SERIES II No. 44

PUBLISHED BY AUTHORITY

RNI No. GOAENG/2002/6410

Reg. No. RNP/GOA/32/2021-2023

GOVERNMENT OF GOA

Department of Finance

Office of the Commissioner of Commercial Taxes

No. CCT/26-4/2022-23/F/3300

Subject: 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 FY 2017-18 and 2018-19—reg.

Ref.:

Circular No. 183/15/2022-GST dated 27th

December, 2022 issued under Central Goods

and Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry

of Finance, GOI, New Delhi.

Circular

(No. 14/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation

of the Goa GST Act, 2017. Copy of the referred

CBIC Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

Panaji, 7th February, 2023 (Magha 18, 1944)

Circular No. 183/15/2022-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 27th December, 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 to deal with 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—reg.

Section 16 of the Central Goods and Services Tax

Act, 2017 (hereinafter referred to as “CGST Act”)

provides for eligibility and conditions for availing

Input Tax Credit (ITC). During the initial period or

implementation of GST, during the financial years

2017-18 and 2018-19, in many cases, the suppliers

have failed to furnish the correct details of outward

supplies in their FORM GSTR-1, which has led to

certain deficiencies or discrepancies in FORM GSTR-

2A of their recipients. However, the concerned

recipients may have availed input tax credit on the

said supplies in their returns in FORM GSTR-3B. The

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

Suggestions are welcomed on e-mail: [email protected]

2807

EXTRAORDINARY

No. 2

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES II No. 44

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7TH FEBRUARY, 2023

2808

GSTR-2A are being noticed by the tax officers during

proceedings such as scrutiny/audit/investigation etc.

due to such credit not flowing to FORM GSTR-2A of the

said registered persons. Such discrepancies are

considered by the tax officers as representing ineligible

ITC availed by the registered persons, and are being

flagged seeking explanation from the registered

persons for such discrepancies and/or for reversal of

such ineligible ITC.

2. It is mentioned that FORM GSTR-2A could not be

made available to the taxpayers on the common portal

during the initial stages of implementation of GST.

Further, restrictions regarding availment of ITC by the

registered persons upto certain specified limit beyond

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. However, the

availability of ITC was subjected to restrictions

and conditions specified in Section 16 of CGST Act

from 1st July, 2017 itself. In view of this, various

representations have been 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 during FY 2017-18 and FY 2018-19.

3. 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:

Sr.

Scenario

Clarification

No.

Where the supplier has failed to file FORM GSTR-1

In such cases, the difference in ITC claimed

for a tax period but has filed the return in FORM

by the registered person in his return in

GSTR-3B for said tax period, due to which the

FORM GSTR-3B and that available in FORM

supplies made in the said tax period do not get

GSTR-2A may be handled by following the

reflected in FORM GSTR-3B of the recipients.

procedure provided in para 4 below.

Where the supplier has filed FORM GSTR-1 as well

In such cases, the difference in ITC claimed

as return in FORM GSTR-3B for a tax period, but

by the registered person in his return in

has failed to report a particular supply in FORM

FORM GSTR-3B and that available in FORM

GSTR-1, due to which the said supply does not get

GSTR-2A may be handled by following the

reflected in FORM GSTR-2A of the recipient.

procedure provided in para 4 below.

Where supplies were made to a registered person

In such cases, the difference in ITC claimed

and invoice is issued as per Rule 46 of CGST Rules

by the registered person in his return in

containing GSTIN of the recipient, but supplier

FORM GSTR-3B and that available in FORM

has wrongly reported the said supply as B2C supply,

GSTR-2A may be handled by following the

instead of B2B supply, in his FORM GSTR-1, due to

procedure provided in para 4 below.

which the said supply does not get reflected in

FORM GSTR-2A of the said registered person.

Where the supplier has filed FORM GSTR-1 as

In such cases, the difference in ITC claimed

well as return in FORM GSTR-3B for a tax period,

by the registered person in his return in

but he has declared the supply with wrong

FORM GSTR-3B and that available in FORM

GSTIN of the recipient in FORM GSTR-1.

GSTR-2A may be handled by following the

procedure provided in para 4 below.

In addition, the proper officer of the actual

recipient shall intimate the concerned

jurisdictional tax authority of the registered

person, whose GSTIN has been mentioned

wrongly, that ITC on those transactions is

required to be disallowed, if claimed by

such recipients in their FORM GSTR-3B.

However, allowance of ITC to the actual

recipient shall not depend on the

completion of the action by the tax authority

of such registered person, whose GSTIN has

been mentioned wrongly, and such action

will be pursued as an independent action.

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2809

4. The proper officer shall first seek the details from

the registered person regarding all the invoices on

which ITC has been availed by the registered person

in his FORM GSTR 3B but which are not reflecting in

his FORM GSTR 2A. He shall then ascertain

fulfillment of the following conditions of Section 16

of CGST Act in respect of the input tax credit availed

on such invoices by the said registered person:

i) that he is in possession of a tax invoice or

debit note issued by the supplier or such other

tax paying documents;

ii) that he has received the goods or services or

both;

iii) that he has made payment for the amount

towards the value of supply, along with tax

payable thereon, to the supplier.

Besides, the proper officer shall also check whether

any reversal of input tax credit is required to be made

in accordance with Section 17 or Section 18 of CGST

Act and also whether the said input tax credit has

been availed within the time period specified under

sub-section (4) of Section 16 of CGST Act.

4.1 In order to verify the condition of Clause (c) of

sub-section (2) of Section 16 of CGST Act that tax on

the said supply has been paid by the supplier, the

following action may be taken by the proper officer:

4.1.1 In case, where difference between the ITC

claimed in FORM GSTR-3B and that available in

FORM GSTR 2A of the registered person in respect

of a supplier for the said financial year exceeds

Rs. 5 lakh, the proper officer shall ask the

registered person to produce a certificate for the

concerned supplier from the Chartered

Accountant (CA) or the Cost Accountant (CMA),

certifying that supplies in respect of the said

invoices of supplier have actually been made by

the supplier to the said registered person and the

tax on such supplies has been paid by the said

supplier in his return in FORM GSTR 3B.

Certificate issued by CA or CMA shall contain

UDIN. UDIN of the certificate issued by CAs can

verified

from

ICAI

website

https://udin.icai.org/search-udin and that issued

by CMAs can be verified from ICMAI website

https://eicmai.in/udin/VerifyUDIN.aspx .

4.1.2 In cases, where difference between the ITC

claimed in FORM GSTR-3B and that available in

FORM GSTR 2A of the registered person in respect

of a supplier for the said financial year is upto Rs.

