Reference is invited to Circular No. 195/07/2023-GST dated 17.07.2023 (herein after referred to as “the said circular”) clarifying certain issues regarding GST liability and availability of input tax credit (ITC) in respect of warranty replacement of parts and repair services during warranty period. Representations have been received from trade and industry requesting for some further clarifications in related matters.

Various representations have been received regarding the procedures to be followed for sending goods for job work and the related compliance requirements for the principal and the job worker. In view of the difficulties being faced by the taxpayers and 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 Central Goods and Services Tax Act, 2017, (hereinafter referred to as  the “CGST Act”) hereby clarifies the various issues raised as below:

Understand GST Circular No. 173/05/2022 on refund of accumulated ITC under the inverted duty structure where outward supplies are made under concessional GST notifications.

Understand Circular 228/22/2024-GST covering Railways, RERA, reinsurance, BHIM-UPI incentives, accommodation services, and GST exemptions.

Whether GST is payable on the service, provided by a private Industrial Training Institute for conduct of examination against consideration in the form of entrance fee and also on the services relating to admission to or conduct of examination.

Various representations have been received seeking clarification on some of the issues relating to GST refunds. The issues have been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board,

Mechanism for discharge of tax liability on trading of Priority Sector Lending Certificate (PSLC) for the period 1.7.2017 to 27.5.2018.

Learn Circular No. 196/08/2023-GST on whether a parent company’s shareholding in its subsidiary attracts GST as a supply of services.

The Board vide Circulars No. 36/10/2018-GST dated 13th March, 2018 and No. 43/17/2018- GST dated 13th April, 2018 has specified the detailed procedure for filing and processing of refund applications by UIN entities (Embassy/Mission/Consulate / United Nations Organizations/Specified International Organizations). Various representations have been received on certain issues pertaining to the processing of such refund claims.

Attention is invited to notification No. 02/2019-Central Tax (Rate) dated 07.03.2019 (hereinafter referred to as “the said notification”) which prescribes rate of central tax of 3% on first supplies of goods or services or both up to an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person whose aggregate annual turnover in the preceding financial year was fifty lakh rupees or below.