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CBIC deserves kudos for GST clarificatory circulars

The GST Council has decided to meet again on August 2, 2023, to consider various representations regarding tax rates on services of online gaming, casinos, and horse racing

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TNC Rajagopalan
3 min read Last Updated : Jul 30 2023 | 10:24 PM IST
The Central Board of Indirect Taxes and Customs (CBIC) issued eight circulars on July 17, 2023, following the 50th GST Council meeting held on July 11, 2023. They clarify a number of issues and generally convey a desire on the part of administrators to avoid unnecessary disputes to the extent possible.
 
The circulars cover a range of topics such as 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, issues pertaining to e-invoice, refund-related issues, taxability of share capital held in a subsidiary company by the parent company, availability of input tax credit (ITC) in respect of warranty replacement of parts and repair services during the warranty period, TCS (tax collection at source) liability under Section 52 of the CGST Act, 2017, in case of multiple e-commerce operators in one transaction, dealing with differences in ITC availed of in the form GSTR-3B as compared to that detailed in the form GSTR-2A for the period April 1, 2019, to December 31, 2021, and  charging of interest under Section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof.
 
Of these, the circular of specific interest to exporters relates to refund that deals with refund of accumulated ITC under Section 54(3) on  the basis of that available according to Form GSTR 2B; requirement of undertaking in Form RFD-01 inserted vide circular no. 125/44/2019-GST dated November 18, 2019; manner of calculation of ‘adjusted total turnover’ under sub-rule (4) of Rule 89 of CGST Rules, consequent to the explanation inserted in that sub-rule  vide Notification No. 14/2022-CT dated July 5, 2022; and 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. All these circulars do not change the existing law in any way. They were necessitated as divergent views were being taken at the operating levels, some of them to the detriment of taxpayers. Almost all these circulars clarify the issues in a clear manner that will help taxpayers. 
  
The finance ministry issued nine non-tariff notifications on the July 17, 2023, and five (each for CGST, IGST and UTGST) tariff notifications on July 26, 2023, giving effect to various decisions taken in the 50th GST Council meeting. The non-tariff notifications seek to extend the amnesty for GSTR-10 non-filers and for GSTR-9 non-filers; extend the amnesty scheme for deemed withdrawal of assessment orders issued under Section 62 of the CGST Act, 2017; extend the time limit for application for revocation of cancellation of registration; extend the amnesty for GSTR-4 non-filers; and extend the due dates for filing various returns for the persons whose principal place of business is in the State of Manipur. 
 
The GST Council has decided to meet again on August 2, 2023, to consider various representations regarding tax rates on services of online gaming, casinos, and horse racing. This shows a welcome willingness to revisit its own decisions taken earlier. The GST Council deserves appreciation for approaching various issues with an open mind. The CBIC, in particular, deserves praise for clear and unambiguous drafting of the taxpayer-friendly clarificatory circulars. 


Email : tncrajagopalan@gmail.com 

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