5 lakh, the proper officer shall ask the claimant to

produce a certificate from the concerned supplier

to the effect that said supplies have actually been

made by him to the said registered person and the

tax on said supplies has been paid by the said

supplier in his return in FORM GSTR 3B.

4.2 However, it may be noted that for the period

FY 2017-18, as per proviso to Section 16(4) of CGST

Act, the aforesaid relaxations shall not be applicable

to the claim of ITC made in the FORM GSTR-3B return

filed after the due date of furnishing return for the

month of September, 2018 till the due date of

furnishing return for March, 2019, if supplier had not

furnished details of the said supply in his FORM

GSTR-1 till the due date of furnishing FORM GSTR 1

for the month of March, 2019.

5. It may also be noted that the clarifications given

hereunder are case specific and are applicable to

the bonafide errors committed in reporting during

FY 2017-18 and 2018-19.

Further, 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.

6. These instructions will apply only to the

ongoing

proceedings

scrutiny/audit/

/investigation, etc. for FY 2017-18 and 2018-19 and

not to the completed proceedings. However, these

instructions will apply in those cases for FY 2017-18

and 2018-19 where any adjudication or appeal

proceedings are still pending.

7. 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).

————

No. CCT/26-4/2022-23/F/3301

Subject: Clarification on the entitlement of input

tax credit where the place of supply is

determined in terms of the proviso to sub-

-section (8) of Section 12 of the Integrated

Goods and Services Tax Act, 2017–reg.

Ref.: Circular No. 184/16/2022-GST dated 27th

December, 2022 issued under Central Goods

and Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry of

Finance, GOI, New Delhi.

Circular

(No. 15/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation of

OFFICIAL GAZETTE — GOVT. OF GOA

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the Goa GST Act, 2017. Copy of the referred CBIC

Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

————

Circular No. 184/16/2022-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 27th December, 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 on the entitlement of input

tax credit where the place of supply is determined

in terms of the proviso to sub-section (8) of Section

12 of the Integrated Goods and Services Tax Act,

2017–reg.

Attention is invited to sub-section (8) of Section

12 of Integrated Goods and Services Tax Act, 2017

(hereinafter referred to as “IGST Act”) which

provides for the place of supply of services by way

of transportation of goods, including by mail or

courier, where location of the supplier as well as

the recipient of services is in India. As per Clause

(a) of the aforesaid sub-section, the place of supply

of services by way of transportation of goods,

including by mail or courier, to a registered person

shall be the location of such registered person.

However, the proviso to the aforesaid sub-section

which was inserted vide the Integrated Goods and

Services Tax (Amendment) Act, 2018 w.e.f.

01-02-2019 provides that where the transportation

of goods is to a place outside India, the place of

supply of the said service shall be the place of

destination of such goods. In such cases, as the

place of supply of services, as per the proviso to

sub-section (8) of Section 12 of IGST Act, is the

concerned foreign destination and not the State

where the recipient is registered under GST, doubts

are being raised regarding the availability of input

tax credit of the said services to the recipient

located in India.

2. In order to clarify this 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:

Sr.

Issue

Clarification

No.

The place of supply of services by way of

transportation of goods, including by mail or courier,

where both the supplier and the recipient are

located in India, is determined in terms of

sub-section (8) of Section 12 of the IGST Act which

reads as follows:

“(8) The place of supply of services by way of

transportation of goods, including by mail or

courier to,—

(a) a registered person, shall be the location of

such person;

(b) a person other than a registered person,

shall be the location at which such goods are

handed over for their transportation:

Provided that where the transportation of goods

is to a place outside India, the place of supply

shall be the place of destination of such goods”

Hence, in case of supply of services by way of

transportation of goods, including by mail or

1. In case of supply of services by way of

transportation of goods, including by mail or

courier, where the transportation of goods is to

a place outside India, and where the supplier

and recipient of the said supply of services are

located in India, what would be the place of

supply of the said services?

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courier, where the transportation of goods is to

a place outside India, and where the supplier

and recipient of the said supply of services are

located in India, the place of supply is the

concerned foreign destination where the goods

are being transported, in accordance with the

proviso to the sub-section (8) of Section 12 of

IGST Act, which was inserted vide the Integrated

Goods and Services Tax (Amendment) Act, 2018

w.e.f. 01-02-2019.

Illustration:

X is a person registered under GST in the State of

West Bengal who intends to export goods to a

person Y located in Singapore. X avails the services

for transportation of goods by air to Singapore

from an air cargo operator Z, who is also registered

under GST in the State of West Bengal.

In this case, the place of supply of the services

provided by Z to X is the place of destination of

goods i.e., Singapore, in terms of the proviso to

sub-section (8) of Section 12 of IGST Act.

The aforesaid supply of services would be

considered as inter-State supply in terms of

sub-section (5) of Section 7 of the IGST Act since

the location of the supplier is in India and the

place of supply is outside India. Therefore,

Integrated Tax (IGST) would be chargeable on the

said supply of services.

In respect of the illustration given in Sl. No. 1 above,

Z would charge IGST from X in terms of sub-section

(5) of Section 7 of the IGST Act, for supply of services

by way of transportation of goods.

In the case given in Sl. No. 1, whether the

supply of services will be treated as inter-

-State supply or intra-State supply?

3. In the case given in Sl. No. 1, whether the

recipient of service of transportation of goods

would be eligible to avail input tax credit in

respect of the said input service of

transportation of goods?

Section 16 of the CGST Act lays down the eligibility

and conditions for taking input tax credit whereas,

Section 17 of the CGST Act provides for

apportionment of credit and blocked credits under

circumstances specified therein. The said

provisions of law do not restrict availment of input

tax credit by the recipient located in India if the

place of supply of the said input service is outside

India. Thus, the recipient of service of transportation

of goods shall be eligible to avail input tax credit

in respect of the IGST so charged by the supplier,

subject to the fulfilment of other conditions laid

down in Section 16 and 17 of the CGST Act.

In the illustration given in Sl. No. 1 above, X would

be eligible to take input tax credit of IGST in respect

of supply of services received by him from Z, subject

to the fulfilment of other conditions laid down in

Section 16 and 17 of the CGST Act

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4. In the case mentioned at Sl. No. 1, what

State Code has to be mentioned by the

supplier of the said service of transportation

of goods, where the transportation of goods

is to a place outside India, while reporting

the said supply in FORM GSTR-1?

