of credit under the said
heads. Accordingly, it may be clarified that credit of compensation cess available in electronic credit
ledger cannot be taken into account while considering the balance of electronic credit ledger for the
purpose of calculation of interest under sub-rule (3) of rule 88B of CGST Rules in respect of wrongly
availed and utilized IGST, CGST or SGST credit.
4. The matter was deliberated by the Law Committee in its meeting held on 14 & 15.06.2023. The
Law Committee recommended that the same may be clarified through a circular (draft circular enclosed
as Annexure A with this agenda note).
5. The agenda is placed before the GST Council for deliberations and approval.

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Annexure A
Circular No. xx/xx//2023-GST
File No. CBEC-20006/06/2023-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
GST Policy Wing
*****
New Delhi, Dated June, 2023
To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of
Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases of
wrong availment of IGST credit and reversal thereof.
References have been received from trade requesting for clarification regarding charging of
interest under sub-section (3) of section 50 of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the “CGST Act”) in the cases where IGST credit has been wrongly availed by a registered
person. Clarification is being sought as to whether such wrongly availed IGST credit would be considered
to have been utilized for the purpose of charging of interest under sub-section (3) of section 50 of CGST
Act, read with rule 88B of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the
“CGST Rules”), in cases where though the available balance of IGST credit in the electronic credit ledger
of the said registered person falls below the amount of such wrongly availed IGST credit, however, the
total balance of input tax credit in the electronic credit ledger of the registered person under the heads of
IGST, CGST and SGST taken together remains more than such wrongly availed IGST credit, at all times,
till the time of such reversal of the said wrongly availed IGST credit.
2. Issue has been examined and to ensure uniformity in the implementation of the provisions of
law across the field formations, the Board, in exercise of its powers conferred by section 168 (1)
of the CGST Act, hereby clarifies the issues as under:
S. No. Issue Clarification
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1. In the cases of wrong availment of
IGST credit by a registered person and
reversal thereof, for the calculation of
interest under rule 88B of CGST Rules,
whether the balance of input tax credit
available in electronic credit ledger
under the head of IGST only needs to
be considered or total input tax credit
available in electronic credit ledger,
under the heads of IGST, CGST and
SGST taken together, has to be
considered.
Since the amount of input tax credit available
in electronic credit ledger, under any of the
heads of IGST, CGST or SGST, can be
utilized for payment of liability of IGST, it is
the total input tax credit available in electronic
credit ledger, under the heads of IGST, CGST
and SGST taken together, that has to be
considered for calculation of interest under
rule 88B of CGST Rules and for determining
as to whether the balance in the electronic
credit ledger has fallen below the amount of
wrongly availed input tax credit of IGST, and
to what extent the balance in electronic credit
ledger has fallen below the said amount of
wrongly availed credit.
Thus, in the cases where IGST credit has been
wrongly availed and subsequently reversed on
a certain date, there will not be any interest
liability under sub-section (3) of section 50 of
CGST Act if, during the time period starting
from such availment and upto such reversal,
the balance of input tax credit (ITC) in the
electronic credit ledger, under the heads of
IGST, CGST and SGST taken together, has
never fallen below the amount of such
wrongly availed ITC, even if available
balance of IGST credit in electronic credit
ledger individually falls below the amount of
such wrongly availed IGST credit. However,
when the balance of input tax credit (ITC),
under the heads of IGST, CGST and SGST of
electronic credit ledger taken together, falls
below such wrongly availed amount of IGST
credit, then it will amount to the utilization of
such wrongly availed IGST credit and the
extent of utilization will be the extent to
which the total balance in electronic credit
ledger under heads of IGST, CGST and SGST
taken together falls below such amount of
wrongly availed IGST credit, and will attract
interest as per sub-section (3) of section 50 of
CGST Act, read with section 20 of Integrated
Goods and Services Tax Act, 2017 and subAgenda for 50th GSTCM Volume 1
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rule (3) of rule 88B of CGST Rules.
2. Whether the credit of compensation cess
available in electronic credit ledger shall
be taken into account while considering
the balance of electronic credit ledger
for the purpose of calculation of interest
under sub-rule (3) of rule 88B of CGST
Rules in respect of wrongly availed and
utilized IGST, CGST or SGST credit.
As per proviso to section 11 of Goods and
Services Tax (Compensation To States) Act,
2017, input tax credit in respect
of compensation cess on supply of goods and
services leviable under section 8 of the said Act
can be utilised only towards payment of
compensation cess leviable on supply of goods
and services. Thus, credit of compensation cess
cannot be utilized for payment of any tax under
CGST or SGST or IGST heads and/ or reversals
of credit under the said heads.
Accordingly, credit of compensation cess
available in electronic credit ledger cannot be
taken into account while considering the balance
of electronic credit ledger for the purpose of
calculation of interest under sub-rule (3) of rule
88B of CGST Rules in respect of wrongly
availed and utilized IGST, CGST or SGST
credit.
3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
4. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)

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Agenda Item 3(iv): Issues pertaining to interpretation of Section 10 of IGST Act, 2017
Reference is invited to Agenda item 7(iii) of the 37th GST Council Meeting (Annexure-A)
wherein an agenda was placed before the GST Council for deliberation and approval of draft circular for
clarifying the interpretation of section 10 of the IGST Act, 2017 for determining the place of supply in
cases where the goods are purchased over the counter (on OTC) basis in one state and thereafter
transported to another state by the recipient. The issue was deliberated by the GST Council and the
Council recommended the following in respect of the said agenda note:
“20.2 The Hon'ble Chairperson felt that the issue should be looked into afresh by the Law
Committee as the destination principle was being questioned and the entire edifice of GST was
based on it. She requested the States to give their opinion in writing along with reasons thereof
for consideration of the issue afresh in the Law Committee.
21. For Agenda item 7(iii), the Council recommended to refer the agenda back to the Law
Committee for considering the issue afresh after obtaining opinion of the States in writing
along with reasons thereof.”
2. In order to implement the recommendations of the Council, GST Council Secretariat requested all
the States to offer their comments vide multiple emails /letters. GST Council Secretariat has forwarded
the comments of the States of Punjab, Gujarat, Himachal Pradesh, Chhattisgarh, Goa, Haryana,
Meghalaya & Nagaland and the UT of Chandigarh on the said agenda note.
3. As directed by the GST Council, after obtaining opinion of the States, Law Committee considered
the issue afresh. Law Committee deliberated on the issue in its meeting held on 02.02.2022, 09.02.2022,
12.10.2022, 10/11.04.2023 and 24.05.2023. The Law Committee agreed that GST is premised on the
principle of destination-based consumption tax wherein tax should flow to the State or Union Territory
where the goods or services are consumed. Even in the over the counter sale, where the goods are handed
over to the customer, it does not imply that the goods are being consumed there. The address of customer
which is on record should signify the place of destination as well as consumption of the said goods. It is
because of this reason that the provision making it mandatory for the suppliers to record the address of the
customer where the supply is of amount greater than Rs 50,000/- , has been incorporated in the CGST
Rules as well. Law Committee further noted that if any other interpretation is adopted, it would result in
the breaking of the ITC chain as the registered person might not get ITC for the supplies that he has
procured from the other State, the delivery of which has been taken on the spot rather than being
transported (for B2B transactions).
4. Law Committee also decided that there is no need for any amendment in section 10 of IGST Act
with regard to supplies made to registered persons. For the supplies made to unregistered persons, Law
Committee approved insertion of a new clause (ca) after clause (c) of sub-section (1) of section 10 of the
IGST Act, 2017. The said clause is reproduced below:
“(ca) where the supply of goods is made to a person other than a registered person, the place of
supply shall, notwithstanding anything to the contrary contained in clause (a) or clause (c), be
the location as per the address of the said person recorded in the invoice issued in respect of the
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said supply and be the location of the supplier where the address of the said person is not
recorded in the invoice.
Explanation.- For the purposes of this clause, recording of the name of the State of the said
person in the invoice shall be deemed to be the recording of the address of the said person.”
5. Accordingly, the agenda note is placed before the GST Council for approval.
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Annexure-A
Agenda for 50th GSTCM Volume 1
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Agenda Item 3(v): Clarification with respect to applicability of e-invoice w.r.t supplies made by a
registered person to Government Departments or establishment/ Government agencies / local
authorities/ PSUs registered solely for the purpose of TDS
Electronic invoicing system was introduced from 01.10.2020 for taxpayers with turnover of more
than Rs. 500 crore in any preceding financial year from 2017-18 onwards for B2B transactions and for
export invoices. The same was extended for taxpayers with turnover of more than Rs. 100 crore from
01.01.2021. Vide notification No. 05/2021-CT dated 08.03.2021, the same was extended for taxpayers
with turnover of more than Rs. 50 crore from 01.04.2021. Further, vide notification No. 01/2022-CT
dated 24.02.2022, the same was extended for taxpayers with turnover of more than Rs. 20 crore from
01.04.2022. Vide notification No. 17/2022-CT dated 01.08.2022, the same was extended for taxpayers
with turnover of more than Rs. 10 crore from 01.10.2022. Now, vide notification No. 10/2023-Central
Tax dated 10.05.2023, it has been proposed to implement e-invoicing for the taxpayers having aggregate
turnover exceeding Rs. 5 Cr from 01.08.2023.
2. Representations have been received seeking clarification with respect to applicability of e-invoice
under rule 48(4) of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST
Rules”) w.r.t supplies made by a registered person, whose turnover exceeds the prescribed threshold for
generation of e-invoicing, to the Government Departments or establishments / Government agencies /
local authorities/ PSUs registered solely for the purpose of deduction of tax at source as per provisions of
section 51 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”).
3. The issue has been examined. “Registered Person” as defined under sub-section (94) of Section 2
of the CGST Act is a person who is registered under Section 25 of the CGST Act but does not include a
person having a Unique Identity Number (UIN). Government Departments/ Offices/ PSUs, who are
required to deduct tax at source as per provisions of Section 51 of the CGST Act, are liable for
compulsory registration in accordance with section 24(vi) of the CGST Act. Therefore, Government
Departments/ Offices registered solely as tax deductors at source are to be treated as registered persons
under the GST law and thus supplies from a registered person to a government entity falls under the
category of B2B supplies. Thus, in case a registered person is supplying taxable goods and services to
Government Departments/Offices and his turnover exceeds the prescribed threshold for generation of einvoice, he will be liable for generation of e-invoice for such supplies.
4. Further, as per Question 13 of Frequently Asked Questions (Version 1.4 dated 30.03.2021)
available on GST Portal, it has been clarified that e-invoicing is applicable for supplies by notified
persons to Government Departments:
“13. Whether e-invoicing is applicable for supplies by notified persons to Government
Departments?
e-invoicing by notified persons is mandated for supply of goods or services or both to a
registered person. Thus, where the Government Department doesn’t have any registration
under GST (i.e. not a ‘registered person’), e-invoicing doesn’t arise. However, where the
Govt. department is having a GSTIN (as entity supplying goods/services/ deducting TDS),
the same has to be mentioned as recipient GSTIN in the e-invoice.”
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5. Law Committee deliberated on the issue in its meeting held on 31.05.2023 and recommended that
it may be clarified through a circular that, the registered person, whose turnover exceeds the prescribed
threshold for generation of e-invoicing, are required to issue e-invoices for the supplies made to such
Government Departments or establishments / Government agencies / local authorities / PSUs, etc under
rule 48(4) of CGST Rules. Accordingly, Law Committee approved a draft Circular which is enclosed as
Annexure-A to this agenda note.
6. The agenda note along with the draft circular (enclosed as Annexure-A) is placed before the GST
Council for deliberation and approval.

Agenda for 50th GSTCM Volume 1
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Annexure-A
Circular No. xx/xx/xxxx-GST
F. No. CBIC-20001/2/2022 - GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, Dated the XXth May, 2023
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of
Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on issue pertaining to e-invoice-reg.
Representations have been received seeking clarification with respect to applicability of e-invoice
under rule 48(4) of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST
Rules”) w.r.t supplies made by a registered person, whose turnover exceeds the prescribed threshold for
generation of e-invoicing, to Government Departments or establishments/ Government agencies/ local
authorities/ PSUs registered solely for the purpose of deduction of tax at source as per provisions of
section 51 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”).
2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of
law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the
CGST Act, hereby clarifies the issue as under:
S. No. Issue Clarification
1. Whether e-invoicing is applicable
for supplies made by a registered
person, whose turnover exceeds
the prescribed threshold for
generation of e-invoicing, to
Government Departments or
establishments/ Government
Government Departments or establishments/
Government agencies/ local authorities/ PSUs,
which are required to deduct tax at source as per
provisions of section 51 of the CGST/SGST Act,
are liable for compulsory registration in accordance
with section 24(vi) of the CGST Act. Therefore,
Government Departments or establishments/
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agencies/ local authorities/ PSUs
which are registered solely for the
purpose of deduction of tax at
source as per provisions of section
51 of the CGST Act?
Government agencies/ local authorities/ PSUs,
registered solely for the purpose of deduction of tax
at source as per provisions of section 51 of the
CGST Act, are to be treated as registered persons
under the GST law as per provisions of clause (94)
of section 2 of CGST Act. Accordingly, the
registered person, whose turnover exceeds the
prescribed threshold for generation of e-invoicing,
is required to issue e-invoices for the supplies made
to such Government Departments or
establishments/ Government agencies/ local
authorities/ PSUs, etc under rule 48(4) of CGST
Rules.
3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
4. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)
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Agenda Item 3(vi): Clarification on refund related issues
References have been received from the field formations seeking clarification on various issues
relating to GST refunds, which need to be immediately addressed to ensure the uniformity in the
implementation of the provisions of law across field formations. The issues raised are enumerated as
under:
2. Refund of accumulatedinput tax credit under Section 54(3) on the basis of that available as
per FORM GSTR 2B: -
2.1 Para 5 of Circular No. 135/05/2020-GST dated 31.03.2020 mentions that refund of accumulated
input tax credit (ITC) is restricted to the input tax credit as per those invoices, the details of which are
uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
Para 5 of the said circular is reproduced below:
“5. Guidelines for refunds of Input Tax Credit under Section 54(3):
5.1 In terms of para 36 of circular No. 125/44/2019-GST dated 18.11.2019, the refund of
ITC availed in respect of invoices not reflected in FORM GSTR-2A was also admissible and
copies of such invoices were required to be uploaded. However, in wake of insertion of sub-rule
(4) to rule 36 of the CGST Rules, 2017 vide notification No. 49/2019-GST dated 09.10.2019,
various references have been received from the field formations regarding admissibility of refund
of the ITC availed on the invoices which are not reflecting in the FORM GSTR-2A of the
applicant.
5.2 The matter has been examined and it has been decided that the refund of accumulated
ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the
supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
Accordingly, para 36 of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to
that extent.”
2.2 However, in view of the insertion of clause (aa) in sub-section (2) of section 16 of the CGST Act,
2017 w.e.f. 1st January, 2022 vide Notification No. 39/2021-C.T. dated 21.12.2021, and the amendment in
Rule 36(4) of CGST Rules, 2017 w.e.f. 1st January, 2022 vide Notification No. 40/2021- CT dated
29.12.2021, references have been received as to whether the refund of the accumulated input tax credit
under section 54(3) of CGST Act shall be admissible on the basis of the input tax credit as reflected in
FORM GSTR-2A or on the basis of that available as per FORM GSTR-2B of the applicant.
2.3 The issue has been examined. It has been noticed that since availment of input tax credit has now
been linked with FORM GSTR-2B w.e.f. 01.01.2022, availability of refund of the accumulated input tax
credit under section 54(3) of CGST Act for a tax period is required to be restricted to input tax credit as
per those invoices, the details of which are reflected in FORM GSTR-2B of the applicant for the said tax
period or for any of the previous tax periods and on which the input tax credit is available to the applicant.
Accordingly, para 36 of Circular No. 125/44/2019-GST dated 18.11.2019, which was earlier modified
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vide Para 5 of Circular No. 135/05/2020-GST dated 31.03.2020, may be further modified to this extent.
Consequently, Circular No. 139/09/2020-GST dated 10.06.2020, which provides for restriction on refund
of accumulated input tax credit on those invoices, the details of which are uploaded by the supplier in
FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant, may also be modified
accordingly.
2.4 As the said amendments in section 16(2) (aa) of CGST Act and Rule 36(4) of CGST Rules have
been brought into effect from 01.01.2022, it is proposed that the said restriction on availability of refund
of accumulated input tax credit for a tax period on the basis of the credit available as per FORM GSTR2B for the said tax period or for any of the previous tax periods, may be made applicable for the refund
claims for the tax period of January 2022 onwards. However, in cases where refund claims for a tax
period from January 2022 onwards have already been disposed of by the proper officer, in accordance
with the extant guidelines in force, the same may not be reopened because of the clarification proposed to
be issued.
2.5 Law Committee deliberated on the issue in its meeting held on 10.04.2023 & 11.04.2023 and
approved the above proposal.
3. Requirement of the undertaking in FORM RFD 01 inserted vide Circular No. 125/44/2019-
GST dated 18.11.2019.
3.1 Para 7 of Circular No. 125/44/2019 dated 18.11.2019 states that:
“Since the functionality of furnishing of FORM GSTR-2 and FORM GSTR-3 remains
unimplemented, it has been decided by the GST Council to sanction refund of provisionally
accepted input tax credit. However, the applicants applying for refund must give an
undertaking to the effect that the amount of refund sanctioned would be paid back to the
Government with interest in case it is found subsequently that the requirements of clause (c) of
sub-section (2) of section 16 read with sub-section (2) of section 42 of the CGST Act have not
been complied with in respect of the amount refunded. This undertaking should be submitted
electronically along with the refund claim.”
3.2 In accordance with the same, the following undertaking was inserted in FORM GST RFD 01:
“I hereby undertake to pay back to the Government the amount of refund sanctioned along
with interest in case it is found subsequently that the requirements of clause (c) of subsection
(2) of section 16 read with sub-section (2) of section 42 of the CGST/SGST Act have not been
complied with in respect of the amount refunded.”
3.3 It may be noted that Section 42 of CGST Act, 2017 has been omitted w.e.f. 1st
October,
2022 vide Notification No. 18/2022-CT dated 28.09.2022. Further, an amendment has also been made in
Section 41 of the CGST Act, 2017, wherein the concept of provisionally accepted input tax credit has
been done away with. Besides, FORM GSTR-2 and FORM GSTR-3 have also been omitted from CGST
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Rules, 2017. In view of this, reference to section 42, FORM GSTR-2 and FORM GSTR-3 needs to be
deleted from the said para in the Circular as well as from the said undertaking.
3.4 It is, therefore, proposed that the para 7 of Circular No. 125/44/2019 dated 18.11.2019 &
undertaking in FORM GST RFD 01 maybe amended as follows:
Para 7:“Since the functionality of furnishing of FORM GSTR-2 and FORM GSTR-3
remains unimplemented, it has been decided by the GST Council to sanction refund of
provisionally accepted input tax credit. However, tThe applicants applying for refund
must give an undertaking to the effect that the amount of refund sanctioned would be paid
back to the Government with interest in case it is found subsequently that the
requirements of clause (c) of sub-section (2) of section 16 read with sub-section (2) of
section 42of the CGST Act have not been complied with in respect of the amount
refunded. This undertaking should be submitted electronically along with the refund
claim.”
Undertaking in FORM GST RFD 01:- “I hereby undertake to pay back to the
Government the amount of refund sanctioned along with interest in case it is found
subsequently that the requirements of clause (c) of subsection (2) of section 16 read with
sub-section (2) of section 42of the CGST/SGST Act have not been complied with in
respect of the amount refunded.”
3.5 Consequentially, Annexure-A to the Circular No. 125/44/2019-GST dated 18.11.2019 also needs
some modification as below:
i. “Undertaking in relation to sections 16(2)(c) and section 42(2)” wherever mentioned in the
column Declaration/Statement/Undertaking/Certificates to be filled online needs to be replaced
by “Undertaking in relation to sections 16(2)(c)”.
ii. “Copy of GSTR-2A of the relevant period” wherever required as supporting documents to be
additionally uploaded needs to be removed/ deleted.
iii. “Self-certified copies of invoices entered in Annexure-A whose details are not found in GSTR2A of the relevant period” wherever required as supporting documents to be additionally
uploaded needs to be removed/ deleted.
3.6 Law Committee deliberated on the issue in its meeting held on 10/11.04.2023 and on 24.05.2023
and approved the abovesaid proposals.
4. Clarification regarding determination of value of adjusted total turnover in the formula
under Rule 89(4):
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4.1 References have been received from trade and field formations seeking clarification regarding
calculation of “adjusted total turnover” under sub-rule (4) of rule 89 of CGST Rules, in view of insertion
of Explanation in sub-rule (4) of rule 89 of CGST Rules vide Notification No. 14/2022-Central Tax dated
05.07.0222. Clarification is being sought as to whether value of goods exported out of India has to be
considered as per Explanation under sub-rule (4) of rule 89 of CGST Rules for the purpose of calculation
of “adjusted total turnover” in the formula under the said sub-rule.
4.2 In this regard, it is worthwhile to mention that consequent to amendment in definition of the
“Turnover of zero-rated supply of goods” vide Notification No. 16/2020-Central Tax dated 23.03.2020,
Circular No. 147/03/2021-GST dated 12.03.2021 was issued which inter alia states 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 of CGST
Rules. The said Circular was issued to clarify inter alia that for the purpose of sub-rule (4) of rule 89, the
value of export/ zero rated supply of goods to be included while calculating “adjusted total turnover” will
be same as being determined as per the amended definition of “Turnover of zero-rated supply of goods”
in the said sub-rule.
4.3 On similar lines, it is proposed to clarify that consequent to Explanation having been inserted in
sub-rule (4) of Rule 89 of CGST Rules vide Notification No. 14/2022- CT dated 05.07.2022, the value of
goods exported out of India to be included while calculating “adjusted total turnover” will be same as
being determined as per the explanation inserted in the said sub-rule.
4.4 Law Committee deliberated on the issue in its meeting held on 14.06.2023 & 15.06.2023 and
approved the abovesaid proposal.
5. Clarification on the scope and computation of the refund on account of inverted duty
structure as provided in sub-section (3) of section 54 and in rule 89 (5) of the CGST Rules, 2017:
5.1 References have been received from the Fertilizer Association of India requesting for clarification
regarding scope and computation of refund on account of inverted duty structure under sub-section (3) of
section 54 of CGST Act, 2017 in case of phosphatic fertilizers and urea in view of the issues raised by
some of the field formations. Fertilizer Association of India has stated that the Phosphatic fertilizers and
Urea attract GST rate of 5% and that the inputs for these fertilizers are Ammonia (taxable at 18%) and
other inputs and packing materials which attract GST rates higher than 5% and that there is an inverted
duty structure as regards these outwards supplies of fertilizers. Additionally, they have stated that such
fertilizers are under Nutrient based Subsidy Scheme of the Government of India, whereby subsidy is
provided by the Government to these fertilizer companies and thus, the fertilizer companies pay GST only
on subsidized value of the fertilizers. It is worthwhile to mention that as per Section 15 of the CGST Act,
2017, the transaction value on the supply of goods shall not include the subsidies provided by the Central
Government or the State Governments. It has been mentioned that some of the field formations are taking
a view that the refund on account of inverted rated supply of goods is not admissible to these fertilizer
units as the accumulation of ITC is on account of value difference between the output and the input
supplies owing to the subsidy portion of value not included in the transaction value of the output supplies
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and not on account of rate difference between the output and input supplies. In addition, some of the field
formations are curtailing the refund amount in respect of such refunds under inverted duty structure to
these fertilizer units by adopting computation methodologies like subtracting the ITC attributable to the
subsidy while the calculating ‘Net ITC’ in the formula prescribed under sub-rule(5) of rule 89 of CGST
Rules, 2017 and in some cases, adding a notional amount to the ‘tax payable on inverted rated supply’ on
account of the tax on the subsidized portion of the value of fertilizers. Request has been made to clarify
the issue to avoid unnecessary litigation.

5.2 The matter has been examined. Sub-section (3) of section 54 of the CGST Act, 2017, which
provides for the refund of any unutilized input tax credit on account of zero-rated supply as well as
inverted duty structure, is reproduced as under:

“(3) Subject to the provisions of sub-section (10), a registered person may claim refund of any
unutilised input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax credit shall be allowed in cases other than-
(i) zero rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being higher than the
rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of
goods or services or both as may be notified by the Government on the recommendations of the
Council:
Provided further that no refund of unutilised input tax credit shall be allowed in cases where the
goods exported out of India are subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or
services or both avails of drawback in respect of central tax or claims refund of the integrated tax
paid on such supplies.”
5.3 On perusal of the above, it can be stated that inter-alia, refund of unutilized input credit may be
available in cases where the credit has accumulated on account of rate of tax on inputs being higher than
the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods
or services or both as may be notified by the Government on the recommendations of the Council.
5.4 In this regard, reference is also invited to sub-rule (5) of the rule 89 of the CGST Rules, 2017,
which provides that in the case of refund on account of inverted duty structure, refund of input tax credit
shall be granted as per the following formula: -
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net
ITC÷ Adjusted Total Turnover} - [{tax payable on such inverted rated supply of goods and
services x (Net ITC ÷ ITC availed on inputs and input services)}].
Explanation: - For the purposes of this sub-rule, the expressions -
(a) "Net ITC" shall mean input tax credit availed on inputs during the relevant period other than
the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and
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["Adjusted Total turnover" and "relevant period" shall have the same meaning as assigned to
them in sub-rule (4).]
5.5 Further, reference is invited to para 54 of the Master Circular No. 125/44/2019-GST dated
18.11.2019 on calculation of refund amount for claims of refund of accumulated ITC on account of
inverted tax structure wherein it has been clarified that where there are multiple inputs attracting different
rates of tax, the term “Net ITC” in the formula provided in rule 89(5) of the CGST Rules covers the ITC
availed on all inputs in the relevant period, irrespective of their rate of tax. Para 54 of the Circular No.
125/44/2019-GST dated 18.11.2019 reads as below:
“54. There have been instances where while processing the refund of unutilized ITC on account
of inverted tax structure, some of the tax authorities denied the refund of ITC of GST paid on those
inputs which are procured at equal or lower rate of GST than the rate of GST on outward supply,
by not including the amount of such ITC while calculating the maximum refund amount as specified
in rule 89(5) of the CGST Rules. The matter has been examined and the following issues are
clarified:
a) Refund of unutilized ITC in case of inverted tax structure, as provided in section 54(3) of the
CGST Act, is available where ITC remains unutilized even after setting off of available ITC for the
payment of output tax liability. Where there are multiple inputs attracting different rates of tax, in
the formula provided in rule 89(5) of the CGST Rules, the term “Net ITC‟ covers the ITC availed
on all inputs in the relevant period, irrespective of their rate of tax.
b) The calculation of refund of accumulated ITC on account of inverted tax structure, in cases
where several inputs are used in supplying the final product/output, can be clearly understood with
the help of following example:
i. Suppose a manufacturing process involves the use of an input A (attracting 5 per cent GST) and
input B (attracting 18 per cent GST) to manufacture output Y (attracting 12 per cent GST).
ii. The refund of accumulated ITC in the situation at (i) above, will be available under section 54(3)
of the CGST Act read with rule 89(5) of the CGST Rules, which prescribes the formula for the
maximum refund amount permissible in such situations.
iii. Further assume that the applicant supplies the output Y having value of Rs. 3,000/- during the
relevant period for which the refund is being claimed. Therefore, the turnover of inverted rated
supply of goods and services will be Rs. 3,000/-. Since the applicant has no other outward supplies,
his adjusted total turnover will also be Rs. 3,000/-.
iv. If we assume that Input A, having value of Rs. 500/- and Input B, having value of Rs. 2,000/-,
have been purchased in the relevant period for the manufacture of Y, then Net ITC shall be equal to
Rs. 385/- (Rs. 25/- and Rs. 360/- on Input A and Input B respectively).
v. Therefore, multiplying Net ITC by the ratio of turnover of inverted rated supply of goods and
services to the adjusted total turnover will give the figure of Rs. 385/-.
vi. From this, if we deduct the tax payable on such inverted rated supply of goods or services,
which is Rs. 360/-, we get the maximum refund amount, as per rule 89(5) of the CGST Rules which
is Rs. 25/-.”
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5.6 In view of the above, it can be stated that that the fundamental principle for grant of refund on
account of inverted tax structure appears to be the rate of tax on inputs being higher than the rate of tax on
outputs. Where there are multiple inputs attracting different rates of tax, the term “Net ITC” in the
formula provided in rule 89(5) of the CGST Rules covers the ITC availed on all inputs in the relevant
period, irrespective of their rate of tax, as long as there are some inputs on which the rate of tax is higher
than the rate of tax on outputs. Further, the taxable value of the outwards supplies has no implication on
the calculation of the refund amount of accumulated input tax credit as per the formula provided under
rule 89(5) of CGST Rules, 2017. Even if the taxable value of the outwards supplies is lower due to the
subsidy being provided by the Government, the refund of accumulation of ITC cannot be denied solely on
the ground that the accumulation of ITC is on account of value difference between the output and the
input supplies.
5.7 Further, in the case of refund on account of inverted duty structure, refund of input tax credit
shall be granted as per the formula prescribed under sub-rule (5) of the rule 89 of the CGST Rules, 2017.
Any deviation from the prescribed formula, by either adopting a calculation of “Net ITC” in variation
with the definition provided under sub-rule(5) of rule 89 of CGST Rules, 2017 by removing the ITC
attributable to the subsidy from the calculation of ‘Net ITC’ or adding a notional amount while
calculating the ‘tax payable on inverted rated supply’ in the said formula, may not be in accordance with
the provisions of sub-rule (5) of rule 89 of CGST Rules.
5.8 Law Committee deliberated on the issue in its meeting held on 24.05.2023 and recommended that
the issue may be clarified through a circular in form of FAQs.
6. Clarification in respect of admissibility of refund where an exporter applies for refund
subsequent to compliance of the provisions of sub-rule (1) of rule 96A:
6.1 Sub-rule (1) of rule 96A of the CGST Rules, 2017 specifies that a registered person availing of
the option to export without payment of integrated tax is required to furnish a bond or a Letter of
Undertaking (LUT), prior to export, binding himself to pay the tax due along with applicable interest
within a period of -
(a) fifteen days after the expiry of three months, or such further period as may be allowed by
the Commissioner, from the date of issue of the invoice for export, if the goods are not
exported out of India; or
(b) fifteen days after the expiry of one year, or such further period as may be allowed by the
Commissioner, from the date of issue of the invoice for export, if the payment of such services
is not received by the exporter in convertible foreign exchange or in Indian rupees, wherever
permitted by the Reserve Bank of India.
6.2 There may be instances where goods could not be exported or payment for export of services
could not be received within time frame as prescribed in clause (a) or (b), as the case may be, of sub-rule
(1) of rule 96A, but the said compliances are made after expiry of the said time lines. The issue as to
whether in such cases, the exporter will have to asked to pay integrated tax first and then to claim
refund of the same, has been clarified in para 45 of Circular No. 125/44/2019 - GST dated 18.11.2019
which is re-produced herewith:
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“…….exports have been zero rated under the IGST Act and as long as goods have actually
been exported even after a period of three months, payment of Integrated tax first and
claiming refund at a subsequent date should not be insisted upon. In such cases, the
jurisdictional Commissioner may consider granting extension of time limit for export as
provided in the said sub-rule on post facto basis keeping in view the facts and circumstances
of each case. The same principle should be followed in case of export of services”
6.3 References have been received in this regard that there are instances where exporters have
voluntarily made payment of integrated tax due along with applicable interest in cases where goods could
not be exported or payment for export of services could not be received within time frame as prescribed in
clause (a) or (b), as the case may be, of sub-rule (1) of rule 96A. Clarification has been sought as to
whether subsequent to export of the said goods or as the case may be, realization of payment in case of
export of services, the said exporters are entitled to claim not only refund of unutilized input tax credit on
account of export but also refund of the integrated tax and interest so paid in compliance of the provisions
of sub – rule (1) of rule 96A.
6.4 The issue has been examined. Reference is drawn to Para 44 of Circular No. 125/44/2019 - GST
dated 18.11.2019 wherein, while clarifying that the facility for export under LUT may be allowed on ex
post facto basis, the following is also stated:
“…it is emphasized that the substantive benefits of zero rating may not be denied where it has
been established that exports in terms of the relevant provisions have been made”.
6.5 On a conjoint reading of the Para 44 and Para 45 of Circular No. 125/44/2019 - GST dated
18.11.2019, it is clear that so long as goods are actually exported or as the case may be, payment is
realized in case of export of services, even if it is beyond the time frame as prescribed in clause (a) or (b)
of sub-rule (1) of rule 96A, the benefit of zero-rated supplies cannot be denied to the concerned exporters
and hence they remain entitled to claim refund of unutilized input tax credit in terms of sub-section (3) of
section 54 of the CGST Act, 2017.
6.6 Further, the exporter may also be entitled to the refund of the amount of integrated tax
paid by him in compliance of the provisions of subrule (1) of rule 96A, subsequent to actual export of
the goods or as the case may be, realization of payment in case of export of services.
6.7 In light of above discussion, it is proposed to clarify that in such cases subsequent to export of the
goods or realization of payment in case of export of services, as the case may be, the said exporters would
be entitled to claim refund of the tax so paid earlier, in compliance of the provisions of sub – rule (1) of
rule 96A of the CGST Rules. It is further proposed that the refund application in the said scenario may be
made under the category “Excess payment of tax”. However, till the time the functionality for filing
refund in respect of claim of IGST refund paid in compliance to provisions of sub-rule (1) of rule 96A of
CGST Rules as “excess payment of tax” is not available on GSTN portal, the applicant may file such
refund application under the category “Any Other”.
6.8 Law Committee deliberated on the issue in its meeting held on 14.06.2023 & 15.06.2023 and
approved the abovesaid proposal stating therein that the exporters cannot be denied the substantive
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benefits of refund accruing to them on account of zero-rated supply and consequently they would be
entitled to refund under Sub-section (3) of Section 54 of CGST Act, 2017 as well as of refund of IGST
paid in compliance of the provisions of sub – rule (1) of rule 96A of the CGST Rules. Law Committee
also recommended that no refund of interest paid can be given in such cases. Law Committee
recommended to clarify the issue through a circular.
7. The draft circular incorporating the clarifications discussed in Para 2, 3, 4, 5 and 6 above,, as
approved by Law Committee, is enclosed at Annexure-A to this agenda note.
8. Accordingly, the Agenda is placed before the GST Council for deliberation and approval.

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ANNEXURE-A
DRAFT
Circular No. xx
CBEC-xx/xx-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the XX May, 2023
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on refund related issues – Reg.
References have been received from the field formations seeking clarification on various issues
relating to GST refunds. In order to clarify these issues and to ensure uniformity in the implementation of
the provisions of law in this regard across the field formations, the Board, in exercise of its powers
conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as
“CGST Act”), hereby clarifies the issues detailed hereunder:
1. Refund of accumulated input tax credit under Section 54(3) on the basis of that available as per
FORM GSTR 2B: -
1.1 In terms of Para 5 of Circular No. 135/05/2020-GST dated 31.03.2020, refund of accumulated
input tax credit (ITC) is restricted to the input tax credit as per those invoices, the details of which are
uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
Para 5 of the said circular is reproduced below:
“5. Guidelines for refunds of Input Tax Credit under Section 54(3):
5.1 In terms of para 36 of circular No. 125/44/2019-GST dated 18.11.2019, the refund of
ITC availed in respect of invoices not reflected in FORM GSTR-2A was also admissible and
copies of such invoices were required to be uploaded. However, in wake of insertion of sub-rule
(4) to rule 36 of the CGST Rules, 2017 vide notification No. 49/2019-GST dated 09.10.2019,
various references have been received from the field formations regarding admissibility of refund
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of the ITC availed on the invoices which are not reflecting in the FORM GSTR-2A of the
applicant.
5.2 The matter has been examined and it has been decided that the refund of accumulated
ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the
supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
Accordingly, para 36 of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to
that extent.”
1.2 However, in view of the insertion of clause (aa) in sub-section (2) of section 16 of the CGST Act,
2017 w.e.f. 1st January, 2022 vide Notification No. 39/2021-Central Tax dated 21.12.2021, and the
amendment in Rule 36(4) of the Central Goods and Services Tax Rules, 1997 (hereinafter referred to as
“CGST Rules”) w.e.f. 1st January, 2022 vide Notification No. 40/2021- Central Tax dated 29.12.2021,
doubts are being raised as to whether the refund of the accumulated input tax credit under section 54(3) of
CGST Act shall be admissible on the basis of the input tax credit as reflected in FORM GSTR-2A or on
the basis of that available as per FORM GSTR-2B of the applicant.
1.3 The matter has been examined and it has been decided that since availment of input tax credit has
been linked with FORM GSTR-2B w.e.f. 01.01.2022, availability of refund of the accumulated input tax
credit under section 54(3) of CGST Act for a tax period shall be restricted to input tax credit as per those
invoices, the details of which are reflected in FORM GSTR-2B of the applicant for the said tax period
or for any of the previous tax periods and on which the input tax credit is available to the applicant.
Accordingly, para 36 of Circular No. 125/44/2019-GST dated 18.11.2019, which was earlier modified
vide Para 5 of Circular No. 135/05/2020-GST dated 31.03.2020, stands modified to this extent.
Consequently, Circular No. 139/09/2020-GST dated 10.06.2020, which provides for restriction on refund
of accumulated input tax credit on those invoices, the details of which are uploaded by the supplier in
FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant, also stands modified
accordingly.
1.4 It is further clarified that as the said amendments in section 16(2) (aa) of CGST Act and Rule
36(4) of CGST Rules have been brought into effect from 01.01.2022, therefore, the said restriction on
availability of refund of accumulated input tax credit for a tax period on the basis of the credit available as
per FORM GSTR-2B for the said tax period or for any of the previous tax periods, shall be applicable for
the refund claims for the tax period of January 2022 onwards. However, in cases where refund claims for
a tax period from January 2022 onwards has already been disposed of by the proper officer before the
issuance of this circular, in accordance with the extant guidelines in force, the same shall not be reopened
because of the clarification being issued by this circular.
2. Requirement of the undertaking in FORM RFD 01 inserted vide Circular No. 125/44/2019-
GST dated 18.11.2019.
2.1 Para 7 of Circular No. 125/44/2019-GST dated 18.11.2019 provides for an undertaking to be
provided by the applicant electronically along with the refund claim in FORM RFD-01 in accordance
with the Rule 89(1) of CGST Rules. Para 7 of Circular No. 125/44/2019-GST dated 18.11.2019 is
reproduced below:
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“7. Since the functionality of furnishing of FORM GSTR-2 and FORM GSTR-3 remains
unimplemented, it has been decided by the GST Council to sanction refund of provisionally
accepted input tax credit. However, the applicants applying for refund must give an
undertaking to the effect that the amount of refund sanctioned would be paid back to the
Government with interest in case it is found subsequently that the requirements of clause (c) of
sub-section (2) of section 16 read with sub-section (2) of section 42 of the CGST Act have not
been complied with in respect of the amount refunded. This undertaking should be submitted
electronically along with the refund claim.”
2.2 In accordance with the same, the following undertaking was inserted in FORM GST RFD-01:
“I hereby undertake to pay back to the Government the amount of refund sanctioned along
with interest in case it is found subsequently that the requirements of clause (c) of subsection
(2) of section 16 read with sub-section (2) of section 42 of the CGST/SGST Act have not been
complied with in respect of the amount refunded.”
2.3 However, Section 42 of CGST Act has been omitted w.e.f. 1st October, 2022 vide Notification
No. 18/2022-CT dated 28.09.2022. Further, an amendment has also been made in Section 41 of the CGST
Act, wherein the concept of provisionally accepted input tax credit has been done away with. Besides,
FORM GSTR-2 and FORM GSTR-3 have also been omitted from CGST Rules. In view of this,
reference to section 42, FORM GSTR-2 and FORM GSTR-3 is being deleted from the said para in the
Circular as well as from the said undertaking. Para 7 of Circular No. 125/44/2019-GST dated 18.11.2019
& the undertaking in FORM GST RFD-01 may, therefore, be read as follows:
Para 7: “The applicants applying for refund must give an undertaking to the effect that the
amount of refund sanctioned would be paid back to the Government with interest in case it
is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 of
the CGST Act have not been complied with in respect of the amount refunded. This
undertaking should be submitted electronically along with the refund claim.”
Undertaking in FORM GST RFD 01:- “I hereby undertake to pay back to the Government
the amount of refund sanctioned along with interest in case it is found subsequently that the
requirements of clause (c) of subsection (2) of section 16 of the CGST/ SGST Act have not
been complied with in respect of the amount refunded.”
3. Consequentially, Annexure-A to the Circular No. 125/44/2019-GST dated 18.11.2019 also
stands amended to the following extent:
i. “Undertaking in relation to sections 16(2)(c) and section 42(2)” wherever mentioned in the
column “Declaration/Statement/Undertaking/Certificates to be filled online” may be read as
“Undertaking in relation to sections 16(2)(c)”.
ii. “Copy of GSTR-2A of the relevant period” wherever required as supporting documents to be
additionally uploaded stands removed/deleted.
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iii. “Self-certified copies of invoices entered in Annexure-B whose details are not found in GSTR-2A
of the relevant period” wherever required as supporting documents to be additionally uploaded
stands removed/deleted.
4. Manner of calculation of Adjusted Total Turnover under sub-rule (4) of Rule 89 of CGST
Rules consequent to Explanation inserted in sub-rule (4) of Rule 89 vide Notification No. 14/2022-
CT, dated 05.07.2022.
4.1 Doubts have been raised as regarding calculation of “adjusted total turnover” under sub-rule (4)
of rule 89 of CGST Rules, in view of insertion of Explanation in sub-rule (4) of rule 89 of CGST Rules
vide Notification No. 14/2022-Central Tax dated 05.07.0222. Clarification is being sought as to whether
value of goods exported out of India has to be considered as per Explanation under sub-rule (4) of rule 89
of CGST Rules for the purpose of calculation of “adjusted total turnover” in the formula under the said
sub-rule..
4.2 In this regard, it is mentioned that consequent to amendment in definition of the “Turnover of
zero-rated supply of goods” vide Notification No. 16/2020-Central Tax dated 23.03.2020, Circular
147/03/2021-GST dated 12.03.2021 was issued which inter alia clarified that the same value of zerorated/ 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.
4.3 On similar lines, it is clarified that consequent to Explanation having been inserted in sub-rule (4)
of rule 89 of CGST Rules vide Notification No. 14/2022- CT dated 05.07.2022, the value of goods
exported out of India to be included while calculating “adjusted total turnover” will be same as being
determined as per the Explanation inserted in the said sub-rule.
5. Clarification on admissibility and computation of refund of accumulated input tax credit
on account of inverted duty structure:-
5.1 There are cases in respect of certain industries/ sectors, such as fertilizers etc., where though there
is an inverted duty structure on account of the rate of tax on some inputs being higher than the rate of tax
on output supplies, but owing to the subsidy being provided by the Government, the taxable value of such
output supplies is lower on account of non-inclusion of the subsidy amount provided by the Government
in taxable value as per provisions of section 15 of the CGST Act. Representations have been received
from the trade requesting for clarification regarding admissibility and computation of refund of
accumulated input tax credit (ITC) on account of inverted duty structure under sub-section (3) of section
54 of the CGST Act, read with sub-rule (5) of rule 89 of the CGST Rules, in such cases as some of the
field formations are denying such refund taking a view that the accumulation of ITC is on account of
value difference between the output and the input supplies owing to the subsidy portion of value not being
included in the taxable value of the output supplies and not on account of rate difference between the
output and input supplies. In addition, some of the field formations are curtailing the refund amount in
respect of such refunds under inverted duty structure by adopting computation methodologies like
subtracting the ITC attributable to the subsidy while the calculating ‘Net ITC’ in the formula prescribed
under sub-rule (5) of rule 89 of CGST Rules and in some cases, adding a notional amount to the ‘tax
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payable on inverted rated supply’ on account of the tax on the subsidized portion of the value of
fertilizers. Request has been made to clarify the issue to avoid unnecessary litigation.
5.2 The issue has been examined and the same is hereby clarified as under:
S. No. Issue Clarification
1. Whether the refund of accumulated
ITC on account of inverted tax
structure under sub-section (3) of
section 54 of the CGST Act read
with sub-rule (5) of rule 89 of the
CGST Rules can be denied on the
ground that the accumulation of ITC
is on account of value difference
between the output and the input
supplies in cases where the taxable
value of the outward supplies is
lower due to the subsidy provided by
the Government.
Also, whether the calculation of the
refund of unutilised input tax credit
on account of inverted duty structure
can be done in such cases by
subtracting the ITC attributable to
the subsidy provided by the
Government from the calculation of
‘Net ITC’ in the formula prescribed
under sub-rule (5) of rule 89 of the
CGST Rules, or by adding a notional
amount to the ‘tax payable on
inverted rated supply’ on account of
the tax on the subsidized portion of
the value in the said formula.
As per sub-section (3) of section 54 of the
CGST Act read with sub-rule (5) of rule 89 of
the CGST Rules, the refund of accumulated
input tax credit is available in cases where rate
of tax on inputs is higher than the rate of tax
on output supplies. The taxable value of the
outward supplies has no implication on the
calculation of the refund amount of
accumulated input tax credit as per the
formula provided under sub-rule (5) of rule 89
of CGST Rules. The refund of accumulated
ITC cannot be denied solely on the ground
that accumulation of input tax credit is due to
the taxable value of the outward supplies
being lower on account of the subsidy being
provided by the Government.
The refund of accumulated input tax credit on
account of inverted duty structure is required
to be calculated as per the formula prescribed
under sub-rule (5) of the rule 89 of the CGST
Rules. No such deviation can be made from
the prescribed formula, either by subtracting
the ITC attributable to the subsidy provided by
the Government while calculating ‘Net ITC’
in variation with the definition provided under
sub-rule (5) of rule 89 of CGST Rules or by
adding a notional amount while calculating the
‘tax payable on inverted rated supply’ in the
said formula.
6. Clarification in respect of admissibility of refund where an exporter applies for refund
subsequent to compliance of the provisions of sub-rule (1) of rule 96A:
6.1 References have been received citing the instances where exporters have voluntarily made payment
of due integrated tax, along with applicable interest, in cases where goods could not be exported or payment
for export of services could not be received within time frame as prescribed in clause (a) or (b), as the case
may be, of sub-rule (1) of rule 96A of CGST Rules. Clarification is being sought as to whether subsequent
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to export of the said goods or as the case may be, realization of payment in case of export of services, the
said exporters are entitled to claim not only refund of unutilized input tax credit on account of export but
also refund of the integrated tax and interest so paid in compliance of the provisions of sub-rule (1) of rule
96A.of CGST Rules.
6.2 It is mentioned that in terms of sub-rule (1) of rule 96A of the CGST Rules, a registered person
availing of the option to export without payment of integrated tax is required to furnish a bond or a Letter
of Undertaking (LUT), prior to export, binding himself to pay the tax due along with applicable interest
within a period of -
(a) fifteen days after the expiry of three months, or such further period as may be allowed by
the Commissioner, from the date of issue of the invoice for export, if the goods are not
exported out of India; or
(b) fifteen days after the expiry of one year, or such further period as may be allowed by the
Commissioner, from the date of issue of the invoice for export, if the payment of such services
is not received by the exporter in convertible foreign exchange or in Indian rupees, wherever
permitted by the Reserve Bank of India
6.3 In this context, it has been clarified inter alia in para 45 of Circular No. 125/44/2019 - GST dated
18.11.2019 that:
“…….exports have been zero rated under the IGST Act and as long as goods have actually
been exported even after a period of three months, payment of Integrated tax first and claiming
refund at a subsequent date should not be insisted upon. In such cases, the jurisdictional
Commissioner may consider granting extension of time limit for export as provided in the said
sub-rule on post facto basis keeping in view the facts and circumstances of each case. The
same principle should be followed in case of export of services”
6.4 Further, in Para 44 of the aforesaid Circular, it has been emphasized that the substantive benefits
of zero rating may not be denied where it has been established that exports in terms of the relevant
provisions have been made.
6.5 The above clarifications imply that as long as goods are actually exported or as the case may be,
payment is realized in case of export of services, even if it is beyond the time frames as prescribed in subrule (1) of rule 96A, the benefit of zero-rated supplies cannot be denied to the concerned exporters.
Accordingly, it is clarified that in such cases, on actual export of the goods or as the case may be, on
realization of payment in case of export of services, the said exporters would be entitled to refund of
unutilized input tax credit in terms of sub-section (3) of section 54 of the CGST Act, if otherwise
admissible.
6.6 It is also clarified that in such cases subsequent to export of the goods or realization of payment in
case of export of services, as the case may be, the said exporters would be entitled to claim refund of the
integrated tax so paid earlier on account of goods not being exported, or as the case be, the payment not
being realized for export of services, within the time frame prescribed in clause (a) or (b), as the case may
be, of sub-rule (1) of rule 96A. It is further being clarified that no refund of the interest paid in compliance
of sub-rule (1) of rule 96A shall be admissible.
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6.7 It may further be noted that the refund application in the said scenario may be made under the
category “Excess payment of tax”. However, till the time the refund application cannot be filed under the
category “Excess payment of tax” due to non-availability of the facility on the portal to file refund of
IGST paid in compliance with the provisions of sub-rule (1) of rule 96A of CGST Rules as ”Excess
payment of tax”, the applicant may file the refund application under the category “Any Other” on the
portal.
7. It is requested that suitable trade notices may be issued to publicize the contents of this circular.
8. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)

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Agenda Item 3(vii): Clarification to deal with difference in Input Tax Credit (ITC) availed in
FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to
31.12.202.
A. Background:
Section 16 of the Central GST Act, 2017 provides for eligibility and conditions for taking the
Input Tax Credit (ITC) for the taxpayer and is reproduced below:
Section 16. Eligibility and conditions for taking input tax credit.-
(1) …
(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;
1
[(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.
………….
(c) subject to the provisions of4
section 41, the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through utilization
of input tax credit admissible in respect of the said supply; and
(d) he has furnished the return under section 39:
Provided that …
1.1 A perusal of the above section leads to the conclusion that input tax credit can be availed by a
registered person only if the conditions specified in section 16 of CGST Act are fulfilled. One of
the conditions for availment of ITC is that the tax charged in respect of the said supply should have
been paid to the Government by the concerned supplier.
1.2 During the initial period of implementation of GST, many suppliers failed to furnish the correct
details of outward supplies in their FORM GSTR-1. Because of such discrepancies in FORM
GSTR-1 of the suppliers, FORM GSTR-2A of their recipients was incomplete. However, the
concerned recipients may have availed input tax credit on the said supplies in their returns in
FORM GSTR-3B, as restrictions in availment of ITC upto certain specified limit beyond the ITC
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available to the registered persons as per FORM GSTR-2A were provided under rule 36(4) only
with effect from 9th October 2019. Such discrepancies between the amount of ITC availed by the
registered persons in their FORM GSTR-3B and the amount as available in their FORM GSTR-2A
are flagged by the tax officers during proceedings such as scrutiny/ audit/ investigation etc.
1.3. In view of this, various representations were received from the trade as well as the tax authorities,
seeking clarification regarding the manner of dealing with such discrepancies between the amount of ITC
availed by the registered persons in their FORM GSTR-3B and the amount as available in their FORM
GSTR-2A.
1.4 The matter was deliberated by the GST Council in its 48th meeting. The Council recommended
that a circular may be issued to clarify the manner of dealing with discrepancies between the amount of
ITC availed by the registered persons in their FORM GSTR-3B and the amount as available in their
FORM GSTR-2A during FY 2017-18 and FY 2018-19. Accordingly, Circular No. 183/15/2022-GST was
issued on 27th December 2022.
B. Analysis:
2.1 Even though the availability of ITC was subjected to restrictions and conditions specified in
Section 16 of Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”) from
1
st July, 2017 itself, restrictions regarding availment of ITC by the registered persons up to certain
specified limit beyond the ITC available as per FORM GSTR-2A were provided under rule 36(4) of
Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) only with effect
from 9th October 2019.
2.2 The said rule allowed availment of Input tax credit by a registered person in respect of invoices or
debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section
37, in FORM GSTR-1 or using the invoice furnishing facility (IFF), to the extent not exceeding 20 per
cent. of the eligible credit available in respect of invoices or debit notes the details of which have been
furnished by the suppliers under sub-section (1) of section 37 of CGST Act in FORM GSTR-1 or using
the IFF. This limit was brought down to 10% w.e.f 01.01.2020 and further reduced to 5% w.e.f.
01.01.2021. The said rule was intended to allow availment of due credit in cases where the suppliers may
have delayed in furnishing the details of outward supplies. Further, w.e.f. 01.01.2022, consequent to
insertion of clause (aa) to sub-section (2) of section 16 of the CGST Act, ITC can be availed only up to
the extent communicated in FORM GSTR-2B. Rule 36(4) of CGST Rules, 2017 presently reads as
follows:
Rule 36. Documentary requirements and conditions for claiming input tax credit.-
(4) No input tax credit shall be availed by a registered person in respect of invoices or debit notes
the details of which are required to be furnished under subsection (1) of section 37 unless,-
(a) the details of such invoices or debit notes have been furnished by the supplier in the statement
of outward supplies in FORM GSTR-1 or using the invoice furnishing facility; and
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(b) the details of input tax credit in respect of such invoices or debit notes have been
communicated to the registered person in FORM GSTR-2B under sub-rule (7) of rule 60.
3.1 As discussed above, rule 36(4) of CGST Rules allowed additional credit to the tune of 20%, 10%
and 5%, as the case may be, during the period from 09.10.2019 to 31.12.2019, 01.01.2020 to 31.12.2020
and 01.01.2021 to 31.12.2021 respectively, subject to certain terms and conditions, in respect of
invoices/supplies that were not reported by the concerned suppliers in their FORM GSTR-1 or IFF,
leading to discrepancies between the amount of ITC availed by the registered persons in their returns in
FORM GSTR-3B and the amount as available in their FORM GSTR-2A.
3.2 It may, however, be noted that such availment of input tax credit was subject to the provisions of
clause (c) of sub-section (2) of section 16 of the CGST Act which provides that ITC cannot be availed
unless tax on the said supply has been paid by the supplier. In this context, it is mentioned that rule 36(4)
of CGST Rules was a facilitative measure and availment of ITC in accordance with rule 36(4) was subject
to fulfilment of conditions of section 16 of CGST Act including those of clause (c) of sub-section (2)
thereof regarding payment of tax by the supplier on the said supply.
3.3 Though the matter of dealing with difference in Input Tax Credit (ITC) availed in FORM GSTR3B as compared to that detailed in FORM GSTR-2A has been clarified for FY 2017-18 and 2018-19
vide Circular No. 183/15/2022-GST dated 27th December, 2022, various representations have been
received seeking clarification regarding the manner of dealing with such discrepancies between the
amount of ITC availed by the registered persons in their FORM GSTR-3B and the amount as available
in their FORM GSTR-2A during the period from 01.04.2019 to 31.12.2021.
C. Proposal:
4. Therefore, in order to ensure uniformity in the implementation of the provisions of the law across
the field formations, the Law Committee in its meeting held on 14.06.2023 and 15.06.2023 recommended
to issue a circular providing clarification regarding the manner of dealing with such discrepancies
between the amount of ITC availed by the registered persons in their FORM GSTR-3B and the amount
as available in their FORM GSTR-2A during the period from 01.04.2019 to 31.12.2021.
5. Accordingly, a Draft Circular on the same is attached at Annexure-A for approval of the Council.

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Annexure – A
Circular No. …../…/2023-GST
F. No. CBIC-20016/13/2023-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the XX June, 2023
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to 31.12.2021– Reg.
Attention is invited to Circular No. 183/15/2022-GST dated 27th December, 2022, vide which
clarification was issued for dealing with the difference in Input Tax Credit (ITC) availed in FORM
GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19, subject to
certain terms and conditions.
2. Even though the availability of ITC was subjected to restrictions and conditions specified in
Section 16 of Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”) from
1
st July, 2017 itself, restrictions regarding availment of ITC by the registered persons upto certain
specified limit beyond the ITC available as per FORM GSTR-2A were provided under rule 36(4) of
Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) only with effect
from 9th October 2019. W.e.f. 09.10.2019, the said rule allowed availment of Input tax credit by a
registered person in respect of invoices or debit notes, the details of which have not been furnished by the
suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using the invoice furnishing facility
(IFF), to the extent not exceeding 20 per cent. of the eligible credit available in respect of invoices or
debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37
of CGST Act in FORM GSTR-1 or using the IFF. The said limit was brought down to 10% w.e.f
01.01.2020 and further reduced to 5% w.e.f. 01.01.2021. The said rule was intended to allow availment of
due credit in cases where the suppliers may have delayed in furnishing the details of outward supplies.
Further, w.e.f. 01.01.2022, consequent to insertion of clause (aa) to sub-section (2) of section 16 of the
CGST Act, ITC can be availed only upto the extent communicated in FORM GSTR-2B.
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3.1 As discussed above, rule 36(4) of CGST Rules allowed additional credit to the tune of 20%, 10%
and 5%, as the case may be, during the period from 09.10.2019 to 31.12.2019, 01.01.2020 to 31.12.2020
and 01.01.2021 to 31.12.2021 respectively, subject to certain terms and conditions, in respect of
invoices/supplies that were not reported by the concerned suppliers in their FORM GSTR-1 or IFF,
leading to discrepancies between the amount of ITC availed by the registered persons in their returns in
FORM GSTR-3B and the amount as available in their FORM GSTR-2A. It may, however, be noted that
such availment of input tax credit was subject to the provisions of clause (c) of sub-section (2) of section
16 of the CGST Act which provides that ITC cannot be availed unless tax on the said supply has been
paid by the supplier. In this context, it is mentioned that rule 36(4) of CGST Rules was a facilitative
measure and availment of ITC in accordance with rule 36(4) was subject to fulfilment of conditions of
section 16 of CGST Act including those of clause (c) of sub-section (2) thereof regarding payment of tax
by the supplier on the said supply.
3.2. Though the matter of dealing with difference in Input Tax Credit (ITC) availed in FORM GSTR3B as compared to that detailed in FORM GSTR-2A has been clarified for FY 2017-18 and 2018-19
vide Circular No. 183/15/2022-GST dated 27th December, 2022, various representations have been
received seeking clarification regarding the manner of dealing with such discrepancies between the
amount of ITC availed by the registered persons in their FORM GSTR-3B and the amount as available
in their FORM GSTR-2A during the period from 01.04.2019 to 31.12.2021.
4. In order to ensure uniformity in the implementation of the provisions of the law across the field
formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act, hereby
clarifies as follows:
(i) Since rule 36(4) came into effect from 09.10.2019 only, the guidelines provided by
Circular No. 183/15/2022-GST dated 27th December, 2022 shall be applicable, in toto, for the
period from 01.04.2019 to 08.10.2019.
(ii) In respect of period from 09.10.2019 to 31.12.2019, rule 36(4) of CGST Rules permitted
availment of Input tax credit by a registered person in respect of invoices or debit notes, the
details of which have not been furnished by the suppliers under sub-section (1) of section 37, in
FORM GSTR-1 or using IFF to the extent not exceeding 20 per cent. of the eligible credit
available in respect of invoices or debit notes, the details of which have been furnished by the
suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using IFF. Accordingly, the
guidelines provided by Circular No. 183/15/2022-GST dated 27th December, 2022 shall be
applicable for verification of the condition of clause (c) of sub-section (2) of Section 16 of CGST
Act for the said period, subject to the condition that availment of Input tax credit by the registered
person in respect of invoices or debit notes, the details of which have not been furnished by the
suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using IFF shall not exceed
20 per cent. of the eligible credit available in respect of invoices or debit notes the details of
which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1
or using IFF. This is clarified through an illustration below:
Illustration:
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Consider a case where the total amount of ITC available as per FORM GSTR-2A of the
registered person was Rs. 3,00,000, whereas, the amount of ITC availed in FORM GSTR-3B
by the said registered person during the corresponding tax period was Rs. 5,00,000. However, as
per rule 36(4) of CGST Rules as applicable during the said period, the said registered person
was not allowed to avail ITC in excess of an amount of Rs 3,00,000*1.2 = Rs.3,60,000.
In the above case, the ITC of Rs 1,40,000 which has been availed in excess of Rs. 3,60,000 shall
not be admissible as per rule 36(4) of CGST Rules as applicable during the said period even if
the requisite certificate as prescribed in Circular No. 183/15/2022-GST dated 27.12.2022 is
submitted by the registered person. Therefore, ITC availed in FORM GSTR-3B in excess of
that available in FORM GSTR-2A upto an amount of Rs 60,000 only (i.e. 3,60,000-3,00,000)
can be allowed subject to production of the requisite certificates as per Circular No.
183/15/2022-GST dated 27.12.2022.
(iii) Similarly, for the period from 01.01.2020 to 31.12.2020, when rule 36(4) of CGST Rules
allowed additional credit to the tune of 10% in excess of the that reported by the suppliers in their
FORM GSTR-1 or IFF, the guidelines provided by Circular No. 183/15/2022-GST dated 27
th
December, 2022 shall be applicable, for verification of the condition of clause (c) of sub-section
(2) of Section 16 of CGST Act for the said period, subject to the condition that availment of Input
tax credit by the registered person in respect of invoices or debit notes, the details of which have
not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or
using the IFF shall not exceed 10 per cent. of the eligible credit available in respect of invoices or
debit notes the details of which have been furnished by the suppliers under sub-section (1) of
section 37 in FORM GSTR-1 or using the IFF.
(iv) Further, for the period from 01.01.2021 to 31.12.2021, when rule 36(4) of CGST Rules
allowed additional credit to the tune of 5% in excess of that reported by the suppliers in their
FORM GSTR-1 or IFF, the guidelines provided by Circular No. 183/15/2022-GST dated 27
th
December, 2022 shall be applicable, for verification of the condition of clause (c) of sub-section
(2) of Section 16 of CGST Act for the said period, subject to the condition that availment of Input
tax credit by the registered person in respect of invoices or debit notes, the details of which have
not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or
using the IFF shall not exceed 5 per cent. of the eligible credit available in respect of invoices or
debit notes the details of which have been furnished by the suppliers under sub-section (1) of
section 37 in FORM GSTR-1 or using the IFF.
5. It is further clarified that consequent to insertion of clause (aa) to sub-section (2) of section 16 of
the CGST Act and amendment of rule 36(4) of CGST Rules w.e.f. 01.01.2022, no ITC shall be allowed
for the period 01.01.2022 onwards in respect of a supply unless the same is reported by his suppliers in
their FORM GSTR-1 or using IFF and is communicated to the said registered person in FORM GSTR2B.
6. Further, it may be noted that proviso to rule 36(4) of CGST Rules was inserted vide Notification
No. 30/2020-CT dated 03.04.2020 to provide that the condition of rule 36(4) shall be applicable
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cumulatively for the period February to August, 2020 and ITC shall be adjusted on cumulative basis for
the said months in the return for the tax period of September 2020. Similarly, second proviso to rule 36(4)
of CGST Rules was substituted vide Notification No. 27/2021-CT dated 01.06.2021 to provide that the
condition of rule 36(4) shall be applicable cumulatively for the period April to June, 2021 and ITC shall
be adjusted on cumulative basis for the said months in the return for the tax period of June 2021. The
same may be taken into consideration while determining the amount of ITC eligibility for the said tax
periods.
7. It may also be noted that these guidelines are clarificatory in nature and may be applied as per the
actual facts and circumstances of each case and shall not be used in the interpretation of the provisions of
law.
8. These instructions will apply only to the ongoing proceedings in scrutiny/ audit/ investigation,
etc. for the period 01.04.2019 to 31.12.2021 and not to the completed proceedings. However, these
instructions will apply in those cases during the period 01.04.2019 to 31.12.2021 where any adjudication
or appeal proceedings are still pending.
9. Difficulty, if any, in the implementation of the above instructions may please be brought to the
notice of the Board. Hindi version would follow.
Sanjay Mangal
Principal Commissioner (GST)

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Agenda Item 3(viii) : Mechanism to deal with differences in ITC between GSTR-2B and GSTR-3B,
along with draft rules and proposed FORM DRC-01C for implementing the same.
On the basis of the recommendations of the Council, Rule 88C has been inserted in CGST Rules,
2017 vide Notification No. 26/2022 - CT dated 26.12.2022 to provide for a mechanism of identification
of taxpayers having difference in the liability declared in FORM GSTR-1 and that reported in FORM
GSTR-3B above a threshold limit and system based intimation to such taxpayers, along with provision for
auto-compliance on part of the taxpayers to explain the difference or take remedial action in respect of
such difference.
2. The Law Committee in its meetings held on 15.03.2023, 10.04.2023 and 11.04.2023 deliberated
upon ways to safeguard revenue by finding suitable manner of handling and controlling the difference in
ITC reported between FORM GSTR-2B and FORM GSTR-3B by the taxpayers, in a manner similar to
that provided for the difference between the liability reported in FORM GSTR-1 and FORM GSTR-3B
vide Rule 88C of CGST Rules, 2017. Law Committee felt that considering large number of taxpayers
involved, such a mechanism should be based on system based identification of the taxpayers based on
certain approved risk criteria and a procedure of auto-compliance on the part of the taxpayers to explain/
take remedial action in respect of such difference.
3. The Law Committee opined that where the input tax credit availed in the return furnished in
FORM GSTR-3B by a registered person exceeds the amount of input tax credit available in accordance
with the auto-generated statement containing the details of input tax credit in FORM GSTR-2B for a tax
period by a more than a certain threshold, the said registered person may be intimated on the portal about
such difference and be directed to either pay an amount equal to the said excess input tax credit along
with interest or explain the difference. Unless the said registered person either deposits the amount
specified in the said intimation or furnishes a reply explaining the reasons for any amount remaining
unpaid, such a person may not be allowed to furnish the details of outward supplies in FORM GSTR-1 or
using invoice furnishing facility for a subsequent tax period. Further, where any amount of the excess
input tax credit remains to be paid and where no explanation or reason for the same is furnished for the
same or where the explanation or reason furnished is not found to be acceptable by the proper officer, the
said amount may be demanded in accordance with the provisions of section 73 or section 74 of the CGST
Act, 2017, as the case may be.
4. To implement the said approach, the Law Committee recommended as follows, subject to final
recommendations of GoM on System Reforms which is also examining this issue and subject to final
recommendations of GST Council:
(i) Insertion of new rule 88D in CGST Rules to communicate the difference between the input tax credit
availed as per FORM GSTR-3B and that available as per FORM GSTR-2B and to direct payment of the
differential amount or explain the difference as below:
88D. Manner of dealing with difference in input tax credit available in auto-generated
statement containing the details of input tax credit and that availed in in return.-
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(1) Where the amount of input tax credit availed by a registered person in the return for a tax
period or periods furnished by him in FORM GSTR-3B exceeds the input tax credit available to
such person in accordance with the auto-generated statement containing the details of input tax
credit in FORM GSTR-2B in respect of the said tax period or periods, as the case may be, by
such amount and such percentage, as may be recommended by the Council, the said registered
person shall be intimated of such difference in Part A of FORM GST DRC-01C, electronically on
the common portal, and a copy of such intimation shall also be sent to his e-mail address provided
at the time of registration or as amended from time to time, highlighting the said difference and
directing him to—
(a) pay an amount equal to the excess input tax credit availed in the said FORM GSTR3B, along with interest payable under section 50, through FORM GST DRC-03, or
(b) explain the reasons for the aforesaid difference in input tax credit on the common
portal,
within a period of seven days.
(2) The registered person referred to sub-rule (1) shall, upon receipt of the intimation referred to
in that sub-rule, either,
(a) pay an amount equal to the excess input tax credit, as specified in Part A of FORM
GST DRC-01C, fully or partially, along with interest payable under section 50, through
FORM GST DRC-03 and furnish the details thereof in Part B of FORM GST DRC-01C,
electronically on the common portal, or
(b) furnish a reply, electronically on the common portal, incorporating reasons in respect
of the amount of excess input tax credit that has still remained to be paid, if any, in Part
B of FORM GST DRC-01C,
within the period specified in the said sub-rule.
(3) Where any amount specified in the intimation referred to in sub-rule (1) remains to be paid
within the period specified in the said sub-rule and where no explanation or reason is furnished
by the registered person in default or where the explanation or reason furnished by such person
is not found to be acceptable by the proper officer, the said amount shall be liable to be
demanded in accordance with the provisions of section 73 or section 74, as the case may be.
(ii) Insertion of a new clause (e) in sub-rule (6) of rule 59 of CGST Rules to enable blocking of FORM
GSTR-1/ IFF for a subsequent tax period unless the taxpayer has reversed the amount specified in the
intimation or has furnished a reply explaining the reasons for any amount remaining to be reversed, as
below:
(e) a registered person, to whom an intimation has been issued on the common portal under the
provisions of sub-rule (1) of rule 88D in respect of a tax period or periods, shall not be allowed
to furnish the details of outward supplies of goods or services or both under section 37, in FORM
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GSTR-1 or using the invoice furnishing facility, for a subsequent tax period, unless he has either
paid the amount equal to the excess input tax credit as specified in the said intimation or has
furnished a reply explaining the reasons in respect of the amount of excess input tax credit that
has still remained to be paid, as required under the provisions of sub-rule (2) of rule 88D.
(iii) FORM GST DRC-01C may be inserted in CGST Rules as required under sub-rule (1) of the
proposed rule 88D (enclosed as Annexure to this agenda note).
(iv) To begin with, difference between the input tax credit availed in FORM GSTR-3B & that available as
per FORM GSTR-2B of more than 20% as well as more than Rs. 25 lakhs may be considered for the
purpose of intimation to the concerned registered person under proposed rule 88D.
5. Accordingly, the recommendations of the Law Committee in para 4 are placed before the Council
for approval.
*****

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Annexure
FORM GST DRC-01C
[See rule 88D]
PART-A (System Generated)
Intimation of difference in input tax credit available in auto-generated statement containing the
details of input tax credit and that availed in return
Ref No: Date:
GSTIN:
Legal Name:
1. It is noticed that the input tax credit availed by you in the return furnished in FORM GSTR-3B
exceeds the amount of input tax credit available to you in accordance with the auto-generated statement
containing the details of input tax credit made available to you in FORM GSTR-2B for the period
<from> <to> by an amount of Rs. …………… The details thereof are as follows:
Form Type Input tax credit available / availed (in Rs.)
IGST CGST SGST/UTGST Cess Total
FORM GSTR-2B
FORM GSTR-3B
Excess input tax credit
availed
2. In accordance with sub-rule (1) of rule 88D, you are hereby requested to either pay an amount
equal to the said excess input tax credit, along with interest payable under section 50, through FORM
GST DRC-03 and furnish the details thereof in Part-B of FORM GST DRC-01C, and/or furnish the
reply in Part-B of FORM GST DRC-01C incorporating reasons in respect of that part of the excess
input tax credit that has remained to be paid, within a period of seven days.
3. It may be noted that where any amount of the excess input tax credit remains to be paid after
completion of a period of seven days and where no explanation or reason for the same is furnished by you
or where the explanation or reason furnished by you is not found to be acceptable by the proper officer,
the said amount shall be liable to be demanded in accordance with the provisions of section 73 or section
74 of the CGST Act, 2017, as the case may be.
4. This is a system generated notice and does not require signature.
PART-B
Reply by Taxpayer in respect of the intimation of difference in input tax credit
Reference No. of Intimation: Date:
A. I have paid the amount equal to the excess input tax credit, as specified in Part A of FORM GST
DRC-01C, fully or partially, along with interest payable under section 50, through FORM GST DRC03, and the details thereof are as below:
ARN of FORM
GST DRC-03
Paid Under
Head
Tax Period IGST CGST SGST/UTGST CESS Interest
AND/OR
B. The reasons in respect of that part of the excess input tax credit that has remained to be paid are
as under:
S. No Brief Reasons for Difference Details
(Mandatory)
Agenda for 50th GSTCM Volume 1
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1
Input tax credit not availed in earlier tax period(s) due to nonreceipt of inward supplies of goods or services in the said tax
period (including in case of receipt of goods in installments).

2 Input tax credit not availed in earlier tax period(s) inadvertently
or due to mistake or omission
3 ITC availed in respect of import of goods, which is not reflected
in FORM GSTR-2B
4 ITC availed in respect of inward supplies from SEZ, which are
not reflected in FORM GSTR-2B
5 Excess reversal of ITC in previous tax periods which is being
reclaimed in the current tax period
6 Recredit of ITC on payment made to supplier, in respect of ITC
reversed as per rule 37 in earlier tax period.
7 Recredit of ITC on filing of return by the supplier, in respect of
ITC reversed as per rule 37A in earlier tax period.
8
FORM GSTR-3B filed with incorrect details and will be
amended in next tax period (including typographical errors,
wrong tax rates, etc.)

9 Any other reasons (Please specify)
Verification
I _________________________________________ hereby solemnly affirm and declare that the
information given hereinabove is true and correct to the best of my knowledge and belief and nothing has
been concealed therefrom.
Signature of Authorised Signatory
Name:
Designation/Status:
Place:
Date:

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Agenda Item 3(ix): Procedure for Recovery of Tax and Interest in terms of Rule 88C(3)
On the recommendations of the GST Council in its 48th meeting held on 17.12.2022, rule 88C
was inserted in the CGST Rules with effect from 26.12.2022 for dealing with cases where the output tax
liability in terms of FORM GSTR-1 of a registered person for any particular month exceeds the output
tax liability disclosed by the said person in the return in FORM GSTR-3B for the said month by
specified amount and specified percentage. Sub-rule (3) of the said rule reads as follows:-
(3) Where any amount specified in the intimation referred to in sub-rule (1) remains unpaid
within the period specified in that sub-rule and where no explanation or reason is furnished by
the registered person in default or where the explanation or reason furnished by such person is
not found to be acceptable by the proper officer, the said amount shall be recoverable in
accordance with the provisions of section 79.
2. The Council had also recommended Law Committee to formulate a separate procedure for
examination of such cases by the proper officer, where the taxpayer deposits the differential tax liability
only partly, with or without an explanation for such short payment, and for further action for recovery of
the unpaid amount in accordance with the provisions of section 79, to the extent no satisfactory
explanation has been provided by the taxpayer for such differential unpaid amount.
3. The Law Committee in its meeting held on 03.05.2023 examined the issue as under:
3.1 Section 79 of the CGST Act provides for recovery of any amount payable by a person to the
Government under any of the provisions of the Act or the rules made thereunder but which remains
unpaid.
3.2 Sub-rule (3) of Rule 88C mentioned above derives its authority from sub-section (12) of Section
75 which reads as under:-
“(12) Notwithstanding anything contained in section 73 or section 74, where any amount of selfassessed tax in accordance with a return furnished under section 39 remains unpaid, either wholly
or partly, or any amount of interest payable on such tax remains unpaid, the same shall be
recovered under the provisions of section 79.
Explanation: For the purposes of this sub-section, the expression “self-assessed tax” shall include
the tax payable in respect of details of outward supplies furnished under Section 37, but not
included in the return furnished under Section 39.”
3.3 Accordingly, the amount of tax liability which has been reported in FORM GSTR-1, but the tax
on which has not been paid in the return in FORM GSTR-3B, and which remains unpaid even after the
‘proceeding’ in terms of sub-rules (1) and (2) of Rule 88C, appears to be recoverable under Section 79.
Besides, there may be cases where interest is recoverable under section 79.
3.4 The manner of recovery of tax has been laid down in Rule 142. Since the amount referred to in
Para 3.3 above is an amount in respect of which even though no adjudication has been conducted, it is,
nevertheless, recoverable under the law. Law Committee was of the view that a separate procedure may
Agenda for 50th GSTCM Volume 1
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be prescribed for recovery of such amount of tax or interest recoverable in accordance with section 75
read with rule 88C, or otherwise.
4. Accordingly, the Law Committee has recommended the following:
(a) a new Rule 142B may be inserted in the CGST Rules as follows:-
142B. Intimation of certain amounts liable to be recovered under Section 79 of the Act.- (1)
Where, in accordance with section 75 read with rule 88C, or otherwise, any amount of tax or
interest has become recoverable under section 79 and the same has remained unpaid, the proper
officer shall intimate, electronically on the common portal, the details of the said amount in
FORM GST DRC-01D, directing the person in default to pay the said amount, along with
applicable interest, or, as the case may the amount of interest, within seven days of the date of the
said intimation and the said amount shall be posted in Part-II of Electronic Liability Register in
FORM GST PMT-01.
(2) The intimation referred to in sub-rule (1) shall be treated as the notice for recovery.
(3) Where any amount of tax specified in the intimation referred to in sub-rule (1) remains unpaid
on the expiry of the period specified in the said intimation, the proper officer shall proceed to
recover the amount that remains unpaid in accordance with the provisions of Rule 143 or Rule
144 or Rule 145 or Rule 146 or Rule 147 or Rule 155 or Rule 156 or Rule 157 or Rule 160.
(b) a new FORM GST DRC-01D may be inserted as follows:
FORM GST DRC –01D
[See rule 142B]
Intimation for amount recoverable under section 79
Reference No. - Date1. Details of intimation:
(a) Financial year:
(b) Tax period: From --- To --------
2. Section(s) of the Act or rule (s) under which intimation is issued: < Drop down or check box
for section 75 (12) r/w 79 may be provided>
3. Details of tax, interest or any amount payable: (Amount in Rs.)
Tax Period Act POS (Place
of Supply)
Tax Interest Penalty Fee Others Total
From To
1 2 3 4 5 6 7 8 9 10
Total
You are hereby directed to make the payment within seven days failing which proceedings shall
be initiated against you to recover the outstanding dues as per the provisions of section 79 of the
Act.
Signature:
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Name:
Designation:
Jurisdiction:
Address:
To,
GSTIN/ID
Name
Address
Note -
1. Only applicable fields may be filled up.
5. Accordingly, the recommendations of the Law Committee in para 4 are placed before the Council
for approval.
*****

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Agenda Item 3(x): Annual Returns for FY 2022-23
Section 44 of the CGST Act provides for filing of Annual Return (FORM GSTR-9/9A) and
Annual Reconciliation Statement (FORM GSTR-9C) by specified taxpayers for every financial year.
Vide Notification no. 56/2019 –CT dated 14th November, 2019, the Annual Return FORM GSTR-9 &
Annual Reconciliation Statement FORM GSTR-9C were simplified for the Financial Years 2017-18 &
2018-19 by making few entries optional. Further, vide Notification No. 79/2020-CT dated 15th October,
2020, said forms were simplified for the Financial Year 2019-20 as well by making few entries/tables
optional. Moreover, the said forms for FY 2020-21 were simplified vide Notification No. 30/2021-CT
dated 30.07.2021 and vide Notification No.14/2022-Central tax dated 05.07.2022 for FY 2021-22.
2. Rule 80 of the CGST Rules, 2017 was amended in light of the amendments in section 35(5) and
section 44 of the CGST Act. In terms of amended provisions, -
(i) the filing of annual return (in FORM GSTR-9/9A) for the FY 2021-22 was exempted for
taxpayers having aggregate annual turnover upto two crore rupees, vide notification No. 10/2022-
CT, dated 05.07.2022;
(iii) the requirement for filing self-certified reconciliation statement in FORM GSTR-9C has
been made for those taxpayers whose aggregate annual turnover is more than Rs. 5 Crores (refer
rule 80(3) of the CGST Rules);
(iii) the Annual Return forms for FY 2021-22 were simplified vide Notification No. 14/2022-
Central tax dated 05.07.2022, making few tables as optional.
3. In light of the same, the Law Committee in its meeting held on 15.03.2023 discussed and
examined requisite changes in Annual Return forms for FY 2022-23 and recommended as under:
(i) Government had introduced new tax rate of 6% for brick kiln taxpayers in FY 2022-23.
Separate rows for the said new tax rate may be inserted in table 9, 11 and Pt. V of FORM GSTR9C.
(ii) The relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and
FORM GSTR-9C may be continued for FY 2022-23. The details of relaxations provided in FY
2021-22 are enclosed as Annexure A to this note.
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(iii) The filing of annual return (in FORM GSTR-9/9A) for the FY 2022-23 may be exempted
for taxpayers having aggregate annual turnover upto two crore rupees, as per the relaxation
extended in previous FYs. Draft notification in this regard is enclosed as Annexure B to this
note.
4. The recommendations of the Law Committee at para 3 are placed before the GST Council for
deliberation and approval.
*****

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Annexure A
The details of relaxations provided in FY 2021-22, which are proposed to be continued in FY 2022-
23
Table 1: Simplification of FORM GSTR-9
Table No. Details of relaxations in previous FYs Status of relaxations in FY
2021-22
4I to 4L 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to either file
4B to 4E net of credit notes/ debit notes/
amendments or report such details separately in 4I
to 4L.
It was informed by GSTN that
tables 4B to 4E and tables 4I to
4L are being separately autopopulated from relevant tables
of GSTR-1. Therefore, the
relaxation was not continued for
FY 2021-22.
5D, 5E and
5F
2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to either
separately report his supplies as exempted, nil rated
and non-GST supply or report consolidated
information for all these three heads in the
“exempted” row only.
The registered person was
required to report Non-GST
supply (5F) separately and was
given an option to either
separately report his supplies as
exempted and nil rated supply or
report consolidated information
for these two heads in the
“exempted” row only.
5H to 5K 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to fill Table
5A to 5F net of credit notes/ debit notes/
amendments or report such details separately in 5H
to 5K.
The relaxation was continued for
FY 2021-22 as there is marginal
or no revenue implication.
6B, 6C, 6D
and 6E
2017-18 & 2018-19: The registered person was
given an option to either report the breakup of
input tax credit as inputs, capital goods and input
services or report the entire input tax credit under
the “inputs” row only.
2019-20 & 2020-21: The registered person was
The relaxation on the pattern of
2020-21 was continued for
2021-22.
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required to report the breakup of input tax credit as
capital goods and was given an option to either
report the breakup of the remaining amount as
inputs and input services or report the entire
remaining amount under the “inputs” row only.
2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to either
report Table 6C (RCM supplies from unregistered
persons) and 6D (RCM supplies from registered
persons) separately or report the consolidated
details of Table 6C and 6D in Table 6D only.
The relaxation was not
continued for 2021-22 as it is
desirable that now the details of
Table 6C and 6D may be sought
separately.
7A to 7E 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given 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) were to be mandatorily reported.
The relaxation was continued for
FY 2021-22.
12 and 13 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to not fill
these tables.
 It was felt that this information is not essential
for the tax administration.
The relaxation was continued for
FY 2021-22.
15 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to not fill
this table.
 It was felt that tax administration already has
all the data on refund and demands for the
taxpayers.
The data is already available
with tax officer in the form of
MIS reports. Therefore, the
relaxation on the pattern of
2020-21 was continued for
2021-22.
16A, 16B
and 16C
2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to not fill
these tables.
The relaxation was continued for
FY 2021-22.
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17 FY 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to not fill
this table.
With effect from the 1st April,
2021, it has been made
mandatory for a taxpayer,
having turnover of more than
five crore rupees in the
preceding financial year, to
furnish 6 digits HSN/ SAC code
on the invoices issued for
supplies of taxable goods and
services. A taxpayer having
turnover of upto five crore in the
preceding financial year is
required to furnish 4 digits HSN
code on B2B invoices.
Accordingly, instructions and
requirements of table 17 were
aligned with these HSN
requirements. The relaxation
was not continued for FY 2021-
22.
18 FY 2017-18, 2018-19, 2019-20 & 2020-21: The
registered person was given an option to not fill
this table.
Since HSN details are not
communicated in GSTR-2A, and
HSN requirements for suppliers
may be different from that for
the annual return filer, it may be
difficult for the annual return
filer to reconcile HSN wise
details of inward supplies.
Therefore, the relaxation was
continued for FY 2021-22.
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Table 2: Simplification of FORM GSTR-9C
Table No. Details of relaxations in previous FYs Status of relaxations
in FY 2022-23
Table No. Details Recommendations
5B to 5N 2017-18, 2018-19, 2019-20 & 2020-21: The registered person
was given an option to not fill these tables. If any adjustments
were required to be reported, then the same could be reported
in Table 5O.
 It was felt 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 also felt 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).
The relaxation was
continued for FY
2021-22.
Table 12B
and 12C
2017-18, 2018-19, 2019-20 & 2020-21: The registered person
was given an option to not fill these tables.
The data in 12B and
12C was sought
separately for FY
2021-22 as the same
would help to
reconcile the input tax
credit reported in the
audited financial
statement with the
input tax credit taken
in the GST returns.
Table 14 2017-18, 2018-19, 2019-20 & 2020-21: The registered person
was given an option to not fill this table.
The relaxation on the
pattern of 2020-21
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 Trade and industry have widely represented that neither
the internal accounts nor the audited financial statements
mandate maintaining of expense-head wise input tax
credit.
was continued for
2021-22.

