CBIC issued Notifications and Circulars to give effect to recommendation of the 50th GST Council Meeting. It includes extensions in amnesty schemes for GSTR-10 non-filers, GSTR-9 non-filers, deemed withdrawal of assessment orders, and revocation of registration. Also circulars provide clarification on topics such as Input Tax Credit (ITC) for common input services, holding of shares by parent companies, e-invoicing for supplies to Government Departments, GST on Replacement Parts/Repair Services under Warranty, TCS liability for multiple E-commerce Operators, ITC differences in FORM GSTR-3B and FORM GSTR-2A, and interest calculation under rule 88B.
Please find tabular summary for notification and circulars as below:
| Notification No | Particular |
| 26/2023-Central Tax | The amnesty scheme for GSTR-10 non-filers has also been extended to 31st August 2023. |
| 25/2023-Central Tax | The amnesty for GSTR-9 non-filers has been extended until the 31st of August, 2023. |
| 24/2023-Central Tax | The amnesty scheme for deemed withdrawal of assessment orders issued under Section 62 is extended to 31st August 2023. |
| 23/2023-Central Tax | The application period for revocation of cancellation of registration is extended to 31st August 2023. |
| 22/2023-Central Tax | The government extended the amnesty scheme for GSTR-4 non-filers. The new deadline is now the 31st of August, 2023. |
| 21/2023-Central Tax | The due date for the submission of FORM GSTR-7 for the months of April, May, and June 2023 has been extended until 31st July 2023 for the registered persons in Manipur. |
| 20/2023-Central Tax | The due date for filing FORM GSTR-3B for the quarter ending June 2023 is extended till 31st July 2023 for the registered persons whose principal place of business is in the state of Manipur. |
| 19/2023-Central Tax | The due date for filing FORM GSTR-3B for April, May, June of 2022- 2023 is extended till 31st July 2023 for the registered persons whose principal place of business is in the state of Manipur. |
| 18/2023-Central Tax | The due date for filing FORM GSTR-1 for the quarter ending June 2023 is extended till 31st July 2023 for the registered persons whose principal place of business is in the state of Manipur. |
| Circular No. | Particular |
| 199/11/2023-GST | Input Tax Credit (ITC) for common input services: Head Office (HO) can issue tax invoices to branch offices (BOs) for common input services procured from a third party. BOs can avail ITC for such services. HO has the option to distribute ITC through the Input Service Distributor (ISD) mechanism or issue tax invoices directly to BOs. Internally generated services: The value of supply of services from HO to BOs should be determined as per the open market value. If full input tax credit is available to the BO, the value declared in the invoice by HO is deemed to be the open market value. The cost of specific components, like employee salaries, does not have to be included in the value if full input tax credit is available. Cost of salary in the taxable value: The cost of HO employee salaries involved in providing internally generated services to BOs is not mandatory to include in the taxable value, even if full input tax credit is not available |
| 198/10/2023-GST | Applicability of e-invoicing for supplies to Government Departments: Government Departments or establishments/ Government agencies/ local authorities/ PSUs registered solely for tax deduction at source are considered registered persons. Registered persons with turnover exceeding the e-invoicing threshold must issue e-invoices for supplies made to such Government entities. |
| 197/09/2023-GST | Refund of Accumulated Input Tax Credit based on FORM GSTR-2B: Refund of accumulated input tax credit is based on input tax credit reflected in FORM GSTR-2B. Refund is restricted to invoices reflected in FORM GSTR-2B for the relevant tax period. Amendment in Undertaking Requirement: Calculation of Adjusted Total Turnover: The value is determined as per the Explanation inserted in sub-rule (4) of rule 89. Refund for Exporters complying with Rule 96A: Exporters who voluntarily paid integrated tax but could not export goods or receive payment within the prescribed time frame are entitled to a refund. Refund of unutilized input tax credit is allowed upon actual export of goods or realization of payment for export of services. Refund of integrated tax paid earlier is permissible for goods not exported or payment not realized, but interest paid is not refundable. |
| 196/08/2023-GST | Holding shares by a parent company of a subsidiary company is not considered a supply of service under GST. Securities, including shares, are neither goods nor services under the definitions provided in the CGST Act. |
| 195/07/2023-GST | GST on Replacement Parts/Repair Services under Warranty: No GST payable if no separate consideration is charged during warranty. GST applicable if additional consideration is charged. Reversal of Input Tax Credit: No reversal of input tax credit required for replacement parts/repair services under warranty. Distributor Providing Replacement Parts/Repair Services under Warranty: No GST payable if no consideration is charged. GST applicable if additional consideration is charged. Supply between Distributor and Manufacturer: GST payable by distributor for parts supplied to the manufacturer: No reversal of input tax credit required for the manufacturer. Distributor Providing Repair Services: GST payable by distributor if charged to the manufacturer. GST on Extended Warranty: GST payable if extended warranty agreed at the time of original supply. Separate contract GST payable for extended warranty after original supply. |
| 194/06/2023-GST | In the context of Open Network for Digital Commerce (ONDC) or similar arrangements, where there are multiple E-commerce Operators (ECOs) in a single transaction, clarification is sought regarding TCS liability under Section 52 of the CGST Act. Clarifications are provided as follows: a. If the supplier-side ECO is not the actual supplier in the transaction, the compliances under Section 52, including TCS collection, should be done by the supplier-side ECO who releases the payment to the supplier after deducting fees/commissions. b. If the supplier-side ECO is also the supplier in the transaction, the buyer-side ECO should collect TCS while making payment to the supplier. Buyer-side ECO and supplier-side ECO have specific roles and responsibilities based on their involvement in the transaction, including TCS collection and other compliances under Section 52 of the CGST Act. |
| 193/05/2023-GST | Circular provides clarification on the difference in Input Tax Credit (ITC) availed in FORM GSTR-3B compared to FORM GSTR-2A for FY 2017-18 and 2018-19. Rule 36(4) of CGST Rules allowed additional credit up to 20%, 10%, and 5% for specified periods, subject to conditions. Circular guidelines applicable for specific periods, with maximum percentage of eligible credit based on details reported in FORM GSTR-1 or IFF. For 2017-18 & 2018-19, the guideline already provided by Circular No 183/15/2022-GST dated 27.12.22, which provide certain conditions & certain certification by the professionals (CA / CMA). ITC availed in FORM GSTR-3B in excess of that available in FORM GSTR-2A up to an amount of as per rule 36(4) from time to time (say 20%, 10% or 5%) can be only allowed subject to production of the requisite certificates. No ITC allowed from 01.01.2022 onwards unless reported by suppliers in FORM GSTR-1 or IFF and communicated in FORM GSTR-2B. |
| 192/04/2023-GST | Interest calculation under rule 88B considers the total input tax credit available in the electronic credit ledger. No interest liability if the total credit balance never falls below the wrongly availed IGST credit. Interest applies when the total credit balance falls below the wrongly availed IGST credit, based on the extent of utilization. |
Notifications and Circulars are attached herewith for your ready reference.
This Article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update etc. if any.
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Published on: July 19, 2023
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