The supplier of services shall report the place of supply

of such service by selecting State Code as ‘96-Foreign

Country’ from the list of codes in the drop-down menu

available on the portal in Form GSTR-1.

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

4. Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the

Board. Hindi version would follow.

(Sanjay Mangal), Principal Commissioner (GST).

————

No. CCT/26-4/2022-23/F/3302

Subject: Clarification with regard to applicability

of provisions of Section 75(2) of Central

Goods and Services Tax Act, 2017 and

its effect on limitation-reg.

Ref: Circular No. 185/17/2022-GST dated 27th

December, 2022 issued under Central

Goods and Services Tax Act, 2017 by the

GST Policy Wing, Central Board of Indirect

Taxes and Customs, Department of

Revenue, Ministry of Finance, GOI, New

Delhi.

Circular

(No. 16/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular.

For the uniformity, it has been decided that the

said Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation

of the Goa GST Act, 2017. Copy of the referred

CBIC Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this

Circular may please be brought to the notice of

the undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji 7th February, 2023.

Circular No. 185/17/2022-GST

F. No. CBIC-20001/2/2022

Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

New Delhi, Dated the 27th December, 2022.

To,

The Principal Chief Commissioners/Chief Commissioners/

/Principal Commissioners/Commissioners of Central Tax

(All).

The Principal Directors General/Directors General (All).

Subject: Clarification with regard to applicability of

provisions of Section 75(2) of Central Goods

and Services Tax Act, 2017 and its effects on

limitation-reg.

Madam/Sir,

Attention is invited to sub-section (2) of Section 75

of Central Goods and Services Tax Act, 2017

(hereinafter referred to as “CGST Act”) which provides

that in cases where the appellate authority or appellate

tribunal or court concludes that the notice issued by

proper officer under sub-section (1) of Section 74 is not

sustainable for reason that the charges of fraud or any

willful-misstatement or suppression of facts to evade

tax have not been established against the person to

whom such notice was issued (hereinafter called as

“noticee”), then the proper officer shall determine the

tax payable by the noticee, deeming as if the notice

was issued under sub-section (1) of Section 73.

2. Doubts have been raised by the field formations

seeking clarification regarding the time limit within

which the proper officer is required to re-determine

the amount of tax payable considering notice to be

issued under sub-section (1) of Section 73, specially in

cases where time limit for issuance of order as per sub-

-section (10) of Section 73 has already been over. Further,

doubts have also been expressed regarding the

methodology for computation of such amount payable

by the noticee, deeming the notice to be issued under

sub-section (1) of Section 73.

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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:

Sr.

Issue

Clarification

No.

1. In some of the cases where the show cause

notice has been issued by the proper officer

to a noticee under sub-section (1) of Section

74 of CGST Act for demand of tax not paid/

/short paid or erroneous refund or input tax

credit wrongly availed or utilized, the

appellate authority or appellate tribunal or

the court concludes that the said notice is not

sustainable under sub-section (1) of Section

74 of CGST Act for the reason that the

charges of fraud or any willful-misstatement

or suppression of facts to evade tax have not

been established against the noticee and

directs the proper officer to re-determine the

amount of tax payable by the noticee, deeming

the notice to have been issued under sub-

-section (1) of Section 73 of CGST Act, in

accordance with the provisions of sub-section

(2) of Section 75 of CGST Act. What would be

the time period for re-determination of the

tax, interest and penalty payable by the

noticee in such cases?

•Sub-section (3) of Section 75 of CGST Act

provides that an order, required to be issued in

pursuance of the directions of the appellate

authority or appellate tribunal or the court, has

to be issued within two years from the date of

communication of the said direction.

•Accordingly, in cases where any direction is

issued by the appellate authority or appellate

tribunal or the Court to re-determine the amount

of tax payable by the noticee by deeming the

notice to have been issued under sub-section (1)

of Section 73 of CGST Act in accordance with

the provisions of sub-section (2) of Section 75 of

the said Act, the proper officer is required to

issue the order of redetermination of tax, interest

and penalty payable within the time limit as

specified in under sub-section (3) of Section 75 of

the said Act, i.e. within a period of two years

from the date of communication of the said

direction by appellate authority or appellate

tribunal or the court, as the case may be.

2. How the amount payable by the noticee,

deeming the notice to have been issued under

sub-section (1) of Section 73, shall be

re-computed/re-determined by the proper

officer as per provisions of sub-section (2) of

Section 75?

• In cases where the amount of tax, interest and

penalty payable by the noticee is required to be

re-determined by the proper officer in terms of

sub-section (2) of Section 75 of CGST Act, the

demand would have to be re-determined keeping

in consideration the provisions of sub-section (2)

of Section 73, read with sub-section (10) of Section

73 of CGST Act.

•Sub-section (1) of Section 73 of CGST Act

provides for issuance of a show cause notice by

the proper officer for tax not paid or short paid

or erroneously refunded, or where input tax credit

has been wrongly availed or utilized, in cases

which do not involve fraud or wilful

misstatement or suppression of facts to evade

tax. Sub-section (2) of Section 73 of CGST Act

provides that such show cause notice shall be

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issued at least 3 months prior to the time limit

specified in sub-section 10 of Section 73 for

issuance of order. As per sub-section (9) of Section

73 of CGST Act, the proper officer is required to

determine the tax, interest and penalty due from

the noticee and issue an order. As per sub-section

(10) of Section 73 of CGST Act, an order under

sub-section (9) of Section 73 has to be issued by

the proper officer within three years from the

due date for furnishing of annual return for the

financial year in respect of which tax has not

been paid or short paid or input tax credit has

been wrongly availed or utilized or from the date

of erroneous refund.

• It transpires from a combined reading of these

provisions that in cases which do not involve

fraud or willful-misstatement or suppression of

facts to evade payment of tax, the show cause

notice in terms of sub-section (1) of Section 73 of

CGST Act has to be issued within 2 years and 9

months from the due date of furnishing of annual

return for the financial year to which such tax

not paid or short paid or input tax credit wrongly

availed or utilized relates, or within 2 years and

9 months from the date of erroneous refund.