Agenda for 50th GSTCM Volume 1
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Annexure B
Draft notification to exempt taxpayers having AATO upto Rs. 2 crores from the requirement of
furnishing annual return for FY 2022-23
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION
3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NOTIFICATION
No. --/2023 – Central Tax
New Delhi, the -- June, 2023
G.S.R. ......(E).— In exercise of the powers conferred by the first proviso to section 44 of the Central
Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the
Council, hereby exempts the registered person whose aggregate turnover in the financial year 2022-23 is
up to two crore rupees, from filing annual return for the said financial year.
[F. No. CBIC-20001/2/2022-GST]
(Alok Kumar)
Director

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Annexure C
Draft notification to simplify annual return for FY 2022-23
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NOTIFICATION
No. --/2023 – Central Tax
New Delhi, the -- June, 2023
G.S.R... (E). –In exercise of the powers conferred by section 164 of the Central Goods and Services Tax
Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes
the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: —
1. Short title and commencement.- (1) These rules may be called the Central Goods and Services
Tax (Second Amendment) Rules, 2023.
(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in
the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in
FORM GSTR-9, under the heading Instructions, -
(a) in paragraph 4, -
(A) after the word, letters and figures “or FY 2021-22”, the word, letters and figures “or
FY 2022-23” shall be inserted;
(B) in the Table, in second column, -
(I) against serial numbers 5D, 5E and 5F, the following entries shall be inserted
at the end, namely: –
‘For FY 2022-23, the registered person shall report Non-GST supply (5F)
separately and shall have an option to either separately report his supplies as
exempted and nil rated supply or report consolidated information for these
two heads in the “exempted” row only.’;
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(II) against serial numbers 5H, 5I, 5J and 5K, for the figures and word “2020-21
and 2021-22”, the figures and word “2020-21, 2021-22 and 2022-23” shall
respectively be substituted;
(b) in paragraph 5, in the Table, in second column, -
(A) against serial numbers 6B, 6C, 6D and 6E, for the letters and figures “FY 2019-20,
2020-21 and 2021-22”, the letters, figures and word “FY 2019-20, 2020-21, 2021-22
and 2022-23” shall respectively be substituted;
(B) against serial numbers 7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H, for the figures and word
“2020-21 and 2021-22”, the figures and word “2020-21, 2021-22 and 2022-23” shall
be substituted;
(c) in paragraph 7, -
(A) after the words and figures “filed upto 30th November, 2022.”, the following shall be
inserted, namely: -
“For FY 2022-23, Part V consists of particulars of transactions for the previous
financial year but paid in the FORM GSTR-3B of April, 2023 to October, 2023 filed
upto 30th November, 2023.”;
(B) in the Table, in second column, -
(I) against serial numbers 10 & 11, the following entries shall be inserted at the
end, namely: -
“For FY 2022-23, details of additions or amendments to any of the supplies
already declared in the returns of the previous financial year but such
amendments were furnished in Table 9A, Table 9B and Table 9C of FORM
GSTR-1 of April, 2023 to October, 2023 filed upto 30th November, 2023 shall
be declared here.”;
(II) against serial number 12, -
(1) after the words, letters, figures and brackets “upto 30th November, 2022
shall be declared here. Table 4(B) of FORM GSTR-3B may be used for
filling up these details.”, the following entries shall be inserted, namely: -
“For FY 2022-23, aggregate value of reversal of ITC which was availed in
the previous financial year but reversed in returns filed for the months of
April, 2023 to October, 2023 filed upto 30th November, 2023 shall be
declared here. Table 4(B) of FORM GSTR-3B may be used for filling up
these details.”;
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(2) for the figures and word “2020-21 and 2021-22”, the figures and word
“2020-21, 2021-22 and 2022-23” shall be substituted;
(III) against serial number 13, -
(1) after the words, letters and figures “reclaimed in FY 2022-23, the details of
such ITC reclaimed shall be furnished in the annual return for FY 2022-
23,”, the following entries shall be inserted, namely: -
“For FY 2022-23, details of ITC for goods or services received in the
previous financial year but ITC for the same was availed in returns filed for
the months of April, 2023 to October, 2023 filed upto 30th November, 2023
shall be declared here. Table 4(A) of FORM GSTR-3B may be used for
filling up these details. However, any ITC which was reversed in the FY
2022-23 as per second proviso to sub-section (2) of section 16 but was
reclaimed in FY 2023-24, the details of such ITC reclaimed shall be
furnished in the annual return for FY 2023-24.”;
(2) for the figures and word “2020-21 and 2021-22”, the figures and word
“2020-21, 2021-22 and 2022-23” shall be substituted;
(d) in paragraph 8, in the Table, in second column, -
(A) against serial numbers, -
(I) 15A, 15B, 15C and 15D,
(II) 15E, 15F and 15G,
for the figures and word “2020-21 and 2021-22” wherever they occur, the letters, figures
and word “2020-21, 2021-22 and 2022-23” shall respectively, be substituted.”;
(B) against serial numbers 16A, 16B and 16C for the figures and word “2020-21 and 2021-22”
wherever they occur, the figures and word “2020-21, 2021-22 and 2022-23” shall
respectively be substituted.”;
(C) against serial numbers 17 and 18, the following paragraph shall be inserted at the end,
namely: -
“For FY 2022-23, the registered person shall have an option to not fill Table 18.”;
13. In the said rules, in FORM GSTR-9C,-
(i) in Part A, in the table -
(a) in Sl no 9, after the entry relating to serial number B, the following serial number and
entry relating thereto shall be inserted, namely: -
“B-1 6% .”;
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(b) in Sl no 11, after entry relating to “5%”, the following entry shall be inserted, namely:
-
“6% .”;
(c) in Pt. V, after entry relating to “5%”, the following entry shall be inserted, namely: -
“6% .”;
(ii) under the heading Instructions, -
(a) in paragraph 4, in the Table, in second column, for the figures and word “2020-21 and
2021-22”, wherever they occur, the figures and word “2020-21, 2021-22 and 2022-23”
shall be substituted;
(b) in paragraph 6, in the Table, in second column, against serial number 14, for the
figures and word “2020-21 and 2021-22”, the figures and word “2020-21, 2021-22 and
2022-23” shall be substituted;
[F. No. CBIC-20001/2/2022-GST]
(Alok Kumar)
Director
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide notification No. 3/2017-Central Tax, dated the 19thJune, 2017, published, vide number
G.S.R. 610(E), dated the 19th June, 2017 and last amended, vide notification No. 40/2021-Central Tax,
dated the 29th December, 2021, vide number G.S.R. 902(E), dated the 29th December, 2021.

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Agenda Item 3(xi): Amendment in CGST Rules, 2017 regarding registration
It has been noticed that several unscrupulous elements are misusing the identity of other persons
to obtain fake/ bogus registration under GST, with an intention to defraud the Government exchequer.
Such fake/ non-genuine registrations are being used to fraudulently pass on input tax credit to
unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both.
This menace of fake registrations and issuance of bogus invoices for passing of fake ITC has become a
serious problem, wherein fraudulent people engage in dubious and complex transactions, causing revenue
loss to the government.
2. In order to curb the menace of fake registration, a nation-wide effort in the form of a Special
Drive has been launched by all Central and State Tax administrations during the period 16th May 2023 to
15th July 2023 to detect suspicious / fake GSTINs and to conduct requisite verification and further
remedial action to weed out these fake billers from the GST eco-system and to safeguard Government
revenue. Further, guidelines for Special All-India Drive against fake registrations have been issued vide
Instruction No. 01/2023-GST dated 04.05.2023 and Standard Operating Procedure to be followed for
processing of application of registration is being issued to tighten the registration process.
3. In light of several cases of unscrupulous elements being obtaining fake/ bogus GST registration,
it is desirable to strengthen the process of registration under GST by amending provisions of CGST
Rules, where ever required. Accordingly, the Law Committee in its meetings held on 03.05.2023,
24.05.2023 and 28.06.2023 recommended to amend certain provisions and to extend certain timelines
relating to registration process as specified in CGST rules. The proposed amendment in CGST rules are
as under:
3.1 Amendment in rule 10A:
3.1.1 As per provisions of rule 10A of CGST Rules, the registered person is required to furnish details
of bank account, which is in name of the registered person and has been obtained on PAN of the registered
person, within a period of 45 days from the date of grant of registration or the date on which return under
section 39 of CGST is due to be furnished, whichever is earlier.
3.1.2 It is proposed that we may amend the said rule to provide that the details of such bank account
may be required to be furnished before filing of statement of outwards supply under section 37 of CGST
Act in FORM GSTR-1/ IFF.
3.1.3 Accordingly, the Law Committee recommended the following amendment in rule 10A (shown in
red):
Rule 10A. Furnishing of Bank Account Details. -
After a certificate of registration in FORM GST REG-06 has been made available on the common
portal and a Goods and Services Tax Identification Number has been assigned, the registered person,
except those who have been granted registration under rule 12 or, as the case may be rule 16, shall as
soon as may be, within a period of but not later than thirty forty five days from the date of grant of
Agenda for 50th GSTCM Volume 1
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registration, or before furnishing the details of outward supplies of goods or services or both under
section 37 in FORM GSTR-1 or using invoice furnishing facility or the date on which the return
required under section 39 is due to be furnished, whichever is earlier, furnish information with
respect to details of bank account, which is in name of the registered person and obtained on
Permanent Account Number of the registered person*or any other information, as may be required on
the common portal in order to comply with any other provision:
Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor
shall also be linked with the Aadhaar number of the proprietor*.
(*Text in italics is not notified yet.)
3.2 Amendment to sub-rule (2A) of rule 21A:
3.2.1 Provisions of Rule 21A of the CGST Rules provides the grounds for suspension of registration.
Sub-rule (2A) thereof enumerates certain additional grounds for suspension of registration. In view of
several cases of suspicious/ fake registrations based on forged documents, it is proposed that system based
suspension of the registration may be made in respect of such registered persons who either do not furnish
details of valid bank account under rule 10A of CGST Rules within the time period prescribed in the said
rule or where the details of the bank account furnished by the said registered person are not validated by
the bank within the time period prescribed under rule 10(A).
3.2.2 Accordingly, the Law Committee recommended that sub-rule (2A) of rule 21A of CGST Rules
may be amended as follows (shown in red):
(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,
orsuch 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,; or where there is a contravention of the
provisions of rule 10A, 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 or non-compliances and asking him to explain, within a period of thirty days, as to why his
registration shall not be cancelled.
3.2.3 Further, the Law Committee also recommended that for providing for automatic revocation of
suspension upon compliance with provisions of rule 10A, 3rd proviso may be inserted in sub-rule (4) of
rule 21A of CGST Rules as under:
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“Provided also that where the registration has been suspended under sub-rule (2A) for
contravention of provisions of rule 10A and the registration has not already been cancelled
by the proper officer under rule 22, the suspension of registration shall be deemed to be
revoked upon compliance with the provisions of rule 10A.”
3.3 Amendment to sub-rule (6) of rule 59:
3.3.1 It is proposed that in cases where a registered person has not furnished details of a valid bank
account under rule 10A or where the said bank account is not validated, the said registered person may
not be allowed to furnish the details of outward supplies in FORM GSTR-1 or using IFF.
3.3.2 Accordingly, the Law Committee has recommended that clause (e) may be inserted in sub-rule
(6) of rule 59 to provide for the same, as below:
Rule 59. Form and manner of furnishing details of outward supplies.-
(6)…..
…..
(e) a registered person shall not be allowed to furnish the details of outward supplies of goods or
services or both under section 37 in FORM GSTR-1, or using the invoice furnishing facility if he
has not furnished the details of the bank account as per the provisions of rule 10A.
3.4 Amendment in CGST Rules regarding physical verification of business premises
3.4.1 In the context of various reports of unscrupulous elements obtaining fake registrations and
passing on fake ITC, the Law Committee deliberated the issue of strengthening the process of verification
of registration applications.
3.4.2. It was deliberated that the physical verification of business premises needs strengthening in highrisk cases. In this regards, Rule 9(1) and rule 25 of the CGST Rules, 2017 are quoted as under:
Rule 9. Verification of the application and approval:
(1) The application shall be forwarded to the proper officer who shall examine the application
and the accompanying documents and if the same are found to be in order, approve the grant of
registration to the applicant within a period of seven working days from the date of submission of
the application:
Provided that where –
(a) a person, other than a person notified under sub-section (6D) of section 25, fails to
undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does
not opt for authentication of Aadhaar number; or
(aa) a person, who has undergone authentication of Aadhaar number as specified in subrule (4A) of rule 8, is identified on the common portal, based on data analysis and risk
parameters, for carrying out physical verification of places of business; or
(b) the proper officer, with the approval of an officer authorised by the Commissioner not
below the rank of Assistant Commissioner, deems it fit to carry out physical verification
of places of business,
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the registration shall be granted within thirty days of submission of application, after physical
verification of the place of business in the presence of the said person, in the manner provided
under rule 25 and verification of such documents as the proper officer may deem fit;
Rule 25. Physical verification of business premises in certain cases. –
Where the proper officer is satisfied that the physical verification of the place of business of a
person is required due to failure of Aadhaar authentication or due to not opting for Aadhaar
authentication before the grant of registration, or due to any other reason after the grant of
registration, he may get such verification of the place of business, in the presence of the said
person, done and the verification report along with the other documents, including photographs,
shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen
working days following the date of such verification.
3.4.3 It was opined that the requirement of physical verification of business premises in the presence of
the applicant poses risk of manipulation by unscrupulous applicants making temporary arrangements in
anticipation of the officer as well as risk of undue delays in case of wilful absence of the applicant. It was
further noted that rule 25 of CGST Rules provide for physical verification before grant of registration
only in cases where either Aadhaar authentication has failed or where Aadhaar authentication has not
been opted. The said rule does not provide for physical verification before grant of registration in cases
where physical verification of place of business is required as per provisions of clause (aa) and clause (b)
of sub-rule (1) of rule 9 of CGST Rules in high risk Aadhaar authenticated cases. Accordingly, it may be
required to amend rule 25 of CGST Rules to provide for the same.
3.4.4. Accordingly, the Law Committee recommended that the requirement of the presence of the
applicant for physical verification of business premises may be done away with. Law Committee also
recommended to make a provision in rule 25 for physical verification in high risk cases even where
Aadhaar has been authenticated. For this purpose, Rule 9(1) and Rule 25 may be amended as under;
(i) sub-rule (1) of rule 9 may be amended as below:
(1) The application shall be forwarded to the proper officer who shall examine the
application and the accompanying documents and if the same are found to be in order,
approve the grant of registration to the applicant within a period of seven working days
from the date of submission of the application:
Provided that where –
(a) a person, other than a person notified under sub-section (6D) of section 25,
fails to undergo authentication of Aadhaar number as specified in sub-rule (4A)
of rule 8 or does not opt for authentication of Aadhaar number; or
(aa) a person, who has undergone authentication of Aadhaar number as
specified in sub-rule (4A) of rule 8, is identified on the common portal, based on
data analysis and risk parameters, for carrying out physical verification of
places of business; or
(b) the proper officer, with the approval of an officer authorised by the
Commissioner not below the rank of Assistant Commissioner, deems it fit to
carry out physical verification of places of business,
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the registration shall be granted within thirty days of submission of application, after
physical verification of the place of business in the presence of the said person, in the
manner provided under rule 25 and verification of such documents as the proper officer
may deem fit;
(ii) Rule 25 may be amended so as to provide for separate procedures for the cases where
physical verification of the business premises is required pre-registration and post-registration, as
follows:
Rule 25. Physical verification of business premises in certain cases. –
Where the proper officer is satisfied that the physical verification of the place of business
of a person is required due to failure of Aadhaar authentication or due to not opting for
Aadhaar authentication before the grant of registration, or due to any other reason after
the grant of registration, he may get such verification of the place of business, in the
presence of the said person, done and the verification report along with the other
documents, including photographs, shall be uploaded in FORM GST REG-30 on the
common portal within a period of fifteen working days following the date of such
verification.
(1) Where the proper officer is satisfied that the physical verification of the place of
business of a person is required after the grant of registration, he may get such
verification of the place of business done and the verification report along with the other
documents, including photographs, shall be uploaded in FORM GST REG-30 on the
common portal within a period of fifteen working days following the date of such
verification.
(2) Where the physical verification of the place of business of a person is required before
the grant of registration in the circumstances specified in the proviso to sub-rule (1) of
rule 9, the proper officer shall get such verification of the place of business done and the
verification report along with the other documents, including photographs, shall be
uploaded in FORM GST REG-30 on the common portal at least five working days prior
to the completion of the time period specified in the said proviso.
4. Further, the above amendments in CGST Rules referred in Para 3.1, 3.2 and 3.3 may be notified
once the functionality for the same is made available on the portal by GSTN.
5. Accordingly, the agenda is placed before the Council for approval.
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Agenda Item 3(xii): Clarification on TCS liability under Sec 52 of the CGST Act, 2017, in case of
multiple E-commerce Operators (ECOs) in one transaction
Reference has been received from the Department for Promotion of Industry and Internal Trade
(DPIIT), Ministry of Commerce & Industry requesting to issue necessary clarification regarding TCS
liability under section 52 of the CGST Act, 2017, in case of multiple E-commerce Operators (ECOs) in
one transaction, in the context of Open Network for Digital Commerce (ONDC).
2. Context
2.1 Open Network for Digital Commerce (ONDC) is an initiative by DPIIT, Ministry of Commerce
aimed at democratising digital commerce by establishing an interoperable open network for all aspects of
the exchange of goods and services. ONDC is based on open specifications and open network protocols.
It is a shift from the traditional paradigm of e-commerce in that it is not dependent on any specific
platform and technology, but rather on a network of platforms/applications which are interoperable.
ONDC enables these diverse entities to interact with each other to provide a seamless e-commerce
experience for buyers and sellers, irrespective of the platform/application they use to be digitally visible/
available.
2.2 One critical feature of the ONDC Network’s architecture is that the functions of the e-commerce
platform/marketplace can be unbundled and managed by separate entities. So buyer-side platforms (called
Buyer Apps) handle solely buyer-side functions - for example, customer on-boarding, search and
discovery, product selection and placing the order. Correspondingly, seller-side platforms (called Seller
Apps) handle solely seller-side functions - such as merchant on-boarding, catalogue management, order
flow management etc. Seller-side platforms can operate as pure-play marketplaces (Marketplace Seller
Apps) enabling diverse sellers to offer their products / services, or as inventory sellers (Inventory Seller
Apps).
2.3 All transactions are between a buyer and seller which are enabled through Buyer App and Seller
App. The fees and commissions against these transactions may be charged by the two platforms as per
mutually acceptable terms. The role of ONDC is to provide interoperability for these platforms through its
protocol specification to enable these entities to transact seamlessly. ONDC is not a party to any
transaction and it does not have any visibility to any transaction.
2.4 One salient difference between the ONDC model and existing e-commerce models is that in the
ONDC Network, there can be two intermediaries between the buyer and seller, where in traditional ecommerce there typically is only one intermediary operating a closed platform connecting the buyer and
seller. With the new business architecture, and with participation from a broader cross-section of the
industry - especially by a large number of small and medium enterprises – clarity has been sought
regarding the TCS obligations in case of ONDC model of multiple ECOs.

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3. TCS obligations in case of multiple Electronic Commerce Operators:
3.1 In the current platform-centric model of e-commerce, the buyer interface and seller interface are
operated by the same ECO. This ECO collects the consideration from the buyer, deducts the TCS under
Sec 52 of the CGST Act, credits the deducted TCS amount to the GST cash ledger of the seller and passes
on the balance of the consideration to the seller after deducting their service charges.
3.2 In the case of the ONDC Network, there can be multiple ECOs in a transaction - one providing an
interface to the buyer and the other providing an interface to the seller. In this setup, buyer side ECO
(Buyer App) could collect consideration, deduct their commission and pass on the consideration to the
seller side ECO (Seller App).
3.3 In this context, DPIIT has sought clarity as to which of the ECOs is required to deduct TCS under
section 52 of CGST Act, as in the ONDC model, both Buyer App and Seller App qualify as ECO as per
Section 2(45) of the CGST Act. DPIIT has further requested for either issuance of a clarification through
a circular or appropriate amendment in provisions of CGST Act and CGST Rules and the concerned
forms to clarify the matter.
4. The matter has been examined as under:
4.1 Clause (44) of Section 2 of CGST Act defines "electronic commerce" to mean the supply of
goods or services or both, including digital products over digital or electronic network. Clause (45) of
Section 2 defines "electronic commerce operator" to mean any person who owns, operates or manages
digital or electronic facility or platform for electronic commerce. Further, Section 52 of CGST Act inter
alia provides that every electronic commerce operator, not being an agent, shall collect an amount
calculated at such rate not exceeding one per cent., as may be notified by the Government on the
recommendations of the Council, of the net value of taxable supplies made through it by other suppliers
where the consideration with respect to such supplies is to be collected by the operator.
4.2 The issue of liability to deduct TCS has been clarified in “FAQs on TCS under GST” dated
28.12.2018 in the context of multiple ECOs, as below:
Sr. No. Question Answer
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28. Under multiple ecommerce model, Customer books a
Hotel via ECO-1 who in turn is integrated with ECO-2
who has agreement with the hotelier. In this case, ECO-1
will not have any GST information of the hotelier. Under
such circumstances, which e-commerce operator should
be liable to collect TCS?
TCS is to be collected by that eCommerce operator who is making
payment to the supplier for the
particular supply happening through
it, which is in this case will be ECO2.
4.3 In a situation where multiple ECOs are involved in a transaction through ECO platform, the
buyer-side ECO may not have the requisite details of the supplier and thus may not be in a position to
collect TCS and make other compliances of ECO under section 52 of CGST Act read with the provisions
of CGST Rules. On the other hand, the supplier-side ECO will have the requisite details of the supplier
and will also be releasing the payment to the supplier for the supply made through the said ECO and
therefore, will be in a position to comply with the requirements cast upon an ECO under section 52 of
CGST Act read with provisions of the CGST Rules.
5. In view of the above, the Law Committee in its meeting held on 24.05.2023 recommended that it
may be clarified through a circular that in a situation where multiple ECOs are involved in a single
transaction through ECO platform, the compliances under section 52 of CGST Act, including collection
of TCS, is to be done by the supplier-side ECO who finally releases the payment to the supplier for a
particular supply made by the said supplier through him. Accordingly, the following may be clarified
through a circular (draft circular is enclosed as Annexure A):
Issue 1: In a situation where multiple ECOs are involved in a single transaction of supply of
goods or services or both through ECO platform and where the supplier-side ECO himself
is not the supplier in the said supply, who is liable for compliances under section 52
including collection of TCS?
Clarification: In such a situation where multiple ECOs are involved in a single transaction of
supply of goods or services or both through ECO platform and where the supplier-side ECO
himself is not the supplier of the said goods or services, the compliances under section 52 of
CGST Act, including collection of TCS, is to be done by the supplier-side ECO who finally
releases the payment to the supplier for a particular supply made by the said supplier through
him.
e.g.: Buyer-side ECO collects payment from the buyer, deducts its fees/commissions and remits
the balance to Seller-side ECO. Here, the Seller-side ECO will release the payment to the supplier
after deduction of his fees/commissions and therefore will also be required to collect TCS, as
applicable and pay the same to the Government in accordance with section 52 of CGST Act and
also make other compliances under section 52 of CGST Act.
In this case, the Buyer-side ECO will neither be required to collect TCS nor will be required to
make other compliances in accordance with section 52 of CGST Act with respect to this
particular supply.
Buyer Buyer-side
ECO
Supplier-side
ECO Supplier
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Issue 2: In a situation where multiple ECOs are involved in a single transaction of supply of
goods or services or both through ECO platform and the Supplier-side ECO is himself the
supplier of the said supply, who is liable for compliances under section 52 including
collection of TCS?
Clarification: In such a situation, TCS is to be collected by the Buyer-side ECO while making
payment to the supplier for the particular supply being made through it.
e.g. Buyer-side ECO collects payment from the buyer, deducts its fees and remits the balance to
the supplier (who is itself an ECO as per the definition in Sec 2(45) of the CGST Act). In this
scenario, the Buyer-side ECO will also be required to collect TCS, as applicable, pay the same to
the Government in accordance with section 52 of CGST Act and also make other compliances
under section 52 of CGST Act.
6. It is further mentioned that in-principle approval was granted by GST Council in 47th meeting
inter alia for waiver of requirement of mandatory registration under section 24(ix) of CGST Act for
person making intra-state taxable supply of goods through ECOs, subject to certain conditions. In order to
implement the same, issuance of notifications under section 23(2) and section 148 of CGST Act, 2017 has
also been recommended by the Council in its 48th meeting. As per the recommendations of the Council,
the same is to be implemented w.e.f. 01.10.2023. However, it is felt that the said draft notification also
needs to cover the situations involving model of multiple ECOs in a single supply of goods through ECO
platform. Law Committee deliberated on the issue in its meeting held on 24.05.2023 and recommended
that the said draft notification, as approved by the Council, may be amended further to provide for
situations involving multiple ECOs, as suggested in Annexure B (the proposed amendment is shown in
red).
7. Accordingly, the proposals in para 5 & 6 are placed for approval of the Council.

Buyer Buyer-side ECO Supplier (also
an ECO)
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Annexure A
Circular No.--/--/2023-GST
F. No. CBIC-20006/8/2023-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, dated the -- May, 2023
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on TCS liability under Sec 52 of the CGST Act, 2017 in case of multiple Ecommerce Operators in one transaction-reg.
Reference has been received seeking clarification regarding TCS liability under section 52 of the
Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), in case of multiple
E-commerce Operators (ECOs) in one transaction, in the context of Open Network for Digital Commerce
(ONDC).
2.1 In the current platform-centric model of e-commerce, the buyer interface and seller interface are
operated by the same ECO. This ECO collects the consideration from the buyer, deducts the TCS under
Sec 52 of the CGST Act, credits the deducted TCS amount to the GST cash ledger of the seller and passes
on the balance of the consideration to the seller after deducting their service charges.
2.2 In the case of the ONDC Network or similar other arrangements, there can be multiple ECOs in a
single transaction - one providing an interface to the buyer and the other providing an interface to the
seller. In this setup, buyer-side ECO could collect consideration, deduct their commission and pass on the
consideration to the seller-side ECO. In this context, clarity has been sought as to which ECO should
deduct TCS and make other compliances under section 52 of CGST Act in such situations, as in such
models having multiple ECOs in a single transaction, both the Buyer-side ECO and the Seller-side ECO
qualify as ECOs as per Section 2(45) of the CGST Act.
3. In order to clarify the issue and to ensure uniformity in the implementation of the
provisions of law across the field formations, the Board, in exercise of its powers conferred by section
168 (1) of the CGST Act, hereby clarifies the issues as under:
Issue 1: In a situation where multiple ECOs are involved in a single transaction of supply of goods
or services or both through ECO platform and where the supplier-side ECO himself is not the
supplier in the said supply, who is liable for compliances under section 52 including collection of
TCS?
Agenda for 50th GSTCM Volume 1
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Clarification: In such a situation where multiple ECOs are involved in a single transaction of supply of
goods or services or both through ECO platform and where the supplier-side ECO himself is not the
supplier of the said goods or services, the compliances under section 52 of CGST Act, including
collection of TCS, is to be done by the supplier-side ECO who finally releases the payment to the supplier
for a particular supply made by the said supplier through him.
e.g.: Buyer-side ECO collects payment from the buyer, deducts its fees/commissions and remits the
balance to Seller-side ECO. Here, the Seller-side ECO will release the payment to the supplier after
deduction of his fees/commissions and therefore will also be required to collect TCS, as applicable and
pay the same to the Government in accordance with section 52 of CGST Act and also make other
compliances under section 52 of CGST Act.
In this case, the Buyer-side ECO will neither be required to collect TCS nor will be required to make
other compliances in accordance with section 52 of CGST Act with respect to this particular supply.
Issue 2: In a situation where multiple ECOs are involved in a single transaction of supply of goods
or services or both through ECO platform and the Supplier-side ECO is himself the supplier of the
said supply, who is liable for compliances under section 52 including collection of TCS?
Clarification: In such a situation, TCS is to be collected by the Buyer-side ECO while making payment
to the supplier for the particular supply being made through it.
e.g. Buyer-side ECO collects payment from the buyer, deducts its fees and remits the balance to the
supplier (who is itself an ECO as per the definition in Sec 2(45) of the CGST Act). In this scenario, the
Buyer-side ECO will also be required to collect TCS, as applicable, pay the same to the Government in
accordance with section 52 of CGST Act and also make other compliances under section 52 of CGST
Act.
4. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
5. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)
*****
Buyer Buyer-side
ECO
Supplier-side
ECO Supplier
Buyer Buyer-side ECO Supplier (also
an ECO)
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ANNEXURE B
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NOTIFICATION
No. --/2022 – Central Tax
New Delhi, the-- October, 2022
G.S.R. (E):— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax
Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the
recommendations of the Council, hereby notifies the electronic commerce operator who is required to
collect tax at source under section 52 (hereinafter referred to as the said electronic commerce operator) as
the class of persons who shall follow the following special procedure in respect of supply of goods made
through it by the persons exempted from obtaining registration in accordance with Notification No. --
/2022- Central Tax, dated the -- October, 2022, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide number G.S.R. ---(E), dated the -- October, 2022 (hereinafter referred to as
the said person):-
(i) the said electronic commerce operator shall allow the supply of goods through it by the said person
only if enrolment number has been allotted on the common portal to the said person;
(ii) the said electronic commerce operator shall not allow any inter-State supply of goods through it by the
said person;
(iii) the said electronic commerce operator shall not collect tax at source under sub-section (1) of section
52 in respect of supply of goods made through it by the said person; and
(iv) the said electronic commerce operator shall furnish the details of supplies of goods made through it
by the said person in the statement in FORM GSTR-8 electronically on the common portal.
Explanation: In a situation where multiple electronic commerce operators are involved in a single supply
of goods through ECO platform, for the purpose of this notification, “the said electronic commerce
operator” shall mean the electronic commerce operator who finally releases the payment to the said person
for the said supply made by the said person through him.
[F. No. CBIC-20006/8/2023-GST]
(Alok Kumar)
Director

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Agenda Item 3(xiii): Clarification on availability of ITC in respect of warranty replacement of
parts and repair services during warranty period
Representations have been received from trade and industry that as a common trade practice, the
original equipment manufacturers /suppliers offer warranty for the goods / services supplied by them.
During the warranty period, replacement goods /services are supplied to customers free of charge and as
such no separate consideration is charged and received at the time of replacement. It has been represented
that suitable clarification may be issued in the matter as unnecessary litigation is being caused due to
contrary interpretations by the investigation wings and field formations in respect of GST liability as well
as liability to reverse ITC against such supplies of replacement of parts and repair services during the
warranty period without any consideration from the customers.
2. In this regard, Tamil Nadu AAR in case of South Indian Federation of Fishermen Societies vide
order no. 07/AAR/2022 dated 28.02.2022 ruled that supply of materials and labour, while rendering
warranty services during the warranty period free of cost, does not attract GST separately. The AAR
upheld the contention of the applicant as under:
“Further, they have stated that the value of materials to be supplied and service provided during
warranty period are taken into account and included in the sale price on which GST has been
duly paid. The applicant has submitted that consideration received on original supply of fishing
vessels includes the consideration for the promise to repair or replace the machines during
warranty period without any additional charge. As parts are provided to the customer without a
consideration under warranty, no GST is chargeable on such replacement. The value of supply
made earlier includes the charges to be incurred during the warranty period. Therefore, the
replacement of the goods and service rendered during the warranty period without consideration
does not attract GST separately.”
3. Reference is also invited to FAQs on IT/ ITeS sector issued by CBIC, wherein the relevant
question has been answered as under:
Question 20: What would be the tax liability on replacement of parts (no consideration is
charged from a customer) under a warranty and whether the supplier is required to reverse the
input tax credit?
Answer: As parts are provided to the customer without a consideration under warranty, no GST
is chargeable on such replacement. The value of supply made earlier includes the charges to be
incurred during the warranty period. Therefore, the supplier who has undertaken the warranty
replacement is not required to reverse the input tax credit on the parts/components replaced.
4. Despite such clarification and AAR rulings, it appears field formations are raising enquiries in the
matter. In view of the same, the issue was deliberated by the Law Committee in its meetings held on
05.12.2022, 10/11.04.2023, 24.05.2023 and 14/15.06.2023. The Law Committee recommended that, for
uniformity of implementation, the issue may be clarified through a circular (draft circular enclosed as
Annexure), as under:
Agenda for 50th GSTCM Volume 1
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S. No. Issue Clarification
1. There are cases where the
original equipment manufacturer
offers warranty for the goods
supplied by him to the customer
and provides replacement of
parts and/ or repair services to
the customer during the warranty
period, without separately
charging any consideration at the
time of such replacement/ repair
services.
Whether GST would be payable
on such replacement of parts or
supply of repair services, without
any consideration from the
customer, as part of warranty?
The value of original supply of goods (provided along
with warranty) by the manufacturer to the customer
includes the likely cost of replacement of parts and / or
repair services to be incurred during the warranty period,
on which tax would have already been paid at the time of
original supply of goods.
As such, where the manufacturer provides replacement of
parts and/ or repair services to the customer during the
warranty period, without separately charging any
consideration at the time of such replacement/ repair
services, no further GST is chargeable on such
replacement of parts and/ or repair service during
warranty period.
However, if any additional consideration is charged by
the manufacturer from the customer, either for
replacement of any part or for any service, then GST will
be payable on such supply with respect to such additional
consideration.
2. Whether in such cases, the
manufacturer is required to
reverse the input tax credit in
respect of such replacement of
parts or supply of repair services
as part of warranty, in respect of
which no additional
consideration is charged from the
customer?
In such cases, the value of original supply of goods
(provided along with warranty) by the manufacturer to
the customer includes the likely cost of replacement of
parts and/ or repair services to be incurred during the
warranty period.
Therefore, these supplies cannot be considered as exempt
supply and accordingly, the manufacturer, who provides
replacement of parts and/ or repair services to the
customer during the warranty period, is not required to
reverse the input tax credit in respect of the said
replacement parts or on the repair services provided.
3.
Whether GST would be payable
on replacement of parts and/ or
repair services provided by a
distributor without any
consideration from the customer,
as part of warranty on behalf of
the manufacturer?
There may be instances where a distributor of a company
provides replacement of parts and/ or repair services to
the customer as part of warranty on behalf of the
manufacturer and no separate consideration is charged by
such distributor in respect of the said replacement and/ or
repair services from the customer.
In such cases, as no consideration is being charged by the
distributor from the customer, no GST would be payable
by the distributor on the said activity of providing
replacement of parts and/ or repair services to the
customer.
However, if any additional consideration is charged by
the distributor from the customer, either for replacement
of any part or for any service, then GST will be payable
on such supply with respect to such additional
consideration.
Agenda for 50th GSTCM Volume 1
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4.
In the above scenario where the
distributor provides replacement
of parts to the customer as part of
warranty on behalf of the
manufacturer, whether any
supply is involved between the
distributor and the manufacturer
and whether the distributor
would be required to reverse the
input tax credit in respect of such
replacement of parts ?
(a) There may be cases where the distributor replaces the
part(s) to the customer under warranty either by using his
stock or by purchasing from a third party and charges the
consideration for the part(s) so replaced from the
manufacturer, by issuance of a tax invoice, for the said
supply made by him to the manufacturer. In such a case,
GST would be payable by the distributor on the said
supply by him to the manufacturer and the manufacturer
would be entitled to avail the input tax credit of the same,
subject to other conditions of CGST Act. In such case, no
reversal of input tax credit by the distributor is required in
respect of the same.
(b) There may be cases where the distributor raises a
requisition to the manufacturer for the part(s) to be
replaced by him under warranty and the manufacturer
then provides the said part(s) to the distributor for the
purpose of such replacement to the customer as part of
warranty.
In such a case, where the manufacturer is providing such
part(s) to the distributor for replacement to the customer
during the warranty period, without separately charging
any consideration at the time of such replacement, no
GST is payable on such replacement of parts by the
manufacturer. Further, no reversal of ITC is required to
be made by the manufacturer in respect of the parts so
replaced by the distributor under warranty.
(c) There may be cases where the distributor replaces the
part(s) to the customer under warranty out of the supply
already received by him from the manufacturer and the
manufacturer issues a credit note in respect of the parts so
replaced subject to provisions of sub-section (2) of
section 34 of the CGST Act. Accordingly, the tax liability
may be adjusted by the manufacturer, subject to the
condition that the said distributor has reversed the ITC
availed against the parts so replaced.
5.
Where the distributor provides
repair service, in addition to
replacement of parts or
otherwise, to the customer
without any consideration, as part
of warranty, on behalf of the
manufacturer but charges the
manufacturer for such repair
services either by way of issue of
tax invoice or a debit note,
whether GST would be payable
on such activity by the
distributor?
In such scenario, there is a supply of service by the
distributor and the manufacturer is the recipient of such
supply of repair services in accordance with the
provisions of sub-clause (a) of clause (93) to section 2 of
the CGST Act, 2017.
Hence, GST would be payable on such provision of
service by the distributor to the manufacturer and the
manufacturer would be entitled to avail the input tax
credit of the same, subject to other conditions of CGST
Act.
6.
Sometimes companies provide
offers of Extended warranty to
the customers which can be
(a) If a customer enters in to an agreement of extended
warranty with the manufacturer at the time of original
supply, then the consideration for such extended warranty
Agenda for 50th GSTCM Volume 1
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availed at the time of original
supply or just before the expiry
of the standard warranty period.
Whether GST would be payable
in both the cases?
becomes part of the value of the composite supply, the
principal supply being the supply of goods, and GST
would be payable accordingly.
(b) However, in case where a consumer enters into an
agreement of extended warranty at any time after the
original supply, then the same is a separate contract and
GST would be payable by the service provider, whether
manufacturer or the distributor or any third party,
depending on the nature of the contract(i.e. whether the
extended warranty is only for goods or for services or for
composite supply involving goods and services)
5. Accordingly, the proposal in para 4 is placed for approval of the Council.
*****

Agenda for 50th GSTCM Volume 1
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Annexure
Circular No. …../…/2023-GST
F. No. CBIC-XX/XX/2023-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the XX July, 2023
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of
Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on availability of ITC in respect of warranty replacement of parts and repair
services during warranty period – Reg.
Representations have been received from trade and industry that as a common trade practice, the
original equipment manufacturers /suppliers offer warranty for the goods / services supplied by them.
During the warranty period, replacement goods /services are supplied to customers free of charge and as
such no separate consideration is charged and received at the time of replacement. It has been represented
that suitable clarification may be issued in the matter as unnecessary litigation is being caused due to
contrary interpretations by the investigation wings and field formations in respect of GST liability as well
as liability to reverse ITC against such supplies of replacement of parts and repair services during the
warranty period without any consideration from the customers.
2. The matter has been examined. In order to ensure uniformity in the implementation of the
provisions of the law across the field formations, the Board, in exercise of its powers conferred under
section 168(1) of the CGST Act, hereby clarifies as follows:
S.
No.
Issue Clarification
1. There are cases where the original
equipment manufacturer offers
warranty for the goods supplied by
him to the customer and provides
replacement of parts and/ or repair
services to the customer during the
warranty period, without
separately charging any
consideration at the time of such
replacement/ repair services.
The value of original supply of goods (provided along with
warranty) by the manufacturer to the customer includes the
likely cost of replacement of parts and / or repair services
to be incurred during the warranty period, on which tax
would have already been paid at the time of original supply
of goods.
As such, where the manufacturer provides replacement of
parts and/ or repair services to the customer during the
warranty period, without separately charging any
consideration at the time of such replacement/ repair
Agenda for 50th GSTCM Volume 1
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Whether GST would be payable
on such replacement of parts or
supply of repair services, without
any consideration from the
customer, as part of warranty?
services, no further GST is chargeable on such replacement
of parts and/ or repair service during warranty period.
However, if any additional consideration is charged by the
manufacturer from the customer, either for replacement of
any part or for any service, then GST will be payable on
such supply with respect to such additional consideration.
2. Whether in such cases, the
manufacturer is required to reverse
the input tax credit in respect of
such replacement of parts or
supply of repair services as part of
warranty, in respect of which no
additional consideration is charged
from the customer?
In such cases, the value of original supply of goods
(provided along with warranty) by the manufacturer to the
customer includes the likely cost of replacement of parts
and/ or repair services to be incurred during the warranty
period.
Therefore, these supplies cannot be considered as exempt
supply and accordingly, the manufacturer, who provides
replacement of parts and/ or repair services to the customer
during the warranty period, is not required to reverse the
input tax credit in respect of the said replacement parts or
on the repair services provided.
3.
Whether GST would be payable
on replacement of parts and/ or
repair services provided by a
distributor without any
consideration from the customer,
as part of warranty on behalf of the
manufacturer?
There may be instances where a distributor of a company
provides replacement of parts and/ or repair services to the
customer as part of warranty on behalf of the manufacturer
and no separate consideration is charged by such
distributor in respect of the said replacement and/ or repair
services from the customer.
In such cases, as no consideration is being charged by the
distributor from the customer, no GST would be payable
by the distributor on the said activity of providing
replacement of parts and/ or repair services to the
customer.
However, if any additional consideration is charged by the
distributor from the customer, either for replacement of any
part or for any service, then GST will be payable on such
supply with respect to such additional consideration.
4.
In the above scenario where the
distributor provides replacement of
parts to the customer as part of
warranty on behalf of the
manufacturer, whether any supply
is involved between the distributor
and the manufacturer and whether
the distributor would be required
to reverse the input tax credit in
respect of such replacement of
parts ?
(a) There may be cases where the distributor replaces the
part(s) to the customer under warranty either by using his
stock or by purchasing from a third party and charges the
consideration for the part(s) so replaced from the
manufacturer, by issuance of a tax invoice, for the said
supply made by him to the manufacturer. In such a case,
GST would be payable by the distributor on the said supply
by him to the manufacturer and the manufacturer would be
entitled to avail the input tax credit of the same, subject to
other conditions of CGST Act. In such case, no reversal of
input tax credit by the distributor is required in respect of
the same.
(b) There may be cases where the distributor raises a
requisition to the manufacturer for the part(s) to be
replaced by him under warranty and the manufacturer then
provides the said part(s) to the distributor for the purpose
of such replacement to the customer as part of warranty.
In such a case, where the manufacturer is providing such
part(s) to the distributor for replacement to the customer
Agenda for 50th GSTCM Volume 1
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during the warranty period, without separately charging
any consideration at the time of such replacement, no GST
is payable on such replacement of parts by the
manufacturer. Further, no reversal of ITC is required to be
made by the manufacturer in respect of the parts so
replaced by the distributor under warranty.
(c) There may be cases where the distributor replaces the
part(s) to the customer under warranty out of the supply
already received by him from the manufacturer and the
manufacturer issues a credit note in respect of the parts so
replaced subject to provisions of sub-section (2) of section
34 of the CGST Act. Accordingly, the tax liability may be
adjusted by the manufacturer, subject to the condition that
the said distributor has reversed the ITC availed against the
parts so replaced.
5.
Where the distributor provides
repair service, in addition to
replacement of parts or otherwise,
to the customer without any
consideration, as part of warranty,
on behalf of the manufacturer but
charges the manufacturer for such
repair services either by way of
issue of tax invoice or a debit note,
whether GST would be payable on
such activity by the distributor?
In such scenario, there is a supply of service by the
distributor and the manufacturer is the recipient of such
supply of repair services in accordance with the provisions
of sub-clause (a) of clause (93) to section 2 of the CGST
Act, 2017.
Hence, GST would be payable on such provision of service
by the distributor to the manufacturer and the manufacturer
would be entitled to avail the input tax credit of the same,
subject to other conditions of CGST Act.
6.
Sometimes companies provide
offers of Extended warranty to the
customers which can be availed at
the time of original supply or just
before the expiry of the standard
warranty period. Whether GST
would be payable in both the
cases?
(a) If a customer enters in to an agreement of extended
warranty with the manufacturer at the time of original
supply, then the consideration for such extended warranty
becomes part of the value of the composite supply, the
principal supply being the supply of goods, and GST
would be payable accordingly.
(b) However, in case where a consumer enters into an
agreement of extended warranty at any time after the
original supply, then the same is a separate contract and
GST would be payable by the service provider, whether
manufacturer or the distributor or any third party,
depending on the nature of the contract(i.e. whether the
extended warranty is only for goods or for services or for
composite supply involving goods and services)
3. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
4. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board. Hindi version would follow.
Sanjay Mangal
Principal Commissioner (GST)
Agenda for 50th GSTCM Volume 1
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Agenda Item 3(xiv): Amendments in CGST Rules consequent to amendment in CGST Act vide
Finance Act 2023
The Finance Act, 2023 has carried out amendments in provisions of the CGST Act, 2017, some
of which require corresponding rules for implementation. Law Committee in its various meetings
deliberated on the rules to be framed and amended for smooth implementation of the law amendments
carried out through Finance Act, 2023. Accordingly, Law Committee has recommended for incorporating
the said rules in the CGST Rules, 2017. The following paragraphs provide details of the requisite rule
amendments which require deliberation of the GST Council:
2. Rule corresponding to the Explanation to section 17(3) of CGST Act, 2017
2.1 GST Council in its 47th meeting observed that as with effect from 01.02.2019, paragraph 8(a) had
been inserted in Schedule III of CGST Act, providing for “supply of warehoused goods to any person
before clearance for home consumption”, the supply of goods by duty-free shops (DFS) to international
passengers in Arrival Hall of the International Airport will stand covered by this paragraph and thus will
be considered neither a supply of goods nor a supply of services with effect from 01.02.2019. Further, as
per sub-section (2) of section 17 read with Explanation to sub-section (3) of section 17 of CGST Act,
reversal of input tax credit (ITC) will also not be required to be made in respect of input tax attributable
for such transactions or activities. The net effect of the same will be that the DFS operator will be able to
claim refund of accumulated ITC in respect of all inputs/ input services for both Arrival as well as
Departure DFS. There did not appear to be any intention of the Council to extend the benefit of refund in
respect of supplies made from Arrival DFS.
2.2 In view of this, Council recommended that in order to deny benefit of refund of input tax credit in
respect of supplies made from Arrival DFS, the input tax credit in respect of Arrival DFS may be required
to be reversed under sub-section (2) of section 17, read with sub-section (3) of the said section, by
including transactions under para 8(a) of Schedule III of CGST Act in the value of exempt supply by
substituting Explanation to sub-section (3) of section 17 of CGST Act, 2017 as below:.
“Explanation: For the purpose of this sub-section, the expression “value of exempt supply” shall not
include the value of activities or transactions specified in Schedule III, except----
(a) the value of activities or transactions specified in paragraph 5 of the said Schedule; and
(b) the value of such activities or transactions as may be prescribed in respect of paragraph
8(a) of the said Schedule.”
2.3. In view of said recommendations of GST Council, Explanation to sub-section (3) of section 17 of
CGST Act, 2017 was amended by the Finance Act, 2023 accordingly. Clause (b) of the said amended
Explanation refers to the value of such activities or transactions as may be prescribed in respect of
paragraph 8(a) of Schedule III of CGST Act, 2017, which shall not be excluded from the exempt supply.
Agenda for 50th GSTCM Volume 1
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2.4. Accordingly, the Law Committee in its meeting held on 14.06.2023 and 15.06.2023
recommended that the activities or transactions of paragraph 8(a) of Schedule III of CGST Act, the value
of which shall not be excluded from exempt supply as per amended Explanation to sub-section (3) of
section 17 of CGST Act, 2017, need to be prescribed by amending CGST Rules, 2017 by way of
Insertion of Explanation 3 to rule 43 thereof, as under:
Explanation 3:- For the purpose of Rule 42 and this rule, the value of activities or transactions in
respect of paragraph 8(a) of Schedule III of the Act which is required to be included in the value
of exempt supplies in accordance with clause (b) of Explanation to sub-section (3) of section 17
of the Act shall be the value of supply of goods from Duty Free Shops at arrival terminal in
international airports to the incoming passengers.
3. Amendment to rule 162 of CGST Rules 2017
3.1 Vide Finance Act 2023, section 138 of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as CGST Act, 2017) has been amended to provide for an amount ranging from twenty-five
percent of the tax involved to hundred percent of tax involved for compounding of offences. Further, subsection (2) of section 138 of CGST Act, 2017 provides for prescribing such compounding amount with
respect to various offences through CGST Rules, 2017. Therefore, it is required that a new sub-rule may
be inserted in rule 162 of the CGST rules, 2017 in which the compounding amount shall be prescribed on
the lines of rule 5 of Central Excise (Compounding of offences) Rules, 2005. The proposed sub-rule 3A,
to be inserted in rule 162 of CGST Rules, as recommended by the Law Committee in its meeting held on
14.06.2023 and 15.06.2023 is as given below:
“3A. The compounding amount shall be determined under sub-rule (3) as per the Table given below: -
TABLE
S.
No.
Offence Compounding amount
if offence is punishable
under clause (i) of subsection (1) of section
132
Compounding amount
if offence is punishable
under clause (ii) of subsection (1) of section 132
(1) (2) (3) (4)
1 Offence specified in clause(a) of
sub-section (1) of section 132 of the
Act
Up to seventy-five per
cent of the amount of tax
evaded or the amount of
input tax credit wrongly
availed or utilized or the
amount of refund
wrongly taken, subject
to minimum of fifty per
cent of such amount of
tax evaded or the
amount of input tax
credit wrongly availed
Up to sixty per cent of the
amount of tax evaded or
the amount of input tax
credit wrongly availed or
utilized or the amount of
refund wrongly taken,
subject to minimum of
forty per cent of such
amount of tax evaded or
the amount of input tax
credit wrongly availed or
utilized or the amount of
2 Offence specified in clause(c) of
sub-section (1) of section 132 of the
Act
3 Offence specified in clause(d) of
sub-section (1) of section 132 of the
Act
4 Offence specified in clause(e) of
sub-section (1) of section 132 of the
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Act or utilized or the amount
of refund wrongly taken.
refund wrongly taken.
5 Offence specified in clause(f) of
sub-section (1) of section 132 of the
Act
Amount equivalent to
twentyfive per cent of
tax evaded.
.
Amount equivalent to
twentyfive per cent of tax
evaded.
6 Offence specified in clause(h) of
sub-section (1) of section 132 of the
Act
7 Offence specified in clause(i) of
sub-section (1) of section 132 of the
Act
8 Attempt to commit the offences or
abets the commission of offences
mentioned in clause (a), (c) to (f)
and clauses (h) and (i) of subsection (1) of section 132 of the Act
Amount equivalent to
twenty-five per cent of
such amount of tax
evaded or the amount of
input tax credit wrongly
availed or utilized or the
amount of refund
wrongly taken.
Amount equivalent to
twenty-five per cent of
such amount of tax
evaded or the amount of
input tax credit wrongly
availed or utilized or the
amount of refund
wrongly taken.
Provided that where the offence committed by the person falls under more than one category specified in
the Table above, the compounding amount, in such case, shall be the amount determined for the offence
for which higher compounding amount has been prescribed.
3.2 It is also added that the condition of applicant having co-operated in the proceedings as
mentioned in sub-rule (3) of rule 162 of CGST Rules, 2017, becomes very subjective to ascertain and
therefore, may not be required. The person who has already paid tax, interest with applicable penalty and
willing to pay compounding amount as well as making full and true disclosure of facts relating to the
case can be considered to be a co-operative person.
3.3 Accordingly, the Law Committee in its meeting held on 14.06.2023 and 15.06.2023 recommended
that the said condition of person having co-operative in the proceedings before the Commissioner may be
deleted from sub-rule (3) of rule 162, as below:
“3. The Commissioner, after taking into account the contents of the said application,
may, by order in FORM GST CPD-02, on being satisfied that the applicant has cooperated in
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the proceedings before him and has made full and true disclosure of facts relating to
the case, allow the application indicating the compounding amount, and grant him
immunity from prosecution or reject such application within ninety days of the receipt of the
application.”
4. Consent Based Sharing of Information
4.1 The interface between taxpayers and the tax administration in electronic form through a common
portal has made available valuable data that can be used for other purposes for the benefit of taxpayers
and other stakeholders. Various initiatives including flow based lending based on the invoices issued by
the suppliers are in works, like Trade Receivables Discounting System (TReDS) under the Factoring
Regulation Act. Currently, TReDS accesses invoices through a complex process. With access to invoice
based data, the business flow can be radically simplified for the taxpayers.
4.2 The GST Council in its 47th meeting held on 28th-29th June, 2022 recommended that the
provisions may be made in CGST Act to allow sharing of this data with the consent of the supplier and
also of the recipient in certain cases. Accordingly, a new section 158A was inserted in the CGST Act,
2017 through Finance Act, 2023 so as to provide for prescribing manner and conditions for sharing of the
information furnished by the registered person in his return or in his application of registration or in his
statement of outward supplies, or the details uploaded by him for generation of electronic invoice or Eway bill or any other details, as may be prescribed, on the common portal with such other systems, as may
be notified.
4.3 To implement the provisions of the newly inserted section 158A, rules needs to be framed and
implemented. The matter was deliberated by the Law Committee in its meeting held on 14.06.2023 and
15.06.2023. The Law Committee has recommended insertion of new Rule 163 in CGST Rules, 2017 for
this purpose, the draft of which is enclosed as Annexure-I with this agenda note.
4.4 Also, as per provisions of Section 158A, it needs to be notified as to which systems will be
authorised for data sharing. The same was deliberated by the Law Committee in its meeting held on
14.06.2023 and 15.06.2023 and it recommended that account aggregators may be notified as the systems
with which information may be shared by the common portal based on consent under Section 158A of the
CGST Act, 2017. The draft notification under section 158A of CGST Act in this regard is enclosed as
Annexure-II with this note.
5. It is also proposed that the rules referred in Para 2,3 and 4 above as well as notification referred in
Para 4 above may be notified once the said concerned provisions of the Finance Act, 2023 come into
effect.
6. The agenda note, along with annexures, is placed before the Council for deliberation and
approval.
Agenda for 50th GSTCM Volume 1
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Annexure-I
163. Consent based sharing of information
(1) Where a registered person desires to share the information furnished in—
(a) FORM GST REG-01 as amended from time to time;
(b) return in FORM GSTR-3B for certain tax periods;
(c) FORM GSTR-1 for certain tax periods, pertaining to invoices, debit notes and credit
notes issued by him, as amended from time to time,
with a system referred to in subsection (1) of section 158A (hereinafter referred to as “requesting
system”), the requesting system shall obtain the consent of the said registered person for sharing of such
information and shall communicate the consent along with the details of the tax periods, where
applicable, to the common portal.
(2) The registered person shall give his consent for sharing of information under clause (c) of subrule (1) only after he has obtained the consent of all the recipients, to whom he has issued the invoice,
credit notes and debit notes during the said tax periods, for sharing such information with the requesting
system and where he provides his consent, the consent of such recipients shall be deemed to have been
obtained.
(3) The common portal shall communicate the information referred to in sub-rule (1) with the
requesting system on receipt of the consent of the said registered person, details of the tax periods or the
recipients, as the case may be, from the requesting system.
Agenda for 50th GSTCM Volume 1
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Annexure-II
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. /2023 – Central Tax
New Delhi, the XXX, 2023
G.S.R....(E),— In exercise of the powers conferred by section 158A of the Central Goods and Services
Tax Act, 2017 (12 of 2017) and section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of
2017), the Central Government, on the recommendations of the Council, notifies “Account Aggregators”
as defined in Non-Banking Financial Company - Account Aggregator (Reserve Bank) Directions, 2016
issued by the Reserve Bank of India under Reserve Bank of India Act, 1943 as the systems with which
information may be shared by the common portal based on consent under Section 158A of the Central
Goods and Services Tax Act, 2017 (12 of 2017).
2. This notification shall come into force with effect from the dd day of mmmm, 2023.
[F. No.]
(<Name>)
Under Secretary to the Government of India
*****

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Agenda Item 4: Recommendations of the Fitment Committee for the consideration of the
GST Council

This agenda note deals with proposals regarding GST rates on supply of goods and services. The
proposed changes in GST rates emanate from the recommendations made by the Fitment
Committee.
2. Briefly stated, representations/recommendations have been received from various
stakeholders including Ministries and other offices of Centre and States, seeking changes in GST
rates and certain clarifications regarding GST rates applicable on supply of certain
goods/services.
3. The Fitment Committee met on 3rd April, 25th April, 29th May and 9th June, 2023 and
had detailed discussions on recommendations received from various stakeholders seeking
changes in GST/IGST rates or seeking clarification on supply of goods/services. After
examination, the Fitment Committee has recommended changes in GST rates or issue of
clarification, in relation to certain goods and services. Further, the Fitment Committee has
recommended no change in respect of certain issues. On a few issues, Fitment Committee was of
the view that further examination would be required before making any recommendation to the
GST Council.
4. Accordingly, Fitment Agenda for consideration of the GST Council is summarized as
below:
a. Recommendations made by the Fitment Committee for making changes in GST rates or
for issuing clarifications in relation to goods – Annexure-I
b. Issues where no change has been proposed by the Fitment Committee in relation to goods
– Annexure-II
c. Issues deferred by the Fitment Committee for further examination in relation to goods –
Annexure-III
d. Recommendations made by the Fitment Committee for making changes in GST rates or
for issuing clarifications in relation to services – Annexure-IV
e. Issues where no change has been proposed by the Fitment Committee in relation to
services – Annexure-V
f. Issues deferred by the Fitment Committee for further examination in relation to services –
Annexure-VI
5. The proposals, as contained in para 4 above are placed before the GST Council for
consideration.

Agenda for 50th GSTCM Volume 1
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(a) Recommendations made by the Fitment Committee for making changes in GST
rates or for issuing clarifications in relation to goods – Annexure I
Annexure-I
S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
1 Kachri/
Kachri
pappad;
Unfried snack
pellets
manufactured
through
extrusion
process /
1905 90 30
18% Nil/5%
and
Regulariz
e for the
past
periods
• It has been represented that 18% GST rate on un-fried
pellets is too high because in common parlance it is
treated as pappad. Further goods under HS 1905 90
30 was at Nil rate in central excise regime and was at
6%/4%/Nil VAT rates in States under VAT regime.
• Circular no. 189/01/2023-GST dated 13.01.2023 was
issued based on the recommendation of the GST
Council in its 48th Meeting clarifying the
classification of extruded products such as “fryums”
under CTH 1905 90 30 and by virtue of the
classification, the goods attract 18% GST.
• Pappad, by whatever name it is known, except when
served for consumption, is exempt from GST vide Sl.
No. 96 of notification No.2/2017-Central Tax (Rate).
• As per Market Survey in Delhi and Ahmedabad by
CGST field formation ‘papad’ and ‘fryums’/’kachri’
are purchased as separate items by the consumers, and
both terms are generally not used interchangeably.
• The key difference between the extruded or expanded
snack pellets attracting 18% GST and these products
appears to be that while the first is manufactured
through mechanised process of extrusion and
expansion resulting in ready to eat form, the latter
needs to be fried.
• Fitment Committee recommended to reduce GST to
5% on Uncooked/unfried extruded products by
whatever name called.
• Fitment Committee also recommended to regularize
for past period on ‘as is where is’ basis due to genuine
doubts.
2. Fish Soluble
Paste (HS
2309)
18%
under
residua
l entry
5% &
Retrospec
tive
exemptio
n
• Fish soluble Paste is a by-product produced while
producing fish meal and fish oil.
• It attracts 18% GST under the residual entry.
• Fishmeal attracts GST@5%,
• Vide S. No. 102 of notification No. 2/2017- Central
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
Tax (Rate) dated 28.6.2017, GST exemption is
available only to Aquatic feed including shrimp feed
and prawn feed, poultry feed & cattle feed,
including grass, hay & straw, supplement & husk of
pulses, concentrates & additives, wheat bran & deoiled cake (other than rice-bran).
• Retrospective GST exemption was given till
30.09.2019 to Fishmeal and unintended waste
generated during the production of fish meal (falling
under heading 2301), except for fish oil, on the
recommendation of the 37th and 45th GST Council
meetings respectively.
• Since the final product fish meal attracts 5%, there
appears to be merit in the argument that by waste
generated as a by-product during the process of
manufacture of fishmeal should not attract 18%.
• Fitment Committee recommended to reduce GST rate
on Fish Soluble Paste (2309) to 5% .
• Fitment Committee also recommended to regularise
the matter for the past period on “as is basis” in view
of genuine interpretational issues.
3. Dinutuximab
(Quarziba)
/chapter 30
12%
IGST
Nil • Request is for IGST exemption on cancer medicine,
Dinutuximab (Quarziba) imported by individuals for
personal use.
• The estimated cost of the medicine is around Rupees
sixty-three lakhs and the same has to be imported.
• Patients and their kins are finding it difficult to pay
the IGST @12% since the medicine is already very
expensive and the cost of medicine is met through
crowdfunding.
• Some Ad-hoc exemptions have already been provided
on case-to-case basis
• Fitment Committee recommended to exempt IGST on
Dinutuximab (Quarziba) medicine imported for
personal use.
4. Medicines
and Food for
Special
5%/12
%
IGST
Nil • As part of post Budget 2023-24, BCD exemption
have been given to drugs and Food for Special
Medical Purposes (FSMP) when imported for
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
Medical
Purposes
(FSMP) used
in the
treatment of
rare diseases
personal use for treatment of rare diseases enlisted in
the National Policy for Rare Disease subject to
existing conditions (individual importer has to
produce a certificate from central or State Director
Health Services or District Medical Officer/Civil
Surgeon of the district)
• The BCD exemption currently available for drugs
used in treatment of rare diseases imported by Centres
of Excellence for Rare Diseases or any person or
institution on recommendation of any of the listed
Centre of Excellence was also expanded to include
Food for Special Medical Purposes (FSMP)
• These exemptions have been given based on
recommendations of Ministry of Health and family
Welfare (MoHFW).
• Fitment committee recommended to exempt IGST on
medicines and Food for Special Medical Purposes
(FSMP) used in the treatment of rare diseases enlisted
under the National Policy for Rare Diseases
(NPRD),2021 which are imported for personal use
subject to existing conditions and when imported by
Centres of Excellence or any person or institution on
recommendation of any of the listed Centre of
Excellence.
5. Trauma,
Spine and
Arthroplasty
implants/
CTH - 9021
- - • As per S. No. 221 of Schedule II of notification No.
01/2017-CT Rate 12% GST rate was applicable on
the following goods falling under HSN heading 9021:
“Splints and other fracture appliances; artificial parts of
the body; other appliances which are worn or carried, or
implanted in the body, to compensate for a defect or
disability; intraocular lens”
• As per S. No. 257 of Schedule I of notification No.
01/2017-CT Rate 5% GST was applicable on the
following goods falling under HSN heading 9021 as
Assistive devices, rehabilitation aids and other goods
for disabled:
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
“Orthopaedic appliances falling under heading No.
90.21 of the First Schedule”
• Duality of rates on similar items falling under heading
9021 was causing confusion and request had been
received for issuance of clarification.
• In order to bring uniformity, in the 47th GST Council,
the GST rate of 5% was fixed on all goods falling
under heading 9021 vide S. No. 255A of Schedule I
of notification No. 01/2017-CT Rate:
Orthopaedic appliances, such as crutches, surgical belts,
and trusses; Splints and other fracture appliances;
artificial parts of the body; other appliances which are
worn or carried,
or implanted in the body, to compensate for a defect or
disability; intraocular lens [other than hearing aids]
• Hearing aids attract Nil GST rate under S. No. 142 of
notification No. 02/2017-CT Rate
• The present request is for issue of clarification for
period prior to the 18.07.2022 when the GST rate of
5% was notified.
• Fitment Committee recommended to regularize the
matter for the period prior to 18.07.2022 on “as is
basis” in view of genuine interpretational issues.
6. Clarify that
Raw cotton
supplied by
agriculturists
to
Cooperatives
is not taxable
under RCM
5% Nil • Supply of raw cotton is subject to GST on RCM basis
• The request is to issue clarification that raw cotton
supplied by agriculturists to Cooperatives is not
taxable under RCM as there is no sale.
• The cooperative societies are discharging GST on
the sale of Cotton bales (after removing pods, ginning
and processing) in the open market on “Forward
Charge” basis
• Section 2(84) (i) of the CGST Act, 2017 defines
‘person’ as including “a co-operative society
registered under any law relating to co-operative
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
societies”. As per Section 7 (1) (aa) of the CGST Act
“supply” includes “the activities or transactions, by a
person, other than an individual, to its members or
constituents or vice-versa, for cash, deferred payment
or other valuable consideration.” Supply includes all
forms of supply of goods or services or both such as
sale, transfer, barter, exchange, licence, rental, lease
or disposal made or agreed to be made for a
consideration by a person in the course or furtherance
of business.
• Seen in the light of the legal provisions, the transfer
of cotton from farmers to cooperatives is clearly a
taxable supply and such supply of raw cotton by
farmers to the cooperatives (being a registered
person) attracts 5% GST under reverse charge basis.
• Fitment committee recommended to clarify that
supply of raw cotton, including kala cotton, from
agriculturists to Cooperatives is a taxable supply and
such supply of raw cotton by agriculturist to the
cooperatives (being a registered person) attracts 5%
GST under reverse charge basis.
• Fitment Committee also recommended to regularize
for the past periods on “as is basis” for in view of
genuine doubts for cooperatives.
7. Consequentia
l changes post
New Foreign
Trade Policy
23 in
notifications
• Foreign Trade Policy 2023-28 (FTP 2023-28) came
into force with effect from 1st April, 2023 vide
Notification No. 1/2023 dates 31st March, 2023.
• Several schemes including Advance Authorisation
(AA), Export Promotion of Capital Goods (EPCG),
Duty Free Import Authorisation (DFIA), Duty
Drawback Scheme (DBK), Rebate on State and
Central Taxes and Levies (RoSCTL), Remission of
Duties and Taxes on Exported Products (RoDTEP)
are also continued in the new FTP 2023-28.
• Further, the conditional exemption with respect to
supply from Nominated Agency to registered supplier
was provided in order to avoid cash flow issues for
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
the gems & jewellery industry as per the
recommendations of the GST Council in its 31st
meeting. This is also a technical change so as to
involving updating the reference to relevant
paragraphs of FTP in force.
• Consequential changes will need to be carried out in
notifications which would be technical in nature such
as cross-referencing to new Trade policy.
8. Issue suitable
clarification
of applicable
GST rate of
5% on
imitation zari
thread as
decided in the
14th and 15th
GST Council
meeting to
avoid
ambiguity
prevailing on
the applicable
rate of GST
on such
goods
- - • In the 15th Council meeting, the Council agreed to tax
embroidery or zari articles i.e., imi, zari, kasab, saima,
dabka, chumki, gota, sitara, naqsi, kora, glass beads,
badla, gizai at the rate of 5%.
• Accordingly, notification was issued prescribing 5%
GST rate on embroidery or zari articles classified
under CTH 5809 and 5810. Thus, by virtue of the
CTH, only embroidery articles, embroidery in piece,
in strips or in motifs got covered and not imitation
zari thread, which is classified under CTH 5605
• Certain doubts were raised regarding the classification
and applicable GST rate on kasab thread (a metallised
yarn) as yarn falling under heading 5605 attracts 12%
GST. The matter was placed before the 28
th GST
Council where it was recommended to explicitly
clarify that real zari kasab (thread) manufactured with
silver wire gimped (vitai) on core yarn namely pure
silk and cotton and finally gilted with gold would
attract 5% GST. A circular was accordingly issued
wherein it was also clarified that any imitation zari
would not be covered and further, metallised yarn
including kasab attracts 12% GST rate.
• There appears to be confusion in the trade as imitation
zari thread such as kasab, dabka are mentioned in the
5% entry.
• It was seen that the embroidery articles including
imitation zari embroidery articles are taxed at 5% but
the input kasab (thread) is at 12%.
• Fitment Committee recommended to reduce GST rate
to 5% on imitation zari thread or yarn known by any
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
name in trade parlance. Further, given the confusion
in the trade regarding the applicable rate, Fitment
Committee also recommended that the issue may be
regularised for the past period on as is where is basis.
9. LD slag 18% 5% • Currently, Slag generated from basic oxygen furnace
(BOF) or Linz-Donawitz (LD) attracts GST @ 18%
while other by-products such as Blast Furnace Slag
(BFS) Slag and Fly Ash attracts 5% GST.
• LD Slag is one of the recyclable wastes generated in
integrated Steel plants. It is produced during the
separation of molten Steel Slag from impurities in
steel-making furnaces.
• LD slag poses an environmental problem as it is not
being used and is getting accumulated over the years.
The total generation rate of LD slag is approx.
200kg/ton of crude steel in India. Out of this only
25% is being reused/recycled in India. It has been
observed that, 50% of slag has been used for the road
project, for sintering and iron-making recycling in
steel making plant. With the rapid growth of
industrialization, the available land for dispose of
large quantities of metallurgical slag like LD slag at a
landfill site is reducing and the disposal cost becomes
increasingly higher. Thus, LD slag poses an
environmental problem as it is not being used and is
getting accumulated over the years
• The GST rate on BF Slag/Fly Ash was reduced to 5%
in the 23rd GST Council meeting based on the reason
that it is an environmentally harmful product and its
re-usage needs to be promoted.
• The issue of reduction of GST on LD slag to 5% was
taken up in the 48th GST Council meeting but no
change was recommended as it was felt that cement
manufacturers will get ITC for GST paid on purchase
of LD slag.
• However, considering that the consumption of LD
slag needs to be encouraged for better utilization of
this waste and protection of environment, Fitment
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
Committee recommended to reduce the GST rate to
5% at par with Blast Furnace Slag (BFS) Slag and Fly
Ash.
10. Amend
Exemption
Notification
No. 50/2017
– Customs
dated
30.06.2017 to
include RBL
Bank
• IGST exemption is available on imports of gold,
silver or platinum by specified banks and other
entities mentioned in List 34 of S. No. 359A of
Notification No. 50/2017 – Customs dated
30.06.2017.
• The GST Council, in its 22nd meeting dated
06.10.2017, had recommended that exemption from
IGST was to be given to nominated agencies i.e.,
PSUs and authorized Banks mentioned in Para 4.41 of
FTP 2015-2020 (read with Appendix- 4B).
• In the 37th GST Council Meeting, dated 20.09.2019,
the Council did not recommend inclusion of ICBC
and RBL Bank Ltd in the said List 34 as ‘Export
Committee’ had not recommended their inclusion in
the said list.
• Directorate General Export Promotion has conveyed
that inclusion of PSU or Bank approved by RBI is not
required to be discussed in Export Committee and has
recommended for amending the List 34 suitably to
include the name of RBL and to also delete the name
of Banks/entities which no longer exists in Appendix
4B of HBP as several banks which are not part of
Appendix -4B of HBP are still mentioned in List 34
of the Notification 50/2017-Cus.
• RBL Bank is a authorized Bank mentioned in Para
4.40 of FTP 2023 (read with Appendix- 4B).
• Fitment Committee recommended to update list 34 in
notification 50/2017-Customs so as to include RBL
bank and ICBC bank and update the list no. 34 as per
revised Appendix 4B of FTP 2023 subject to
confirmation from DGEP and DGFT.
11. Applicability
of
compensation
cess on
22% • During the discussion in the 48th meeting of GST
council held in December,2022 on agenda items
relating to issuance of clarification on compensation
cess leviable on SUVs, upon suggestion by few of
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
MUX/XUV
vehicles with
length > 4000
mm, engine
capacity >
1500cc and
ground
clearance >
170 mm
the members to deliberate about compensation cess
on other utility vehicles such as MUV, the Council
directed the Fitment Committee to examine the
same.
• Based on recommendation of the GST Council in its
21st Meeting held in Sept, 2017 a higher rate of
compensation cess of 22% was notified on “Sports
Utility Vehicles (SUVs) (of length more than 4-
metre, engine capacity more than 1500cc and
ground clearance 170 mm)”
• It is seen that there were other utility vehicles that
satisfy the conditions of Length greater than 4000
mm, Engine capacity greater than 1500 cc and
Ground clearance more than 170 mm, but are
popularly called as Multi Utility Vehicles (MUV) or
multipurpose Vehicles or Crossover Utility Vehicles
(XUVs).
• Fitment Committee recommended to amend the
entry to include all utility vehicles by whatever
name called provided they met the parameters of
Length greater than 4000 mm, Engine capacity
greater than 1500 cc and Ground clearance more
than 170 mm.
• Fitment Committee also recommended to insert an
Explanation to clarify for the purposes of the said
notification entry “Ground Clearance” in entry 52B
means Ground Clearance in un-laden condition.
12. Compensatio
n Cess rate on
Pan Masala,
chewing
tobacco, etc.
• To implement the recommendations made by GST
Council in its 49th meeting held on 18.02.2023 which
accepted the report of Group of Ministers (GoM), the
levy of compensation cess was converted from ad
valorem tax to specific tax-based levy to boost the
first stage (manufacturer level) collection of revenue
in respect of Pan Masala, chewing tobacco, etc
• The rates are linked to RSP for such products.
• However, representations have been received
regarding challenges faced in determining the rate of
compensation cess in cases where it is not legally not
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Presen
t GST/
IGST
rate
Requeste
d GST
rate
Comments
required to declare RSP.
• Fitment Committee recommended to notify the earlier
ad valorem rate as was applicable on 31st March 2023
for such goods by amending the said Notification.
13. Desiccated
coconut/
0811100
5% Exempt
supply of
desiccate
d coconut
from 12%
tax for
the period
01.07.201
7 to
27.7.2017
• Vide corrigendum issued on 27-07-2017 to
notification 01/2017-CT(R) dated 28.06.2017,
dessicated coconut was declared as a taxable product
at 12% GST.
• Subsequently, in the 23rd GST Council meeting held
in November 2017, the GST Council had
recommended to reduce the GST rate from 12% to
5%.
• Based on corrigendum issued in July 2017, desiccated
coconut manufacturers started collecting GST at 12%
w.e.f from 28.07.2017. However, they have requested
to regularize the intervening period between issue
of original notification and issue of corrigendum
prescribing 12% GST rate.
• Given the fact that between the period 1.7.2017 to
27.7.2017 there was no specific entry for dessicated
coconut, it is possible that the suppliers may not have
collected GST from consumers.
• Fitment Committee recommended to regularize the period
01.07.2017 to 27.07.2017 on “as is where is” basis on
account of genuine doubt.
14. Areca Leaf
Plates and
Cups
(Chapter 46)
Nil exempt • Currently, plates and cups made up of all kinds of
leaves/ flowers/bark are already exempt vide Sl No.
114C of notification 2/2017-Central Tax (Rate) dated
28.6.2017.
• In the 37th GST Council meeting held on 20.9.2019,
GST Council had recommended the reduction in rate
of cups and plates made of leaves of areca tree from
5% to nil.
• No action required
Agenda for 50th GSTCM Volume 1
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(b) Issues where no change has been proposed by the Fitment Committee in relation to
goods– Annexure II
Annexure-II
S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
1. Agro-based
biomass pellets
5% Nil • Biomass briquettes or solid bio fuel
pellets, falling under Any Chapter,
attract GST @5% vide Sl. No. 264
of S-I of CT(R) notification.
• The request has been justified on the
ground that Ministry of Power has
mandated to use 5% of biomass cofiring in all coal based Thermal
Power Plants. Due to this, the
demand for biomass pellets has
increased up to 1 lakh MT/day.
However, the present capacity is
only around 7000-8000 MT/day.
Therefore, GST exemption to agrobased biomass pellets would be
great step to boost the growth of this
sector.
• The 5% rate has been prescribed on
the basis of recommendation of the
22nd GST Council Meeting (for
Biomass briquettes) in October
2017 and 28th GST Council Meeting
(for solid bio fuel pellets) in July
2018.
• Thus, Biomass briquettes or solid
bio fuel pellets already attract
concessional GST rate of 5%.
• The request for reduction of GST
rate to Nil on solid biofuel pellets /
Biomass briquettes or pellets was
placed before the GST Council in
37th and 47th GST Council Meeting,
and the GST Council did not
recommend further reduction in rate
to Nil.
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
• Fitment Committee recommended
to maintain status quo.
2. De-Oiled Rice
Bran (DORB)/
2306
Nil 5% • Prior to the 25th Council Meeting,
Rice Bran (HS 2302) for use as feed
was at Nil and for other uses was at
5%.
• The GST Council in its 25th
Meeting held on 18.01.2018,
decided to levy 5% GST on Rice
Bran, irrespective of end use, and
Nil GST on De-Oiled Rice Bran.
This was notified w.e.f 25.1.2018.
• The request has been justified on the
ground that on account of mismatch
in GST rates, Rice Bran is sold to
animal feed producers directly from
the un-organized market or billed as
DoRB, so as to avail Nil GST.
• The GoM on rate rationalisation in
its interim report did not
recommend bringing all goods
under chapter 23 (other than dog
and cat food) to 5%
• Fitment Committee recommended
to maintain status quo.
3. Products prepared
or manufactured
by the inmates of
Kerala Prison and
correctional
Services
Department
5%/12%/1
8%
Nil • End use based exemption is difficult
to administer, is prone to leakages
and needs to be discouraged.
• It would lead to inverted duty
structure on many of these
commodities that would disrupt the
ITC chain.
• Fitment Committee recommended
to maintain status quo
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
4. Bio-fertilizers and
other such organic
inputs
12% 5% • Based on the recommendations of
the GST Council, in its 25
th meeting
held in January, 2018, the rate on 12
specified bio-pesticides was reduced
from 18% to 12 % vide Notification
No. 6/2018-Central Tax (Rate).
• In its 31st meeting held in
December, 2018, the Council had
examined the issue of reduction of
GST on agricultural inputs
including pesticides, fertilizers and
plant growth regulators to 5% but it
did not recommend any change to
avoid a distortion of the ITC chain
and inversion of duty structure
which would put domestic
manufacturers at a disadvantage.
• In its 39th meeting in March, 2020,
the Council had examined the issue
of rate calibration on fertilizer to
12% in detail but did not
recommend any change in rates.
• In its 45th and even in the recent 47
th
Council meeting held in June, 2022,
the issue was placed before the
Council, but the Council did not
recommend any change in the rates
of fertilizers or other organic farm
inputs.
• Fitment Committee recommended
to maintain status quo
5. Sungudi Saree 12% Nil • The request has been made to
reduce GST from 12% to Nil on the
ground that in the manufacture of
Sungudi Sarees, about 10,000
families of minority Sourastra
Community are engaged.
• However, sarees already attract
concessional 5% GST.
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
• Exempting GST will have the
impact of breaking of ITC chain and
will entail end use-based exemption
which are prone to misuse.
• Under the threshold exemption, any
person having turnover of less than
Rs 40 lacs a year in goods, is
exempt from paying GST on their
supplies.
• Fitment Committee recommended
to maintain status quo
6. Upfront
exemption from
payment of IGST
and refund
mechanism to be
done away with
• IAEA is seeking exemption from
IGST on imports of their equipment.
However, section 55 of the CGST
Act provides for the refund of GST
paid by the IAEA.
• Section 55 of the CGST Act states
as follows:
"The Government may, on the
recommendations of the Council, by
notification, specify any specialised
agency of the United Nations
Organisation or any Multilateral
Financial Institution and Organisation
notified under the United Nations
(Privileges and Immunities) Act, 1947,
Consulate or Embassy of foreign
countries and any other person or class
of persons as may be specified in this
behalf, who shall, subject to such
conditions and restrictions asmay be
prescribed, be entitled to claim a refund
of taxes paid on the notified supplies of
goods or services or both received by
them."
• Accordingly, Notification No.
13/2017-IGST (rate) have been
issued to give effect to section 55 of
the CGST act.
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
• Giving such exemption for a
particular organization, for which
refund mechanism is already in
place will result in similar requests
in the future from other
organizations, which is not
desirable.
• Fitment Committee recommended
to maintain status quo
7.. Avgas 18% Nil/1% • Avgas is the type of aviation fuel
used in small piston engine powered
aircraft within the general aviation
community.
• These aircraft are predominantly
used by private pilots and flying
clubs and for tasks such as flight
training.
• Pilot training course in India cost
about 35-40 lacs from a DGCA
approved reputed flight school
which is majorly undertaken by
upper-middle class strata of the
society and Avgas is, therefore not
a good for common man purpose.
• Further, Avgas is only a component
of flying training cost and other
major costs includes aircrafts costs,
insurance, maintenance, instructors
salaries etc. Thus, reducing GST
rate on Avgas is not likely to lead
to significant reduction in training
cost
• Further, ITC is available of GST
paid on Avgas used for supplying
pilot training services.
• Fitment Committee recommended
to maintain status quo
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
8. (i) Machinery
used in
Sericulture
Industry
(ii) Automatic
reeling machinery
18% 5%
Nil/5%
• The instant request is for machinery
used in Sericulture. Such exemption
on machineries will lead to an enduse based exemption which are
prone to misuse.
• Raw materials for these machineries
such as iron steel, plastic, and other
metals, in general, attract 18% GST.
Reduction in GST to 5% will
deepen the duty inversion
• The similar issue related to Silk
Reeling machineries (8445 40 40)
was deliberated in 47th GST
Council Meeting and no change was
recommended.
• Fitment Committee recommended
to maintain status quo
9. All Sports Goods
& Fitness
Products
12%/18% 5% • As per the recommendation of the
GST Council in its 14th Meeting
held on 18.05.2017, sports goods
classified under CTH 9506 other
than articles of general physical
exercise attract GST @ 12% (Sl.
No. 230 of schedule II of
notification 01/2017-Integrated Tax
(Rate) while articles and equipment
of general physical exercise,
gymnastics etc attracted GST @
28%.
• Subsequently, as a part of the
rationalization of the 28% GST rate
slab, the GST Council in its 23rd
Meeting recommended GST @ 18%
(Sl. No. 441 of Schedule III of
notification No. 01/2017-Integrated
Tax (Rate) for articles and
equipment of general physical
exercise, gymnastics etc.
• The present request has asked for a
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
uniform GST rate of 5% on articles
under CTH 9506.
• This would lead to an inverted duty
structure as most of the inputs for
sports goods like steel, rubber etc
attract GST @ 18%.
• Fitment Committee recommended
to maintain status quo.
10. Mega Power
Projects
Nil • The request has been justified on the
ground that with the implementation
of GST w.e.f 1st July 2017, the
benefit of Terminal Excise Duty
refund ceased to exist. Further, the
interstate supplies with a
concessional CST @ 2% were
permitted until then with facilitation
of issue of C form. Moreover,
incidence of IGST@18% on the
imported supplies was an addition
to the project cost.
• The present request is for
introducing concessions based on
the lines of those that existed in the
Central Excise regime and that exist
presently in Customs.
• The exemption from Excise duty on
submission of Fixed Deposit
Receipt (FDR) or Bank Guarantee
(BG) in lieu of the availing
exemption from payment of duty
which was provided vide S. No. 339
of notification No. 12/2012-CE
dated 17.03.2012 was superseded by
notification No. 11/2017-CE dated
30.06.2017 on inception of GST
• Under GST, no exemptions have
been provided.
• Fitment Committee recommended
to maintain status quo
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
11. Apple Carton
Boxes
18% 5% • Carton Boxes fall under HSN
heading 4819.
• The matter in respect to the GST
rates on the items falling under HSN
4819 was placed before the GST
Council in its 45th meeting.
• It was observed that the items
falling under HSN 4819 like
cartons, boxes and cases of noncorrugated paper or paper board
attracts a GST rate of 18% and
cartons, boxes and cases of
corrugated paper or paper board
attract a concessional GST rate of
12%. GST Council recommended
that all items falling under HSN
4819, irrespective of being
corrugated or non-corrugated, shall
attract a uniform GST rate of 18%.
This change was made effective
from 1st October, 2021.
• Generally, end-use based
exemptions/concessional rates are
difficult to administer and are
generally litigation-prone.
• Nonetheless, in 49th GST Council it
was decided that Himachal Pradesh
will submit a detailed representation
in this regard for examination by the
Fitment Committee.
• Detailed representation from CCT
Himachal Pradesh was presented
before the Fitment Committee.
• Fitment Committee recommended
to maintain status quo
12. Two-wheeler and
four wheeler Flexi
Fuel Vehicles
(FFV) /CTH 8711
28% 5% for 2-
Wheeler
and 12%
for 4-
• Flexi fuel vehicles (FFVs) have an
internal combustion engine and are
capable of operating on normal
petrol and/or any blend of petrol and
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
for 2 wheelers &
8703 for 4
wheelers
Wheeler) ethanol
• The present request has given the
slightly higher cost of flexi fuel
engines as a rationale for GST
reduction.
• It has been a clear and consistent
policy of decarbonizing the
transport sector through various
policies and initiatives that support
Electric Vehicles (EV), which is
evident in the lowest tax rate of 5%
GST on EVs in addition to PLI
Scheme for Auto Sector & Advance
Chemistry Cell (ACC)
• However, unlike the EV vehicles
which is clearly distinguishable and
identifiable, this is not the case with
flexi fuel vehicles
• There is no clear cut ‘definition’ of
flexi fuel vehicle in the Motor
Vehicle Act or any allied Acts.
• This is likely to lead to misclassification of vehicles as flexi
fuel vehicles for availing benefit of
concessional GST rate.
• Fitment Committee recommended
to maintain status quo
13. Agricultural
products
Nil • The request to exempt GST on
agricultural products and on
agriculture- based items to protect
the farmers.
• However, farmers do not have to
pay tax on supply of fresh fruits and
vegetables.
• The request is general in nature.
• Fitment Committee did not
recommend any change
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
14. Two-wheeler and
four wheeler Flexi
Fuel Vehicles
(FFV) /CTH 8711
for 2 wheelers and
8703 for 4
wheelers
Reduction
in
Compensat
ion Cess
on Flexi
Fuel
Vehicles.
• It has been a clear and consistent
policy of decarbonizing the
transport sector through various
policies and initiatives that support
Electric Vehicles (EV), which is
evident in the lowest tax rate of 5%
GST on EVs in addition to PLI
Scheme for Auto Sector & Advance
Chemistry Cell (ACC)
• However, unlike the EV vehicles
which is clearly distinguishable and
identifiable, this is not the case with
flexi fuel vehicles.
• There is no clear cut ‘definition’ of
flexi fuel vehicle in the Motor
Vehicle Act or any allied Acts.
• This is likely to lead to misclassification of vehicles as flexi
fuel vehicles for availing benefit of
concessional GST compensation
cess.
• As on date, GST Compensation
Cess has been extended upto 31
st
March 2026.
• Fitment Committee did not
recommend any change
15. Utensils made of
brass
12% Reduce • GST rate on raw materials for these
utensils such as copper, zinc, tin,
iron, steel, other metals and their
scrap in general, attract 18% GST.
• As a result, there is already inverted
duty structure for supply of these
utensils. Further reduction in GST
rate on utensils will deepen this tax
inversion and consequently may
lead to accumulation of input tax
credit thereby increasing cost of
utensils.
• Fitment Committee did not
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
recommend any change.
16. Heavy feedstock,
Vacuum Gas Oil
(VGS) /
Reformates, etc
18% Nil • This issue was deferred in last
Fitment Committee meetings held in
June & September, 2022 as inputs
were awaited from MoPNG.
Fitment Committee had noted
further clarity was needed on the
matter regarding the intended use,
capacity utilization potential and
benefits accruing from heavy
feedstock.
• The inputs received from MoPNG
were discussed in the meeting
• Fitment Committee did not
recommend any change.
17. All bakery
products
manufactured and
sold by MSME
5%/18% • At present, Rusks, toasted bread and
similar toasted products, falling
under HS 1905 40 00, attract GST
@5%.
akery products like Pastry, cakes,
iscuits and other bakers’ wares, whether
r not containing cocoa; communion
wafers, empty cachets of a kind suitable
or pharmaceutical use, sealing wafers,
ce paper and similar products [other than
izza bread, khakhra, plain chapatti or
oti, bread, rusks, toasted bread and
milar toasted products] falling under HS
905 attract GST@18%.
mall manufacturer/traders in MSME
ector have the option to avail threshold
xemption and composition scheme.
re-GST incidence on most of these
dditional bakery products on which rate
eduction has been desired was 18% or
more.
Agenda for 50th GSTCM Volume 1
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S.
No
Description/
HSN
Present
GST/
IGST rate
Requested
GST rate Comments
• Providing source-based exemption
to MSME sector for specific
products like bakery products will
be difficult to monitor and cause
distortion.
• Fitment Committee did not
recommend any change.

