Circular No. 207/1/2024-GST I Date: 26-06-2024
Subject: Reduction of Government Litigation - Fixing Monetary Limits for
Filing Appeals
Key Points:
•
Objective: To minimize government litigation by setting monetary limits for appeals in revenue matters, optimizing judicial
resources
•
Thresholds: Specifies
monetary limits below which appeals should not be filed: Rs. 20 lakhs for GSTAT, Rs. 1 crore for High Court, and Rs. 2 crores for Supreme Court.
•
Exclusions: Cases involving
constitutional
issues, significant precedents, or adverse comments against the government are excluded from these limits.
•
Implementation: Encourages prudent litigation practices and ensures faster
resolution of cases, providing certainty to taxpayers regarding tax assessments.
Circular No. 208/2/2024-GST I Date: 26-06-2024
Subject: Clarifications
on Special Procedure for
Manufacturers of Specified
Commodities Key Points:
•
Notification Reference: Pertains to Notification No. 04/2024-Central Tax dated 05.01.2024, which revised the special
procedure for specified
commodities.
•
Old
Machines: Allows manufacturers to declare the year of purchase if the make and model numbers of old or second-hand machines are unavailable.
•
Electricity Consumption: Requires a Chartered Engineer's certification for electricity
consumption ratings when specifications are
not available.
•
Manual Operations: Clarifies
that the special
procedure does not apply to manual packing operations,
including post-harvest packing of
tobacco leaves.
Circular No. 209/3/2024-GST I Date: 26-06-2024
Subject: Provisions of Clause (ca) of Section l 0( l) of
IGST Act Key Points:
•
Amendment: Introduces clause (ca) to Section l
0( l) of the IGST Act, effective
from Ol . l 0.2023, addressing the place of supply
for goods to unregistered persons.
•
Place of Supply: Specifies
that the place
of supply
will be the delivery address if it differs
from the billing address
in the invoice, ensuring clarity in e-commerce transactions.
•
E-commerce Context: Clarifies
that for orders placed online,
the delivery address determines the place of supply, simplifying
tax compliance for suppliers.
Circular No. 210/4/2024-GST I Date: 26-06-2024
Subject: Valuation
of Supply of Import of Services by Related Persons
Key Points:
•
Import of Services: Addresses the valuation for importing services between related persons, particularly where no consideration is involved.
•
No Consideration: Confirms that no GST is applicable when services are provided without consideration,
provided the
recipient can claim full ITC.
•
Self-Invoice: Requires registered persons
in India to issue a self-invoice for services received from related foreign
entities and pay tax on
a reverse charge
basis, ensuring proper tax compliance.
Circular No. 211/5/2024-GST I Date: 26-06-2024
Subject: Clarifications on GST
Treatment for General Insurance Companies on Salvage Key Points:
•
Salvage Ownership: Differentiates GST liability based
on the ownership of salvage after insurance claim settlement.
•
Deductibles: Explains that if the salvage remains
with the insured,
the insurance company has no GST liability on
the salvage value deducted
from the claim.
•
Full
lDV Settlements: Clarifies
that when the insurance company
pays the full lDV without
deducting salvage value,
the salvage becomes the company's property and GST is applicable on its sale.
Circular No. 212/6/2024-GST I Date: 26-06-2024
Subject: Clarification on GST Liability and ITC Availability in Cases Involving Warranty/Extended Warranty
Key Points:
•
Warranty Replacements: Provides detailed guidance on GST treatment
for parts replaced under warranty,
ensuring clarity for manufacturers and
service providers.
•
Extended Warranties: Addresses the GST implications for extended warranties and outlines
the procedures for claiming ITC reversals,
promoting uniformity in tax treatment.
Circular No. 213/7/2024-GST I Date: 26-06-2024
Subject: Taxability of ESOP/ESPP/RSU Provided
by a Company to Employees through Overseas
Holding Company
Key Points:
•
Reimbursement: Clarifies that the reimbursement of costs for shares issued
by foreign holding companies
to employees of Indian subsidiaries is not subject to GST.
•
Additional Charges: Specifies
that GST is applicable if the foreign holding company charges
any additional fee, markup, or commission for issuing shares, ensuring proper tax compliance.
Circular No. 214/8/2024-GST I Date: 26-06-2024
Subject: Requirement of Reversal
of ITC in Respect of Premium for Life Insurance Policies Key Points:
•
Investment
Component: Clarifies that the portion of life insurance
premium allocated for
investment or
savings is not subject
to ITC reversal, providing relief to insurers.
•
Taxable Value:
Ensures that only the
portion of
the premium included in the taxable value requires ITC reversal, aligning with the provisions of Rule 32(4) of CGST Rules.
Circular No. 215/9/2024-GST I Date: 26-06-2024
Subject: Clarification
on GST Applicability on Commission and Fees
Charged by
Banks
Key Points:
•
Banking Services:
Provides comprehensive guidance on the applicability of GST for various commissions and fees charged by
banks, ensuring consistent tax treatment.
•
Uniform Implementation: Aims to standardize the application of GST
provisions across different field
formations, reducing ambiguities for
financial institutions.
Circular No. 216/10/2024-GST I Date: 26-06-2024
Subject: Clarification on Warranty/Extended Warranty
Key Points:
•
GST on Warranty:
Elaborates
on the GST implications for parts
replaced under warranty, including scenariosinvolving distributors and manufacturers.
•
ITC Reversal: Clarifies the procedures for ITC reversal related to warranty
replacements and
extended warranties, ensuring compliance with tax regulations.
Circular No. 217/11/2024-GST I Date: 26-06-2024
Subject: ITC by Insurance Companies
on Repair Expenses in Reimbursement Mode
Key Points:
•
ITC
Claims: Clarifies the conditions
under which insurance companies
can claim ITC on repair expenses, distinguishing
between cashless and reimbursement modes.
•
Cashless and Reimbursement: Provides guidelines for ITC eligibility based on the mode of repair expense
reimbursement, ensuring
proper tax treatment.
Circular No. 218/12/2024-GST I Date: 26-06-2024
Subject: Taxability of Loan Transactions Between Related Persons
Key Points:
•
Loan Transactions: Clarifies that loans provided by an overseas affiliate
to its Indian affiliate are not
considered a supply of service if the consideration
is only interest or discount.
•
No GST: Confirms that such transactions
are not subject
to GST,
providing clarity on the tax treatment of intra-group loans.
Circular No. 219/13/2024-GST I Date: 26-06-2024
Subject: ITC on Ducts
and Manholes Used in OFCs Network
Key Points:
•
Plant and
Machinery: Confirms
that ITC is
available for ducts and manholes used
in optical fibre cable networks, classifying them as plant and machinery, which is eligible for credit.
Circular No. 220/14/2024-GST I Date: 26-06-2024
Subject: Time of Supply for Spectrum
Allocation Services
Key Points:
•
Deferred Payments: Clarifies the time of supply
for spectrum allocation services where
payments are made in instillments, ensuring proper tax compliance.
Circular No. 221/15/2024-GST I Date: 26-06-2024
Subject:
Time of Supply for
Road Construction
Services under HAM Model
Key
Points:
•
Hybrid Annuity Model:
Provides clarity
on the time of supply for road construction and maintenance services under
the HAM model, ensuring
proper tax treatment.
Circular No. 222/16/2024-GST I Date: 26-06-2024
Subject: Time of Supply for Spectrum
Usage Services
Key Points:
•
Deferred
Payment Options: Clarifies the time of supply for spectrum usage services where payments are
deferred, ensuring
consistency in tax application.
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