• Therefore, in cases where the proper officer has

to re-determine the amount of tax, interest and

penalty payable deeming the notice to have been

issued under sub-section (1) of Section 73 of CGST

Act in terms of sub-section (2) of Section 75 of

the said Act, the same can be re-determined for

so much amount of tax short paid or not paid, or

input tax credit wrongly availed or utilized or

that of erroneous refund, in respect of which

show cause notice was issued within the time

limit as specified under sub-section (2) of Section

73 read with sub-section (10) of Section 73 of

CGST Act. Thus, only the amount of tax short

paid or not paid, or input tax credit wrongly

availed or utilized, along with interest and

penalty payable, in terms of Section 73 of CGST

Act relating to such financial years can be

re-determined, where show cause notice was

issued within 2 years and 9 months from the due

date of furnishing of annual return for the

respective financial year. Similarly, the amount

of tax payable on account of erroneous refund

along with interest and penalty payable can be

re-determined only where show cause notice was

issued within 2 years and 9 months from the

date of erroneous refund.

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• In case, where the show cause notice under

sub-section (1) of Section 74 was issued for tax

short paid or tax not paid or wrongly availed or

utilized input tax credit beyond a period of 2

years and 9 months from the due date of

furnishing of the annual return for the financial

year to which such demand relates to, and the

appellate authority concludes that the notice is

not sustainable under sub-section (1) of Section

74 of CGST Act thereby deeming the notice to

have been issued under sub-section (1) of Section

73, the entire proceeding shall have to be

dropped, being hit by the limitation of time as

specified in Section 73. Similarly, where show

cause notice under sub-section (1) of Section 74

of CGST Act was issued for erroneous refund

beyond a period of 2 years and 9 months from

the date of erroneous refund, the entire

proceeding shall have to be dropped.

• In cases, where the show cause in terms of

sub-section (1) of Section 74 of CGST Act was

issued for tax short paid or not paid tax or wrongly

availed or utilized input tax credit or on account

of erroneous refund within 2 years and 9 months

from the due date of furnishing of the annual

return for the said financial year, to which such

demand relates to, or from the date of erroneous

refund, as the case may be, the entire amount of

the said demand in the show cause notice would

be covered under re-determined amount.

•·Where the show cause notice under

sub-section (1) of Section 74 was issued for

multiple financial years, and where notice had

been issued before the expiry of the time period

as per sub-section (2) of Section 73 for one

financial year but after the expiry of the said due

date for the other financial years, then the amount

payable in terms of Section 73 shall be

re-determined only in respect of that financial

year for which show cause notice was issued

before the expiry of the time period as specified

in sub-section (2) of Section 73.

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).

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES II No. 44

(EXTRAORDINARY No. 2)

7TH FEBRUARY, 2023

2816

No. CCT/26-4/2022-23/F/3303

Subject:

Clarification on various issue pertaining

to GST–reg.

Ref.: Circular No. 186/18/2022-GST dated 27th

December, 2022 issued under Central Goods

and Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry

of Finance, GOI, New Delhi.

Circular

(No. 17/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation of

the Goa GST Act, 2017. Copy of the referred CBIC

Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

Circular No. 186/18/2022-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 27th December, 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 on various issue pertaining to

GST–reg.

Representations have been received from the field

formations seeking clarification on certain issues

with respect to–

i. taxability of No Claim Bonus offered by Insurance

companies;

ii. applicability of e-invoicing w.r.t. an entity.

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:

Sr.

Issue

Clarification

No.

Taxability of No Claim Bonus offered by Insurance companies

Whether the deduction on account of No Claim

As per practice prevailing in the insurance

Bonus allowed by the insurance company from

sector, the insurance companies deduct No

the insurance premium payable by the insured,

Claim Bonus from the gross insurance

can be considered as consideration for the supply

premium amount, when no claim is made by

provided by the insured to the insurance company,

the insured person during the previous

for agreeing to the obligation to refrain from the

insurance period(s). The customer/insured

act of lodging insurance claim during the previous

procures insurance policy to indemnify

year(s)?

himself from any loss/injury as per the terms

of the policy, and is not under any contractual

obligation not to claim insurance claim

during any period covered under the policy,

in lieu of No Claim Bonus.

It is, therefore, clarified that there is no supply

provided by the insured to the insurance

company in form of agreeing to the obligation

to refrain from the act of lodging insurance

claim during the previous year(s) and No

Claim Bonus cannot be considered as a

consideration for any supply provided by the

insured to the insurance company.

OFFICIAL GAZETTE — GOVT. OF GOA

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Whether No Claim Bonus provided by the insurance

As per Clause (a) of sub-section (3) of Section

company to the insured can be considered as an

15 of the CGST Act, value of supply shall not

admissible discount for the purpose of determination

include any discount which is given before

of value of supply of insurance service provided

or at the time of supply if such discount has

by the insurance company to the insured?

been duly recorded in the invoice issued in

respect of such supply.

The insurance companies make the

disclosure of the fact of availability of

discount in form of No Claim Bonus, subject

to certain conditions, to the insured in the

insurance policy document itself and also

provide the details of the No Claim Bonus in

the invoices also. The pre-disclosure of NCB

amount in the policy documents and

specific mention of the discount in form of

No Claim Bonus in the invoice is in

consonance with the conditions laid down

for deduction of discount from the value of

supply under Clause (a) of sub-section (3) of

Section 15 of the CGST Act.

It is, therefore, clarified that No Claim Bonus

(NCB) is a permissible deduction under

Clause (a) of sub-section (3) of Section 15 of

the CGST Act for the purpose of calculation

of value of supply of the insurance services

provided by the insurance company to the

insured. Accordingly, where the deduction

on account of No Claim Bonus is provided

in the invoice issued by the insurer to the

insured, GST shall be leviable on actual

insurance premium amount, payable by the

policy holders to the insurer, after deduction

of No Claim Bonus mentioned on the

invoice.

Clarification on applicability of e-invoicing w.r.t. an entity

Whether the exemption from mandatory generation

In terms of Notification No. 13/2020-Central

of e-invoices in terms of Notification No. 13/2020-

Tax dated 21st March, 2020, as amended,

-Central Tax, dated 21st March, 2020, as amended,

certain entities/sectors have been exempted

is available for the entity as whole, or whether

from mandatory generation of e-invoices

the same is available only in respect of certain

as per sub-rule (4) of rule 48 of Central Goods

supplies made by the said entity?

and Services Tax Rules, 2017. It is hereby

clarified that the said exemption from

generation of e-invoices is for the entity as

a whole and is not restricted by the nature

of supply being made by the said entity.

Illustration: A Banking Company providing

banking services, may also be involved in

making supply of some goods, including

bullion. The said banking company is

exempted from mandatory issuance of

e-invoice in terms of Notification

No. 13/2020-Central Tax, dated 21st March,

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES II No. 44

(EXTRAORDINARY No. 2)

7TH FEBRUARY, 2023

2818

2020, as amended, for all supplies of goods

and services and thus, will not be required

to issue e-invoice with respect to any

supply made by it.