Agenda for 50th GSTCM Volume 1
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(c) Issues deferred by the Fitment Committee for further examination in relation to
goods – Annexure III
Annexure-III
S.
No
Description
/HSN
Present
GST/
IGST
rate
Requested
GST rate Comments
1. Millet based
Products
12% /
18%
• The millet product under
consideration ‘Millet Mix’ consists
of 90% millets.
Classification under HS 1102 (at
5%/Nil)
• HS 1102 consists of cereal flours
other than flours of wheat or meslin.
• Flours of this heading may be
improved by the addition of very
small quantities of mineral
phosphates, anti-oxidants,
emulsifiers, vitamins or prepared
baking powders (self-raising
flour).
• The instant product contains
additives beyond these prescribed
additives.
• Such flours can be used for making
preparations of heading 19.01.
• Flours which have been further
processed or had other substances
added with a view to their use as
food preparations are excluded.
• The instant product undergoes
multiple stages of preparation that
involves washing, roasting,
grounding, addition of additives like
cereals, pulses (around 10%), and
packaging.
• The preparation process and
additives qualify it to have been
further processed or had other
substances added with a view to
their use as food preparations are
Agenda for 50th GSTCM Volume 1
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excluded.
Classification HS 1901 (at 18%)
• Millet Mix is appropriately
classifiable under HS 1901 that
covers food preparations of flour.
• It may be noted that the food
preparations need not necessarily be
in edible directly condition for it to
be classified under HS 1901.
• This heading covers a number of
food preparations with a basis of
flour, which derive their essential
character from such materials
whether or not these ingredients
predominate by weight or volume.
• The end product is preparation of
millet flour and not millet flour
per se.
• The raw material, that is millet
flour, undergoes processing and
consequent significant value
addition that results into a new
value-added commercial commodity
coming into existence, which is sold
at a premium in the market as
against flour of millet/roasted
millet.
• General rules of Interpretation Rule
1 and 3(a) appears to be applicable
in the instant dispute.
• Further, under 1901, preparations
are often used for making
beverages, gruels, as food suitable
for infants or young children,
dietetic foods, etc., by simply
mixing with, or boiling in, milk or
water. The instant commodity
generally has a similar intent of
usage and undergoes a similar
cooking process.
• Classification and tax treatment of
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Millet at par with Chapter 11 goods
is likely to affect the classification
and applicable tax rate on a large
number of similarly placed
products/mixes such as idle mix,
dosa mix etc entailing significant
revenue implication.
• Fitment Committee recommended
to defer for more in-depth study.
2. Khari, Cream
Rolls [Bakery
products]/ HS
1905)
To clarify that
Khari and
crème roll
should get
covered under
“similar
toasted
products”,
which attract
5%
• Currently, concessional GST rate of
5% is applicable on Rusks, toasted
bread and other toasted products
falling under tariff item 1905 40 00.
• Bakery products such as Pastry,
Cake, Biscuits, Communion Wafers,
etc. [other than pizza bread,
khakhra, plain chapatti or roti,
bread, rusks, toasted bread and
similar toasted products], falling
under CTH 1905, attract GST rate
of 18%.
• Fitment Committee examined the
issue before the 47th GST Council
Meeting and observed that further
details regarding the nature of
product, process of preparation is
required before making any
suggestions. Accordingly, the matter
was deferred by the 47
th GST
Council for further examination.
• Fitment Committee recommended
to defer for more in-depth study
3. Sugar boiled
Confectionary
12% Clarification
may be
provided
regarding the
scope of 'Sugar
Boiled
Confectionery'.
• Sugar boiled confectionary attract
GST at the rate of 12% and Sugar
confectionary attract GST at the rate
of 18%.
• Sugar boiled confectionary has been
carved out with a lower GST rate of
12% based on recommendations of
the GST Council in its 25th meeting.
• Sugar boiled confectionary refers to
boiled sweets which has a dedicated
Agenda for 50th GSTCM Volume 1
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8-digit HS Code 1704 90 20. It is
distinguishable from jelly
confectionary, toffees, caramels,
similar sweets, etc.
• As per open source, boiled sweet is
a sugar candy prepared from one or
more sugar-based syrups that is
heated to a temperature of 160 °C
(320 °F) to make candy. So, it is
essentially the manufacturing
process along with ingredients that
determines whether a commodity is
classifiable as a boiled sweet and
attract a lower GST rate of 12%.
• In view of difficulty in
administering the levy on sugar
boiled confectionery (at 12%) from
other similarly placed commodities
(at 18%) it is advisable to have
uniform rate of 18% to remove the
potential leakages/misuse and
avoidable litigation.
• Fitment Committee recommended
to defer the issue for industry
consultation.
4. Steel scrap 5% (with
ITC),or
2% (without
ITC),or
5% or 18%
(under RCM
Exempt when
sold by dealers
and RCM in
last leg when
sold to
manufacturer,
or
5%, or
1% without
(i) Request to reduce GST
rate from 18 % has not
been accepted by GST
Council in its 47
th
meeting. Therefore, issue
of rate reduction has
already been decided.
The only issue referred
to Fitment committee
for deliberation and
making suitable
recommendations is
regarding levy of GST
on RCM basis
(ii) Currently, GST rate on
scrap [falling under
7204, 7404, 7503, 7802,
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ITC, for traders
only
7902, 8549] is 18% on
forward charge basis as
per section 9(1) of CGST
Act, 2017.
(iii) So far, the GST Council
has not recommended
reverse charge
mechanism (RCM) on
the supply of scrap as per
section 9(3) or 9(4) of
CGST Act, 2017
Observation by Karnataka & Punjab
during 47th GST Council Meeting:
(iv) Hon'ble Member from
Karnataka suggested to
do a detailed study on
scrap, where it was used
in manufacturing and in
which industries. If this
could be tracked, then
there could be a reverse
charge leading to
generation of higher
revenue.
The representative from Punjab
requested to defer the issue of RCM
and to take it up only after due
consultation
Industry Consultation by Karnataka:
(v) One of the discussed
proposal was to notify
ferrous scrap for GSTTDS @ 2% under
Section 51 of the Central
Goods and Services Tax
Act. 2017 CGST Act. It
was opined that with
such tax deduction, the
transaction will get in the
reporting chain and the
scrap dealers will get
Agenda for 50th GSTCM Volume 1
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compliant. However,
industry rejected this
proposal asserting that it
would still leave 16% for
the scrap dealers to
continue engaging into
the fraudulent tax
practices like claiming
irregular input tax credits
to the tune of 16 Another
discussed proposal was
to generate unique batch
numbering for each lot of
ferrous scrap at the
source of scrap (i.e.
households for obsolete
scrap). It was opined that
it would facilitate
traceability of scrap
given that each lot will
have a unique ID. The
industry rejected this
proposal by asserting that
it would involve
significant investment in
infrastructure processes
and monitoring. Also,
even after such
investment, scrap
suppliers could still
choose to be noncompliant.
(vi) Industry informed that it
is struggling with the
GST issues related to the
category "Obsolete
Scrap" that is discarded
when steel products
(appliances, machinery,
buildings, bridges, ships,
cans, railway coaches
and wagons etc.) have
Agenda for 50th GSTCM Volume 1
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served their useful life. It
is different from “Home
Scrap” and “Industrial
Scrap”.
(vii) Accordingly, the industry
requested to consider the
following:
(viii) Create distinct
classifications for
obsolete scrap and other
kinds of scrap for ease of
monitoring and
appropriate tax
treatment, and
(ix) Accept one of the two
proposals laid down by
the association for
obsolete scrap i.e.
(x) reverse charge
mechanism on sales to
manufacturers, or
(xi) GST @ 1% without input
tax credit.
• State of Karnataka observed that the
proposal of levy of GST on reverse
charge mechanism may not be
feasible as the same breaks the
chain of input tax credit and also
leads to cascading of taxes and also
breakage of audit trail. However, to
prevent the evasion of tax and to
create a conducive business
atmosphere, the following measures
are recommended:
(a) Introduction and implementation
of track and trace mechanism in
the line of tobacco products as
planned Better registration
procedures may be implemented
for the taxable persons in scrap
in light of the amendments done
to the registration process
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requiring the physical
authentication and presence of
the taxpayer before the officer at
the time of registration. This
should be periodically renewed.
(b) E-waybill should be generated
for evasion prone commodities
only if that commodity is
registered to be supplied.
Amendments should be made to
incorporate this feature and this
needs physical authentication by
the registering authority.
(c) With the introduction of not
allowing input tax credit without
the invoice being reflected in
FORM GSTR-2B and better
registration procedure in evasion
prone commodities, the menace
would come down and the effect
of this mechanism needs to
studied
(d) and a decision on RCM may be
taken if there is no alternative
but to disturb the status quo, at a
later date. This is because RCM
is always distortionary.
• Punjab has suggested to tax iron and
scrap on RCM and exempt supply
of scrap in the hands of traders.
Under RCM, the manufacturer will
have the liability to pay tax and this
is administratively efficient to boost
tax collection. Further, -way bill
should be mandatory for all
transactions in scrap irrespective of
value.
• Fitment Committee decided to
create a Committee of officers to
study the issue holistically and to
Agenda for 50th GSTCM Volume 1
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come up with workable solutions

Agenda for 50th GSTCM Volume 1
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(d) Recommendations made by the Fitment Committee for making changes in GST
rates or for issuing clarifications in relation to services – Annexure IV
Annexure-IV
Sr.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
1. To exempt GST on
satellite launch
services provided
by private
organizations.
• Satellite launch services by
Indian Space Research
Organization (ISRO), Antrix
Corporation Limited (ACL)
or New Space India Limited
(NSIL) is exempt from GST.
• However, this exemption is
not applicable to satellite
launch services provided by
private organizations. India
is emerging as a strong
player in the global
commercial space market.
• In order to allow start-ups to
take full advantage of these
huge opportunities being
created in Indian space
sector, it has been requested
that the GST exemption on
satellite launch services may
be extended to private
players.
• Satellite launch services supplied by
ISRO, ACL and NSIL are exempt
from GST. [Sr. No. 19C of
notification No. 12/2017-Central Tax
(Rate) refers].
• The 42nd GST Council took a
conscious decision to exempt satellite
launch services even though GST
charged on such supplies was
available to the recipient of these
services as ITC. The rationale behind
this decision was to reduce the upfront
cost for the recipients of such services
especially startups.
• Fitment Committee recommended that
the exemption may be extended to
satellite launch services provided by
private organizations with a view to
provide level playing field.
2. Rectification in
item at Sl. No. 3(ie)
of the notification
No. 11/2017 CTR
dated 28.06.2017,
which currently
reads as follows:
“(ie) Construction
of an apartment in
an ongoing project
under any of the
schemes specified
in sub-item (b),
sub-item (c), subitem (d), sub-item
(da) and sub-item
(db) of
item (iv); sub-item
• Vide notification No.
03/2022-CTR dated
13.07. 2022, items at sl.
No. 3(iv), (v) and (vi) of
the notification No.
11/2017 CTR dated
28.06.2017 were omitted.
• However, the item at sl.
No. 3(ie) of the
notification continued to
have reference to some of
the schemes
etc. which figured under
sl. No. 3(iv), (v) and (vi)
of the notification. The
anomaly may be
rectified.
• On the recommendations of 47th
GST Council, vide notification
No. 03/2022-CTR dated 13.07.
2022, items at sl. No. 3(iv), (v) and
(vi) of the notification No.
11/2017 CTR dated 28.06.2017
have been omitted.
• However, the item at sl. No. 3(ie)
of the notification continues to
have reference to some of the
housing schemes etc. which
figured under sl. No. 3(iv), (v) and
(vi) of the notification in order to
take care of the real estate projects
which commenced prior to
01.04.2019.
• Fitment Committee recommended
that the anomaly may be rectified
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Sr.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
(b), sub-item (c),
sub-item (d) and
sub-item (da) of
item (v); and subitem (c) of item (vi),
against serial
number 3
of the Table, in
respect of which the
promoter has
exercised option to
pay central tax on
construction of
apartments at the
rates as
specified for this
item.”
by inserting suitable explanation to
effect that the item at sl. No. 3(ie)
of the said notification refers to
sub-items of the item (iv),(v) and
(vi) of the notification as they
existed in notification prior to their
omission vide notification No.
03/2022-CTR dated 13.07. 2022.

3. Omission of clause
(h) of explanation
to the entry at Sl.
No. 24 (i) of the
notification No.
11/2017 CTR dated
28.06.2017.
• Exemption entry at sl. No.
53A of the notf. No. 12/2017
CTR dated 28.06.2017
dealing with “services by
way of fumigation in a
warehouse of agricultural
produce was omitted vide
notification No. 04/2022-
CTR dated 13.07.2022.
• However, a parallel entry at
clause (h) of explanation to
the entry at Sl. No. 24 (i) of
the notification No. 11/2017
CTR dated 28.06.2017
remained which may be
omitted.
• On the recommendation of 47
th GST
Council, exemption entry at sl. No.
53A of the notf. No. 12/2017 CTR
dated 28.06.2017 which covered
“services by way of fumigation in a
warehouse of agricultural produce”
was omitted vide notification No.
04/2022-CTR dated 13.07. 2022.
• However, a parallel entry at clause (h)
of explanation to the entry at Sl. No.
24 (i) of the notification No. 11/2017
CTR dated 28.06.2017 for the same
service has not been omitted.
• Fitment Committee recommended that
the same may be omitted.
4. (a) Extend date for
filing of
Declaration by
Goods Transport
Agencies (GTAs)
to pay GST under
forward charge
mechanism (FCM)
during 2023-24.
● GTAs were not able to file
declaration for paying GST
under FCM during 2023-
2024 by the last date, that is
15th March, 2023 due to
various reasons including:
o Presumption that the
requirement was only
for those who are
going in for FCM
from 2023-24
• GTAs who want to pay GST under
FCM during any financial year are
required to exercise the option to do so
by filing an online declaration on
Goods and Services Tax Network
(GSTN) portal by 15th March of the
preceding financial year.
• This requirement was notified on
13.07.2022 based on the
recommendations of the 47th GST
Council meeting. Accordingly, the
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o Submitted the hard
copy of Annexure V
before 15th March,
2023 but missed the
online application
o Unaware of the
requirement and did
not submit Annexure
V, either online or
offline, before the
deadline
o Applied for a new
GST registration
in March 2023 and
received the GST
number after
15th March 2023, and
thus, were unable to
submit Annexure V
within the given
window
● Therefore, it was requested
that the deadline may be
extended to 31.05.2023.
deadline for exercising this option for
financial year 2023-2024 was 15th
March, 2023.
• The following two proposals, were
placed before GST Implementation
Committee (GIC) in view of the
urgency involved:
(i) to extend last date for
exercising the option to pay
GST under FCM from 15th
March, 2023 to 31st May,
2023 and
(ii) to allow GTAs who
commence new business or
cross registration threshold
during any financial year, to
exercise the option for the
year in which they commence
business or cross registration
threshold within 45 days from
date of applying for GST
registration or 1 month from
date of obtaining registration
whichever is later.
• These changes were thereafter notified
on 09.05.2023 after GIC approval
thereby resolving this issue for the
current financial year.
• For the future, it is felt that GTAs who
have exercised option to pay GST
under forward charge in previous
financial year(s) should not be
required to file declaration every year.
• As a trade friendly measure, Fitment
Committee recommended that the
requirement to exercise option to pay
GST under forward charge every year
may be done away with and it may be
provided in the notification that,
GTAs who have exercised option to
be under FCM during a particular
financial year shall be deemed to have
exercised it for the next and future
financial years unless they file a
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declaration that they want to revert to
reverse charge mechanism (RCM).
• Draft form for this purpose is placed at
Annexure A.
• Consequent changes may also be
made to:
o Annexure V to notification No.
11/2017-CTR [as discussed in
Annexure B]
o Annexure III of notification
No. 13/2017-CTR [as
discussed in Annexure C]
(b) A start date may
be prescribed for
filing of option by
GTA to pay tax
under FCM.
• GSTN has requested that a
start date for filing of option
by GTA may be provided for
subsequent financial years;
otherwise the default date for
exercise of option for a
financial year shall be 1st
April of the preceding
financial year. For example,
the default start date for FY
2024-2025 would be 1st
April, 2023.
• Having start date for exercise of
option for a FY as 1st April of the
preceding FY is not desirable as this
may give rise to false impression to
the GTAs that they have exercised
option for the current FY.
• Fitment Committee recommended that
the start date may be prescribed as 1
st
January of the preceding financial
year.
• Fitment Committee also recommended
that the last date for filing the option
may be changed from 15th March to
31st March of preceding Financial
Year.
5. Amendment may
be made to
notification No.
8/2017-ITR and
notification No.
10/2017-ITR to
remove redundant
provisions pursuant
to amendments in
Finance Act, 2023.
• Hon’ble Gujarat High Court
in Mohit Minerals case has
ruled that no tax is leviable
on the ocean freight for the
services provided by a
person located in a nontaxable territory by way of
transportation of goods by a
vessel from a place outside
India up to the customs
station of clearance in India.
• The impugned notification
No.8/2017 – Integrated Tax
(Rate) and the Entry 10 of
the notification No.10/2017 –
Integrated Tax (Rate) were
declared ultra vires the
• Prior to enactment of Finance Act,
2023, place of supply of service by
way of transportation of goods was
‘destination of goods’. As a result,
transportation service supplied by an
Indian Shipping Line (ISL) to a
foreign exporter, for transport of
goods from foreign port to India
against foreign exchange did not
qualify to be an export of service and
was taxable. However, the same
service supplied by a Foreign
Shipping Line (FSL) to foreign
exporter, both being outside India, was
not taxable.
• To provide level playing field to ISLs,
liability on transportation service
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Integrated Goods and
Services Tax Act, 2017.
• Hon’ble Supreme Court
subsequently upheld the
decision of the Gujarat High
Court.
• In the wake of the above
judgements, appropriate
clarifications or amendments
may be issued in the said
notification.
supplied by FSL to foreign exporter
for transport of goods to India, was
placed on the Indian importer under
RCM.
• Hon’ble Supreme Court judgement in
Mohit Mineral case passed in 2022
has set aside this liability on the
importer.
• In order to restore level playing field
to ISLs, the place of supply (PoS) of
service of transportation of goods has
been changed from ‘destination of
goods’ to ‘location of recipient’
Finance Act 2023. As a result,
services supplied by ISLs to foreign
exporter against payment in foreign
exchange would now meet the
definition of export of service and
shall be zero rated. This is intended to
bring parity between tax treatment of
service supplied by FSL and ISLs both
for inward and outward freight.
• Supply of service can be considered as
an export of service only if the
recipient of service is located outside
India, the place of supply of service is
outside India and the payment for such
service is received in convertible
foreign exchange or in Indian rupees
where permitted by RBI.
• Fitment Committee recommended that
the provisions which were introduced
to provide level playing fields to ISLs
have lost relevance and need to be
amended/deleted as per Annexure D.
• Section 162 of Finance Act, 2023
omits Section 13(9) of IGST Act,
2017. However, this section of
Finance Act, 2023 shall come into
effect from date of notification in
official gazette.
• The proposed amendments/deletions
will also be synchronized with date of
notification of Section 162 of Finance
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Act, 2023.
6. To clarify that
services provided
by director in his
personal capacity
such as providing
services by way of
renting of
immovable
property to the
company/body
corporate which is
not in his official
capacity as post of
director to the said
company/ body
corporate are not
subject to Reverse
Charge mechanism
under the provision
of Section 9(3) of
CGST Act vide
Entry No. 6 of
notification No.
13/2017 CTR dated
28.06.2017.
• It has been submitted that
services supplied by director
of a company or a body
corporate to the said
company or the body
corporate are subject to
Reverse Charge mechanism
under the provision of
Section 9(3) of CGST Act
vide Entry No. 6 of
notification No. 13/2017
CTR dated 28.06.2017.
• However, in cases, where
director is providing services
in his personal capacity such
as providing services by way
of renting of immovable
property to the said
company/body corporate and
not in his official capacity as
post of director in the said
company/body corporate,
should not be subjected to
GST under reverse charge
mechanism. These said
services should attract GST
on forward charge.
• Entry No. 6 of notification No.
13/2017 CTR dated 28.06.2017,
provides that services supplied by a
director of a company or a body
corporate to the said company or the
body corporate are subject to Reverse
Charge Mechanism under the
provisions of Section 9(3) of CGST
Act.
• Issue raised essentially is whether
services supplied by a director of a
company or body corporate such as
renting of immovable property in
private or personal capacity is taxable
under Reverse Charge Mechanism as
per above mentioned entry of ibid
notification.
• Providing services such as renting of
immovable property in private or
personal capacity by a director of a
company or body corporate are not
covered under above mentioned entry
No. 6 of notification No. 13/2017
CTR dated 28.06.2017 and hence not
taxable under Reverse Charge
Mechanism.
• The said entry covers only those
services supplied by director of a
company or a body corporate, which
are supplied by the director of the
company or the body corporate as or
in the capacity of director of that
company or body corporate and not
services supplied by him in personal
capacity.
• Accordingly, Fitment Committee
recommended to clarify the issue by
way of a circular.
7. To clarify that
supply of food and
beverages at
cinemas is taxable
State of Karnataka raised the
issue as follows:
• The cinema operators are
engaged in the business of
• The request is to clarify that supply of
food and beverages at cinemas is
taxable as restaurant service attracting
5% GST.
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as restaurant
service and to levy
GST at the rate of
5% on the same.
exhibition of
cinematographic films &
supply of food & beverages
in cinema premises around
the country. It is submitted
that, in case of railways,
airports, etc., the members
also provide a ticket to
access the premise, but once
the access is granted, food
and beverage is supplied to
the patrons as per the order.
• In the above backdrop, it is
submitted that, the Cinema
like cloud kitchen/take away
is also engaged in service in
the form of cooking and
preparing of food and thus,
should get covered under the
definition of “restaurant
services’ liable to GST @
5%.
• Multiplexes are engaged in
supply of food and beverage
to patrons who come to
watch movies in the cinema
premises. Such products are
processed and cooked inside
the cinema premises and
served to the patrons to be
consumed on the cinema
premise or as takeaway. The
products cooked by the
cinema are specially curated
and cooked by the cinema on
the premise.
• Since the inception of GST,
the cinema exhibition
industry has treated the
supply of food and beverage
at the cinema premises as
provision of service and
levied GST at 18%. Vide
notification No. 46/2017-
• As per Explanation at Para 4 (xxxii) to
notification No. 11/2017-CTR dated
28.06.2017, “Restaurant Service’
means supply, by way of or as part of
any service, of goods, being food or
any other article for human
consumption or any drink, provided by
a restaurant, eating joint including
mess, canteen, whether for
consumption on or away from the
premises where such food or any other
article for human consumption or
drink is supplied.”
• Eating joint is a wide term which
includes refreshment or eating stalls/
kiosks/ counters or restaurant at a
cinema also.
• The cinema operator may run these
refreshment or eating stalls/ kiosks/
counters or restaurant themselves or
they may give it on contract to a third
party. The customer may like to avail
the services supplied by these
refreshment/snack counters or choose
not to avail these services. Further, the
cinema operator can also install
vending machines, or supply any other
recreational service such as through
coin-operated machines etc. which a
customer may avail or not.
• Thus the food or beverages served in a
cinema hall is taxable as restaurant
service as long as:
(i) the food or beverages are
supplied by way of or as part
of a service and
(ii) supplied independent of the
cinema exhibition service.
• Where the sale of cinema ticket and
supply of eatables such as popcorn or
cold drinks etc. are clubbed and sold
together, and such bundled supply
satisfies the test of composite supply,
the entire supply will attract GST at
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CTR dated 14.11.2017 the
reduced rate of 5% without
ITC has been levied on
restaurant service. It was
further clarified vide circular
No. 164/20/2021-GST dated
06.10.2021 that the intention
of the government is to cover
any place which is supplying
food and beverage as service
by way of cooking.
• Even in case of fixed eating
places at railway platforms,
airports or trade exhibitions
or food and beverage served
in airport/train, wherein an
entry ticket is required to
access these places, supply
of food and beverage at these
places is treated as restaurant
service and subject to GST
@ 5%. For railway
platforms, levy of GST @
5% has already been issued
vide notification No.
12/2018-CTR dated
26.07.2018.
• In the instant case also, the
cinemas also provide a ticket
to access the premise, but
once the access is granted for
viewing the movie, food and
beverage is supplied at
cinema akin to supplies made
at railway
platform/airport/trains/airline
or exhibitions.
• Hence, the cinema industry
has requested that supply of
food and beverage for human
consumption should be
construed as ‘restaurant
service’ and thus, liable to
GST @ 5% (without
the rate applicable to service of
exhibition of cinema, the principal
supply.
• Fitment Committee has recommended
that a clarification may accordingly be
issued by way of a circular.
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availment of input tax
credit).
****
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Annexure A
Annexure VI
FORM
Form for exercising option by a Goods Transport Agency intending to revert under reverse
charge mechanism to be filed before the commencement of any financial year to be
submitted before the jurisdictional GST Authority.
Reference No.-
Date: -
1. I/We______________ (name of Person), authorized representative of
M/s……………………. had exercised option to pay GST on the services of GTA in
relation to transportation of goods supplied by us during, the financial
year……………under forward charge by filing Annexure V on ....................;
2. I hereby declare that I want to revert to reverse charge mechanism for Financial
Year.........;
3. I understand that this option once exercised shall not be allowed to be changed within a
period of one year from the date of exercising the option and will remain valid till the end
of the financial year for which it is exercised.
Legal Name: -
GSTIN: -
PAN No.
Signature of Authorized representative:
Name Authorized Signatory :
Full Address of GTA:
(Dated Acknowledgment of jurisdictional GST Authority)
Note: The last date for exercising the above option for any financial year is the 31st March of the
preceding financial year.
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Annexure B
Annexure V
FORM
Form for exercising the option by a Goods Transport Agency for payment of GST on the
services supplied by him under forward charge before the commencement of any financial
year to be submitted before the jurisdictional GST Authority.
Reference No.-
Date: -
1. I/We______________ (name of Person), authorized representative of
M/s……………………. have taken registration/ have applied for registration and do
hereby undertake to pay GST on the services of GTA in relation to transportation of
goods supplied by us during , the financial year……………under forward charge in
accordance with section 9(1) of the CGST Act, 2017 and to comply with all the
provisions of the CGST Act, 2017 as they apply to a person liable for paying the tax in
relation to supply of any goods or services or both;
2. I understand that this option once exercised shall not be allowed to be changed within a
period of one year from the date of exercising the option and will remain valid till the end
of the financial year for which it is exercised time I exercise option to revert under
reverse charge mechanism by filing Annexure VI on or before the due date.
Legal Name: -
GSTIN: -
PAN No.
Signature of Authorized representative:
Name Authorized Signatory :
Full Address of GTA:
(Dated Acknowledgment of jurisdictional GST Authority)
Note: The last date for exercising the above option for any financial year is the 31st March of
the preceding financial year.
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Annexure C
Annexure III
Declaration
I/we have taken registration under the CGST Act, 2017 and have exercised the option to pay tax
on services of GTA in relation to transport of goods supplied by us during from the
Financial Year _____ under forward charge and have not reverted to reverse charge mechanism
by filing Annexure VI”

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Annexure D
1. Notification No. 08/2017-ITR dated 28.06.2017, Sr. No. 9(ii) providing rate of IGST on supply of services
Existing Proposed
Description of service Rate Description of service Rate
Transport of goods in a vessel including
services provided or agreed to be provided by
a person located in non-taxable territory to
a person located in non-taxable territory by
way of transportation of goods by a vessel
from a place outside India up to the
customs station of clearance in India.
5% Transport of goods in a vessel 5%
2. Notification No. 09/2017-ITR dated 28.06.2017, Proviso (ii) to Sr. No. 10 exempting certain services from
IGST
Existing Proposed
Description of services exempt from GST Rate Description of services exempt
from GST
Rate
Services received from a provider of
service located in a non-taxable territory by –
(a)....
(b)....
(c) a person located in a non-taxable
territory:
Provided that the exemption shall not apply to
–
(i) ....
(ii) services by way of transportation of
goods by a vessel from a place outside India
up to the customs station of clearance in India
received by persons specified in the entry
Nil Services received from a
provider of service located in a
non-taxable territory by –
(a)....
(b)....
(c) a person located in a nontaxable territory:
Provided that the exemption shall
not apply to –
(i) ....
(ii) May be omitted
Nil
3. Notification No. 10/2017-ITR dated 28.06.2017, Sr. No. 10 notifying interstate supplies under RCM
Existing Proposed
Category of
supply of
services
Supplier of
service
Recipient of
service
Services
supplied by
a person
located in
non-taxable
territory by
way of
transportation
of goods by a
vessel from a
A person
located in
non-taxable
territory
Importer, as
defined in
clause (26) of
section 2 of
the Customs
Act, 1962(52
of 1962),
located in the
taxable
territory.
May be omitted
Agenda for 50th GSTCM Volume 1
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place outside
India up to the
customs
station of
clearance in
India
******

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(e) Issues where no change has been proposed by the Fitment Committee in relation to
services – Annexure V
Annexure-V
Sr.
No.
Proposal Details of Request Discussions in Fitment Committee and its
recommendations
1. To exempt:
(i) IGST on
purchase of aircraft
and

(ii) IGST on aircraft
lease payment
• Purchase of aircraft attracts
GST at the rate of 5%. The
credit of GST so paid is not
available to the airline for
discharging output tax on
passenger transport services
through economy class. Thus,
substantial amount of GST
paid become a cost to airlines.
On the other hand, when
aircraft is procured under
leasing arrangement, GST at
5% paid on lease rentals is
available to airline for
discharging output tax liability
on passenger transport services
through economy class.
• Therefore, leasing an aircraft
has significant advantage in
terms of both cash flow and
impact on profit and loss as
opposed to upfront purchase of
an aircraft due to different
treatment of the said
transactions under GST
legislation. Airlines are forced
to lease aircrafts as opposed to
buying.
• The request to abolish GST of 5% on
import/purchase of aircrafts and lease
payments on leased aircrafts and
engines was placed before the 45
th
GST Council. The Council did not
accede to this request.
• The issue was again deliberated by the
Fitment Committee. As regards, the
request to exempt IGST on
purchase/import of aircraft, it is stated
that such a step will be detrimental to
the ‘Make in India’ initiative of the
government and the nascent aircraft
manufacturing industry in India. As
per news reports, “India is emerging
as one of the key aviation markets in
the world and given the growing
middle class and emerging economy,
the demand will continue to grow. The
government realizes that there is a
real potential for aircraft
manufacturing in India and it makes
sense both for the manufacturer and
for the airline.” The Hon’ble Prime
Minister has also laid foundation stone
of the first private sector C-295
aircraft manufacturing facility in
Vadodara, Gujarat.
• GST on supply of goods on lease has
to be the same as GST on supply of
goods by way of sale to avoid
arbitrage.
• Fitment Committee recommended
maintaining status quo.
2. To exempt GST on
the services by the
way of granting
affiliation to
schools by Central
Board of Secondary
• It has been submitted by
CBSE that it is an
autonomous body under the
Ministry of Education, GOI
and owns its constitution
vide the Resolution No. 209
• Request for granting exemption on
services by the way of affiliation
services provided by
universities/board or other educational
organizations to educational institution
was placed before the 47
th GST
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Education (CBSE)
for conduct of
secondary stage
examinations in
schools.
published vide No.
F55.21/61.SE 2(B) dated
27.02.1962 w.e.f. 01.07.1962
(hereinafter referred to as
'1962 resolution') with the
prime objective of regulating
and maintaining the standard
of Secondary Education in
India by way of conducting
examinations at Secondary
stage of education.
• For the purpose of its Board
Examination, CBSE is
empowered for granting
affiliation to such schools
which wishes to prepare
candidates for the
examinations conducted by
CBSE and requests to CBSE
for its recognition. For such
affiliation CBSE charges an
affiliation fee.
• Thus, the affiliation provided
by CBSE is purely in relation
to its examination services
which is not a separate
service but a part of unified
service which is a very
unique feature and cannot be
compared with the functions
of National Board of
Examination (NBE) [whose
example is cited in the
circular no. 151/07/2021 -
GST dt 17.06.2021] on the
basis of which GST
Department is levying GST
on the affiliation fees.
• Hence, the exemption
available to the services in
relation to the conduct of
examination vide Sr. No.
66(b)(iv) of Notification No.
12/2017-C.T. (Rate) dated
Council. The Council did not accept
the request.
• Earlier, based on the recommendations
of the 43rd GST Council, it was
clarified vide circular dated
17.06.2021 that such services attract
GST at the rate of 18%.
• Fitment Committee recommended to
maintain status quo.
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28.06.2017 is inclusive of
services by way of granting
of affiliation.
3. To exempt GST on
digital news
subscription.
• GST on digital news
products has made it
expensive for readers to
access credible news.
• This has direct impact on end
users and therefore digital
traffic for top publishers
have fallen. It is making the
task of credible and quality
journalism extremely
difficult as the news
publishers themselves are
facing an existential crisis on
their revenues and margins.
• Therefore it has been
requested to remove GST on
Digital News subscription in
public interest.
• Services by way of online/digital news
subscription comes under the heading
9984. Telecommunications,
broadcasting and information supply
services (Group - Online content
services) which otherwise attract GST
@ 18%.
• Supply of news in digital form is
essentially different from the printed
new paper in its constitution,
distribution and transmission.
• Subscription charges for online news
vis-à-vis print media have been
examined.
Print paper E paper (Approx.)
The Hindu- 3600 /-
yearly (avg.)
The Hindu- 2000/-
yearly
Times of India1260/-yearly
Times of India- 470/-
yearly
Mint- 3600/ yearly Mint- 2000/yearly
• It is seen that subscription of e-papers
is cheaper than the subscription of
print newspaper.
• Further, e-papers are offered at
discounted price by various platforms
from time to time, thus bringing the
price even much less.
• Even after being taxed at 18%, online
subscription is available at
considerably lower rate. Therefore, the
argument of trade that the rate @18%
will be hindering the access of the
consumers to the online news has no
merits. In fact, lowering of GST on epaper will adversely affect the printed
newspaper industry.
• Further, in case of printed newspaper,
major input i.e. newsprint attracts
GST @5%, however, in case of eAgenda for 50th GSTCM Volume 1
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papers, major inputs are taxed at
higher rates of GST (18/28% e.g.
Telecommunications, broadcasting
and information supply services,
Electronic goods (monitors, storage
device etc.). As a result, exemption
would result in blockage of ITC and
increase of cost. This will also lead to
inverted duty structure.
• Fitment Committee recommended to
maintain status quo.
****

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(f) Issues deferred by the Fitment Committee for further examination in relation to
services – Annexure VI
Annexure-VI
Sr.
No.
Proposal Details of Request Discussions in Fitment Committee and
its recommendations
1. To clarify whether
service by way of
hostel
accommodation,
service apartments/
hotels booked for
longer period is a
service of renting of
residential dwelling
for use as residence
and exempted as
per entry no. 12 of
the notification No.
12/2017-CT (Rate)
dated 28/06/2017.
• The services under heading
9963 by a hotel, inn, guest
house, club or campsite by
whatever name called for
residential or lodging
purpose, having declared
tariff of a unit below one
thousand rupees per day or
equivalent were exempt till
17.07.2022 vide entry no. 14
of the notf. No. 12/2017-
CT(R) dated 28.06.2017.
• Circular No. 354/17/2018-
TRU dated 12.02.2018 at its
point no. 1 has considered
the hostel accommodation at
par with the hotel
accommodation.
Accordingly, multiple AARs
from different states like
Maharashtra, Rajasthan and
Chhattisgarh have exempted
hostel accommodation of
students having charges
below 1000/-rupees a day
under the entry no. 14 of the
notification no. 12/2017-
CT(Rate).
• Vide the latest amendment
notification No. 04/2022-
CT(Rate) dated 13.07.2022,
the exemption to hotel
accommodation having per
day charges below Rs.
1000/- has been withdrawn
w.e.f. 18/07/2022 and the
said transaction is now made
taxable at 12% by the
notification No. 03/2022-CT
(Rate) dated 13.07.2022.
• The judgment of the Hon’ble
Karnataka High Court dated
03.02.2022 in WP No. 14891 of 2020
titled Taghar Vasudeva Ambrish is
subjudice as the department has filed
civil appeal against the same before
Hon’ble Supreme Court of India vide
SLP 2317/2023.
• Since the matter is sub-judice, Fitment
Committee recommended that the
same may be deferred.
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Thus, the service of hostel
accommodations, having
charges below Rs. 1000/- a
day which were held as
exempt earlier by different
AARs are now taxable
services w.e.f 18.07.2022.
• However, in the case of
Taghar Vasudeva Ambrish,
in WP No. 14891 of 2020,
the Hon’ble Karnataka High
Court at para 12 of the
judgment, while reproducing
the meaning of ‘residential
dwelling’ has observed that
“in normal trade parlance
residential dwelling means
any residential
accommodation and is
different from hotel, motel,
inn, guest house, etc. which
is meant for temporary
stay.”
• In para 13, the court has
noted that “in hostels, the
duration of stay is more as
compared to hotel.” And
later in para 14, it came to
conclusion that “it cannot be
held that the residential
dwelling does not include
hostel which is used for
residential purposes by
students or working women.”
Thus, the court has held the
service of hostel
accommodation as the
services by renting of
residential dwelling for use
as residence.
• Entry no. 12 of notification
No. 12/2017-CT (Rate) dated
28.06.2017 exempts the
services by way of renting of
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residential dwelling for use
as residence. Therefore, if
the hostel accommodation is
considered as the hotel
accommodation, in line with
the circular dated 12.02.2018
issued by CBIC, it is taxable
service and if it is considered
as residential dwelling, as
held by the Hon’ble
Karnataka High Court, it is
an exempt service.
• If the ratio of ‘temporary
stay’ applied by Hon’ble
Karnataka High Court is
considered then it may
initiate some more legal
disputes in case of taxation
on Service apartments, which
were usually booked by the
companies for a considerably
longer period. The issue
regarding the taxability in
case of hostel
accommodation, service
apartments or hotels booked
for longer period may be
clarified.
2. To exempt services
provided by District
Mineral
Foundations
from GST.
• A District Mineral
Foundation (DMF) Trust is
established by the State
Government under section
9B of the MMDR Act, 1957,
with an objective to
work for the interest and
benefit of persons and areas
affected by mining related
operations by regulating
receipt and expenditure from
the respective Mineral
Development Funds created
in the concerned district.
• They provide services related
to drinking water
• 45th GST Council (SI.No.7 of
Annexure-VI, Agenda No. 14) deferred
the matter stating that the issue was
not clear. The council also directed to
obtain details about the nature of
activities undertaken by DMF from
Odisha.
• Odisha government was requested to
inform the nature of activities
undertaken and services supplied by
DMF.
• The issue was deliberated in the
Fitment Committee meetings and it
was decided to defer the matter till
reply is received from State of Odisha.
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supply, environment
protection, health care
facilities etc.
3. To clarify whether
reimbursement of
electricity charges
received by the
Real estate
companies, malls,
airport operators
etc. from their
lessees/occupants is
exempt from GST.
• In terms of Sl. No. 13 of
notification No. 11/2017
Central Tax (Rate) dated
28/06/2017 and pari materia
state notifications issued in
this regard (hereinafter
referred to as the ‘Rate
Notification’), Electricity,
gas, water and other
distribution (under Heading
9969) is taxable @ 18%.
• In terms of Sl. No, 25 of
notification No. 12/2017-
Central Tax (Rate) dated
28/06/2017 and pari materia
state notifications issued in
this regard (hereinafter
referred to as the ‘Exemption
Notification’) “Transmission
or distribution of electricity
by an electricity transmission
or distribution utility” (under
Heading 9969) is exempt
from levy of GST.
• Real estate companies supply
electricity to their short term
and long-term lessees. These
companies take High
Tension line from Electricity
Distribution Companies
(DISCOMs) and convert the
same into Low Tension line
in transformers and through
panels the same is being
distributed to the sub
lessees/occupants for their
consumption.
• DISCOMs bill directly to the
real estate companies, who in
turn bill to the end
• The issue was discussed in
the Fitment Committee meetings held
on 25.04.2023 and 09.06.2023.
• Members have been requested to share
practices being followed in their states
with regard to levy of GST on such
further supply of electricity by
builders/developers etc., the regulatory
framework w.r.t such further supply of
electricity, and copies of Show Cause
Notices/Adjudication Orders issued, if
any, demanding GST on such further
supply of electricity, along with their
views.
• Fitment Committee recommended to
defer the issue till receipt of the
information.
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consumers on the basis of
actual units consumed by the
property occupants within
their offices/units as per the
reading recorded in the sub
meters installed at their
premises, at the same rate at
which DISCOMs billed them
or at a higher rate citing
several reasons such as,
“Transmission/Distribution
Loss”.
• Doubts are being raised on
the applicability of GST on
the aforesaid further supply
of electricity by the real
estate companies to their
lessee or occupants on whose
inward supply no GST was
leviable.
4. To clarify whether
ITC of other
business verticals
can be used to
discharge GST on
outward liability in
respect of
restaurant service
given the restriction
of input tax credit
as specified in
notification No.
11/2017-CT (Rate)
dated 28.06.2017,
as amended, against
Entry no. 7 [ & in
8, 9, 10, 23, 25,
31A].
• During the period from
01.07.2017 to 14.11.2017,
supply, by way of or as part
of any service or in any other
manner whatsoever, of
goods, being food or any
other article for human
consumption or any drink,
where such supply or service
was for cash, deferred
payment or other valuable
consideration provided by a
restaurant attracted tax @
12%/18% with ITC.
• GST Council in its 23rd
Meeting dated 10.11.2017
held that,
“All stand-alone restaurants
irrespective of being air
conditioned or otherwise, shall
attract tax at the rate of 5%
without input tax credit. Food
parcels (or takeaways) from
restaurants shall also attract tax
• By way of notification No. 46/2017-
CT (Rate) dated 14.11.2017 w.e.f.
15.11.2017, the supply of services by a
restaurant which is not located in the
premises of hotels, inns, guest houses
or other similar places having declared
tariff of any unit of accommodation of
Rs. 7,500/- and above per unit per day
or equivalent has been made taxable
@5% with the condition that credit of
input tax charged on goods and
services used in supplying the services
has not been taken. Explanation No.
(iv) as appended to notification No.
11/2017-Central Tax (Rate) dated
28.06.2017 which reads as follows:
“(iv) Wherever a rate has been prescribed
in this notification subject to the condition
that credit of input tax charged on goods
or services used in supplying the service
has not been taken, it shall mean that,
(a)Credit of input tax charged on goods or
services used exclusively in supplying
such service has not been taken; and
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at the rate of 5% without input
tax credit.”
[Para 66(vi), Page 51, Signed
Minutes, 23rd GSTCM]
• Accordingly, it appears that,
while approving the rate of
tax of “5% without input
tax credit” for restaurants,
the intent of the Council was
to disallow payment of
output tax liability with any
ITC whatsoever, whether in
respect of inward supplies
used in supplying the
restaurant services or other
business verticals under the
same GSTIN.
• Accordingly, changes were
made w.e.f. 15.11.2017 vide
Notification no. 46/2017-CT
(Rate) dated 14.11.2017.
‘Restaurant Service’ was
later defined w.e.f.
01.10.2019 vide Notification
No. 20/2019-CT (Rate) dated
30.09.2019. An Explanation
was also inserted in the
notification specifying that
the said rate of 5% is a
mandatory rate.
• Instances have been brought
to notice in this regard where
the output liabilities in
respect of restaurant service
are being discharged by
utilizing ITC availed in
respect of other business
verticals under the same
GSTN. Restriction on
availing of ITC as imposed
by the aforesaid notifications
is applicable only in respect
of inward supplies used in
(b)Credit of input tax charged on goods or
services used partly for supplying such
service and partly for effecting other
supplies eligible for input tax credits, is
reversed as if supply of such service is an
exempt supply and attracts provisions of
sub-section (2) of section 17 of the
Central Goods and Services Tax Act, 2017
and the rules made thereunder”
• The matter was deliberated by
members of the Fitment Committee
and it was decided to obtain data from
GSTN regarding how much tax is
being paid by suppliers of restaurant
service in cash and credit for further
examination of the issue.
• Therefore, Fitment Committee
recommended to defer the matter.
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supplying the restaurant
services. Utilization of input
tax credit in respect of
inward supplies used in other
business verticals having
same GSTIN has not been
restricted for discharging
outward liability for
restaurant service.
• In Circular No. 167 / 23
/2021 – GST dated
17.12.2021 issued by the
CBIC in the context of
services supplied by
restaurants through ecommerce operators,
clarifies that, on restaurant
service, ECO shall pay the
entire GST liability in cash
(No ITC could be utilised for
payment of GST on
restaurant service supplied
through ECO).”
• Any such argument that there
is no restriction to utilize
ITC in respect of other
business verticals may
actually jeopardize the entire
taxation scheme of services
where a lower rate of 5% has
been specified with the
condition that, credit of input
tax credit used in supplying
the service has not been
taken [e.g. Passenger
Transportation Service,
Goods Transport Services
etc.].
5. To clarify that job
work activity
towards processing
of “Barley” into
“Malted Barley” is
covered under the
● Barley malt manufacturing
process comprises of (a)
cleaning of raw barley ;(b)
steeping of cleaned barley;
(c) germination and (d)
kilning.
• Issue at hand is whether services by
way of jobwork for conversion of
barley into malt attracts GST at 5%
prescribed for "job work in relation to
all food and food products falling
under Chapter 1 to 22 of the customs
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scope of entry no.
26(1)(f) vide
notification no.
11/2017-CT(R)
dated 28.06.2017
and thus attracts
GST @ 5%. In the
event it is held that
GST @18% is
leviable, to
regularize for the
past on as is basis
as they are not in a
position to collect
differential duty
from their
customers and will
lead to closure of
the units
● Job work practice in the malt
manufacturing industry is to
receive raw material barley
from principal and
manufacture into malt, thus
providing job work services
to convert barley into malt.
● Malt is used for various
purposes. Apart from being
used as raw material by
brewing and distilling
industry, malt is utilized in
production of chocolate,
breakfast cereal, malted
drinks like Horlicks, Boost,
Milo and cocoa-malt drinks
like Bournvita.
● They are entitled to 5% GST
rate as applicable to services
by way of job work in
relation to all food and food
products falling under
Chapters 1 to 22.
tariff" or at rate of 18% prescribed for
"services by way of job work in
relation to manufacture of alcoholic
liquor for human consumption.
• The process of malting barley involves
three main steps. The first is soaking
the barley - also known as steeping -
to awaken the dormant grain. Next,
the grain is allowed to germinate and
sprout. Finally, heating or kilning the
barley produces its final color and
flavor.
• In the Fitment Committee meeting
held on 29.05.2023 , West Bengal
raised some concerns in relation to the
instant issue and requested for time to
present its views after due
consultation.
• Fitment Committee recommended to
defer the issue.
6. To apply uniform
GST rate of 5% on
Business
Correspondent
services provided in
both rural/urban
areas.
• Presently, 18% GST is
applicable on the entire chain
of banking services
irrespective of the fact that
services are being offered by
the banking company or their
banking correspondent (BC).
With regard to the GST
applicable on the service
provided by Banking
Correspondents, DoR vide its
Notification/ Circulars has
inter-alia notified the
following:
• Notification No. 12/2017
dated 28.6.2017 and Circular
No. 86/5/2019-GST dated
1.1.2018 reads as follows:
“(i) Exemption of GST on
services provided by business
• Services supplied by Business
Correspondent/ Business Facilitator
(BC/BF) attract 18% GST as per entry
15(vii) of notification No. 11/2017
CTR dated 28.06.2017.
• Further, Sl. No. 39 of notification No.
12/2017- CTR dated 28.06.2017
provides a specific exemption for
services provided by BC/BF to
banking companies in respect of rural
area branches. The said entry reads as
below:
Services by the following persons in
respective capacities –
(a) business facilitator or a business
correspondent to a banking company with
respect to accounts in its rural area
branch;
(b) any person as an intermediary to a
business facilitator or a business
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facilitator or a BC to a banking
company with respect to the
account in its rural areal
branch. The procedure for
classification of branch of a
bank as located in rural area
and the services which can be
provided by BC is governed by
RBI guidelines.
(ii) Notification No. 28/2018-
Central Tax (Rate) dated
31.12.2018: Services provided
by banking company to Basic
saving Bank Deposit (BSBD)
account holders under Pradhan
Mantri Jan Dhan Yojana
(PMJDY) are exempted from
GST.”
• Under the present
notification, there are
difficulties in availing the
benefit of GST exemption as
Indian Financial System
Code (IFSC) does not
distinguish rural accounts.
As a result, the waiver goes
unutilized as banks and
BCs/CSPs pay up on all
remittances to avoid any
compliance wrangle.
• In recent years, financial
inclusion and Digital
Banking Service have
increased rapidly in the
country specially in the rural
areas. Banking
Correspondents have proved
to be tried and tested model
and contributed immensely
in door step delivery of
various banking services
including DBT transfer.
• In view of the crucial role
being played by BCs. GST
correspondent with respect to services
mentioned in entry (a); or
(c) business facilitator or a business
correspondent to an insurance company
in a rural area.
• The matter was deliberated in the
Fitment Committee. During the
meeting, it was felt that to further
examine the issue, difficulties faced
by banks in availing benefit of GST
exemptions with respect to business
correspondents/business facilitators in
rural area needs to be ascertained
more comprehensively. Further, some
more data is required from
Department of Financial Services
regarding services provided by BC/BF
in urban areas. Thus, this issue was
deferred accordingly.
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council may consider to
apply a uniform 5% GST
rate to all banking services
offered at BC Agent outlets,
irrespective of whether they
pertain to accounts from
rural/urban areas or PMJDY
as the BC Agent services are
majorly used by the poorer
strata of the society.
****
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Agenda Item 5: The Second Report of the Group of Ministers (GoM) on Casinos, Race
Courses and Online Gaming
The GST Council, in its 42nd Meeting, held on 5th and 12th October 2020, decided that a
Group of Ministers (GoM) may be constituted to look into the issues related to taxation on
casinos, horse racing and online gaming.
2. Accordingly, a Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming
was constituted vide OM dated 24.05.2021. In the 45th meeting of the GST Council, held on the
17th September, 2021, the Council was of the view that the said GoM may examine all issues,
including rates on online gaming, horse racing and casinos. On 10th February 2022, GoM has
been reconstituted with Shri. Conrad Sangma, Hon’ble Chief Minister of Meghalaya as the
Convener of GoM with the same Terms of Reference. The GoM comprises of Ministers from
Maharashtra, West Bengal, Gujarat, Goa, Tamil Nadu, Uttar Pradesh and Telangana.
3. The GoM submitted its first report in June, 2022 and it was placed before the GST
Council in its 47th meeting held on 28th and 29th June, 2022. In the first report, the GoM had
recommended as below:
• GST on the activities, namely, casinos, race courses, online gaming and lottery should be
uniform, i.e., @ 28% and on the full value of the consideration paid [contest entry fee/
bets pooled/ coins purchased etc.].
• No distinction should be made for the purpose of levy of GST, merely on the ground that
an activity is a game of skill or of chance or both.
• In case of casinos, once GST is levied on purchase of chips/coins (on face value), no
further GST should apply on the value of bets placed in each round of betting including
those played with winnings of previous rounds.
• GST @ 28 % be levied on the services by way of access/entry to Casinos on payment of
consideration/entry fee which compulsorily includes price of one or more other supplies
such as food, beverages etc.; this being a mixed supply. However, optional supplies made
independently of the entry ticket shall be taxed at the rates as applicable on such supplies.
4. In the 47th GST Council meeting, Hon’ble Minister from Goa raised certain reservations
on the report of the GoM. On the suggestion of few other states to revisit the report on the whole,
it was decided by the GST Council that the GoM may relook into all the issues in the light of
submissions placed before it.
5. Following the decision of the GST Council, the GoM conducted three detailed meetings
on 12.07.2022, 05.09.2022 and 22.11.2022. GoM members also conducted field visits to
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Bangalore Turf Club and casinos at Goa on 23rd and 24th July, 2022 and met with the trade and
associations during the field visits.
6. The deliberations of GoM post submission of its report in the 47th GST Council meeting
mainly revolved around two questions, whether the activities of race course and online gaming
amount to betting and gambling or not in the light of various High Court and Supreme Court
judgments and how should the supplies of casinos, race courses and online gaming be valued; on
the full-face value of bets placed or on GGR in case of casinos, totalisator fee in race courses and
platform fee/GGR in the case of online gaming. However, no consensus could be reached on the
above issues. The views of members of GoM on these issues in brief were as below:
• As regards rate of tax on the activities in question, namely, casinos, race courses and
online gaming, there was general agreement that they may be taxed at 28%. However,
Goa expressed the view that online gaming may be taxed at 18%.
• As regards value, –
° West Bengal and Uttar Pradesh expressed the view that all the three activities may be
taxed on the full face value of the consideration paid.
° Maharashtra also expressed the view that these activities are fully taxable. There
should also be no differentiation in taxation on the basis of whether the activities are
games of skill or chance and the valuation rules should reflect the same. However,
suitable abatement may be provided for the purposes of determination of taxable value
of supply of actionable claim.
° Telangana stated that if an activity constitutes betting and gambling, it should be taxed
on the full face value as recommended by the GoM in its first report. Where the
activities do not constitute betting and gambling, it may be taxed according to the
existing provisions.
° Tamil Nadu also stated that if an activity constitutes betting and gambling, it should be
taxed on the full face value as recommended by the GoM in its first report. If horseracing and online gaming are games of skill and not actionable claims of betting and
gambling, for taxing them on Gross Gaming Revenue (GGR), the mechanism of
‘escrow account’ and ‘operator account’ to distinguish between contribution to prize
money and platform fees/service charge should be adopted.
° Goa stated that casinos may be taxed on Gross Gaming Revenue [GGR/ margin] and
online gaming may be taxed on platform fees.
° Gujarat stated that online gaming may be taxed on platform fees.
° Meghalaya expressed the view that casinos may be taxed on GGR. As regards online
gaming and horse racing, the sum of money retained by the Online Gaming Operator
or the Racing Club is not part of the actionable claim, hence can be taxed at the rate
recommended by the GST Council as supply of services. The amount apart from the
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retained money as mentioned above is the amount of actionable claim and can be
taxed only if it is excluded from the purview of Serial no. 6 of schedule III of Section
7 of the CGST/SGST Acts, i.e., actionable claims can be taxed under GST only if they
pertain to lottery, betting, and gambling.
7. The GoM has recommended that since no consensus could be reached on whether the
activities of online gaming, horse racing and casinos should be taxed at 28% on the full-face
value of bets placed or on the GGR, the GST Council may decide.
8. The Second Report of the Group of Ministers (GoM) on Casinos, Race Courses and
Online Gaming is annexed separately as a booklet for consideration of the Council.

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Agenda item 6: Recommendations of the 18th and 19th meetings of the IT Grievance Redressal
Committee for approval/decision of the GST Council:
(a) Recommendations of the 18th meeting of the IT Grievance Redressal Committee:
The 18th meeting of the IT Grievance Redressal Committee (ITGRC) was held on 08th February, 2023 at
02.30 PM in online mode to resolve the grievances of the taxpayers arising out of the technical problems
faced by them on the GSTN portal in relation to GST Compliance filings.
The agenda for the 18th ITGRC meeting covered the following issues:
1. Technical Issues requiring data fixes through back-end utilities
2. Any other agenda with the permission of the chair
2. Recommendations of ITGRC on Data Fix issues:
As per the SOP approved in the 45th GST Council meeting for Technical issues requiring data fix of the
processed incorrect data through backend utilities, GSTN presented fifteen (15) issues which required
data fixes in the 18th meeting of the ITGRC.
2.1 ITGRC took note of the data fixes in 9 issues impacting 592 cases which were of Category-1 as per
the SOP (Technical issues with no financial implication where correct data is known) on the basis of
technical analysis done by the GSTN.
2.2 ITGRC also took note of the data fixes carried out by GSTN in 2 issues (Reversal of late fee in forms
GSTR-5 & 6) of Category-2 as per the SOP (Technical issues where there are financial implications and
the correct data is known) wherein an amount of Rs. 33,700/- has been refunded. The third issue was for
waiver of interest for delayed submission of returns due to technical glitches faced by 8 taxpayers in the
State of West Bengal. Based on the technical analysis by the GSTN, ITGRC took note of the data fixes by
the GSTN and decided to recommend the case for waiver of interest to the GST Council in 5 cases. The
amount involved in the 5 cases is Rs. 7,60,77,971/-.

2.3.1 Of the 3 Court cases, one pertained to changing the effective date of cancellation of registration as
directed by the Hon’ble HC of Delhi. Data fix in this case has been approved by ITGRC.
2.3.2 The second court case pertained to a taxpayer who did not receive log in credentials and therefore
could not complete subsequent compliance requirements including return filing. ITGRC approved the
migration of registration along with recommendations to GST Council for waiver of late fee and interest.
2.3.3 The third case pertained to requests received from various States to enable Appellate authority to
restore APL 01 where Appeal orders have been remanded back by High Courts. GSTN informed that the
remand back functionality is still under development, therefore, the disposed appeal order has to be given
reset from the status of “Appeal disposed” to “Appeal Submitted”. ITGRC agreed with proposal.
The GST Council may approve the recommendations of the ITGRC and the data fixes carried out by
GSTN as mentioned in Para 2 above and the attached Minutes of the 18th meeting of the ITGRC.
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Minutes of the 18th Meeting of the IT Grievance Redressal Committee (ITGRC) held on 08.02.2023
The 18th meeting of the IT Grievance Redressal Committee (ITGRC) was held in online mode
over WebEx platform on 08th February, 2023 at 02.30 PM. The list of officers who attended the meeting
is attached as Annexure-1. The agenda and annexure to agenda circulated for the meeting is at
Annexure-2.
2. Joint Secretary, GST Council Secretariat, welcomed all the members and informed that in the 15
th
ITGRC meeting, a SOP on the mechanism to fix various technical glitches by the GSTN was devised and
approved by the GST Council in its 45th meeting. She also informed that data fixes having global financial
implications where correct data was not known needed prior approval of the ITGRC whereas data fixes
which had local implications would be fixed by GSTN and after data fixes were carried out, the same
would be placed before the ITGRC. Data fixes for technical issues having no financial implications were
also carried out after taking internal approval within GSTN and were being placed before the ITGRC for
perusal. She gave a brief introduction that the agenda shared by GSTN related to data fixes includes nine
(09) cases having technical issues with no financial implication where correct data was known with
certainty and three (03) cases having technical issues having local implications and the correct data was
also known. In addition to the two categories above, GSTN had also shared three (03) court cases for
consideration of the ITGRC. Thereafter Joint Secretary, GST Council Secretariat informed that Shri
Dheeraj Rastogi, EVP, GSTN and Shri Nirmal Kumar, EVP, GSTN would be covering the agenda in
detail. She then invited Shri Shashank Priya, Member, GST, CBIC to give his opening remarks.
3. Shri Shashank Priya, Chairman, ITGRC, thanked everyone for joining in the meeting and
expressed his pleasure at working closely with all the members of ITGRC of the Central as well State
Governments. He invited EVP, GSTN to proceed with the agenda.
4. Sh. Dheeraj Rastogi, Executive Vice President, GSTN stated that as informed by JS, GSTCS,
GSTN has brought twelve issues of technical glitches before ITGRC for which GSTN had to carry out
data fixes.
5. Chairman, ITGRC agreed to the suggestion to first discuss those cases which required more
analysis.
6. Sh. Dheeraj Rastogi, EVP, GSTN then proceeded with the presentation (Annexure-3)
andpresented three court cases.
6(a) Court Cases:
S.
No.
Issue reported No. of Cases
Impacted
Module Detail Description Status
1 Rectification of effective date of
cancellation
M/s Outpace Marketing (GSTIN
07AAFFO8689N1Z9) had applied
for cancellation of registration on
23.3.2021 and erroneously entered
1 Registration.
Form GST REG19
Through letter recd. from
Additional Commissioner,
CGST, East Delhi, it was
informed that
jurisdictional Officer has
approved the rectification
of effective date of
Work in
Progress.
Agenda for 50th GSTCM Volume 1
Page 280 of 394
the effective date of cancellation
as 20.3.2020 instead of 20.3.2021
as informed by the officer.
cancellation from 20.3.20
to 20.3.21 to be done.
This has been approved by
Commissioner.
The Commissioner has
requested GSTN to rectify
the effective date of
Cancellation as per
Hon`ble High Court of
Delhi direction.
Discussion and decision:
This particular case was regarding rectification of effective date of cancellation. The GSTN informed that
they had created an SDM program, the completion of which would take some time from the backend.
Decision: ITGRC approved the data fix done by the GSTN.
S.
No.
Issue reported No. of Cases
Impacted
Module Detail Description Status
2 M/s Swapnadip Enterprises had
not received the Login credentials
of the GST Portal for Provisional
ID19AEAPG7710H1ZP.On
account of non-receipt of Login
credentials, the subsequent
compliances including return
filing were not completed by the
taxpayer.
The Hon’ble Calcutta High Court
directed GSTN to examine the
issue. GSTN vide letter dated
24.11.2021 has stated that they are
not the appropriate authority to
pass any order as it is an
implementing agency and has no
adjudicating powers and the
matter was referred to proper
officer to examine the issue. Basis
that Nodal Officer for Kolkata
CGST Zone has submitted the
matter before ITGRC to consider
taxpayer’s request for activating
1 Registration Points for ITGRC
consideration:
On account of non-receipt
of Login credentials, the
subsequent compliances
including return filing
were not completed by the
taxpayer
The recommendation
received from Nodal
Officer, Kolkata CGST
Zone, is to activate the
GSTIN
19AEAPG7710H1ZP
w.e.f. 1st July, 2017 and
provide login credentials
for the said GSTIN to the
petitioner.
However, technically, this
is not possible on the
ITGRC to
deliberate on
this issue
Agenda for 50th GSTCM Volume 1
Page 281 of 394
the GSTIN and providing login
credentials.
system as he has not
completed his enrolment
form at the time of
migration as per our
database. Therefore,
system does not allow to
generate registration
number directly in this
case.
Provisional GSTIN cannot
be activated from backend
as enrollment application
form is not live anymore
and also data is not
available for such taxpayers
in our master tables and
cache which was supposed
to be provided by such
taxpayers as a part of
migration. Therefore, such
taxpayer can't be activated
with same number. Hence,
as per the parallel approved
process, taxpayer can be
advised to take new
registration on the same
PAN and post approval and
allocation of new GSTIN, it
can be swapped with old
GSTIN.
Hence, the taxpayer needs
to apply for new GST
Registration under Form
GST REG-01 on the portal
and accordingly registration
will be granted w.e.f.
01.07.2017.
As recommended by Nodal
Officer, Kolkata CGST
Zone to enable furnishing
of GSTR-1 and GSTR-3B
by the Taxpayer w.e.f. 1st
July, 2017, inputs are
required on the following:
Agenda for 50th GSTCM Volume 1
Page 282 of 394
a) If he files all the
pending returns, whether
reversal of late fee and
waiver of interest shall be
permitted?
b) Whether he can
avail input tax credit?
c) Whether he can
file TRAN-1, if required?
Discussion and decision:
This case was of M/s Swapnadip Enterprises where the assessee could not migrate to GSTN as he did not
receive the login credentials. Then he approached the Hon’ble High Court which ordered GSTN to
examine his case. GSTN clarified through a speaking order that only the jurisdictional authority might
pass order as to the admissibility and GSTN had no authority as it was only a data keeping authority. The
nodal officer examined the case and recommended that the case should be allowed to migrate.
Sh. Dheeraj Rastogi informed that on migration of the registration, the taxpayer would need to be given
facility to file returns for the past period and the issue of filing TRAN-I might also arise. The financial
implications of the case might extend to the availment of input tax credit and filing of Tran-I apart from
the reversal of late fee and waiver of interest for late filing of returns.
Representative from Tamil Nadu enquired whether the action required the waiver of interest and late fee.
EVP, GSTN informed that the waiver of late fee and interest would be required as the return filing would
be of the past periods.
Responding to the enquiry from Chairman, EVP GSTN explained that mandate of ITGRC was to
examine whether there existed a technical error and give suitable recommendations to the Council. That
in the past also, the ITGRC had recommended for waiver of late fee and interest consequent upon analysis
of the GSTN that a technical glitch/error had occurred in the system.
The Chairman stated that since there was a communication gap and that since in the past too ITGRC had
allowed waiver of interest and late fee in migration cases therefore, in this case also, ITGRC may approve
migration of registration along with waiver of late fee and interest. However, filing of TRAN-I might not
be considered at this stage.
Pr CC, Delhi Zone enquired whether the ITGRC had the power to waive the interest.
EVP, GSTN clarified that since the taxpayer could not even login and since there was a communication
gap, waiver of both late fee and interest should be allowed. He also clarified that in the past also such
waiver of late fee and interest were considered and recommended to the GST Council which were
approved by the Council. Subsequently, GST Policy Wing had notified waiver of late fee and interest in
relation to specific GSTINs.
Agenda for 50th GSTCM Volume 1
Page 283 of 394
Chairman, ITGRC stated that ITGRC could recommend the waiver of interest and late fee and
appreciated Pr CC, Delhi Zone for bringing out the issue related to authority of ITGRC regarding waiver
of interest and directed that GSTN might calculate the quantum of late fee and the jurisdictional officer
might calculate the interest after enquiry from the assessee.
Representative from Gujarat suggested that there might be such other cases also and therefore proposed
that the ITGRC could seek a general power for ITGRC from GST Council to waive such late fee and
interest.
Chairman, ITGRC stated that since more than five years have elapsed since implementation of GST, such
cases might be few and far between and therefore such general power need not be sought and ITGRC
could limit itself to examination of particular cases brought before it.
Decision: The ITGRC agreed with the proposal and approved the migration of the registration along with
recommendations to GSTC for waiver of late fee and interest.
GSTN Comments: GSTN has requested JC, PCCO, Kolkata Zone to calculate the interest and late fee
and it will be shared with GST Council Secretariat.
S.
No.
Issue reported No. of Cases
Impacted
Module Detail Description Status
3 Reverting APL 01 to submitted
status as APL 04/02 has been
remanded back by Hon`ble High
Courts
48 Appeal APL 01 Requests have been
received from various
states to enable Appellate
authority to restore APL
01 where either Appeal
orders APL 04 or APL 02
have been remanded back
by High Courts of
different States.
Functionality is not
available for remand back
to Appellate authority.
The remand back
functionality is still under
development, therefore,
the disposed appeal order
has to be given reset from
the status of “Appeal
disposed” to “Appeal
Submitted”.
Data fix
provided and the
Appeal
application
ARNs were
restored to
“Appeal
Submission”
stage.
Discussion and decision:
Agenda for 50th GSTCM Volume 1
Page 284 of 394
EVP, GSTN then presented the third court case which involved restoring of submitted status to APL
04/02 Appeal Orders which have been remanded back by the High Court in 48 cases.
He further clarified that functionality for remand back to Appellate authorities was under development
and might take about 2-3 months to be functional.
Chairman, ITGRC stated that the proposal could be accepted and the appeal order could be reset to
Appeal Submitted till development of the functionality.
Decision: ITGRC agreed with proposal.
6(b). Thereafter, EVP, GSTN explained three cases where there were technical issues affecting locally
with financial implications and where the correct data was known.
The details of the cases are mentioned as follows:
S.
No.
Issue reported No. of
Cases
Impacte
d
Modul
e
Detail Description Status
1 Reversal of late fee in
GSTR-6 form.
Input Service Distributor
(ISD) was unable to file
GSTR-6 form on the GST
portal due to error “Error!
System Failure” displayed
on the portal for the tax
period August 2022.
1 GSTR6
ISD was unable to file return in
form GSTR6 by due date, for the
tax period August 2022, due to
the error “Error! System Failure”
displayed on the portal.
Due to delayed filing of return
the ISD had paid late fee.
It had happened due to breakage
in internal communication of the
APIs on the GST portal.