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).

————

No. CCT/26-4/2022-23/F/3304

Subject: Clarification regarding the treatment of

statutory dues under GST law in respect

of the taxpayers for whom the proceedings

have been finalised under Insolvency and

Bankruptcy Code, 2016—reg.

Ref.: Circular No. 187/19/2022-GST dated 27th

December, 2022 issued under Central Goods

and Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry of

Finance, GOI, New Delhi.

Circular

(No. 18/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation of

the Goa GST Act, 2017. Copy of the referred CBIC

Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

————

Circular No. 187/19/2022-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 27th December, 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 the treatment of

statutory dues under GST law in respect of the

taxpayers for whom the proceedings have been

finalised under Insolvency and Bankruptcy Code,

2016—reg.

Attention is invited to Circular No. 134/04/2020-

-GST dated 23rd March, 2020, wherein it was clarified

that no coercive action can be taken against the

corporate debtor with respect to the dues of the

period prior to the commencement of Corporate

Insolvency Resolution Process (CIRP). Such dues will

be treated as ‘operational debt’ and the claims may

be filed by the proper officer before the NCLT in

accordance with the provisions of the IBC.

2. Representations have been received from the

trade as well as tax authorities, seeking clarification

regarding the modalities for implementation of the

order of the adjudicating authority under Insolvency

and Bankruptcy Code, 2016 (hereinafter referred to

as the “IBC”) with respect to demand for recovery

against such corporate debtor under Central Goods

and Services Tax Act, 2017 (hereinafter referred to as

“CGST Act”) as well under the existing laws and the

treatment of such statutory dues under CGST Act

and existing laws, after finalization of the

proceedings under IBC.

3.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.

OFFICIAL GAZETTE — GOVT. OF GOA

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(EXTRAORDINARY No. 2)

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4.1 Section 84 of CGST Act reads as follows:

“Section 84—Continuation and validation of

certain recovery proceedings.—

Where any notice of demand in respect of any

tax, penalty, interest or any other amount payable

under this Act (hereafter in this section referred

to as “Government dues”), is served upon any

taxable person or any other person and any appeal

or revision application is filed or any other

proceedings is initiated in respect of such

Government dues, then–

(b) where such Government dues are reduced

in such appeal, revision or in other proceedings—

(i) it shall not be necessary for the Commissioner

to serve upon the taxable person a fresh notice of

demand;

(ii) the Commissioner shall give intimation of

such reduction to him and to the appropriate

authority with whom recovery proceedings is

pending;

(iii) any recovery proceedings initiated on the

basis of the demand served upon him prior to the

disposal of such appeal, revision or other

proceedings may be continued in relation to the

amount so reduced from the stage at which such

proceedings stood immediately before such

disposal.”

4.2 As per Section 84 of CGST Act, if the

Government dues against any person under CGST

Act are reduced as a result of any appeal, revision or

other proceedings in respect of such Government

dues, then an intimation for such reduction of

Government dues has to be given by the

Commissioner to such person and to the appropriate

authority with whom the recovery proceedings are

pending. Further, recovery proceedings can be

continued in relation to such reduced amount of

Government dues.

4.3 The word ‘other proceedings’ is not defined in

CGST Act. It is to be mentioned that the adjudicating

authorities and appellate authorities under IBC are

quasi-judicial authorities constituted to deal with

civil disputes pertaining to insolvency and

bankruptcy. For instance, under IBC, NCLT serves as

an adjudicating authority for insolvency proceedings

which are initiated on application from any

stakeholder of the entity like the film, creditors,

debtors, employees etc. and passes an order

approving the resolution plan. As the proceedings

conducted under IBC also adjudicate the Government

dues pending under the CGST Act or under existing

laws against the corporate debtor, the same appear

to be covered under the term ‘other proceedings’ in

Section 84 of CGST Act.

5. Rule 161 of Central Goods and Services Tax

Rules, 2017 prescribes FORM GST DRC-25 for issuing

intimation for such reduction of demand specified

under Section 84 of CGST Act. Accordingly, in cases

where a confirmed demand for recovery has been

issued by the tax authorities for which a summary

has been issued in FORM GST DRC-07/DRC 07A

against the corporate debtor, and where the

proceedings have been finalised against the

corporate debtor under IBC reducing the amount of

statutory dues payable by the corporate debtor to

the Government under CGST Act or under existing

laws, the jurisdictional Commissioner shall issue an

intimation in FORM GST DRC-25 reducing such

demand, to the taxable person or any other person as

well as the appropriate authority with whom

recovery proceedings are pending.

6. It is requested that suitable trade notices may

be issued to publicize the contents of this circular.

7. Difficulty, if any, in the implementation of the

above instructions may please be brought to the

notice of the Board. Hindi version would follow.

(Sanjay Mangal), Principal Commissioner (GST).

————

No. CCT/26-4/2022-23/F/3305

Subject:

Prescribing manner of filing an

application for refund by unregistered

persons-reg.

Ref.: Circular No. 188/20/2022-GST dated 27th

December, 2022 issued under Central Goods

and Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry

of Finance, GOI, New Delhi.

Circular

(No. 19/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation of

the Goa GST Act, 2017. Copy of the referred CBIC

Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES II No. 44

(EXTRAORDINARY No. 2)

7TH FEBRUARY, 2023

2820

Circular No. 188/20/2022-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 27th December, 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: Prescribing manner of filing an application

for refund by unregistered persons-reg.

Instances have been brought to the notice where

the unregistered buyers, who had entered into an

agreement/contract with a builder for supply of

services of construction of flats/building, etc. and

had paid the amount towards consideration for such

service, either fully or partially, along with applicable

tax, had to get the said contract/agreement cancelled

subsequently due to non-completion or delay in

construction activity in time or any other reasons. In

a number of such cases, the period for issuance of

credit note on account of such cancellation of service

under the provisions of Section 34 of the Central

Goods and Service Tax Act, 2017 (hereinafter referred

to as ‘CGST Act’) may already have got expired by

that time. In such cases, the supplier may refund the

amount to the buyer, after deducting the amount of

tax collected by him from the buyer.

1.2

Similar situation may arise in cases of long-

-term insurance policies where premium for the

entire period of term of policy is paid upfront along

with applicable GST and the policy is

subsequently required to be terminated

prematurely due to some reasons. In some cases,

the time period for issuing credit note under the

provisions of Section 34 of the CGST Act may have

already expired and therefore, the insurance

companies may refund only the proportionate

premium net off GST.