Total late fee recredited to the
ISD = Rs. 850 /- (CGST = Rs.
425 /- and SGST = Rs. 425 /-)
Issue is fixed
Discussion and Decision:
EVP, GSTN sharing the details as mentioned above informed that this was a rare scenario and as it was a
technical issue, GSTN had fixed the data through data fixes and re-credited the late fee but not the
interest.
Chairman ITGRC enquired EVP whether GSTN had done such data fixes cases earlier also.
Agenda for 50th GSTCM Volume 1
Page 285 of 394
EVP, GSTN replied in affirmative and informed that in certain cases in the past also GSTN had recredited the late fee, however, interest was not re-credited.
Decision: ITGRC took note of the data fixes done by the GSTN.
S.
No.
Issue reported No. of
Cases
Impac
ted
Module Detail Description Status
2 Reversal of late fee in GSTR-5
form.
Non Resident Taxable Person were
getting error “double amount of the
actual amount while creating
challan through liability offset
window” while filing GSTR-5
form.
5 GSTR-5 There was the Computation issue in
column 5 (other than Reverse Charge)
and additional cash required, as there
was a mapping issue in configuration
files (payment file and
computation/calculation in GSTR5
file).
Due to the above mapping issue in
configuration file, there was a delay in
providing the correct resolution to the
taxpayers and they were unable to file
GSTR5 form within due date, hence
late fee was charged to the taxpayers.
Total late fee paid by five taxpayers =
Rs. 32850/-CGST=Rs. 16425/- and
SGST= Rs. 16425/- and the same has
been refunded.
Issue was
fixed on 29
th
Sep 2022 in
production.
These are the
cases raised
by taxpayers
prior to the
fix deployed
in
production.
Discussion and Decision:
Chairman ITGRC enquired whether taxpayers came to know about the double charge on their own or
whether the same was found out by GSTN. EVP, GSTN replied that taxpayers logged the tickets at GSTN
portal themselves raising the issue.
Decision: ITGRC took note of the data fixes done by the GSTN.
3.
S.
No.
Issue reported No. of
Cases
Impact
ed
Module Detail Description Status
Agenda for 50th GSTCM Volume 1
Page 286 of 394
3. Seeking waiver of interest for
delayed submission of returns by
Return Tax Preparer due to
technical glitches in the state of
West Bengal
10* GSTR3
B
This issue is forwarded by the State
of West Bengal. The total amount of
Interest paid by them is Rs.
78103752.13/-.
Issue is being
analyzed.

Agenda for 50th GSTCM Volume 1
Page 287 of 394
*ITGRC discussed 8 cases as one case was reported duplicate and one case was withdrawn
by West Bengal.
EVP, GSTN informed that that issue comprised of ten (10) cases and all of them were received from West
Bengal. However, one case was a duplicate one and one was withdrawn by West Bengal. The details of
the eight cases are:
i.
S.
No.
ID
Name of
Organiza
tion
Return
Period
For
m
Fil
ed
on
Inter
est
paid
by
Taxp
ayer
?
Any ticket
raised by
User for
not able to
file the
form?
Interest
to be
paid as
per the
Tax
Officer
Technical Analysis
1
19AAACI
1681G1Z
M
Indian Oil
Corporati
on
Limited
Jun-18
09-
12-
201
8
No
Ticket No.
-
GA190718
0010639)
dated
23.07.2018
Rs.
6,33,78,5
29/-
1. Credited Electronic Cash
Ledger on 20.07.2018 for
payment of GST of Rs.
90,50,48,103 /- vide Challan
(CPIN) No. 18071900238178
& 18071900238204.
2. The taxpayer had filed but
the ledger entries were NIL.
3.There was technical issue
where the taxpayer Opened
GSTR3B in multiple
browser. This issue existed
has been fixed in January
2021.
4. This technical glitch has
been found to be correct.
Discussion and decision:
EVP, GSTN informed that the taxpayer had opened multiple web browsers and in one of the opened
browser, taxpayer filled the return but did not save that. Meanwhile, the taxpayer opened another browser
and submitted the return resulting into NIL return filing. However, the taxes were paid on time by the
taxpayer in the cash ledger.
Chairman ITGRC enquired when the taxes were paid on time then why the interest was levied.
EVP, GSTN informed that as that was a technical issue, return was reset by GSTN and when the taxpayer
re-filled the correct return, State of West Bengal levied the interest for late filing of the return. However,
interest was not paid by the taxpayer.
Agenda for 50th GSTCM Volume 1
Page 288 of 394
Chairman ITGRC further enquired whether the issue in question was only of interest or the late fee also.
EVP, GSTN informed in affirmative and said that late fee appeared to be nominal while the interest part
was a large amount.
Representative from West Bengal also suggested that as that was a technical glitch and the tax was
deposited in the cash ledger, the burden of interest should be waived off.
EVP, GSTN further informed that in the past also, cases where the return was filed late due to technical
glitch but the tax was paid by the due date, in such cases, GST Council had approved the waiver of
interest.
Decision: Based on the findings of the GSTN and relying upon the past similar cases, ITGRC
recommended that the case be put up before the GST Council for waiver of interest.
ii.
S.
No.
ID Name of
Organization
Return
Period
Form
Filed
on
Inter
est
paid
by
Taxp
ayer?
Any
ticket
raised by
User for
not able
to file the
form?
Interes
t to be
paid as
per the
Tax
Officer
Technical Analysis
2
19AA
BCB5
984E
1ZI
Bengal
Beverages Pvt.
Ltd
Mar-18
21-
04-
2018
No No
Rs.
41685/-
1. The taxpayer had electronic
cash ledger was credited on 21st
April 2018 whereas the taxpayer
had deposited on 20th April 2018.
(SBI)
2. No technical glitch has been
found in this case. Its delayed
reporting from the bank.
Discussion and decision:
EVP, GSTN informed that in this case the taxpayer had deposited cash in the State Bank of India on 20
th
April,2018 but the bank informed the same to the GSTN portal on 21st April,2018 which led to the one
day delay. So, in this particular case, no technical glitch had been found in the GSTN system and that was
only a delayed reporting by the bank.
Chairman ITGRC enquired whether there were such cases earlier also.
EVP, GSTN informed that such cases were rare.
Pr. Chief Commissioner, CGST, Delhi Zone submitted that in the past there were a lot of cases on the
similar issues which occurred on a regular basis where banks did not credit on the due date. Then she
submitted that if ITGRC referred that particular case to the GST Council for waiver of interest, then there
would be a lot of cases which might be in the pipeline where such a waiver might be sought.
Agenda for 50th GSTCM Volume 1
Page 289 of 394
EVP, GSTN informed that generally such cases were not reported in the past ITGRC meetings since there
was no technical glitch on the GSTN portal.
Chairman ITGRC stated that ITGRC was meant to address glitches on the GSTN and that in this case,
there was no glitch in the portal as reported by GSTN and suggested that the same could not be
recommended to the GST Council as it was out of the ambit of ITGRC.
Member from Tamil Nadu enquired whether the amount paid by the taxpayer on 20th April, 2018 was
available in the cash ledger on 20th April.
GSTN informed that the taxpayer had paid the amount on 20th April, 2018 and the bank retained the
amount on that particular day and remitted to the RBI on 21st April, 2018 hence, the cash ledger was
credited on 21st April, 2018. Therefore, it came one day late into the accounts of the Government.
Decision: In view of the above, ITGRC rejected the case on the ground that there was no technical glitch
in the portal.
iii.
S.
No.
ID Name of
Organization
Return
Period
Form
Filed
on
Interes
t paid
by
Taxpa
yer?
Any
ticket
raised
by User
for not
able to
file the
form?
Interest to
be paid as
per the
Tax
Officer
Technical
Analysis
3
19AABC
B5984E1
ZI
Bengal
Beverages Pvt.
Ltd
Mar-20 18-05-
2020 No NO Rs.
75,564/-
This issue is due to
outbreak of COVID
,due to unavailability
of Digital signature ,
it led to delayed
filing. Electronic
Cash Ledger credited
on 20th April
2020.This is not a
technical issue.
2. The EVC for all
taxpayers facility was
deployed on 20th
April 2020 for GST
Portal and later
provided for APIs on
12th Nov 2020.
Discussion and decision:
EVP, GSTN informed that this was not a case of technical glitch as the return could not be filed due to
unavailability of digital signature.
Agenda for 50th GSTCM Volume 1
Page 290 of 394
Decision: ITGRC took note of the data analyzed by the GSTN and rejected the case for waiver of interest.
iv.
S.
No. ID
Name of
Organiz
ation
Return
Period
Form
Filed
on
Interest
paid by
Taxpaye
r?
Any
ticket
raised
by User
for not
able to
file the
form?
Interest
to be
paid.as
per the
Tax
Officer
Technical Analysis
4
19AA
ACW
2192
G1Z8
Wacker
Metroark
Chemical
s Pvt. Ltd
Oct-18
07-
12-
2018
No
Ticket
No2018120
5441766
8
Rs.
38560.08
1. Credited electronic cash ledger
on 16.11.2018 and 19.11.2018 for
payment of GST under Reverse
Charge and Forward Charge of Rs.
18,42,449.00 and 29,01,760.00
respectively vide Challan (CPIN)
No 18111900105454 and
18111900161310.
2. The taxpayer is getting error "
Something seems to have gone
wrong while processing your
request. Please try again. If error
persists quote error number GSTNEXEC1003 when you contact
customer care for quick
resolution”
3. The data for the GSTIN could
not be found in cache and was later
updated in the Redis cache.
4. This technical glitch has been
found to be correct.
Discussion and decision:
EVP, GSTN informed that this was a case of technical nature due to coding issue and other data issues
during the year 2018 and many taxpayers had similar issues which were rectified later.
Decision: Based on the technical analysis by the GSTN, ITGRC took note of the data fix by the GSTN
and decided to recommend the case for waiver of interest to the GST Council.

Agenda for 50th GSTCM Volume 1
Page 291 of 394
v.
S.
No.
ID Name of
Organization
Return
Period
Form
Filed
on
Inter
est
paid
by
Taxp
ayer?
Any ticket
raised by
User for not
able to file
the form?
Interest to
be paid as
per the
Tax
Officer
Technical Analysis
5
19AA
DFH6
125N
1Z2
HABCON
ENGINEERS Apr-18
09-
09-
2019
No No Rs.
61303/-
1. The taxpayer had
filed GSTR3B on
19.05.2018 as it was
filed incorrectly.
2. The GSTR3B
form was reset on
9.9.2019.
3. As the GSTR3B
form was reset, it
may be considered
as a case of
technical glitch.
Discussion and decision:
Chairman ITGRC enquired why the request of resetting the return was made when the taxpayer had an
option to rectify the same in the subsequent return and whether the same was due to some technical
glitches.
Representative from West Bengal informed that they did not have the information with them at present
and would update the ITGRC later.
Chairman ITGRC stated that it did not seem to be a case of technical nature and same should not be
recommended for waiver of interest to the GST Council.
Pr. Chief Commissioner, CGST Delhi and Member from Tamil Nadu also supported the view of
Chairman.
Decision: The ITGRC rejected the case.

Agenda for 50th GSTCM Volume 1
Page 292 of 394
vi.
S.
No. ID
Name of
Organizatio
n
Return
Period
Form
Filed
on
Interes
t paid
by
Taxpa
yer?
Any
ticket
raised
by
User
for not
able to
file the
form?
Interest to be
paid as per
the Tax
Officer
Technical Analysis
6
19AAB
CD772
0L1ZF
FRESENIU
S KABI
ONCOLOG
Y LTD
Jul-17
28-
08-
2017
No No Rs. 21541.25
1. The claim made by
the taxpayer that the
portal was giving
error "CGST credit
needs to be
completely utilised
before cross
utilisation of SGST
credit against IGST
tax liability" is correct
as his CGST Balance
of 48 paisa in his
credit ledger as
reported by taxpayer
on 26th August 2017.
2. There was defect in
TRAN1 where entries
in paisa was made in
the ITC ledger after
filing and the
taxpayer has filed
TRAN1 on 25th Aug
2017.
3. The taxpayer has
paid IGST of Rs 1,
53,871 on 28th Aug
2017 and filed
GSTR3B for July
2017.
3. The claim of the
taxpayer is correct
that this error was
being shown to the
taxpayer.
Discussion and decision:
EVP, GSTN informed that there was a technical issue in that case due to which the taxpayer was facing
problem.
Agenda for 50th GSTCM Volume 1
Page 293 of 394
Decision: ITGRC took note of the data analyzed by the GSTN and decided to recommend for waiver of
interest in this case.
vii.
S.
N
o.
ID
Name of
Organizat
ion
Return
Period
Form
Filed on
Inter
est
paid
by
Taxp
ayer?
Any
ticket
raised
by User
for not
able to
file the
form?
Interest to be
paid as per the
Tax Officer
Technical
Analysis
7
19AA
BCD7
720L
1ZF
FRESENI
US KABI
ONCOLO
GY LTD
Aug-17 17-10-
2017 No NO Rs. 4,73,792.72
1. In the initial
launch of
GSTR3B , at the
time of Submit,
if a exception is
not handled , the
record would get
stuck. The
solution was to
reset, so that the
taxpayer can
Submit again.
2. The claim
made by the
taxpayer
regarding
technical glitch
is correct.
Discussion and decision:
EVP, GSTN informed that there was a technical issue in this case due to which the taxpayer was facing
problem.
Chairman ITGRC enquired why the issue of 2017 was being raised now after a period of more than five
years.
EVP, GSTN informed that they had received a representation from the taxpayer consequent upon demand
of interest by Government of West Bengal.
Decision: ITGRC took note of the data fix done by the GSTN and decided to recommend for waiver of
interest.

Agenda for 50th GSTCM Volume 1
Page 294 of 394
viii.
S.
No.
ID
Name of
Organiz
ation
Return
Period
Form
Filed on
Inter
est
paid
by
Taxp
ayer?
Any
ticket
raised
by User
for not
able to
file the
form?
Interest
to be
paid as
per the
Tax
Officer
Technical Analysis
8
19AAE
CS6573
R1ZC
SAI
SULPH
ONATE
S PVT.
LTD
July'17 to
Feb'18
July 17-
2018-04-
02
No NO
Rs.
1,21,65,5
48/-
1. There was technical
glitch in TRAN1 form
due to coding defect.
Instead of declaring the
variable as a local
variable, it was declared
as global variable.
2. Any taxpayer who
would distribute the
credit to other states on
the same PAN, the data
posted in the ITC ledger
was found to be
incorrect.
3. This issue was
corrected on 8th Dec
2017 and finally
corrected on 2nd April
2018.
4. The claim made by
the taxpayer regarding
technical glitch is
correct.

August 17-
2018-04-
02

September
17- 2018-
04-03

October
17- 2018-
04-03

November
17- 2018-
04-06

December
17- 2018-
04-06

January
18- 2018-
04-07
Agenda for 50th GSTCM Volume 1
Page 295 of 394

February
18- 2018-
04-07
Discussion and decision:
EVP, GSTN informed that there was a defect in Tran-1 form due to coding defect which was rectified by
GSTN later. The first correction happened on 8th December, 2017 and finally by 2nd April, 2018, all the
taxpayers’ ledgers were corrected.
Decision: ITGRC took note of the data fixes done by the GSTN and recommended for waiver of interest.
6(c) Thereafter, EVP, GSTN explained the following nine cases where there were technical issues
with no financial implication and where data was known: -
S.
No.
Issue reported No. of
Cases
Impacte
d
Module Detail Description Status
1 2 3 4 5 6
1 Data issue due to partial
reset happened on click of
reset button while filing
GSTR- 3B (RQM:
RET_3B_15222).
1 GSTR-3B It may be recalled that initially,
there was a four-tier system of
filing return in Form GSTR-3B,
viz. Save, Submit, Offset
liability and File. All saved
entries used to become noneditable after clicking on
‘Submit’ button. Liability
register and Credit ledger used
to be updated at submit stage.
In the beginning, lot of
complaints used to be received
due to freezing of entries before
filing (at submit stage). In the
beginning, returns lying at
submit stage were reset from the
backend as lot of complaints
were received on account of
inadvertent mistakes.
Permanent fix is not
required because RESET
button is removed from
system.
These are the cases raised
by taxpayers prior to the
implementation of
RESET button.
2 When Taxpayer was
validating the statement in
Refund, system is giving
error “RF-FCAS1007” and
not allowing to file the
Refund for below two
6 GSTR-1 After analysis we have found
that Meta Data column is not
present in “Invoice Detail” table.
This is because we have noticed
connection errors while inserting
data to Invoice detail table for
It is fixed in production
on 26th April 2022.
These are the cases raised
by taxpayers prior to the
fix deployed in
production.
Agenda for 50th GSTCM Volume 1
Page 296 of 394
mentioned types:
1. Refund on account of ITC
accumulated due to Inverted
Tax Structure
2. On account of supplies
made to SEZ unit/ SEZ
developer (without payment
of tax).
these 4 taxpayers, due to which
invoices went to error.
Description of error code:
RF-FCAS1007: Something
seems to have gone wrong while
processing your request. Please
try again. If error persists quote
error number {0} when you
contact customer care for quick
resolution.
3 Taxpayers were getting
“Data for the internal
Transaction Id Already
Posted” while filing CMP08.
151 CMP-08 For few taxpayers, all ledger
tables were updated successfully
but request status did not change
from “Return To File” to “File”
in Return Filing Status table.
Reason 1- Fixed on 14th
June 2021 via ICR-12663.
Reason2- Work in
Progress.
4 Rectification of rejected
original record for already
accepted amendment record.
Deductor has amended the
original record in favour of
a different deductee, but the
original record was not
deferred which is supposed
to get defer.
1 GSTR-7 The status of Original record
needs to be deferred after it was
amended. But it was not
deferred due to technical glitch.
Issue is fixed
5 Reset of form TRAN-1.
Taxpayers were unable to
file their GSTR3B form as
their TRAN-1 form is stuck
in submitted state.
328 TRAN-1 Taxpayers were unable to file
their GSTR3B form as their
TRAN-1 form is stuck in
submitted state.
Issue is fixed
6 Taxpayer has filed GSTR04 form without clearing the
liability amount.
The taxpayers were getting
error while filing CMP-08
form “'ERROR!! Liability
for previous tax period is
yet to be paid'.
1 CMP-08 Transaction handling was not
proper due to mix of XA/ NonXA transactions in GSTR-4.
Due to this, in case of any
failure rollback was not done
completely from all the
respective data sources.
In this case, filing status has
been updated as Fil in return
filing status table w/o updating
No in column Is Open of Return
Liability Master ledger table
Partially fixed in
production on 14th Jun
2021 via ICR-12663.
Another RCA is Known
issue across the
application. Analysis is
under progress.
Agenda for 50th GSTCM Volume 1
Page 297 of 394
besides the rollback of liability
setoff entries in ledger.
7 Reset of Form GST RFD01C – On request from the
State of Maharashtra.
1 GST
RFD-01C
In Manual refund applications
(Prior to Sep 2019), RFD 01B
was issued by Tax officer for recrediting ITC of the rejected
amount. RFD 01C option was
given to the Tax officer for
rectifying any mistake in RFD
01B. In the present case, the
officer has committed mistake in
RFD 01C also and the nodal
officer of the State has requested
GSTN to reset RFD 01C.
In this case, no credit was given
earlier either in RFD 01B/RFD
01C.
Issue is fixed
8 Taxpayers were unable to
file their further return
period and getting error
message as “Liability for
previous tax period is yet to
be paid”
15 GSTR-4
Annual
The taxpayers were facing
issues in filing any further
returns after filing of GSTR-4
annual form as the offset of
liability has not happened but
the filing has been completely
successfully.
Following amount was debited
from the cash ledger as the same
was not debited at the time of
original filing:
Total Tax = Rs. 44268 /- (CGST
Tax = Rs. 22134 /- and SGST
Tax = Rs. 22134/-)
This issue has been fixed
on 6th Oct 2022 in
production. These are the
cases raised by taxpayers
prior to the fix deployed
in production.
Agenda for 50th GSTCM Volume 1
Page 298 of 394
9 Re- crediting of claimed
amount after issuance of
deficiency memo – Excess
cash ledger balance refund.
88 Refund
Form
GST
RFD-03
The issue pertains to Refund
applications filed under the
Category of refund of Excess
Cash ledger balance. After
issuance of Deficiency memo,
the amount claimed by the
taxpayer has to be re-credited
back to the Taxpayer’s cash
ledger.
The claimed amount was not recredited to the Cash ledger after
issuance of Deficiency memo by
the Tax officer in 88 cases.
The blocked amount of the
taxpayer i.e., Rs 15,769,946/-
(CESS: Rs. 4100/-, CGST: Rs.
6248456/-, SGST: Rs.
6409527/- and IGST: Rs.
3107863/-) will be credited back
to cash ledger.
Issue is fixed for 88 cases.
Work in progress for
permanent code fix.
Discussion and decisions:
ITGRC took note of the data fixes done by the GSTN.
To summarize, 15 issues were presented by GSTN for the consideration of ITGRC, including 3 court
cases.
One of the court cases pertained to changing the effective date of cancellation of registration as directed
by the Hon’ble HC of Delhi. GSTN has informed that the program will take some more time to rectify the
issue from backend. Data fix in this case has been approved by ITGRC.
The second court case pertained to a taxpayer who did not receive log in credentials and therefore could
not complete subsequent compliance requirements including return filing. ITGRC approved the migration
of registration along with recommendations to GST Council for waiver of late fee and interest.
The third case pertained to requests received from various States to enable Appellate authority to restore
APL 01 where Appeal orders have been remanded back by High Courts. GSTN informed that the remand
back functionality is still under development, therefore, the disposed appeal order has to be given reset
from the status of “Appeal disposed” to “Appeal Submitted”. ITGRC agreed with proposal.
Three cases where there were technical issues affecting locally with financial implications and where the
correct data was known were thereafter discussed. 2 of the cases pertained to refund of late fee due to
Agenda for 50th GSTCM Volume 1
Page 299 of 394
delayed filing of Forms GSTR 5 and 6. An amount of Rs. 33,700/- has been refunded. ITGRC has taken
note of the data fixes. The third case was for waiver of interest for delayed submission of returns due to
technical glitches by 8 taxpayers in the State of West Bengal. Based on the technical analysis by the
GSTN, ITGRC took note of the data fixes by the GSTN and decided to recommend the case for waiver of
interest to the GST Council in 5 cases. The amount involved in the 5 cases is Rs. 7,60,77,971/-.
Thereafter, nine issues where there were technical issues with no financial implication and where data
was known were presented by GSTN which involved issues like taxpayers not being able to file returns
due to reasons such TRAN 1 stuck or error message like “liability for previous tax period not paid”.
ITGRC took note of the data fixes in these 592 cases.
Agenda for 50th GSTCM Volume 1
Page 300 of 394
Annexure-1
Centre:
i. Member (GST), CBIC – Sh. ShashankPriya (Chairman, ITGRC)
ii. Pr. Chief Commissioner, CGST, Delhi Zone – Smt. Mallika Arya
iii. Pr. ADG, DG Systems, Chennai – Sh.S.K.Vimalanathan
States:
i. Special Commissioner, State Tax, West Bengal – Smt. BratatiDasgupta
ii. Additional Excise & Taxation Commissioner, Haryana – Sh. Siddharth Jain
iii. Joint Commissioner (IT), State Tax, Tamil Nadu – Sh. Rasal Doss Solomon
iv. Joint Commissioner, State Tax, Gujarat – Sh. Mahesh Jaani
GST Council Secretariat:
i. Additional Secretary, GSTC- Sh. Pankaj Kumar Singh
ii. Joint Secretary, GSTCS- Smt. B. Sumidaa Devi
Special Invitees:
i. Executive Vice President, GSTN- Sh. DheerajRastogi
ii. Executive Vice President, GSTN- Sh. Nirmal Kumar

Agenda for 50th GSTCM Volume 1
Page 301 of 394
Annexure-2
Agenda on Data Fix issues
Technical Issues Requiring Data Fix of the Processed Incorrect Data through Backend
Utilities
The changes in GST law / Rules, the representations received from taxpayers and
other stakeholders require alterations to be continuously made in the GST System. GSTN has
therefore adopted an agile methodology of developing applications for GST System keeping
it modular to handle frequent changes in law and rules incorporated in a running application.
This has necessitated integrating all new application changes downstream being dependent
on the module undergoing the change and led to following concerns:
 Some corner scenarios owing to varying taxpayer actions and system
behaviour, when subjected to heavy load, go unhandled leading to
inconsistent data persisting in GST System.
 The data inconsistencies vary from ledger getting improper debits/credits,
the return details stored in the system having incorrect information relating
to situations where an irreversible commit has happened in the database.
 No option available to taxpayer to seek remedy in GST System leading to a
need of performing data fixes through auditable utilities.
These issues generally have been noticed after
 A complaint is raised by taxpayer/ tax officer
 Result of a periodic internal and external audits.
In order to resolve these issues, the processed incorrect data requires fixing, collecting
correct data besides solving the software/platform issues being faced by respective
stakeholders. Accordingly, GSTN has initiated fixing of technical issues identified, as per the
SOP approved by the ITGRC in the15th meeting held on 12/08/2021, which is as below:
i. Analysis of data discrepancy.
ii. Confirmation of discrepancy sought from MSP.
iii. Upon confirmation, utility to be created by MSP to extract similar cases from
GST System data.
iv. A root cause analysis conducted to fix the issue and implemented by MSP in
consultation with GSTN to rectify data inconsistency.
v. Scripts created for data fix and tested in multiple cycles by MSP and GSTN.
vi. Approval note presented to competent authority to fix the issue.
Agenda for 50th GSTCM Volume 1
Page 302 of 394
vii. After approval, audit entries created for each change affecting the data.
viii. Scripts executed and post execution state of data stored for reference later.
ix. List of all such changes to be presented and explained to GST policy wing &
ITGRC and periodic internal audit also to be undertaken.
Data Fix cases are accordingly presented to ITGRC for deliberations and decision as
mentioned in the attached Annexure.
Annexure
Technical Issues Requiring Data Fixes through Backend Utility (Period -12thNov 2022 to 03
rd Feb
2023)
Cases Requiring Internal Approval of SVP, EVP/CEO or Post facto Approval of ITGRC
S
.
N
o.
Issue reported App
rove
d By
Dat
e of
App
rova
l
No.
of
Cas
es
Imp
acte
d
Fi
na
nci
al
Im
pli
cat
io
n
Mod
ule Corre
ct
Data
Know
n /
Not
Know
n
Detail Description Status
1 2 3 4 5 6 7 8 9 10
Cases having no financial implications
1 Data issue due to partial
reset happened on click of
reset button while filing
GSTR- 3B (RQM:
RET_3B_15222).
EVP
(Serv
ices)
25-
01-
202
3
1 No GST
R-3B
Know
n
It may be recalled that
initially, there was a
four-tier system of
filing return in Form
GSTR-3B, viz. Save,
Submit, Offset liability
and File. All saved
entries used to become
non-editable after
clicking on ‘Submit’
button. Liability
register and Credit
ledger used to be
updated at submit
Permanent
fix is not
required
because
RESET
button is
removed
from system.
These are the
cases raised
by taxpayers
prior to the
implementati
on of RESET
Agenda for 50th GSTCM Volume 1
Page 303 of 394
stage.
In the beginning, lot of
complaints used to be
received due to
freezing of entries
before filing (at submit
stage). In the
beginning, returns
lying at submit stage
were reset from the
backend as lot of
complaints were
received on account of
inadvertent mistakes.
button.
2 When Taxpayer was
validating the statement in
Refund, system is giving
error “RF-FCAS1007”
and not allowing to file
the Refund for below two
mentioned types:
1. Refund on account of
ITC accumulated due to
Inverted Tax Structure
2. On account of supplies
made to SEZ unit/ SEZ
developer (without
payment of tax).
EVP
(Serv
ices)
28-
11-
202
2
6 No GST
R-1
Know
n
After analysis we have
found that Meta Data
column is not present
in “Invoice Detail”
table. This is because
we have noticed
connection errors
while inserting data to
Invoice detail table for
these 4 taxpayers, due
to which invoices went
to error.
Description of error
code:
RF-FCAS1007:
Something seems to
have gone wrong
while processing your
request. Please try
again. If error persists
quote error number
{0} when you contact
customer care for
quick resolution.
It is fixed in
production
on 26th April
2022.
These are the
cases raised
by taxpayers
prior to the
fix deployed
in
production.
3 Taxpayers were getting
“Data for the internal
Transaction Id Already
Posted” while filing
CMP-08.
EVP
(Serv
ices)
10-
01-
202
3
151 No CMP08
Know
n
For few taxpayers, all
ledger tables were
updated successfully
but request status did
not change from
“Return To File” to
Reason 1-
Fixed on
14th June
2021 via
ICR-12663.
Agenda for 50th GSTCM Volume 1
Page 304 of 394
“File” in Return Filing
Status table.
Reason2-
Work in
Progress.
4 Rectification of rejected
original record for already
accepted amendment
record.
Deductor has amended
the original record in
favour of a different
deductee, but the original
record was not deferred
which is supposed to get
defer.
EVP
(Serv
ices)
30-
12-
202
2
1 No GST
R-7
Know
n
The status of Original
record needs to be
deferred after it was
amended. But it was
not deferred due to
technical glitch.
Issue is fixed
5 Reset of form TRAN-1.
Taxpayers were unable to
file their GSTR3B form
as their TRAN-1 form is
stuck in submitted state.
EVP
(Serv
ices)
27-
01-
202
3
328 No TRA
N-1
Know
n
Taxpayers were unable
to file their GSTR3B
form as their TRAN-1
form is stuck in
submitted state.
Issue is fixed
6 Taxpayer has filed GSTR04 form without clearing
the liability amount.
The taxpayers were
getting error while filing
CMP-08 form “'ERROR!!
Liability for previous tax
period is yet to be paid'.
EVP
(Serv
ices)
23-
11-
202
2
1 No CMP08
Know
n
Transaction handling
was not proper due to
mix of XA/ Non-XA
transactions in GSTR4. Due to this, in case
of any failure rollback
was not done
completely from all
the respective data
sources.
In this case, filing
status has been
updated as Fil in return
filing status table w/o
updating No in column
Is Open of Return
Liability Master ledger
table besides the
rollback of liability
setoff entries in ledger.
Partially
fixed in
production
on 14th Jun
2021 via
ICR-12663.
Another
RCA is
Known issue
across the
application.
Analysis is
under
progress.
Agenda for 50th GSTCM Volume 1
Page 305 of 394
7 Reset of Form GST RFD01C – On request from
the State of Maharashtra.
EVP(
Servi
ces)
18-
01-
202
2
1 No GST
RFD01C
Know
n
In Manual refund
applications (Prior to
Sep 2019), RFD 01B
was issued by Tax
officer for recrediting
ITC of the rejected
amount. RFD 01C
option was given to
the Tax officer for
rectifying any mistake
in RFD 01B. In the
present case, the
officer has committed
mistake in RFD 01C
also and the nodal
officer of the State has
requested GSTN to
reset RFD 01C.
In this case, no credit
was given earlier
either in RFD
01B/RFD 01C.
Issue is fixed
8 Taxpayers were unable to
file their further return
period and getting error
message as “Liability for
previous tax period is yet
to be paid”
EVP
(Serv
ices)
28-
11-
202
2
15 No GST
R-4
Annu
al
Know
n
The taxpayers were
facing issues in filing
any further returns
after filing of GSTR-4
annual form as the
offset of liability has
not happened but the
filing has been
completely
successfully.
Following amount was
debited from the cash
ledger as the same was
not debited at the time
of original filing:
Total Tax = Rs. 44268
/- (CGST Tax = Rs.
22134 /- and SGST
Tax = Rs. 22134 /-)
This issue
has been
fixed on 6th
Oct 2022 in
production.
These are the
cases raised
by taxpayers
prior to the
fix deployed
in
production.
Agenda for 50th GSTCM Volume 1
Page 306 of 394
9 Re- crediting of claimed
amount after issuance of
deficiency memo –
Excess cash ledger
balance refund.
EVP
(Serv
ices)
16-
01-
202
3
88 No
.
Refun
d
Form
GST
RFD03
Know
n
The issue pertains to
Refund applications
filed under the
Category of refund of
Excess Cash ledger
balance. After issuance
of Deficiency memo,
the amount claimed by
the taxpayer has to be
re-credited back to the
Taxpayer’s cash
ledger.
The claimed amount
was not re-credited to
the Cash ledger after
issuance of Deficiency
memo by the Tax
officer in 88 cases.
The blocked amount of
the taxpayer i.e., Rs
15,769,946/- (CESS:
Rs. 4100/-, CGST: Rs.
6248456/-, SGST: Rs.
6409527/- and IGST:
Rs. 3107863/-) will be
credited back to cash
ledger.
Issue is fixed
for 88 cases.
Work in
progress for
permanent
code fix.
Cases having Financial Implications:
10 Reversal of late fee in
GSTR-6 form.
Input Service
Distributor (ISD) was
unable to file GSTR-6
form on the GST portal
due to error “Error!
System Failure”
displayed on the portal
for the tax period
August 2022.
EVP
(Servi
ces)
18-
01-
202
3
1 Yes GST
R-6
Know
n
ISD was unable to file return in
form GSTR6 by due date, for the
tax period August 2022, due to
the error “Error! System Failure”
displayed on the portal.
Due to delayed filing of return
the ISD had paid late fee.
It had happened due to breakage
in internal communication of the
APIs on the GST portal.

Total late fee refunded to the
ISD = Rs. 850 /- (CGST = Rs.
425 /- and SGST = Rs. 425 /-)
Issue is
fixed
Agenda for 50th GSTCM Volume 1
Page 307 of 394
11 Reversal of late fee in
GSTR-5 form.
Non Resident Taxable
Person were getting
error “double amount of
the actual amount while
creating challan through
liability offset window”
while filing GSTR-5
form.
EVP
(Servi
ces)
18-
01-
202
3
5 Yes GST
R-5
Know
n
There was the Computation issue
in column 5 (other than Reverse
Charge) and additional cash
required, as there was a mapping
issue in configuration files
(payment file and
computation/calculation in
GSTR5 file).
Due to the above mapping issue
in configuration file, there was a
delay in providing the correct
resolution to the taxpayers and
they were unable to file GSTR5
form within due date, hence late
fee was charged to the taxpayers.
Total late fee paid by five
taxpayers = Rs. 32850/-
CGST=Rs. 16425/- and
SGST= Rs. 16425/- and the same
has been refunded.
Issue
was
fixed on
29
th Sep
2022 in
producti
on.
These
are the
cases
raised
by
taxpayer
s prior
to the
fix
deploye
d in
producti
on.
12 Seeking waiver of
interest for delayed
submission of returns by
Return Tax Preparer due
to technical glitches in
the state of West Bengal
NA NA 10 Yes GST
R-3B
NA This issue is forwarded by the
State of West Bengal w.r.t 6
taxpayers. The total amount of
Interest paid by them is Rs.
78103752.13/-.
Issue is
being
analyze
d.
Court Cases:
Agenda for 50th GSTCM Volume 1
Page 308 of 394
13 Rectification of
effective date of
cancellation
M/s Outpace Marketing
(GSTIN
07AAFFO8689N1Z9)
had applied for
cancellation of
registration on
23.3.2021 and
erroneously entered the
effective date of
cancellation as
20.3.2020 instead of
20.3.2021 as informed
by the officer.
EVP(S
ervices
)
1 No Regi
strati
on.
Form
GST
REG
-19
Know
n
Through letter recd. from
Additional Commissioner,
CGST, East Delhi, it was
informed that jurisdictional
Officer has approved the
rectification of effective date of
cancellation from 20.3.20 to
20.3.21 to be done. This has
been approved by
Commissioner.
The Commissioner has requested
GSTN to rectify the effective
date of Cancellation as per
Hon`ble High Court of Delhi
direction.
Work in
Progress
.
14 M/s Swapnadip
Enterprises had not
received the Login
credentials of the GST
Portal for Provisional
ID19AEAPG7710H1ZP
.On account of nonreceipt of Login
credentials, the
subsequent compliances
including return filing
were not completed by
the taxpayer.
The Hon’ble Calcutta
High Court directed
GSTN to examine the
issue. GSTN vide letter
dated 24.11.2021 has
stated that they are not
the appropriate authority
to pass any order as it is
an implementing agency
and has no adjudicating
powers and the matter
was referred to proper
NA N
A
1 No Regi
strati
on
Yes Points for ITGRC consideration:
On account of non-receipt of
Login credentials, the subsequent
compliances including return
filing were not completed by the
taxpayer
The recommendation received
from Nodal Officer, Kolkata
CGST Zone, is to activate the
GSTIN 19AEAPG7710H1ZP
w.e.f. 1st July, 2017 and provide
login credentials for the said
GSTIN to the petitioner.
However, technically, this is not
possible on the system as he has
not completed his enrolment
form at the time of migration as
per our database. Therefore,
system does not allow to
generate registration number
directly in this case.
Provisional GSTIN cannot be
activated from backend as
ITGRC
to
deliberat
e on this
issue
Agenda for 50th GSTCM Volume 1
Page 309 of 394
officer to examine the
issue. Basis that Nodal
Officer for Kolkata
CGST Zone has
submitted the matter
before ITGRC to
consider taxpayer’s
request for activating the
GSTIN and providing
login credentials.
enrollment application form is
not live anymore and also data is
not available for such taxpayers
in our master tables and cache
which was supposed to be
provided by such taxpayers as a
part of migration. Therefore,
such taxpayer can't be activated
with same number. Hence, as per
the parallel approved process,
taxpayer can be advised to take
new registration on the same
PAN and post approval and
allocation of new GSTIN, it can
be swapped with old GSTIN.
Hence, the taxpayer needs to
apply for new GST Registration
under Form GST REG-01 on the
portal and accordingly
registration will be granted w.e.f.
01.07.2017.
As recommended by Nodal
Officer, Kolkata CGST Zone to
enable furnishing of GSTR-1 and
GSTR-3B by the Taxpayer w.e.f.
1st July, 2017, inputs are
required on the following:
a) If he files all the pending
returns, whether reversal
of late fee and waiver of
interest shall be
permitted?
b) Whether he can avail
input tax credit?
c) Whether he can file
TRAN-1, if required?
Agenda for 50th GSTCM Volume 1
Page 310 of 394
15 Reverting APL 01 to
submitted status as APL
04/02 has been
remanded back
byHon`ble High Courts
EVP
(Servi
ces)
Dif
fere
nt
dat
es
48 No App
eal
APL
01
Know
n
Requests have been received
from various states to enable
Appellate authority to restore
APL 01 where either Appeal
orders APL 04 or APL 02 have
been remanded back by High
Courts of different States.
Functionality is not available for
remand back to Appellate
authority.

The remand back functionality is
still under development,
therefore, the disposed appeal
order has to be given reset from
the status of “Appeal disposed”
to “Appeal Submitted”.
Data fix
provide
d and
the
Appeal
applicati
on
ARNs
were
restored
to
“Appeal
Submiss
ion”
stage.

Agenda for 50th GSTCM Volume 1
Page 311 of 394
Annexure-3
Technical Issues
Being Presented For Review Before
18th ITGRC
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(b) Recommendations of the 19th meeting of the IT Grievance Redressal Committee:
Agenda: Recommendations of the 19th meeting of the IT Grievance Redressal Committee for
approval/decision of the GST Council:
The 19th meeting of the IT Grievance Redressal Committee (ITGRC) was held on 27th April, 2023 at
11.00 AM in online mode to resolve the grievances of the taxpayers arising out of the technical problems
faced by them on the GSTN portal in relation to GST Compliance filings.
The agenda for the 19th ITGRC meeting covered the following issues:
1. Technical Issues requiring data fixes through back-end utilities
2. Any other agenda with the permission of the chair
2. Recommendations of ITGRC on Data Fix issues :
As per the SOP approved in the 45th GST Council meeting for Technical issues requiring data fix of the
processed incorrect data through backend utilities, GSTN presented twenty (20) issues which required
data fixes for the consideration of ITGRC during its 19th meeting.
2.1 ITGRC took note of the data fixes carried out by GSTN in fifteen issues impacting 453 cases which
were technical issues with no financial implication where correct data was known (Category-1 of the
approved SOP) and deferred one (01) issue impacting 6 cases pertaining to the system allowing ‘Nil’
filing of GSTR-3B even if data has been auto populated from GSTR1 and there exists liability in GSTR3B.
2.1.1 In the cases mentioned above in Category-1 (Technical issues having no financial implications
where correct data is known), ITGRC also recommended that:
i) In cases where system was not allowing taxpayers to file refund due to technical defect because the
invoice data had not got populated in the meta data table, GSTN would analyze how many such refund
cases are pending due to error in validating the statement in refund and the amount involved therein by
separating the active and inactive GSTINs.
ii) For cases where taxpayers are able to file GSTR-4 without clearing liabilities, GSTN would carry out
data fix for all the past affected cases and bring before the next meeting of the ITGRC.
iii) In cases of double reporting of export invoices creating negative balance in the export ledger and nontransmission of invoices to ICEGATE for IGST refund, GSTN will intimate the jurisdictional officers to
check the actual admissibility of refund and to check for double refund.
iv) The ITGRC recommended that an SOP needs to be developed in cases where the category of taxpayer
(such as Normal/Composition) was to be converted with retrospective effect, and the same was to be
referred to the Law Committee.
v) In cases where extension of time period has been granted for GST compliances,ITGRC has
recommended that the issue be referred to the Law Committee for deliberation as to whether a
Agenda for 50th GSTCM Volume 1
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functionality needs to be developed and whether such issues can be considered individually by the
Commissioners or the same needs to be referred to the Law Committee for the sake of uniformity across
the States.
2.2 For the three (03) technical issues pertaining to Category-2 (Technical issues where there were
financial implications and the correct data was known), ITGRC took note of the data fixes carried out by
GSTN in all 39867 cases.
2.3 ITGRC also took note of the data fixes carried out by GSTN in 1 issue pertaining to 14 Court cases
wherein the High Courts had remanded the appeal orders to the Appellate Authorities and GSTN had
reset the status of the disposed appeal order to “Appeal Submitted”.
The GST Council may approve the recommendations of the ITGRC and the data fixes carried out by
GSTN as mentioned in Para 2 above and the attached Minutes of the 19th meeting of the ITGRC.


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Minutes of the 19th Meeting of the IT Grievance Redressal Committee (ITGRC) held on
27.04.2023
The 19th meeting of the IT Grievance Redressal Committee (ITGRC) was held in online
mode over WebEx platform on 27th April, 2023 at 11 am. The list of officers who attended the
meeting is attached as Annexure-1. The agenda and annexure to agenda circulated for the meeting is
at Annexure-2.
2. Joint Secretary, GST Council Secretariat, welcomed all the members and informed that as per
Circular 39/13/2018 dated 3.4.2018, ITGRC is mandated to resolve technical glitches being faced by
class of taxpayers and that in the 45th meeting of the GST Council, an SOP on the mechanism to fix
various technical glitches by the GSTN was approved. She also informed that the SOP categorized
the technical glitches being faced by taxpayers according to the financial implications: those having
no financial implications, local financial implications and those having global financial implications
where either the correct data was known or not known. Data fixes for technical issues having no
financial implications/ local financial implications where data was known with certainty were carried
out after taking internal approval within GSTN and were being placed before the ITGRC for
information/approval. She gave a brief introduction that the agenda shared by GSTN related to data
fixes includes sixteen(16) kinds of cases having technical issues with no financial implication where
correct data was known with certainty impacting 459 taxpayers which according to the SOP required
approval of SVP, GSTN for GSTN to proceed with the data fixes required. She also stated that three
(03) types of technical issues having local financial implications where the correct data was known
impacting 39867 cases had been shared by GSTN as agenda for the 19th meeting which according to
the SOP, required approval of EVP/CEO GSTN and MIS to be provided to tax administration. In
addition to the two categories above, GSTN had also shared fourteen (14) court cases for
consideration of the ITGRC. Thereafter Joint Secretary, GST Council Secretariat informed that Shri
Dheeraj Rastogi, EVP, GSTN would be covering the agenda in detail. She then invited Shri
Shashank Priya, Member, GST, CBIC to give his opening remarks.
3. Shri Shashank Priya, Chairman, ITGRC, thanked everyone for joining in the meeting and
noted the presence of Shri Samir Vakil, Chief Commissioner, State Tax, Gujarat and Shri Khalid
Anwar CCT, West Bengal. He requested that the members of ITGRC may make it convenient to join
these ITGRC meetings and that representatives could attend whenever the members had other
commitments. He then invited EVP, GSTN to proceed with the agenda.
4. Executive Vice President, GSTN stated that as informed by JS, GSTCS, GSTN has brought
nineteen issues of technical glitches before ITGRC for which GSTN had to carry out data fixes.
5. EVP, GSTN then proceeded with the presentation (Annexure-3). First the technical issues
having no financial implications were taken up.

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6(a) Technical issues having no financial implications where correct data known:
6(a).1
S.
No.
Issue
reported
No. of Cases
Impacted
Module Detailed Description Status
1 Meta Data Column
missing in Invoice
table of HBase.
When Taxpayer
was validating the
statement in
Refund, system
was giving error
“RF-FCAS1007”
and not allowing to
file the Refund for
below two
mentioned types:
i. Refund on
account of
ITC
accumulated
due to
Inverted Tax
Structure
ii. On account
of supplies
made to SEZ
unit/ SEZ
developer
(without
payment of
tax).
22
GSTR-1
Description of error code:
RF-FCAS1007: Something
seems to have gone wrong while
processing your request. Please
try again. If error persists quote
error number {0} when you
contact customer care for quick
resolution.
Meta Data column was not
present in “Invoice Detail” table.
This was because we have
noticed connection errors while
inserting data to Invoice Detail
table, due to which invoices went
to error.
By the data fix, invoices are
enabled for validation so that the
taxpayers can file refund
application.
Code was fixed
in production on
26th April
2022.Old cases
are being fixed
by backend
query.
Below are return
periods for
different
taxpayers Sep
2019, Sep 2020,
Apr, May, Jul,
Sep, Oct, Dec
2021, Mar, May,
Jun, Jul, Aug,
Sep, Oct, Nov,
Dec 2022, Jan
2023

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Discussion:
Shri Nirmal Kumar, EVP(Technical), GSTN explained that due to technical defect the invoice data
had not got populated in the meta data table. EVP GSTN said that such issues had arisen earlier and
brought before the ITGRC. Chairman, ITGRC stated that the ITGRC would take note of the data fix.
Chairman, ITGRC requested GSTN to analyze how many more such cases are pending and what the
financial implications could be.
Joint Secretary, GST Council Secretariat pointed out that although the Status states that code had
been fixed in production in April, 2022, data fixes were apparently required even for return periods
subsequent to that. EVP, GSTN stated that the same would be analyzed.
Decision: ITGRC took note of the data fix done by the GSTN. As per the directions of the Chair,
GSTN would analyze how many such cases are pending and the amount involved therein by
separating the active and inactive GSTINs.
6(a).2
S.
No.
Issue
reported
No. of Cases
Impacted
Module Detailed Description Status
2 Taxpayers are
able to file
GSTR4
without
clearing
liabilities.
The taxpayers
were getting
error while
filing CMP08 form
“'ERROR!!
Liability for
previous tax
period is yet
to be paid'.
1
CMP-08
Transaction handling was not
proper due to mix of Transaction
Handling Manager/ Non
Transaction Handling Manager
transactions in GSTR-4. Due to
this, in case of any failure rollback
was not done completely from all
the respective data sources. In this
case, filing status has been
updated as Fil in return filing
status table w/o updating No in
column Is Open of Return
Liability Master ledger table
besides the rollback of liability
setoff entries in ledger.
This is due to the fact that
after filing of the quarterly
GSTR-4 form, although
ARN has been generated and
it is being shown as FILED
to the taxpayer, the posting in
the ledger has been rolled
partially back due to
technical issue (Transaction
Handling Manager/ Non
Transaction Handling
Permanent fix
already released
to production on
14Jun’21 via
ICR-12663.
Old cases
are being
fixed by
backend
query.
Return
periods
involved
are
09/2017,
12/2017,
03/2018,
06/2018,
09/2018,
12/2018,
03/2019
Agenda for 50th GSTCM Volume 1
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Manager).
Discussion:
EVP, GSTN stated that the issue arose due to technical defect in the filing process of GSTR-4, where
although the status was shown as filed, the debit to the ledger had not happened. This was corrected
by way of data fix. It was informed that the same issue had been discussed in the 18th ITGRC.
Chairman, ITGRC enquired whether such cases would also occur in the future. EVP GSTN stated
that since issue has been fixed in production, only past cases would be resolved on the basis of
tickets raised. Chairman ITGRC enquired whether the issue could be resolved for all the past cases.
EVP(Tech) GSTN stated that the old cases could also be resolved by running a script and data fix
could be done for all the past cases identified. CCT, West Bengal opined that the issue should be
resolved for all the affected taxpayers. JS, GSTCS pointed out that as per SOP, similarly affected
TPs had to be identified and the issue resolved for them. EVP, GSTN stated that the same would be
done in future and they would fix all the past cases and bring it before the next meeting of the
ITGRC.
Decision: The ITGRC took note of the data fix. Data fix to be done for all the past affected cases and
brought before the next meeting of the ITGRC.
6(a).3
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
3 Correction in cash
ledger balance due to
credit/ debit
happened
simultaneously
80 Cash
Ledger
Some tickets were received from
taxpayers at GST Helpdesk for
correction in Cash Ledger balance.
Issue was identified as balance was
not updated due to credit/ debit
happening simultaneously. On
further analysis, 80 cases were
identified so far wherein either
credit or debit entry was missed to
update in Cash Ledger balance.
The issue had occurred due to
debit/ credit entry in the cash
ledger happening at the same time,
which led to incorrect cash balance
in the cash ledger. The reason for
occurrence of the issue is due to
dirty read where the two
transactions happened
simultaneously and read the same
record
CR#21982 has
raised for
permanent fix.
Data are
being
fixed by
backend
query till
code fix is
done.
Discussion:
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EVP, GSTN explained that there is a defect wherein if 2 transactions happen simultaneously on the
cash ledger such as a debit and credit or 2 credits, then the balance in the cash ledger is not updated
correctly. 88 such cases were identified by GSTN during examination wherein 80 were active
GSTINs and 8 inactive. Representative from Tamil Nadu enquired whether these cases would fall
under the category of technical issues having financial implications. EVP GSTN stated that since in
these cases amount has already been paid and there is no financial implication for GST system
therefore, these cases would come under the category of issues having no financial implications.
Decision: ITGRC took note of the data fixes done in 80 active cases wherein amount has been
realized by way of challans but not reflected in cash ledger.
6(a).4
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
4 Taxpayers have raised
ticket on Helpdesk
regarding differences in
data saved in HBase
(seen in GSTR3B ) and
Ledger.
6 GSTR-3B Taxpayers have filed the
returns but there is mismatch
in the data entered vis-à-vis
payment made. Ledgers are
updated on the basis of
payment table whereas pdf
is generated on the basis of
data entered. This issue is
because of
1.Nil filling is allowed even
if user have auto populated
data from GSTR1
2. Race condition due to
which system is not able
to verify if previous save
is in in-progress state
RQM: 22721 has
created for permanent
fix. Data are being
fixed by backend
query till the
permanent fix is
done.
Return periods are
given below for
different tax payers
Mar 2018, Nov 2019,
Aug 2022, Jan 2023
Discussion:
The issue here is of the system allowing ‘Nil’ filing of GSTR-3B even if data has been auto
populated from GSTR1 and there exists liability in GSTR-3B. EVP, GSTN stated that they have
done reset in 6 cases and after reset, tax payers have filed GSTR-3B. CCT, West Bengal stated that
this appeared to be a deliberate attempt on the part of the TP to mis-declare his liability by making
his outward supply ‘Nil’ and therefore, not a technical glitch to be deliberated upon by the ITGRC.
Chairman, ITGRC concurred with the same and stated that this issue is not in the domain of ITGRC.
However, the race condition in which TP attempts 2 saves of different liabilities but the second one
is not updated with the ledger appears to be a technical glitch. Chairman, ITGRC enquired how
many such technical glitches were identified.
EVP, GSTN stated that out of the 6 cases mentioned in the agenda, as on date, they do not have a
break up of how many cases pertain to the race condition in the system due to which system is not
able to verify if the previous save is in progress state and how many pertain to Nil filing of GSTRAgenda for 50th GSTCM Volume 1
Page 329 of 394
3B even when liability has been auto populated from GSTR1. He therefore, suggested that the
agenda item may be withdrawn and GSTN be allowed to bring it up in the next ITGRC.
Chairman, ITGRC suggested that the Law Committee may be requested to have a relook into the
issue of ‘Nil’ filing of GSTR-3B in cases where data has been auto populated from GSTR1.
CCT, West Bengal requested GSTN to develop MIS for all such cases where such Nil filing has
been done as the jurisdictional officers would have to initiate recovery proceedings in such cases.
EVP, GSTN stated that they have started analyzing the data and would shortly bring before the
ITGRC a full list of such cases wherein there has been a mis-declaration of tax liability.
Decision : Deferred till next meeting of ITGRC. GSTN to provide MIS to jurisdictional tax officers
for recovery in cases of under reporting of liabilities.
6(a).5
S.
No.
Issue reported No. of
Cases
Impacted
Module Detailed Description Status
5 Rectification of rejected
original record for already
accepted amendment record.
1 GSTR-7 Deductor has amended the
original record in favour of a
different deductee, but the
original record was not
‘deferred’ which is supposed
to get defer.
The status of Original
record needs to be
‘deferred’ after it was
amended. But it was not
‘deferred’ due to
technical glitch allows
R2X user to take action
on that Original record.
Permanent fix
is done.
Old cases are
being fixed by
backend query.
Return periods
are Sep 2021
and Nov 2021
Discussion:
EVP, GSTN explained that this technical issue pertained to amendment in GSTR-7 wherein the
original deductee’s record was not shown as deferred which could potentially lead to him being able
to take action on the same.Therefore, GSTN has carried out a data fix to correct the same. CCT,
West Bengal requested GSTN to ensure that both the deductee’s cash ledger was not credited on
amendment by deductor. EVP, GSTN stated that this aspect had already been verified.
Decision: ITGRC took note of the data fix done by GSTN.
6(a).6
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S.
No.
Issue reported No. of Cases
Impacted
Module Detailed
Description
Status
6 Transferring the cash
balance available in
the Temp ID.
232300000422ARD
(Advance Ruling) to
332300000076TMP
(Suo-moto Reg.) in
the respective
major/minor Heads.
The amount has been
incorrectly deposited
by the taxpayer in the
Temp ID meant for
Advance Ruling.
1 Cash
ledger
TN State Intelligence
officer has wrongly
created Temp ID
(232300000422ARD)
for a taxpayer Tvl.
Vinsun Enterprises
(GSTIN
23AASPJ8702E1ZR.)
on front office (FO)
portal through “
Generate User ID for
Unregistered
applicant” instead of
back office (BO)
portal for making
payment against the
offence booked. The
taxpayer also wrongly
deposited a sum of Rs.
9,10,478/- using the
temporary Id wrongly
created on the FO
portal.
Subsequently the TN
officer generated
another Temp ID for
Suo-moto registration
(332300000076TMP)
on BO portal and
issued demand for Rs.
9,10,478/ in Form
GST DRC-07-.
Data correction was
requested by Tamil
Nadu team to transfer
cash ledger balance
from Temp. Id
(Advance Ruling) to
Temp If (SuoICR 789175 has
been raised to fix
the issue from
backend.
Agenda for 50th GSTCM Volume 1
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motoReg) to enable
the taxpayer to
discharge the liability.
This is a human error
by - Tamil Nadu State
Intelligence officer
Discussion:
EVP, GSTN stated that this was a human error on the part of Tamil Nadu State Intelligence Officer
wherein a Temp ID meant for Advance Ruling was wrongly got created from taxpayer instead of
creating the Temp ID on suo- moto basis. The taxpayer wrongly deposited Rs. 9,10,478/- using this
Temp ID. Since, no functionality exists for transfer from Temp ID for Advance Ruling to The Temp
ID created on suo-moto basis, GSTN has done a data fix and transferred the amount. CCT, West
Bengal enquired whether the amount that needs to be deposited for Advance Ruling can be kept as a
cap for such Temp IDs for advance ruling. EVP, GSTN stated that they are now developing a
functionality to ensure that no amount more than the fee for Advance Ruling can be deposited in
Temp IDs for advance ruling.
Decision: ITGRC took note of the data fix done by GSTN.

Agenda for 50th GSTCM Volume 1
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6(a).7
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
7.
Status is suspended in GST
Portal, whereas it is active in
CBIC System
294 Registration
When the CBIC technical person,
updating the status column in the
registration database on 16th, 17
th
and 18thFebruary 2023, few of the
old records in the table got initiated
the Suo – Moto Cancellation task
due to technical error and it was not
initiated by CBIC officers and
GSTINs got suspended.
So far, CBIC has identified 294
cases which are active in the CBIC
officer's dashboard and suspended
in the GSTN portal. To resolve
those cases, CBIC requested to
verify and make the GSTINs as
Active through data fix.
This has happened due to technical
issue at CBIC end.
Fixed by
backend query.
Discussion: EVP, GSTN stated that due to some data load error at Wipro and CBIC end, 294 TPs who
were active were shown as suspended in GSTN portal. At the request of CBIC, 294 GSTINs were made
active by GSTN.
Decision: ITGRC took note of the data fix done by GSTN.

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6(a).8
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
8.
Non-credit of Claimed amount
after issuance of Deficiency
memo by the Tax officer.
1 Refund
The taxpayer with the GSTIN
07AGJPS2553F2Z9 has filed refund
application under the category
“Refund of ITC on Export of Goods
& Services without Payment of
Tax”. The officer has issued
Deficiency memo. However, the
claimed amount is not credited to the
taxpayer. The amount involved in Rs
3,68,774/-
On issuance of Deficiency memo,
Case table has to be updated with
DMI status and reversal credit entry
has to be entered in Taxpayer’s
ledger. Only case table status is
updated but ledger entry didn’t
happen.The functional call for
ledger update is getting skipped due
to logic issue in backend API call.
Data fix is
given to credit
the amount of
Rs 3,68,774/-
Discussion: EVP, GSTN stated that due to technical issue, even after issuance of deficiency memo,
amount claimed as refund was not credited to the electronic credit ledger of the TP and therefore, GSTN
has done a data fix. Chairman ITGRC and CCT WB enquired whether in future for deficiency memos
issued in case of refund claims, the amounts would be re-credited to the electronic credit ledger. EVP,
GSTN stated that such a functionality already exists.
Decision: ITGRC took note of the data fix done by GSTN.

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6(a).9
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
9.
Duplicate invoices (GSTR 1
& GSTR 1E) in the export
table leading to negative
balance in the Export ledger.
1 Refund
During the initial period of GST (July
2017 – September 2017), GSTR 1E was
available for the taxpayers to report
export invoices. Some taxpayers have
reported the export invoices in GSTR 1E
and the quarterly GSTR 1. This resulted
in double reporting of export invoices.
This double reporting created negative
balance in the export ledger and the
invoices are not transmitted to
ICEGATE for IGST refund.
For the impacted taxpayers, the export
ledger will be given offset equivalent to
invoice amount which was reported
twice. This will make the export ledger
either positive or zero for transmitted
invoices to ICEGATE for IGST refund.
The GSTINs which is given offset in
export ledger is 07AAPPS0293J1Z6.
Rs. 18296.28 /-
is given as
offset in the
export ledger.
Discussion: EVP, GSTN stated that during the initial period of GST (July 2017 – September 2017),
GSTR 1E was available for the taxpayers to report export invoices. Some taxpayers have reported the
export invoices in GSTR 1E and in the GSTR-1as well. This resulted in double reporting of export
invoices. This double reporting created negative balance in the export ledger and the invoices are not
transmitted to ICEGATE for IGST refund.
GSTN has given an offset in ledger of affected TP so that export invoices could be transmitted to
ICEGATE. Representative from Haryana raised the issue of limitation for refund claim. EVP, GSTN
stated that this delay was not due to any delay on the part of TP but due to system error and also that the
issue of limitation of time cannot be discussed in ITGRC. Chairman, ITGRC stated that the issue of
technical glitch was being discussed by ITGRC.
Decision: ITGRC took note of the data fix done by GSTN. The actual admissibility of refund would be
decided by the jurisdictional officer. An intimation to be sent to jurisdictional officer so as to check
double refund.
6(a).10
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
Negative balance in Export 1 Refund Taxpayers of Daman & Diu were given Fixed
Agenda for 50th GSTCM Volume 1
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10.
ledger and the taxpayer not able
to resolve the issue due to
merger of Dadra Nagar Haveli
with Daman & Diu. This
resulted in non-transmission of
export invoices to ICEGATE.
a new GSTINs with state code ‘26’ and
the GSTINs with state code ‘25’ were
disabled for filing any new forms. A
taxpayer has a negative balance of Rs
436110 in the export ledger in the old
GSTIN 25AAACW1018K1ZJ due to
which export invoices are not getting
transmitted to ICEGATE. The taxpayer
is not having any GSTR 3B return to be
filed in their old GSTIN. Therefore,
there is no option available for taxpayer
to pay the liability in the old GSTIN
and make the export ledger as
Zero/positive for transmission of
invoices.
In this case, the taxpayer was asked to
pay the liability of old GSTIN of
Rs436110/- through new GSTIN by
filing DRC 03. The payment was made
by the taxpayer. The export ledger of
old GSTIN was given an offset
equivalent to the amount of Rs436110.
Now, invoices are transmitted to
ICEGATE.
Discussion: EVP, GSTN stated that a taxpayer of Daman and Diu had a negative balance in the export
ledger in the GSTIN pertaining to old State code 25, therefore, their export invoices were not being
transmitted to ICEGATE. And since TP had no further returns to be filed in the old GSTIN, therefore,
there was no option available for taxpayer to pay the liability in the old GSTIN and make the export
ledger as Zero/positive for transmission of invoices. GSTN therefore allowed the TP to pay the liability of
old GSTIN in new GSTIN and offset the liability in the old GSTIN.
In this case, the taxpayer was asked to pay the liability of old GSTIN of Rs. 4,36,110/- through new
GSTIN by filing DRC 03. The payment was made by the taxpayer. The export ledger of old GSTIN was
given an offset equivalent to the amount of Rs436110. Now, invoices are transmitted to ICEGATE
Decision: ITGRC took note of the data fix.
6(a).11
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
11. Rectification of Refund order
(RFD 06) 2
Refund
(Form GST
RFD-06)
Representations are received from
different states to reset the RFD
06 as RFD 06 has been issued
with incorrect amount. In these
cases, no payment advice is not
Issue is fixed
Agenda for 50th GSTCM Volume 1
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issued by the tax officer.
As the functionality for
Rectification of RFD 06 is in
documentation stage, RFD 06
was given a reset to enable the
officer to issue RFD 06 one more
time.
The GSTINs which are involved
in this reset are
27AACCL5620N1ZA,
02AAACB2894G1ZZ.
Discussion: EVP GSTN stated that they had received requests to reset the RFD 06 as RFD 06 has been
issued with incorrect amount. In these cases, no payment advice is issued by the tax officer. As the
functionality for Rectification of RFD 06 is under development, RFD 06 was given a reset to enable the
officer to issue RFD 06 one more time.
CCT, WB enquired whether such issues had also been raised earlier. EVP GSTN stated that earlier too a
reset had been given to the officer to issue RFD 06 again.
Decision: ITGRC took note of the data fix carried out by GSTN.

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6(a).12
S.
No.
Issue reported No. of Cases
Impacted
Module Detail Description Status
12.
Tax Officers has issued Audit
Notice (ADT-01) with incorrect
Financial Year.
6 Audit
Officer has mistakenly selected
incorrect values for Financial
Year From, Financial Year To,
Audit Period From, and Audit
Period To While Issuing the
“Notice For Conducting of Audit
(ADT-01)”. Now Officers want
to Rectify the Issue. It was a
human error where Tax officer
has selected wrong values from
dropdowns.
For a permanent solution, a
functionality is rolled out in
production where officer can
close the case and then start a
fresh audit case (CR 22194).
As this was a
human error so
code fix was not
required. Data
were fixed by
backend query.
Discussion: EVP, GSTN stated that sometimes officers mistakenly select incorrect values for Financial
Year from, Financial Year drop down, Audit Period From, and Audit Period To while issuing notice for
conducting of Audit. In order to rectify such errors, data fix was done.
For a permanent solution, a functionality is rolled out in production where officer can close the case and
then start a fresh audit case.
Decision: ITGRC took note of the data fix carried out by GSTN.
6(a).13
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
The state nodal officer of
Uttar Pradesh has requested 1 Registration For the GSTIN
9ACUPA8512D1ZM, The tax officer
Data is fixed
Agenda for 50th GSTCM Volume 1
Page 338 of 394
13.
to restore the registration
from Normal taxpayer to
Composition taxpayer from
date-27-07-2022 as per the
appellate order dated-27-07-
2022.
has converted the category from
Composition to Normal taxpayer.
Against the Order issued by
Registration officer, the taxpayer
filed the appeal before the Appellate
authority. The Appellate authority
allowed the appeal filed by the
taxpayer and ordered the department
to convert the said GSTIN from
Normal to Composition with
retrospective effect (Date as
27/07/2022).
No functionality is available to
change from Normal to Composition
with retrospective effect. Hence
backend fix was required.
Discussion: The tax officer has converted the category from Composition to Normal taxpayer. Against
the Order issued by jurisdictional officer, the taxpayer filed the appeal before the Appellate authority.
The Appellate authority allowed the appeal filed by the taxpayer and ordered the department to convert
the said GSTIN from Normal to Composition with retrospective effect. Since functionality is not
available to convert a TP from normal TP to Composition TP with retrospective effect, GSTN has done a
backend data fix.
Chairman, ITGRC raised the issue that during the period that the TP was a normal TP he may have issued
tax invoices and passed on credit. EVP, GSTN stated that the jurisdictional tax officer may be asked to
verify this aspect. CCT, WB stated that a functionality might be developed to take care of future cases
although for the present the data fix might be approved. Chairman, ITGRC suggested that the matter
might be taken to the Law Committee to develop an SOP for the same.
Decision: Issue to be referred to Law Committee to develop an SOP for cases where taxpayer is
converted from one category to another with retrospective effect.
6(a).14
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
Taxpayer is not able to file
Form GST CMP 02 for
opting Composition levy
scheme (CLS) as a trader of
Tobacco products.
3 Registration
The taxpayers who register
themselves as ‘traders’ in GST
portal for dealing with Tobacco
products, the portal doesn’t allow
such taxpayer from filing the Form
GST CMP 02 to opt for CLS.
Data is fixed.
Agenda for 50th GSTCM Volume 1
Page 339 of 394
14. CLS is restricted for the
Manufacturers of goods like
tobacco, ice creams, pan masala,
ash bricks etc. GST system has a
validation which limits the
taxpayers who deals in such goods
irrespective of the business activity
of the Registered persons
(Manufacturers, Traders,
Wholesaler, Retailer etc.) to opt
for CLS. This validation should
have been kept only for the
Manufacturers and not for the
traders and others. A CR is given
for modifying the validation.
Discussion: EVP, GSTN stated that TPs are not able to file Form GST CMP 02 for opting for
Composition levy scheme as trader of Tobacco products. Composition Levy is restricted for the
Manufacturers of goods like tobacco, ice creams, pan masala, ash bricks etc. GST system has a validation
which limits the taxpayers who deals in such goods irrespective of the business activity of the Registered
persons (Manufacturers, Traders, Wholesaler, Retailer etc) to opt for CLS. This validation should have
been kept only for the Manufacturers and not for the traders and others. Therefore, GSTN in these cases
has enabled the option through backend and sent a mail to the jurisdictional tax authorities to verify
whether they are traders or manufacturers. GSTN is working on keeping the validation only for
manufacturers of such products.
Chairman, ITGRC enquired as to why this problem was not occurring with larger number of tax payers.
EVP, GSTN stated that this might be due to the reason that many of such traders might be below
threshold level or might be beyond the turnover for composition levy. And that many might be opting to
be normal TPs.
Decision:ITGRC took note of the data fix done by the GSTN.
6(a).15
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
Extension of the time limit for
filing FORM GST ITC-01 1 ITC-01
Commissioner State Taxes
Government of Jharkhand had issued a
notification in Mar 2023 for extension
of period for filing form ITC-01 to
claim credit on the stock after moving
out of composition scheme in favor of
M/s Deepsons Auto center
Extension to
ITC-01 for
GSTIN were
given on 14
th
Apr 2023.
Agenda for 50th GSTCM Volume 1
Page 340 of 394
15. (20ADRPA2175N1ZJ). Earlier the tax
payer had filed a writ petition before
the Hon'ble High Court of Jharkhand.
Hon'ble court has asked the tax payer
to approach Commissioner SGST for
redressal of grievances. Accordingly
the due date have been extended to
allow filing of the aforesaid form.
Discussion: EVP, GSTN stated that in the case of M/s Deepsons Auto Center which missed the one
month timeline in which ITC 01 had to be filed, Commissioner State Taxes Government of Jharkhand had
issued a notification in March, 2023 for extension of period for filing form ITC-01, subsequent to High
Court judgement. He said that the matter had been referred to GST Policy Wing for examination as to
whether such extension can be given in individual cases, and if so, what should be the SOP. CCT, West
Bengal concurred and said that the issue should be referred to Law Committee. He also stated that the
Court had not asked the Department to extend the time period for filing of the form but had asked the
Department to consider the representation of the taxpayer. Chairman, ITGRC agreed that the matter
should be referred to the Law Committee. EVP, GSTN informed that because of the notification, Form
ITC 01 was opened for the TP and he had filed. The matter has been referred to GST Policy Wing to take
up the same with the Law Committee. The Chairman, ITGRC enquired as to why the issue has been
brought before the ITGRC since the action is already over. He directed that such issues should be brought
before ITGRC and approval taken before taking any action on the same. Representative from Haryana
suggested that a functionality may be developed to enable the Commissioner to extend the time period.
CCT, WB disagreed with the suggestion and stated that such issues should be brought before the Law
Committee.
Decision: ITGRC took note of the data fix. Issue to be referred to the Law Committee for deliberation as
to whether a functionality needs to be developed in such cases as the law allows for extension of time
period and also whether such issues can be considered individually by the Commissioners or the same
needs to be referred to the Law Committee for the sake of uniformity across the States. Such issues, if
requiring the approval of ITGRC should first be brought before ITGRC for approval before
implementation of the order.
6(a).16
S.
No.
Issue reported No. of Cases
Impacted
Module Detailed Description Status
16.
Reset of RFD 05 – Technical issue
at CBIC 38 RFD 05
When the CBIC tax
officer issues Payment
advice (RFD 05) for the
IGST refund applications
auto generated by GST
system, ‘Zero’ value is
being received in GST
system through G2G API.
Due to these zero values,
Data fix will be
given after peak
filing
(25.04.2023)
Agenda for 50th GSTCM Volume 1
Page 341 of 394
these payment advices are
not sent to PFMS for
disbursement. These RFD
05s have to be given reset
from the backend so that
CBIC can resend the
payload of RFD 05
through G2G API.
In one case, to comply
with the order of High
court of Bombay, RFD 05
is loaded with the values
received from field
formation (cross verified
with the values sent by
DG systems) and sent to
PFMS for disbursement.
Discussion: EVP, GSTN stated that when RFD 05s are received in GST system through G2G API, some
of the values are being received as zero. Since payment advice are being received with zero value, the
same were not being forwarded to PFMS. Therefore, GSTN has done a reset in such cases to enable the
correct amount to be resent again.
Decision: ITGRC took note of the data fix done by the GSTN.
6 (b). Thereafter, EVP, GSTN explained three cases where there were technical issues affecting locally
with financial implications and where the correct data was known.
The details of the cases are mentioned as follows:
6 (b).1
S.
No.
Issue reported No. of
Cases
Impacte
d
Modul
e
Detail Description Status
GSTR
-3B
As per the Notification No. 50/2017 Central
Tax Dated 24 Oct 2017, late fee of GSTR3B
for return period August, September 2017
was required to be waived off for all
taxpayers. Late Fee was charged for
taxpayer with GSTIN id -
08AJLPJ6421E1ZB for August, 2017 and
September 2017 but it was not refunded for
Refund of late fee
had been given as per
the Notification No.
50/2017 Central Tax
Dated 24 Oct 2017
and not due to defect.
Return periods
Agenda for 50th GSTCM Volume 1
Page 342 of 394
1.
Reversal of late
fee in GSTR-3B
form
1
him.
Taxpayer has raised a ticket to provide the
refund for the late fee paid by him for
August and September 2017 return periods.
While extracting the list of taxpayers who
had paid late fee on delayed filing of return
in Form GSTR-3B for the months of August
and September, 2017 for refunding the
same, somehow, the complainant was
missed from the list and no late fee was
refunded to the said taxpayer.
Refund of late fee of Rs.6400/-(Rs.3200/- in
CGST and Rs. 3200/- in SGST)
involved are August,
September 2017.
Discussion: EVP, GSTN stated that late fee of GSTR3B for return period August, September 2017 was
waived off for all taxpayers. Late Fee was charged for a taxpayer for August,2017 and September 2017
but it was not refunded to him. A ticket has been raised by the TP and refund is due to him. Chairman,
ITGRC enquired whether the refund had already been given or whether the issue is being brought to
ITGRC for approval. EVP, GSTN stated that the refund had already been given. CCT, WB enquired as to
why the issue has been brought before ITGRC as the notification for waiver of late fee and refund where
paid already exists. EVP, GSTN stated that all data fixes were being brought before the ITGRC.
Decision:ITGRC took note of the data fix done by the GSTN.
6 (b).2
S.
No.
Issue reported No. of
Cases
Impac
ted
Module Detail Description Status
Correction of Decimal values in
Credit Ledger
Taxpayer is unable to utilize amount
of Rs. 0.5 under CGST & SGST tax
heads of credit ledger, As we are not
showing the decimal values on the UI
for ITC .There are 39864 taxpayers
for whom the values in the ITC ledger
are in decimals. The decimal values
need to be rounded off to nearest
rupee.
Data fix has
done by
backend
query.
Agenda for 50th GSTCM Volume 1
Page 343 of 394
2. 39864
Credit
Ledger • Where amount is greater than or
equal to 50 paise, the same will be
upward rounded off and if the
amount is less than 50 paise, the
same will be downward rounded
off.
• The net financial impact is Rs
1630.54/ (CGST: Rs. 847.68/-,
SGST: Rs. 764.2/-, IGST: Rs.
19.71/- and CESS: Rs. 1.05/-)
Discussion: EVP, GSTN stated that there were some decimal values in the Credit Ledger of certain TPs
because of which they were unable to offset their returns due to mismatch. Therefore, GSTN had rounded
these off to the nearest rupee. He stated that the net financial impact is Rs.1630/- and 39864 were the
number of impacted cases. Chairman, ITGRC enquired whether such issues are expected to recur in
future. EVP, GSTN stated that such issues are not expected to arise in future.
Decision:ITGRC took note of the data fixes done by the GSTN.
6 (b).3
S.
No.
Issue
reported
No. of
Cases
Impac
ted
Modul
e
Detail Description Status
3.
Taxpayers
have filed
return in Form
GSTR-4
(Annual)
without
entering
outward
supplies in
table 6
2
GSTR
-04
Taxpayers have filed return in Form
GSTR-4 (Annual) without entering
outward supplies in table 6 and due
to which amount paid through CMP08s have been credited to the
Negative Liability Statement which
can be utilised for future liability.
Though, amount from the statement
was nullified but few case were
missed out. Taxpayers have filed
return in Form GSTR-4 (Annual)
without entering outward supplies in
table 6 and due to which, amount
paid through CMP-08s was credited
negative liability statement. Now,
Permanent fix is
deployed to production
via CR – 21592 on 31-
03-2022.
Agenda for 50th GSTCM Volume 1
Page 344 of 394
taxpayers are requesting to correct
the same. Recovery to be done. Total
amount to be recovered = 1,19,816 /-.
Taxpayer 1 -> 26110 CGST + 26110
SGST(Total=52220/-)
Taxpayer 2 -> 33798 CGST + 33798
SGST(Total=67596/-)
Discussion: EVP, GSTN stated thatsome taxpayers have filed return in Form GSTR-4 (Annual) without
entering outward supplies in table 6 and due to which amount paid through CMP-08s have been credited
to the Negative Liability Statement. These TPs had utilized the amount for future liability and had raised
tickets to recover the amount. CCT, WB stated that there might be more such cases. EVP, GSTN stated
that the issue had been deliberated earlier in the Law Committee and a list of such TPs had been sent to
jurisdictional Tax Officers to examine whether any amount is recoverable. He also stated that now a
check has been put in place whereby if any amount has been paid during the year then Table-6 needs to be
necessarily filled in without which the return would not be allowed to be filed.
Decision: ITGRC took note of the data fixes done by the GSTN.

Agenda for 50th GSTCM Volume 1
Page 345 of 394
6(c) Court Cases:
S.
No.
Issue reported No. of
Cases
Impacte
d
Module Detail Description Status
1 2 3 4 5 6
1.
Reverting APL 01 to
submitted status as APL
04/02 has been remanded
back by Hon`ble High
Courts.
14 Appeal
APL 01
Requests have been received
from various states to enable
Appellate authority to restore
APL 01 where either Appeal
orders APL 04 or APL 02 have
been remanded back by High
Courts of different States.
Functionality is not available for
remand back to Appellate
authority.
The remand back functionality
is still under development,
therefore, the disposed appeal
order has to be given reset from
the status of “Appeal disposed”
to “Appeal Submitted”.
Data fix provided and the
Appeal application ARNs
were restored to “Appeal
Submission” stage.
Discussion: EVP, GSTN stated that High Courts of different States have remanded back various appeal
orders to Appellate Authorities. Since the remand Functionality is not available for remand back to
Appellate authority, appeal order has been given reset from the status of “Appeal disposed” to “Appeal
Submitted”. He stated that the functionality is expected to be in production by next month.
Decision: ITGRC took note of the data fixes done by the GSTN.
To summarize, 20 issues including court cases were presented by GSTN for the consideration of
ITGRC during its 19th meeting.
Sixteen issues impacting 459 cases where there were technical issues with no financial implication
and where data was known were presented by GSTN which involved issues like taxpayers not being
able to file refunds due to reasons such as Meta Data Column missing in Invoice table of Hbase,
human errors such as wrongly creating temp ID for Advance Ruling instead of creating it on suomoto basis by tax officer etc. ITGRC took note of the data fixes in 453 cases and deferred 1 issue
impacting 6 cases.
Three technical issues affecting locally with financial implications and where the correct data was
known were thereafter discussed impacting 39867 cases. ITGRC took note of the data fixes carried
out by GSTN in all these cases.
Agenda for 50th GSTCM Volume 1
Page 346 of 394
ITGRC also took note of the data fixes carried out by GSTN in 14 Court cases wherein High Courts
had remanded the appeal orders back to Appellate Authorities.
Thereafter, Chairman, ITGRC thanked everyone for their time and also mentioned that one of the
members, Pr. Chief Commissioner, Delhi CT Zone, Ms. Mallika Arya was superannuating soon and
wished her all the very best.

Agenda for 50th GSTCM Volume 1
Page 347 of 394
Annexure-1
Centre:
i. Member (GST), CBIC – Sh. Shashank Priya (Chairman, ITGRC)
ii. Pr. Chief Commissioner, CGST, Delhi Zone – Ms. Mallika Arya
iii. DG, Systems CBIC, New Delhi– Dr. Sandeep Srivastava
States:
i. Chief Commissioner, State Tax, Gujarat – Sh. Samir Vakil
ii. Commissioner, State Tax, West Bengal – Sh. Khalid Aizaz Anwar
iii. Additional Excise & Taxation Commissioner, Haryana – Sh. Siddharth Jain
iv. Joint Commissioner (IT), State Tax, Tamil Nadu – Sh.Rasal Doss Solomon J.
GST Council Secretariat:
i. Additional Secretary, GSTCS- Sh. Pankaj Kumar Singh
ii. Joint Secretary, GSTCS- Ms. Ashima Bansal
iii. Joint Secretary, GSTCS- Ms. B. Sumidaa Devi
Special Invitees:
i. Executive Vice President, GSTN- Sh. DheerajRastogi
ii. Executive Vice President, GSTN- Sh. Nirmal Kumar

Agenda for 50th GSTCM Volume 1
Page 348 of 394
Annexure-2
Agenda on Data Fix issues
Technical Issues Requiring Data Fix of the Processed Incorrect Data through Backend
Utilities
The changes in GST law / Rules, the representations received from taxpayers and
other stakeholders require alterations to be continuously made in the GST System. GSTN has
therefore adopted an agile methodology of developing applications for GST System keeping
it modular to handle frequent changes in law and rules incorporated in a running application.
This has necessitated integrating all new application changes downstream being dependent
on the module undergoing the change and led to following concerns:
 Some corner scenarios owing to varying taxpayer actions and system
behaviour, when subjected to heavy load, go unhandled leading to
inconsistent data persisting in GST System.
 The data inconsistencies vary from ledger getting improper debits/credits,
the return details stored in the system having incorrect information relating
to situations where an irreversible commit has happened in the database.
 No option available to taxpayer to seek remedy in GST System leading to a
need of performing data fixes through auditable utilities.
These issues generally have been noticed after
 A complaint is raised by taxpayer/ tax officer
 Result of a periodic internal and external audits.
In order to resolve these issues, the processed incorrect data requires fixing, collecting
correct data besides solving the software/platform issues being faced by respective
stakeholders. Accordingly, GSTN has initiated fixing of technical issues identified, as per the
SOP approved by the ITGRC in the15thmeetingheld on 12/08/2021, which is as below:
x. Analysis of data discrepancy.
xi. Confirmation of discrepancy sought from MSP.
xii. Upon confirmation, utility to be created by MSP to extract similar cases from
GST System data.
xiii. A root cause analysis conducted to fix the issue and implemented by MSP in
consultation with GSTN to rectify data inconsistency.
xiv. Scripts created for data fix and tested in multiple cycles by MSP and GSTN.
xv. Approval note presented to competent authority to fix the issue.
xvi. After approval, audit entries created for each change affecting the data.
Agenda for 50th GSTCM Volume 1
Page 349 of 394
xvii. Scripts executed and post execution state of data stored for reference later.
xviii. List of all such changes to be presented and explained to GST policy wing &
ITGRC and periodic internal audit also to be undertaken.
Data Fix cases are accordingly presented to ITGRC for deliberations and decision
as mentioned in the attached Annexure.
Agenda for 50th GSTCM Volume 1
Page 350 of 394
Annexure
Technical Issues Requiring Data Fixes through Backend Utility (Period -04thFeb 2023 to 31
st Mar
2023)
Cases Requiring Internal Approval of SVP, EVP/CEO or Post facto Approval of ITGRC
S.
No. Issue reported
App
rove
d By
Dat
e of
Ap
pro
val
No.
of
Ca
ses
Im
pac
ted
Fin
anc
ial
Im
plic
atio
n
M
o
d
ul
e
Co
rr
ect
Da
ta
K
no
wn
/
No
t
K
no
wn
Detail Description Status
1 2 3 4 5 6 7 8 9 10
Cases having no financial implications
1
Meta Data Column
missing in Invoice
table of HBase.
When Taxpayer was
validating the
statement in Refund,
system was giving
error “RFFCAS1007” and not
allowing to file the
Refund for below two
mentioned types:
iii. Refund on
account of ITC
accumulated
due to Inverted
Tax Structure
iv. On account of
supplies made
to SEZ unit/
EVP
(Serv
ices)
22.
02.
202
3
22 No
G
S
T
R
-1
Kn
ow
n
Description of error
code:
RF-FCAS1007:
Something seems to
have gone wrong while
processing your
request. Please try
again. If error persists
quote error number {0}
when you contact
customer care for quick
resolution.
Meta Data column was
not present in “Invoice
Detail” table.
This was because we
have noticed
connection errors while
inserting data to
Code was fixed
in production
on 26thApril
2022.Old cases
are being fixed
by backend
query.
Return periods
involved are
Below are
return periods
for different
taxpayersSep
2019, Sep 2020,
Apr, May, Jul,
Sep, Oct, Dec
2021, Mar,
May, Jun, Jul,
Aug, Sep, Oct,
Nov, Dec 2022,
Agenda for 50th GSTCM Volume 1
Page 351 of 394
SEZ developer
(without
payment of
tax).
Invoice Detail table,
due to which invoices
went to error.
By the data fix,
invoices are enabled
for validation so that
the taxpayers can file
refund application.
Jan 2023
2
Taxpayers are able to
file GSTR4 without
clearing
liabilities.The
taxpayers were
getting error while
filing CMP-08 form
“'ERROR!! Liability
for previous tax
period is yet to be
paid'.
EVP
(Serv
ices)
24.
02.
202
3
1 No
C
M
P0
8
Kn
ow
n
Transaction handling
was not proper due to
mix of Transaction
Handling Manager/
Non Transaction
Handling Manager
transactions in GSTR4. Due to this, in case
of any failure rollback
was not done
completely from all the
respective data sources.
In this case, filing
status has been updated
as Fil in return filing
status table w/o
updating No in column
Is Open of Return
Liability Master ledger
table besides the
rollback of liability
setoff entries in ledger.
This is due to the fact
that after filing of the
quarterly GSTR-4
form, although ARN
has been generated and
it is being shown as
FILED to the taxpayer,
the posting in the
ledger has been rolled
partially back due to
technical issue
Permanent fix
already released
to production
on 14Jun’21 via
ICR-12663.
Old cases are
being fixed by
backend query.
Return periods
involved are
09/2017,
12/2017,
03/2018,
06/2018,
09/2018,
12/2018,
03/2019
Agenda for 50th GSTCM Volume 1
Page 352 of 394
(Transaction Handling
Manager/ Non
Transaction Handling
Manager).
3
Correction in cash
ledger balance due to
credit/ debit happened
simultaneously
EVP
(Serv
ices)
06.
03.
202
3
80 No
C
as
h
L
ed
ge
r
Kn
ow
n
Some tickets were
received from
taxpayers at GST
Helpdesk for correction
in Cash Ledger
balance. Issue was
identified as balance
was not updated due to
credit/ debit happening
simultaneously. On
further analysis, 80
cases were identified so
far wherein either
credit or debit entry
was missed to update in
Cash Ledger balance.
The issue had occurred
due to debit/ credit
entry in the cash ledger
happening at the same
time, which led to
incorrect cash balance
in the cash ledger. The
reason for occurrence
of the issue is due to
dirty read where the
two transactions
happened
simultaneously and
read the same record
CR#21982 has
raised for
permanent fix.
Data are being
fixed by
backend query
till code fix is
done.
4
Taxpayers have raised
ticket on Helpdesk
regarding differences
in data saved in
HBase (seen in
GSTR3B ) and
Ledger.
EVP
(Serv
ices)
24.
03.
202
3
6 No
G
S
T
R
-
3
B
Kn
ow
n
Taxpayers have filed
the returns but there is
mismatch in the data
entered vis-à-vis
payment made.Ledgers
are updated on the
basis of payment table
RQM: 22721
has created for
permanent
fix.Data are
being fixed by
backend query
till the
Agenda for 50th GSTCM Volume 1
Page 353 of 394
whereas pdf is
generated on the basis
of data entered.This
issue is because of
1.Nil filling is allowed
even if user have auto
populated data from
GSTR1
2. Race condition due
to which system is not
able to verify if
previous save is in inprogress state.
permanent fix is
done.
Return periods
are given below
for different tax
payers
Mar 2018, Nov
2019, Aug
2022, Jan 2023
5
Rectification of
rejected original
record for already
accepted amendment
record.
EVP
(Serv
ices)
24.
03.
202
3
1 No
G
S
T
R
-7
Kn
ow
n
Deductor has amended
the original record in
favour of a different
deductee, but the
original record was not
‘deferred’ which is
supposed to get defer.
The status of Original
record needs to be
‘deferred’ after it was
amended. But it was
not ‘deferred’ due to
technical glitchallows
R2X user to take action
on that Original record.
Permanent fix
is done.
Old cases are
being fixed by
backend
query.Return
periods are Sep
2021 and Nov
2021
6
Transferring the cash
balance available in
the Temp ID.
232300000422ARD
(Advance Ruling) to
332300000076TMP
(Suo-moto Reg.) in
the respective
major/minor Heads.
The amount has been
incorrectly deposited
by the taxpayer in the
EVP
(Serv
ices)
31.
03.
202
3
1 No
C
as
h
L
ed
ge
r
Kn
ow
n
TN State Intelligence
officer has wrongly
created Temp ID
(232300000422ARD)
for a taxpayer Tvl.
Vinsun Enterprises
(GSTIN
23AASPJ8702E1ZR.)
on front office (FO)
portal through “
Generate User ID for
Unregistered applicant”
instead of back office
ICR 789175 has
been raised to
fix the issue
from backend.
Agenda for 50th GSTCM Volume 1
Page 354 of 394
Temp ID meant for
Advance Ruling.
(BO) portal for making
payment against the
offence booked. The
taxpayer also wrongly
deposited a sum of Rs.
9,10,478/- using the
temporary Id wrongly
created on the FO
portal.
Subsequently the TN
officer generated
another Temp ID for
Suo-moto registration
(332300000076TMP)
on BO portal and
issued demand for Rs.
9,10,478/ in Form GST
DRC-07-.
Data correction was
requested by Tamil
Nadu team to transfer
cash ledger balance
from Temp. Id
(Advance Ruling) to
Temp If (SuomotoReg) to enable the
taxpayer to discharge
the liability.
This is a human error
by - Tamil Nadu State
Intelligence officer
7
Status is suspended in
GST Portal, whereas
it is active in CBIC
System
EVP
(Serv
ices)
20.
03.
202
3
294 No
R
eg
ist
ra
ti
o
n
Kn
ow
n
When the CBIC
technical person,
updating the status
column in the
registration database on
16th, 17th and
18thFebruary 2023, few
of the old records in the
table got initiated the
Fixed by
backend query.
Agenda for 50th GSTCM Volume 1
Page 355 of 394
Suo – Moto
Cancellation task due
to technical error and it
was not initiated by
CBIC officers and
GSTINs got suspended.
So far, CBIC has
identified 294 cases
which are active in the
CBIC officer's
dashboard and
suspended in the GSTN
portal. To resolve those
cases, CBIC requested
to verify and make the
GSTINs as Active
through data fix.
This has happened due
to technical issue at
CBIC end.
8
Non-credit of
Claimed amount after
issuance of
Deficiency memo by
the Tax officer.
EVP
(Serv
ices)
11.
02.
202
3
1 No
R
ef
u
n
d
Kn
ow
n
The taxpayer with the
GSTIN
07AGJPS2553F2Z9
has filed refund
application under the
category “Refund of
ITC on Export of
Goods & Services
without Payment of
Tax”. The officer has
issued Deficiency
memo. However, the
claimed amount is not
credited to the
taxpayer. The amount
involved in Rs
3,68,774/-
On issuance of
Deficiency memo,
Case table has to be
updated with DMI
Data fix is
given to credit
the amount of
Rs 3,68,774/-
Agenda for 50th GSTCM Volume 1
Page 356 of 394
status and reversal
credit entry has to be
entered in Taxpayer’s
ledger. Only case table
status is updated but
ledger entry didn’t
happen.The functional
call for ledger update is
getting skipped due to
logic issue in backend
API call.
9
Duplicate invoices
(GSTR 1 & GSTR
1E) in the export table
leading to negative
balance in the Export
ledger.
EVP
(Serv
ices)
Dif
fere
nt
dat
es
1 No
R
ef
u
n
d
Kn
ow
n
During the initial
period of GST (July
2017 – September
2017), GSTR 1E was
available for the
taxpayers to report
export invoices. Some
taxpayers have reported
the export invoices in
GSTR 1E and the
quarterly GSTR 1. This
resulted in double
reporting of export
invoices. This double
reporting created
negative balance in the
export ledger and the
invoices are not
transmitted to
ICEGATE for IGST
refund.
For the impacted
taxpayers, the export
ledger will be given
offset equivalent to
invoice amount which
was reported twice.
This will make the
export ledger either
positive or zero for
transmitted invoices to
ICEGATE for IGST
Rs. 18296.28 /-
is given as
offset in the
export ledger.
Agenda for 50th GSTCM Volume 1
Page 357 of 394
refund.The GSTINs
which is given offset in
export ledger is
07AAPPS0293J1Z6.
10
Negative balance in
Export ledger and the
taxpayer not able to
resolve the issue due
to merger of Dadra
Nagar Haveli with
Daman & Diu. This
resulted in nontransmission of export
invoices to
ICEGATE.
EVP
(Serv
ices)
22-
02-
202
3
1 No
R
ef
u
n
d
Kn
ow
n
Taxpayers of Daman &
Diu were given a new
GSTINs with state
code ‘26’ and the
GSTINs with state
code ‘25’ were
disabled for filing any
new forms. A taxpayer
has a negative balance
of Rs. 436110 in the
export ledger in the old
GSTIN
25AAACW1018K1ZJ
due to which export
invoices are not getting
transmitted to
ICEGATE. The
taxpayer is not having
any GSTR 3B return to
be filed in their old
GSTIN. Therefore,
there is no option
available for taxpayer
to pay the liability in
the old GSTIN and
make the export ledger
as Zero/positive for
transmission of
invoices.
In this case, the
taxpayer was asked to
pay the liability of old
GSTIN of Rs436110/-
through new GSTIN by
filing DRC 03. The
payment was made by
the taxpayer. The
Fixed
Agenda for 50th GSTCM Volume 1
Page 358 of 394
export ledger of old
GSTIN was given an
offset equivalent to the
amount of Rs436110.
Now, invoices are
transmitted to
ICEGATE.
11
Rectification of
Refund order (RFD
06)
EVP
(Serv
ices)
Dif
fere
nt
dat
es
2 No.
R
ef
u
n
d
(F
or
m
G
S
T
R
F
D
-
0
6)
Kn
ow
n
Representations are
received from different
states to reset the RFD
06 as RFD 06 has been
issued with incorrect
amount. In these cases,
no payment advice is
not issued by the tax
officer.
As the functionality for
Rectification of RFD
06 is in documentation
stage, RFD 06 was
given a reset to enable
the officer to issue
RFD 06 one more time.
The GSTINs which are
involved in this reset
are
27AACCL5620N1ZA,
02AAACB2894G1ZZ.
Issue is fixed
12
Tax Officers has
issued Audit
Notice(ADT-01) with
incorrect Financial
Year.
EVP
(Serv
ices)
24.
02.
202
3
6 No
A
u
di
t
Kn
ow
n
Officers has mistakenly
selected incorrect
values for Financial
Year From, Financial
Year To, Audit Period
From, and Audit Period
To While Issuing the
“Notice For
Conducting of Audit
(ADT-01)”. Now
Officers wants to
Rectify the Issue. It
As this was a
human error so
code fix was
not required.
Data were fixed
by backend
query.
Agenda for 50th GSTCM Volume 1
Page 359 of 394
was a human error
where Tax officer has
selected wrong values
from dropdowns.
For a permanent
solution, a functionality
is rolled out in
production where
officer can close the
case and then start a
fresh audit case (CR
22194).
13
The state nodal
officer of Uttar
Pradesh has requested
to restore the
registration from
Normal taxpayer to
Composition taxpayer
from date-27-07-2022
as per the appellate
order dated-27-07-
2022.
SVP
(Serv
ices)
25.
02.
202
3
1 No
R
eg
ist
ra
ti
o
n
Kn
ow
n
For the GSTIN
9ACUPA8512D1ZM,
The tax officer has
converted the category
from Composition to
Normal taxpayer.
Against the Order
issued by Registration
officer, the taxpayer
filed the appeal before
the Appellate authority.
The Appellate authority
allowed the appeal
filed by the taxpayer
and ordered the
department to convert
the said GSTIN from
Normal to Composition
with retrospective
effect (Date as
27/07/2022).
No functionality is
available to change
from Normal to
Composition with
retrospective effect.
Hence backend fix was
required.
Data is fixed
Agenda for 50th GSTCM Volume 1
Page 360 of 394
14
Taxpayer is not able
to file Form GST
CMP 02 for opting
Composition levy
scheme (CLS) as a
trader of Tobacco
products.
EVP
(Serv
ices)
01.
04.
202
3
3 No
R
eg
ist
ra
ti
o
n
Kn
ow
n
The taxpayers who
register themselves as
‘traders’ in GST portal
for dealing with
Tobacco products, the
portal doesn’t allow
such taxpayer from
filing the Form GST
CMP 02 to opt for
CLS.
CLS is restricted for
the Manufacturers of
goods like tobacco, ice
creams, pan masala,
ash bricks etc. GST
system has a validation
which limits the
taxpayers who deals in
such goods irrespective
of the business activity
of the Registered
persons
(Manufacturers,
Traders, Wholesaler,
Retailer etc) to opt for
CLS. This validation
should have been kept
only for the
Manufacturers and not
for the traders and
others. A CR is given
for modifying the
validation.
Data is fixed.
Agenda for 50th GSTCM Volume 1
Page 361 of 394
15
Extension of the time
limit for filing FORM
GST ITC-01
EVP
(Serv
ices)
Dif
fere
nt
dat
es
1 No
IT
C
-
0
1
Kn
ow
n
Commissioner State
Taxes Government of
Jharkhand had issued a
notification in Mar
2023 for extension of
period for filing form
ITC-01 to claim credit
on the stock after
moving out of
composition scheme in
favor of M/s Deepsons
Auto center
(20ADRPA2175N1ZJ).
Earlier the tax payer
had filled a writ
petition before the
Hon'ble High Court of
Jharkhand. Hon'ble
court has asked the tax
payer to approach
Commissioner SGST
for redressal of
grievances.
Accordingly the due
date have been
extended to allow filing
of the aforesaid form.
Extension to
ITC-01 for
GSTIN were
given on 14
th
Apr 2023.
16
Reset of RFD 05 –
Technical issue at
CBIC
EVP(
Servi
ces)
21.
04.
202
3
38 No
R
F
D
0
5
Kn
ow
n
When the CBIC tax
officer issues Payment
advice (RFD 05) for
the IGST refund
applications autogenerated by GST
system, ‘Zero’ value is
being received in GST
system through G2G
API. Due to these zero
values, these payment
advices are not sent to
PFMS for
disbursement. These
RFD 05s have to be
given reset from the
backend so that CBIC
Data fix will be
given after peak
filing
(25.04.2023)
Agenda for 50th GSTCM Volume 1
Page 362 of 394
can resend the payload
of RFD 05 through
G2G API.
In one case, to comply
with the order of High
court of Bombay, RFD
05 is loaded with the
values received from
field formation (cross
verified with the values
sent by DG systems)
and sent to PFMS for
disbursement.
Cases having Financial Implications:
1 Reversal of late fee in
GSTR-3B form
EVP
(Serv
ices)
22.
02.
202
3
1 Yes
G
S
T
R
-
3
B
Kn
ow
n
As per the Notification
No. 50/2017 Central
Tax Dated 24 Oct
2017, late fee of
GSTR3B for return
period August,
September 2017 was
required to be waived
off for all taxpayers.
Late Fee was charged
for taxpayer with
GSTIN id -
08AJLPJ6421E1ZB for
August,2017 and
September 2017 but it
was not refunded for
him.
Taxpayer has raised a
ticket to provide the
refund for the late fee
paid by him for August
and September 2017
return periods.
While extracting the
list of taxpayers who
had paid late fee on
delayed filing of return
Refund of late
fee had given as
per the
Notification
No. 50/2017
Central Tax
Dated 24 Oct
2017 and not
due to defect.
Return periods
involved are
August,
September
2017.
Agenda for 50th GSTCM Volume 1
Page 363 of 394
in Form GSTR-3B for
the months of August
and September, 2017
for refunding the same,
somehow, the
complainant was
missed from the list
and no late fee was
refunded to the said
taxpayer.
Refund of late fee of
Rs.6400/-(Rs.3200/- in
CGST and Rs. 3200/-
in SGST)
2
Correction of
Decimal values in
Credit Ledger
EVP
(Serv
ices)
06.
03.
202
3
398
64 Yes
C
re
di
t
L
ed
ge
r
Kn
ow
n
Taxpayer is unable to
utilize amount of Rs.
0.5 under CGST &
SGST tax heads of
credit ledger, As we are
not showing the
decimal values on the
UI for ITC .There are
39864 taxpayers for
whom the values in the
ITC ledger are in
decimals. The decimal
values need to be
rounded off to nearest
rupee.
• Where amount is
greater than or
equal to 50 paise,
the same will be
upward rounded
off and if the
amount is less than
50 paise, the same
will be downward
rounded off.
• The net financial
impact is Rs
Data fix has
done by
backend query.
Agenda for 50th GSTCM Volume 1
Page 364 of 394
1630.54/ (CGST:
Rs. 847.68/-,
SGST: Rs. 764.2/-,
IGST: Rs. 19.71/-
and CESS: Rs.
1.05/-)
3
Taxpayers have filed
return in Form GSTR4 (Annual) without
entering outward
supplies in table 6
EVP
(Serv
ices)
27.
03.
202
3
2 Yes
G
S
T
R
-
0
4
Kn
ow
n
Taxpayers have filed
return in Form GSTR-4
(Annual) without
entering outward
supplies in table 6 and
due to which amount
paid through CMP-08s
have been credited to
the Negative Liability
Statement which can be
utilised for future
liability. Though,
amount from the
statement was nullified
but few case were
missed out.Taxpayers
have filed return in
Form GSTR-4
(Annual) without
entering outward
supplies in table 6 and
due to which, amount
paid through CMP-08s
was credited negative
liability statement.
Now, taxpayers are
requesting to correct
the same.Recovery to
be done.Total amount
to be recovered =
1,19,816 /-.
Taxpayer 1 -> 26110
CGST + 26110
SGST(Total=52220/-)
Taxpayer 2 -> 33798
CGST + 33798
SGST(Total=67596/-)
Permanent fix
is deployed to
production via
CR – 21592 on
31-03-2022.
Agenda for 50th GSTCM Volume 1
Page 365 of 394
Court Cases:
1
Reverting APL 01 to
submitted status as
APL 04/02 has been
remanded back by
Hon`ble High Courts
EVP
(Serv
ices)
Dif
fere
nt
dat
es
14
No
A
p
pe
al
A
P
L
0
1
Kn
ow
n
Requests have been
received from various
states to enable
Appellate authority to
restore APL 01 where
either Appeal orders
APL 04 or APL 02
have been remanded
back by High Courts of
different
States.Functionality is
not available for
remand back to
Appellate authority.
The remand back
functionality is still
under development,
therefore, the disposed
appeal order has to be
given reset from the
status of “Appeal
disposed” to “Appeal
Submitted”.
Data fix
provided and
the Appeal
application
ARNswereresto
red to “Appeal
Submission”
stage.
Agenda for 50th GSTCM Volume 1
Page 366 of 394
Annexure-3

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Agenda for 50th GSTCM Volume 1
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Agenda Item 7: Scheme of Budgetary Support under GST regime in lieu of earlier Excise duty
exemption schemes to eligible manufacturing units under different Industrial Promotion Schemes
of the Government of India.
Industrial units located in the Himalayan and North Eastern States have been seeking
implementation of a mechanism for reimbursement of balance 42% of the Central Goods and Services
Tax (“CGST”) and 21% of the Integrated Goods and Services Tax (“IGST”) paid by them in cash along
with appropriate interest in addition to 58% of net CGST and 29% net IGST being reimbursed by the
Central Government under the Scheme of budgetary support brought out by Department for Promotion of
Industry and Internal Trade in October, 2017. In this regard, several Writ Petitions were filed in the
Hon’ble Supreme Court of India and the High Courts of various States challenging the Notification F. No.
10(1)/2017-DBA-II/NER dated 05.10.2017 (enclosed as Annexure-A) issued by the Department for
Promotion of Industry and Internal Trade on the grounds that the Government had replaced the incentive
available to the industrial units under the erstwhile indirect tax regime viz. exemption from 100% of
output central excise duty liability was replaced with and limited to reimbursement of 58% of net CGST
and 29% net IGST paid in cash by the eligible manufacturing units after utilizing the credit available. The
units had made heavy investments in the States based on different Industrial Promotion Schemes of the
Government of India as effectuated by Central Excise Notification Nos. 49 and 50/2003 dated
10.06.2003 and Notification No. 20/2007 dated 25.04.2007.
2. The Hon’ble Supreme Court vide judgement dated 17.10.2022 (enclosed as Annexure-B as a
separate booklet) in CA No. 7405/2022 [Arising out of SLP (Civil) No. 12397 of 2020] filed by M/s
Hero Motocorp Ltd on the issue held that the appellant’s claim based on promissory estoppel was without
substance. Though the appellants might not have a claim in law, the Court found that they did have a
legitimate expectation that their claim deserved due consideration and further gave the following
directions: -
“79. It is further to be noted that the GST Council is a constitutional body. It has powers to make
recommendations on wide-ranging issues concerning GST, including grant of exemptions from the GST.
It also has power to make recommendations with regard to special provisions governing North Eastern
and Himalayan States. Taking into consideration that the units like the appellants have been established
in the Himalayan and North-Eastern States based on the said O.M. of 2003 and that lakhs of persons are
employed in such industries, we are of the view that it will be appropriate that such States should also
consider to correspondingly reimburse such units out of the share of revenue received by them through
devolution from the Central Government. We further find that it will also be appropriate that the GST
Council considers making appropriate recommendations to the States in that regard.
80. We, therefore, permit the appellants to make representations to the respective State
Governments as well as to the GST Council. We also request the State Governments and the GST Council
to consider such representations, if made, in accordance with what has been observed herein above in an
expeditious manner.”
3. Various High Courts including Hon’ble Delhi High Court vide order dated 22.11.2022 in W.P.
(C) 11103/2019 in the matter of M/s Cavendish Industries Limited, Hon’ble High Court of Meghalaya
vide order dated 15.11.2022 in W.P. (C) 165/2019 in the matter of M/s Star Cement Ltd., W.P. (C)
166/2019 in the matter of M/s Star Cement Meghalaya Ltd. and W. P. (C) 384/2019 in the matter of M/s
Agenda for 50th GSTCM Volume 1
Page 380 of 394
Dalmia Cement (Bharat) Limited and Hon’ble High Court of Gauhati vide order dated 31.10.2022 in
W.P. (C) 2208/2019 in the matter of M/s Star Cement Ltd. (Guwahati Grinding Unit) have relied upon the
above cited judgement of the Hon’ble Supreme Court and allowed the petitioners to make representations
to the GST Council and the States.
4. In view of directions given by the Hon’ble Supreme Court and High Courts, various
representations have been received wherein GST Council has been requested to devise an appropriate
mechanism and direct the State Governments to reimburse balance 42% of the CGST and 21% of IGST
paid by them during the eligible period along with applicable interest in order to make the projects located
in Himalayan and North Eastern states economically viable.
5. In this regard, it is pertinent to mention that the said issue was discussed in the 2nd GST Council
meeting held on 30.09.2016 wherein it was observed that once existing tax incentive schemes were
withdrawn, the taxes paid would be accounted for in the Consolidated Fund of India and 42% of the
amount would be devolved to the States. The Centre, therefore, could be expected to only reimburse the
units out of the remaining 58% of the fund which was not part of the devolution and the States would also
need to correspondingly reimburse such units out of the share of revenue received through devolution and
the Council approved the following: -
“(i) All entities exempted from payment of indirect tax under any existing tax incentive scheme
shall pay tax in the GST regime.
(ii) The decision to continue with any incentive given to specific industries in existing industrial
policies of States or through any schemes of the Central Government, shall be with the concerned
State or Central Government.
(iii) In case the State or Central Government decides to continue any existing
exemption/incentive/deferral scheme, then it shall be administered by way of a reimbursement
mechanism through the budgetary route, the modalities for which shall be worked out by the
concerned State/Centre.”
6. The Ministry of Commerce & Industry, Department for Promotion of Industry and Internal Trade
subsequently notified the Scheme of Budgetary Support vide F. No. 10(1)/2017-DBA-II/NER dated
05.10.2017 for reimbursing 58% of Central Tax paid through debit in cash ledger after utilizing input tax
credit of Central Tax and Integrated Tax and 29% of net IGST in lieu of earlier 100% excise duty
exemption available to units located in the States of Jammu and Kashmir (now UT of Jammu and
Kashmir and UT of Ladakh), Uttarakhand, Himachal Pradesh and North East including Sikkim.
7. The current position of reimbursement of balance 42% of net CGST and 21% net IGST by the
eleven states covered under the Scheme of budgetary support is as follows:
S.No. State Whether
reimbursing balance
42% CGST
Whether
reimbursing balance
21% IGST
1 Jammu and Kashmir Yes No
2 Himachal Pradesh No No
3 Uttarakhand No No
Agenda for 50th GSTCM Volume 1
Page 381 of 394
4 Arunachal Pradesh No No
5 Assam No No
6 Manipur No No
7 Meghalaya No No
8 Mizoram No No
9 Nagaland No No
10 Sikkim No No
11 Tripura No No

8. As approved in the 2nd GST Council Meeting, the decision on incentivizing the units by way of
reimbursement through budgetary support lies with the concerned State or Central Government. In this
regard, views were sought from the States concerned and comments have been received from the State of
Uttarakhand and Meghalaya regarding reimbursement of balance 42% CGST & 21% IGST wherein they
have expressed that GST revenue growth of the States was not satisfactory and that substantial portion of
tax collected from the State is moving out in the form of IGST. Further, the States are also implementing
their own industrial policy and have undertaken several policy measures and incentives in favour of
industries including those which were eligible for drawing benefits under the earlier Excise duty
exemption. Therefore, the State Governments are not in a position to reimburse the remaining portion of
CGST/IGST.
9. However, keeping in view the directions given by Hon’ble Supreme Court vide its judgement dated
17.10.2022 and further directions given by Hon’ble High Court of Delhi, Meghalaya and Gauhati, the
issue is placed before the GST Council for further deliberation and consideration.

Agenda for 50th GSTCM Volume 1
Page 382 of 394
Annexure-A
[TO BE PUBLISHED IN THE GAZETTE OF INDIA,
EXTRAORDINARY PART-I, SECTION-I ]
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION


NOTIFICATION

New Delhi, the 5th
October, 2017


Subject: Scheme of budgetary support under Goods and Service Tax Regime to the units located in
States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including
Sikkim.

F. No. 10(1)/2017-DBA-II/NER -In pursuance of the decision of the Government of India to
provide budgetary support to the existing eligible manufacturing units operating in the States of Jammu
& Kashmir, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under different
Industrial Promotion Schemes of the Government of India, for a residual period for which each of the
units is eligible, a new scheme is being introduced. The new scheme is offered, as a measure of goodwill,
only to the units which were eligible for drawing benefits under the earlier excise duty exemption/refund
schemes but has otherwise no relation to the erstwhile schemes.
1.2 Units which were eligible under the erstwhile Schemes and were in operation through exemption
notifications issued by the Department of Revenue in the Ministry of Finance, as listed under para 2
below would be considered eligible under this scheme. All such notifications have ceased to apply w.e.f.
01.07.2017 and stands rescinded on 18.07.2017 vide notification no. 21/2017 dated 18.07.2017. The
scheme shall be limited to the tax which accrues to the Central Government under Central Goods and
Service Act, 2017 and Integrated Goods and Services Act, 2017, after devolution of the Central tax or the
Integrated tax to the States, in terms of Article 270 of the Constitution.
2. The erstwhile Schemes which were in operation on 18.07.2017 were as follows:
2.1 Jammu & Kashmir- Notification nos. 56/2002-CE dated 14.11.2002, 57/2002-CE
dated
14.11.2002 and 01/2010-CE dated 06.02.2010 as amended from time to time;
Agenda for 50th GSTCM Volume 1
Page 383 of 394
2.2 Himachal Pradesh & Uttarakhand- Notification nos. 49/2003-CE dated 10.06.2003
and 50/2003-CE dated 10.06.2003 as amended from time to time;
2.3 North East States including Sikkim- Notification no 20/2007-CE dated 25.04.2007 as
amended from time to time.
3. SHORT TITLE AND COMMENCEMENT
3.1 The scheme shall be called Scheme of Budgetary Support under Goods and Services Tax (GST)
Regime to the units located in State of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North
Eastern States including Sikkim. The said Scheme shall come into operation w.e.f. 01.07.2017 for an
eligible unit (as defined in para 4.1) and shall remain in operation for residual period (as defined in para
4.3 ) for each of the eligible unit in respect of specified goods (as defined in para 4.2 ). The overall
scheme shall be valid upto 30.06.2027.
3.2 OBJECTIVE:
The GST Council in its meeting held on 30.09.2016 had noted that exemption from payment of indirect
tax under any existing tax incentive scheme of Central or State Governments shall not continue under the
GST regime and the concerned units shall be required to pay tax in the GST regime. The Council left it
to the discretion of Central and State Governments to notify schemes of budgetary support to such units.
Accordingly, the Central Government in recognition of the hardships arising due to withdrawal of above
exemption notifications has decided that it would provide budgetary support to the eligible units for the
residual period by way of part reimbursement of the Goods and Services Tax, paid by the unit limited to
the Central Government’s share of CGST and/or IGST retained after devolution of a part of these taxes
to the States.
4. DEFINITIONS
4.1 ‘Eligible unit’ means a unit which was eligible before 1st
day of July, 2017 to avail the benefit of abinitio exemption or exemption by way of refund from payment of central excise duty under notifications,
as the case may be, issued in this regard, listed in para 2 above and was availing the said exemption
immediately before 1st day of July, 2017. The eligibility of the unit shall be on the basis of application
filed for budgetary support under this scheme with reference to:
(a) Central Excise registration number, for the premises of the eligible manufacturing unit, as it existed prior
to migration to GST; or
(b) GST registration for the premises as a place of business, where manufacturing activity under exemption
notification no. 49/2003-CE dated 10.06.2003 and 50/2003-CE dated
10.06.2003 were being carried prior to 01.07.2017 and the unit was not registered under Central Excise.
4.2 ‘Specified goods’ means the goods specified under exemption notifications, listed in paragraph 2,
which were eligible for exemption under the said notifications, and which were being manufactured and
cleared by the eligible unit by availing the benefit of excise duty exemption, from:
(a) The premises under Central Excise with a registration number, as it existed prior to migration to GST; or
(b) The manufacturing premises registered in GST as a place of business from where the said goods under
exemption notification no. 49/2003-CE dated 10.06.2003 and 50/2003-CE dated 10.06.2003 were being
cleared
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4.3 ‘Residual period’ means the remaining period out of the total period not exceeding ten years, from
the date of commencement of commercial production, as specified under the relevant notification listed
in paragraph 2, during which the eligible unit would have been eligible to avail exemption for the
specified goods. The documentary evidence regarding date of commercial production shall be submitted
in terms of para 5.7.
5. DETERMINATION OF THE AMOUNT OF BUDGETARY SUPPORT 5.1 The amount
of budgetary support under the scheme for specified goods manufactured by the eligible
unit shall be sum total of –
(i) 58% of the Central tax paid through debit in the cash ledger account maintained by the unit in terms of
sub-section(1) of section 49 the Central Goods and Services Act, 2017 after utilization of the Input tax
credit of the Central Tax and Integrated Tax.
(ii) 29% of the integrated tax paid through debit in the cash ledger account maintained by the unit in terms of
section 20 of the Integrated Goods and Services Act, 2017 after utilization of the Input tax credit Tax of
the Central Tax and Integrated Tax.
Provided where inputs are procured from a registered person operating under the Composition Scheme
under Section 10 of the Central Goods and Services Act, 2017 the amount i.e. sum total of (i) & (ii)
above shall be reduced by the same percentage as is the percentage value of inputs procured under
Composition scheme out of total value of inputs procured.
Explanation:-
Explanation-I
a Sum total worked out under clause (i) & (ii) Rs.200
b Percentage value of inputs procured under Composition
Scheme out of total value of inputs procured
20%
c Admissible amount out of (a) above Rs(200-20% of
200) = Rs.160
Explanation- II
(a) Calculation of (ii) shall be followed by calculation of (i)
(b) To avail benefit of this scheme, eligible unit shall first utilize input tax credit of Central tax and
Integrated tax and balance of liability, if any, shall be paid in cash and where this condition is not
fulfilled, the reimbursement sanctioning officer shall reduce the amount of budgetary support
payable to the extent credit of Central tax and integrated tax, is not utilized for payment of tax.
5.2 The above 58% has been fixed taking into consideration that at present Central Government
devolves 42% of the taxes on goods and services to the States as per the recommendation of the
14th Finance Commission.
5.3 Notwithstanding, the rescinding of the exemption notifications listed under para 2 above, the
limitations, conditions and prohibitions under the respective notifications issued by Department
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of Revenue as they existed immediately before 01.07.2017 would continue to be applicable
under this scheme. However, the provisions relating to facility of determination of special rate
under the respective exemption notifications would not apply under this scheme.
5.4 Budgetary support under this scheme shall be worked out on quarterly basis for which claims
shall be filed on a quarterly basis namely for January to March, April to June, July to September
& October to December.
5.5 Any unit which is found on investigation to over-state its production or make any misdeclaration
to claim budgetary support would be made in-eligible for the residual period and be liable to
recovery of excess budgetary support paid. Activity relating to concealment of input tax credit,
purchase of inputs from unregistered suppliers (unless specifically exempt from GST
registration) or routing of third party production or other activities aimed at enhancing the
amount of budgetary support by mis-declaration would be treated as fraudulent activity and,
without prejudice to any other action under law may invite denial of benefit under the scheme
ab-initio. The units will have to declare total procurement of inputs from unregistered suppliers
and from suppliers working under Composition Scheme under CGST Act, 2017.
5.6 The grant of budgetary support under the scheme shall be subject to compliance of provisions
relating to any other law in force.
5.7 The manufacturer applying for benefit under this scheme for the first time shall also file the
following documents:
(a) the copy of the option filed by the manufacturer with the jurisdictional Deputy Commissioner/
Assistant Commissioner of Central Excise officer at the relevant point of time, for availing the
exemption notification issued by the Department of Revenue;
(b) document issued by the concerned Director of Industries evidencing the commencement of commercial
production
(c) the copy of last monthly/quarterly return for production and removal of goods under exemption
notification of the Department of Revenue.
(d) An Affidavit-cum-indemnity bond, as per Annexure A, to be submitted on one time basis, binding itself
to pay the amount repayable under para 9 below.
Any other document evidencing the details required in clause (a) to (c) may be accepted with the
approval of the Commissioner.
5.8 For the purpose of this Scheme, “manufacture” means any change(s) in the physical object resulting
in transformation of the object into a distinct article with a different name or bringing a new object into
existence with a different chemical composition or integral structure. Where the Central Tax or
Integrated Tax paid on value addition is higher than the Central Tax or Integrated Tax worked out on the
value addition shown in column (4) of the table below, the unit may be taken up for verification of the
value addition:
Table
Serial
No.
Chapter Description of goods Rate
(%)
Description of inputs for
manufacture of goods in column
(3)
(1) (2) (3) (4) (5)
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1. 17 or 35 Modified starch or glucose 75 Maize, maize starch or tapioca starch
2. 18 Cocoa butter or powder 75 Cocoa beans
3. 25 Cement 75 Lime stone and gypsum
4. 25 Cement clinker 75 Lime stone
5. 29 All goods 29 Any goods
6. 29 or 38 Fatty acids or glycerine 75 Crude palm kernel, coconut, mustard
or rapeseed oil
7. 30 All goods 56 Any goods
8. 33 All goods 56 Any goods
9. 34 All goods 38 Any goods
10. 38 All goods 34 Any goods
11. 39 All goods 26 Any goods
12. 40 Tyres, tubes and flaps 41 Any goods
13. 72 Ferro alloys, namely, ferro chrome,
ferro manganese or silico manganese
75 Chrome ore or manganese ore
14. 72 or 73 All goods 39 Any goods, other than iron ore
15. 72 or 73 Iron and steel products 75 Iron ore
16. 74 All goods 15 Any goods
17. 76 All goods 36 Any goods
18. 85 Electric motors and generators,
electric generating sets and parts
thereof
31 Any goods
19. Any chapter Goods other than those mentioned
above in S.Nos.1 to 18
36 Any goods

Explanation: For calculation of the value addition the procedure specified in notification no 01/2010-CE
dated 06.02.2010 of the Department of Revenue as amended from time to time shall apply mutatismutandis.
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5.9.1 In cases where an entity is carrying out its operations in a State from multiple business
premises, in addition to manufacture of specified goods by the eligible unit, under the same GST
Identification Number (GSTIN) as that of the eligible unit, the eligible unit shall submit
application for reimbursement of budgetary support alongwith additional information, duly
certified by a Chartered Accountant, relating to receipt of inputs, input tax credit involved on the
inputs or capital goods received by the eligible unit and quantity of specified goods
manufactured by the eligible unit vis-a-vis the inputs, input tax credit availed by the registrant
under the given GSTIN.
5.9.2 Under GST, one business entity having multiple business premises would generally have one
registration in a State and it may so happen that only one of them (eligible unit) was operating
under Area Based Exemption Scheme. In such situations where inputs are received from another
business premises of (supplying unit) of the same registrant (GSTIN) by, the details of input tax
credit of Central Tax or Integrated Tax availed by the supplying unit for supplies to the eligible
unit shall also be submitted duly certified by the Chartered Accountant.
The jurisdictional Deputy/Assistant Commissioner in such cases shall sanction the reimbursement of the
budgetary support after reducing input tax credit relatable to inputs used by the supplying unit.
6. INSPECTION OF THE ELIGIBLE UNIT
6.1 The Budgetary Support under the Scheme shall be allowed to an eligible unit subject to an inspection
by a team constituted by DIPP for every State to scrutinize in detail the implementation of the previous
schemes. The inspection report shall be uploaded by the inspection team on ACES-GST portal of the
Central Board of Excise & Customs (CBEC) and shall be made available to the jurisdictional
Deputy/Assistant Commissioner of the Central Tax on the portal before sanction of the budgetary
support. Budgetary support will be released only after the findings to these teams are available. Provided
that where delay is expected in such findings of the inspection, the Deputy/ Assistant Commissioner of
Central Taxes may sanction provisional reimbursement to the eligible unit. Such provisional
reimbursement shall not continue beyond a period of six months.
7. MANNER OF BUDGETARY SUPPORT
7.1 The manufacturer shall file an application for payment of budgetary support for the Tax paid in cash,
other than the amount of Tax paid by utilization of Input Tax credit under the Input Tax Credit Rules,
2017, to the Assistant Commissioner or Deputy Commissioner of Central Taxes, as the case may be, by
the 15th day of the succeeding month after end of quarter after payment of tax relating to the quarter to
which the claim relates.
7.2 The Assistant Commissioner or Deputy Commissioner of Central Taxes, as the case may be, after
such examination of the application as may be necessary, shall sanction reimbursement of the budgetary
support. The sanctioned amount shall be conveyed to the applicant electronically. The PAO, CBEC will
sanction and disburse the recommended reimbursement of budgetary support.
8. BUDGETARY PROVISION AND PAYMENT OF AMOUNT OF BUDGETARY
SUPPORT
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8.1 The budgetary support shall be disbursed from budgetary allocation of Department of Industrial
Policy & Promotion (DIPP), Ministry of Commerce & Industry. DIPP shall keep such budgetary
allocation on the disposal of PAO, CBEC. The eligible units shall obtain one time registration on the
ACES-GST portal and obtain a unique ID which is to be used for all processing of claims under the
scheme. The application by the eligible unit for reimbursement of budgetary support shall be filed on the
ACES-GST portal with reference to unique ID obtained and shall be processed by the Deputy
Commissioner or Assistant Commissioner of the Central Tax for sanction of the admissible amount of
budgetary support.
8.2 The application for imbursement of budgetary support shall be made by the eligible unit after the
payment of CGST/IGST has been made for the quarter to which the claim relates, in cash in respect of
specified goods after utilization of Input Tax credit, if any.
8.3 The sanctioning authority (AC/DC) with the approval of the Commissioner may call for additional
information (inclusive but not limited to past data on trends of production and removal of goods) to
verify the correctness of various factors of production such as consumption of principal inputs,
consumption of electricity and decide on the basis of the same, if the quantum of supply have been
correctly declared.
8.4 Special audit by the Chartered Accountant/Cost Accountant may be undertaken for units selected
based on the risk parameters identified by CBEC in order to verify correctness of declared production
capacity and production or overvaluation of supplies. Such special audit shall be undertaken only with
the approval of the Commissioner, CGST.
8.5 The list of sanctions for payment, on the basis of amount sanctioned by the jurisdictional Deputy
Commissioner or Assistant Commissioner of the Central Tax shall be forwarded by the authorised officer
of the jurisdictional Commissionerate of the Central Tax through the ACESGST portal to e-PAO, CBEC
for disbursal directly into the bank accounts of the eligible units.
9. REPAYMENT BY CLAIMANT/ RECOVERY AND DISPUTE RESOLUTION
9.1 The budgetary support allowed is subject to the conditions specified under the scheme and in case of
contravention of any provision of the scheme/ notification, the budgetary support shall be deemed to
have never been allowed and any inadmissible budgetary support reimbursed including the budgetary
support paid for the past period under this scheme shall be recovered along with an interest @15% per
annum thereon. In case of recovery or voluntary adjustment of excess payment, repayment, recovery or
return, interest shall also be paid by unit at the rate of fifteen per cent per annum calculated from the date
of payment of refund till the date of repayment, recovery or return.
9.2 When any amount under the scheme is availed by wrong declaration of particulars regarding
meeting the eligibility conditions in this scheme or as specified under respective exemption notification
issued by the Department of Revenue, necessary action would be initiated and concluded in the
individual case by the Office of concerned Assistant Commissioner or Deputy Commissioner of Central
Taxes, as the case may be.
9.3 The procedure for recovery: Where any amount is recoverable from a unit, the Assistant
Commissioner or Deputy Commissioner of Central Tax, as the case may be, shall issue a demand note to
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the unit (i) intimating the amount recoverable from the unit and the date from which interest thereon is
due and (ii) directing the manufacturer to deposit the full sum within 30 days of the issue of the demand
note in the account head of DIPP and submit proof of deposit to him/her.
9.4 Where the amount is not paid by the beneficiary within the time specified as above, action for
recovery shall be taken in terms of the affidavit –cum- indemnity bond submitted by the applicant at the
time of submission of the application, in addition to other modes of recovery. 9.5 Where any amount of
budgetary support and/or interest remains due from the unit, based on the report sent by the Assistant
Commissioner or Deputy Commissioner of Central Tax as the case may be, the authorized officer of
DIPP shall, after the lapse of 60 days from the date of issue of the said demand note take required legal
action and send a certificate specifying the amount due from the unit to the concerned District
Magistrate/ Deputy Commissioner of the district to recover that amount, as if it were arrears of land
revenue 10 Residual issues related to the Scheme arising subsequently shall be considered by DIPP,
Ministry of Commerce & Industry whose decision shall be final and binding.
11. SAVING CLAUSE
11.1 Upon cessation of the Scheme, the unpaid claims shall be settled in accordance with the provisions
of the Scheme while the recovery and dispute resolution mechanisms shall continue to be in force.
Sd- .
( RAVINDER )
Joint Secretary to the Government of India


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Annexure A of Notification dated 5th Oct, 2017

AFFIDAVIT – CUM – INDEMNITY BOND
I / We Shri__________________ s/o________________(add names) in my/our capacity
of_____________(designation) of________________ (Company/Unit Name) hereby solemnly affirm and
declare for and on behalf of_____________(company/unit name) that an application for registration for
reimbursement of budgetary support has been filed on__________ under the Scheme of Budgetary
Support notified by Department of Industrial Policy and Promotion
(DIPP).
I/We confirm that the eligible unit is manufacturing and supplying specified goods on payment of
Central GST/ Integrated GST and the claim will not include any other activity being carried out under the
same GSTIN.
I /We further affirm and declare, as stated above, goods other than specified goods manufactured by the
eligible unit will not be taken into account while filing the application under the scheme. The input tax
credit on the goods availed by the eligible manufacturing unit or the supplying unit under the same
GSTIN will be taken into account while calculating the input tax credit of the eligible manufacturing unit.
No amount of budgetary support which is not due as per the conditions of the scheme notified by DIPP
shall be claimed by the eligible unit and where any mis-declaration is detected, the amount paid by the
Government shall be paid back by me/us with interest as prescribed in the scheme.
I/We solemnly affirm and declare that whatever is stated above is true to the best of my / our
knowledge and record. I/We further indemnify the Government of India to recover the amount, if any for
any revenue loss which may occur (might have occurred) due to the above submission made by me / us.

DATE : NAME:
PLACE: SIGNATURE:
DESIGNATION:
ADDRESS:
Note:
1. This indemnity bond should be submitted on Rs.150/- Stamp Paper.
2. The bond is required to notorised.
3. Proprietors /Partners / Directors / Authorised Signatory has to sign the bond alongwith their name and
residential address. In case the bond is signed by authorized signatory, copy of power of attorney in
favour of authorized signatory needs to be enclosed.
Copy for information and necessary action to:
(i) All Ministries/Departments of the Government of India and the NITI Aayog.
(ii) Department of Revenue, ( Central Board OF Excise and Customs, North Block, New Delhi.
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(iii) Chief Secretaries of the States of Arunachal Pradesh, Assam, Himachal Pradesh, Jammu &
Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim & Uttrarakhand .
(iv) Secretary ( Industries ) of the States of Arunachal Pradesh, Assam, Himachal Pradesh, Jammu &
Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim & Uttrarakhand.

Copy also to:
(i) Cabinet Secretariat
(ii) PMO

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Agenda Item 8: Ad-hoc Exemptions Order(s) issued under Section 25(2) of Customs Act, 1962 to
be placed before the GST Council for information
In the 26th GST Council meeting held on 10th March, 2018, it was decided that all ad hoc
exemption orders issued with the approval of Hon’ble Finance Minister as per the guidelines contained
in Circular No. 09/2014-Customs dated 19th August, 2014, as was the case prior to the implementation
of GST, shall be placed before the GST Council for information.
2. The details of the ad hoc exemption orders issued recently are as follows:
Order No. Date Remarks
AEO No. 03
of 2023
28th March, 2023 Request from Shri Maneesh P.M. for exemption
from payment of customs duty under section 25(2)
of Customs Act, 1962 on import of drug Inj.
Qarziba (order copy enclosed)
3. This is placed for the information of GST Council.

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Agenda for 50th GSTCM Volume 1
Page 1 of 34
Confidential
Agenda for
50th GST Council Meeting
11th July 2023
Volume-II

Agenda for 50th GSTCM Volume II
Page 2 of 34

Agenda for 50th GSTCM Volume II
Page 3 of 34
GST Council Secretariat New Delhi
5
th Floor, Tower-II, Jeevan Bharti Building, New Delhi
14th June, 2023
OFFICE MEMORANDUM
Subject: Notice for the 50th Meeting of the GST Council scheduled to be convened on
11th July, 2023.
The undersigned is directed to refer to the subject stated above and to convey that the 50th Meeting of
the GST Council will be held on 11th July, 2023 at New Delhi. The schedule of the Meeting is as follows:
• Tuesday, 11th July, 2023: 11:00 A.M. onwards
2. In addition, an Officers' Meeting will be held on 10th July, 2023 as per the following schedule:
• Monday, 10th July, 2023: 2: 00 P.M. onwards
3. The agenda items and other details for the 50th Meeting of the GST Council will be
communicated in due course of time.
4. Keeping in view the logistical constraints, it is requested that participation from each State/UT
may be kept limited to two (02) officers in addition to the Hon'ble Member of the GST Council.
5. Kindly convey the invitation to Hon’ble Member of the GST Council to attend the Meeting of
the GST Council.
Sd/-
(Sanjay Malhotra)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653
Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with the
request to brief Hon’ble Minister about the above said meeting.
2. PS to the Hon’ble Minister of State (Finance), Government of India, North Block, New Delhi
with the request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Union Territories of Delhi, Puducherry and
Jammu and Kashmir with the request to intimate the Minister in charge of Finance/Taxation or any other
Minister nominated by the State Government as a Member of the GST Council about the above said
meeting.
4. Chairman, CBIC, North Block, New Delhi, as a permanent invitee to the proceeding of the
Council.
5. Chairman, GST Network.

Agenda for 50th GSTCM Volume II
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Agenda for 50th GSTCM Volume II
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TABLE OF CONTENTS
Sl. No. Agenda Item Page No.
9. Report of 3rd Meeting of the Group of Ministers (GoM) on GST System
Reforms
7-26
10. Proposal for creation of State Co-ordination Committee comprising of the GST
authorities from the State and the Central Tax Administrations
27-28
11. Implementation of GSTAT consequent to passing of Finance Act, 2023 29-31
12. Performance Report of Competition Commission of India (CCI) for month of
December, 2022 and 4th quarter of the F.Y 2022-23 along with Performance
Reports of State Level Screening Committee (SLSC), Standing Committee
(SC) and Directorate General of Anti-Profiteering (DGAP) for 3rd quarter and
4th quarter of the F.Y 2022-23.
32-34
Agenda for 50th GSTCM Volume II
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Agenda for 50th GSTCM Volume II
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Agenda Item 9: Report of 3rd Meeting of the Group of Ministers (GoM) on GST System Reforms
The GST Council in its 45th Meeting had decided to constitute a Group of Ministers (GoM) on System
Reforms to analyse, to study and come up with ways and means to minimize tax evasion and offer other
suggestions that can help avoid frauds in GST. The GoM was constituted vide OM dated 24.09.2021 by
subsuming the earlier GoMs on IT challenges and revenue mobilization.
2. Vide OM dated 22nd September 2022, the GoM has been reconstituted and the present constitution
of the Group of Ministers committee is as follows:
S.No. Name Designation Convener/ Member
1 Shri Devendra Fadnavis Deputy Chief Minister,
Maharashtra
Chairman and
Convener
2 Shri Dushyant Chautala Deputy Chief Minister, Haryana Member
3 Shri Manish Sisodia Deputy Chief Minister, Delhi Member
4 Smt. Ajanta Neog Minister for Finance, Assam Member
5 Shri Buggana Rejendranath Minister for Finance, Planning
and Legislative Affairs,
Andhra Pradesh
Member
6 Shri Niranjan Pujari Minister for Finance and Excise,
Odisha
Member
7 Dr. Palanivel Thiaga Rajan Minister for Finance and Human
Resources Management, Tamil
Nadu
Member
8 Shri T.S. Singh Deo Minister for Commercial Taxes,
Chhattisgarh
Member

3. The first meeting of the Group of Ministers was held on 21st October 2022 and the second meeting
of the Group of Ministers (GoM), was conducted on 10th February, 2022 (through videoconference). The First Report of the GoM based on the approved minutes of these meeting was tabled
before the GST Council in its 47th Meeting held on 28th and 29th June, 2022 at Chandigarh.
4. Third Meeting of GoM on System Reforms
4.1 The GoM on GST System Reforms held its 3rd Meeting on 13th February, 2023 under the
Chairmanship of the Hon’ble Convenor of the GoM, Shri Devendra Fadnavis, Hon’ble Deputy Chief
Minister of Maharashtra and the meeting was attended by Members from Haryana, Tamil Nadu, Delhi,
Odisha and Andhra Pradesh. Members from Assam and Chhattisgarh were unable to attend due to prior
commitments. Gujarat and Telangana were the special invitees at the meeting. Gujarat has been
implementing a Biometric Authentication Pilot Project and the State of Telangana had been using data
analytics on the Point of Sale (PoS) data to identify tax evaders.
5. Implementation Status of decisions of Second Meeting (Priority I Agenda Items)
5.1 The implementation status of Priority I Agenda items as approved in Second Meeting of GoM is
detailed out in the Report of 3rd Meeting of the GoM (pages 6- 9 of the Report).
Agenda for 50th GSTCM Volume II
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6. Items for prioritized action for 3rd Meeting of GoM
6.1 Accordingly, after receipt of the suggestions of the States and due deliberations, the final set of
Priority II agenda items for the 3rd meeting were determined by the GoM as follows:
a. Hard locking of Table-4 of GSTR-3B.
b. Tracking and identification of Non-Existent Tax Payers (NETP).
c. Reporting of transactions by payment gateways & banks.
d. HSN level reporting in GSTR-1.
e. Proposal for
i. Integration of Income Tax, ICEGATE and other data points.
ii. Import of Services and evasion of tax thereon
f. Development of MIS
i. MIS of commodities liable for RCM (Odisha)
ii. MIS report of the Auto populated interest on account of late payment. (TN)
7. The detailed discussion and decisions of the GoM on GST System Reforms with respect to
these Priority II agenda items are detailed out in the Report of 3rd Meeting of GoM on GST Systems
having the approval of the Hon’ble Convenor of the GoM and is placed as Annexure A.
8. Decisions of GoM in 3rd Meeting
8.1 GoM has inter alia approved following decisions and recommendations for placing before GST
Council:
8.1.1 Approved systemic intervention in the form of spike rule based on gap in ITC utilization
(threshold of mismatch between GSTR 2A/2B and GSTR 3B suggested as Rs. 25 lakh or more) shall be
implemented in phased manner. This will be on similar line of Rule 88C (mismatch between GSTR 1
and GSTR 3B). In the cases where defined threshold of ITC gap is crossed, an intimation shall be sent
to taxpayer and a facility to furnish reason for such gap shall be given to taxpayer.
8.1.2 Approved to formulate an SoP for handling NETP and a uniform policy for ab-initio cancellation
of NETP across State/CBIC Tax Administration to be followed. An SoP for the same may be issued by
policy wing. Further to develop System driven solution to facilitate the declaration of NETP by Tax
Administration.
8.1.3 The issue of reporting B2C transactions through Payment Gateways and Point of Sale (PoS)
machines was considered and the GoM gave in-principle approval to this agenda item.
8.1.4 Approved that in first phase, HSN data in Table 12 of GSTR 1, should be auto populated from einvoice and EWB. (In initial phase AATO Rs. 5 Crore or more to be considered). Further, phase wise
and time bound approach to be adopted for action against noncompliant taxpayers with nudging
messages and e-mails. Blocking of GSTR 1 for failure to fill HSN will be taken up in the later phase.
8.1.5 Approved the formation of Committee of Officers from TPRU-1, GSTN, Center, State
(Maharashtra) and RBI and the said Committee will share a report on priorities to the GoM Secretariat,
at GSTN, for further processing.
8.1.6 Approved the development of MIS.
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9. Method of Implementation
9.1 The method of implementation for implementation of the recommendation of GoM as agreed upon
by the Members are as follows:
9.1.1 The GoM would submit its report to the GST Council periodically. Implementation of its
recommendation, which may also involve legal changes, would first need in principle approval from the
GST Council.
9.1.2 The legal changes for the recommendations of the GoM would need to be discussed and detailed
by the Law Committee. This may also include some business process changes as deemed fit by the Law
Committee for implementation of the GoM recommendations.
9.1.3 After detailing the business process and the necessary legal changes, based on the extent of changes
suggested in the Law Committee, the proposal would be brought before the GST Council for information
/ approval, as the case may be.
10. The Report of the 3rd Meeting of GoM on GST System Reforms (Annexure A) having approval of
the Hon’ble Convenor of the GoM, is placed before the GST Council for consideration and approval.
Agenda for 50th GSTCM Volume II
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Annexure-A
Group of Ministers on GST System Reforms : Third GoM_13022023
GoM on GST System Reforms: Report of Third Meeting

Goods and Services Tax Network
4thFloor, Wordmark-I, East Wing, Aerocity, New Delhi-110037
Third Meeting of GoM: REPORT/Confidential. Page 1 of 17
Agenda for 50th GSTCM Volume II
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Group of Ministers on GST System Reforms : Third GoM_13022023
CONTENTS
# Topic Page
I. Introduction 3
II.
Implementation Status of decisions of Second
Meeting (Priority I Agenda Items)
6
III.
Items for prioritized action
for Third Meeting
10
1 Hard locking of Table-4 of GSTR-3B 10
2.
Tracking & identification of Non-Existent Tax
Payers (NETP).
10
3.
Reporting of transactions by payment gateways
& banks
11
4.
HSN level reporting in GSTR-1: To improve data
quality, integrating and auto-population of einvoice/e-way bill data with Table 12 of GSTR1
11
5.
Proposal for
• Integration of Income Tax, ICEGATE and other
data points.
• Import of Services and evasion of tax thereon
12
6.
Development of MIS
i. MIS of commodities liable for RCM (Odisha)
ii. MIS report of the Auto populated interest on
account of late payment. (TN)
12
IV. Decisions of GoM in 3rd Meeting 13
V Method of Implementation 17
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Group of Ministers on GST System Reforms : Third GoM_13022023
Group of Ministers (GoM) on GST System Reforms: Report on
Recommendations of Third Meeting
I. Introduction
1. During the 45th meeting of the GST Council, held on 21st September 2021, it was
decided to constitute a sub-committee of Group of Ministers (GoM). The GoM was
tasked with the objective of analyzing, studying, and proposing strategies to curb tax
evasion. Additionally, they were assigned to provide suggestions that might aid in
preventing fraudulent activities within the GST framework.
2. As per the OM dated 22nd September 2022, the GoM is reconstituted and present
Membership of the GoM is as follows:
# Name Designation Convener/
Member
1. Shri Devendra
Fadnavis
Deputy Chief Minister,
Maharashtra
Chairman
and Convener
2. Shri Dushyant
Chautala
Deputy Chief Minister,
Haryana
Member
3. Shri Manish Sisodia Deputy Chief Minister,
Delhi
Member
4 Smt.Ajanta Neog Minister for Finance,
Assam
Member
5 Shri Buggana
Rejendranath
Minister for Finance,
Planning and Legislative
Affairs, Andhra Pradesh
Member
6 Shri Niranjan Pujari Minister for Finance and
Excise, Odisha
Member
7 Dr. Palanivel Thiaga Rajan Minister for Finance and
Human Resources
Management, Tamil Nadu
Member
8 Shri T.S. Singh Deo Minister for Commercial
Taxes, Chhattisgarh
Member
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3. The first meeting ofthe Group of Ministers was held on 21st October 2022, during which
GSTN provided an overview of the GST system. Furthermore, GSTN sought guidance
and directions from the Chair and Group Members regarding the proceedings of the
GoM. The meeting was presided over by the Hon’ble Shri Ajit Pawar, Deputy Chief
Minister of Maharashtra. The discussions and results of the first meeting are
summarized below, detailing the topics and agenda items that the GoM was set to
consider:
a. To consider and provide mechanism for better verification at the time of
registration of taxpayers
b. To consider ways and means of weeding out of fake registrants and noncompliant Taxpayers in the GST system
c. To examine the ways and methods of improving of return filing compliance
(R-1 & R-3B)
d. To examine methods of regulating ITC flow and checking of fake invoicing
e. To analyse the non-reporting of supplies with emphasis on B2C supplies
f. To consider ways and means of verification of high risk/high value
transactions.
g. To create a feedback loop with GSTN in order to improve the analytics on the
data stored in GST System.
4. The second meeting of the Group of Ministers (GoM), was conducted on 10th
February 2022 (through video-conference) under the Chairmanship of Shri Ajit
Pawar, Hon’ble Deputy Chief Minister, Maharashtra. During this meeting, the
GoM agreed on the importance of utilizing data analytics to prevent GST evasion
and augment GST revenue. During the second meeting of the GoM, various
suggestions and proposals recieved from the States were prioritized. Further the
Priority I items were deliberated upon and recommendations were to the GST
Council. It was agreed by the member states that the Priority II items would be
addressed and decisions concerning them would be made in the third GoM
meeting.
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5. The Third Meeting of GoM was held on 13th February 2023 at Mumbai. The
meeting was chaired by Shri Devendra Fadnavis, Hon’ble Deputy Chief
Minister of Maharashtra, and was attended by Members from Haryana, Tamil
Nadu, Delhi, Odisha and Andhra Pradesh. Members from Assam and
Chhattisgarh were unable to attend due to preoccupation. During the meeting,
GoM agreed to use Technology and implement data analytics as a strategy for
revenue augmentation.
6. Prior to the third meeting of the GoM, feedback was collected from the member
states that are part of the GoM. Gujarat and Telangana, were the special invitees
at the meeting. Officers from Gujarat were invited because they were
implementing a Biometric Authentication Pilot Project. On the other hand,
Telangana had been using data analytics on the Point of Sale (PoS) data to
identify tax evaders. Telangana officers shared their work and the procedures
they used for identifying Tax evaders. GSTN took into consideration all these
suggestions, had additional conversations with the officers from these states, and
prepared a list of agendas for the Third Meeting of GoM to discuss.
7. As a result, the final set of Priority II agenda items for this meeting were
determined as follows:
a. Hard locking of Table-4 of GSTR-3B.
b. Tracking and identification of Non-Existent Tax Payers (NETP).
c. Reporting of transactions by payment gateways & banks.
d. HSN level reporting in GSTR-1.
e. Proposal for
i. Integration of Income Tax, ICEGATE and other data points.
ii. Import of Services and evasion of tax thereon
f. Development of MIS
i. MIS of commodities liable for RCM (Odisha)
ii. MIS report of the Auto populated interest on account of late
payment. (TN)
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II. Implementation Status of decisions of Second Meeting
(Priority I Agenda Items):
The status of Priority I Agenda items approved in Second Meetingof GoM is as mentioned below.
Agenda Action Item Decision of GoM Present Stats
1. Integrated
approach on
improving
Registration
process: Using
biometric
authentication
for high-risk
applicants.
(Item 1)
Use of mandatory
biometric authentication
for high- risk applicants
for registration under
GST. Integration of
registration process with
UIDAI and the pilot for
the same was agreed to
be conducted by
Gujarat.
• CR 22252 is issued for
development of
functionality.
• Biometric Aadhar
Authentication process
in Regression testing
• Meeting held with
Gujarat and Gujarat
proposed to consider
Low Risk TPs for Bio
metric authentication in
this use case.
• For Low-Risk TPs,
amendment needs to be
done in Law.
2 A Risk
Assessment of
New applicants
/registrants using
Machine
Learning (ML)
and to carry out
Mandatory
Physical
Verification as
GoM approved
identifying risky
behaviour of the new
registrants/applicants
using AI/ML and place
the information on the
back office for the field
officer to carry out
mandatory physical
verification of these
taxpayers.
• Registration Risk Score
logic changed to suit the
requirement for BO
Registration officer. Risk
Score available to the
officers.
• A mechanism is under
development to mark the
High-Risk applicants as
mandatory for physical
verification. (BIFA CR
22865-A Part I –BIFA
activity completed).
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Agenda Action Item Decision of GoM Present Stats
Assigned by the
System
(Item 2A)
• Requirement is finalized
and it under
development process.
2 B AI/ML based
interdiction
grounded on
suspicious
behaviour of
existing
taxpayers to be
used for carrying
out system
assigned
verifications etc.
(Item 2B)
GoM approved AI/ML
based interdiction to
generate MIS for
officers to take post
registration verification
and other necessary
actions for high-risk
taxpayers.
• A mechanism to identify
the Suspicious behaviour
of existing Registrants
has been developed and
deployed. High Risk
taxpayers are transferred
from BI to BO, under
this pilot.
• Nodal officer can further
allocate for mandatory
physical verification.
• For Model I, API is
already developed.
• G2G API developed.
(CR 23330)
2 C Online Address
verification of
New and
Existing
Taxpayers with
the help of
Geocoding
(Item 2C)
GoM approved
online/site verification
with the help of GeoCoding and for officers
to carry out physical
verification of high-risk
taxpayers or getting
correct address filed by
the taxpayers.
• For new tax payers, it
has already been
deployed in March 2022.
• For existing Tax
payers, the
functionality is in
production since
January,2023 for
Haryana, Delhi,
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Agenda Action Item Decision of GoM Present Stats
Karnataka, Rajasthan,
Telangana and Gujarat. For
other States it is under
process in phased manner
and by June 2023, it will be
available for all
States.
3 Capturing
Electricity Bill
meta data (CA
No.) during
Registration
process
Inclusion of Electricity
Bill meta data ( CA No.)
as a data field during
registration by new
taxpayers.
CA Number shall be
verified to improve the
quality of registered
addresses in GST
System. The State of
Maharashtra agreed
for the pilot project
• In State Specific Tab, the
data about Customer
Account No. of Elec. Bills
notified by Maharashtra
state is to be collected
and same is designed in
the registration form.
• CR 23498 issued and is
in development.
• Details of API specs
shared with MH State
(for receiving response
regarding validation of
CA No. and other vital
details like address etc.)
• Response awaited from
MH and work is under
progress
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Agenda Action Item Decision of GoM Present Stats
4 Validation of
Bank Accounts
of taxpayers
through NPCI
. Real time validation of
Bank Accounts through
integration of GST
System with NPCI.
. GSTN to make
available information
related to all bank
accounts against a
particular PAN to
officers.
• The integration with
NPCI is completed to get
validation of Bank
Account details updated
by taxpayers. The Bank
Account validation status
is displayed to taxpayers
under My Profile section.
• Working on the
functionality to display
taxpayer details to Tax
Officers, where Bank
Account validation is
Failed/Invalid Tax
Officers (CR 22711).
7 Lead based
dashboard,
Task & Case
Creation and
Feedback
Mechanism in
Back Office
GoM approved
development of BI-BO
Feedback Mechanism
for capturing the
feedback of leads
generated by BIFA (and
provided to tax officers
in BO systems)
• The Feedback
Mechanism functionality
has been rolled out PAN
India in November 2022.
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III. Items for prioritized action for 3rd Meeting:
The GoM engaged in thorough discussions on the agenda items of the third GoM meeting.
A summary of the agenda items discussed during Third Meeting is provided below.
# Agenda Proposal after Officers Meeting
1 Hard locking of Table-4 of GSTR3B
• The view that emerged is that ITC
utilization-based spike rule in line with
rule 88C may be a feasible solution to
implement.
• Essentially intimation of ITC gap and
facility to furnish reply or reason
(phase I).
• Later on, it may be converted to
blocking of GSTR1 (Phase II)
2 Tracking and identification of
Non-Existent Tax Payers (NETP).
It involves
i. Cancellation of TP ab-initio
/Suspension of Taxpayers
ii. Declaration of Taxpayer as
NETP
• System based solution to report the
NETP.
• The details of Beneficiaries
(recipients), suppliers will be conveyed
to officers on system.
• In Phase I, recipients would be
informed and in Phase 2, suppliers
would be informed.
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# Agenda Proposal after Officers Meeting
3 Reporting of transactions by
payment gateways & banks. To
capture details of B2C sale
through retail, not reported by
taxpayers where payment is
received through PoS machines by
the supplier, from all Banks.
• The problem involves taking data of
transactions where payment made
through PoS terminal and by online
mode and using it to assess turnover.
• It may be resolved in stages.
• Data of payments made through PoS
terminal may be collected and PAN
based summary of payments made
available to the proper officer against
registered as well unregistered entities.
• To explore possibility of linkage/taking
data from Annual Information system
(AIS) of CBDT.
4 HSN level reporting in GSTR-1:
To improve data quality,
integrating and auto-population of
e-invoice/e-way bill data with
Table 12 of GSTR1
It is proposed to take following steps: -
• Identification of Taxpayers who are
filing incorrect data in GSTR 1 and
send them mail for course correction
• Auto-populate Table 12 of GSTR 1
based on e-invoices or EWB
information.
• Validation of Table 12 of GSTR 1 in last
phase
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# Agenda Proposal after Officers Meeting
5
Proposal for
Integration of Income Tax,
ICEGATE and other data points.
Import of Services and
evasion of tax thereon
Import of Services can be addressed by
modifying the reporting formats of AD
Banks under FEMA in coordination
with RBI to include necessary fields
like PAN of remitting entity / person
and cause of remittance like nonphysical import / export, transfer to
relative, gift, etc.
At present it is difficult to corelate
import of services data with GST
Returns data.
To address issue of import of services, DoR
may Constitute a team under TPRU to work on
the proposed solution and present its Report.
Members of the team may be:
State: 1, Centre 1, GSTN 1, TPRU 1 and RBI 1
On integration of other data points, GoM may
direct it as desirable step to be taken forward
through DoR.
6 Development of MIS
a. MIS of commodities liable for
RCM (Odisha)
b. MIS report of the Auto
populated interest on account
of late payment. (TN)
The reports will be developed on priority as
requested by Odisha and Tamil Nadu
i. MIS of commodities liable for RCM: It was
discussed that GSTN would develop such MIS
report. (Odisha)
ii. MIS report of the Auto populated interest
on account of late payment. GSTN would
develop. (TN)
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IV. Decisions of GoM in 3rd Meeting: -
This discussion and decision of the GoM on the items are described in succeeding paras.
Item – 1: Hard locking of Table-4 of GSTR-3B:
After due deliberations, GoM took view that, the hard locking of Table 4 of GSTR-3B is not
feasible as of now, as taxpayers may face difficulties in business activities.
Item – 2: Tracking and identification of Non-Existent Tax Payers (NETP). It
involves: -
i) Declaration of Taxpayer as NETP,
ii) System driven Identification of suppliers and recipients of NETP.
Proposed Solution:
i. System based solution to report the NETP would be provided to the officers.
ii. The details of Beneficiaries (recipients) of the NETP suppliers will be conveyed to
officers on system in Phase I.
iii. In Phase 2, related parties (including suppliers (to NETP)) would be informed.
iv. This would lead to NETP data getting captured and follow-up becoming easier.
Third Meeting of GoM: REPORT/Confidential. Page 13 of 17
Decision of GoM:
The GoM approved following:
a. Systemic intervention in the form of spike rule based on gap in ITC utilization
(threshold of mismatch between GSTR 2A/2B and GSTR 3B suggested as Rs. 25
lakh or more) shall be implemented in phased manner. This will be on similar line
of Rule 88C (mismatch between GSTR 1 and GSTR 3B)
b. In the cases where defined threshold of ITC gap is crossed, an intimation shall be
sent to taxpayer and a facility to furnish reason for such gap shall be given to
taxpayer.
c. Further, mechanism for verification and initiation of action in non-compliant
cases is to be provided.
d. Whereas, in subsequent phase filing of GSTR-1 may be blocked till the officer
verifies and approve the reply so filed.
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Group of Ministers on GST System Reforms : Third GoM_13022023
Decision of GoM:
The GoM approved followinga. To formulate the SoP for handling NETP (GSTN and Maharashtra will prepare SoP).
b. Identification of NETP by Tax officers and officers to fill NETP Form (part of SoP).
c. Uniform policy for ab-initio cancellation of NETP across State/CBIC Tax
Administration to be followed. An SoP for the same may be issued by policy wing.
d. To develop System driven solution to facilitate the declaration of NETP by Tax
Administration.
e. Facility to report NETP and Creation of Central repository for NETP accessable to all.
f. System based communication of recipients of NETP among the state up to the
jurisdictional officer.
g. Flagging of related entities of declared NETPs (including suppliers) for
appropriate action.
h. System based facility to create tasks of various actions against related parties
(including suppliers) and Recipients to be developed. (phase-III).
Item – 3: Reporting of transactions by payment gateways & banks. To capture details
of B2C sale through retail, not reported by taxpayers where payment is received
through PoS machines by the supplier, from all Banks.
Proposed Solution:
The issues may be resolved in Phases and in first phase issue of B2C sale through retail,
not reported by taxpayers where payment is received through PoS machines by the supplier
may be addressed.
i.Identification of Bank Account in which B2C consideration from a PoS machine
is received, may be made mandatory by law;
ii. Linking the Bank Account to the PAN number is already there but can be stressed
in SoP;
iii. Notifying banks to provide information as per a form at PAN level, [This
information should be collected only for bank accounts identified at (a)],
iv. Estimating turnover based on the input at PAN level,
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Group of Ministers on GST System Reforms : Third GoM_13022023
v. Identifying cases of high value of mismatch between estimated turnover and
reported turnover.
vi. Getting the taxpayer to explain the turnover at GSTN level and submit
reconciliation.
Item – 4: HSN level reporting in GSTR-1: To improve data quality, integrating
and auto-population of e-invoice/e-way bill data with Table 12 of GSTR1.
Proposed Solution:
Officers proposed to take following steps: -
i. Identification of Taxpayers who are filing incorrect data in GSTR 1 and send
them mail for course correction. (Already started)
ii. Auto-populate Table 12 of GSTR 1 based on e-invoices or EWB information.
iii. Validation of Table 12 of GSTR 1 in last phase with respect to total value
declared.
iv. Blocking of GSTR1 at a later date for taxpayers having high % of error on value
terms.
Third Meeting of GoM: REPORT/Confidential. Page 15 of 17
Decision of GoM:
The GoM discussed the issue of reporting B2C transactions through Payment
Gateways and Point of Sale (PoS) machines, and gave in-principle approval to this
agenda item. It was further considered that all digital payment transactions are
processed through specific networks, such as NPCI for RUPAY, VISA,
MASTERCARD, etc. However, it was noted that the proposed scheme might exclude
peer-to-peer (P2P) digital payments.
The convenor of GoM, directed a meeting to be held in Mumbai. This meeting is to
involve officers from the Centre, State (Maharashtra), GSTN and other necessary
stakeholders. The goal of this meeting is to develop a detailed methodology and
present proposal needs to be expanded & PoC carried out. Additionally, consultations
with the RBI and the NPCI may be sought during the process.
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Group of Ministers on GST System Reforms : Third GoM_13022023
Item – 5:
• Integration of Income Tax, ICEGATE and other data points.
• Import of Services and evasion of tax thereon
Proposed Solution
i. The issue of integration of ICEGATE and Income Tax data can be addressed
by DoR on the basis of precisely identified data sets which are needed for the
purpose of augmenting GST collection.
ii. In phase one, to address issue of import of services, DoR may constitute a
team under TPRU to work on the proposed solution and present its Report.
Members of the team may be: State:1, Centre:1, GSTN: 1, TPRU: 1, RBI: 1.
[ Note: The issue can be addressed by modifying the reporting formats of AD Banks
under FEMA in coordination with RBI to include necessary fields like PAN of remitting
entity/person and cause of remittance like non-physical import/export, transfer to
relative, gift, etc. At present it is difficult to corelate import of services data with GST
Returns data.]
Third Meeting of GoM: REPORT/Confidential. Page 16 of 17
Decision of GoM:
The Hon, GoM has approved the following decisions:
a. In first phase, HSN data in Table 12 of GSTR 1, should be auto populated from einvoice and EWB. (In initial phase AATO Rs. 5 Crore or more to be considered)
b. Phase wise and time bound approach to be adopted for action against noncompliant taxpayers with nudging messages and e-mails. Blocking of GSTR 1 for
failure to fill HSN will be taken up in the later phase.
Decision of GoM:
a. The GoM has approved the formation of Committee of Officers from TPRU-1,
GSTN, Center, State (Maharashtra) and RBI.
b. The said Committee will share a report on priorities to the GoM Secretariat, at
GSTN, for further processing.
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Item – 6: Development of MIS
i. MIS of commodities liable for RCM (Odisha)
ii. MIS report of the Auto populated interest on
account of late payment. (TN)
V. Method of implementation:
The following method of implementation, which has approval of the Chairman, shall
be followed with regard to the recommendations of the GoM:
1. The GoM would submit its report to the GST Council periodically.
Implementation of its recommendation, which may also involve legal
changes, would first need in principle approval from the GST Council.
2. The legal changes for the recommendations of the GoM would need to
be disucssed and detailed by the Law Committee. This may also include
some business process changes as deemed fit by the Law Committee for
implemention of the GoM recommendations.
3. After detailing the business process and the necessary legal changes,
based on the extent of changes suggested in the Law Committee, the
proposal would be brought before the GST Council for informaton /
approval, as the case may be.
***********************************************
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Decision of GoM:
The GoM has approved the development of MIS
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Agenda Item 10: Proposal for creation of State Co-ordination Committee comprising of the
GST authorities from the State and the Central Tax Administrations.
1. The National Coordination Meeting was held on 24th April, 2023 under the
Chairmanship of the Revenue Secretary. As an outcome, it was decided to launch an All India drive
against fake registrations. Instructions No.1/2023 dated 04.05.2023 regarding the conduct of the
special drive were issued. Also, a National Coordination Committee headed by Member (GST),
CBIC and comprising Chief Commissioner/Commissioner of State Taxes of Gujrat, Telangana,
West Bengal and Principal/Chief Commissioner of Delhi CGST Zone and Bhopal CGST Zone as
Members was formed to monitor the progress of the drive against fake registrations and fake
ITC. The results of this coordinated drive against fake registrations and fake ITC have been very
encouraging.
2. The fake registration cases require follow up in cases where the ITC has been passed
on. For sharing of this information regarding follow up of the fake drive cases and other
enforcement measures at ground level, for sharing of Audit findings and other audit related
matters, for adopting a common legal stand/strategy, it is proposed that there should be an
institutionalized platform for information sharing and collaboration across Central and State GST
Administrations.
3. It is proposed that a Co-ordination Committee may be formed in each State/UTs
comprising of Central and State Tax Authoritiesfor knowledge sharing on GST matters and
coordinated efforts towards administrative and preventive measures.
4. The constitution of the said Committee, its functions, mandate/scope, frequency of
the meetings is proposed below. Further, whereas the Chief Commissioner/Commissioners
of CGST/SGST shall be co-chairs, they shall be conveners on rotational basis for one year
each.
A. Constitution of the Committee:
The proposed Constitution of the Committee is as follows:
i. Zonal Principal Chief Commissioner/ Chief Commissioner of Central Tax (Co- chair)
ii. Chief Commissioner/ Commissioner of State Tax (Co-chair)
iii. Representative of DG GST Intelligence (DGG), CBIC from concerned Zone/ State
iv. Additional/Joint Commissioner of office of Zonal Principal Chief Commissioner/ Chief
Commissioner of Central Tax and an officer nominated by the Chief Commissioner/ Commissioner
of State Tax,
v. Any other member/officer may be co-opted with the permission of the Co- chairs.
The co-opted officers could be officers well conversant with the ground level issues
and serve for greater coordination between Centre and States.
B. Term of the Committee - The Committee will be constituted on perpetual basis.