1.3

Representations have been received

requesting for providing a facility to such

unregistered buyers/recipients for claiming

refund of amount of tax borne by them in the event

of cancellation of the contract/agreement for

supply of services of construction of flat/building

or on termination of long-term insurance policy.

2. It would be pertinent to mention that sub-

-section (1) of Section 54 of the CGST Act already

provides that any person can claim refund of any tax

and interest, if any, paid on such tax or any other

amount paid by him, by making an application before

the expiry of two years from the relevant date in such

form and manner as may be prescribed. Further, in

terms of Clause (e) of sub-section (8) of Section 54 of

the CGST Act, in cases where the unregistered

person has borne the incidence of tax and not passed

on the same to any other person, the said refund shall

be paid to him instead of being credited to Consumer

Welfare Fund (CWF).

2.1

In order to enable such unregistered

person to file application for refund under sub-

-section (1) of Section 54, in cases where the

contract/agreement for supply of services of

construction of flat/building has been cancelled

or where long-term insurance policy has been

terminated, a new functionality has been made

available on the common portal which allows

unregistered persons to take a temporary

registration and apply for refund under the

category ‘Refund for Unregistered person’. Further,

sub-rule (2) of Rule 89 of Central Goods and Service

Tax Rules, 2017 (hereinafter referred to as ‘CGST

Rules’) has been amended and statement 8 has

been inserted in FORM GST RFD-01 vide

Notification No. 26/2022-Central Tax dated

26-12-2022 to provide for the documents required

to be furnished along with the application of

refund by the unregistered persons and the

statement to be uploaded along with the said

refund application.

3. In order to ensure uniformity in the

implementation of the above provisions of the law

across field formations, the Board, in exercise of its

powers conferred by Section 168 (1) of the CGST Act,

hereby clarifies the following:

Filing of refund application:

4.1. The unregistered person, who wants to file

an application for refund under sub-section (1) of

Section 54 of CGST Act, in cases where the

contract/agreement for supply of services of

construction of flat/building has been cancelled

or where long-term insurance policy has been

terminated, shall obtain a temporary registration

on the common portal using his Permanent

Account Number (PAN). While doing so, the

unregistered person shall select the same State/

/UT where his/her supplier, in respect of whose

invoice refund is to be claimed, is registered.

Thereafter, the unregistered person would be

required to undergo Aadhaar authentication in

terms of provisions of Rule 10B of the CGST Rules.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES II No. 44

(EXTRAORDINARY No. 2)

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Further, the unregistered person would be

required to enter his bank account details in

which he seeks to obtain the refund of the

amount claimed. The applicant shall provide

the details of the bank account which is in his

name and has been obtained on his PAN.

4.2 The application for refund shall be filed in

FORM GST RFD-01 on the common portal

under the category ‘Refund for unregistered

person’. The applicant shall upload statement 8

(in pdf format) and all the requisite documents as

per the provisions of sub-rule (2) of Rule 89 of the

CGST Rules. The refund amount claimed shall not

exceed the total amount of tax declared on the

invoices inrespect of which refund is being

claimed. Further, the applicant shall also upload

the certificate issued by the supplier in terms of

Clause (kb) of sub-rule (2) of Rule 89 of the CGST

Rules along with the refund application. The

applicant shall also upload any other document(s)

to support his claim that he has paid and borne

the incidence of tax and that the said amount is

refundable to him.

4.3 Separate applications for refund have to be

filed in respect of invoices issued by different

suppliers. Further, where the suppliers, in

respect of whose invoices refund is to be

claimed, are registered in different States/UTs, the

applicant shall obtain temporary registration in

the each of the concerned States/UTs where the

said supplier are registered.

4.4 Where the time period for issuance of

creditnote under Section 34 of the CGST Act has

not expired at the time of cancellation/termination

of agreement/contract for supply of services, the

concerned suppliers can issue credit note to the

unregistered person. In such cases, the supplier

would be in a position to also pay back the amount

of tax collected by him from the unregistered

person and therefore, there will be no need for

filing refund claim by the unregistered persons in

these cases. Accordingly, the refund claim can be

filed by the unregistered persons only in those

cases where at the time of cancellation/

/termination of agreement/contract for supply of

services, the time period for issuance of credit note

under Section 34 of the CGST Act has already

expired.

5. Relevant date for filing of refund:

As per sub-section (1) of Section 54 of the CGST

Act, time period of two years from the relevant date

has been specified for filing an application of refund.

Further, the relevant date in respect of cases of refund

by a person other than supplier is the date of receipt

of goods or services or both by such person in terms

of provisions of Clause (g) in Explanation (2) under

Section 54 of the CGST Act. However, in respect of

cases where the supplier and the unregistered person

(recipient) have entered into a long-term contract/

/agreement for the supply, with the provision of

making payment in advance or in instalments, for

example-construction of flats or long-term insurance

policies, if the contract is cancelled/terminated

before completion of service for any reason, there may

be no date of receipt of service, to the extent supply

has not been made/rendered. Therefore, in such type

of cases, it has been decided that for the purpose of

determining relevant date in terms of Clause (g) of

Explanation (2) under Section 54 of the CGST Act,

date of issuance of letter of cancellation of the

contract/agreement for supply by the supplier will

be considered as the date of receipt of the services

by the applicant.

6. Minimum refund amount:

Sub-section (14) of Section 54 of the CGST Act

provides that no refund under sub-section (5) or sub-

-section (6) shall be paid to an applicant, if amount is

less than one thousand rupees. Therefore, no refund

shall be claimed if the amount is less than one

thousand rupees.

7. The proper officer shall process the refund

claim filed by the unregistered person in a manner

similar to other RFD-01 claims. The proper officer shall

scrutinize the application with respect to

completeness and eligibility of the refund claim to

his satisfaction and issue the refund sanction order

in FORM GST RFD-06 accordingly. The proper officer

shall also upload a detailed speaking order along with

the refund sanction order in FORM GST RFD-06.

7.1 In cases where the amount paid back by

the supplier to the unregistered person on

cancellation/termination of agreement/contract

for supply of services is less than amount paid by

such unregistered person to the supplier, only the

proportionate amount of tax involved in such

amount paid back shall be refunded to the

unregistered person.

8. It is requested that suitable trade notices may

be issued to publicize the contents of this Circular.

9. Difficulty, if any, in the implementation of this

Circular may be brought to the notice of the Board.

Hindi version will follow.

(Sanjay Mangal), Principal Commissioner (GST).