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C. Functions and mandate of the Committee:
(i) The Committee shall engage in data sharing on important cases of evasion or audit,
knowledge sharing and promote coordinated efforts in checking fake ITC being passed
on, curbing tax evasion practices, sharing important audit paras & modus-operandi
detected in Audit/Investigation, maintaining and updating contact details of field level
officers and other GST related matters.
(ii) Referring any issue requiring a change in Act/Rules/Notification/
Form/Circular/Instruction/improvement on GST portal, etc., to the GST Council
Secretariat and the relevant Policy Wing of the CBIC/ GSTN/ DoR.
(iii) Make collaborative efforts on the issues pertaining to taxpayer facilitation as well as
taxpayer grievances and conducting outreach programme.
(iv) To arrive at a uniform stand by the Central and State GST Administration in GST related
petitions before any legal forum.
(v) Co-ordination in the matter regarding Investigation/anti-evasion proceedings so as to
ensure that on the same issue, investigation in respect of taxpayers are not undertaken
by multiple administration.
(vi) Conducting a coordinated verification drive for suspicious tax payers at local level.
(vii) Any other GST matter deemed fit for coordinated work between Central and State
Tax Administrations.
D. Periodicity of Meeting of the Committee- The Committee shall meet once every quarter
or as the Co-chairs may decide.

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Agenda Item 11: Implementation of GSTAT consequent to passing of Finance Act, 2023
The final Report and recommendations of the Group of Ministers (GoM) on constitution of
Goods and Services Tax Tribunal constituted vide OM No. A-50050/150/2018-Cestat-DoR was tabled
before the GST Council in its 49th Meeting.
2. After detailed deliberations, the Council recommended that there should be one GST Appellate
Tribunal with a Principal Bench and State Benches. Each Bench of the Appellate Tribunal would consist
of four members i.e. two Judicial Members and two Technical Members, one Member from Centre and
one from the State. Appeals, where the tax or input tax credit involved or the amount of fine, fee or
penalty determined in any order appealed against, does not exceed fifty lakh rupees and which does not
involve any question of law may, with the approval of the President, and subject to such conditions as
may be prescribed on the recommendations of the Council, be heard by a single Member, and in all
other cases, shall be heard together by one Judicial Member and one Technical Member.
3. The report of GoM on GSTAT was adopted by the Council with certain modifications. Further,
the amendments in CGST Act relating to the constitution of GST Appellate Tribunal have been
incorporated through Finance Act, 2023 (refer clause 149-154 of the Finance Act, 2023), by substitution
of sections 109, 110 and 114 of CGST Act, 2017 and by amending sections 117, 118 and 119 of CGST
Act, 2017.
4. The status of corresponding amendments proposed to be made in State/UT GST Acts and number
& location of proposed Tribunal benches in States/UT are compiled and placed as Annexure A along
with their jurisdictions.
5. The GST Council may recommend a suitable date for notifying the amendments to CGST Act,
2017 made vide Finance Act, 2023. Accordingly, the States/UTs with legislature may also notify the
corresponding amendments in their respective Acts on the same date. The GSTAT would be constituted
after these amendments are notified.
6. As per Sec 110(4)(b)(iii) of CGST Act 2017, the Search-cum-Selection Committee for all cases
other than Technical Member (State) of a State Bench shall have Chief Secretary of a State to be
nominated by the Council as one of the Members. Accordingly, the GST Council may make suitable
recommendations in this regard. The list of States is given in Column 2 of Annexure A.
7. Further, in case of North Eastern States, it is submitted that there are five High Courts in North
East in the States of Tripura, Sikkim, Meghalaya, Manipur and Assam. In case of Arunachal Pradesh
and Meghalaya, the GSTAT has been proposed at Guwahati, Assam. It is proposed that it may be
clarified that the appeal arising out of GSTAT order in such cases will fall within jurisdiction of the
High Court of the State where the taxpayer is located and not in the High Court of Guwahati for clarity
of the taxpayers and the department. Meghalaya has also requested for this clarification.


Agenda for 50th GSTCM Volume II
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Annexure A
Status of confirmation of Amendments to SGST/UTGST Act corresponding to formation of
GSTAT
S.No. State Act Ordinance No. of Benches
proposed
Location of Benches
proposed *
1 Andhra
Pradesh
under process 3 Vijayawada,
Visakhapatnam, Tirupati
2 Arunachal
Pradesh
under process Common Bench with
Guwahati, Assam Guwahati
3 Assam Passed 1 Guwahati
4 Bihar under process 1 Patna
5 Chhattisgarh under process 2 Raipur,
Bilaspur
6 Delhi under process 2 Delhi
7 Goa under process 1 Panaji
8 Gujarat under process 3
Ahmedabad,
Surat,
Rajkot
9 Haryana under process 2 Gurugram
Hisar
10 Himachal
Pradesh
under process 1 Shimla
11 Jammu and
Kashmir
under process 1 Jammu & Srinagar on
rotational basis
12 Jharkhand under process 1 Ranchi
13 Karnataka under process 3 All three in Bengaluru
14 Kerala under process 3
Thiruvananthapuram,
Ernakulam,
Kozhikode
15 Madhya
Pradesh
under process 1 Bhopal
16 Maharashtra
17 Manipur under process
18 Meghalaya under process Common Bench with
Guwahati, Assam Guwahati
19 Mizoram under process 1 Aizawl
20 Nagaland under process
21 Odisha under process 1 Cuttuck
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22 Punjab under process 1 Chandigarh/Mohali
23 Puducherry under process 1 Puducherry
24 Rajasthan under process
25 Sikkim under process
Common Bench with
Kolkata Kolkata
26 Tamil Nadu
27 Telangana 2 Both at Hyderabad
28 Tripura under process 1 Agartala
29 Uttarakhand under process 1 Dehradun
30 Uttar Pradesh under process 5
Lucknow , Varanasi,
Ghaziabad, Agra and
Prayagraj
31 West Bengal under process 2 Both at Kolkata
* The States of Andhra Pradesh, Chhattisgarh, Gujarat, Kerala, Telangana and Uttar Pradesh have
defined the jurisdictions of the Benches based on Division/Zone/Revenue division.
Karnataka and West Bengal have defined the jurisdiction of the Benches as entire state jurisdiction.

Agenda for 50th GSTCM Volume II
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Agenda Item 12: Performance Report of Competition Commission of India (CCI) for month of
December, 2022 and 4th quarter of the F.Y 2022-23 along with Performance Reports of State
Level Screening Committee (SLSC), Standing Committee (SC) and Directorate General of AntiProfiteering (DGAP) for 3rd quarter and 4th quarter of the F.Y 2022-23 for the information of
the Council


The performance report of Anti-profiteering authorities at various levels are as under:
1.1. Performance of Competition Commission of India (CCI):

Opening
Balance
No. of
Investigation
Reports received
from DGAP
Disposal of Cases Closing
Total Balance
Disposal
No. of cases
Where
Profiteering
established
No. of cases
Where
Profiteering not
established
No. of cases
referred
back to
DGAP
December 2022*
128 0 0 0 0 0 128
4
th Quarter-1st January 2023 to 31st March 2023
128 42 0 0 0 0 170

*Report of National Anti-Profiteering Authority (NAA) for the month of October and November 2022
were tabled in 48th Meeting of GST Council. In accordance with the Notification No. 23/2022-Central
Tax dated 23.11.2022, the mandate of NAA has been transferred to the Competition Commission of
India (CCI) w.e.f 1st December, 2022.

1.2 Performance Report of DG of Anti-Profiteering (DGAP):
Opening Balance
(No.
of cases)
Receipt Disposal Mode of disposal of cases Closing Balance
Report to NAA (No. of cases)
confirming
profiteering
Report to NAA
for closure
action
3
rd Quarter- 1st October 2022 to 31st December 2022
65 22 7 6 1 80*

4
th Quarter - 1st January 2023 to 31st March 2023
80 0 44 28 16 36**


*Out of these 80 cases, 26 cases have been stayed by various Hon’ble High Courts
• One case has been held up per direction by NAA.
• Actual pendency of cases in which investigation is under process are 53 only.

**Out of these 36 cases, 28 cases have been stayed by various Hon’ble High Courts.
Agenda for 50th GSTCM Volume II
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• One case has been held up as per direction by NAA.
• Actual pendency of cases in which investigation is under process are 7 only.

1.3 Performance Report of the Standing Committee (SC) on Anti-profiteering:

Opening Balance (No. of
cases)
Receipt Disposal Closing Balance (No. of
cases)
3
rd Quarter - 1st October, 2022 to 31st December, 2022
32* 25 0 57
4
th Quarter - 1st January, 2023 to 31st March, 2023
57 1 25 33
* The closing balance of quarter ending September 2022 and Opening Balance of Quarter ending
December 2022 differs by 39 as complaints received in August and September 2022 got time barred
due to administrative reasons.
1.4 Performance Report from the State Level Screening Committee (SLSC):

Opening Balance (No.
of cases)
Receipt Disposal Closing
Balance (No.
of cases)
Cases referred to
Standing Committee
Cases Rejected
3
rd Quarter- 1st October, 2022 to 31st December, 2022
94 91 3 0 182*
4
th Quarter -1st January, 2023 to 31st March, 2023
176** 137 9 6 298

* The Closing Balance of Quarter ending September 2022 and Opening Balance of Quarter ending
December 2022 may differ by 1 due to non-receipt of report from State of Jharkhand.

** The closing balance of Quarter ending December 2022 and Opening Balance of Quarter ending
March 2023 may differ by 6 due to non-receipt of report from Andhra Pradesh & Punjab.

2. During these quarters CCI has undertaken the following activities/initiativesFor the month of December 2022:-
i. Vide Notification No. 23/2022-Central Tax dated 23.11.2022, the mandate of the Authority has
been transferred to the Competition Commission of India (CCI) w.e.f 01.12.2022. In the absence of
quorum of CCI, no matter was heard in the month of December 2022. At present, total 128 transferred
cases related to anti-profiteering transferred matters are now pending for completion of proceedings at
the level of CCI.
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ii. The erstwhile NAA had passed 380 orders since its inception establishing profiteering of Rs. 2563
Cr. (Approx.) out of which amount of Rs. 563 Cr. (Approx.) has either been passed on to the buyers or
deposited in the Consumer Welfare Funds or deposited with the High Courts.
iii. Forty-Four (44) complaints related to anti-profiteering provisions were received during the quarter
ending December, 2022 via NAA portal, e-mails and by post. Twenty-Nine (29) complaints relating to
profiteering in terms of Section 171 of the CGST Act, 2017 were forwarded to the respective Screening
Committees/ Standing Committee for further action/examination thereof. Fifteen (15) complaints that
related to other GST/enforcement issues were forwarded to the Jurisdictional State & Central GST
Commissioners/ Chief Commissioners for necessary action.
For the quarter 01.01.2023 to 31.03.2023:-
iv. At present, 170 cases related to anti-profiteering matters are pending with the CCI.
v. Thirty-One (31) complaints related to anti-profiteering provisions were received during the quarter
ending March, 2023 via NAA portal, e-mails and by post. Twelve (12) complaints relating to
profiteering in terms of Section 171 of the CGST Act, 2017 were forwarded to the respective Screening
Committees/ Standing Committee for further action/examination thereof. Nineteen (19) complaints that
related to other GST/enforcement issues were forwarded to the Jurisdictional State & Central GST
Commissioners/ Chief Commissioners for necessary action.
3. Accordingly, the Performance Report of Competition Commission of India (CCI) for month of
December, 2022 and for the 4th quarter of the F.Y 2022-23 along with Performance Reports of SLSC,
SC and DGAP on Anti-Profiteering for 3rd quarter and 4th quarter of the F.Y 2022-23 are placed before
the GST Council for information.
*****
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Confidential
Agenda for
50th GST Council Meeting
11th July 2023
Volume-III

Agenda for 50th GSTCM Volume II
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Agenda for 50th GSTCM Volume II
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GST Council Secretariat New Delhi
5
th Floor, Tower-II, Jeevan Bharti Building, New Delhi
14th June, 2023
OFFICE MEMORANDUM
Subject: Notice for the 50th Meeting of the GST Council scheduled to be convened on
11th July, 2023.
The undersigned is directed to refer to the subject stated above and to convey that the 50th Meeting of
the GST Council will be held on 11th July, 2023 at New Delhi. The schedule of the Meeting is as follows:
• Tuesday, 11th July, 2023: 11:00 A.M. onwards
2. In addition, an Officers' Meeting will be held on 10th July, 2023 as per the following schedule:
• Monday, 10th July, 2023: 2: 00 P.M. onwards
3. The agenda items and other details for the 50th Meeting of the GST Council will be
communicated in due course of time.
4. Keeping in view the logistical constraints, it is requested that participation from each State/UT
may be kept limited to two (02) officers in addition to the Hon'ble Member of the GST Council.
5. Kindly convey the invitation to Hon’ble Member of the GST Council to attend the Meeting of
the GST Council.
Sd/-
(Sanjay Malhotra)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653
Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with the
request to brief Hon’ble Minister about the above said meeting.
2. PS to the Hon’ble Minister of State (Finance), Government of India, North Block, New Delhi
with the request to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Union Territories of Delhi, Puducherry and
Jammu and Kashmir with the request to intimate the Minister in charge of Finance/Taxation or any
other Minister nominated by the State Government as a Member of the GST Council about the above
said meeting.
4. Chairman, CBIC, North Block, New Delhi, as a permanent invitee to the proceeding of the
Council.
5. Chairman, GST Network.

Agenda for 50th GSTCM Volume II
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Agenda for 50th GSTCM Volume II
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TABLE OF CONTENTS
Sl. No. Agenda Item Page No.
3.
(Part-II)
Issues recommended by the Law Committee for the consideration
of the GST Council
xi(a). Pilot Project for biometric-based Aadhaar authentication of
registration applicants in Puducherry
7-9
xv. Goods and Services Tax Appellate Tribunal (Appointment
and Conditions of Service of President and Members) Rules,
2019
10-25
xvi. Seeking clarity on taxability of share capital held in
subsidiary company by the parent company
26-31
xvii. Amendment in CGST Rules, 2017 32-44
xviii. Proposal to provide a special procedure to file appeal against
the orders passed in accordance with the Circular No.
182/14/2022-GST, dated 10.11.2022, pursuant to the
directions issued by the Hon’ble Supreme Court in the
Union of India v/s Filco Trade Centre Pvt. Ltd
45-49
xix. Issues pertaining to ISD mechanism and taxability of
services provided by one distinct person to another distinct
person
50-58
11.
(Addendum)
Addendum to Annexure-A of the Agenda item 11 59-59
13 Request for extension of due dates for filing GSTR-7, GSTR-1 &
GSTR-3B for the months of April, May and June 2023 and
extension of Amnesty Schemes in the State of Manipur
60-61
14. Review of revenue position under Goods and Services Tax 62-70
4.
(Part-II)
g) Recommendations of Fitment Committee on positive list of
services to be specified in Sr. No. 3/3A of Notification No.
12/2017-CT(R)) dated 28.06.201
71-74
Any other agenda with the permission of the Chair
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Agenda Item 3(xi)(a): Pilot Project for biometric-based Aadhaar authentication of registration
applicants in Puducherry.
On the recommendations of the GST Council in its 48th meeting held on 17.12.2022, it was
decided to conduct a pilot in the state of Gujarat for biometric-based Aadhaar authentication of highrisk registration applicants.
2. To this effect, -
(i) Amendments have been made in rule 8(4A), rule 8(5) and rule 9 have been made in the CGST Rules,
2017 as well as in the Gujarat SGST Rules, as below:
 Rule 8(4A) of CGST Rules has been substituted vide notification no. 04/2023-Central Tax
dated 31.03.2023 as under:
(4A) Where an applicant, other than a person notified under sub-section (6D) of section 25, opts for
authentication of Aadhaar number, he shall, while submitting the application under sub-rule (4),
undergo authentication of Aadhaar number and the date of submission of the application in such cases
shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the
application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier.
Provided that every application made under sub-rule (4) by a person, other than a person notified under
sub-section (6D) of section 25, who has opted for authentication of Aadhaar number and is identified
on the common portal, based on data analysis and risk parameters, shall be followed by biometricbased Aadhaar authentication and taking photograph of the applicant where the applicant is an
individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section
25 where the applicant is not an individual, along with the verification of the original copy of the
documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centres
notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be
complete only after completion of the process laid down under this proviso.
 rule 8(5) has been amended vide Notification No. 26/2022-CT dated 26.12.2022 as under:
(5) On receipt of an application under sub-rule (4) or sub-rule (4A), as the case maybe, an
acknowledgement shall be issued electronically to the applicant in FORM GST REG-02.
 rule 9 has been amended vide Notification No. 26/2022-CT dated 26.12.2022 as under
(1) The application shall be forwarded to the proper officer who shall examine the application and the
accompanying documents and if the same are found to be in order, approve the grant of registration to
the applicant within a period of seven working days from the date of submission of the application:
Provided that where –
(a) a person, other than a person notified under sub-section (6D) of section 25, fails to undergo
authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does not opt for
authentication of Aadhaar number; or
(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of
rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out
physical verification of places of business; or;
(b) the proper officer, with the approval of an officer authorised by the Commissioner not below the
rank of Assistant Commissioner, deems it fit to carry out physical verification of places of business,
the registration shall be granted within thirty days of submission of application, after physical
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verification of the place of business in the presence of the said person, in the manner provided
under rule 25 and verification of such documents as the proper officer may deem fit;
(2) Where the application submitted under rule 8 is found to be deficient, either in terms of any
information or any document required to be furnished under the said rule, or where the proper officer
requires any clarification with regard to any information provided in the application or documents
furnished therewith, he may issue a notice to the applicant electronically in FORM GST REG-03 within
a period of seven working days from the date of submission of the application and the applicant shall
furnish such clarification, information or documents electronically, in FORM GST REG-04, within a
period of seven working days from the date of the receipt of such notice.
Provided that where –
(a) a person, other than a person notified under sub-section (6D) of section 25, fails to undergo
authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does not opt for
authentication of Aadhaar number; or
(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of
rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out
physical verification of places of business; or
(b) the proper officer, with the approval of an officer authorised by the Commissioner not below the
rank of Assistant Commissioner, deems it fit to carry out physical verification of places of business,
the notice in FORM GST REG-03 may be issued not later than thirty days from the date of submission
of the application.
…”
However, the said amendments have not been made in the SGST / UTGST Rules of other states/ UTs
at present.
(ii) Further, rule 8(4B) has been introduced in CGST Rules only. Subsequently, Notification No.
27/2022-CT dated 26.12.2022 has been issued by the Centre under rule 8(4B) for specifying all states
and UTs, except Gujarat, where provisions of rule 8(4A) will not apply.
3.1 Department of Revenue vide their email dated 27.06.2023 has informed that Puducherry has
communicated their willingness to conduct pilot for biometric authentication of Aadhaar for high-risk
registration applicants in their State also. In order to implement the said biometric-based Aadhaar
authentication for registration applicants in Puducherry, the following notifications may be required to
be issued:
(i) The State of Puducherry will need to substitute rule 8(4A) of Puducherry SGST Rules on the lines
of corresponding substitution of Rule 8(4A) of CGST Rules vide notification no. 04/2023-Central Tax
dated 31.03.2023;
(ii) Further, the State of Puducherry will also need to amend rule 8(5) and rule 9 of Puducherry SGST
Rules on the lines of corresponding amendments in CGST rules notified vide notification no. 26/2022-
CT dated 26.12.2022.
(iii) The Central government may also be required to further amend Notification No. 27/2022-CT dated
26.12.2022 for specifying that the proviso to rule 8(4A) will apply to the State of Puducherry as well.
3.2 Further, it is proposed that the Council may authorize the Chairperson to extend the said pilot
project, if required, in other States and/ or Union territories which may be willing to conduct pilot for
biometric authentication of Aadhaar for high-risk registration applicants.
4. It is further mentioned that the above amendments in sub-rule (5) of rule 8 and sub-rule (1) and
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(2) of rule 9 of CGST Rules vide Notification No. 26/2022-CT dated 26.12.2022, as detailed in Para 2
above, have been made at present only in Gujarat SGST Rules and in CGST Rules but not in SGST
Rules of other states. It is proposed to notify the said amendments in sub-rule (5) of rule 8 and sub-rule
(1) and (2) of rule 9 in the SGST Rules of the remaining States as well to provide for enabling clause
for mandatory physical verification of an applicant who has undergone authentication of Aadhaar and
is identified on the common portal based on data analysis and risk parameters.
5. Therefore, the proposals at para 3.1, 3.2 and 4 are placed before the Council for approval.

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Agenda Item 3(xv): Goods and Services Tax Appellate Tribunal Appointment and Conditions of
Service of President and Members) Rules, 2019
In 49th GST Council meeting held on 17th 18th February, 2023, the recommendation of the Group of
Ministers (GoM) on the constitution of Goods and Services Tax Appellate Tribunal (GSTAT) was
accepted by the Council. Accordingly, the law amendments in CGST Act, 2017 relating to the
constitution of GST Appellate Tribunal have been incorporated through Finance Act, 2023 (vide clause
149 to154 of the Finance Act, 2023), by substitution of sections 109, 110 and 114 of CGST Act and by
amending sections 117, 118 and 119 of CGST Act.
2. The said provisions of Finance Act, 2023 will be notified in due course in coordination with the
states and Union territories once necessary amendments are made in the respective State/ UTGST Acts.
3. Meanwhile, it is proposed that Rules governing appointment and conditions of President and
Members of the proposed GST Tribunal may be formulated for enabling smooth constitution and
functioning of GST Tribunal. The said Rules may be notified after notification of the above provisions
of the Finance Act, 2023.
3.1 The said issue was deliberated by the Law Committee in its meeting held on 31.05.2023. The
Law Committee recommended the issuance of GSTAT (Appointment and Conditions of Service of
President and Members) Rules, 2023. The draft GSTAT (Appointment and Conditions of Service of
President and Members) Rules, 2023 as recommended by the Law Committee are enclosed as
Annexure-A of this agenda note.
4. Accordingly, the same is placed before GST Council for deliberation and approval please.
*******
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Annexure-A
Draft Rules as per Finance Act, 2023
MINISTRY OF FINANCE
(Department of Revenue)NOTIFICATION
G.S.R. (E).— In exercise of the powers conferred by section 110 of the Central Goods
And Services Tax Act, 2017 (12 of 2017) read with section 164 of the said Act, the Central
Government, in supersession of the Goods and Services Tax Appellate Tribunal (Appointment
and Conditions of Service of President and Members) Rules, 2019, hereby makes the
following rules, namely:-
CHAPTER I PRELIMINARY
1. Short title, commencement and application.—
(1) These rules may be called the Goods and Services Tax Appellate Tribunal (Appointment
and Conditions of Service of President and Members) Rules, 2023.
(2) Save as provided in these rules, they shall come into force on the date of their publication
in the Official Gazette.
(3) These rules shall apply to the President, Judicial Member, Technical
Member (Centre) and Technical Member (State) of the Principal Bench and State Bench
of Goods and Services Tax Appellate Tribunal.
2. Definitions.
In these rules, unless the context otherwise requires, —
(a) “Act” means the Central Goods And Services Tax Act, 2017 (12 of 2017);
(b) “Committee” means the Search-cum-Selection Committee constituted under clause (a) of
sub-section 4 of section 110 of the Act for Technical Member (State) of the State Bench
or the Search-cum-Selection Committee constituted under clause (b) of sub-section 4 of
section 110 of the Act for President and other Members.
(c) “Form” means a Form appended to these rules;
(d) “Member” means a Technical Member (Centre) or Technical Member (State) or Judicial
Member of the Goods and Services Tax Appellate Tribunal;
(e) “section” means a section of the Act;
(f) “Tribunal” means Goods and Services Tax Appellate Tribunal as established under section
109 of the Act.
CHAPTER II
APPOINTMENT OF PRESIDENT AND MEMBER
3. Selection for posts of President and Members—
(1) The Committee shall determine its own procedure for making recommendation.
(2) The Committee may cause a vacancy circular to be issued through the MemberSecretary, giving details of the posts of Members proposed to be filled up, including
the following—
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a. number of existing and anticipated vacancies;
b. qualifications;
c. salary and allowances;
d. format for application; and
e. last date for filing of applications,
in Form-I after making such modifications as may be deemed fit by the Committee.
(3) The Committee shall scrutinise, or cause to be scrutinised, every application
received in response to the circular, against the qualifications and may shortlist such
number of eligible candidates for personal interaction as it may deem fit.
(4) For the post of President, the Committee may, either cause a vacancy circular to be
issued and call for applications or search for suitable persons eligible for
appointment and make an assessment for selection to the post of President.
(5) The Committee shall make its recommendations based on the overall assessment
of eligible candidates including assessment through the personal interaction after
taking into account the suitability, record of past performance, integrity as well as
adjudicating experience keeping in view the requirements of the Tribunal and shall
recommend a panel of two names for every post for which selection is being done
in accordance with the provisions of sub – section (6) of section 110 of the Act.
4. Selection for re - appointment.— (1) An application for re-appointment shall be
considered in the same manner asthat for the original appointment, preferably, alongwith
all the persons shortlisted in response to the vacancy circularor otherwise.
(2) While making its assessment for suitability to a post, the Committee shall give
additional weightage to the persons seeking re-appointment for their experience in the
Tribunal and while doing so, shall take into account, the performance of the person while
working as a President or Member in the Tribunal.
5. Medical fitness of President and Members.—
(1) No person shall be appointed as President, Judicial Member or
Technical Member (Centre) of the Principal Bench or the State Bench of the Tribunal or
as Technical Member (State) of the Principal Bench unless he is declared medically fit
by an authority specified by the Central Government in this behalf.
(2) No person shall be appointed as Technical Member (State) of the State
Bench of the Tribunal unless he is declared medically fit by an authority specified in this
behalf by the State in which the said State Bench is located.
6. Retirement from parent service on appointment as President or Member.— (1)
Where, the person appointed as President or Member is a serving Judge of the Supreme
Court or a High Court or a serving Member of an organised Service, he shall either resign
or obtain voluntary retirement before joining the Tribunal.
CHAPTER III
RESIGNATION OR REMOVAL OF PRESIDENT OR MEMBER
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7. Resignation.— President or Member may, by writing under his hand addressed to the
Central Government, resign from his office at any time:
Provided that the President or Member shall, unless he is permitted by the Central
Government to relinquish office sooner, continue to hold office until the expiry of three
months from the date of receipt of such notice by the Government or until a person duly
appointed as his successor enters upon his office or until the expiry of his term of office,
whichever is earliest.
8.Procedure for inquiry into complaints.—
(1) Where a written complaint alleging any definite charge of the nature referred to in
sub-section (12) of section 110 of the Act in respect of President or Member is received
by the Central Government, it shall make a preliminary scrutiny of such complaint.
(2) Where, on preliminary scrutiny, the Central Government is of the opinion that there
are reasonable grounds for making an inquiry into the truth of any allegation
referred to in sub-rule (1), it shall make a reference to the concerned Committee.
(3) The said Committee shall conduct an inquiry or cause an inquiry to be conducted
by a person who is, or has been, a -
(a) Judge of Supreme Court or Chief Justice of a High Court, where the inquiry is
against President; or
(b) Judge of a High Court, where the inquiry is against a Member.
(4) The inquiry shall be completed within such time or such further time as may be
specified by the Central Government preferably within six months.
(5) After the conclusion of the inquiry, the Committee shall submit its report to the
Central Government stating therein its findings and the reasons thereof on each of
the charges separately with such observations on the whole case as it may think fit.
(6) The Committee shall not be bound by the procedure laid down by the Code of Civil
Procedure,1908 (5 of 1908) but shall be guided by the principles of natural justice
and shall have power to regulate its own procedure, including the fixing of date,
place and time of its inquiry.
CHAPTER IV
SALARY AND ALLOWANCES
9. Salary. — (1) The President of the Tribunal shall, be paid a salary of Rs. two lakh fifty
thousand (fixed) per month.
(2) The Member shall be paid a salary of Rs. two lakh twenty- five thousand per month.
(3) In case, a person appointed as the President, or Member, is in receipt of any
pension, the pay of such person shall be reduced by the gross amount of pension
drawn by him.
10. Allowances.— (1) The President and Members shall be entitled to draw
allowances and benefits as areadmissible to a Government of India officer holding Group
'A' post carrying the same pay.
(2) Notwithstanding anything contained in sub-rule (1), the President or Members shall
have option to avail of accommodation to be provided by the Central Government
as per the rules for the time being in force or shall be eligible for reimbursement of
house rent subject to a limit of -
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(a) one lakh fifty thousand rupees per month in case of President of the Tribunal; and
(b) one lakh twenty-five thousand rupees per month in case of Members of the
Tribunal.
11.Transport allowance.— The President, or Members shall be entitled to the facility of
staff car for journeys for official and private purposes in accordance with the facilities as
are admissible to a Government of India officer holding Group 'A' post carrying the same
pay as per the provisions of Staff Car Rules.
CHAPTER V
PENSION, PROVIDENT FUND, GRATUITY AND LEAVE
12. Pension, Provident Fund and Gratuity.— Pension, Provident Fund and gratuity
shall not be admissible for the service rendered in the Tribunal.
13.Leave. (1) The President or Member shall be entitled to thirty days of earned leave
for every year of service.
(2) Casual Leave not exceeding eight days may be granted to the
President or a Member in a calendar year.
(3) The payment of leave salary during leave shall be governed by rule
40 of the Central Civil Services (Leave) Rules, 1972.
(4) The President or Member shall be entitled to encashment of leave
in respect of the earned Leave standing to his credit, subject to the condition
that maximum leave encashment, including the amount received at the time
of retirement from previous service shall not in any case exceed the
prescribed limit under the Central Civil Service (Leave) Rules,1972.
(5) Leave sanctioning authority for-
(a) Member, shall be the President;
(b) President or Member in case of absence of President, shall
be the Central Government.
(6) The Central Government shall be the sanctioning authority for
foreign travel to the President and Members.
CHAPTER VI
POWERS OF PRESIDENT AND VICE PRESIDENT
14. Powers of President.- The President shall exercise the powers of Head of the
Department for the purpose of:-
(a) Delegation of Financial Power Rules, 1978;
(b) General Financial Rules, 2017; and
(c) Fundamental Rules and Supplementary Rules.
(d) CCS (CCA) Rules, 1965
15. Powers of Vice-President: - The Vice-President shall exercise the powers of the
President provided under section 114 of the Act for the relevant State Benches for the
purpose of:-
(a) Allocation of appeals amongst members within a bench under
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his jurisdiction.
(b) Deciding the appeals to be heard by Single Member as per
provisions of the Act.
(c) Transfer of appeals amongst the State Benches within his
jurisdiction.
(d) Refer cases under clause (a) of sub-section (9) of Section 109 of the
Act to a Member in a State Bench within his jurisdiction.
(e) Such other administrative and financial powers as may be assigned
by the President by a general or special order.
CHAPTER VII MISCELLANEOUS
16.Declaration of Financial and other Interests.— The President or the Member
shall, before entering upon his office, declare his assets, and his liabilities and financial
and other interests.
17. Other conditions of service.— (1)The terms and conditions of service of a President
or Member with respect to which no express provision has been made in these rules, shall
be such as are admissible to a Government of India officer holding Group 'A' post carrying
the same pay.
(2) The President, or Member shall not undertake any arbitration
assignment while functioning in these capacities in the Tribunals.
(3) The President, or Member of the Tribunal, shall not, for a period of
two years from the date on which theycease to hold office, accept any
employment in, or connected with the management or administration of, any
person who has been a party to a proceeding before the Tribunal:
Provided that nothing contained in this rule shall apply to any employment under the
Central Government or a State Government or a local authority or in any statutory
authority or any corporation established by or under any Central, State or Provincial Act
or a Government company as defined in clause (45) of section 2 of the Companies Act,
2013 (18 of 2013).
18.Oath of office and secrecy.— Every person appointed to be the President, or Member
shall, before entering upon his office, make and subscribe an oath of office and secrecy in
Form II and Form III annexed to these rules.
19.Power to relax:- Where the Central Government is of the opinion that it is necessary
or expedient so to do, it may, on the recommendations of the Council, by order and for
reasons to be recorded in writing, relax any of the provisions of these rules with respect
to any class or category of persons.
20.Interpretation.- If any question arises relating to the interpretation of these rules, the
decision of the Central Government thereon, on the recommendations of the Council shall
be final.
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FORM I
(See rule 3)
[Format for vacancy circular including the format for application]
F. No. .
Government of India
Ministry of ______________
Department of ____________. Room No._____. .
New Delhi-110001
Dated, the ______
*****
Vacancy Circular

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Subject: - Selection for the posts of President/Member in ……………………..Tribunal-reg.
*****
1. Tribunal: - The Goods and Services Tax Appellate Tribunal is an Appellate Authority established
under the Central Goods And Services Tax Act, 2017 to
hear various appeals under the Act, .Principal Bench is situated at New
Delhi and its state Benches are situated
at .A Member, upon selection, may be posted at any
of these places.
2. Vacancy: - Applications are being invited for the following existing and________ anticipated
vacancies:
Post Place Date of Vacancy
3. Qualification:- The qualifications, eligibility, salary and other terms and conditions of the
appointment of a candidate will be governed by the provisions of the of Central Goods And Services
Tax Act, 2017 and Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service
of President and Members) Rules, 2023.
4. Procedure for selection: - The Search-Cum-Selection Committee constituted under the clause
(a) of sub-section 4 of section 110 for the posts of Technical Member (State) of the State Bench and
under clause (b) of sub-section (4) of the said section of Central Goods And Services Tax Act, 2017 for
the posts of President and other Members shall recommend names for appointment to the said post/s
and shall scrutinise the applications with respect to suitability of application for the posts by giving due
weightage to qualification and experience of candidates and shortlist candidates for conducting personal
interaction. The final selection will be done on the basis of overall evaluation of candidates done by the
Committee based on the qualification, experience and personal interaction.
5. Application Procedure:- Applications by eligible and willing officers are to be submitted
through proper channel(wherever applicable) and should be accompanied with (i) bio-data in the
proforma at Annexure-I (ii) Certificate to be furnished by the employer/ head of office/ forwarding
authority as in Annexure-II (iii) clear photocopies of the up-to-date CR/APAR dossier of the officer
containing CR/APARs of at least last five years duly attested by a Group A officer (iv) cadre clearance
(v) integrity certificate/clearance from vigilance and disciplinary angle as in Annexure-III (vi) statement
giving details of major or minor penalties, if any, imposed on the officer during the last ten years, to the
following address, so as to reach this office latest by ________:-
[Name and Address]
Applicants can Log on to https://. to access the home page of the Online Application to apply
(wherever applicable).
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6. No TA/DA will be admissible to the candidates to be called for interview/interaction. The
candidates are required to make own arrangements.
7. Advertisement and Prescribed application form can be downloaded from Ministry’s/Tribunals
website (name of the website).
8. Any application received after due date or without necessary Annexure as mentioned above
will not be entertained.
Wide publicity may be given in all organizations and their field formations to facilitate early and
optimum number of application.
(Name of the Signing Officer)
Under Secretary to the Govt. of
India/Director

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Annexure-I
PROFORMA
1. Name :
2. Date of Birth :
3. Category(SC/ST/OBC/UR) :
4. Designation/Profession :
5. Contact Details :
Residential Official
Present Permanent
Address:
Mobile/Phone No.
Email:
6. Cadre/Service [Wherever applicable] :
Space for
photograph duly
signed by
candidate
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7. Educational qualification (in reverse chronological order):
8. Work Experience:
8A. For the experience as employee, Employment record in chronological order starting with present
Employment, list in reverse:
(a) For the post of Technical Member (Centre) and Technical Member (State) .
Sl. No. Name & address of
employer
(Govt./PSU/Ministr
y/ Department/any
other
Designation, Pay
or Scale of pay
(Pay in Pay
Matrix)
Period of
Service
Nature of
work/
experience*
Whether the said service is
Group A or equivalent to
Group A
From To
* Please specify whether the said work involves administration of an existing law (as defined in clause
(48) of section (2) of the Central Goods and Services Tax Act, 2017) or the goods and services tax in
the Central Government in respect of post of Technical Member (Centre) or whether the work involves
administration of an existing law or the goods and services tax or in the field of finance and taxation in
the State Government in respect of post of Technical Member (State).
Also specify whether the said works involves judicial/ quasi-judicial functions.
(b) For the post of President and Judicial Member
Sl.
No.
Name & address of
employer
(Govt./Court/any other
Designation, Pay or Scale of pay
(Pay in Pay Matrix)
Period of
Service
Nature of work/
experience*
From To
Sl. No. Name of
University/
Equivalent
Institution
Degree Year of
passing
Division/
% of marks
obtained
Academic
Distinction
Subject/
Specialization
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• Please specify whether the said work involves Judicial or Quasi-Judicial /Criminal/Civil
/Taxation /Company Affairs/or any other as may be applicable.
9. Write up on adjudicating experience :
of the applicant (200 words)
[Wherever applicable]
10. Mention :
a. Whether minimum three years of experience is there : (Yes/No. If yes, provide details thereof )
in the administration of an existing law or goods and
services tax in the Central Government for the post of
Technical Member (Centre)
b.Whether minimum three years of experience is there : (Yes/No. If yes, provide details thereof )
in the administration of an existing law or goods and
services tax or in the field of finance and taxation
in the State Government for the post of
Technical Member (State)
c. Any experience in handling such cases involving : (Brief Writeup)
interpretation of goods and services tax law or an
existing law for the posts of Judicial Member

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12. Write up on 05, major achievement : (200 words each)
13. Awards/honours/Publications, if any :
14. Affiliation with the professional bodies/ :
Institutions/societies/or any other body
Including political party.
15. Additional information, if any, which :
You would like to mention in support of the application for the post.
DECLARATION
1. I certify that the foregoing information is correct and complete to the best of knowledge and
belief and nothing has been concealed/distorted. If at any time I found to have concealed/distorted any
material information; my appointment shall be liable to summary termination without notice.
2. I shall not withdraw my candidature after the meeting of the Selection Committee.
3. I shall not decline the appointment, if selected for appointment by the ACC.
4. I shall join within 30 days from the date of issue of order of appointment.
5. I am aware that in case I violate any of the conditions mentioned at SI.No.2 to 4, the
Government of India is likely to debar me for a period of three years for consideration for appointment
outside the cadre and in any Autonomous Body/Statutory Body/Regulatory Body.

Place : Date:
Signature of the candidate

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Annexure- II
CERTIFICATE TO BE FURNISHED BY THE EMPLOYER/HEAD OFOFFICE/FORWARDING
AUTHOTITY
1. Certified that the particular furnished by Shri/Smt/Kum are correct and he/she possesses
educational qualifications and experience mentioned in Annexure-I.
2. It is also certified that there is no vigilance/ disciplinary case either pending or being
contemplated against him/her and vigilance clearance issued by competent Authority in the enclosed
Annexure (III).
3. His/her integrity is certified.
4. No major or minor penalty was imposed on Shri/Smt/Kum during the last 10 years
period.
5. The up-to-date attested Photostate copies of ACR/APAR of last 5years (each Photostat copy of
ACR/APAR should be attested) in respect of Shri/Smt/Kum--------------------------------------------------
are enclosed herewith.
Seal & Signature of the cadre controlling Authority

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Annexure-III
PARTICULARS OF THE OFFICERS FOR WHOM VIGILANCE CLEARANCE IS BEING
SOUGHT
(To be furnished and signed by the competent authority or HOD)
1. Name of the Officer (in full) :
2. Father’s name :
3. Date of Birth :
4. Date of Retirement :
5. Date of entry into service
6. Service to which the officer belongs :
including batch /year/ cadre etc. ,
wherever applicable
7. Positions held (During ten preceding years):
8. Whether the officer has been placed on :
the agreed list or list of Officer of
Doubtful Integrity (if yes, details to be given)
9. Whether any allegation of misconduct :
Involving vigilance angle was examined against
the officer during the last 10 Years and if so with what result (*)
10. Whether any punishment was awarded to :
the officer during the last 10 years and if
so, the date of imposition and details of penalty (*)
11. Is any disciplinary/ criminal proceedings :
or charge sheet pending against the
officer as on date (if so, details to be furnished)
12. Is any action contemplated against the :
Officer as on date (if so, details to be furnished (*)
(*) If vigilance clearance had been obtained in the past, the information may be provided for the
period thereafter,
Date:
(NAME AND SIGNATURE)
S. No Organisation
(name in full)
Designation
& Place of
Posting
Administrative/
Nodal
Ministry/
Department
concerned(in case of
officers of PSUs etc.)
From To
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FORM II
(See rule 17)
Form of Oath of Office for President/ Member
I, A. B., having been appointed as President/Member of the Goods and Service Tax
Appellate Tribunal, do solemnly affirm/do swear in the name of God that I will faithfully
and conscientiously discharge my duties as the President/ Member of the Appellate
Tribunal to the best of my ability, knowledge and judgment, without fear or favour,
affection or ill-will.
FORM III
(See rule 17)
Form of Oath of Secrecy for President/Member
I, A. B., having been appointed as the President/Member of the Goods and Service Tax
Appellate Tribunal, do solemnly affirm/do swearin the name of God that I will not directly
or indirectly communicate or reveal to any person or persons any matter which shall be
brought under my consideration or shall become known to me as President/ Member of
the Appellate Tribunal except as may be required for the due discharge of my duties as
the President/Member.

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Agenda Item 3(xvi): Seeking clarity on taxability of share capital held in subsidiary company by
the parent company
Representation has been received from trade to clarify whether the holding of shares in a subsidiary
company by the parent company will be treated as ‘supply of service’ under GST and will be taxed
accordingly or whether such transaction is not a supply.
2. Some of the field formations/ investigative agencies are relying on the SAC code 997171-
“services provided by holding companies, i.e. holding securities of (or other equity interests in)
companies and enterprises for the purpose of owning a controlling interest”, and are demanding GST
on “share capital held in subsidiary company’ under forward charge basis and on ‘share capital held by
a foreign holding company’, on reverse charge basis by classifying the said activity as an import of
service by invoking residual entry 15 of Notification 11/2017 CGST (rate). They have taken a view that
equity capital is to be treated as a financial asset which is in the form of an investment made with a
purpose to have control over the subsidiary company. Therefore, it is being claimed that the activity of
holding securities is nothing but an investment made by holding company to have control over
subsidiary company and therefore, it is a supply of “services of holding securities in subsidiary
company” by the holding company to the subsidiary company.
3. Trade, on the other hand, has represented that a subsidiary company is controlled by the holding
company by holding equity shares to protect the interests of the parent/ holding company and to regulate
the capital infused by them. Such a control is not exercised with an intention to benefit the subsidiary
company. It has also been represented that mere controlling interest does not qualify the said activity to
be termed as a taxable ‘supply of service’ as per the SAC code 997171 and therefore, merely by holding
equity shares in a subsidiary company, the parent company cannot be said to be rendering to the
subsidiary company.
4. RELEVANT GST PROVISIONS:
4.1 Various definitions in CGST Act, 2017 to be referred in the Agenda Note are detailed below:
• Section 2(52) "goods" means every kind of movable property other than money and
securities but includes actionable claim, growing crops, grass and things attached to or
forming part of the land which are agreed to be severed before supply or under a
contract of supply;”
• Section 2(102) "services" means anything other than goods, money and securities but
includes activities relating to the use of money or its conversion by cash or by any other
mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged;
[Explanation.- For the removal of doubts, it is hereby clarified that the expression "services" includes
facilitating or arranging transactions in securities;]
• “ Section 7. Scope of supply.-
(1) For the purposes of this Act, the expression - "supply" includes-
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence,
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rental, lease or disposal made or agreed to be made for a consideration by a person in the course or
furtherance of business,
[(aa) the activities or transactions, by a person, other than an individual, to its members or constituents
or vice-versa, for cash, deferred payment or other valuable consideration.
Explanation .-For the purposes of this clause, it is hereby clarified that, notwithstanding anything
contained in any other law for the time being in force or any judgment, decree or order of any Court,
tribunal or authority, the person and its members or constituents shall be deemed to be two separate
persons and the supply of activities or transactions inter se shall be deemed to take place from one such
person to another;]
(b) import of services for a consideration whether or not in the course or furtherance of business; and
(c) the activities specified in Schedule I, made or agreed to be made without a consideration;
(d)[****].
[(1A) where certain activities or transactions constitute a supply in accordance with the provisions of
sub-section (1), they shall be treated either as supply of goods or supply of services as referred to
in Schedule II.]
(2) Notwithstanding anything contained in sub-section (1),-
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a State Government or any
local authority in which they are engaged as public authorities, as may be notified by the Government
on the recommendations of the Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the
recommendations of the Council, specify, by notification, the transactions that are to be treated as -
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.”
4.2 Definition of securities under clause (h) of section 2 of Securities Contracts (Regulation) Act,
1956 is as below:
“securities” include— (i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable
securities of a like nature in or of any incorporated company or other body corporate;
…………………………………”
4.3 Further, subsidiary company has been defined in sub-section 87 of section 2 of Companies Act,
2013. The same is reproduced below for reference:
“subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding
company), means a company in which the holding company—
(i) controls the composition of the Board of Directors; or
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(ii) exercises or controls more than one-half of the total share capital either at its own or together with
one or more of its subsidiary companies:
Provided that such class or classes of holding companies as may be prescribed shall not have layers of
subsidiaries beyond such numbers as may be prescribed.
Explanation.—For the purposes of this clause,—
(a) a company shall be deemed to be a subsidiary company of the holding company even if the control
referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company;
(b) the composition of a company‘s Board of Directors shall be deemed to be controlled by another
company if that other company by exercise of some power exercisable by it at its discretion can appoint
or remove all or a majority of the directors;
(c) the expression “company” includes any body corporate;
(d)”layer” in relation to a holding company means its subsidiary or subsidiaries;”
5. Analysis of the Issue:
5.1 Under GST law, supply is the relevant taxable event for levying tax. For an activity/transaction
to be liable to GST, existence of ‘supply’ as defined under section 7 of CGST Act, 2017 should be there.
5.2 Section 7 of CGST Act, 2017 defines supply to mean ‘all forms of supply of goods or services
or both made or agreed to be made for a consideration by a person in the course or furtherance of
business.’ Therefore, it needs to be established that the activity which is to be considered as a supply
must be done in course or furtherance of business and there should be a consideration made for the
same. Further, Schedule I lists certain activities which are to be treated as a supply even if they are made
without any consideration. Entry 2 of Schedule I of CGST Act, 2017 mentions supply of goods or
services or both between related persons or distinct persons as a supply even if the same is made without
any consideration. Further, Entry 4 of the said Schedule deems import of service by a person from a
related person/ company or any of his other establishments outside India as an import of service even
if rendered without any consideration, if the said transaction is in course or furtherance of business.
5.3 Further, securities under GST Law is considered neither goods nor services in terms of
definition of goods under clause (52) of section 2 of CGST Act, 2017 and in terms of definitions of
services under clause (102) of the said section. Further, securities include ‘shares’ as per definition of
securities under clause (h) of section 2 of Securities Contracts (Regulation) Act, 1956.
5.4 This implies that the securities held by the holding company in the subsidiary company are
neither goods nor services. Further, purchase or sale of securities in itself is neither a supply of goods
nor a supply of services. However, as per Explanation to definition of services “under clause 102 of
section 2 of CGST Act”, facilitating or arranging transactions in securities may be treated as supply of
services. Similarly, activity of lending securities where it provides the right of ownership to third party
on payment of certain consideration can be treated as a supply of services. However, purchase and
holding of securities/share of the subsidiary company does not in itself constitute a supply of services.
Further, mere holding majority shares by holding company of a subsidiary company does not in itself
imply that a service is being provided by the holding company to the subsidiary company, solely on the
basis that there is a SAC entry ‘997171’ in the scheme of classification of services mentioning; “the
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services provided by holding companies, i.e. holding securities of (or other equity interests in)
companies and enterprises for the purpose of owning a controlling interest.”
5.5 For a transaction/activity to be treated as supply of services there must be a supply as defined
under section 7 of CGST Act. Further, if a view is taken that holding shares by a company in its
subsidiary company constitutes supply of services, as SAC entry 997171 mentions, then it will also
emerge as to whether holding shares of any company even without holding a majority shares will also
be considered as supply of services, as nature of transaction essentially remains the same. If such a view
is taken then, in effect, every purchase of securities will be deemed as supply of services as every such
purchase will lead to holding of securities of the said company by the purchaser. This may be in
contradiction with the definition of supply under section 7 of CGST Act read with section 2 of the said
Act in terms of definition of goods under clause (52) and definition of services under clause (102) of
the said section and therefore will not be tenable.
5.6 Therefore, it appears from the above provisions that the holding of shares in a company per se
cannot be treated as a supply of services by a holding company to its subsidiary company.
6. Law Committee deliberated on the issue in its meeting held on 28.06.2023 and recommended
that the issue may be clarified through a circular, specifying that mere holding of securities of a
subsidiary company by a holding company, whether located in India or abroad, cannot be treated as a
supply of services and therefore cannot be taxed under GST.
7. The draft circular in this regard as recommended by Law Committee is enclosed at AnnexureA to this agenda note.
8. Accordingly, the Agenda is placed before the GST Council for deliberation and approval.
******

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ANNEXURE-A
DRAFT
Circular No. XX/XX/2023-GST
F. No. CBIC-20001/2/2022 - GST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, Dated the XXXXXX, 2023
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification on various issues pertaining to GST-reg.
Representations have been received from the trade and field formations seeking clarification on certain
issues whether the holding of shares in a subsidiary company by the holding company will be treated
as ‘supply of service’ under GST and will be taxed accordingly or whether such transaction is not a
supply.
2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions
of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of
the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby
clarifies the issues as under:
S.
No.
Issue Clarification
Taxability of share capital held in subsidiary company by the parent company
1. Whether the activity of holding
shares by a holding company of
the subsidiary company will be
treated as a supply of service or
not and whether the same will
attract GST or not.
Securities are considered neither goods nor
services in terms of definition of goods under
clause (52) of section 2 of CGST Act and the
definition of services under clause (102) of the
said section. Further, securities include ‘shares’ as
per definition of securities under clause (h) of
section 2 of Securities Contracts (Regulation) Act,
1956.
This implies that the securities held by the holding
Agenda for 50th GSTCM Volume II
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company in the subsidiary company are neither
goods nor services. Further, purchase or sale of
shares or securities, in itself is neither a supply of
goods nor a supply of services. For a
transaction/activity to be treated as supply of
services, there must be a supply as defined under
section 7 of CGST Act. It cannot be said that a
service is being provided by the holding company
to the subsidiary company, solely on the basis that
there is a SAC entry ‘997171’ in the scheme of
classification of services mentioning; “the services
provided by holding companies, i.e. holding
securities of (or other equity interests in)
companies and enterprises for the purpose of
owning a controlling interest.”, unless there is a
supply of services by the holding company to the
subsidiary company in accordance with section 7
of CGST Act.
Therefore, the activity of holding of shares of
subsidiary company by the holding company per
se cannot be treated as a supply of services by a
holding company to the said subsidiary company
and cannot be taxed under GST.
2. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
3. Difficulty, if any, in implementation of this Circular may please be brought to the notice of
the Board. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)
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Agenda Item 3(xvii): Amendment in CGST Rules, 2017
Law Committee, in its various meetings, has deliberated upon several issues and has recommended
changes in some of the provisions of the Central Goods and Services Tax Rules, 2017 (hereinafter
referred to as “the CGST Rules”). In addition to the changes in the provisions of the CGST Rules,
some changes in the FORMS under CGST Rules have also been recommended by the Law Committee.
These changes are discussed below:
I. Omission of clause (c) of Explanation (1) to Rule 43
1.1 As per Sr. No 19B of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June
2017, as amended from time to time, services by way of transportation of goods by a vessel from
customs station of clearance in India to a place outside India was an exempt supply till 30.09.2022.
Relevant extract of the said entry in the notification for ease of reference is as under -
Sl.
No.
Chapter,
Section, Headi
ng,
Description of Services Rate Condition
19B Heading 9965 Services by way of transportation of
goods by a vessel from customs
station of clearance in India to a
place outside India.
Nil Nothing contained
in this serial
number shall apply
after the 30th day
of
September, 2022
1.2 However, this exemption has not been extended after 30.09.2022. As a result, the said service
has become taxable after 30.09.2022. Normally, in the case when outward supply is exempt, the
supplier needs to reverse the common ITC in accordance with rule 42 or rule 43 of CGST Rules. Since,
the above service is not an exempt supply w.e.f 01.10.2022, reversal of ITC in respect of supply of the
said services is not required w.e.f. 01.10.2022. Further, there are certain exclusion in the Explanation
to Rule 43 of CGST Rules like the abovementioned services whose value of supply was excluded from
the value of exempt supplies.
1.3 The Clause (c) of Explanation 1 to Rule 43 of CGST Rules is reproduced as under:
Explanation 1: -For the purposes of Rule 42 and this Rule, it is hereby clarified that the ggregate
value of exempt supplies shall exclude:-
(c) the value of supply of services by way of transportation of goods by a vessel from the customs
station of clearance in India to a place outside India.
1.4 Consequent to lapsing of the exemption given vide Entry No. 19B of Exemption Notification
No. 12/2017 Central Tax (Rate) dated 28th June 2017, there is a need to omit the said clause (c) of
Explanation to Rule 43 of CGST Rules, as supply of aforementioned services is not an exempt supply
with effect from 1st October 2022.
1.5 In view of the above, the Law Committee in its meeting held on 10.04.2023 and 11.04.2023
recommended that clause (c) of Explanation (1) at the end of Rule 43 of CGST Rules may be omitted.

Agenda for 50th GSTCM Volume II
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II. Amendment in proviso to rule 46(f)
2.1 As per the recommendations of GST Council in its 48th meeting, rule 46 of CGST Rules has
been amended vide Notification No. 26/2022 –Central Tax dated 26.12.2022 by adding a proviso to
clause (f) of the said rule to provide that where any taxable services is supplied by or through an
electronic commerce operator or by a supplier of online information and database access or retrieval
services to a recipient who is un-registered, irrespective of the value of such supply, a tax invoice issued
by the registered person shall contain the name and address of the recipient along with its PIN code and
the name of the State of the recipient and the said State address shall be deemed to be the address on
record of the recipient.
2.2. However, subsequent to the said amendment, concerns were received from some tax
administrations that there may be cases where the supplier may have the information about the State
name of the recipient, but may not have the full address and the PIN code of the recipient. In such cases,
there may be a possibility that the supplier may declare the place of supply as his own location, due to
non-availability of the full address details of recipient. This may lead to loss of revenue for the
consumption states. Besides, representations have also been received from some sections of the industry
mentioning that in certain services sector, exact address of the recipient may not be feasible for the
supplier to be collected due to peculiar nature of the supply, and only name of the State of the recipient
may be collected and recorded. Accordingly, request has been made to not insist of full address details
of the recipient and only the name of State of the recipient may be sufficient to be provided in the tax
invoice.
2.3 The matter was deliberated by the Law Committee in its meeting held on 10.04.2023 &
11.04.2023. Law Committee recommended that proviso to rule 46(f) of CGST Rules may be amended
to provide that the tax invoice shall contain the name of the State of the recipient and the name and
address of the recipient along with its PIN code may not be mandatory to be declared on the tax invoice.
Further, the State of the recipient shall be deemed to be the address on record of the recipient.
Accordingly, the Law Committee recommended the following amendment in proviso to rule 46(f) pf
CGST Rules, as shown, in red color:
Rule 46(f)
46. Tax invoice.-
…..
(f)….
Provided that where any taxable service is supplied by or through an electronic commerce operator
or by a supplier of online information and database access or retrieval services to a recipient who
is un-registered, irrespective of the value of such supply, a tax invoice issued by the registered
person shall contain the name and address of the recipient along with its PIN code and the name
of the State of the recipient and the same said State address shall be deemed to be the address on
record of the recipient.
(g)….

Agenda for 50th GSTCM Volume II
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III. Amendment in rule 64 and FORM GSTR-5A
3.1 FORM GSTR-5A presently covers details of supplies of online information and
database access or retrieval (OIDAR) services by a person located outside India made to nontaxable persons in India. The said form does not cover the details of supplies of online
information and database access or retrieval services by a person located outside India made to
a registered person in India. A registered person other than non-taxable online recipient located
in India receiving online information and database access or retrieval services from a person
located outside India is required to pay tax on such receipt of services on reverse charge basis
as per Notification No. 10/2017-Integrated Tax (Rate) dated 28.06.2017. It is suggested that if
the details of supplies made by the said OIDAR service provider to registered persons in India
other than non-taxable online recipient can also be captured in FORM GSTR-5A, it can help
in ensuring tax compliance by the said registered persons paying tax on reverse charge basis.
Accordingly, it is proposed that format of FORM GSTR-5A be modified so as to also include
details of supplies made by the OIDAR service provider located outside India to registered
persons other than non-taxable online recipient in India.
3.2 Rule 64 of CGST Rules provides that every registered person providing online
information and data base access or retrieval services from a place outside India to a person in
India other than a registered person shall file return in FORM GSTR-5A on or before the
twentieth day of the month succeeding the calendar month or part thereof. Since the proposed
FORM GSTR-5A will also include details of supplies made by OIDAR services provider to
registered persons in India, amendment is required in the said rule so as to prescribe that every
registered person providing online information and data base access or retrieval services from
a place outside India to non-taxable online recipient or to a registered person(other than a nontaxable online recipient) in India shall file return in FORM GSTR-5A.
3.3 Accordingly, Law Committee in its meeting held on 10.04.2023 & 11.04.2023 and
28.06.2023 has recommended amendment in rule 64 and in FORM GSTR-5A so as to also
include details of supplies made by the OIDAR service provider located outside India to
registered persons other than non-taxable online recipient in India. The proposed amendment
in rule 64 and FORM GSTR-5A is shown, in red color, as below:
Rule 64
Rule 64. Form and manner of submission of return by persons providing online information
and data base access or retrieval services.-
Every registered person providing online information and data base access or retrieval services
from a place outside India to a non-taxable online recipient referred to in section 14 of the
Integrated Goods and Services Tax Act, 2017 (13 of 2017), person in India other than or to a
registered person other than a non-taxable online recipient, shall file return in FORM GSTR-5A
on or before the twentieth day of the month succeeding the calendar month or part thereof.
Agenda for 50th GSTCM Volume II
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FORM GSTR-5A
[See rule 64]
Details of supplies of online information and database access or retrieval services by a person
located outside India made to non-taxable persons online recipient (as defined in Integrated
Goods and Services Tax Act, 2017) and to registered persons in India
1. GSTIN of the supplier2. (a) Legal name of the registered person -
(b) Trade name, if any -
3. Name of the Authorised representative in India filing the return –
4. Period: Month - ______ Year –
4(a) ARN:
4(b) Date of ARN:
5. Taxable outward supplies made to consumers non-taxable online recipient in India
(Amount in Rupees)
Place of supply (State/UT) Rate of
tax
Taxable
value
Integrated
tax
Cess
1 2 3 4 5
5A. Amendments to taxable outward supplies to non-taxable persons online recipient in India
(Amount in Rupees)
Month Place of
supply
(State/UT)
Rate of
tax
Taxable
value
Integrated
tax
Cess
1 2 3 4 5 6
5B. Taxable outward supplies made to registered persons in India, other than non-taxable online
recipient, on which tax is to be paid by the said registered persons on reverse charge basis
(Amount in Rupees)
GSTIN Taxable Value
1 2
Agenda for 50th GSTCM Volume II
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5C. Amendments to the taxable outward supplies made to registered persons in India, other than
non-taxable online recipient, on which tax is to be paid by the said registered persons on reverse
charge basis
(Amount in Rupees)
6. Calculation of interest, or any other amount
(Amount in Rupees)
Sr.
No
Description Place of
supply
(State/UT)
Amount due (Interest/ Other)
Integrated tax Cess
1 2 3 4 5
1. Interest
2. Others
Total
7. Tax, interest, and any other amount payable and paid
(Amount in Rupees)
Sr.
No.
Description Amount payable Debit
entry
no.
Amount paid
Integrated
Tax
Cess Integrated
Tax
Cess
1 2 3 4 5 6 7
1. Tax Liability
(based on Table
5 & 5A)
2. Interest (based on
Table 6)
3. Others (based on
Table 6)
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 therefrom.
Signature
Place Name of Authorised Signatory
Date
Designation /Status
Month Original
GSTIN
Revised
GSTIN
Taxable
value
1 2 3 4
Agenda for 50th GSTCM Volume II
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IV. Amendment in Rule 89(1):
4.1 Sub-rule (1) of rule 89 of the CGST Rules prescribes the manner of filing of Refund
application for claiming refund of any balance in the electronic cash ledger in accordance with
the provisions of sub-section (6) of section 49 or any tax, interest, penalty, fees or any other
amount paid by a person, other than refund of integrated tax paid on goods exported out of
India.
4.2 3rd proviso to sub-rule (1) of rule 89 provides that refund of any amount, after adjusting
the tax payable by the applicant out of the advance tax deposited by him under section 27 of
CGST Act, 2017 at the time of registration, shall be claimed in the last return required to be
furnished by him. However, the Form GSTR- 3B for return does not provide any option for
claiming refund.
4.3 In this regard, reference is drawn to section 24 of CGST Act, 2017 which specifies that
casual taxable persons and Non-resident taxable persons who are making taxable supply are
required to take compulsory registration. Sub-section (2) of section 27 of the Act ibid specifies
that a casual taxable person or a non-resident taxable person shall, at the time of submission of
application for registration under sub-section (1) of section 25 of CGST Act, 2017, make an
advance deposit of tax in an amount equivalent to the estimated tax liability of such person for
the period for which the registration is sought. Sub-section (3) of section 27 of CGST Act, 2017
states that the advance tax amount deposited shall be credited to the electronic cash ledger of
such person and shall be utilized in the manner provided under section 49 of CGST Act, 2017.
Further, Sub-section (6) of Section 49 of the CGST Act, 2017 specifies that the balance in the
electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or
any other amount payable under this Act or the Rules made thereunder may be refunded in
accordance with the provisions of section 54 of CGST Act, 2017.
4.4 In view of the provisions mentioned above, it is felt that the balance remaining out of
advance tax amount deposited by the casual taxable person is in the nature of excess balance in
electronic cash ledger only, which can be claimed as refund of balance in the electronic cash
ledger after filing of the last return.
4.5 The Law Committee, in its meeting dated 10.04.2023 & 11.04.2023 deliberated on this
issue and recommended that 3rd proviso to sub-rule (1) of rule 89 may be amended (shown in
red color), as below:
Rule 89. Application for refund of tax, interest, penalty, fees or any other amount.-
(1) Any person, except the persons covered under notification issued under section 55 claiming refund
of ……..
[****]
Provided that in respect of supplies to a Special Economic Zone unit or …..
Provided further that in respect of supplies regarded as deemed exports, …..
Provided also that refund of any amount, after adjusting the tax payable by the applicant out of the
advance tax deposited by him under section 27 at the time of registration, shall be claimed in the last
return required to be furnished by himonly after the last return required to be furnished by him has been
so furnished.
Agenda for 50th GSTCM Volume II
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V. Amendment in Rule 89(2)(k):
5.1 In terms of clause (e) of sub-section (8) of section 54 of the CGST Act, 2017, a
registered taxpayer can file an application for refund of excess payment of tax and interest, if
any, or any other amount paid by him if he has not passed on the incidence of such tax and
interest to any other person.
5.2 In terms of clause (k) of sub-rule (2) of Rule 89 of CGST Rules, Statement 7
as appended to FORM GST RFD-01 is required to be submitted along with the
application for refund which is made under the category ‘Excess Payment of Tax’.
5.3 The format of Statement -7 is as follows:-
Statement -7 [rule89 (2)(k)]
Refund Type: Excess payment of tax, if any in case of last return filed.
(Amount in
Rs.)
Tax
Perio
d
ARN
of
Retur
n
Date
of
Filin
g
Retur
n
Tax Payable
Integrat
ed Tax
Centr
al
Tax
Stat
e
Tax
Ce
ss
1 2 3 4 5 6 7
5.4 It appears that Statement -7 is designed for excess payment of tax made in a particular
return. It has been reported by some tax administrations that this restricts a taxpayer from filing the
claim of refund under the category ‘Excess Payment of Tax’ for any amount of excess payment of tax
which is not relatable to a particular return period or that of excess payment of interest, penalty or late
fee. However, it is possible that excess payment may happen under various circumstances some of
which are illustrated below:
a) Excess payment can be detected at the time of reconciliation of accounts and it might
be relatable to multiple return periods without clearly being attributable to any particular return.
b) Excess payment may be made through FORM GST DRC-03, FORM GST DRC-07 and
FORM GST CMP-08.
5.5 In such cases, it is being reported that a taxpayer cannot claim refund under the category
“Excess Payment of Tax” as the related particulars cannot be furnished in Statement-7 of FORM GST
RFD-01 and they end up claiming the same under the category “Any Other”.
Agenda for 50th GSTCM Volume II
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5.6 However, circumstances under which refunds can be claimed under the category
“Any Other” is clarified in the circulars issued in this regard and the same are specific in nature which
do not cover this condition.
5.7 Furthermore, though sub-section (8) of section 54 provides for refund of excess
payment of tax and interest, if any, or any other amount paid, statement as required in terms of clause
(k) of sub-rule (2) of Rule 89 restricts the same to tax only necessitating alignment of the same with
the aforesaid sub-section.
5.8 In view of the above, Law Committee, in its meeting held on 14.06.2023 &15.06.2023
deliberated on this issue and recommended that clause (k) of sub-rule (2) of Rule 89 may be amended
(shown in red colour), as below. Further, Statement 7 in FORM GST RFD 01 may also be amended
to incorporate the said rule change.
Rule 89(2): The application under sub-rule (1) shall be accompanied by any of the
following documentary evidences in Annexure 1 in FORM GST RFD-01, as applicable,
to establish that a refund is due to the applicant, namely:-
(a) …;
(b) …;
…
“(k) a statement showing the details of the amount of claim on account of excess
payment of tax and interest, if any, or any other amount paid;”
Statement -7 [rule89 (2)(k)]
Refund Type: Excess payment of tax, if any in case of last return filed.
(Amount in Rs.)
Tax Period ARN of Return Date of Filing
Return
Tax Payable
Integrated Tax Central Tax State Tax Cess
1 2 3 4 5 6 7
Sl.
No.
Document/Invoice Details Details of amount paid Details of refund claimed
Type of
document
ARN
No.
Date Integrated
Tax
Central
Tax
State/
UT
Tax
Cess Interest Any
other
(please
specify)
Integrated
Tax
Central
Tax
State/
UT
Tax
Cess Interest Any
other
(please
specify)
1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Agenda for 50th GSTCM Volume II
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VI. Amendment in Rule 96(2):
6.1 Rule 96 of the CGST Rules, 2017 prescribes the manner of processing of Refund of integrated
tax paid on goods [or services] exported out of India. Sub-rule (2) of rule 96 prescribes the process of
transmission of export data from common portal to system designated by the Customs for further
processing of the said refund application.
6.2 1st Proviso to Rule 96(2) provides that where the date for furnishing the details of outward
supplies in FORM GSTR-1 for a tax period has been extended in exercise of the powers conferred
under section 37 of CGST Act, 2017, the supplier shall furnish the information relating to exports as
specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR-3B has been furnished and
the same shall be transmitted electronically by the common portal to the system designated by the
Customs. 2nd Proviso to Rule 96(2) of CGST Rules provides further that the information in Table 6A
furnished under the first proviso shall be auto-drafted in FORM GSTR-1 for the said tax period.
6.3 It may be observed that the option to file the export details of Table 6A of FORM GSTR 1
separately was made available initially during the period when filing of FORM GSTR-1 was delayed
on the portal and filing of FORM GSTR-1 was not mandatory before filing of return in FORM GSTR3B. However, now concept of sequential filling of Return has been introduced. Section 37 & section
39 of CGST Act, 2017 have been amended vide Notification No. 18/2022–Central Tax dated 28th
September, 2022 with effect from 01 October, 2022. According to section 37(4) of CGST Act, 2017,
a taxpayer shall not be allowed to file FORM GSTR-1 if previous FORM GSTR-1 is not filed and as
per section 39(10) of the said Act, a taxpayer shall not be allowed to file return in FORM GSTR-3B
if FORM GSTR-1 for the same tax period has not been filed.
6.4 Hence, Law Committee observed that 1st and 2nd proviso to sub-rule (2) of rule 96 do not
serve any purpose now after the said amendments in CGST Act and hence have become redundant.
Accordingly, the Law Committee in its meeting dated 10.04.2023 and 11.04.2023 recommended
omission (shown in red colour) of Proviso 1 and Proviso 2 to rule 96(2) of CGST Rules, as below:
Rule 96 (2): The details of the relevant export invoices in respect of export of goods contained in FORM
GSTR-1 shall be transmitted electronically by the common portal to the system designated by the Customs
and the said system shall electronically transmit to the common portal, a confirmation that the goods
covered by the said invoices have been exported out of India.
Provided that where the date for furnishing the details of outward supplies in FORM GSTR-1 for a tax
period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier
shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the return
in FORM GSTR-3B has been furnished and the same shall be transmitted electronically by the common
portal to the system designated by the Customs:
Provided further that the information in Table 6A furnished under the first proviso shall be auto-drafted
in FORM GSTR-1 for the said tax period.
Agenda for 50th GSTCM Volume II
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VII. Amendment in rule 108 and rule 109
7.1 In terms of sub-section (1) of section 107 of the CGST Act, 2017, any person aggrieved by any
decision or order passed by an adjudicating authority may appeal to the concerned appellate authority
within three months from the date of communication of the said decision or order to such person. Similar
provision exists under sub-section (2) of section 107 of CGST Act to provide for filing appeal by an
officer authorised by the Commissioner to the appellate authority within six months from the date of
communication of the said decision or order.
7.2 In terms of sub-rule (1) of rule 108 of the CGST Rules, a doubt emerges whether an appeal
under section 107 can be filed either electronically or manually, at the liberty of the Appellant. The
aforesaid formulation has remained un-amended since the inception of GST in 2017. This was the time
when the functionalities relating to registration, returns, payments and refunds had been rolled out on
the common portal and the other processes/functionalities like Appeal, Advance Ruling, Scrutiny, etc.
were still being developed. Thus, it was felt that, for instance, where the filing of an Appeal becomes
necessary, an alternative mechanism as notified by the Commissioner may also be provided.
7.3 The issue was deliberated by the Law Committee in its meeting held on 10th/ 11th April, 2023,
31.05.2023 and 28.06.2023. The Law Committee noted that the rule provides mainly for filing of
appeals, electronically, on the portal. Only in the cases where the Commissioner so notifies, the appeal
can be filed in a mode other than electronically on the portal. However, as some of the Courts are taking
a view that as per the present wording of rule 108 of CGST Rules, manual filing of appeals may also be
considered as a default route of filing appeal under section 107 of CGST Act, there may be a requirement
of the amendment in rule 108 and rule 109 of CGST Rules to provide clearly under what circumstances
manual appeals may be filed under section 107 of CGST Act.
7.4 The Law Committee accordingly recommended amendment in rule 108 and rule 109 of CGST
Rules (amendment shown in red color) by inserting a proviso in both of the said rules for filing appeal
manually in certain specified circumstances.
Rule 108: Appeal to the Appellate Authority
(1) An appeal to the Appellate Authority under sub-section (1) of section 107 shall be filed in FORM GST APL01, along with the relevant documents, either electronically or otherwise as may be notified by the
Commissioner, and a provisional acknowledgement shall be issued to the appellant immediately:
Provided that an appeal to the Appellate Authority may be filed manually in FORM GST APL-01, along with the
relevant documents, where the Commissioner so notifies, or where the same cannot be filed electronically either
due to non-availability of the decision or order to be appealed against on the common portal or due to nonavailability of the facility on the common portal, and a provisional acknowledgement shall be issued to the
appellant immediately.
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VIII. GSTR-3A notice for non-filing of Annual Return in FORM GSTR-9 or FORM GSTR9A:
8.1 Section 46 of the CGST Act, 2017 read with Rule 68 of CGST Rules, 2017 requires issuance
of a notice in FORM GSTR-3A to a registered person who fails to furnish return under Section 39 or
Section 44 or Section 45 or Section 52 requiring him to furnish such return within fifteen days.
8.2 While FORM GSTR-3A has provision to issue notice to return defaulter as well as defaulters
of final return, there is no provision in it to issue notice to defaulters of Annual returns.
8.3 In view of the same, the Law Committee in its meetings held on 15.03.2023, 10.04.2023 and
11.04.2023 recommended suitable amendment in FORM GSTR-3A (highlighted in red) for issuance
of notice to the registered taxpayer for their failure to furnish Annual Return in FORM GSTR-9 or
FORM GSTR-9A.
Rule 109. Application to the Appellate Authority.-
(1) An application to the Appellate Authority under sub-section (2) of section 107 shall be filed in FORM GST APL03, along with the relevant documents, either electronically or otherwise as may be notified by the Commissioner
and a provisional acknowledgment shall be issued to the appellant immediately.
Provided that an appeal to the Appellate Authority may be filed manually in FORM GST APL-03, along with the
relevant documents, where the Commissioner so notifies, or where the same cannot be filed electronically either
due to non-availability of the decision or order to be appealed against on the common portal or due to nonavailability of the facility on the common portal, and a provisional acknowledgement shall be issued to the
appellant immediately.
Agenda for 50th GSTCM Volume II
Page 43 of 74
FORM GSTR – 3A
[See rule 68]
Reference No: Date:
To
_______ GSTIN
----------------------- Name
_______________ Address
Notice to return defaulter u/s 46 for not filing return
Tax Period - Type of Return –
Being a registered taxpayer, you are required to furnish return for the supplies made or received and to
discharge resultant tax liability for the aforesaid tax period by due date. It has been noticed that you have not filed the
said return till date.
2. You are, therefore, requested to furnish the said return within 15 days failing which the [tax liability may be assessed
u/s 62 of the Act, based on the relevant material available with this office. Please note that in addition to tax so assessed,
you will also be liable to pay interest and penalty as per provisions of the Act.
3. Please note that no further communication will be issued for assessing the liability.
4. The notice shall be deemed to have been withdrawn in case the return referred above, is filed by you before issue of
the assessment order.
5. This is a system generated notice and does not require signature.
Or
Notice to return defaulter u/s 46 for not filing final return upon cancellation of registration
Cancellation order No. – Date ---
Application Reference Number, if any - Date –
Consequent upon applying for surrender of registration or cancellation of your registration for the reasons
specified in the order, you were required to submit a final return in form GSTR-10as required under section 45 of the
Act.
2. It has been noticed that you have not filed the final return by the due date.
3. You are, therefore, requested to furnish the final return as specified under section 45 of the Act within 15 days failing
which your tax liability for the aforesaid [tax period may be determined in accordance with the provisions of the Act
based on the relevant material available with or gathered by this office. Please note that in addition to tax so assessed,
you will also be liable to pay interest as per provisions of the Act.
4. This notice shall be deemed to be withdrawn in case the return is filed by you before issue of the assessment order.
5. This is a system generated notice and does not require signature.
Signature
Name
Designation Or
Notice to return defaulter u/s 46 for not filing annual return
Financial yearType of Return –GSTR-9/GSTR-9A
Being a registered taxpayer, you are required to furnish annual return for the supplies made or received and/or
to include self-certified reconciliation statement for the aforesaid financial year by due date. The due date specified for
filing annual return for the said financial year is over and it has been noticed that you have not filed the said return till
date.
2. You are, therefore, requested to furnish the said return within 15 days failing which appropriate action including
imposition of penalty as per law will be taken.
3. This notice shall be deemed to have been withdrawn in case the return referred above, is filed by you before issue of
the show cause notice of penalty proceeding.
4. This is a system generated notice and does not require signature.
Agenda for 50th GSTCM Volume II
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9. Accordingly, the agenda note is placed before the GST Council for deliberation and approval.
Pari-Materia changes would also be required in the respective SGST Rules.
**********
Agenda for 50th GSTCM Volume II
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Agenda Item 3(xviii): Proposal to provide a special procedure to file appeal against the orders
passed in accordance with the Circular No. 182/14/2022-GST, dated 10.11.2022, pursuant to the
directions issued by the Hon’ble Supreme Court in the Union of India v/s Filco Trade Centre Pvt.
Ltd – regarding.
The Hon’ble Supreme Court in the Union of India v/s Filco Trade Centre Pvt. Ltd., SLP(C) No.32709-
32710/2018 had directed that the common portal be opened for filing prescribed forms for availing
Transitional Credit through TRAN-1 and TRAN-2 for two months from 01.10.2022 to 30.11.2022 for
the aggrieved registered persons. In this regard, reference is also invited to Circular No. 180/12/2022
dated 09.09.2022 vide which guidelines have been issued for the applicants for filing new TRAN1/TRAN-2 or revising the already filed TRAN-1/TRAN-2 on the common portal, and to Circular No.
182/14/2022-GST dated the 10th of November, 2022 prescribing guidelines to the officers for verifying
the Transitional Credit and pass orders accordingly.
2. In light of this, it has been brought to the notice that though several taxpayers, or the
Department, intend to file appeal against the orders issued by the proper officers in respect of such
claims of transitional credit filed by the registered persons in accordance with the above mentioned
directions issued by Hon’ble Supreme Court, there is presently no functionality available on the portal
for enabling them to file such appeals. In some cases, time limit for filing appeals under provisions of
section 107 of CGST Act, 2017 has already expired or is going to expire shortly.
3. Law Committee in its meetings held on 03.05.2023, 14/15.06.2023 and 28.06.2023 deliberated
on the issue and recommended to provide a special procedure for filing of appeals manually against the
orders passed in accordance with Circular No. 182/14/2022-GST dated the 10th of November, 2022. A
draft notification providing the special procedure to be followed by a person desirous of filing an appeal
against an order passed by the proper officer in accordance with Circular No. 182/14/2022-GST, dated
10th of November, 2022 pursuant to the directions issued by the Hon’ble Supreme Court in the Union
of India v/s Filco Trade Centre Pvt. Ltd., SLP(C) No.32709-32710/2018, as recommended by the Law
Committee is enclosed with this agenda note as Annexure-A.
4. Accordingly, the recommendations of the Law Committee as detailed in para 3 is placed before
the GST Council for approval.
Agenda for 50th GSTCM Volume II
Page 46 of 74
ANNEXURE A
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NOTIFICATION
No. /2023 – CENTRALTAX
New Delhi, the ---- June, 2023
S.O.(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services
Tax Act,2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the
recommendations of the Council, hereby notifies the following special procedure to be followed by a
registered person (hereinafter referred to as “the said person”) desirous of filing an appeal against an
order (hereinafter referred to as “the said order”) passed by the proper officer in accordance with
Circular No. 182/14/2022-GST, dated 10th of November, 2022 pursuant to the directions issued by the
Hon’ble Supreme Court in the Union of India v/s Filco Trade Centre Pvt. Ltd., SLP(C) No.32709-
32710/2018.
Explanation. - For the purposes of this notification, the expression “said person” shall include the officer
referred to in sub-section (2) of Section 107.
2. The appeal against the said order shall be made in duplicate in the Form appended to this
notification at ANNEXURE-1 and shall be presented manually before the Appellate Authority within
the time specified in sub-section (1) of Section 107 or sub-section (2) of Section 107, as the case may
be, and such time shall be computed from the date of issuance of this notification or the date of the said
order, whichever is later:
Provided that any appeal against the said order filed in accordance with the provisions of Section 107
with the Appellate Authority before the issuance of this notification, shall be deemed to have been filed
in accordance with this notification.
3. The said person shall not be required to deposit any amount as referred to in sub-section (6) of
Section 107 as a pre-condition for filing an appeal against the said order.
4. An appeal filed under this notification shall be accompanied by relevant documents including
a self-certified copy of the said order. Further, the appeal and the relevant documents shall be signed by
the person specified in sub-rule (2) of rule 26 of CGST Rules.
5. Upon receipt of the appeal referred to in para 4, duly verified in the manner provided above and
accompanied by the relevant documents, an acknowledgement, indicating the appeal number, shall be
issued manually in FORM GST APL-02 by the Appellate Authority or an officer authorized by him in
this behalf and the appeal shall be treated as filed only when the aforesaid acknowledgement is issued.
6. The Appellate Authority shall, along with its order, issue a summary of the order in the Form
appended to this notification as ANNEXURE-2.
Name
Designation
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ANNEXURE-1
Appeal to Appellate Authority
(Filed against an order passed in accordance with Circular No. 182/14/2022-GST, dated 10th of
November, 2022 pursuant to the directions issued by the Hon’ble Supreme Court in the Union of
India v/s Filco Trade Centre Pvt. Ltd., SLP(C) No.32709-32710/2018)
1. GSTIN–
2. Legal name of the appellant –
3. Trade name, if any –
4. Address –
5. Order No. - Order dated –
6. Designation of the officer passing the order appealed against –
7. Date of communication of the order appealed against –
8. Name of the authorized representative –
9. Details of the case under dispute –
(i) Brief issue of the case under dispute –
(ii) Amount of transitional credit claimed before the issuance of circular no. 182/14/2022-GST, dated
10th of November, 2022 (Act-wise)–
(iii) Details of any order u/s 73/74 passed in respect of the claim referred to in sub-item (ii) above:
(a) Order No. - Order dated-
(b) Amount allowed as per said order (Act-wise)- Rs.
(c) Interest and penalty levied as per said order (Act-wise)- Rs.
(d) Whether any appeal preferred against said order- Yes/No
(e) If appeal filed then Appeal No.- Appeal Date-
(f) Status of said Appeal- Disposed/Pending
(g) If appeal disposed off then amount of credit allowed as per said Appeal (Actwise)- Rs.
(iv) Amount of transitional credit claimed after the issuance of circular no. 182/14/2022-GST, dated
10th of November, 2022 (Act-wise)–
(v) Amount of credit allowed in pursuance of claim referred to in sub-item (iii) above (Act-wise)- Rs.
(vi) Amount under dispute (Act-wise)- Rs.
10. Whether the appellant wishes to be heard in person – Yes / No
11. Statement of facts:
12. Grounds of appeal:
13. Prayer:
Verification
I, < _________________________ >, hereby solemnly affirm and declare that the information given
hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed
therefrom.
Place:
Date:
Signature
Name of the Applicant
Note:
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1. If the space provided for answering any item is found to be insufficient, separate sheets may be
used.
2. The letters “N.A.” may be recorded against any item that is not required for this Appeal.

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ANNEXURE-2
SUMMARY OF TRANSITIONAL CREDIT AVAILABLE AFTER ISSUE OF ORDER BY THE
APPELLATE AUTHORITY WITH REFERENCE TO AN ORDER PASSED IN
ACCORDANCE WITH CIRCULAR NO. 182/14/2022-GST, DATED 10th of NOVEMBER, 2022
A. GSTIN -
B. Name of the Appellant/ person-
Address of the appellant/person -
C. Order appeal against- Ref. (if any) DatedD. Appeal No. DatedE. Personal HearingF. Order in BriefG. Status of Order- Confirmed/Modified/Rejected
H. Amount of Credit/ Demand after AppealParticulars Central Tax State Tax
a) Amount of transitional credit found to be admissible
pursuant to order of the Proper Officer

b) Amount determined by Appellate Authority
Place:
Date:
Signature:
Name of the Appellate Authority:
Designation:
Jurisdiction:

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Agenda Item 3(xix): Issues pertaining to ISD mechanism and taxability of services provided
by one distinct person to another distinct person.
A taxpayer with multiple branch offices often procures the input services from a third party at
Headquarters or at one office, for and on behalf of the other offices. Such taxpayers can then
adopt various mechanisms to transfer the ITC pertaining to such input services to the said offices.
1.Input Service Distributor Mechanism:
1.1 An Input Service Distributor (ISD) is a taxpayer that receives invoices for input services
used by its one or more branches. It distributes the Input Tax Credit (ITC), to such branches based
on a specified mechanism by issuing ISD invoices. The branches can have different GSTINs but
must have the same PAN as that of ISD. Section 2(61) of CGST Act, 2017 defines ISD as under:
"2(61) “Input Service Distributor” means an office of the supplier of goods or services or both
which receives tax invoices issued under section 31 towards the receipt of input services and issues
a prescribed document for the purposes of distributing the credit of central tax, State tax,
integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or
services or both having the same Permanent Account Number as that of the said office;”
1.2 Further section 20 of CGST Act, 2017 provides for manner of distribution of credit by Input
Service Distributor to its branch offices. Section 20 is reproduced below:
“20. Manner of distribution of credit by Input Service Distributor.— (1) The Input Service
Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated
tax as integrated tax or central tax, by way of issue of a document containing the amount of input
tax credit being distributed in such manner as may be prescribed.
(2) The Input Service Distributor may distribute the credit subject to the following conditions,
namely:––
(a) the credit can be distributed to the recipients of credit against a document containing such
details as may be prescribed;
(b) the amount of the credit distributed shall not exceed the amount of credit available for
distribution;
(c) the credit of tax paid on input services attributable to a recipient of credit shall be distributed
only to that recipient;
(d) the credit of tax paid on input services attributable to more than one recipient of credit shall
be distributed amongst such recipients to whom the input service is attributable and such
distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union
territory of such recipient, during the relevant period, to the aggregate of the turnover of all such
recipients to whom such input service is attributable and which are operational in the current
year, during the said relevant period;
(e) the credit of tax paid on input services attributable to all recipients of credit shall be
distributed amongst such recipients and such distribution shall be pro rata on the basis of the
turnover in a State or turnover in a Union territory of such recipient, during the relevant period,
to the aggregate of the turnover of all recipients and which are operational in the current year,
during the said relevant period.
Explanation.––For the purposes of this section,––
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(a)the “relevant period” shall be––
(i) if the recipients of credit have turnover in their States or Union territories in the financial year
preceding the year during which credit is to be distributed, the said financial year; or
(ii) if some or all recipients of the credit do not have any turnover in their States or Union territories
in the financial year preceding the year during which the credit is to be distributed, the last quarter for
which details of such turnover of all the recipients are available, previous to the month during which
credit is to be distributed;
(b)the expression “recipient of credit” means the supplier of goods or services or both
having the same Permanent Account Number as that of the Input Service Distributor;
(c) the term ‘‘turnover’’, in relation to any registered person engaged in the supply of taxable
goods as well as goods not taxable under this Act, means the value of turnover, reduced by
the amount of any duty or tax levied under entries 84 and 92Aof List I of the Seventh
Schedule to the Constitution and entries 51 and 54 of List II of the said Schedule.”
2.Mechanism whereby head office raises invoice under section 31 to the branch office
without registering as ISD
2.1Another mechanism that may be followed by a Head Office (HO) of a business entity in cases of
input services procured by Head Office (HO) from a third party for or on behalf of one or more branch
offices is that the HO can avail ITC on input services procured from a third party for or on behalf of
one or more branch offices and then raises an invoice under section 31 of CGST Act to the Branch
Office (BO), to which such input services are attributable, and the said BO can then claim ITC in respect
of such input services. This mechanism does not require the HO to take registration under the ISD
provision of the CGST Act, 2017.
2.2 It is pertinent to note that Explanation to section 16(2)(b) of CGST Act which was brought into
effect from 01.02.2019 vide The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of
2018) provides that in case of services, the registered person shall be deemed to have received the
services where the services are delivered by the supplier to any person on the direction and on account
of the said registered person. The said Explanation is reproduced below:
“16. Eligibility and conditions for taking input tax credit.—
……..
(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,––
…….
(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 on the direction of and on
account of such registered person;”
2.3 As per the Notes on Clauses of the Central Goods and Services Tax (Amendment) Act, 2018,
the intention of the said amendment was to provide for input tax credit in cases of "Bill-to-ship-to"
model in the case of supply of services. In such cases, two different tax invoices are issued, i.e., by the
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seller to a registered person and by the said registered person to the ultimate recipient of service. The
bill-to parties of both invoices will receive input tax credits. The overall impact of this transaction is
that the ultimate recipient of service will receive the input tax credit for this supply.
2.4 Thus, as per the Explanation to section 16(2)(b) of CGST Act, in cases of input services
procured by Head Office (HO) from a third party attributable to a Branch Office (BO), the HO can raise
an invoice to BO to which such input services are attributable and the said BO can then claim ITC in
respect of such input services.
3. Thus, various practices are being followed by the industry with respect to distribution of input tax
credit by HO to branch offices in case of common input services received from third party which are
attributable to one or more the BOs. Doubts have been raised by tax authorities as to whether is it
mandatory for the HO to follow the Input Service Distributor(ISD) mechanism for distribution of ITC
in respect of input services, procured by HO from a third party which are also attributable to one or
more BOs or can the HO also follow the mechanism of raising invoice under section 31 to the branch
office without registering as ISD and the said BO thereafter claiming ITC in respect of such input
services. Some field formations are taking a view that ISD mechanism was mandatory for distribution
of input tax credit in respect of input services received by HO attributable to HOs as well as BOs or by
one or more BOs and HO was not allowed to pass on input tax credit in respect of third party input
services through issuance of tax invoices under section 31 of CGST Act. Some advance rulings
authorities have also taken similar view.
4. Taxability and valuation w.r.t. to internally generated activities/services between distinct
persons
4.1 The offices or establishments of an organisation, who have obtained registration in one State or in
different States, are establishments of distinct persons under sub-section (4) of section 25 of the CGST
Act and Explanation 1 of section 8 of the Integrated Goods and Services Tax Act, 2017. GST law
envisages these distinct registered persons to be independent entities, though part of one legal entity,
and they can be providing services to each other. As per Schedule I to CGST Act, supply of goods or
services or both between related persons or between distinct persons as specified in section 25, when
made in the course or furtherance of business, shall be treated as supply under CGST Act even if made
without consideration. Thus, if HO is providing any services to its BOs or one BO is providing any
services to other BOs, the same will be deemed as supply of services as per Schedule I of CGST Act,
if the said services are provided in the course or furtherance of business, even if no consideration is
charged for the said services.
4.2 In case HO is providing certain services, which are internally generated by HO, to BOs, the
value of such supply of services made by a registered person to a related or distinct person cannot be
determined in terms of provisions of sub-section (1) of section 15 of CGST Act and instead, needs to
be determined as per rule 28 of CGST Rules, read with sub-section (4) of section 15 of CGST Act. As
per clause (a) of rule 28, the value of supply of goods or services or both between distinct persons
shall be the open market value of such supply. However, if the open market value is not available, the
value of supply of goods or services or both between distinct persons shall be the value of supply of
goods or services of like kind and quality as per clause (b) of rule 28. The second proviso to rule 28
of CGST Rules provides that where the recipient is eligible for full input tax credit, the value
declared in the invoice shall be deemed to be the open market value of the goods or services. The
said rule is reproduced below:
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“28. Value of supply of goods or services or both between distinct or related persons, other than
through an agent.-The value of the supply of goods or services or both between distinct persons as
specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other
than where the supply is made through an agent, shall-
(a) be the open market value of such supply;
(b) if the open market value is not available, be the value of supply of goods or services of like kind and
quality;
(c) if the value is not determinable under clause (a) or (b), be the value as determined by the application
of rule 30 or rule 31, in that order:
Provided that where the goods are intended for further supply as such by the recipient, the value shall,
at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the
supply of goods of like kind and quality by the recipient to his customer not being a related person:
Provided further that where the recipient is eligible for full input tax credit, the value declared in the
invoice shall be deemed to be the open market value of the goods or services.”
5. Disputes are being raised regarding as to whether a particular activity being performed by HO for
branch offices or by one BO for another BO can be treated as supply of services. Disputes are also
arising regarding the valuation of such internally generated supply of services from one distinct person
to another distinct person, including as to which cost component is required to be included while
computing taxable value of such internally generated services, both in the cases where full input tax
credit is available to the recipient, and also in cases where full input tax credit is not available to the
recipient.
6. A draft Circular on the issue was deliberated in the 35th GST Council Meeting held on 21st June 2019
wherein the Council recommended for the Law Committee to re-examine the issue. Accordingly, the
Law Committee deliberated on the issue its various meetings and took the following view:
7.1 For common input services procured from third party:
7.1.1 For past periods
7.1.1.1 ISD mechanism is applicable for distribution of input tax credit on input services where
the headquarter or one office of a business entity is receiving invoices from the third parties in
respect of the services which are attributable to one or more offices of the said entity. As discussed
above, many taxpayers may have used methods other than ISD for passing on of input tax credit
in respect of such supply of input services received from third parties, which is attributable to one
or more of their other offices, i.e. distinct persons, as there was ambiguity and lack of clarity
about the whether such distribution of credit is mandatorily required to be done through ISD
mechanism or can be done by issuance of tax invoice by headquarters to other branches/ offices/
distinct persons. Rather, the two sectoral FAQs issued – one on IT & ITES and another on banking
sector – clarify that ISD mechanism is not mandatory and taxpayer has option to issue invoice for
passing on the credit. The relevant question in the FAQ on IT&ITES is reproduced below:
“Question 26: Is the requirement of transferring of credit through ISD mechanism mandatory?
Answer: The ISD provision under the CGST Act, 2017 is not mandatory. It only provides the
manner of distribution of ITC wherever the business entity wishes to distribute the ITC as an
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Input Service Distributor.”
The relevant question in the FAQ on banking sector is as below:
“17. Would Input Tax Credit (ITC) be available to a GST registrant though the services procured
from third party vendor are also directly used by various ‘distinct persons’? In such cases, is
distribution of ITC required to be done mandatorily through Input Service Distributor
mechanism?
Answer: Yes. Input Tax Credit (ITC) can be availed by a GST registrant in respect of the services
procured in a consolidated manner from third party vendor which are directly used in the course
or furtherance of business in more than one State, e.g. statutory audit fees, advertisement and
marketing expenses, consultancy fees etc. The same needs to be appropriately invoiced or
distributed through the ISD mechanism to the “distinct persons” who have actually used such
services.”
7.1.1.2 Further, the present formulation of section 20 of CGST Act read with section 24 of CGST Act
does not provide any indication that ISD mechanism is mandatory for passing on/ distribution of ITC
in respect of input services procured by HO from a third party but attributable to both HO and BO or
exclusively to one or more BOs.
7.1.1.3 Law Committee took a view that there is no intent in the present provision of CGST Act to
make ISD mechanism mandatory, and accordingly, it may be clarified through a circular that it is not
mandatory to follow ISD procedure laid down in Section 20 of CGST Act read with rule 39 of the
Central Goods and Services Tax Rules, 2017 for distribution of ITC in respect of input services procured
by HO from a third party but attributable to both HO and BO or exclusively to one or more BOs and
that such credit can also be passed on by HO by issuing tax invoices under section 31 of CGST Act to
the concerned BOs. In cases, where HO wants to distribute credit through ISD mechanism, it shall be
required to get itself registered mandatorily as per provisions of section 24(viii) of CGST Act. Further,
it may also be clarified that HO can distribute the ITC to a BO through ISD mechanism or can issue
invoice under section 31 to a BO in respect of an input services received from a third party only if the
said services are being supplied to the concerned BO.
7.1.2 For prospective periods
7.1.2.1 Law Committee took a view that ISD procedure, as laid down in Section 20 of CGST Act read
with rule 39 of the CGST Rules, may be made mandatory prospectively for distribution of ITC in
respect of input services procured by Head Office (HO) from a third party but attributable to both HO
and Branch Office (BO) or exclusively to one or more BOs. Further, ITC on account of input services
received from a third party, where such input services are liable to tax on reverse charge basis, should
also be required to be distributed through ISD route. This will require amendment in law which the Law
Committee may formulate in due course.
7.1.2.2 Further, Law Committee also took a view that the manner of distribution of ISD credit as
provided in section 20 does not require amendment at present. However, alternate objective criteria may
be explored in future, if deemed appropriate, after consultation with trade.
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7.2 For internally generated services:
7.2.1 Business entities also often carry out certain common functions from HO, which may be in
nature of supervisory/ stewardship/ managerial oversight/ financial functions, which the business entity
deems as the core functions of the HO and not directly attributable to any BO. Accordingly, they may
not be considering the said activities as supply of services to BOs and accordingly may not be issuing
tax invoices in respect of such activities. Further, in cases where they are issuing invoices in respect of
some internally generated services to BOs, they may not bet including the cost component of some
elements such as salary of employees involved in providing said activities/functions while raising
invoices to BOs. In a large number of cases, the field formations, during audit or investigations, are
taking a view that HOs are providing supply of such services to BOs in respect of such functions/
activities and that HO should have raised tax invoices as per section 31 of CGST Act, and/ or should
have included the cost of salary paid to such employees of HO in respect of said supply of services.
7.2.2 As per second proviso to rule 28 of CGST Rules, where the recipient is eligible for full input
tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods
or services. Accordingly, in case where full input tax credit is available to BOs, the value declared
on the invoice by HO to BO in respect of a supply of services shall be deemed to be the open market
value of such services. The intent of the Council for insertion of the said proviso in rule 28 appeared to
be to ease the burden of compliance on the business entities on such deemed supplies between various
offices of a business entity, having same PAN but which are required to obtain different registrations
in different states due to requirement of GST law. Raising any demand on a business entity on the basis
that the HO or a BO of the said business entity has not raised a tax invoice in respect of any particular
services to other BOs or has not included cost of any component of such services in the invoice, when
the full input tax credit is available to the recipient, may be against the intention of the GST Council
and against the provisions of the second proviso to rule 28 of CGST Rules.
7.2.3 In view of this, LC recommended to clarify through the Circular that in cases where full input
tax credit is available to the recipient, the value of such supply of services declared in the invoice by
HO to BOs may be deemed as open market value, irrespective of the fact whether cost of any particular
component of such services, like employee cost etc., has not been included in the value of the services
in the invoice, or not. It may be further clarified that in cases where full input tax credit is available
to the recipient if the invoice is not issued with respect to any internally generated services by the HO
to the BO, the value of such services may be deemed to be declared as Nil by HO to BO, and may be
deemed as open market value in terms of second proviso to rule 28 of CGST Rules.
7.2.4 As regards the cases, where full input tax credit is not available to the recipient, Law
Committee took a view that the issue of taxability and valuation of such supply of internally generated
services may be deliberated further.
8. Accordingly, Law Committee recommended issuance of a circular to clarify the issues as
discussed in the above paras. The draft circular as recommended by the Law Committee is placed as
Annexure A to this agenda note.
9. In-principle approval is also sought from the Council for the proposals mentioned at para 7.1.2
above.
10. Accordingly, the agenda along with draft Circular (Annexure-A) is placed before the Council
for approval.
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Annexure-A
Draft Circular
F.No.XX/XX/XXXX-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
North Block, New Delhi
Dated XX, 2022
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners
of Central Tax (All) /
The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: Clarification regarding taxability of services provided by an office of an organisation in
one State to the office of that organisation in another State, both being distinct persons– reg.
Various representations have been received seeking clarification on the taxability of activities performed
by an office of an organisation in one State to the office of that organisation in another State, which are
regarded as distinct persons under section 25 of Central Goods and Services Tax Act, 2017 (hereinafter
referred to as ‘the CGST Act’). The issues raised in the said representations have been examined and to
ensure uniformity in the implementation of the law across the field formations, the Board, in exercise of
its powers conferred under section 168(1) of the CGST Act hereby clarifies the issue in succeeding
paras.
2. Let us consider a business entity which has Head Office (HO) located in State-1 and a branch
offices (BOs) located in other States. The HO procures some input services e.g. security service for the
entire organisation from a security agency (third party). HO also provides some other services on their
own to branch offices (internally generated services).
3. The issues that may arise with regard to taxability of supply of services between distinct persons
in terms of sub-section (4) of section 25 of the CGST Act are being clarified in the Table below: -
S. No Issues Clarification
1. Whether HO can avail the input tax
credit (hereinafter referred to as
‘ITC’) in respect of common input
services procured from a third party
but attributable to both HO and BOs
It is clarified that in respect of common
input services procured by the HO from a
third party but attributable to both HO and
BOs or exclusively to one or more BOs, HO
has an option to distribute ITC in respect of
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or exclusively to one or more BOs,
issue tax invoices under section 31
to the said BOs for the said input
services and the BOs can then avail
the ITC for the same or whether is it
mandatory for the HO to follow the
Input Service Distributor
(hereinafter referred to as ‘ISD’)
mechanism for distribution of ITC
in respect of common input services
procured by them from a third party
but attributable to both HO and BOs
or exclusively to one or more BOs?
such common input services by following
ISD mechanism laid down in Section 20 of
CGST Act read with rule 39 of the Central
Goods and Services Tax Rules, 2017
(hereinafter referred to as ‘the CGST
Rules’). However, as per the present
provisions of the CGST Act and CGST
Rules, it is not mandatory for the HO to
distribute such input tax credit by ISD
mechanism. HO can also issue tax invoices
under section 31 of CGST Act to the
concerned BOs in respect of common input
services procured from a third party by HO
but attributable to the said BOs and the BOs
can then avail ITC on the same subject to
the provisions of section 16 and 17 of CGST
Act.
In case, the HO distributes or wishes to
distribute ITC to BOs in respect of such
common input services through the ISD
mechanism as per the provisions of section
20 of CGST Act read with rule 39 of the
CGST Rules, HO is required to get itself
registered mandatorily as an ISD in
accordance with Section 24(viii) of the
CGST Act.
Further, such distribution of the ITC in
respect a common input services procured
from a third party can be made by the HO to
a BO through ISD mechanism only if the
said input services are attributable to the
said BO or have actually been provided to
the said BO. Similarly, the HO can issue tax
invoices under section 31 of CGST Act to
the concerned BOs, in respect of any input
services, procured by HO from a third party
for on or behalf of a BO, only if the said
services have actually been provided to the
concerned BOs.
2. In respect of internally generated
services, there may be cases where
HO is providing certain services to
the BOs for which full input tax
credit is available to the
The value of supply of services made by a
registered person to a distinct person needs to be
determined as per rule 28 of CGST Rules, read
with sub-section (4) of section 15 of CGST Act. As
per clause (a) of rule 28, the value of supply of
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concerned BOs, however, HO may
not be issuing tax invoice to the
concerned BOs with respect to such
services, or the HO may not be
including the cost of a particular
component such as salary cost of
employees involved in providing
said services while issuing tax
invoice to BOs for the services
provided by HO to BOs. Whether
the HO is mandatorily required to
issue invoice to BOs under section
31 of CGST Act for such internally
generated services, and/ or whether
the cost of all components including
salary cost of HO employees
involved in providing the said
services has to be included in the
computation of value of services
provided by HO to BOs when full
input tax credit is available to the
concerned BOs.

goods or services or both between distinct persons
shall be the open market value of such supply. The
second proviso to rule 28 of CGST Rules
provides that where the recipient is eligible for full
input tax credit, the value declared in the invoice
shall be deemed to be the open market value of the
goods or services. Accordingly, in respect of
supply of services by HO to BOs, the value of the
said supply of services declared in the invoice by
HO shall be deemed to be open market value of
such services, if the recipient BO is eligible for
full input tax credit.
Accordingly, in cases where full input tax credit
is available to a BO, the value declared on the
invoice by HO to the said BO in respect of a supply
of services shall be deemed to be the open market
value of such services, irrespective of the fact
whether cost of any particular component of such
services, like employee cost etc., has been included
or not in the value of the services in the invoice.
Further, in such cases where full input tax credit
is available to the recipient, if HO has not issued
a tax invoice to the BO in respect of any particular
services being rendered by HO to the said BO, the
value of such services may be deemed to be
declared as Nil by HO to BO, and may be deemed
as open market value in terms of second proviso to
rule 28 of CGST Rules.
4. It is requested that suitable trade notices may be issued to publicize the contents of this circular.
5. Difficulty if any, in the implementation of this circular may be brought to the notice of the
Board. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)

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Agenda Item 11: Addendum to Annexure-A of the Agenda item 11
In the table of Annexure A of Agenda Item 11 (at P-30 of Volume-II), Sl. No. 16 and 17 may
be read as follows:
S.No. State Act Ordinance No. of Benches
proposed
Location of Benches
proposed
16 Maharashtra
7
Mumbai-2, Thane-1,
Pune-2, Nagpur-1 and
Aurangabad
(Chhatrapati
Sambhajinagar)-1
17 Manipur under process Common
Bench with
Guwahati,
Assam
Guwahati

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Agenda Item 13: Request for extension of due dates for filing GSTR-7, GSTR-1 & GSTR3B for the months of April, May and June 2023 and extension of Amnesty Schemes in the
State of Manipur
Request has been received from the CCT Manipur vide letter dated 03.07.2023 on the
captioned subject. It has been stated that due to volatile law and order situation in the State, mobile
data services and internet/ data service are under suspension in the State.
2. It may be noted that in view of the law and order situation in the State of Manipur, the
due dates of filing FORM GSTR-1, GSTR-7 and GSTR-3B for the months of April and May
2023 for the registered persons of State of Manipur were extended earlier as below, as per
recommendations of GST Implementation Committee (GIC):
(i) due dates of filing FORM GSTR-1, GSTR-7 and GSTR-3B for April, 2023 were
first extended until 31.05.2023 vide notifications dated 24.05.2023;
(ii) due dates of filing FORM GSTR-1, GSTR-7 and GSTR-3B for April and May,
2023 were thereafter extended until 30.06.2023 vide notifications dated 19.06.2023
3. It has now been requested by CCT, Manipur to extend the due dates of filing FORM
GSTR-1, GSTR-7 and GSTR-3B for the months of April, May and June, 2023 till 31.07.2023 to
provide relief to the registered persons in Manipur.
4. Moreover, the GST Council in its 49th meeting held on 18th February, 2023 had
recommended certain amnesty measures which were notified on 31.03.2023 as under:
(i) Amnesty to GSTR-4 non-filers was provided vide Notification No. 02/2023-CT;
(ii) time limit for application for revocation of cancellation of registration was
conditionally extended vide Notification No. 03/2023-CT;
(iii) Amnesty scheme for deemed withdrawal of assessment orders issued under Section
62 was provided vide Notification No. 06/2023-CT;
(iv) Amnesty to GSTR-9 non-filers was provided vide Notification No. 07/2023-CT;
(v) Amnesty to GSTR-10 non-filers was provided vide Notification No. 08/2023-CT;
5. It has now been requested by CCT, Manipur to extend the said Amnesty Schemes till
31.07.2023 in the State of Manipur as these amnesty schemes have cometo an end on 30.06.2023.
6. The feasibility and readiness for implementation of these changes on the portal was
sought from GSTN. GSTN, vide their mail dated 06.07.2023, has informed the following:
i) The due dates for filing of FORM GSTR-1, FORM GSTR-3B and FORM GSTR-7 for
the taxpersons registered in state of Manipur can be configured immediately on approval
by the Council.
ii) For implementation of extension of the due dates of Amnesty schemes as mentioned
in para 4 above, such extension of due dates of amnesty schemes on All India basis can
be easily configurated on the system. However, for extending the due dates of Amnesty
schemes only for State of Manipur, code level changes will be required to be done in the
individual forms, which will take time to implement and which may not be feasible to be
done by 31st July 2023.
Agenda for 50th GSTCM Volume II
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7. It is also mentioned that representations have been received from some trade associations
from other states also, who have sought for the extension of due dates of these Amnesty schemes
beyond 30th June 2023.
8. Therefore, the agenda is placed before the Council for deliberation.

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Agenda Item 14: Review of revenue position under Goods and Services Tax
1. The Figure below shows the trend and Table 1 shows the details of the collection in FY 2023-
24 vis-à-vis FY 2022-23.
Figure 1: Monthly gross GST collection (in ₹ lakh crore)
Table 1: Monthly gross GST collection (₹ crore)
GST
Collection
Jan’23 Feb’23 Mar’23 Apr’23 May’23 Jun’23
CGST 29,051 27,662 29,546 38,440 28,411 31,013
SGST 36,847 34,915 37,314 47,412 35,828 38,292
IGST 80,995 75,069 82,907 89,158 81,363 80,291
Domestic 42,561 39,380 40,404 54,186 39,591 41,256
Imports 38,434 35,689 42,503 34,972 41,772 39,035
Comp Cess 10,662 11,931 10,355 12,025 11,489 11,900
Domestic 9,863 11,139 9,395 11,124 10,431 10,872
Imports 798 792 960 901 1,057 1,028
Total 1,57,554 1,49,577 1,60,122 1,87,035 1,57,090 1,61,497
1.67
1.40 1.44
1.87
1.57 1.61
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Apr May Jun
Trends In GST Collection(Rs. In lakh Crore)
GST Collection in FY 2022-23 GST Collection in FY 2023-24
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Table 2 shows the IGST collected, refunded, and settled/apportioned during FY 2023-24 till June,
2023.
Table 2: IGST Collection/Settlement/Apportionment/Refund in FY23-24
(Figures in Rs. Crore)
1 Collections (+) 2,48,771.74
2 Recovery from IGST Ad-hoc apportionment (+) 0
3 Refunds (-) 41,418.78
4 Settlement (-)
i. CGST 1,17,457.14
ii. SGST 97,997.00
5 Ad-hoc Settlement (-) 0
i. CGST ad hoc 0
ii. SGST ad hoc 0
6 Net (1+2-3-4-5) (-8,101.18)
Source: PrCCA, CBIC
Compensation Fund
2. 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 June, 2023 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 2022-23 2023-24 (till
Jun’23)
Opening Balance 21,466 47,271 55,736 9,734^ 9,344 (27,961.59)
Compensation
Cess collected
(net)
62,612 95,081 95,551 85,191 1,04,609 1,25,863 34867.30
Compensation
released
41,146 69,275 1,20,498 1,36,988 97,500 1,49,168 21975.88
Balance 21,466 47,271 55,736* 3939 16,844$
(13,962)# (15,070.17)
* 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 on 01.06.2020.
^ Centre had transferred Rs. 5,795 crore from CFI to cess fund as part of an exercise to apportion
balance IGST pertaining to 2018-19 on 08.03.2022
$ Balance GST compensation cess available is Rs. 16844 crore. However, taking into account the
interest of back to back loan of Rs. 7,500 crore, GST compensation cess carried forward to FY 2022-
23 as opening balance is Rs. 9344 crore.
Agenda for 50th GSTCM Volume II
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# Balance GST compensation cess available is Rs. (-13,961.59) crore. However, taking into account
the interest of back to back loan of Rs. 14,000 crore, GST compensation cess carried forward to FY
2023-24 as opening balance is Rs. -27,961.59 crore.
Table 4: Status of AG’s certificate received and processed:
Name of State/UT 2017-18 2018-19 2019-20 2020-21 2021-22
1 Andhra Pradesh
2 Arunachal Pradesh
3 Assam
4 Bihar
5 Chhattisgarh
6 Delhi
7 Goa
8 Gujarat
9 Haryana
10 Himachal Pradesh
11 J & K
12 Jharkhand
13 Karnataka
14 Kerala
15 Madhya Pradesh
16 Maharashtra
17 Manipur
18 Meghalaya
19 Mizoram
20 Nagaland
21 Odisha
22 Puducherry
23 Punjab
24 Rajasthan
25 Sikkim
26 Tamil Nadu
27 Telangana
28 Tripura
29 Uttar Pradesh
30 Uttarakhand
31 West Bengal
AG's certificate pending
AG's certificate received
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States Revenue Comparison
3. The State-wise details of comparison of SGST revenue and the post settlement SGST revenue
(including ad-hoc settlement) for FY 2023-24 (April-June) as compared to FY 2022-23 (April-June)
may be seen in the Table 5.
Table 5: State-wise Revenue Comparison Q1 (FY 2023-24) vs Q1 (FY 2022-23)

Q1 (2023-24) vs Q1 (2022-
23) (Amount Rs. in Crore)
State
Code State/UT
Presettlement
(Apr'22-
Jun'22)
PostSettlement
(Apr'22-
Jun'22)
Presettlement
(Apr'23-
Jun'23)
PostSettlement
(Apr'23-
Jun'23)
SGST
Growth
(%)
SGST
Growth Post
settlement
(%)
1
Jammu and
Kashmir
601 1,893 829 2,154
38% 14%
2
Himachal
Pradesh
584 1,460 716 1,504
22% 3%
3 Punjab 2,033 4,981 2,225 5,383 9% 8%
4 Chandigarh 149 517 175 568 18% 10%
5 Uttarakhand 1,313 1,998 1,404 2,181 7% 9%
6 Haryana 4,689 7,820 5,110 8,858 9% 13%
7 Delhi 3,594 7,303 4,095 8,151 14% 12%
8 Rajasthan 4,089 8,865 4,522 9,866 11% 11%
9 Uttar Pradesh 7,242 17,636 8,423 19,102 16% 8%
10 Bihar 1,855 6,098 2,073 6,547 12% 7%
11 Sikkim 91 229 166 318 82% 39%
12
Arunachal
Pradesh
162 470 229 592
41% 26%
13 Nagaland 60 249 91 285 50% 14%
14 Manipur 82 366 105 322 27% -12%
15 Mizoram 53 234 93 274 75% 17%
16 Tripura 115 375 148 422 28% 13%
17 Meghalaya 127 387 169 452 33% 17%
18 Assam 1,344 3,166 1,567 3,807 17% 20%
19 West Bengal 5,569 9,668 6,312 10,841 13% 12%
20 Jharkhand 1,960 2,873 2,302 3,180 17% 11%
21 Odisha 4,136 4,947 4,237 5,767 2% 17%
22 Chhattisgarh 2,020 2,804 2,168 3,277 7% 17%
23 Madhya Pradesh 2,745 6,920 3,311 8,088 21% 17%
24 Gujarat 9,966 14,447 10,936 16,727 10% 16%
25&26
Dadra and Nagar
Haveli & Daman
and Diu
181 288 161 295
-11% 2%
27 Maharashtra 22,590 32,865 26,466 38,188 17% 16%
29 Karnataka 8,768 15,905 10,419 18,882 19% 19%
30 Goa 505 915 598 1,066 18% 17%
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31 Lakshadweep 3 8 12 40 368% 400%
32 Kerala 3,087 7,389 3,690 8,073 20% 9%
33 Tamil Nadu 8,843 14,707 10,037 15,835 14% 8%
34 Puducherry 116 306 120 432 3% 41%
35
Andaman and
Nicobar Islands
66 136 78 160
19% 17%
36 Telangana 4,149 8,958 4,846 9,935 17% 11%
37 Andhra Pradesh 3,232 6,600 3,584 7,556 11% 14%
38 Ladakh 36 98 54 124 49% 26%
97 Other Territory 41 116 62 276 52% 138%
Grand Total 106,200 193,998* 121,532 219,529 14% 13%
*Includes adhoc IGST settlement of Rs. 13,500 crore released to States in June’2022
Trends in Return filing
5. The table 6 shows the trend in return filing in FORM GSTR-3B and GSTR-1 till due date for
return period Jan’23 to May’23. Tables 7 and 8 show the State wise filing for these months.
Table 6: Return filing (GSTR-3B/GSTR-1) till due date
Return Period GSTR-3B (%) GSTR-1(%)
Jan’23 61% 61%
Feb’23 81% 63%
Mar’23 76% 58%
Apr’23 81% 60%
May’23 81% 60%

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Figure 3: GSTR-3B/GSTR-1 Filing till due date
Table 7: State-wise Return filing (GSTR-3B) till due date (Jan’23-May’23)
State/UT Jan-23 Feb-23 Mar-23 Apr-23 May-23
01 Jammu and Kashmir 45% 81% 73% 79% 80%
02 Himachal Pradesh 62% 83% 79% 82% 82%
03 Punjab 75% 82% 79% 85% 84%
04 Chandigarh 78% 85% 81% 86% 86%
05 Uttarakhand 56% 78% 74% 79% 78%
06 Haryana 73% 82% 79% 83% 82%
07 Delhi 71% 82% 80% 82% 81%
08 Rajasthan 70% 82% 77% 83% 82%
09 Uttar Pradesh 53% 82% 76% 82% 82%
10 Bihar 33% 77% 71% 75% 76%
11 Sikkim 37% 76% 71% 76% 75%
61%
81%
76%
81% 81%
63%
58% 60% 60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan’23 Feb’23 Mar’23 Apr’23 May’23
GSTR-3B (%) GSTR-1(%)
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12 Arunachal Pradesh 27% 70% 58% 64% 64%
13 Nagaland 33% 73% 66% 71% 72%
14 Manipur 26% 65% 53% 28% 38%
15 Mizoram 22% 74% 73% 75% 76%
16 Tripura 49% 82% 72% 81% 81%
17 Meghalaya 30% 74% 72% 73% 77%
18 Assam 41% 73% 63% 71% 73%
19 West Bengal 57% 83% 79% 83% 83%
20 Jharkhand 51% 81% 75% 80% 80%
21 Odisha 44% 77% 72% 76% 74%
22 Chhattisgarh 54% 72% 63% 72% 73%
23 Madhya Pradesh 58% 79% 70% 78% 78%
24 Gujarat 85% 89% 84% 88% 88%
25 Dadra and Nagar Haveli & Daman 78% 81% 76% 82% 81%
27 Maharashtra 69% 80% 74% 79% 79%
29 Karnataka 61% 82% 75% 79% 80%
30 Goa 54% 76% 69% 74% 75%
31 Lakshadweep 60% 71% 69% 69% 71%
32 Kerala 63% 80% 71% 78% 79%
33 Tamil Nadu 63% 84% 78% 83% 84%
34 Puducherry 57% 79% 75% 79% 79%
35 Andaman and Nicobar Islands 49% 69% 61% 66% 66%
36 Telangana 49% 77% 70% 76% 77%
37 Andhra Pradesh 58% 80% 72% 78% 79%
38 Ladakh 40% 76% 73% 72% 71%
97 Other Territory 75% 78% 81% 77% 75%
Total 61% 81% 76% 81% 81%
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Table 8: State-wise Return filing (GSTR-1) till due date (Jan’23-May’23)
State/UT Jan-23 Feb-23 Mar-23 Apr-23 May-23
01 Jammu and Kashmir 45% 45% 37% 41% 40%
02 Himachal Pradesh 62% 63% 51% 61% 59%
03 Punjab 75% 80% 72% 78% 77%
04 Chandigarh 78% 81% 75% 80% 78%
05 Uttarakhand 56% 58% 50% 57% 55%
06 Haryana 73% 75% 70% 74% 72%
07 Delhi 71% 75% 74% 74% 72%
08 Rajasthan 70% 71% 63% 70% 69%
09 Uttar Pradesh 53% 52% 48% 50% 51%
10 Bihar 33% 32% 29% 31% 31%
11 Sikkim 37% 43% 36% 40% 39%
12 Arunachal Pradesh 27% 32% 25% 23% 27%
13 Nagaland 33% 35% 31% 33% 31%
14 Manipur 26% 25% 25% 13% 17%
15 Mizoram 22% 24% 22% 25% 24%
16 Tripura 49% 49% 42% 46% 46%
17 Meghalaya 30% 35% 28% 32% 32%
18 Assam 41% 42% 35% 39% 38%
19 West Bengal 57% 58% 53% 56% 56%
20 Jharkhand 51% 49% 46% 48% 47%
21 Odisha 44% 45% 39% 42% 42%
22 Chhattisgarh 54% 53% 44% 52% 52%
23 Madhya Pradesh 58% 57% 45% 54% 53%
24 Gujarat 85% 86% 81% 84% 84%
25 Dadra and Nagar Haveli & Dama 78% 80% 78% 80% 79%
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27 Maharashtra 69% 72% 66% 69% 68%
29 Karnataka 61% 63% 57% 57% 58%
30 Goa 54% 62% 57% 59% 59%
31 Lakshadweep 60% 58% 50% 51% 45%
32 Kerala 63% 65% 58% 62% 61%
33 Tamil Nadu 63% 64% 59% 61% 60%
34 Puducherry 57% 57% 53% 54% 52%
35 Andaman and Nicobar Island 49% 47% 40% 46% 43%
36 Telangana 49% 53% 49% 50% 49%
37 Andhra Pradesh 58% 58% 51% 53% 52%
38 Ladakh 40% 42% 36% 33% 37%
97 Other Territory 75% 77% 79% 74% 78%
Total 61% 63% 58% 60% 60%


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Agenda for the 50th GST Council Meeting
Recommendations of Fitment Committee on positive list of services to be specified in Sr. No.
3/3A of Notification No. 12/2017-CT(R)) dated 28.06.2017
The entries at Sr. No. 3 and 3A of exemption Notification No. 12/2017-CT(R) dated 28.06.2017
exempt supply of pure services and composite supplies (goods component 25% or less) supplied to
Central Government, State Government or Local Authority, by way of any activity in relation to
Municipal or Panchayat functions under Article 243G or 243W of the Constitution
2. With effect from 1.1.2022, the entries read as below:
Entry 3 of Notification No. 12/2017- CT(R):
“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
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.”
Entry 3A of Notification No. 12/2017- CT(R):
“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 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.”
3. Prior to 1.1.2022, the exemption entries covered services supplied to Governmental authority
and Governmental entities also.
4. There was a similar exemption in Service Tax initially. However, in view of disputes of
interpretation and misuse , the exemption was restricted to supply of services by way of five specific
activities, namely , water supply, public health, sanitation conservancy, solid waste management or
slum improvement and up-gradation.
5. In view of the concern that the exemption is being interpreted too widely , a proposal to specify
a positive list of services under the said entries was placed before the 45th GST Council meeting. The
Council was of the view that while the approach to specify a positive list of exempt services was
agreeable, the list recommended by Fitment Committee needs to be pruned and refined. It was agreed
that the list of services shall be circulated to all states for their inputs for refining the list which may be
brought before GST Council for approval.
6. Accordingly, as per the direction of the Council, the List was circulated to States. Comments
were received from West Bengal, Bihar and Tamil Nadu. The issue was discussed at length in the
Fitment Committee. After long deliberation the Fitment Committee was of the view that the exemption
under said entries should confine to those services which are directly connected with the functions
entrusted to Panchayat or Municipality and not services remotely or vaguely connected with those
functions. Further, it was felt that only few services constitute bulk of input services by the local
authority. Hence the list could be pruned down significantly while ensuring that major services by these
bodies remain exempted. This approach would ensure that exemption entries are not interpreted widely,
local authority continue to have major relief on supply of input services, and in respect of other general
Agenda for 50th GSTCM Volume II
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services the normal design of GST could be applied. Fitment Committee also felt that in respect of
purchase of goods no special concession is allowed to procurement by the Government or Local
Authority. They suffer same incidence on goods as any private person (for example cement, iron and
steel, vehicle, furniture etc.). In service, the special concession crept in as services were taxed differently
in pre-GST regime wherein tax was only imposed by Centre and there was no VAT on services.
However, In GST there should not be any appreciable difference in the approach for goods and services.
As is the case in goods, the Government and Local Authority should also bear the normal rate of GST
on input services barring exceptions. Accordingly, Fitment Committee carved out a positive list of
services for consideration of the Council. The list contained the following 6 services :
1) Water treatment and/or supply
2) Public Health activities, Sanitation Conservancy and Solid or Liquid Waste management
3) Slum Improvement and Up gradation
4) Maintenance and operation of street lights, bus stops, public conveniences, public parks and
gardens, burial ground and crematorium.
5) Renting of motor vehicles for carrying out functions listed at Sr. No. 1 to 4 above.
6) Supply of manpower services for carrying out functions listed at Sr. No 1 to 4 above.
7. With this positive List approach, it was also felt that the authorities constituted in different
states for such civic work as fall in the proposed positive list should also be included in the ambit of
these exemptions alongside the local authority. Accordingly , the exemption may also be extended to
specified services supplied to Public Authorities which may be defined as under:
“Public Authority” means an authority or a board or any other body established by the Government
to carry out the functions listed in S. No. 1 to 4 of the entry.
8. The recommendation of the Fitment Committee was discussed in the 47th GST Council meeting
held on 28th -29th June, 2022. Since, some of the states expressed their concerns that the positive list of
services should be more broad based, the Council directed that the proposal to specify a positive list of
services under Sr. No. 3 & 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 may
be reconsidered by the Fitment Committee taking into account the inputs from all the States which had
voiced their concerns in the said council meeting.
9. Accordingly, the States of Telangana, Andhra Pradesh and Delhi were invited to the Fitment
Committee meeting held on 12.09.2022 to give their views on the said issue. At the said meeting,
Telangana requested to include Public Distribution System, Animal Husbandry etc. under the proposed
positive list. Andhra Pradesh suggested expanding the proposed definition of Public Authority so as to
cover manpower supply services hired by the state through a state corporation under exemption.
10. The views given by the states in writing were as under:
Telangana :
The following services may be added to the list of services to be specified in entry 3/3A of Notification
No. 12/2017-Central Tax (Rate) dated 28.06.2017:
• Public Distribution and the related activities including Custom Milling and transportation
services
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Process of public distribution system involves large scale procurement of Custom Milling
Services and renting of vehicles transportation services, without which the final goal of
distribution cannot be met.
• Minor Irrigation
Telangana has taken up the programme of restoring the minor irrigation sources under the title
“Mission Kakatiya”. The services procured under this programme areprimarily in the nature of
pure services or services where goods component is less than 25%.
• Social forestry and Farm forestry
For achieving the objective of increasing tree cover in the State to 33% of the total geographical
area of the State through the "Haritha haram".
• Roads and bridges
To improve the connectivity, earth work (laying of mud roads) is taken up on a continuous basis
in many villages. These services are generally procured from the Local people and the
involvement of the goods component in these services is quite low.
Delhi
The exemption on services mentioned in Article 243 G & 243 W of Constitution of India should be
continued.
11. In view of the above suggestions received from states, the Fitment Committee went through the
list of activities specified in the 11th and 12th Schedule to the Constitution and recommended that the
following services may be added to the positive list of services (placed before the 47th GST Council)
under Sr. No. 3/3A of Notification No. 12/2017-CTR
• Education, including primary and secondary schools
• Technical training and vocational education
• Adult and non-formal education
• Libraries
• Social Forestry and Farm Forestry
• Fire Services

11.1 On the suggestion to include ‘society’ also in the definition of Public Authority, consensus was
that the phrase ‘any other body’ used in the definition of Public Authority proposed in the 47th GST
Council Meeting would include societies, companies, corporations etc. also.
11.2 As regards, the suggestion of Telangana to include Minor Irrigation & Roads and Bridges. GST
on specified works contract services (WCS) supplied to Central Government, State Government and
Local Authorities has recently been revised from 12% to 18% with effect from 18.07.2022 and on WCS
predominantly involving earthwork from 5% to 12%. Services procured for minor irrigation and for
construction/laying down of roads & bridges would predominantly be WCS which the GST Council
has recommended to be taxed at 18%/12%.
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11.3 Exempting custom milling will block the input tax credit (ITC) of the milling units on capital
goods, raw materials (such as packing material, vitamins and other fortification additives etc.) and input
services. GST payable on customs milling will in any case flow back to the Government as revenue.
12 Accordingly, after reconsidering the issue , the Fitment Committee recommended that (a) the
following expanded list of 12 services may be specified in SI. No. 3 and 3A of Notification No. 12/2017-
CTR as under:
“3. Supply of pure services, or composite supply of goods and services, in which the value of goods
constitutes not more than 25% of the value of composite supply, to Central Government, State
Government, Union Territory, a local authority or a public authority by way of,
1. Water treatment and/or supply;
2. Public Health activities, Sanitation Conservancy and Solid or Liquid Waste management;
3. Slum Improvement and Up gradation;
4. Maintenance and operation of street lights, bus stops, public conveniences,
public parks and gardens, burial ground and crematorium;
5. Education, including primary and secondary schools;
6. Technical training and vocational education;
7. Adult and non-formal education;
8. Libraries;
9. Social Forestry and Farm Forestry;
10. Fire Services;
11. Renting of motor vehicles for carrying out functions listed at Sr. No. 1 to 10 above;
12. Supply of manpower services for carrying out functions listed at Sr. No 1 to 10 above.”
(b)Public authority may be defined as under:
“Public Authority means an authority or a board or any other body established and controlled by the
Central or State Government to carry out the functions listed in SI. No. 1 to 10 of the entry.”
(c) As a consequential change to the proposed modification in entry 3 and 3A of the said Notification,
an explanation may be inserted in the modified entry along the lines of the Circular No.177/09/2022-
TRU dated 03rd August 2022 as under:
“Explanation: The exemption under this entry applies only to pure services and composite supplies
procured by Central Government, State Government, Union Territories, local authorities or a public
authority for performing functions listed in the 11th and 12th Schedule of the Constitution. Services
procured by any Central/State Government Ministry/Department /Union Territory or Public Authority
which does not perform any functions listed in the 11th and 12th Schedule, in the manner as a local
authority does for the general public, are not eligible for exemption under this entry.”
13. The above recommendation of the Fitment Committee was discussed in the 48th GST Council
meeting held via video conference . Some of the states including Tamil Nadur, Delhi, Kerala, Andhra
Pradesh and west Bengal did not agree with the recommendation of the Fitment Committee. The
Council decided to postpone discussion on the positive list of services in a physical meeting of the GST
Council.
14. The recommendations of the Fitment Committee is placed before the GST Council for
consideration.
Agenda for 50th GSTCM Volume II
Annexure-B to Agenda Item
7 on Scheme of Budgetary
Support under GST regime
Annexure B to Agenda 7 Volume I 50th GSTCM
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7405 OF 2022
[Arising out of SLP (Civil) No. 12397 of 2020]
M/S HERO MOTOCORP LTD. …APPELLANT (S)
VERSUS
UNION OF INDIA & ORS. …RESPONDENT(S)
WITH
CIVIL APPEAL NO. 7406 OF 2022
[Arising out of SLP (Civil) No. 11978 of 2021]
J U D G M E N T
B.R. GAVAI, J.
1. Leave granted.
2. These appeals raise an important question of law as to
whether the Union of India can be directed to adhere to the
representation as made by it in the Office Memorandum
dated 7th January 2003 (hereinafter referred to as “the said
O.M. of 2003”) even after the enactment of the Central
1
Annexure B to Agenda 7 Volume I 50th GSTCM
Goods and Services Tax Act, 2017 (hereinafter referred to as
“the CGST Act”).
3. Civil Appeal arising out of Special Leave Petition (Civil)
No. 12397 of 2020 arises out of judgment and order dated
2
nd March, 2020, passed by the High Court of Delhi,
dismissing the Writ Petition (Civil) No. 505 of 2022 filed by
the appellant – Hero Motocorp Ltd., thereby rejecting the
appellants claim of 100% budgetary support in lieu of the
pre-existing 100% outright excise duty exemption for ten
years from the date of the commencement of commercial
production, as provided for by the said O.M. of 2003 issued
by the Government of India.
4. Civil Appeal arising out of Special Leave Petition (Civil)
No. 11978 of 2021, arises out of judgment and order dated
5
th February, 2021 passed by the High Court of Sikkim,
dismissing the Writ Petition (C) No. 47 of 2018, filed by the
appellant – Sun Pharma Laboratories Ltd. assailing the
reduction of the benefit of 100% exemption from excise duty
granted to it vide office memorandum dated 17th February,
2
Annexure B to Agenda 7 Volume I 50th GSTCM
2003, which were to be made available for a period of ten
years from the date of commencement of commercial
production.
5. Both the appellants herein approached the respective
High Courts claiming therein that in view of the said O.M. of
2003 and Notification No.50/2003-C.E. dated 10th June
2003 (hereinafter referred to as “2003 Notification”), the
Union was bound to give 100% tax exemption till completion
of 10 years’ period from the date of commencement of their
commercial production.
FACTUAL BACKGROUND
6. The factual scenario leading to the filing of the present
appeals lies in a narrow compass, which is as under:
6.1 The Government of India had issued the said O.M. of
2003 based on the statement made by the Hon’ble Prime
Minister, during his visit to Uttranchal (now Uttarakhand)
in March 2002. The said O.M. of 2003 provided that, for
the States of Uttaranchal and Himachal Pradesh, new
industrial units and existing industrial units on their
3
Annexure B to Agenda 7 Volume I 50th GSTCM
substantial expansion would be entitled to exemption of
100% outright excise duty for 10 years from the date of
commencement of commercial production. The said O.M. of
2003 also provided that there shall be 100% income tax
exemption for such units initially for five years and
thereafter 30% for companies and 25% for other companies
for a further period of five years, from the date of
commencement of commercial production. Various other
incentives were also provided vide the said O.M. of 2003.
6.2 In pursuance to the said O.M. of 2003, a 2003
Notification was notified in exercise of the powers conferred
by sub-section (1) of Section 5A of the Central Excise Act,
1944 read with sub-section (3) of Section 3 of the Additional
Duties of Excise (Goods of Special Importance) Act, 1957
and sub-section (3) of Section 3 of the Additional Duties of
Excise (Textiles and Textile Articles) Act, 1978. The said
notification provided for exemption for a period not
exceeding ten years from the date of publication of the said
notification in the Official Gazette or from the date of
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Annexure B to Agenda 7 Volume I 50th GSTCM
commencement of commercial production, whichever was
later.
6.3 The appellant – Hero Motocorp Ltd. had established a
new industry unit for manufacture of motorcycles at
Haridwar, Uttarakhand, which commenced commercial
production from 7th April, 2008. The appellant – Hero
Motocorp Ltd. availed the exemption until 1st July, 2017,
whereafter the Goods and Service Tax regime came into
existence and the benefit being enjoyed by the appellant –
Hero Motocorp Ltd. was reduced to 58% through the
Budgetary Support Policy.
6.4 The appellant - Sun Pharma Laboratories Ltd. setup its
first industrial unit which commenced its commercial
production from 20th April, 2009. A second unit was also set
up later which commenced commercial production from 14
th
April, 2014. Before the advent of the new GST regime, both
of the appellant’s units were enjoying a full refund of the
central excise duties paid by them as provided for in the
exemption notification dated 25th June, 2003, pursuant to
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Annexure B to Agenda 7 Volume I 50th GSTCM
the Office Memorandum dated 17th February, 2003. After
the commencement of the new GST regime, here too, the
benefit being enjoyed by the appellant - Sun Pharma
Laboratories was reduced to 58% through the
implementation of the Budgetary Support Policy.
6.5 Subsequently, by the Constitution (One Hundred and
First Amendment) Act, 2016 (hereinafter referred to as “the
101st Amendment Act”), the Constitution of India came to be
amended by the Parliament to introduce the goods and
services tax system pan India. By the 101st Amendment
Act, concurrent taxing power was conferred on the Union as
well as the States including the Union Territories. By the
101st Amendment Act, Article 246A was inserted, making a
special provision for levy of Goods and Service Tax (“GST”
for short), by both the Union as well as the States. Article
269A was inserted to provide for levy and collection of GST
in the course of Inter-State trade or commerce (“IGST” for
short) by the Government of India. It also provided that
such tax shall be apportioned between the Union and the
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Annexure B to Agenda 7 Volume I 50th GSTCM
States in the manner as may be provided by Parliament by
law on the recommendations of the Goods and Services Tax
Council (“GST Council” for short).
6.6 In pursuance of the said amendments to the
Constitution of India, the Central Goods and Services Tax
Act, 2017 (hereinafter referred to as “the CGST Act”) and
Integrated Goods and Services Tax Act, 2017 (hereinafter
referred to as “the IGST Act”) were enacted by the
Parliament and various States Goods and Service Tax Acts
(“SGST” for short) were enacted by the State Legislatures for
their respective States for the levy of GST.
6.7 Under clause (c) of sub-section (2) of Section 174 of the
CGST Act, a Notification No.21/2017-CE dated 18th July
2017 was issued by the respondent-Union of India by which
the exemption notifications through which tax exemptions
were granted as an incentive against the investment came to
be rescinded on or after the appointed day, i.e. 1st July
2017. As a result, the tax exemption which was granted by
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Annexure B to Agenda 7 Volume I 50th GSTCM
the said O.M. of 2003 ceased to continue with effect from 1
st
July 2017.
6.8 The GST Council, in its meeting held on 30
th
September 2016, had resolved that all entities exempted
from payment of indirect tax would pay tax in the GST
regime. It had also resolved that the decision to continue
with any incentive given to specific industries in existing
industrial policies of States or through any schemes of the
Central Government would be with the concerned State or
Central Government. It was further resolved that in the
event it was decided by the concerned State or Central
Government to continue any existing exemption/incentive,
etc., then it would be administered by way of a
reimbursement mechanism through the budgetary route.
The modalities of the same were to be worked out by the
concerned State/Centre.
6.9 In pursuance of the said recommendations of the GST
Council, the Central Government notified the Budgetary
Support Scheme vide Notification dated 5th October 2017,
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Annexure B to Agenda 7 Volume I 50th GSTCM
thereby providing to refund/reimburse the Central share of
CGST and IGST to the affected eligible industrial units for
the residual period in the North Eastern and the Himalayan
States. The Central share was determined at 58% of CGST
and 29% of IGST.
6.10 Being aggrieved by the decision of the Central
Government in restricting the refund only to 58% of CGST
and 29% of IGST and not providing 100% refund of CGST,
the appellant-Hero Motocorp Ltd. approached the Delhi
High Court by way of writ petition being Writ Petition (Civil)
No. 505 of 2020 and the appellant-Sun Pharma
Laboratories Limited approached the Sikkim High Court by
way of writ petition being Writ Petition (Civil) No.47 of 2018.
The Delhi High Court, vide its judgment and order dated 2
nd
March 2020, and the Sikkim High Court, vide its judgment
and order dated 5th February 2021, have dismissed the said
writ petitions.
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Annexure B to Agenda 7 Volume I 50th GSTCM
6.11 Being aggrieved by the dismissal of the writ petitions,
the appellants (the original writ petitioners) have
approached this Court.
6.12 Hence the present appeals.
SUBMISSIONS
7. We have heard Shri S. Ganesh, learned Senior Counsel
appearing on behalf of the appellant-Hero Motocorp Ltd. in
Civil Appeal arising out of Special Leave Petition (Civil)
No.12397 of 2020, Shri V. Sridharan, learned Senior
Counsel appearing on behalf of the appellant-Sun Pharma
Laboratories Ltd. in Civil Appeal arising out of Special Leave
Petition (Civil) No.11978 of 2021 and Shri N. Venkatraman,
learned Additional Solicitor General appearing on behalf of
the respondent-Union of India.
8. Shri S. Ganesh, learned Senior Counsel, submits that
the perusal of the said O.M. of 2003 would reveal that an
unequivocal representation was made by the Central
Government to the commercial entities which were desirous
of setting up industrial units in the States of Uttarakhand
10
Annexure B to Agenda 7 Volume I 50th GSTCM
and Himachal Pradesh, that, in the event a new industry is
established or there is a substantial expansion of the
existing unit, then such industrial units would be entitled to
100% exemption from payment of excise duty for 10 years.
He submits that the Central Government is bound by such
representation. It is submitted that the industrial units like
that of the appellants, relying on the promise made by the
Central Government, have altered their position to their
detriment and as such, the Central Government is now
estopped from resiling from the representation made by it to
the appellants.
9. Shri Ganesh submits that the figure of refund only to
the extent of 58% has been achieved in an arbitrary and
irrational manner. He submits that the Union has
purportedly done so under the umbrella of the report of the
Finance Commission. He contends that, even under the
earlier regime of excise tax and all other levies collected by
the Central Government, the States were entitled to their
share therein. It is stated that the share of the Central
11
Annexure B to Agenda 7 Volume I 50th GSTCM
Government and the State Government in the said regime
has always been there and it is not as if it has come for the
first time after the GST regime started. Learned Senior
Counsel submits that under the old regime, though the
Central Government was sharing with the States a certain
percentage of entire taxes collected by it, still, 100%
exemption from the payment of duty was being granted to
the entities like the appellants herein. It is submitted that
there is no reason as to why the same should not have been
continued under the new regime.
10. Shri Ganesh further submits that the policy as is
reflected in the said O.M. of 2003 would stand on a higher
pedestal than the statutory provision or a notification under
a statute and the Union would be bound to adhere to the
same. He submitted that even in January 2003 when the
exemption notifications were issued, the same sharing
pattern was in existence between the States and the Central
Government.
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Annexure B to Agenda 7 Volume I 50th GSTCM
11. Shri Ganesh further submits that under Section 11 of
the CGST Act, the Government has the power to grant
exemption from tax and there is no reason as to why the
Union Government should not have exercised such a power
in the peculiar facts and circumstances of the case.
12. Learned Senior Counsel, therefore, submits that the
view taken by the Delhi High Court is not sustainable in
law. He submits that the appeals deserve to be allowed and
a direction be issued to the Central Government to provide
100% reimbursement of CGST for the remainder of the
period.
13. Shri Ganesh relied on the judgments of this Court in
the cases of State of Bihar and others vs. Suprabhat
Steel Ltd. and others1
, State of Jharkhand and others
vs. Tata Cummins Ltd. and another2
, Lloyd Electric and
Engineering Limited vs. State of Himachal Pradesh and
others3
, MRF Ltd., Kottayam vs. Asstt. Commissioner
(Assessment) Sales Tax and others4
, The State of
1
(1999) 1 SCC 31
2
(2006) 4 SCC 57
3
(2016) 1 SCC 560
4
(2006) 8 SCC 702
13
Annexure B to Agenda 7 Volume I 50th GSTCM
Jharkhand and ors. vs. Brahmputra Metallics Ltd. and
ors.5
, Manuelsons Hotels Private Limited vs. State of
Kerala and others6
and State of Punjab vs. Nestle India
Ltd. and another7