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES II No. 44

(EXTRAORDINARY No. 2)

7TH FEBRUARY, 2023

2822

No. CCT/26-4/2022-23/F/3306

Subject:

Clarification regarding GST rates and

classification of certain goods based

on the recommendations of the GST

Council in its 48th meeting held on

17th December, 2022-reg.

Ref.: Circular No. 189/01/2023-GST dated 13th

January, 2023 issued under Central Goods and

Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry of

Finance, GOI, New Delhi.

Circular

(No. 20/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation of

the Goa GST Act, 2017. Copy of the referred CBIC

Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

————

Circular No. 189/01/2023-GST

F. No. CBIC-190354/316/2022-TRU Section-CBEC

Government of India

Ministry of Finance

Department of Revenue

(Tax Research Unit)

North Block, New Delhi, Dated 13th January, 2023.

To,

The Principal Chief Commissioners/Principal

Directors General,

The Chief Commissioners/Directors General,

The Principal Commissioners/Commisioners of

Central Excise & Central Tax.

Madam/Sir,

Subject: Clarification regarding GST rates and

classification of certain goods based on the

recommendations of the GST Council in its 48th

meeting held on 17th December, 2022-reg.

Based on the recommendations of the GST Council

in its 48th meeting held on 17th December, 2022,

clarifications, with reference to GST levy, related to

the following are being issued through this circular:

2. Rab-classifiable under Tariff heading 1702:

2.1 Representation has been received seeking

clarification regarding the classification of “Rab’’.

It has been stated that under the U.P. Rab

(Movement Control Order), 1967, “Rab” means

‘massecuite prepared by concentrating sugarcane

juice on open pan furnaces, and includes Rab

Galawat and Rab Salawat, but does not include

khandsari molasses or lauta gur.’ Although, a

product of sugarcane, Rab exists in semi-solid/

/liquid form, and is thus not covered under

heading 1701. The Hon’ble Supreme Court in its

order in Krishi Utpadan Mandi Samiti vs. M/s.

Shankar Industries and others [1993 SCR (1) 1037]

has distinguished Rab from molasses. Thus, Rab

being distinguishable from molasses is not

classifiable under heading 1703.

2.2 Accordingly, it is hereby clarified that Rab

is appropriately classifiable under heading 1702

attracting GST rate of 18% (S. No. 11 in Schedule III

of notification No. 1/2017-Central Tax (Rate), dated

the 28th June, 2017).

3. Applicability of GST on by-products of milling

of Dal/Pulses such as Chilka, Khanda and Churi/

/Chuni:

3.1 Representations have been received

seeking clarification regarding the applicable GST

rate on by-products of milling of Dal/Pulses such

as Chilka, Khanda and Churi/Chuni.

3.2 The GST council in its 48th meeting has

recommended to fully exempt the supply of

subject goods, irrespective of its end use. Hence,

with effect from the 1st January, 2023, the said

goods shall be exempt under GST vide S. No. 102C

of schedule of Notification No. 2/2017-Central Tax

(Rate) dated 28-06-2017.

3.3 Further, as per recommendation of the GST

Council, in view of genuine doubts regarding the

applicability of GST on subject goods, matters that

arose during the intervening period are hereby

regularized on “as is” basis from the date of

issuance of Circular No. 179/11/2022-GST dated

the 3rd August, 2022, till the date of coming into

force of the above-said S. No. 102C and the entries

relating thereto. This is in addition to the matter

regularized on as is basis vide para 8.6 of the said

Circular.

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4. Clarification regarding ‘Carbonated Beverages

of Fruit Drink’ or ‘Carbonated Beverages with Fruit

Juice’:

4.1 Representations have been received

seeking clarification regarding the applicable six-

-digit HS code for ‘Carbonated Beverages of Fruit

Drink’ or ‘Carbonated Beverages with Fruit Juice’.

4.2 On the basis of the recommendation of the

GST council in its 45th meeting, a specific entry

has been created in notification No. 1/2017-

-Central Tax (Rate), dated the 28th June, 2017 and

Notification No. 1/2017-Compensation Cess (Rate),

dated the 28th June, 2017, vide S. No. 12B in

Schedule IV and S. No. 4B in Schedule respectively,

with effect from the 1st October, 2021, for goods

with description ‘Carbonated Beverages of Fruit

Drink’ or ‘Carbonated Beverages with Fruit Juice’.

4.3 It is hereby clarified that the applicable six-

-digit HS code for the aforesaid goods with

description ‘Carbonated Beverages of Fruit Drink’

or ‘Carbonated Beverages with Fruit Juice’ is HS

2202 99. The said goods attract GST at the rate of

28% and Compensation Cess at the rate of 12%.

The S. Nos. 12B and 4B mentioned in Para 4.2 cover

all such carbonated beverages that contain

carbon dioxide, irrespective of whether the carbon

dioxide is added as a preservative, additive, etc.

4.4 In order to bring absolute clarity, an

exclusion for the above-said goods has been

provided in the entry at S. No. 48 of Schedule-II of

Notification No. 1/2017-Central Tax (Rate) dated

28th June, 2017, vide Notification No. 12/2022-

Central Tax (Rate) dated the 30th December, 2022.

5. Applicability of GST on snack pellets

manufactured through extrusion process (such as

‘fryums’):

5.1 Representations have been received

seeking clarification regarding classification and

applicable GST rate on snack pellets

manufactured through the process of extrusion

(such as ‘fryums’).

5.2 It is hereby clarified that the snack pellets

(such as ‘fryums’), which are manufactured

through the process of extrusion, are appropriately

classifiable under tariff item 1905 90 30, which

covers goods with description ‘Extruded or

expanded products, savoury or salted’, and

thereby attract GST at the rate of 18% vide S. No.

16 of Schedule-III of Notification No. 1/2017-

-Central Tax (Rate) dated the 28th June, 2017.

6. Applicability of Compensation cess on Sports

Utility Vehicles (SUVs):

6.1 Representations have been received

seeking clarification about the specifications of

motor vehicles, which attract compensation cess

at the rate of 22% vide entry at S. No. 52B of

Notification No. 01/2017 Compensation Cess (Rate)

dated 28th June, 2017.

6.2

In this regard, it is clarified that

Compensation Cess at the rate of 22% is applicable

on ‘Motor vehicles, falling under heading 8703,

which satisfy all four specifications, namely:- these

are popularly known as SUVs; the engine capacity

exceeds 1,500 cc; the length exceeds 4,000 mm.

and the ground clearance is 170 mm. and above.

6.3

This clarification is confined to and is

applicable only to Sports Utility Vehicles (SUVs).