14. He also relied on judgments of various High Courts.
However, we do not find it necessary to refer to them
inasmuch as the law on the issue is very well crystallized in
various judgments of this Court.
15. Shri V. Sridharan, learned Senior Counsel, also
submitted that the Central Government had come out with
a policy of promoting industrial growth and employment in
the backward areas. He submits that even after the GST
regime, it should have continued the said policy. He
submits that, if the Central Government has brought down
the benefit from 100% to 58%, then it should
extend/increase the period of benefit to ensure that the
promise made in 2003 industrial policy is given effect to in
reality. He relies on the judgment of this Court in the case of
5
MANU/SC/0906/2020 [Civil Appeal Nos. 3860-3862 of 2020, decided on
1.12.2020]
6
(2016) 6 SCC 766
7
(2004) 6 SCC 465
14
Annexure B to Agenda 7 Volume I 50th GSTCM
Video Electronics Pvt. Ltd. and another vs. State of
Punjab and another8 and Union of India vs. Paliwal
Electricals (P) Ltd. and another9
.
16. Shri Sridharan further submitted that the Sikkim High
Court has only relied on the judgment of this Court in the
case of Union of India & Anr. vs. V.V.F. Limited & Anr.
10
He submitted that the issue in the case of V.V.F. Limited &
Anr. (supra) was with regard to the withdrawal of
notification since it was found to be misused. He submits
that the factual situation in the present case is different and
as such, the High Court was in error in dismissing the writ
petition.
17. Shri N. Venkatraman, learned Additional Solicitor
General (“ASG” for short), on the contrary, submits that
promissory estoppel cannot be applied to the representation
made by the Union of India, if there is a material change in
the circumstances and the larger public interest warrants
such a withdrawal. He submits that, in view of the
8
(1990) 3 SCC 87
9
(1996) 3 SCC 407
10 2020 SCC Online SC 378
15
Annexure B to Agenda 7 Volume I 50th GSTCM
constitutional amendment, a new era of GST has emerged.
He submits that the new era emphasizes on the principle of
pooled sovereignty where States and Centre share equal
responsibilities. Learned ASG submits that Article 279A of
the Constitution provides for the establishment of the GST
Council. It is submitted that the GST Council consists of (a)
the Union Finance Minister; (b) the Union Minister of State
in charge of Revenue or Finance; and (c) the Minister in
charge of Finance or Taxation or any other Minister
nominated by each State Government. He submits that the
GST Council has been empowered to make
recommendations to the Union and the States on the taxes,
cesses and surcharges levied by the Union, the States and
the local bodies which are to be subsumed in the GST. It is
submitted that clause (6) of Article 279A of the Constitution
of India directs the GST Council to be guided by the need for
a harmonized structure of GST and the development of a
harmonized national market for goods and services, while
discharging its functions. He submits that under clause (1)
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Annexure B to Agenda 7 Volume I 50th GSTCM
of Article 246A of the Constitution, both the Parliament as
well as the State Legislatures have been empowered to make
laws with respect to GST to be imposed by the Union or by
such States, whereas clause (2) of the said Article empowers
Parliament to make laws with respect to GST where the
supply of goods, or of services, or both takes place in the
course of inter-State trade or commerce.
18. Learned ASG would, therefore, submit that a sea
change has occurred with the advent of GST from 1st July
2017. The first change, in the submission of the learned
ASG, is that the earlier tax regime was origin based,
whereas the new tax regime is destination based. Under the
old regime, the Centre was collecting 100% excise duty,
service tax, central sales tax, etc. and the States were
collecting 100% Value Added Tax (“VAT” for short). Under
the old tax regime, there was no uniformity with regard to
State levies, whereas under the new tax regime, there is
uniformity. Under the new regime, both Union and the
States come on the same platform under Articles 246A and
17
Annexure B to Agenda 7 Volume I 50th GSTCM
279A of the Constitution and become common partners for
taxing together. Under the new regime, both States as well
as Union charge at the same rate. Learned ASG submits
that the only common feature in the old regime as well as in
the new regime is that the Centre continues to fund the
States.
19. Learned ASG further submitted that pursuant to the
enactment of GST, a notification, being Notification No. 21
of 2017, was issued on 18th July 2017, thereby withdrawing
the exemptions granted previously under the erstwhile
excise regime. He submits that the appellants have not
challenged the validity of the said Notification. He further
submits that, in view of the proviso to clause (c) of subsection (2) of Section 174 of the CGST Act, the exemptions
stood automatically rescinded. The validity thereof has also
not been challenged by the appellants. He, therefore,
submits that the writ petitions, without challenging the
validity thereof, are not tenable.
18
Annexure B to Agenda 7 Volume I 50th GSTCM
20. Learned ASG submits that, though after the enactment
of the GST the Central Government was not bound to
continue granting any relief, however, as a matter of good
gesture and on the recommendations of the GST Council, it
has decided to reimburse 58% of CGST paid by such
industrial units who were entitled to the benefit of
exemption notifications. He submits that the said has been
done based on the recommendations of the Finance
Commission, which has earmarked the share of the Union
at 58% and of the States at 42%.
21. Learned ASG submits that the writ petitions have been
erroneously filed seeking a relief against the Union. He
submits that if the appellants have any claim, then that
would be against the State Governments wherein the
industries are situated. It is submitted that, as a matter of
fact, the Government of Jammu & Kashmir, vide
Notification dated 21st December 2017 has already resolved
to reimburse the remaining 42% of the GST to the units
located in the State till the period the Union Scheme is
19
Annexure B to Agenda 7 Volume I 50th GSTCM
valid. It is submitted that the appellants ought to have
sought similar relief against the State Governments. Thus,
in his submission, a writ against the Union of India is
untenable.
22. Learned ASG further submits that the writ of
mandamus could only be issued against a statutory body
when it is established that there is a duty cast upon a
statutory authority and that the said authority has
neglected to perform such duty. It is submitted that the
appellants have not been in a position to point out that any
such duty is cast upon the Union to reimburse 100% GST
and as such, the present appeals would not be tenable.
23. Learned ASG, relying on various judgments of this
Court submitted that in view of the overwhelming public
interest, the Union cannot be held to comply with the
assurance given by it in the said O.M. of 2003.
24. In support of his submissions, learned ASG relies on
the judgments of this Court in the cases of Union of India
and others vs. VKC Footsteps India Private Limited
11
,
11 (2022) 2 SCC 603
20
Annexure B to Agenda 7 Volume I 50th GSTCM
Union of India and another vs. Mohit Minerals Pvt. Ltd.
through Director12
, Union of India and others vs.
Unicorn Industries13
, Augustan Textile Colours Limited
(Now Augustan Textile Colours Private Limited) vs.
Director of Industries and another14
, Kuldeep Singh vs.
Govt. of NCT of Delhi15
, Union of India and another vs.
International Trading Co. and another16
, Comptroller
and Auditor General of India, Gian Prakash, New Delhi
and another vs. K.S. Jagannathan and another17 and
Union of India & others vs. Bharat Forge Ltd. &
another18
.
25. Shri S. Ganesh, learned Senior Counsel, in rejoinder,
submits that the submission of the learned ASG that the
remedy lies against the States and not against the Centre is
devoid of any substance. He submits that the assurance
was given by the Central Government and not by the State
12 2022 SCC OnLine SC 657
13 (2019) 10 SCC 575
14 (2022) 6 SCC 626
15 (2006) 5 SCC 702
16 (2003) 5 SCC 437
17 (1986) 2 SCC 679
18 Civil Appeal No.5294 of 2022 (@ SLP(C) No.4960 of 2021) decided on 16th
August, 2022
21
Annexure B to Agenda 7 Volume I 50th GSTCM
Governments. He submits that the said O.M. of 2003 has to
be understood from a viewpoint of a businessman to whom
the commercial representation was made. The words
“exemption from direct or indirect tax” is required to be
given full meaning. He submits that the proviso to Section
174(2)(c) of the CGST Act would not be applicable in the
present case if looked at from the viewpoint of the ordinary
businessman.
CONSIDERATION
26. It is not in dispute that the Union of India had framed
a policy vide the said O.M. of 2003. It is also not in dispute
that, vide the said policy, the Central Government had
provided that 100% exemption would be granted to the
industrial units from payment of outright excise duty for 10
years from the date on which such industrial units
commence their commercial production. The incentives
applied to the new industrial units as well as existing
industrial units going for substantial expansion. As such, it
is clear that, vide the said O.M. of 2003, an unequivocal
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Annexure B to Agenda 7 Volume I 50th GSTCM
promise was given to the entities that, in the event they
establish a new industrial unit or go for a substantial
expansion of their existing industrial units in the States of
Uttarakhand and Himachal Pradesh, they would be entitled
to 100% tax exemption.
27. It is to be noted that, subsequently, an important
development took place. By the 101st Amendment Act, a sea
change in the earlier taxation regime occurred. A uniform
tax structure throughout the country has been adopted.
The GST Council has been constituted, which is empowered
to make recommendations to the Union and the States with
regard to GST. The Union and all the States have become
common partners in levy of various taxes. To give effect to
the 101st Amendment Act, the CGST Act has been enacted.
28. The relevant part of Section 174 of the CGST Act reads
thus:
“174. Repeal and saving.—(1) Save as
otherwise provided in this Act, on and from
the date of commencement of this Act, the
Central Excise Act, 1944 (1 of 1944) (except
as respects goods included in entry 84 of
the Union List of the Seventh Schedule to
23
Annexure B to Agenda 7 Volume I 50th GSTCM
the Constitution), the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955 (16
of 1955), the Additional Duties of Excise
(Goods of Special Importance) Act, 1957 (58
of 1957), the Additional Duties of Excise
(Textiles and Textile Articles) Act, 1978 (40
of 1978), and the Central Excise Tariff Act,
1985 (5 of 1986) (hereafter referred to as
the repealed Acts) are hereby repealed.
(2) The repeal of the said Acts and the
amendment of the Finance Act, 1994 (32 of
1994)(hereafter referred to as “such
amendment” or “amended Act”, as the case
may be) to the extent mentioned in the
sub-section (1) or Section 173 shall not—
(a) ……..
(b) ……..
(c) affect any right, privilege,
obligation, or liability acquired,
accrued or incurred under the
amended Act or repealed Acts or
orders under such repealed or
amended Acts:
Provided that any tax exemption
granted as an incentive against
investment through a notification
shall not continue as privilege if the
said notification is rescinded on or
after the appointed day; or”
29. It could thus be seen that, under clause (1) of Section
174, various enactments, including the Central Excise Act,
1944, are repealed. Clause (c) of sub-section (2) of Section
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Annexure B to Agenda 7 Volume I 50th GSTCM
174, however, provides that the repeal of the said Acts shall
not affect any right, privilege, obligation, or liability
acquired, accrued or incurred under the amended Act or
repealed Acts or orders under such repealed or amended
Acts. However, the proviso thereto is clear and specific. It
specifically provides that any tax exemption granted as an
incentive against investment through a notification shall not
continue as a privilege if the said notification is rescinded
on or after the appointed day.
30. It can thus be seen that, though the first part of clause
(c) of sub-section (2) of Section 174 would protect any right,
privilege, obligation, etc. under the amended Act or repealed
Acts, the proviso thereto provides that any tax exemption
granted as an incentive against investment shall not
continue as a privilege if the said notification is rescinded
on or after the appointed day. Admittedly, vide Notification
No.21/2017 dated 18th July 2017, various earlier areabased exemption notifications have been rescinded. It is
thus clear that the benefit which was granted under the
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Annexure B to Agenda 7 Volume I 50th GSTCM
2003 Notification stands rescinded in view of the
notification issued under proviso to clause (c) of sub-section
(2) of Section 174 of the CGST Act.
31. The question, therefore, that would fall for
consideration is, as to whether, despite a subsequent
statute specifically providing for rescinding the benefits
granted under an earlier statute, the Union Government can
be compelled to stand by the representation made by it
through the earlier notification. In other words, the
question that will have to be considered is whether doctrine
of promissory estoppel could operate against a statute.
JUDICIAL PRECEDENTS
32. For considering the rival submissions, it would also be
necessary to refer to various earlier authoritative
pronouncements of this Court on the issue.
33. Heavy reliance is placed on the judgment of this Court
in the case of Union of India & Ors. vs. M/s Indo-Afghan
Agencies Ltd.19, which is one of the earlier judgments of
this Court considering the issue of promissory estoppel. In
19 1968 2 SCR 366
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the said case, the Textile Commissioner published a scheme
on 10th October 1962, called the Export Promotion Scheme
providing incentives to exporters of woolen goods. The
scheme was extended by a Trade Notice dated 1st January
1963, to export of woolen goods to Afghanistan. In
pursuance of the said scheme, the exporters were entitled to
import raw materials of a total amount equal to 100% of the
F.O.B. (freight on board) value of their exports. However,
the competent authority issued an Import Entitlement
Certificate to Indo-Afghan Agencies Ltd. only in part. The
Indo-Afghan Agencies Ltd., therefore, made a representation
to the authorities. On failure of the authorities to respond,
a petition came to be filed in the High Court of Punjab. The
High Court held that the Export Promotion Scheme
specifically provided for granting certificates to import
materials of the “value equal to 100% of the F.O.B. value of
the goods exported”. It was, therefore, held by the High
Court that the petitioners therein were entitled to obtain
import licenses for an amount equal to 100% of the F.O.B.
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value. The judgment of the High Court was challenged
before this Court. One of the issues before this Court was
with regard to the violation of principles of natural justice.
This Court also considered the issue of promissory estoppel.
This Court held:
“15. In these cases it was clearly ruled
that where a person has acted upon
representations made in an Export
Promotion Scheme that import
licences upto the value of the goods
exported will be issued, and had
exported goods, his claim for import
licence for the maximum value
permissible by the Scheme could not be
arbitrarily rejected. Reduction in the
amount of import certificate may be
justified on the ground of misconduct of
the exporter in relation to the goods
exported, or on special considerations
such as difficult foreign exchange
position, or other matters which have a
bearing on the general interests of the
State. In the present case, the Scheme
provides for grant of import
entitlement of the value, and not upto the
value, of the goods exported. The Textile
Commissioner was, therefore, in the
ordinary course required to grant import
certificate for the full value of the goods
exported: he could only reduce that
amount after enquiry contemplated by
clause 10 of the Scheme….”
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34. It could thus be seen that the issue that fell for
consideration in the case of M/s Indo-Afghan Agencies
Ltd. (supra) was with regard to an arbitrary reduction of
the claim of the writ petitioner contrary to the Export
Promotion Scheme. The issue as to whether the Legislature
by a subsequent enactment was entitled to withdraw the
benefit granted under the earlier scheme did not fall for
consideration in the said case.
35. This Court in the case of Century Spinning and
Manufacturing Company Ltd. and another vs. The
Ulhasnagar Municipal Council and another20 considered
the issue wherein the Municipality had agreed to exempt the
appellant therein from payment of octroi duty for 7 years
from the date of levy of octroi. However, thereafter, the
Municipality sought to levy octroi duty from the appellant
therein. This Court observed thus:
“12. If our nascent democracy is to
thrive different standards of conduct for
the people and the public bodies cannot
ordinarily be permitted. A public body is,
in our judgment, not exempt from
20 (1970) 1 SCC 582
29
Annexure B to Agenda 7 Volume I 50th GSTCM
liability to carry out its obligation arising
out of representations made by it relying
upon which a citizen has altered his
position to his prejudice.”
36. A Constitution Bench of this Court in the case of M.
Ramanatha Pillai vs. The State of Kerala and another
21
considered the question as to whether estoppel could arise
against a State in regard to abolition of posts. The
Constitution Bench observed thus:
“37. The High Court was correct in
holding that no estoppel could arise
against the State in regard to abolition of
post. The appellant Ramanatha Pillai
knew that the post was temporary.
In American Jurisprudence 2d at p. 783
para 123 it is stated “Generally, a state
is not subject to an estoppel to the same
extent as in an individual or a private
corporation. Otherwise, it might be
rendered helpless to assert its powers in
government. Therefore as a general
rule the doctrine of estoppel will not
be applied against the State in its
governmental, public or sovereign
capacity. An exception however arises
in the application of estoppel to the
State where it is necessary to prevent
fraud or manifest injustice”. The
estoppel alleged by the appellant
Ramanatha Pillai was on the ground that
21 (1973) 2 SCC 650
30
Annexure B to Agenda 7 Volume I 50th GSTCM
he entered into an agreement and
thereby changed his position to his
detriment. The High Court rightly held
that the Courts exclude the operation of
the doctrine of estoppel, when it is found
that the authority against whom estoppel
is pleaded has owed a duty to the public
against whom the estoppel cannot fairly
operate.”
[emphasis supplied]
37. It can thus clearly be seen that the Constitution Bench
has approved the statement in American Jurisprudence that
the doctrine of estoppel will not be applied against the State
in its governmental, public or sovereign capacity. An
exception to the application of the said doctrine to the State
would, however, arise where it is necessary to prevent fraud
or manifest injustice.
38. Another Constitution Bench of this Court in the case of
State of Kerala and another vs. The Gwalior Rayon
Silk Manufacturing (WVG). Co. Ltd. Etc.22 was
considering an issue as to the application of promissory
estoppel when a right to compensation for acquisition of
forest land as provided in the earlier statute was taken away
22 (1973) 2 SCC 713
31
Annexure B to Agenda 7 Volume I 50th GSTCM
by a subsequent statute. The Constitution Bench held
thus:
“38. In an attempt to show that the
impugned Act was a piece of colourable
legislation, reference was made to the
Karala Private Forests Acquisition Bill,
1968 LA Bill No. 33 of 1968 which
provided for the acquisition of private
forests on payment of compensation for
the acquisition. That Bill, it is
contended, was allowed to lapse and
the present Act was enacted with the
obvious intention of expropriating
vast forest lands without paying
compensation. We can hardly
countenance such an argument. The
question really is, in the first place, of
the competence of the legislature to pass
the impugned Act and, in the second,
whether the Act is constitutional in the
sense that it is protected by Section 31-
A(1). So far as the competence of the
legislature is concerned, no objection is
made before us. As to its
constitutionality we have shown that the
Act purports to vast the janman rights to
the forests in the Government as a step
in the implementation of agrarian
reform. If this could be
constitutionally done by the
legislature, the fact that at an
earlier stage the Government was
toying with the idea of paying
compensation to owners of private
forests is of little consequence. The
dominant purpose of the impugned Act,
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Annexure B to Agenda 7 Volume I 50th GSTCM
as already pointed out, is to distribute
forest lands for agricultural purposes
after making reservations of portions of
the forests for the benefit of the
agricultural community. The fear is
expressed that such a course if,
genuinely implemented, may lead to
deforestation on a large scale leading to
soil erosion and silting of rivers and
streams and will actually turn out to be
detrimental to the interests of the
agricultural community in the long run.
It is undoubtedly true that rackless
deforestation might lead to very unhappy
results. But we have no material before
us for expressing opinion on such a
matter. It is for the legislature to balance
the comparative advantages of a scheme
like the one envisaged in the Act against
the possible disadvantages of resulting
deforestation. There are many
imponderables to which we have no safe
guides. It is presumed that the
legislature knows the needs of its
people and will balance the present
advantages against possible future
disadvantages. If there is pressure on
land and the legislature feels that forest
lands in some areas can be conveniently
and, without much damage to the
community as a whole, utilized for
settling a large proportion of the
agricultural population, it is perfectly
open, under the constitutional powers
vested in the legislature, to make a
suitable law, and if the law is
constitutionally valid this Court can
hardly strike it down on the ground that
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Annexure B to Agenda 7 Volume I 50th GSTCM
in the long run the legislation instead of
turning out to be a boon will turn out to
be a curse.
39. Mr Menon who appeared for the
respondent in Civil Appeal No. 1398 of
1972 put forward a plea of equitable
estoppel peculiar to his client company.
It appears that the Company established
itself in Kerala for the production of
rayon cloth pulp on an understanding
that the Government would bind itself to
supply the raw-material. Later
Government was unable to supply the
material and by an agreement undertook
not to legislate for the acquisition of
private forests for a period of 60 years if
the Company purchased forest lands for
the purpose of its supply of rawmaterials. Accordingly, the Company
purchased 30,000 acres of private
forests from the Nilambhuri Kovila
Kannan estate for Rs 75 lakhs and,
therefore, it was argued that, so far
as the Company is concerned, the
agreement not to legislate should
operate as equitable estoppel against
the State. We do not see how an
agreement of the Government can
preclude legislation on the subject.
The High Court has rightly pointed
out that the surrender by the
Government of its legislative powers
to be used for public good cannot
avail the company or operate against
the Government as equitable
estoppel.”
[emphasis supplied]
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Annexure B to Agenda 7 Volume I 50th GSTCM
39. It could thus be seen that this Court held that it is
presumed that the legislature knows the needs of its people
and will balance the present advantages against possible
future disadvantages. It has been held that if a new
enactment is constitutionally enacted by the legislature,
then the fact that, at an earlier stage, the Government was
toying with the idea of paying compensation to owners of
private forests would be of no consequence. Undisputedly,
the GST enactment is an enactment validly enacted by the
Parliament. It was also sought to be urged that the
petitioner Company, on the basis of the agreement by the
State Government that it would not legislate to acquire the
forest land for 60 years, had purchased 30,000 acres of
private land. It was submitted therein that, applying the
doctrine of equitable estoppel, the Government was
estopped from enacting a legislation contrary to the
agreement. Negating the said contention, it was held that
when the legislature exercises its powers for the public
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Annexure B to Agenda 7 Volume I 50th GSTCM
good, the earlier representation would not operate against
the Government as equitable estoppel.
40. A four judge Bench of this Court in the case of Excise
Commissioner, U.P. Allahabad and others vs. Ram
Kumar and others23 had considered the issue wherein, at
the time of the auction, licenses sold by the Government to
vend country liquor exempted the levy of sales tax.
However, by a subsequent notification, the sale of country
liquor was subjected to the levy of sales tax. This Court
specifically rejected the contention that the State was
estopped from doing so. This Court relied on the earlier
Constitution Bench judgment in the cases of M.
Ramanatha Pillai (supra) and The Gwalior Rayon Silk
Manufacturing (WVG). Co. Ltd. Etc. (supra). It held that
an assurance given by or on behalf of the Crown by an
officer of a government, however high or low in the
hierarchy, could not bar the Crown from enforcing a
statutory prohibition. It reiterated the legal position that
23 (1976) 3 SCC 540
36
Annexure B to Agenda 7 Volume I 50th GSTCM
estoppel does not operate against the Government or its
assignee.
41. In the case of The Bihar Eastern Gangetic
Fishermen Co-operative Society Ltd. vs. Sipahi Singh
and others24, the State Government had directed that the
settlement of the Jalkar would continue with Sipahi Singh
for the years 1976-77 and 1977-78. However, on the
representation made by the Bihar Eastern Gangetic
Fishermen Co-operative Society Ltd., the State Government
directed that the settlement of the Jalkar would be with the
said Society for the relevant years on certain conditions.
Sipahi Singh filed a writ petition which was allowed by the
High Court relying on the doctrine of promissory estoppel.
A three-judge Bench of this Court, while reversing the
judgment of the High Court, observed thus:
“13. The doctrine of promissory
estoppel could also not be pressed into
service in the present case, as it is
well settled that there cannot be
any estoppel against the
Government in exercise of its
sovereign legislative and executive
24 (1977) 4 SCC 145
37
Annexure B to Agenda 7 Volume I 50th GSTCM
functions. (See Excise Commissioner,
U.P. Allahabad v. Ram Kumar [(1976) 3
SCC 540 : 1976 SCC (Tax) 360 : AIR
1976 SC 2237] ).”
[emphasis supplied]
42. It is thus clear that The Bihar Eastern Gangetic
Fishermen Co-operative Society Ltd. (supra) is also an
authority to hold that there cannot be any estoppel against
the Government in the exercise of its sovereign, legislative
and executive functions. In the said case, the judgment of
this Court in the case of M/s Indo-Afghan Agencies Ltd.
(supra) was pressed into service. Distinguishing the same,
this Court observed thus:
“14. The decision of this Court in Union
of India v. Indo-Afghan Agencies Ltd. [AIR
1968 SC 718 : (1968) 2 SCR 366 : (1968)
2 SCJ 889] on which strong reliance is
placed by Counsel for Respondent 1 is
clearly distinguishable. In that case,
unlike the present one, the respondents
were not seeking to enforce any
contractual right. They were merely
seeking to enforce compliance with the
obligation which was laid upon the
Textile Commissioner by the terms of the
Export Promotion Scheme providing for
grant (by way of incentives to exporters of
woollen textiles and goods) of Entitlement
Certificate to import raw materials of a
38
Annexure B to Agenda 7 Volume I 50th GSTCM
total amount equal to 100% of the f.o.b.
value of their exports. Their claim was
founded upon the equity which arose
in their favour as a result of the
representation made on behalf of the
Government in the aforesaid Scheme,
the exports of woollen goods made by
them to Afghanistan acting upon the
representation and curtailment of the
import entitlement by the Textile
Commissioner without notice to
them.”
[emphasis supplied]
43. Subsequently, a two Judge Bench of this Court in the
case of Motilal Padampat Sugar Mills Co. Ltd. vs. State
of Uttar Pradesh and others25 again considered the issue
of estoppel. In the said case, the State Government had
represented that an exemption from sales tax would be
granted to new industrial units. Based on the assurance of
the State Government, the appellant before this Court in the
said case had established its industrial unit. However,
subsequently, the Government decided to rescind the said
concession. Though this Court, in the facts of the said case,
held that the appellant therein, based on the promise made
by the respondent therein, had altered its position to its
25 (1979) 2 SCC 409
39
Annexure B to Agenda 7 Volume I 50th GSTCM
detriment and as such, the State could not resile from the
said promise, allowing the appeal observed thus:
“28. …… There can also be no
promissory estoppel against the
exercise of legislative power. The
Legislature can never be precluded
from exercising its legislative
function by resort to the doctrine of
promissory estoppel. Vide State of
Kerala v. Gwalior Rayon Silk
Manufacturing Co. Ltd. [(1973) 2 SCC
713, 730 (para 39) : (1974) 1 SCR 671,
688]”
[emphasis supplied]
44. Thereafter comes the judgment of this Court in the
case of M/s Jit Ram Shiv Kumar and others vs. State of
Haryana and others26. In the said case, the municipal
committee established a small mandi and decided that the
purchasers of the plots for sale in the mandi would not be
required to pay octroi duty on goods imported within the
said mandi. Subsequently, the municipal committee started
imposing octroi duty. Challenging the said act of the
municipal committee, a writ petition was filed before the
High Court. The High Court dismissed the said writ
26 (1981) 1 SCC 11
40
Annexure B to Agenda 7 Volume I 50th GSTCM
petition. The two-Judge Bench of this Court in the said
case, referring to judgments of courts of various other
jurisdictions as well as the judgments of this Court at an
earlier point of time, observed thus:
“40. The scope of the plea of doctrine of
promissory estoppel against the
Government may be summed up as
follows:
(1) The plea of promissory estoppel is
not available against the exercise of
the legislative functions of the State.
(2) The doctrine cannot be invoked for
preventing the Government from
discharging its functions under the law.
(3) When the officer of the Government
acts outside the scope of his authority,
the plea of promissory estoppel is not
available. The doctrine of ultra vires will
come into operation and the Government
cannot be held bound by the
unauthorised acts of its officers.
(4) When the officer acts within the scope
of his authority under a scheme and
enters into an agreement and makes a
representation and a person acting on
that representation puts himself in a
disadvantageous position, the Court is
entitled to require the officer to act
according to the scheme and the
agreement or representation. The officer
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Annexure B to Agenda 7 Volume I 50th GSTCM
cannot arbitrarily act on his mere whim
and ignore his promise on some
undefined and undisclosed grounds of
necessity or change the conditions to the
prejudice of the person who had acted
upon such representation and put
himself in a disadvantageous position.
(5) The officer would be justified in
changing the terms of the agreement to
the prejudice of the other party on
special considerations such as difficult
foreign exchange position or other
matters which have a bearing on general
interest of the State.”
[emphasis supplied]
45. It can thus clearly be seen that this Court held that
the plea of promissory estoppel would not be available
against the exercise of the legislative functions of the State.
Equally, it cannot be invoked for preventing the government
from discharging its functions under the law. The learned
judges of this Court in the case of M/s Jit Ram Shiv
Kumar and others (supra), holding that some of the
observations of this Court in the case of Motilal Padampat
Sugar Mills Co. Ltd. (supra) were not in tune with the
earlier judgments of larger Benches of this Court, observed
thus:
42
Annexure B to Agenda 7 Volume I 50th GSTCM
“45. We find ourselves unable to ignore
the three decisions of this Court, two by
Constitution Benches in M. Ramanatha
Pillai v. State of Kerala [(1973) 2 SCC 650
: 1973 SCC (L&S) 560 : AIR 1973 SC
2641 : (1974) 1 SCR 515] and State of
Kerala v. Gwalior Rayon Silk Mfg. (Wvg.)
Co. Ltd. [(1973) 2 SCC 713 : AIR 1973 SC
2734 : (1974) 1 SCR 671] and the third
by a Bench of four Judges of this Court
in Excise Commr., U.P., Allahabad v. Ram
Kumar [(1976) 3 SCC 540 : 1976 SCC
(Tax) 360 : 1976 Supp SCR 532] on the
ground that the observations are in the
nature of obiter dicta and that it cannot
be insisted as intending to have laid
down any proposition of law different
from that enunciated in the Indo-Afghan
Agencies case [AIR 1968 SC 718 : (1968)
2 SCR 366 : (1968) 2 SCJ 889] . It was
not necessary for this Court in the cases
referred to above to refer to Union of
India v. Indo-Afghan Agencies Ltd. [AIR
1968 SC 718 : (1968) 2 SCR 366 : (1968)
2 SCJ 889] for, if properly understood, it
only held that the authority cannot go
back on the agreement arbitrarily or on
its mere whim. We feel we are bound to
follow the decisions of the three Benches
of this Court which in our respectful
opinion have correctly stated the law. We
are also unable to read the case of the
House of Lords in Howell v. Falmouth
Boat Construction Co. Ltd. [1951 AC 837 :
(1951) 2 All ER 278 : (1951) 2 TLR 151]
as not having overruled the view of
Denning, J., and as not having
expressed its disapproval of the doctrine
43
Annexure B to Agenda 7 Volume I 50th GSTCM
of promissory estoppel against the
Crown nor overruled the view taken by
Denning, J. in Robertson v. Minister of
Pensions [(1949) 1 KB 227 : (1948) 2 All
ER 767 : 1949 LJR 323] that “the Crown
cannot escape the obligation under the
doctrine of promissory estoppel”.
46. We find ourselves unable to share
the view of the learned Judge that the
Constitution Bench of this Court
in Ramanatha Pillai case [(1973) 2 SCC
650 : 1973 SCC (L&S) 560 : AIR 1973 SC
2641 : (1974) 1 SCR 515] heavily relied
upon the quotation from the American
jurisprudence, para 123, p. 873 of Vol.
28. Again we feel to remark that
“unfortunately this quotation was
incomplete and had overlooked perhaps
inadvertently” is unjustified.
(emphasis supplied)”
46. This Court in the said case reiterated the legal position
thus:
“51. On a consideration of the
decisions of this Court it is clear that
there can be no promissory estoppel
against the exercise of legislative
power of the State. So also the doctrine
cannot be invoked for preventing the
Government from acting in discharge of
its duty under the law. The Government
would not be bound by the act of its
officers and agents who act beyond the
scope of their authority and a person
dealing with the agent of the Government
44
Annexure B to Agenda 7 Volume I 50th GSTCM
must be held to have notice of the
limitations of his authority. the Court
can enforce compliance by a public
authority of the obligation laid on him if
he arbitrarily or on his mere whim
ignores the promises made by him on
behalf of the Government. It would be
open to the authority to plead and prove
that there were special considerations
which necessitated his not being able to
comply with his obligations in public
interest.”
[emphasis supplied]
47. A three Judge Bench of this Court in the case of Union
of India and others vs. Godfrey Philips India Ltd.
27
commented on the correctness of the decision in the case of
M/s Jit Ram Shiv Kumar and others (supra) and
observed thus:
“13. Of course we must make it clear,
and that is also laid down in Motilal
Sugar Mills case [(1979) 2 SCC 409 :
1979 SCC (Tax) 144 : (1979) 2 SCR 641]
that there can be no promissory
estoppel against the Legislature in
the exercise of its legislative
functions nor can the Government or
public authority be debarred by
promissory estoppel from enforcing a
statutory prohibition. It is equally true
that promissory estoppel cannot be used
to compel the Government or a public
27 (1985) 4 SCC 369
45
Annexure B to Agenda 7 Volume I 50th GSTCM
authority to carry out a representation or
promise which is contrary to law or
which was outside the authority or,
power of the officer of the Government or
of the public authority to make. We may
also point out that the doctrine of
promissory estoppel being an equitable
doctrine, it must yield when the equity so
requires; if it can be shown by the
Government or public authority that
having regard to the facts as they have
transpired, it would be inequitable to
hold the Government or public authority
to the promise or representation made by
it, the Court would not raise an equity in
favour of the person to whom the
promise or representation is made and
enforce the promise or representation
against the Government or public
authority. The doctrine of promissory
estoppel would be displaced in such a
case, because on the facts, equity would
not require that the Government or
public authority should be held bound by
the promise or representation made by it.
This aspect has been dealt with fully
in Motilal Sugar Mills case [(1979) 2 SCC
409 : 1979 SCC (Tax) 144 : (1979) 2 SCR
641] and we find ourselves wholly in
agreement with what has been said in
that decision on this point.”
[emphasis supplied]
48. Within a short period, another three-judge Bench of
this Court in the case of Express Newspapers Pvt. Ltd.
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Annexure B to Agenda 7 Volume I 50th GSTCM
and others vs. Union of India and others28 referring to
the conflict between the case of Motilal Padampat Sugar
Mills Co. Ltd. and the case of M/s Jit Ram Shiv Kumar
and others (supra), observed thus:
“182. I am not oblivious that there was a
discordant note struck by Kailasam, J.
speaking for himself and Fazal Ali, J.
in Jit Ram Shiv Kumar v. State of
Haryana [(1981) 1 SCC 11 : AIR 1980 SC
1285 : (1980) 3 SCR 689] holding that
the doctrine of promissory estoppel
cannot be invoked for preventing the
Government from discharging its
functions under law. It is also not
applicable when the officer and the
Government act outside the scope of
their authority. The doctrine of ultra
vires will in that event come into
operation and the Government cannot be
held bound by the unauthorised acts of
its officers.
183. It is not necessary for purposes of
this judgment to resolve the apparent
conflict between the decision of
Bhagwati, J. in Motilal Padampat Sugar
Mills case [(1979) 2 SCR 641 : (1979) 2
SCC 409 : 1979 SCC (Tax) 144] as to the
applicability of the doctrine of estoppel
for preventing the Government from
discharging its functions under the law.
In public law, the most obvious
28 (1986) 1 SCC 133
47
Annexure B to Agenda 7 Volume I 50th GSTCM
limitation and doctrine of estoppel is that
it cannot be evoked so as to give an
overriding power which it does not in law
possess. In other words, no estoppel can
legitimate action which is ultra vires.
Another limitation is that the
principle of estoppel does not operate
at the level of Government policy.
Estoppels have however been allowed to
operate against public authority in minor
matters of formality where no question of
ultra vires arises: Wade: Administrative
Law, fifth edition, pp. 233-34.
184. The principles laid down
in Maritime Elec. Co. v. General Dairies
Ltd. [1937 AC 610 (PC)] and by Lord
Parker, C.J. in Southend-on-Sea
Corporation v. Hodgson (Wickford) Ltd. [(1
962) 1 QB 416] relied upon by learned
counsel appearing for Respondent 1 the
Union of India are clearly not attracted
in the facts and circumstances of the
present case. In the present case,
admittedly, the then Minister for Works
& Housing acted within the scope of his
authority in granting permission of the
lessor i.e. the Union of India, Ministry of
Works & Housing to the Express
Newspapers Pvt. Ltd. to construct new
Express Building with an increased FAR
of 360 with a double basement for
installation of a printing press for
publication of a Hindi newspaper under
the Rules of Business framed by the
President under Article 77(3). Therefore,
the doctrine of ultra vires does not come
into operation. In view of this
48
Annexure B to Agenda 7 Volume I 50th GSTCM
Respondent 1 the Union of India is
precluded by the doctrine of promissory
estoppel from questioning the authority
of the Minister in granting such
permission. In that view, the successor
Government was clearly bound by the
decision taken by the Minister
particularly when it had been acted
upon.”
[emphasis supplied]
49. The three-judge Bench of this Court in the case of
Express Newspapers Pvt. Ltd. and others (supra) held
that no estoppel can legitimize action which is ultra vires. It
was further held that another limitation is that the principle
of estoppel does not operate at the level of Government
policy. In the facts of the said case, this Court held that the
doctrine of ultra vires did not come into operation in the
said case. It held that, in view of the permission granted by
the then Minister for Works & Housing, the respondentUnion of India was precluded from questioning the validity
thereof. The successor Government was bound by the
decision taken by the Minister, particularly when it had
been acted upon.
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Annexure B to Agenda 7 Volume I 50th GSTCM
50. It could thus be seen that there is some discord in the
judgments of this Court in the cases of Motilal Padampat
Sugar Mills Co. Ltd. (supra) and Godfrey Philips India
Ltd. (supra) on one hand and in the case of M/s Jit Ram
Shiv Kumar and others (supra) on the other hand.
51. This Court in the case of Motilal Padampat Sugar
Mills Co. Ltd. (supra) holds that, if on the basis of a
promise made by a government, an entity changes its legal
position to its detriment, the State could not be permitted to
resile from the said promise. It is to be noted that the said
judgment is authored by Bhagwati, J. and the Bench
strength is of two learned judges.
52. Within a period of two years, Kailasam, J. in the case
of M/s Jit Ram Shiv Kumar and others (supra) found
fault with some of the observations made in the case of
Motilal Padampat Sugar Mills Co. Ltd. (supra) and held
that the observations made in Motilal Padampat Sugar
Mills Co. Ltd. (supra) were not in tune with the judgments
of Constitution Benches in the cases M. Ramanatha Pillai
50
Annexure B to Agenda 7 Volume I 50th GSTCM
(supra) and The Gwalior Rayon Silk Manufacturing
(WVG). Co. Ltd. Etc. (supra); and the judgment of a fourJudge Bench of this Court in the case of Ram Kumar and
others (supra).
53. The judgment of this Court in the case of M/s Jit Ram
Shiv Kumar and others (supra) again fell for consideration
before a three-judge Bench of this Court in the case of
Godfrey Philips India Ltd. (supra), which is again
authored by Bhagwati, J. In the case of Godfrey Philips
India Ltd. (supra), the judgment of the learned three-Judge
Bench delivered through Bhagwati, J. holds that what has
been held by learned two judges in the case of Motilal
Padampat Sugar Mills Co. Ltd. has been correctly held so
and endorses the said judgment. The said judgment also
criticizes the view taken in M/s Jit Ram Shiv Kumar and
others (supra). Within a short period, the issue again
comes up for consideration before another three-judge
Bench in the case of Express Newspapers Pvt. Ltd. and
others (supra). A.P. Sen, J. speaking for the three-judge
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Annexure B to Agenda 7 Volume I 50th GSTCM
Bench notes the conflict between the view taken by
Bhagwati, J. in Motilal Padampat Sugar Mills Co. Ltd.
(supra) and Kailasam, J in the case of M/s Jit Ram Shiv
Kumar and others (supra). It appears that since the
judgment was delivered within a fortnight from the date on
which Godfrey Philips India Ltd. (supra) was decided, this
Court in the case of Express Newspapers Pvt. Ltd. and
others (supra) did not notice the judgment in the case of
Godfrey Philips India Ltd. (supra). However, A.P. Sen, J
in Express Newspapers Pvt. Ltd. and others (supra) held
that it was not necessary for the purposes of the said
judgment to resolve the conflict between the decision of
Bhagwati, J. in the case of Motilal Padampat Sugar Mills
Co. Ltd. (supra) and Kailasam, J. in the case of M/s Jit
Ram Shiv Kumar and others (supra). It held that one of
the limitations on the principle of estoppel is that it does not
operate at the level of Government policy.
54. However, a common thread in all these judgments that
could be noticed is that all these judgments consistently
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Annexure B to Agenda 7 Volume I 50th GSTCM
hold that there can be no estoppel against the legislature in
the exercise of its legislative functions. The Constitution
Bench in the case of M. Ramanatha Pillai (supra) has
approved the view in American Jurisprudence that the
doctrine of estoppel will not be applied against the State in
its governmental, public or sovereign capacity. It further
held that the only exception with regard to applicability of
the doctrine of estoppel is where it is necessary to prevent
fraud or manifest injustice. The analysis of all the
judgments of this Court on the issue would reveal that it is
a consistent view of this Court, reiterated again in Godfrey
Philips India Ltd. (supra), that there can be no promissory
estoppel against the legislature in the exercise of its
legislative functions.
55. Undisputedly, the Notification dated 18th July 2017
withdrawing the exemption notifications was issued in
pursuance of the statutory mandate as provided under
Section 174(2)(c) of the CGST Act. If the contention as
raised by the appellants is to be accepted, it would make the
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Annexure B to Agenda 7 Volume I 50th GSTCM
provisions under the proviso to Section 174(2)(c) of the
CGST Act redundant and otiose. The legislature in its
wisdom has specifically incorporated the proviso to Section
174(2)(c) providing therein that any tax exemption granted
as an incentive against investment through a notification
shall not continue as privilege if the said notification is
rescinded. If the contention is accepted, it will amount to
enforcing a representation made in the said O.M. of 2003
and 2003 Notification contrary to the legislative
incorporation in the proviso to Section 174(2)(c) of the CGST
Act. In other words, it will permit an estoppel to be
operated against the legislative functions of the Parliament.
We are, therefore, of the considered view that the claim of
the appellants on estoppel is without merit and deserves to
be rejected.
56. It is further to be noted that this Court has also
consistently held that when an exemption granted earlier is
withdrawn by a subsequent notification based on a change
in policy, even in such cases, the doctrine of promissory
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estoppel could not be invoked. It has been consistently held
that where the change of policy is in the larger public
interest, the State cannot be prevented from withdrawing an
incentive which it had granted through an earlier
notification. Reliance in this respect could be placed on the
judgments of this Court in the cases of Kasinka Trading
and another vs. Union of India and another29, Shrijee
Sales Corpn. vs. Union of India30, State of Rajasthan vs.
Mahaveer Oil Industries31, Shree Sidhbali Steels Ltd.
vs. State of U.P.32
, and Director General of Foreign
Trade vs. Kanak Exports33
57. Recently, this Court, in the case of Unicorn
Industries (supra), after surveying the earlier judgments of
this Court on the issue has observed thus:
“26. It could thus be seen that, it is
more than well settled that the
exemption granted, even when the
notification granting exemption
prescribes a particular period till which
it is available, can be withdrawn by the
29 (1995) 1 SCC 274
30 (1997) 3 SCC 398
31 (1999) 4 SCC 357
32 (2011) 3 SCC 193
33 (2016) 2 SCC 226
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Annexure B to Agenda 7 Volume I 50th GSTCM
State, if it is found that such a
withdrawal is in the public interest. In
such a case, the larger public interest
would outweigh the individual interest,
if any. In such a case, even the doctrine
of promissory estoppel would not come
to the rescue of the persons claiming
exemptions and compel the State not to
resile from its promise, if the act of the
State is found to be in public interest to
do so.”
58. We are, therefore, of the considered view that even on
the ground of change of policy, which is in public interest or
in view of the change in the statutory regime itself on
account of the GST Act being introduced as in the instant
case, it will not be correct to hold the Union bound by the
representation made by it, i.e. by the said O.M. of 2003.
Further, this would be contrary to the statutory provisions
as enacted under Section 174(2)(c) of the CGST Act.
59. There is another reason which, in our view, could
disentitle the relief as was claimed by the appellants before
the High Courts. The appellants, in effect, are seeking a
writ of mandamus against the Union of India to reimburse
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100% of CGST for the remainder of the period instead of
only 58%.
60. This Court in the case of The Bihar Eastern
Gangetic Fishermen Co-operative Society Ltd. (supra)
had an occasion to consider when a writ of mandamus
could be issued. This Court held that:
“15. …..There is abundant authority in
favour of the proposition that a writ of
mandamus can be granted only in a case
where there is a statutory duty imposed
upon the officer concerned and there is a
failure on the part of that officer to
discharge the statutory obligation. The
chief function of a writ is to compel
performance of public duties prescribed
by statute and to keep subordinate
tribunals and officers exercising public
functions within the limit of their
jurisdiction. It follows, therefore, that
in order that mandamus may issue to
compel the authorities to do
something, it must be shown that
there is a statute which imposes a
legal duty and the aggrieved party
has a legal right under the statute to
enforce its performance. (See Lekhraj
Satramdas Lalvani v. Deputy Custodiancum-Managing Officer [AIR 1966 SC 334 :
(1966) 1 SCR 120 : (1966) 1 SCJ 24] , Rai
Shivendra Bahadur Dr v. Governing Body
of the Nalanda College [AIR 1962 SC
1210 : 1962 Supp 2 SCR 144 : (1962) 1
57
Annexure B to Agenda 7 Volume I 50th GSTCM
LLJ 247] and Umakant Saran Dr v. State
of Bihar [(1973) 1 SCC 485 : AIR 1973 SC
964] ). In the instant case, it has not
been shown by Respondent 1 that there
is any statute or rule having the force of
law which casts a duty on Respondents 2
to 4 which they failed to perform. All that
is sought to be enforced is an obligation
flowing from a contract which, as already
indicated, is also not binding and
enforceable. Accordingly, we are clearly of
the opinion that Respondent 1 was not
entitled to apply for grant of a writ of
mandamus under Article 226 of the
Constitution and the High Court was not
competent to issue the same.”
[emphasis supplied]
61. It can thus be seen that unless the appellants show
any statutory duty cast upon the respondent-Union of India
to grant them 100% refund, a writ of mandamus as sought
could not be issued. The position is reiterated by this Court
in the case of K.S. Jagannathan and another (supra) as
under:
“20. There is thus no doubt that the High
Courts in India exercising their
jurisdiction under Article 226 have the
power to issue a writ of mandamus or a
writ in the nature of mandamus or to
pass orders and give necessary directions
where the government or a public
authority has failed to exercise or has
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Annexure B to Agenda 7 Volume I 50th GSTCM
wrongly exercised the discretion
conferred upon it by a statute or a rule or
a policy decision of the government or
has exercised such discretion mala fide
or on irrelevant considerations or by
ignoring the relevant considerations and
materials or in such a manner as to
frustrate the object of conferring such
discretion or the policy for implementing
which such discretion has been
conferred. In all such cases and in any
other fit and proper case a High Court
can, in the exercise of its jurisdiction
under Article 226, issue a writ of
mandamus or a writ in the nature of
mandamus or pass orders and give
directions to compel the performance in a
proper and lawful manner of the
discretion conferred upon the
government or a public authority, and in
a proper case, in order to prevent
injustice resulting to the concerned
parties, the court may itself pass an
order or give directions which the
government or the public authority
should have passed or given had it
properly and lawfully exercised its
discretion.”
62. It could thus be seen that this Court holds that a writ
of mandamus can be issued where the Authority has failed
to exercise the discretion vested in it or has exercised such
a discretion malafidely or on an irrelevant consideration.
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63. This position was again reiterated by this Court
recently in the case of Bharat Forge Ltd. (supra) as
follows:
“18. Therefore, it is clear that a Writ of
Mandamus or a direction, in the nature
of a Writ of Mandamus, is not to be
withheld, in the exercise of powers of
Article 226 on any technicalities. This is
subject only to the indispensable
requirements being fulfilled. There
must be a public duty. While the duty
may, indeed, arise form a Statute
ordinarily, the duty can be imposed
by common charter, common law,
custom or even contract. The fact
that a duty may have to be
unravelled and the mist around it
cleared before its shape is unfolded
may not relieve the Court of its duty
to cull out a public 25 duty in a
Statute or otherwise, if in substance,
it exists. Equally, Mandamus would lie
if the Authority, which had a discretion,
fails to exercise it and prefers to act
under dictation of another Authority. A
Writ of Mandamus or a direction in the
nature thereof had been given a very
wide scope in the conditions prevailing in
this country and it is to be issued
wherever there is a public duty and there
is a failure to perform and the courts will
not be bound by technicalities and its
chief concern should be to reach justice
to the wronged. We are not dilating on or
diluting other requirements, which
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would ordinarily include the need for
making a demand unless a demand is
found to be futile in circumstances,
which have already been catalogued in
the earlier decisions of this Court.”
[emphasis supplied]
64. Undoubtedly, in the present case, there is no duty cast
on the Union to refund 100% of CGST. As such, we find
that the relief as sought cannot be granted.
65. That leaves us with the judgments cited by Shri S.
Ganesh and Shri V. Sridharan, learned Senior Counsel.
66. Insofar as the judgment of this Court in the case of
Suprabhat Steel Ltd. (supra) is concerned, the question
that arose for consideration was whether the Notification
issued under Section 7 of the Bihar Finance Act by the
State Government to carry out the objectives and the policy
decisions taken in the industrial policy could be held to be
bad in law if it is in contravention of the industrial policy. In
the case of Tata Cummins Ltd. (supra), the question that
fell for consideration was whether a Notification that was
issued for implementation of the industrial policy of the
State could be construed strictly or liberally. In the case of
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Lloyd Electric and Engineering Limited (supra), the
question was, as to whether the delay on the part of the
Excise and Taxation Department in issuing Notification
pursuant to the decision taken by the Council of Ministers
could deny the benefit of Notification to the entities which
were entitled thereto.
67. Insofar as the judgment of this Court in the case of
MRF Ltd., Kottayam (supra) is concerned, this Court, in
the facts of the said case, specifically came to a finding that
the decision to deprive MRF of the benefit of exemption for
more than 5 years out of a total period of 7 years was highly
arbitrary, unjust and unreasonable. In the case of
Manuelsons Hotels Private Limited (supra), perusal of the
impugned judgment therein would reveal that the provision
on which Manuelsons Hotels Private Limited was claiming
benefit under was deleted with effect from the 1st of March
1993. This Court, therefore, made it clear that the benefit
would only be available during the period when the said
statutory provision existed in the statute book, i.e., from 6
th
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November 1990 to 1st March 1993. This Court, therefore,
clearly rejected the claim of benefit from the date on which
the statutory provision was deleted from the statute book.
68. In the case of Nestle India Ltd. (supra), the
respondent milk producers did not pay the purchase tax for
the period between 1st April 1996 and 4th June 1997 since
the Government had decided to abolish purchase tax for the
said period. For the rest of the period, the tax was paid.
The State had attempted to recover the purchase tax
retrospectively for the aforesaid period. In this background,
the claim of the respondents therein before this Court was
found to be meritorious.
69. Insofar as the reliance placed by Shri V. Sridharan,
learned Senior Counsel, on the judgment of this Court in
the case of Video Electronics Pvt. Ltd. (supra) is
concerned, the question was as to whether the State was
empowered to grant sales tax exemption to a class of goods.
It was held that the classification was permissible, provided
that it was not vitiated by colourable exercise of power or
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abuse. As such, the said judgment would not be applicable
to the facts of the present case.
70. It could thus be seen that in none of the aforesaid
cases, the issue as to whether, on account of change in the
law, the State was bound to stand by its representation
made under the earlier law even when the change in law
does not permit it to do so, fell for consideration. As against
this, this Court, in a catena of judgments, including two
Constitution Bench judgments, a four-Judge Bench
judgment and various judgments of learned three judges,
have consistently held that promissory estoppel would not
apply against the exercise of legislative powers of the State.
As such, none of the judgments cited, in our view, would be
of any assistance to the cases of the appellants.
71. Insofar as the contention of Shri S. Ganesh, learned
Senior Counsel, that the Union should have issued
exemption notification as provided under Section 11 of the
CGST Act is concerned, we find that under the said
provision, a discretion is vested in the Central Government,
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which is to be exercised on the recommendations of the GST
Council. A writ of mandamus cannot be issued to the
Central Government to exercise power under Section 11 of
the CGST Act in a particular manner. In any case, it is a
matter of policy which has to be determined by the
Union/State while taking a decision as to whether it should
grant exemption from payment of CGST or make a
budgetary allocation for refund of the tax paid. In any case,
such power can be exercised by the Central Government
only on the recommendations of the GST Council. As
already discussed herein above, the Central Government
was not bound to continue with a representation made by it
in 2003 in view of the change of law by the enactment of the
CGST Act. However, in order to partly honour the
representation made by it, it has decided to refund 58% of
the CGST paid by the entities. It is more than settled that
this Court cannot interfere in policy matters of the
Government unless such policy is found to be palpably
arbitrary and irrational. In that view of the matter, we do
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not find that the claim made on the basis of Section 11 of
the CGST Act is of any substance.
72. Though we have held that the appellants’ claim based
on promissory estoppel is without substance, we find that
this is not a case wherein it can be said that the appellants’
claim is wholly without any substance.
73. The appellants have established their industrial units
based on the industrial policy as reflected in the said O.M.
of 2003. The policy of the year 2003, in question, was
based on the statement made by the Hon’ble Prime Minister
during his visit to Uttarakhand. As such, the policy was
framed to bring into effect the statement made by the
highest executive functionary of the country. Relying on the
said policy, the appellants have established their units.
Though the appellants may not have a claim in law, we find
that they do have a legitimate expectation that their claim
deserves due consideration.
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74. It will be relevant to refer to the minutes of the meeting
of the GST Council dated 30th September 2016, which read
thus:
“25. The Secretary to the Council
explained that the Central and State
governments had given various
incentives of Central Excise and Value
Added Tax (VAT) and Central Sales Tax
(CST). He pointed out that in the GST
regime, such incentives could not be
continued as supplies would need to be
made on payment of tax in order to
permit flow of tax to the destination
state. Therefore, a decision would need
to be arrived at regarding the treatment
of such tax incentive schemes under the
GST regime. He observed that one
option could be to ‘grandfather’ such
schemes and provide for a budgetary
apportionment in the State and the
Central budgets for reimbursing the tax
paid to those units which enjoyed tax
exemption up to a specified period.
However, while ‘grandfathering’ any such
scheme, it would need to be kept in mind
that unlike VAT and the CST which
were origin-based taxes, GST was a
destination-based tax and an
unconditional reimbursement scheme
could lead to double outflow for the
origin-state – one by way of transfer of
tax to the destination State and the other
by way of reimbursement to the supplier.
Therefore, the States would need to be
careful while devising any
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reimbursement scheme and care could
be taken that such reimbursement was
limited for supplies made within the
State.
26. The Hon’ble Deputy Chief
Minister of Gujarat alluded to examine
possible legal complications. The
Secretary to the Council pointed out that
the agenda note contained certain
judgments of the Hon’ble Supreme Court
as per which the principle of promissory
estoppel would not apply in a case where
there was a supervening public equity.”
75. It could thus be seen that the GST Council has noticed
that the Central and State Governments had given various
incentives of Central Excise and Value Added Tax (VAT) and
Central Sales Tax (CST) so as to encourage investment in
those States. It also took notice of the fact that such
incentives could not be continued as supplies would need to
be made on payment of tax to permit flow of tax to the
destination state. The solution that was suggested was to
provide for budgetary apportionment in the State and the
Central budgets for reimbursing the tax paid to those units
which enjoyed tax exemption up to a specified period.
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Annexure B to Agenda 7 Volume I 50th GSTCM
76. It will be further relevant to note the concerns
expressed by the State of Uttarakhand and the State of
Jammu & Kashmir in the said meeting, which are as under:
“28. The Hon’ble Minister from
Uttarakhand stated that the Government
of India had given an area-based
exemption for 10 years and that such
exemptions were to continue upto 2020.
She observed that the Centre must
reimburse such units for the Central
taxes as jobs of more than one lakh
workers were at stake. The Hon’ble
Minister from Jammu and Kashmir
stated that his State was in a similar
situation as Uttarakhand. The
Chairperson observed that once
incentive schemes were withdrawn, the
taxes paid would be accounted for in the
Consolidated Fund of India and 42% of
the amount would be devolved to the
States. The Centre, therefore, could be
expected to only reimburse the units out
of the remaining 58% of the fund which
was not part of the devolution and the
States would also need to
correspondingly reimburse such units
out of the share of revenue received
through devolution.”
77. It can thus be seen that the Hon’ble Minister from
Uttarakhand had stated that the Government of India had
given an area-based exemption for 10 years and that such
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exemptions were to continue up to 2020. She was of the
view that the Centre must reimburse such units for the
Central taxes as jobs of more than one lakh workers were at
stake. The Hon’ble Minister from Jammu & Kashmir had
also supported the view of the Hon’ble Minister from
Uttarakhand. However, the Chairperson of the GST
Council, i.e. the Hon’ble Finance Minister of the Union of
India, stated that the Centre would only reimburse the units
to the extent of 58%. He also expressed that the State
would also need to correspondingly reimburse such units
out of the share of revenue received through devolution.
Accordingly, the following resolution was passed in the said
meeting by the GST Council:
“29. The Council approved the
following-
(i) All entities exempted from
payment of indirect tax under any
existing tax incentive scheme shall pay
tax in the GST regime.
(ii) The decision to continue with any
incentive given to specific industries in
existing industrial policies of States or
through any schemes of the Central
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Annexure B to Agenda 7 Volume I 50th GSTCM
Government, shall be with the concerned
State or Central Government.
(iii) In case the State or Central
Government decides to continue any
existing exemption/incentive/deferral
scheme, then it shall be administered by
way of a reimbursement mechanism
through the budgetary route, the
modalities for which shall be worked out
by the concerned State/Centre.”
78. We, therefore, find that in the deliberations of the GST
Council itself, it was observed that the States also need to
correspondingly reimburse the industrial units which were
entitled to exemption under any existing incentive scheme,
out of the share of revenue received through devolution,
which, as per the Finance Commission, stands at 42%. As
a matter of fact, the State of Jammu & Kashmir has issued
a notification dated 21st December 2017 thereby resolving to
reimburse the remaining 42% of the CGST of the Union.
This is limited until the period the Union Scheme is valid.
79. It is further to be noted that the GST Council is a
constitutional body. It has powers to make
recommendations on wide-ranging issues concerning GST,
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Annexure B to Agenda 7 Volume I 50th GSTCM
including grant of exemptions from the GST. It also has
power to make recommendations with regard to special
provisions governing North Eastern and Himalayan States.
Taking into consideration that the units like the appellants
have been established in the Himalayan and North-Eastern
States based on the said O.M. of 2003 and that lakhs of
persons are employed in such industries, we are of the view
that it will be appropriate that such States should also
consider to correspondingly reimburse such units out of the
share of revenue received by them through devolution from
the Central Government. We further find that it will also be
appropriate that the GST Council considers making
appropriate recommendations to the States in that regard.
80. We, therefore, permit the appellants to make
representations to the respective State Governments as well
as to the GST Council. We also request the State
Governments and the GST Council to consider such
representations, if made, in accordance with what has been
observed herein above in an expeditious manner.
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81. In the result, the appeals are dismissed, save and
except the observations made in paragraphs 72 to 80
hereinabove.
82. Pending applications, if any, shall stand disposed of.
83. In the facts and circumstances of the case, there shall
be no order as to costs.
..............................J.
[B.R. GAVAI]
.............................J.
[ B.V. NAGARATHNA]
NEW DELHI;
OCTOBER 17, 2022
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Annexure B to Agenda 7 Volume I 50th GSTCM
S.No. State No. of Benches
proposed
Location of Benches
proposed
1 Andhra Pradesh 3 Vijayawada,
Visakhapatnam, Tirupati
2 Arunachal Pradesh Common Bench
with Guwahati,
Guwahati
3 Assam 1 Guwahati
4 Bihar 1 Patna
5 Chhattisgarh 2 Raipur,
Bilaspur
6 Delhi 2 Delhi
7 Goa 1 Panaji
8 Gujarat 3 Ahmedabad,
Surat,
Rajkot
9 Haryana 2 Gurugram
Hisar
10 Himachal Pradesh 1 Shimla
11 Jammu and Kashmir 1 Jammu & Srinagar on
rotational basis
12 Jharkhand 1 Ranchi
13 Karnataka 3 All three in Bengaluru
14 Kerala 3 Thiruvananthapuram,
Ernakulam,
Kozhikode
15 Madhya Pradesh 1 Bhopal
16 Maharashtra 7 Mumbai-2, Thane-1, Pune-2,
Nagpur-1 and Aurangabad
(Chhatrapati Sambhajinagar)-
17 Manipur Common Bench
with Guwahati,
Assam
Guwahati
18 Meghalaya Common Bench
with Guwahati,
Guwahati
19 Mizoram 1 Aizawl
20 Nagaland
21 Odisha 1 Cuttuck
23 Punjab 1 Chandigarh/Mohali
22 Puducherry 1 Puducherry
24 Rajasthan
25 Sikkim Common Bench
with Kolkata
Kolkata
26 Tamil Nadu
27 Telangana 2 Both at Hyderabad
28 Tripura 1 Agartala
30 Uttarakhand 1 Dehradun
29 Uttar Pradesh 5 Lucknow , Varanasi,
Ghaziabad, Agra and
31 West Bengal 2 Both at Kolkata
Annexure A*
*Letters received from States/UTs
Part of Annexur A Agenda for 50th GSTCM Volume II
Part of Annexur A Agenda for 50th GSTCM Volume II
GOVERNMENT OF ANDHRA PRADESH
COMMERCIAL TAXES DEPARTMENT
From To
Sri. M.Girija Sankar, I.A.S., The Additional Secretary,
Chief Commissioner of State Tax, GST Council Secretariat,
Andhra Pradesh. 5th Floor, Jeevan Bharti Building,
Janpath Road, Connaught Place,
New Delhi.
CCT's Ref.No.Computer No. 2073931 File No. REV03-12039(31)/41/2023-
COMM- 26/05/2023
Sir,
Sub: APGST Act,2017 – Finance Act,2023 - Constitution of GST Appellate Tribunal
– Implementation of instructions - Status report – Called for – Submitted –
Regarding.
Ref: 1) Letter from Director, GST Council Secretariat, through mail,
dated: 18th April,2023.
2) Government of India, Extraordinary Gazette No.2744,
dated:21st August,2019.
3) Note approval in File No. REV03-12039(31)/41/2023, dt. 24.03.2023
***
I invite your attention to the subject and references cited, wherein, the GST
Council Secretariat, Department of Revenue, Ministry of Finance, Government of India,
vide in the reference 1st cited, addressed all the Chief Secretaries/ Advisor of States and
Union Territories, with a request to carry out necessary amendments in the Goods &
Services Tax Act of respective states expeditiously to enable the benches of GST
Appellate Tribunal functional as early as possible.
Accordingly, as both the Houses of the State Legislature are not in session, a
draft Ordinance is sent to Government to efect amendment to the relevant provisions of
the Andhra Pradesh Goods and Services Tax Act, 2017 (Andhra Pradesh Act 16 of 2017)
and for matters connected therewith or incidental thereto.
In this connection, it is to submit that, the Central Government on 21st August,
2019, notifed the creation of one State bench at Vijayawada and two Area benches at
Visakhapatnam and Tirupati in Andhra Pradesh, and published in the Gazette of India,
Extra-Ordinary No.2744, dated: 21st August, 2019.
In this regard, I wish to state that the State of AP has vast geographical area,
spread over like a long strip along the East Coast, of about 1000 Km length from North to
File No.REV03-12039(31)/41/2023-COMM
Part of Annexur A Agenda for 50th GSTCM Volume II
South. Further, socio-culturally State has 3 (three) distinct regions called North Coastal
Region with Visakhapatnam industrial hub and port city as the epicenter, Central-coastal
region with Vijayawada city as the trading hub and Rayalaseema region, Tirupati city as
the main industrial hub. Thus, the regions are clustered around three cities viz
Visakhapatnam, Vijayawada and Tirupati. Further, the trade & commerce, and service
sector is very much growing in these regions. The State has 4.25 lakh registrants under
GST Act. Hence, due to long distances from one region to another and large number of
GST registrations, there is a great need for establishing 3 (three) State benches to cater
to the three regions and render speedy justice. Therefore, I request the GST Council to
notify 3 (three) State benches.

The State of Andhra Pradesh requests the GST council to continue the GST
appellate Tribunal Benches in the State of Andhra Pradesh as already notifed, and
requests to amend the notifcation dated 21st August,2019, re-designating the two ‘Area
Bench’s as ‘State Benches’ at Visakhapatnam and Tirupathi in the light of amendment
made to Section.109 of APGST Act,2017, by notifying total Three State Benches at
Vijayawada, Visakhapatnam and Tirupati.
M Girija Shankar I A S
Chief Commissioner

File No.REV03-12039(31)/41/2023-COMM
Part of Annexur A Agenda for 50th GSTCM Volume II
Jurisdiction of GSTAT Benches Proposed in Andhra Pradesh
Sl.No GSTAT Bench Tax Divisions Jurisdictional Area (Districts)
1. Visakhapatnam
1) Vizianagaram,
2) Visakhapatnam-1,
3) Visakhapatnam-2
4) Rajamahendravaram
5) Kakinada
1) Srikakulam,
2) Vizianagaram,
3) Manyam,
4) Alluri Sitharama Raju,
5) Visakhapatnam
6) Anakapalli
7) Kakinada,
8) Dr. B. R. Ambedkar
Konaseema and
9) East Godavari
2. Vijayawada
1) Eluru
2) Vijayawada -1
3) Vijayawada-2
4) Vijayawada-3
5) Guntur-1
6) Guntur-2
10)West Godavari,
11)Eluru,
12) Krishna,
13)NTR,
14)Guntur,
15)Palnadu and
16)Bapatla
3. Tirupati
1) Nellore
2) Chittoor
3) Kadapa
4) Kurnool
5) Anantapuramu
17)Prakasam,
18)Sri Potti Sriramulu Nellore,
19) Kurnool,
20)Nandyal,
21)Anantapuramu,
22)Sri Sathya Sai,
23) YSR Kadapa,
24)Annamayya,
25) Tirupati and
26)Chittoor
Part of Annexur A Agenda for 50th GSTCM Volume II
I/143122/2023
File No. T-E-18012/4/2023-O/o Comm-TAX&EX (Computer No. 133437)
Generated from eOffice by TAPAS DUTTA, T&E-Dy. Comm.(TD), DEPUTY COMMISSIONER, TAX&EX on 30/06/2023 06:20 PM
1
Part of Annexur A Agenda for 50th GSTCM Volume II
GOVERNMENT OF ASSAM
FINANCE (TAXATION) DEPARTMENT
JANATA BHAWAN, DISPUR, GUWAHATI-6
eCF No.306050/423 Dated Dispur, the June, 2023
From : Sri Jayant Narlikar, IAS.,
Commissioner & Secretary to the Government of Assam,
Finance (Taxation) Department.
To : The Secretary, GST Council,
Office of the GST Council Secretariat,
5th Floor, Tower-II, Jeevan Bharti Building,
Connaught Circus,
New Delhi-110001
Sub : Constitution of Goods and Service Tax Appellate Tribunal- reg
Ref : D.O.F No.224/GOM-GSTAT/GSTC/2022/8960 dated
06.04.2023.
Sir,
With reference to the subject cited above, I am to inform you
that Government has decided to set up a single bench of Goods and
Service Tax Appellate Tribunal (GSTAT) in the State of Assam. Further,
such State Bench will be located in Guwahati.
Yours faithfully,
Commissioner & Secretary to the Government of Assam,
Finance (Taxation) Department
Memo eCF No.306050/423-A Dated Dispur, the June, 2023
Copy to :
1. The Principal Commissioner of State Tax, Assam, Kar Bhawan,
Dispur, Guwahati-6 for information.
2. The Secretary, Coordination to Chief Secretary, Assam w.r.t. eCR
No.1180767.
By orders etc.,
Joint Secretary to the Government of Assam,
Finance (Taxation) Department
FD-20011/24/2017-TAX-FIN-Finance-Part(1)
I/200973/2023
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From : neelam nangio <gstcell.po-dtt@delhi.gov.in>
Subject : Requirement of State Benches at Delhi reg:-
To : GST Council Secretariat <gstc.secretariat@gov.in>
Cc : akumarsctt@gmail.com
Email GST Council Secretariat
Requirement of State Benches at Delhi reg:-
Wed, Jun 28, 2023 05:26 PM
49th GSTCM
Sir / Madam,
Refernce telephonic call received from GST Council Secretariat.
Tentatively for Delhi State, Two State Benches are required to be constituted for GSTAT.
However, actual number shall be confirmed and communicated once the DGST (Second
Amendment) Bill, 2023 is passed by Delhi Legislative Assembly.
Regards
O/o Assistant Commissioner
Policy Branch, Trade and Taxes, GNCTD.
Part of Annexur A Agenda for 50th GSTCM Volume II
*
&
GOVERNMENT OF GOA
OFFICE OF THE COMMISSIONER OF COMMERCIAL TAXES
2nd Floor, Goa Rajya Kar Bhavan, Old IPHB Complex,
Near o/o Chief Electoral officer, Altinho, panaji Goa pin code 403001
Tel: 0832-2229225
Email : gst-ctax.goa@gov. in
Fax :0832 -2225032
Website : www. goacomtax. gov. in
ccT I 2 6 -r0/G S TAT I 2023 -2 4 t Dated: 13th June,2023
Pankaj Kumar Singh
The Additional Secretary,
GST Council Secretariat,
5tr' floor, Tower I[, Jeevan Bharati Building,
Connaught Circus, Janpath,
NewDelhi -110001
Sub.: Constitution of GSTAT - reg.
Ref.: D.O.F. No. 2241GOM-GSTAT/GSTC /202218954 dated 06t04t2023
addressed to Chief Secretary, Goa.
Sir,
With reference to the subject cited and letter referred above, I am directed
to inform as under.
With regards to amendments in Goa Goods and Services Tax Act,2Ol7
(Goa Act 4 of 2017) ("Goa GST Act") corresponding to amendments made in
Central Goods and Services Tax Act, 2017 carried through Finance Act, 2023
(Act 8 of 2023), kindly note that same will be carried out by promulgating an
Ordinance to enforce the amendment to the Goa GST Act, as the Legislative
Assembly of Goa is not in session. Subsequently, a Bill will be introduced in the
[,:r f,i:, P+Y*,
-'*!r.,{!$, - -
. a'is#i" r%'{ "^o'/
Part of Annexur A Agenda for 50th GSTCM Volume II
i
6G
next Assembly session to replace the Ordinance. Proposal for the same is already
submitted and at present it is moved to Law Department of the State for vetting.
Regarding constitution of State Benches in the State of Goa, kindly note
that Government of Goa, vide I.J/o No. l676lF, has approved for single GST
Appellate Tribunal State Bench in the State of Goa which will locate at panajiGoa.
I'his is issued with the approval of the Commissioner of State Tax.
Ihanking you,
Copy to:
1. P.A. to Chief Secretary, Government of Goa, ' Goa;
2. Office file;
3. Guard file.
Secretariat, Porvorim -
Yours Faithfully
Sar,.rC*-
(Sarita S. Gadgil)
Addl. Commissioner of State
Tax, Goa
Part of Annexur A Agenda for 50th GSTCM Volume II
6/21/23, 6:05 PM Mail - commi-stax@gujarat.gov.in
https://webmail.gujarat.gov.in/owa/#path=/mail/sentitems 1/1
Formation of GST Appellate Tribunal
Respected Sir,
The 49th meeting of GST Council was held at New Delhi on 18/02/2023. In this meeting, a
decision was taken for the formation of "GST Appellate Tribunal". Accordingly, it is decided
that three benches of Appellate Tribunal at Ahmedabad, Surat and Rajkot may be constituted in
Gujarat.
For your kind information and perusal.
Regards,
Samir Vakil
Chief Commissioner of State Tax,
Gujarat State, Ahmedabad
Mr.Samir Vakil
Wed 6/21/2023 6:01 PM
To:gstc.secretariat@gov.in <gstc.secretariat@gov.in>;
Bcc:Milindkavatkar@gmail.com <Milindkavatkar@gmail.com>; rpraval71@gmail.com <rpraval71@gmail.com>;
Part of Annexur A Agenda for 50th GSTCM Volume II
Part of Annexur A Agenda for 50th GSTCM Volume II
From : Rakesh Sharma <aetc-gst-hp@gov.in>
Subject : <HP> Regarding GST Appellate Tribunal
To : GST Council Secretariat <gstc.secretariat@gov.in>
Email GST Council Secretariat
<HP> Regarding GST Appellate Tribunal
Tue, Jun 06, 2023 03:19 PM
49th GSTCM
Dear Sir/Madam,
The State has proposed to set-up one bench in the State located at Shimla.
with warm regards,
Rakesh Sharma
Addl Commissioner of State Tax
Shimla
Part of Annexur A Agenda for 50th GSTCM Volume II
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GOVERNMENT OF KARNATAKA
(Department of Commercial Taxes)
No.KGST/CR-33/20 1 8- 1 9 Office of the
Commissioner of Commercial Taxes
(Karnataka), Vanij ya Therige Kary alay a,
Gandhinagar, Bengaluru-s 60009,
Date20-04-2023.
To:
The Joint Secretary,
GST Council Secretariat,
Department of Revenue,
Ministry of Finance,
Government of India.
Respected Sir,
Sub: Constitution of GST Appellate Tribunal -reg.
Ref: Director, GST Council Secretariat e-mail dated 18.04.2023
*{<:F{<
This is to inform that One (01) State Bench of the GST Appellate Tribunal was
notified for creation in Bengaltru as per the Notification No.S.O.3009(E) dated:21-08 -2019
issued by the Department of Revenue, Ministry of Finance dated:21-08-2019. Further, two
(02) Area Benches of the GST Appellate Tribunal were notified for creation, both in
Bengaluru, vide Notification No.S.O.4332(E) dated 29-ll-2019 issued by Department of
Revenue, Ministry of Finance Government of India. Both Notifications were issued by the
Central Government under sub-Section (6) of Section 109 of the Central Goods and Services
Tax Act, 2017 onthe recommendation of GST Council.
The State of Karnataka requests the Council to continue the number of Benches in the
State of Kamataka as already notified but, to amend the Notification dated:29-ll-2019 by
re-designating the two "Area Bench"es as "State Bench"es at Bengaluru in light of the
amendment to Section 109 of the CGST Act.
HIKHA)
Commissioner of Commercial Taxes,
(Kamataka), Bengaluru.
Commissioner of Commercial Tar:es
Karnataka, Bangalore'
Part of Annexur A Agenda for 50th GSTCM Volume II
GOVERNMENT OF KARNATAKA
(Department of Commercial Taxes)
No.KGST/CR-33/20 1 8- 1 9 Office of the
Commissioner of Commercial Taxes
(Karnataka), Vanijya Therige Kary alay a,
Gandhinagar, Bengaluru-s 60009,
Date20-04-2023.
To:
The Joint Secretary,
GST Council Secretariat,
Department of Revenue,
Ministry of Finance,
Govemment of India.
Respected Sir,
Sub: Constitution of GST Appellate Tribunal-reg
Ref: Director, GST Council Secretariat e-mail dated 19.04.2023
*{.*{<
This is with reference to the DO letter F.No.2241GoM-GSTAT/GSTC1202218950-
8980 dated:06-04-2023 on the subject of the Constitution of GST Appellate Tribunal
consequent to the recommendation made in the 49th GST Council Meeting and necessary
amendments made in the CGST Act vide Finance Act, 2023. The States were asked to
carryout necessary amendments in the SGST Act and to inform the status regarding the said
amendments.
In this regard, it is informed that, since the Karnataka Legislature is not in session,
necessary steps have been taken to promulgate an ordinance in this regard. Once the
ordinance is issued, the same will be communicated immediately.
\-
Commisstoner of Commercial Taxes,
(Kamataka), Bengaluru.
Commissioner of Comrnercial Taxes
Ka.rnataka, Bangalore'
faithtully,
Part of Annexur A Agenda for 50th GSTCM Volume II
No.KGST/CR-33/2018-19
To:
The Joint Secretary.
GST Council Secretariat,
Department of Revenue,
Ministry of Finance,
Government of India.
GOVERNMENT OF KARNATAKA
(Department of Commercial Taxes)
Respected Sir.
Office of the
Commissioner of Commercial Taxes
(Karnataka), Vanijya Therige Karyalaya,
Gandhinagar, Bengaluru-560009,
Date 27-06-2023.
Sub: Constitution of GST Appellate Tribunal -jurisdiction of the State Benches of Karnataka - reg.
Ref: 1. Notification No.S.O.3009(E) dated:21-08-2019
2. Notification No.S.0.4332(E) dated: 29-11-2019
3. Director, GST Council Secretariat e-mail dated 18.04.2023
4. This office letter of even no. dated 20-04-2023.
This is to inform that One (01) State Bench of the GST Appellate Tribunal was
notified for creation in Bengaluru as per the Notification No.S.0.3009(E) dated:21-08-2019 issued by the Department of Revenue, Ministry of Finance dated:21-08-2019. Further, two
(02) Area Benches of the GST Appellate Tribunal were notified for creation, both in
Bengaluru, vide Notification No.S.0.4332(E) dated: 29-11-2019 issued by Department of
Revenue, Ministry of Finance Government of India. Both Notifications were issued by the
Central Government under sub-Section (6) of Section 109 of the Central Goods and Services
Tax Act, 2017 on the recommendation of GST Council.,
The State of Karnataka had requested, vide letter dated 20.04.2023, the Council to
continue the number of Benches in the State of Karnataka as already notified but, to amend
the Notification dated:29-11-2019 by re-designating the two "Area Bench'es as "State
Bench'es at Bengaluru in light of the amendment to Section 109 of the CGST Act.
In continuaion, it is requested to notify that all the above three State benches would
have the jurisdiction of the entire State of Karnataka.
Yours faithfully,
(C. SHIKHA)
Commissioner of Commercial Taxes,
(Karnataka), Bengaluru.
Commissioner of Commercial Taxes
Karnataka, Bangalore.
Part of Annexur A Agenda for 50th GSTCM Volume II
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afe
Government of Maharashtra
Finance Department
Mantralaya, Main Building,S Floor,
HutatmaRajguru Chowk, Madam Kama Marg
Mantralaya, Mumbai-32
Misc-2023/C.R.20/Taxation-1
To,
Pankaj Kumar Singh,
Additional Secretary,
GST Council Secretariat,
Department ofRevenue, Ministry ofFinance,
Government of India, New Delhi-110 001.
Sub: Regarding Constitution of GSTAT.
Ref: Goods and Services Tax Council Secretariat letter no. D.O.F. No.
224/GOM-GSTAT/GSTCʻ2022Dated 06.04.2023.
Date-07/07/2023
Respected Sir,
This is with reference toletter dated 06.04.2023 from Goods and Services Tax Council
Secretariatreferred above at Sr. No. 2. As per the letter, consequent to the recommendation
made in the 49h Meeting of GST Council, necessaryamendments for establishments of the
Goods and Services Tax Appellate Tribunal (GSTAT) have been made in the CGST Act vide
the Finance Act, 2023. It is emphasisednow to work to make thebenches of GSTAT
functional as early as possible, for which cooperation from the State in the following is
requested.
(A) To make necessary amendments in the Maharashtra Goods and Services Tax Act, 2017
as recommended by the Goods and Services Tax Council.
(B) Government's views are sought regardingestablishment of number of StateBenches of
Goods and Services Tax Appellate Tribunal (GSTAT) and their location in the State of
Maharashtra along with their jurisdiction.
Part of Annexur A Agenda for 50th GSTCM Volume II
2. As per GST Council recommendation, necessary amendments in Maharashtra Goods and
Services Tax Act, 2017 are being carried out.
3. Thus, with reference to the Council Secretariat request, the proposal regarding number of
State Benches of Goods and Service Tax Appellate Tribunal (GSTAT) in the State of
Maharashtra and their locations is submitted as under:
a) High Court in theState ofMaharashtraand theirBenches:In theState of
Maharashtra, Bombay High Court of Judicature is located at Mumbai and its benches
are located at Nagpur and Aurangabad.
b) At present, in Maharashtra there are 8 benches of Maharashtra Sales Tax Tribunal
(MSTT) and 2 Benches of Customs Excise and Service Tax Appellate Tribunal
c) Maharashtra has 12.02% registered taxpayers of the total registered taxpayers in the
(CESTAT).
country.
Total number of taxpayers in Maharashtra State (Number of taxpayers allocated
to Central Tax and State Tax Administration)
Sr. No.
1
2
3
4
5
6
7
8
State Tax Zone
Mumbai-1
Mumbai-2
Mumbai-4
Thane
Pune
Kolhapur
Nagpur
Nashik
Number of alive Taxpayers
1,23,740
2,01,177
1,52,851
2,99,155
2,76,885
1,71,656
2,30,260
2,31,140
Mumbai-4,77,768
Thane-2,99,155
Pune-4,48,541
Nagpur-2,30,260
Nashik-2,31,140
16,86,864
d) Further, during Financial Year 2022-23, of the total GST collection (excluding 1GST
on imports), 20.40% revenue is collected in Maharashtra. As called economic
powerhouse of the country, many of the corporates have their headquarters in
Maharashtra and their operations run from the State. Accordingly, the disputed tax in
litigated cases need to be unclogged at the earliest so that the Centre and State gets the
due revenue stuck in tax arrears.
Total
Part of Annexur A Agenda for 50th GSTCM Volume II
e) Various tax proceedings in the state of Maharashtra: Various types of taxation
proceedingsby the central and state tax administrations are going on in the state of
Maharashtra against approximately 3 to 4% of the total 16 lakh taxpayers in the
state, i.e. about 60,000 taxpayers. It is estimated that nearly 25% i.e. approximately
15000 cases may be filed at the second level of appeal i.e. before Goods and
Services Tax Appellate Tribunal (GSTAT).
4. In view of the above,it is recommended that the number of State Benches of the Goods and
Services Tax Appellate Tribunal (GSTAT) in the State of Maharashtra and their locations
should be as under.
Sr.
No.
| 1.
2.
3.
4
5.
State Benchesand their Locations u/s 109(4)
Mumbai-2
Thane-1
Pune-2
Nagpur-1
Aurangabad (Chhatrapati Sambhajinagar)-1
Total-7 State Benches
5.It is further recommended that the jurisdiction of the State Benchesproposedabove should
be kept as the whole of State of Maharashtra.
6. Hence, it is proposed from Maharashtra to establish 7 State Benches of Goods and Services
Tax Appellate Tribunal (GSTAT) under Section 109 (4) of the Central Goods and Services
TaxAct, 2017in the State of Maharashtra with locationsas shown in the above table and
with jurisdiction as whole ofMaharashtra.
(Shaila A.)
Secretary, Finance Department,
Government ofMaharashtra,
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From : Lalhawngliana <comtax.azl-mz@nic.in>
Subject : GST Amendment and State Bench
To : GST Council Secretariat <gstc.secretariat@gov.in>
Cc : Ht Mawia <ht.mawia@gov.in>, HK LALHAWNGLIANA
<mahawnga.hk@gov.in>
Email GST Council Secretariat
GST Amendment and State Bench
Thu, Jun 08, 2023 01:38 PM
1 attachment
Sir/Madam,
With regards to State GST amendment, the State Legislature of Mizoram will be sitting
only in August, so proposal has been submitted to the Govt. to promulgate the amendment
through Ordinance. The proposal is yet to be vetted by Law Dept., Govt. of Mizoram. After
vetting by the Law Dept, it will be sent for Ordinance.
With regards to State Bench, letter was sent to the GSTC Secretariat in August, 2019,
stating our desire to have a bench in Aizawl, Mizoram. A copy is enclosed for reference.
Regards,
o/o the Commissioner of State Tax
Government of Mizoram
State Bench letters-8.pdf
313 KB
Part of Annexur A Agenda for 50th GSTCM Volume II
Part of Annexur A Agenda for 50th GSTCM Volume II
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To
Office of Commissioner of State Tax, Punjab
Excise and Taxation Bhawan, Scctor 69, S.A.S Nagar(Mohali)
The Joint Secretary
GST Council Secretariat
No. Agt
State.
New Delhi
Subject: Constitution of GST Tribunal in State. -reg.
Respected Madam
Dated o7/023.
It is to inform that Punjab proposes to establish single state bench GST
Tribunal located at Chandigarh/Mohali with jurisdiction over whole of the
This issues with the approval of competernt authority.
Huus Deputy Commissioher of State Tax (GST)
Punjab
Part of Annexur A Agenda for 50th GSTCM Volume II
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From : Ashin Barman <gst.tax-tr@gov.in>
Subject : Re: [Gstc-NodalOfficers] Constitution of GSTAT and
progress made thereon- reg.
To : GST Council Secretariat <gstc.secretariat@gov.in>
Email GST Council Secretariat
Re: [Gstc-NodalOfficers] Constitution of GSTAT and progress made thereon- reg.
Thu, Apr 20, 2023 10:18 AM
49th GSTCM
Respected Sir,
I am directed to inform you that the TSGST (6th Amendment) Bill, 2023 has been drafted
and has been sent to the State Law Department for vetting. Constitution of State Bench
would also be taken up accordingly. We have already informed the Council Secretariat in
2019 that the State Government desires location of the State Bench in the State Capital.
With Regards,
Ashin Barman
GST Nodal Officer, Tripura
Mobile: 9436458189
From: "GST Council Secretariat" <gstc.secretariat@gov.in>
To: gstc-nodalofficers@lsmgr.nic.in
Cc: "Ashima Bansal" <ashima.irs@gov.in>, "Saurav Suman Shardool"
<Saurav.shardool@gov.in>
Sent: Tuesday, April 18, 2023 3:08:50 PM
Subject: [Gstc-NodalOfficers] Constitution of GSTAT and progress made thereon- reg.
Respected Madam/Sir,
This is in reference to this office D.O. letter F.No. 224/GoM-GSTAT/GSTC/2022/8950-
8980 dated 06.04.2023 on the subject of Constitution of GST Appellate Tribunal consequent
to the recommendation made in the 49th GST Council meeting and necessary amendments
made in CGST ACT vide Finance Act, 2023.
In this regard, it is requested to inform the status regarding amendments in the SGST Acts
and also regarding the constitution of State Benches. The status would be discussed in the
upcoming National Co-ordination meeting between Central and Sate Tax Officials to be
held in Delhi on 24th April, 2023.
Regards,
Saurav Suman Shardool
Director (GSTCS)
--
Part of Annexur A Agenda for 50th GSTCM Volume II
GST Council Secretariat
5th Floor, Tower II, Jeevan Bharti Building
Janpath Road, Connaught Place, New Delhi-110 001
Email: gstc.secretariat[at]gov.in
Telephone No. : 011-23762656
_______________________________________________
Gstc-NodalOfficers mailing list -- gstc-nodalofficers@lsmgr.nic.in
To unsubscribe send an email to gstc-nodalofficers-leave@lsmgr.nic.in
Part of Annexur A Agenda for 50th GSTCM Volume II
From : Sunita Pandey <sunitapandey.gst@uk.gov.in>
Subject : UpdateSTAT Regarding
To : GST Council Secretariat <gstc.secretariat@gov.in>
Cc : dc1rudrapur@yahoo.com, capri gupta
<capri_gupta@yahoo.co.in>, Ishwar Singh Brijwal
<isbrijwal.gst@uk.gov.in>
Email GST Council Secretariat
UpdateSTAT Regarding
Tue, Jun 06, 2023 04:04 PM
49th GSTCM
Respected Sir / Madam,
As inquired over the phone call i am directed to communicate that StateTax department
has sent its proposal for establishment of STAT to Government of Uttarakhand which is
still pending at Government level.As per our proposal only one branch with location at
Dehradun is proposed . For you kind information and updation please.
Thanks and Regards
Dr Sunita Pandey
Joint Comm & Nodal Officer
State Tax , Uttarakhand
Part of Annexur A Agenda for 50th GSTCM Volume II
From : upctres2@gmail.com
Subject : Re: Constitution of GSTAT - reg.
To : GST Council Secretariat <gstc.secretariat@gov.in>
Cc : Ashima Bansal <ashima.irs@gov.in>
Email GST Council Secretariat
Re: Constitution of GSTAT - reg.
Fri, May 26, 2023 01:29 PM
49th GSTCM
Respected Sir,
With reference to the trailing mail, it is to inform that during the 39th GST
Council Meeting held on 14.03.2020, Agenda Item 6: Creation of the State and
Area Benches of the Goods and Services Tax Appellate Tribunal (GSTAT) for the
State of Uttar Pradesh was placed before the GST Council. With regards to the
agenda item, it was decided by the Council that-
“ 16. For Agenda item 6, the Council approved the proposal for creating State
Bench of Goods and Services Tax Appellate Tribunal for the State of Uttar
Pradesh at Allahabad and 4 Area Benches at Ghaziabad, Lucknow, Varanasi and
Agra.”
Consequently in the 40th GST Council Meeting dt 12.06.2020, it was decided by
the GST Council that-
“ 16.4. Accordingly, the proposal for creating the State and Area Benches of the
Goods and Services Tax Appellate Tribunal (GSTAT) for the State of Uttar
Pradesh i.e State Bench at Lucknow and 04 Area Benches at Varanasi,
Ghaziabad, Agra and Prayagraj was considered and approved by the Council.“
Hence as decided earlier in the GST Council Meetings held on 14.03.2020 and
12.06.2020, the State Benches of GSTAT in U.P. have been proposed to be setup
in Lucknow , Varanasi, Ghaziabad, Agra and Prayagraj.
Kindly acknowledge the same.
This mail is being sent with the approval of Commissioner, State Tax, U.P.
Regards,
Paritosh Kumar Mishra
Deputy Commissioner(GST)
State Tax HQ, Lucknow.
On Thu, 25 May 2023 at 11:51, Commissioner, Commercial Tax, UP <ctcomhqluup@nic.in> wrote:
Part of Annexur A Agenda for 50th GSTCM Volume II
From: "GST Council Secretariat" <gstc.secretariat@gov.in>
To: "Commissioner, Commercial Tax, UP" <ctcomhqlu-up@nic.in>, "Hari Lal Prajapati"
<hari.2371976@gov.in>
Cc: "Ashima Bansal" <ashima.irs@gov.in>, "Saurav Suman Shardool"
<Saurav.shardool@gov.in>
Sent: Thursday, May 25, 2023 11:47:21 AM
Subject: Constitution of GSTAT - reg.
Dear Sir,
Reference is taken to the D.O letter. dated 6th April 2023 issued by Additional Secretary, GSTC
Secretariat (copy enclosed) wherein the cooperation of the States was requested to initiate the
process for making the benches of GSTAT functional at the earliest. In this regard, it is once again
requested that necessary steps may please be taken at the earliest to amend the SGST Act and
also to identify the location and jurisdiction of the State benches.
Thanks, and Regards
GST Council Secretariat
GST Council Secretariat
5th Floor, Tower II, Jeevan Bharti Building
Janpath Road, Connaught Place, New Delhi-110 001
Email: gstc.secretariat[at]gov.in
Telephone No. : 011-23762656
Part of Annexur A Agenda for 50th GSTCM Volume II
* #ffi- s shd!s
i'ilji *,i >.q {ffiffi
=--i=i
KHALID AIZAZANWAR, I.A.S.
COMMISSIONER
COMMERCIAL TAXES, WEST BENGAL
14, BELIAGHATA ROAD, KOLKATA- 7OOO15
Tel : 033 7122-1003,
Email : cct.ctax@nic.in
No. l1lC Date : 08.05.2023
To,
The Additional Secretary,
Goods & Services Tax Council Secretariat
Ministry of Finance
Government of India
Subject: Request for Constitution of State Benches of the GST Appellate Tribunal (GSTAT) for
exercising jurisdiction throughout the State of West Bengal
Sir,
Please refer to D.O. letter F.No. 2241GoM-GSTAT/GSTC1202218950-8980 dated
A6.04.2023 soliciting request of the concemed State Government for constitution of State
Benches of the GSTAT subsequent to the amendment made in the CGST Act in the Finance Act,
2023.
It may kindly be noted in this regard that, GST Council approved the request of the State
for constitution of the State Bench of West Bengal and its two Area Benches at Kolkata in terms
of the pre-amended GSTAT provisions in its 35{'Meeting held on 21.06.2019.
However, subsequent to the aforesaid amendment in the Finance Act, 2023, this is to
state that, the State requests for constitution of 02(two) State Benches to be located at Kolkata,
for the tirne being, for exercising jurisdiction througlrout the State of West Bengal.
Thanking You,
vour$aiUrfuUv,
h^r,n ,,
Khali{Nzaz Mwar
Commissioner, State Tax,
WestBengal
Khalid ltizaz Anwar, ns
Commissioner
comm"rciai Taxes West Bengal
aithfully,
Part of Annexur A Agenda for 50th GSTCM Volume II
Annexure to Agenda Item 5
on Report of GoM on
Casinos, Race Courses and
Online Gaming
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