7. Applicability of IGST rate on goods specified

under notification No. 3/2017-Integrated Tax (Rate):

7.1 Representations have been received

expressing doubts regarding the applicable IGST

rate on goods specified in the list annexed to

notification No. 3/2017-Integrated Tax (Rate)

dated the 28th June, 2017.

7.2

On the basis of the recommendation of the

GST Council in its 47th Meeting, held in June,

2022, the IGST rate has been increased from 5% to

12% on goods, falling under any Chapter, specified

in the list annexed to the notification No. 3/2017-

-Integrated Tax (Rate) dated the 28th June, 2017,

when imported for the specified purpose (like

Petroleum operations/Coal bed methane

operations) and subject to the relevant conditions

prescribed in the said notification. However, some

goods specified in the list annexed to notification

No. 3/2017-Integrated Tax (Rate) dated the 28th

June, 2017, are also eligible for a lower schedule

rate of 5% by virtue of their entry in Schedule I of

notification No. 1/2017-Integrated Tax (Rate) dated

the 28th June, 2017.

7.3

Accordingly, it is hereby clarified that on

goods specified in the list annexed to the

notification No. 3/2017-Integrated Tax (Rate)

dated the 28th June, 2017, which are eligible for

IGST rate of 12% under the said notification and

are also eligible for the benefit of lower rate under

Schedule I of the notification No. 1/2017-Integrated

Tax (Rate) dated the 28th June, 2017 or any other

IGST rate notification, the importer can claim the

benefit of the lower rate.

8. Difficulty, if any, in the implementation of this

circular may be brought to the notice of the Board.

(Dibyalok), Technical Officer, TRU-I.

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No. CCT/26-4/2022-23/F/3307

Subject: Clarifications regarding applicability of

GST on certain services–reg.

Ref.:

Circular No. 190/02/2023-GST dated 13th

January, 2023 issued under Central Goods

and Services Tax Act, 2017 by the GST Policy

Wing, Central Board of Indirect Taxes and

Customs, Department of Revenue, Ministry

of Finance, GOI, New Delhi.

Circular

(No. 21/2022-23-GST)

Central Board of Indirect Taxes and Customs

(CBIC) has issued the above referred circular. For

the uniformity, it has been decided that the said

Circular issued by the CBIC is being made

applicable, mutatis mutandis, in implementation of

the Goa GST Act, 2017. Copy of the referred CBIC

Circular is attached herewith.

This Trade Circular is clarificatory in nature.

Difficulty, if any, in implementation of this Circular

may please be brought to the notice of the

undersigned.

S. S. Gill, IAS, Commissioner of State Taxes.

Panaji, 7th February, 2023.

————

Circular No. 190/02/2023-GST

F. No. CBIC-190354/316/2022–TRU Section-CBEC

Government of India

Ministry of Finance

Department of Revenue

(Tax Research Unit)

North Block New Delhi

Dated the 13th January, 2023.

To,

The Principal Chief Commissioners/Chief

Commissioners/Principal Commissioners/Commissioner

of Central Tax (All)/The Principal Director Generals/

/Director Generals (All).

Subject: Clarifications regarding applicability of

GST on certain services–reg.

Madam/Sir,

Representations have been received seeking

clarifications on the following issues:

1. Applicability of GST on accommodation

services supplied by Air Force Mess to its

personnel;

2. Applicability of GST on incentive paid by

Ministry of Electronics and Information

Technology (MeitY) to acquiring banks under

Incentive scheme for promotion of RuPay

Debit Cards and low value BHIM-UPI

transactions.

The above issues have been examined by GST

Council in the 48th meeting held on 17th December,

2022. The issue-wise clarifications are given below:

2. Applicability of GST on accommodation

services supplied by Air Force Mess to its personnel:

2.1 Reference has been received requesting

for clarification on whether GST is payable on

accommodation services supplied by Air Force

Mess to its personnel.

2.2 All services supplied by Central

Government, State Government, Union Territory

or local authority to any person other than

business entities (barring a few specified

services such as services of postal department,

transportation of goods and passengers etc.) are

exempt from GST vide Sl. No. 6 of notification

No. 12/2017-Central Tax (Rate) dated 28-06-2017.

Therefore, as recommended by the GST Council,

it is hereby clarified that accommodation

services provided by Air Force Mess and other

similar messes, such as, Army mess, Navy mess,

Paramilitary and Police forces mess to their

personnel or any person other than a business

entity are covered by Sl. No. 6 of Notification

No. 12/2017-Central Tax (Rate) dated 28-06-2017

provided the services supplied by such messes

qualify to be considered as services supplied by

Central Government, State Government, Union

Territory or local authority.

3. Applicability of GST on incentive paid by

MeitY to acquiring banks under Incentive scheme

for promotion of RuPay Debit Cards and low value

BHIM-UPI transactions:

3.1 Representations have been received

requesting for clarification on whether GST is

applicable on the incentive paid by MeitY to

acquiring banks under the Incentive scheme for

promotion of RuPay Debit Cards and low value

BHIM-UPI transactions.

3.2 Under the Incentive scheme for promotion

of RuPay Debit Cards and low value BHIM-UPI

transactions, the Government pays the acquiring

banks an incentive as a percentage of value of

RuPay Debit card transactions and low value

BHIM-UPI transactions up to Rs. 2000/-.

3.3 The Payments and Settlements Systems

Act, 2007 prohibits banks and system providers

from charging any amount from a person making

or receiving a payment through RuPay Debit

cards or BHIM-UPI.

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3.4 The service supplied by the acquiring banks

in the digital payment system in case of transactions

through RuPay/BHlM UPI is the same as the service

that they provide in case of transactions through

any other card or mode of digital payment. The

only difference is that the consideration for such

services, instead of being paid by the merchant or

the user of the card, is paid by the Central

Government in the form of incentive. However, it is

not a consideration paid by the Central Government

for any service supplied by the acquiring bank to

the Central Government. The incentive is in the

nature of a subsidy directly linked to the price of

the service and the same does not form part of the

taxable value of the transaction in view of the

provisions of Section 2(31) and Section 15 of the

CGST Act, 2017.

3.5 As recommended by the Council, it is hereby

clarified that incentives paid by MeitY to acquiring

banks under the Incentive scheme for promotion

of RuPay Debit Cards and low value BHIM-UPI

transactions are in the nature of subsidy and thus

not taxable.

4. Difficulties, if any, in implementation of this

circular may be brought to the notice of the Board.

(Anna Sosa Thomas), Technical Officer, TRU II.

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